Friday, November 30, 2007

A survey on real estate residential market of Twin cities - Hyderabad and Secunderabad

A survey on real estate residential market of Twin cities by M.L.Rao. Chief Coordinator, Equate Realtors, Hyderabad, India.


Hyderabad, the capital of Andhra Pradesh, has been known for its heritage, traditional hospitality and a thriving software industry. It is one of the largest metropolises of India, with a population of around 6.1 million people, spread over an area of approximately 625 sq.kms. The capital is in reality the twin cities of Hyderabad and Secunderabad linked together by the Hussain Sagar Lake and is now the second largest city in India with the recent inclusion of the 12 municipalities being merged into Greater Hyderabad.

This city that once predominantly depended on engineering based industries and trade as a means of income has seen a dramatic change over the last few decades. With the IT boom, companies like Microsoft, Oracle, Dell, Delloite, IBM, Perot, Polaris, Accenture, CA, HP, GE, UBS, Convergys and Franklin Templeton have set up offices in Hyderabad. This led to the development of infrastructure facilities and the general growth of the contiguous locations surrounding the Hitech City area, also referred to as Cyberabad, which has a coherence of its own due to the pace of development and the attraction of overseas investors. In recent times, owing to the interest generated in the Hitech City, real estate development has picket up considerably in the adjoining Gachibowli area where a number of campus development by IT major like Microsoft, Infosys, Wipro, Polaris, Kanbay, UBS, Franklin Templeton etc, are located. This has led to a substantial inflow of IT / ITES professionals, thus escalating the demand for Grade-A residential projects across Hyderabad. The research and survey done by professional real estate broker named M.L.Rao, chief coordinator of Equate Realtors (, having immense experience in real estate broking since 21 years at Twin Cities and having branch at Vizag.

Apart from the office market of this region, Hyderabad also as numerous prestigious educational institutions like Osmania University, ICFAI and Indian School of Business. The floating population of students from these universities has impacted the lifestyle and trends of the city as well. While a few years ago students stayed in hostels, nowadays they prefer to share apartment accommodations with batch mates.

Till a decade ago the mid-end residential development in Hyderabad were largely concentrated in locations like the Uppal Zone, Dilsukhnagar, Koti, Secunderabad, etc, while the localities of Banjara Hills, Jubilee Hills, and nearby areas continued to be premium locations. Market in these locations soon became saturated and due to non-availability of land parcels, builders were forced to move to other locations. Consequently, large scale developments are now seen in locations like Kukatpally, Madhapur, Miyapur, Madinaguda, Gachibowli, Nizampet, Kompally, Tellapur and Gopannapally.

Current Scenario

While the real estate market in Hyderabad has witnessed an immense amount of activity in the last decade, there has been an unprecedented boom in the last two years and residential capital values have witnessed a rise of around 75-130%. An estimated residential supply of around 56.31 mn.sq.ft is likely to enter the Hyderabad market by the end of 2009-10.

Infrastructure project like the Outer Ring Road (ORR) and the development of SEZs proposed by the government has led to speculation in the real estate market. This could be the cause for demand for land parcels and residential accommodations in Shamshabad, Maheshwaram and locations along Vijayawada highway. The housing requirement in the Madhapur-Gachibowli corridor has resulted in large scale Grade-A projects by major developers like L&T Info city, Lanco, Indu Group, IVRCL, Emaar-MGF, My home, IJM etc., ( Local builders like Manjeera Constructions, Alliance, Aparna etc). in the western and north western locations. The demand in Madhapur, Kukatpally, Jubilee Hills, Banjara Hills, Somajiguda, Yusufguda and Gachibowli as compared to other locations in primarily driven by the IT / ITES professionals with higher income levels enabling them to invest in these prime neighborhoods.

A notable trend in the buyer behavior of this city is the consistent demand for villas and row houses especially in the peripheral locations. This could be due to the buyer’s perception that the price of land will always be bullish. Buyers seem to be ready to commute 18-20 kms out of the city and invest in a villa. Of the total estimated supply for 2009-10, 25% will be in terms of villas and bungalows while 75% will be in the form of apartments.

