Hyderabad: The ongoing economic recession seems to be taking a toll on new registrations in Telangana. The construction activity is facing rough weather owing to the price rise of cement, sand, iron, steel and other building materials. The slump in real estate activity is affecting new registrations as well. It’s evident from the declining revenues of the registrations department. However, officials are of optimistic view that new registrations would pick up from January 2020 onwards.
The revenue fell by Rs 76 crore in October when compared with August, observed an official. The property market in Telangana, particularly Hyderabad, showed an encouraging trend from the beginning of 2019. As a result, the registrations department recorded increased revenues every month. More than Rs 500 crore of revenue recorded every month.
However, the revenues slipped below Rs 500-cr mark in September and October. The Registrations Department recorded Rs 557.90 crore in revenues in August and Rs 481.60 cr in October. The drop in new registrations was steeper in GHMC limits. For instance, a sub-registrar office in GHMC purview generally gets about 110 new registrations on an average per day. The number dropped to 75 new registrations per day in October. In neighbouring districts like Mahabubnagar and Rangareddy, the new registrations went down by 20 per cent.
The total registration revenue was Rs 532.67 crore in April, Rs 574.33 cr in May, Rs 538.76 cr in June, Rs 518.48cr in July, Rs 557.90cr in August, Rs 497 cr in September, and Rs 481.60 cr in October as per official statistics. The year 2008 was tough for the united AP government as the revenues fell drastically. Besides, two years before Telangana state formation also dampened the sentiment for the real estate sector.
The Department of Registrations covers registration fee, stamp duty and transfer duty. Registration revenue is the third-largest revenue source for the Telangana government.