Land Rates | The increase in land prices has had a huge impact on the real estate sector, which is like a palm falling on a barking fox. Since the new prices of land have come into effect from the 5th of this month, the registrations are seeing a decline.
Land Rates | Hyderabad, June 14 (Namaste Telangana): The increase in land prices has had a huge impact on the real estate sector, which is barely like a palm falling on a barking fox. Since the new prices of land have come into effect from the 5th of this month, the registrations are seeing a decline. People are not interested in buying land. As a result, the number of non-agricultural land registrations has drastically reduced. A 37% drop in registrations within the week reflects the impact of the price hike.
In the first week of this month, 27,985 documents were registered and the government got an income of Rs.252 crore. The number of registrations dropped drastically in the second week. It is noteworthy that only 17,663 documents were registered from 8th to 14th of this month. As a result, only Rs. 164 crores of revenue has accrued to the government. This means that the number of registrations has decreased drastically with the rise in land prices.
It is noteworthy that there was a decrease of 10,322 documents in the second week compared to the first week of May. The decrease in the number of registrations inevitably affected the revenue of the registrations. It is noteworthy that the income of Rs.88 crores fell within a week. Criticisms are pouring in that the government’s ill-advised decision to increase land prices has pushed the real estate sector into further crisis.
Compared to last month, there is a decrease
As the government had already announced that the land prices would be increased, there were claims that some people had done the registrations before the deadline, so that the number of registrations was high in the first week of May and then less. However, if we look at the details disclosed by the Stamps and Registration Department, this argument also falls apart.
Registrations did not increase significantly in the first week of this month as compared to the first week of May. In the first week of May, 22,068 documents were registered and the government got a revenue of Rs.234 crore. In the first week of this month, 27,985 documents were registered and the revenue was Rs.252 crores. This means that 5,917 additional documents were registered in the first week of this month as compared to the first week of last month, and the government got an additional income of only Rs.18 crores.
Compared to the registrations in the second week of May, it is noteworthy that this month is less. In the second week of May, 21,387 documents were registered and the revenue was Rs.279 crore. In the second week of this month, 17,663 documents were registered and the income was only Rs.164 crores. This means that in the second week of this month, 3,724 less documents were registered and the income decreased by Rs. 115 crores.
Despite rising prices, the income is poor
As the registrations decrease, the effect is inevitably on the revenue of the government. Even if the land prices are increased, the income is not increasing. As compared to before the increase in land prices, the income has decreased drastically since then. In the first week of this month, the government received Rs. 252 crores and in the second week only Rs. 164 crores. This means that within a week, the income of registrations has decreased by Rs.88 crores. In comparison to the first two weeks of last month, the income received by the government through registrations has also fallen drastically in the two weeks of this month. In the first two weeks of this month, the revenue was Rs.416 crores, while in the first two weeks of May, the revenue was Rs.513 crores. It is noteworthy that the income has decreased by 97 crores.
Hugely increased prices.. People who are not interested
It is known that the Congress government has recently increased the land registration values. The government has announced an increase of 25% to 100% on the current prices. In addition to the municipalities, ORR has increased beyond that. Although the government says that it has increased only up to 100%, there are opinions that the increase is more than 300%. It has increased the prices of land along the main road and open plots in some prime areas. Apart from this, the prices of the apartment flats have also increased drastically. As a result, the registration costs for those who have purchased plots and flats have increased enormously.
Compared to the past, it is known that those who have taken open plots have increased by at least Rs.2 lakhs, and those who have taken apartment flats have increased by a huge amount. Many real estate agents say that people are thinking of staying away from buying land and houses because they cannot afford these expenses. It is expected that only the agreements made before the increase in land prices are being registered now, and if these are completed, the situation will be even worse.
