Land Value Revision Fuels Buyer Concerns

metro india news  I hyderabad

The Telangana government’s decision to sharply increase land market values across the state has sparked widespread debate, with concerns growing that the move will place an additional financial burden on common citizens, farmers, middle-class families, and property buyers. The revised market values, which came into effect on June 5, have been increased by 25 percent to 100 percent depending on the location. While the government maintains that the revision is aimed at aligning official values with prevailing market rates, critics argue that the decision will significantly raise the cost of property transactions at a time when land and housing prices are already beyond the reach of many families. Those planning to purchase houses or plots are expected to face higher registration expenses, adding to the existing burden of rising construction costs, bank loan repayments, and soaring real estate prices.

The government has implemented the revision in slabs of 25, 50, 75 and 100 percent across different regions. Major increases have been recorded in rapidly developing areas such as Kokapet, Raidurgam, the Financial District, regions surrounding the Outer Ring Road, emerging municipalities, and locations along national highways. Market values of agricultural lands have also been revised upward in several districts. Officials say the exercise was necessary to reduce the gap between actual market transaction values and government-assessed market values. However, many citizens view the move as a direct increase in the financial burden associated with land transactions.

Although there has been no change in stamp duty or registration fee percentages, the amount payable during registration will rise because these charges are calculated based on market value. For instance, if a property previously valued at Rs.20 lakh is now assessed at Rs.30 lakh, the registration charges will automatically increase despite the fee percentage remaining unchanged. As a result, buyers may end up paying thousands or even lakhs of rupees more. The revision is expected to have mixed implications for farmers. On one hand, higher land values could improve access to bank loans and potentially influence compensation during land acquisition. On the other hand, farmers will have to bear higher registration costs during land purchases, sales, and family property transfers.

Experts believe small and marginal farmers may feel the impact more acutely. Real estate analysts say the increased registration costs could temporarily affect buying sentiment, particularly among middle-income purchasers. Some buyers may postpone investment decisions, while others argue that higher official valuations could strengthen the perceived value of key growth corridors and attract future investments. The timing of the decision has also drawn attention.

The state government is currently facing significant financial commitments arising from welfare programmes, including the six guarantees, Rythu Bharosa, Indiramma housing, free bus travel schemes, and spending on education and healthcare. In this backdrop, observers believe the revision is also intended to strengthen government revenues. According to Revenue Department estimates, the increase in market values could generate nearly Rs.1,400 crore in additional annual revenue through stamp duty and registration charges.

While the government describes the move as a necessary correction to reflect market realities, many believe that raising official land values at a time when property prices are already soaring will make the dream of owning a home even more difficult for ordinary citizens