An aerial view of the city of Visakhapatnam. Real estate agents are worried that the increase in property rates might lead to a slowdown in business.
| Photo Credit: K.R. Deepak
From New Year 2025, existing property owners can enjoy increased property value, but new buyers will have to shell out increased property registration charges as the State government has decided to revise existing property rates, except in Kurmannapalem area in the city.
For instance, the current government value of a flat in Seetammadhara is ₹5,700 per sq ft. This has been revised to ₹5,900. Therefore, the rate of increase in value is 4 per cent. Its current market value is Rs 8,200 per sq ft. Similarly, the revision has been done by about 9 per cent in Rushikonda, 14 per cent in Marripalem and 20 per cent on the Beach Road in Visakhapatnam, among other areas in the city.
In 2020, the government had hiked the property values to the maximum extent to gain revenue, and then in 2023 the taxes were increased to a limited extent. Now, the rate of increased property value is the same as in 2020, according to officials of the Stamps and Registrations Department.
Before the new rates come into force from January 1, 2025, the government had already announced its decision officially by displaying the revised rates at all Sub-Registrar Offices (SROs). Public suggestions and objections will be accepted regarding the revised rates till December 24, and will be reviewed by December 27.
“With the new rates coming into effect from January 1, 2025, the department is estimating a minimum of ₹150 crore in increased revenue (₹50 crore a month) in the next three months of the financial year 2024-25 ending March. The district’s average revenue earnings from the property registrations is around ₹1,000 crore, and it may go up to ₹1,200 crore per annum with the new rates. The maximum revised rates will be within the limits of Anandapuram Sub-Registrar in the district, apart from some places in the city,” Registrations and Stamps Visakhapatnam District Registrar T. Upendra told The Hindu on Sunday (December 22).
On the other hand, real estate agents are worried about the government’s decision as their business is likely to be affected due to the hike in property rates.
“We recently brought the issue of revised property rates to the notice of Municipal Administration & Urban Development Minister P. Narayana in Vijayawada. He asked us to cooperate with the government in some decisions, particularly on the revenue matters, which would be helpful to both government and people concerned,” a CREDAI executive said.
Published – December 22, 2024 07:46 pm IST
