Arresting the trend of a dip in land transactions pan-India after demonetisation on November 9, 2016, the situation in Telangana has looked up, but not to the extent of generating huge revenue to the State government.
It was almost revenue neutral in November 2017, but for the corresponding period last month (December 2017), a growth of ₹177 crore was registered.
One reason why demonetisation has not dented revenue from land transactions to the government was the affordable real estate market around Hyderabad. With investments continuing to pour into the city, not only due to affordability, but other factors like good climate, connectivity, stable State government and cosmopolitan culture.
Real estate sector leaders said the negative impact of demonetization, GST and Real Estate (Regulation and Development) Act over the past year was overcome quickly.
Telangana Real Estate Developers Association Treasurer K. Sridhar Reddy said that the industrial policy of the government (TS-IPASS) and the State topping the Ease of Doing Business rankings were also game changers, as they increased the occupancy rate of land.
He added that the only bad patch for the real estate industry in Telangana was during the agitation for Statehood.
“It took us one-and-a-half years to settle down after formation of the State and things have never looked back after that,” he said.
Though the land transactions grew only marginally, it was a qualitative growth in Telangana, because investors were assured of good returns in Hyderabad, which took the lion’s share of market. This was despite a steep hike in land cost.
Registration and Stamps Deputy Inspector General G. Madhusudhan Reddy explained that the hike in land cost made no difference to revenue growth for the government.
He said that revision of market value of lands had not taken place since August 2013.
Thanks to note ban and digital money transfer to bank accounts, the sellers and buyers of lands have volunteered to disclose to the extent possible, more realistic value of land that was transacted.
The stability in market in recent times has also ensured final payments and completion of pending registration of transactions that took place a year ago.