Central Zone

The central zone includes locations such as Begumpet, Banjara Hills, Jubilee Hills, Somajiguda, Panjagutta, Chikkadpally, Ramkoti and Malakpet, most of which are in and around the Hussain

Sagar Lake. Majority of the locations form the traditional residential hubs of the city and capital values in this region range between Rs.2, 500-6,300. Since there are fewer land parcels available, most of the constructions encompassed in this region are stand-alone developments. Locations such as Banjara Hills and Jubilee Hills are still considered as prime residential locations and cater to the higher income segment. Construction activity in this micro-market is mainly observed on the inner roads of Banjara Hills Road No.10 and 12. However a large percentage of these projects are redevelopments of existing villas and bungalows. The projected supply to enter this zone by the year 2009-2010 is 1.61 mn.sq.ft. A few notable projects for this region would be Aditya’s Green Park with high-end apartments in the vicinity of Jubilee Hills on 6.91 acres of land, RRS Towers on Raj Bhavan Road and Prajay Riveria at Banjara Hills.

Northern Zone

Although a large percentage of the northern region is cantonment area, the project size in this micro-market is on a much larger scale than in most other locations of the city. This region has an even mix of both apartment as well as villa and bungalow development. This can be attributed to the fact that a considerable amount of the demand in these locations is investment driven. Maximum construction is being seen in Nizampet, Kompally, Bowenpally, Qutbullapur and Nagpur Highway and capital values for apartments and villas in these regions fall between the range of Rs.2,550-4,500 sq.ft. Many of the prominent developers have take up projects in this region as there are large expanses of land available complimented by excellent infrastructure facilities. Large projects in this zone include Ambience Neighbourhood by Ambience Group and Casa Estebana, a luxurious project by Koncept Ambience Group comprising 45 villas. A few other notable projects by local developers and Aditya’s Grand Ville of 100 independently villas and Ashoka’s ‘A la Maison’ in Kompally, Splendid Aparna Integrated township. This region is the second largest contributor to Hyderabad’s residential supply and has an estimated 9.13 mn.sq.ft. that is likely to enter the market by 2009-10.

Eastern Zone

The eastern zone comprises of locations such as Shameerpet, Yapral, Cherlapalle, Pocharam, Uppal, Kuntlur, Musheerabad, Marredpally and parts of Secunderabad, and has an estimated supply of around 2.46 mn.sq.ft that would enter the market by 2009-10. This region mainly consists of gated community and villa development, as buyers prefer to take a villa rather than an apartment at the prevailing rates. The northern part of this region has a majority of projects in Shameerpet and Yapral. Two large projects in this micro-market include those by Prajay Engineers Syndicate Ltd called Prajay Celebrity Villas and Prajay Bloomingdale. While the northern half of this zone is experiencing active real estate development in the above locations, the rest of the eastern zone is witnessing activity concentrated at Pocharam on Warangal highway. A notable construction in Whitefield is that by Hallmark Construction called Express Towers which has an amphitheatre among the facilities being offered. This zone is both end-user as well as investment driven, the capital values ranging between Rs.1, 600-3,500 /sqft.

Western Zone

The western part of the city encompasses locations in Cyberabad such as BHEL, Madhapur, Gachibowli, Gopannapally, Kukatpally, Miyapur, Nanakramguda, Manikonda, Bachupally, Kondapur, etc. this region with a supply of approximately 39.72 mn.sq.ft. is the major contributor to the overall supply that is likely to enter the Hyderabad residential market by 2009-10. North western regions like Bachupally, Borampet and the locations around the Biotech Park mostly have villa and row house development, while Madhapur, Gachibowli and Kukatpally, and have high-end residential apartments which are 5-14 stories high. L&T Serene County in Gachibowli, spread over 31 acres, includes a shopping complex and community centre.

Other notable projects in these locations include Hill Ridge in Gachibowli and Lanco Hills in Manikonda. Raintree Park, a joint venture township project between Andhra Pradesh Housing Board and IJM (India) Infrastructure Limited, is being developed at Kukatpally on 35 acres. Locations like Nadagandla, Gopannapally, and Hitech City have a preponderance of demand for apartments as compared to the rest of the western region. The demand is end user driven with a majority of the supply being taken up by those working in Hitech City and the neighboring commercial hubs. Development of gated community or bungalow schemes is on a rise in this region as it provides support infrastructure for the same. Some of the prominent constructions in these locations include Silicon County at Madhapur by the Jayabheri Group, Prajay Ridge Wood at Nadagandla and Maytas Hill County at Bachupally which has a business centre amongst other facilities. Most of the development in these locations are Grade-A and capital values for apartments and villas are within the range of Rs.2, 400-4,750 / sq.ft. with a demand for mostly 3 BHK apartments.

