Buyers reassessing costs

The revision of market values for land, apartments and commercial properties in Telangana appears to have triggered a temporary pause in real estate activity, with many buyers adopting a wait-and-watch approach after the new rates came into effect earlier this month. The immediate impact has been felt in registration activity.  According to industry sources, a large number of buyers advanced their registrations to complete transactions before the revised market values became effective.

As a result, registration volumes in the days following the revision have reportedly been lower than usual.The increase in market values has raised the overall cost of property transactions through higher stamp duty, registration charges and transfer duties. The impact is particularly visible in mid-segment residential purchases, where even a modest increase in market valuation can significantly increase transaction costs. Developers and market participants say buyers are taking additional time to reassess budgets and evaluate the overall cost implications before finalising purchases. 

In some cases, developers are also reviewing project pricing in response to the revised valuation structure. Industry observers note that such trends are not uncommon following revisions in government market values. Similar patterns have been witnessed in the past, with a spike in registrations before implementation followed by a temporary decline as the market adjusts to the new pricing regime.Despite the short-term moderation, the broader outlook for Hyderabad's real estate market remains largely unchanged.

The city continues to benefit from infrastructure investments, expansion of the IT sector, industrial growth, metro connectivity and major projects such as the Regional Ring Road.Market participants expect transaction volumes to gradually normalise as buyers and sellers adapt to the revised market values. Once the initial adjustment phase is over, registrations are expected to return to more typical levels. For now, the market appears to be going through a period of recalibration rather than a structural slowdown.

WHAT CHANGED?

•  Revised market values came into effect this month.
•  Higher guidance values for land and properties.
•  Increase in registration-related costs.
• Lower activity immediately after revision.
• Buyers reassessing budgets.
• Market adjustment phase.
• Registrations likely to stabilise.
• Long-term demand drivers remain intact.