The Andhra Pradesh government has increased the land registration values in the State. Developers fear that the recent move to hike land values will put excessive burden on the buyers’ community and will contribute to the existing slump in the real estate market, which is already said to be on the decline.
The Andhra Pradesh government has increased the registration value of land all across the State. Varying from region to region, the registration values have been increased by up to 10 percent and will produce revenue to bring some respite to the State government in the midst of a financial crunch.
The aftermath of this change will be felt more in the urban areas. Suburban areas will also be affected. In the past, the State government had increased the registration values of land twice during its five-year regime. With increased land values, the registration charges would also jump, putting monetary pressure on the buyer.
Realtors from multiple avenues have exhibited concern for the new ruling as they fear that a real estate situation already in the decline will only be worsened by the move. The region has seen a decay in real estate activity over the last three years, especially in the last three months. Core urban areas will witness the highest increase in land rates.
YV Ramana Rao, President, Confederation of Real Estate Developers Association of India (CREDAI), Vijayawada, has expressed his fear that the revised rates will discourage investor sentiment. The gap between market value and registration value of land is closing with every revision of land rates.