Southern Zone

The southern Zone comprises locations such as Himayatnagar in the south east and Shamshabad, Maheshwaram, Karmanghat etc. in the south. The south does not have much construction taking place with developers taking up most of the land parcels and dividing them into smaller plot layouts for sale. The ORR and the new international airport have been the key demand drivers for real estate activity in these locations. Around 3.38 mn.sq.ft. Of residential supply is under construction in the south and southwestern region. Most construction activity, however, is still in the nascent stage with the exception of a few projects like Banyan Tree Retreat by MAK Projects and Aliens Space Station II by Aliens Developers. These locations still cater to the middle-income group and till the development of Fab City along with other proposed project this trend would be unlikely to change. The capital values for apartments and villas in this zone range between Rs.1, 700-4,372 / sq.ft.


The Hyderabad market is likely to witness considerable real estate development over the next few years with the construction of the new Outer Ring Road which would connect all the national and state highways. Locations on either side of the ORR shall witness considerable development. In addition to the proposed radial roads, the government has approved a proposal to set up a Hyderabad Knowledge Corridor consisting of IT and ITES companies covering over 20,000 acres in Ranga Reddy district. Industry experts are sceptic about availability of large land parcels with clear title for construction of gated layouts or integrated apartment complexes. Another cause for concern among developers has been the introduction of Government Order (G.O.) 86 which has laid down certain strict guidelines for building activity in city central areas. However the advantage of G.O.86 is that in the peripheral locations of the city, there is greater scope for bigger project to come up. Recently, the increase in home loan interest rates has resulted in prices stabilizing and in some locations even reducing marginally. There has been a reduction in the number of home loans that have been taken after March 2007 due to the rise in interest rates and this could lead to a drop in demand in the immediate future. Currently the average ticket size for home loans in Hyderabad is around Rs.2 million. This market resistance is causing quite a few builders to postpone public openings of booking for new projects. Greater Hyderabad however is likely to emerge as a financial hub in the near future.


Contributed By : M.L.Rao

Sunday, November 18, 2007

A Glimpse of NASHIK – Arising as a prospective Real Estate Destination

Strategically located about 180 kms from Mumbai and 190 kms from Pune, Nashik forms the third end of this golden triangle. Primarily an industrial city blessed with good infrastructure & ample water supply because of the two rivers that run through the land, Nasik, considered to be a holy destination for tourists, is now making rapid strides in real estate development owing to increasing demand fuelled by availability of abundant land at rock bottom rates.
Religious Significance of Nashik

Location: On The Banks of the River Godavari, Maharashtra
Special Feature: 2,000 Temples
Previously Spelt As: Nasik
Attractions: Religion based tourism

Nashik is one of the important religious centres of Maharashtra, located on the bank of the river Godavari. It is particularly a city of temples and there are around 2,000 temples, both big and small.

As the legendary home of Rama, hero of the Ramayana, Nashik is one of the most sacred places of Hinduism; ancient Buddhist, Jain temples are also here. Traditionally the place attracts tourists, as it is known to be holy place.

Industrial Significance of Nashik

'Nasik' also known as 'Nashik' is the third largest Municipal Corporation in Maharashtra, with approximately 25 percent area under residential zone. Nashik is popularly called as the 'Wine Capital of India', owing to its abundant grape crop. However, the city has already been undergoing industrialization for the past decade after Mumbai, Pune & Nagpur and is seen as the next most sought-after commercial destination of Maharashtra.

Nashik falls midway between the industrial hotspots of Mumbai and Mumbai and owing to Nashik’s civilized environs and skilled workforce, it is turning out to be the IT & ITES Sector’s next preferred destination. Though still in its nascent stage, Nashik’s IT / ITES Industry growth is poised to grow multi-fold by 2009.

The authorities, on their part, are propping the city with improved transport and civic infrastructure to meet the challenges that a culture shift would bring about. Over Rs. 11,000 crore has been invested toward improvements in Nashik infrastructure since 2005, and after the makeover plans envisaged for the city by the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), the city is in for a property boom.

