Telangana Government Announces Major Property Value Revision in 27 Core Urban Areas to Boost Revenue

August 18, 2025, Hyderabad - The Telangana state government has announced its approval for a significant increase in property registration values across 27 core urban municipalities situated within the Outer Ring Road, with officials stating that the move aims to align official rates with current market valuations.

State Implements 30-50% Value Hike Across Urban Centers

Government officials have indicated that the revision proposes an increase ranging from 30% to 50% over existing registration rates. The administration expects this change to generate an additional revenue boost of ₹2,000–₹2,500 crore annually from stamp duty and registration collections.

Officials noted that these 27 core urban zones currently contribute approximately 60–70% of the state's total property registration income, making this revision particularly significant for Telangana's financial planning.

Market Price Alignment Drives Policy Decision

State authorities have identified a substantial gap between official registration values and actual market rates, particularly in high-demand areas such as Gachibowli, Kokapet, and the Financial District. Officials pointed out that while market prices in these commercial hubs can reach ₹10,000 per square foot, the notified values have remained around ₹3,000 per square foot, resulting in transaction undervaluation and revenue loss.

This disparity in valuation has prompted the government to modernize property valuation methods to better reflect current market conditions.

District Committees Established for Data Collection

The government has constituted district-level committees headed by additional district collectors, which include representatives from GHMC, HMDA, municipal bodies, and sub-registrar offices. These panels will collect comprehensive data on land, residential, and commercial transactions before submitting their recommendations to the state cabinet.

Once cabinet approval is secured, officials stated that the proposed rates will be made available for public feedback, with provisions for adjustments including potential reductions in areas where current values may already align with market rates.

Previous Revision History and Industry Response

The last comprehensive revision of property registration values was implemented in January 2022, although regulations permit annual updates. A scheduled increase for 2024 was postponed following strong opposition from developers, who argued that higher rates would negatively impact real estate activity.

The current revision comes at a time when digital property registration reforms are being implemented across India to enhance transparency.

Impact Analysis for Different Stakeholders

Property Buyers Face Higher Costs

Prospective property buyers will experience increased registration costs across most urban areas, with premium localities seeing the most significant impact on transaction expenses.

Developers Navigate New Valuation Landscape

Real estate developers indicated that while transparent valuations could enhance transaction confidence, the revision may also increase purchase and transfer costs for projects.

State Revenue Enhancement Priority

For the state government, officials emphasized that this represents a crucial revenue enhancement measure during a period of increasing urban infrastructure demands and development projects.

Key Implementation Details

Future Implications for Urban Real Estate

Industry observers noted that the move signals the government's commitment to modernizing property valuations and preventing revenue leakage. While buyers and developers will face higher upfront costs, the alignment of registration values with market rates could bring greater transparency to real estate transactions in Telangana's fastest-growing urban zones.

The implementation timeline and final rates will depend on the completion of data collection by district committees and subsequent public consultation processes. This development follows similar property value revisions in other states as governments seek to optimize revenue collection from real estate transactions.