Hyderabad: Telangana Real Estate Developers Association (TREDA) and The Confederation of Real Estate Developers’ Associations of India (CREDAI) wrote to the Government of Telangana requesting the deferral of the plan to revise the market value of properties in the state.
The associations asked for a proper study to assess the impact of the recent increases in duties/Fees/rates/costs/charges, changes in the economy, and the real estate market. They also wanted the study to include the ‘likely’ burden of the union budget 2022 on the affordability of real estate in Telangana.
These are the following grounds on which the associations want the government to not act on a revision:
- Phase 3 of COVID-19 in the form of Omicron and other variants is on rampage with over 3 lakh daily cases being reported and people are afraid of visiting public places including registration offices.
- There are more than three lakh properties that have been released recently from the prohibitory list and many more are yet to be released. Many such properties are yet to be released from the CARD system and vice Versa. Lakhs of transactions are pending registration on this account.
- The industry and the government are yet to work out a mechanism to control the menace of pre-sales, UDS sales and hundred percent payment sales which are badly affecting the market sentiment and the prices of real estate.
- The rates of building materials including cement and steel have gone up significantly despite COVID.
- It has only been seven months since the market values of properties were increased by 30% to more than 100%.
- Since the last revision of market values, the government has increased the stamp duty by 37.5%, NALA charges by 50 to 67% and the local bodies/ gram panchayat charges on development permits way beyond the government prescribed rates (based on their own theermanams/resolutions).
- The ‘beneficial’ process of involving all stakeholders including representatives of Real Estate Developers Associations in the market value revision process and notifying the citizens with draft revision proposals could not be taken up.