Once projects like the four-laning of the Mumbai-Nashik highway and the upgradation of the Nashik airport are complete, the Mumbai-Pune-Nashik Golden Triangle will generate high levels of employment. With land rates in Nashik still at three digits in some neighborhoods, Nashik is a great investment destination and is bound to give the benefits to the investor specially since a lot of SEZs are coming in the area.

Indiabulls Real Estate in its news release has announced that its wholly-owned subsidiary company, the Indiabulls Infrastructure Ltd. has got the Formal Approval for the development of a multi-product SEZ in Nashik, Maharastra. Department of Commerce (SEZ Section), Minis of Commerce & Industry, Government of India approved the proposal.

Corporates & Developers like Raheja, Reliance, Tatas & India Bulls are bullish on Nashik and its growing 360 degrees including residential, commercial & retail and its definitely one choice worth investigating for the investors. Even one of the latest FICCI-Ernst & Young report also mentions Nashik along with a few others as a prospective investment destination in India.

Abhi Chopra

Contributed By : Abhi Chopra

Sunday, November 11, 2007

Kolkata’s real estate market is set for a high growth phase fuelled by the IT/ITES sector

Kolkata’s real estate market is set for a high growth phase fuelled by the IT/ITES sector. This is according to the report, “Emerging City Winners Profiles: Kolkata”, released today by Jones Lang LaSalle, one of the world’s leading real estate services firm. An increasing corporate presence in the city is also triggering growth for Retail, Hospitality and Residential properties.
“Kolkata boasts of a highly literate and well equipped workforce, lower land acquisition costs (when compared to Mumbai and Delhi) and attractive government initiatives which make it a compelling destination for corporates and developers, alike”, said Mr Vincent Lottefier, Country Head, Jones Lang LaSalle India. He further added, “We at Jones Lang LaSalle are excited to be a part of Kolkata’s growth and pleased to offer our entire range services including transaction management services, retail advisory, strategic consulting, capital markets, property management, integrated facility management and project and development services.

The report states that increasing corporate presence is stimulating growth in per capita income and encouraging consumption in Kolkata. Overall, the city provides a positive environment for new corporate entrants, as well as existing corporates eying expansion.

Abhishek Kiran Gupta, Senior Manager, Research, Jones Lang LaSalle, India adds “Kolkata is now on the ‘global radar’ of multi-national companies – a large skilled labour pool, a pragmatic, business-friendly and stable business environment, active promotion and incentives, combined with low operating costs and the city’s strong cultural heritage are attracting the attention of both the domestic and international business community. The city has become a favoured destination for IT/ITES activities, with a rapidly growing corporate presence.

Kolkata now has most of the ingredients in place to move its economy up the value-chain – its size, skill base and heritage point to a significantly higher international profile over the long term”.

He further added “Kolkata’s real estate market is set for transformation, and property will play a pivotal role in the city’s continued renaissance. All real estate sectors have significant potential. The growing IT/ITES sector will underpin strong expansion of the office sector; Kolkata is a high priority destination for retailers attracted by its large population and rising disposable incomes; the residential market is expanding on the back of a growing IT/ITES workforce and hotel demand is being boosted by corporate business and tourism. The Kolkata real estate market is now on the radar of leading national and international developers, all keen to participate in Kolkata’s increasingly dynamic real estate market”.

According to the report, Kolkata, whose economy grew by 8% in 2005, is home to 175 IT and ITES firms which employ approximately 40,000 people. Rapid expansion and increased business activity is expected to strongly boost demand for speculative built space as well as built-to-suit offices and 4.5 million sq ft of additional supply is likely to be completed by 2007 in Salt Lake and New Town Rajarhat. The city is also a high priority destination for domestic and international retailers with over 2-3 million sq ft of organized retail under construction by 2008.

Stimulated by the growth of the IT/ITES sector, hotel room demand in Kolkata is expected to grow at an annual 11.7% over the next five years and supply at 15.4% per year. Similarly, Kolkata’s residential demand continues to be strong, as shown by absorption patterns of recent residential demand, which are expected to grow in tandem with economic activity and investor interest.

“Emerging City Winners” is Phase IV of the Jones Lang LaSalle’s World Winning Cities Research, a multi-year programme which draws together the essence of contemporary city competitiveness. World Winning Cities Research examines trends that impact the business and economic landscape, and how these factors are coalescing to create the rising urban stars of the next decade. The research aims to identify the winners and losers among the emerging BRIC cities in India, China, Russia and Brazil.

