TREDA, CREDAI Appeal to Telangana Govt to Defer Revision of Market Values of Properties

The TREDA and CREDAI appealed to the Government of Telangana to defer the revision of market values of properties. Here's full text of the letter...

We, the real estate developers associations of Telangana, hereby appeal to the Government of Telangana to defer the revision of market values of properties on the following grounds.

1)      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.

2)      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.

3)      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.

4)      The rates of building Materials including cement and Steel have gone up significantly despite COVID.

5)      It is only about seven months since the market values of properties were increased by 30% to more than 100%.

6)      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 Govt. Prescribed rates (based on their own theermanams/resolutions). Okay.

7)      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.

In view of the above, we appeal and request the government to defer the revision of market values till such a date a proper study is made on “the impact of the recent increases in duties/Fees/rates/costs/charges, changes in economy in general and the real estate market in particular and the likely burden of the union budget 2022 on the affordability of real estate in Telangana state”. In the meanwhile we earnestly request the government to revert the Stamp duty, NALA conversation charges and local body charges to the previous levels.