VIJAYAWADA: The Andhra Pradesh government has announced a revision of land market values in urban areas, effective February 1. The registration department has been instructed to assess market values and finalize the new valuations promptly. This revision follows nearly a year after the last update in February.
Officials revealed that this initiative aims to align the official market values with the current market conditions, as there have been noticeable discrepancies between guideline prices and actual transaction amounts across various urban, semi-urban, and rural regions. Each district will have an evaluation committee led by the joint collector, including representatives from the registration, municipal administration, and revenue departments. The assessment will take into account recent sales, infrastructure developments, road connectivity, urban expansion, and commercial activities.
Typically, land value revisions occur every two years; however, considering the state’s financial challenges, the government opted for an early adjustment. This change is expected to generate additional revenue for the exchequer. Nevertheless, it has raised concerns in the real estate sector. Developers and property dealers worry that increased market values will lead to higher stamp duties and registration fees, potentially discouraging buyers at a time of declining demand. “A drastic hike in guideline values will affect affordability and may delay purchasing decisions, particularly for middle-income buyers,” said a real estate developer.
Common citizens aiming to acquire housing plots or small residential lots will also feel the impact, as registration fees are linked to official market values. Many first-time buyers may need to reconsider their finances or postpone their plans.
Officials, however, support this revision, stating that it is a legal requirement that helps prevent revenue loss. “When guideline values fall significantly below actual sale prices, it leads to undervaluation and revenue loss for the government. The update will enhance transparency and fairness,” explained a senior revenue official.
Efforts are being made to ensure that increases, particularly in rural areas and economically stressed regions, are reasonable. As the deadline approaches, both buyers and sellers are expedited to complete registrations under the current rates, resulting in heightened activity in registration offices. In the coming months, it will become evident whether this revision will stabilize the market or further hinder transactions.