Thursday, November 8, 2007

Vastu Shastra – An introduction

Vastu Shastra, A science of Environmental Harmony and Energy, its mere mention creates a feeling of wonder and an air of inquisitiveness among people.
Vastu Shastra, which was earlier considered as a archaic or a primitive science and was also regarded as a Luxury for the Wealthy few had now exploded and metamorphosed as mainstream thought, whereby most of the buyers of property as well as construction companies consider it extremely important to get the property assessed by a Experienced VASTU Professional in order to asses the strengths and weakness of the plot and also to get to know what energy the property can render to them in the long run.

But the Doubts still remain, As what do u really mean by Vastu and How can it Help us lead a Life of contentment and bliss?

Bhrama Created the world and then appointed Vishwakarma to device a system of Planning and Architecture Thus was the beginning of Vastu Shastra. Vastu Shastra Literally means the science of architecture but its is much more than architecture it also takes into account various other factors like Water, Plantation, Shape, Size, color, Directions and Numerology.

Vastu Shastra As mentioned is an Environmental science works by balancing your environment in accordance with the natural laws inherent in the universe Vastu takes into account not only architecture but also several other aspects, such as numerology. What leads to peace and harmony, which naturally are conductive to health and prosperity and its Possibilities are limitless.

This science if followed properly gives definite and positive results to its occupants. The place may be of any type Residence, factory, Shop, restaurant or even a Temple, if the Rules are properly Followed the Results are assured to be positive and there will always be happiness and Prosperity.


Since My First Article, which appeared in this Esteemed, magazine Last Month I Have received a fabulous response from Builders and Numerous Queries from Reputed Building Contractors mainly asking me As to How Vastu Can be used effectively for their Construction Activities, As More often their Projects are already Designed and they merely have to carry out the construction as per the schedule without any changes.

Based on the Above Queries I am writing the Following Article explaining a few points As to how Vastu Can be effectively used and very well followed (in a Limited manner) to generate positive Energy and Better Results.

  • Date of Construction: Date of the Start of Construction is very Important for Any Construction activity to Begin. Auspicious Dates Bring out Better Results. –

    Some of the Few Considerations are Given Below

    • The Nakshatras Rohini, Mrigshira, Chitra, Hast, Swati, Anuradha, Uttarashdah, Uttar Bhadrapad, Uttar Falguni, Dhanshtha, Shatbhisha, Revati are good for starting the house construction work.

    • Days - Monday, Wednesday, Thursday and Friday are good days to start construction work. Sunday or Tuesday should be avoided.

    • Construction started in Shukla Paksha brings happiness, while that in Krishna Paksha is not considered too auspicious

  • Clearing & Leveling of the Land: Clearing of the Land of Thorny plants / dead trees and Rocks in necessary before any construction activity to start (Especially in the North-East). Also Leveling of the piece of Land (Which I am Sure is in the hands of the contractors) Plays a Very Important Role in Vastu Shastra. Proper Leveling with certain portion of the Land bit higher than the Other Creates a very Good flow of cosmic energy thus ensuring uninterrupted construction activity and proper flow of finance.

  • Shanku Sthapana (Vastu Pooja): SHANKU means Energy Converter And Shanku Stapna is the Pooja Done for Laying the Foundation Stone and praying to the SHANKU ,which Plays a Very Important Role to remove the Negative radiation/Energy from the Piece of land . Different people Use Different Shankus or (Energy Converters). Pooja is offered to this Shanku and Then its Buried in the Exact Mid-point of the Plot, As it is Believed that any form of Energy Moves towards the Center /Midpoint of the Plot and Having a Shanku Buried there Will ensure suppressing the negative energy thus Avoiding any Harm to the Construction Activity.

  • Starting Point of Construction: As per the Principles of Vastu-Shastra, The Starting point of Construction is Very crucial. Construction is Generally Beneficial when Started from The South-East Portion and Moved in a Clockwise Manner. This will ensure smooth construction activities.

