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Since January 2007, this is the third time that the department of Registration and Stamps has revised the market values of land under various corporations in the State. While the registration fee of 9.5 per cent still remains the same, it is the market values which are being revised twice every year, religiously.

The next round of revision and implementation of market values, after this one, is slated to be taken up by August 2008.

“This has become a policy decision of State government to keep revising market values of areas falling under corporations. This is because of immense growth of real-estate sector in places like Visakhapatnam, Vijayawada and Hyderabad,” pointed out District Registrar for Hyderabad G.Q. Haqqani.

Needless to say, the increasing market value of urban land would have its direct impact on customers, who have to dole-out more towards registration fee, which is calculated on the basis of market values.

Several builders have also pointed out that the State Government is in no mood to reduce the stamp-fee, which could have, to some extent, off-set the additional expenditure incurred by customer.

“Ultimately, the burden would fall on customers. The registration fee remains 9.5 per cent, but this 9.5 per cent would be levied on the market value of the property. This regular enhancement, without any sops like decrease in stamp fee, would impact middle class directly,” feels President for Builders Association of India, AP chapter S. Narasimha Reddy.

Depending on the feasibility and potential of certain areas, an enhancement of 15 to 20 per cent can be expected.

“We are finalising the new market values based on the potential. In regions having good potential, a hike of up to 20 per cent is imminent,” an official said.

In January-February 2007, certain areas falling under the Secunderabad Cantonment Board witnessed 100 per cent increase in their market values.

“Earlier, revision of market values was not taken up regularly. However, one must keep in mind that there is still a lot of difference between our market values and the existing ones in the market,” officials points out. Officials informed that maximum increase of market values, up to 20 per cent, would be in top cities in the State including Hyderabad, Visakhapatnam and Vijayawada. “The only way out for the middle class is reduction of the stamp-fee from the existing seven per cent to four or five per cent. This would boost chances of purchasing a dream house. However, stamp fee reduction is highly unlikely,” felt Mr. Reddy.

At present, the break up for 9.5 per cent registration fee includes seven per cent towards stamp duty, two per cent towards Transfer Duty and 0.5 per cent towards Registration Fee in urban areas.

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