Small homes, plots to feel the heat of price revision

Industry insiders revealed that it's the budget section of property buyers who will probably be affected by the revised market values. 

It is anticipated to impact those targeting plots in Hyderabad’s outlying areas, where rates have risen by 30-40%. 

C Prabhakar Rao, President, Telangana Builders Federation said that small builders and their customers will surely be affected. Many buyers have initiated their registration plans already due to rising registration costs. Builders are worried about increasing government charges. 

Ashwin Rao, Managing Partner of Akshara Groups said its impact would be primarily on satellite towns and scarcely on prime locations. Some stated that commercial deals in prime locations will feel the effect as well. 

Rao stated that the government has realized smaller towns' capability to generate revenue. 

They asserted that all transactions don't happen at much higher rates. “This revision, therefore, will create more stress to small investors and buyers,” said Sumanth Reddy, managing director, India Institute of Real Estate. 

He added “Already, the significant rise in land prices and construction costs along with GST has made real estate unaffordable to a lot of people. To add to that, the irrational registration values and increase in stamp duty will make things worse.”