  • “ For Construction Companies in the business of construction of Roads and Bridges, they Should Always Follow the Principle of Starting from a Negative location or Energy point and Moving towards a positive Location or Energy point. This automatically pushes the Project faster with uninterrupted flow of finance.” Secondly Proper Leveling of the Roads and Bridges as per Vastu will definitely bring prosperity to Construction companies who work on the arrangement of B.O.T (Build, Operate, Transfer).

  • Placement Of the Contractors Office: Every Contractor builds a Temporary Site office at the Construction Site. Proper Placement of this Office at the Site, Including sitting arrangements of the Contractor / managers etc facing the Best Directions enhances the energy level of the persons working on the project. This helps in getting better results from the staff and managers working on the Project

  • Placement of Machinery / Construction Material: Proper Placement of the Machinery and Construction Material is also very crucial to generate positive energy and ensures favorable movement of the project. Electric Machinery will give positive Results when placed in the Agni Sthan. Other materials like Sand and Bricks Should be Placed on the Prithvi Sthan or The South. Placement of Temporary Water tanks for Construction is of Utmost Important as Water is a powerful form of ENERGY. They should at no cost be placed in the South –West. This will definitely cripple the Project and will bring losses to the Developer.

Amit Lamba

Contributed By : Amit Lamba

Sunday, November 4, 2007


6-3-352/1, 4th Floor, Osman Plaza, Near Nagarjuna Hills Circle,Road No.1, Banjara Hills, Hyderabad- 500 034. Phone Nos: Board : 040-4014 4996 Direct cum Fax No. 040- 6646 6037 Mobile No.0-9866446467 E- Mail :


Stamp duty is the amount payable to state government on the instruments of conveyance, sale, gifts, exchange, partition deeds, power of attorney to sell immovable property, settlement deeds, and transfer of lease by way of assignment. Payment of stamp duty gives legal effect to the document and makes it admissible in the Court of Law. Central government collects stamp duty for instruments of commercial instruments like share transfers, letters of credit, bill of exchange etc. in order to ensure uniformity in payment of stamp duty in respect of such instruments all over the country.

The provisions for payment of stamp duty and registration charges have been provided for the sole purpose of generating revenues for the government. But the high rates of stamp duty and registration result in non-registration of property transactions and transfers made through power of attorney, encouraging non-conformity with laws and loss of revenue to the government.

High rate of stamp duty prevents prospective purchasers from registering the property transfer. They tend to evade such payment by avoiding registration. If the property transaction is not registered, it cannot be called a transfer and such income from such transfer is not noticed for tax under capital gains.

The stamp duty rates in Andhra Pradesh were very high, due to which certain property transfer transactions were not registered for the purpose of avoiding payment of stamp duty on such rates. The result was obviously the high loss of revenue to the government. Also, it was pointed out that the lower rate of stamp duty would reduce use of black money for property transactions, facilitate bona fide transactions and increase potential for larger revenue collection.
Section 9(1) (a) of the Indian Stamp Act gives power to the government to reduce, remit or compound duties. Article 6(B) of Schedule I-A of Indian Stamp Act, 1899, as amended by the Andhra Pradesh Amendment Act 21 of 1995 provides for payment of Stamp Duty for Agreement or Memorandum of an Agreement not otherwise provided for in relation to construction of a house or building including a multi-unit house or building or unit of apartment/flat/portion of a multi-storied building or for development/sale of any other immovable property.

Therefore realizing this trend of evasion of payment of revenue by the prospective buyers of property and to encourage payment of taxes, in exercise of the powers conferred by clause (a) of sub-section (1) of section 9 of the Indian Stamp Act, 1899, the Governor of Andhra Pradesh by way of notification dated 01-08-2005, reduced the Stamp Duty payable under Article 6(B) of Schedule I-A of the Indian Stamp Act, 1899 in respect of the documents relating to Agreements or Memoranda of Agreements of sale/construction/development of immovable properties to 1% on the sale consideration or estimated cost of construction/development, as declared by the parties to the document, subject to Rs. 20,000/- on the condition that the Stamp Duty so paid shall not be adjustable at the time of registration of consequent sale deeds in pursuance of such agreements duly registered under the Registration Act, 1908.

In respect of the documents relating to Agreements or Memoranda of Agreements of sale or construction or development of immovable properties combined with General Power of Attorney clause Stamp Duty is reduced to 1% on the sale consideration or estimated cost of construction/development, as declared by the parties in the document, subject to a maximum of Rs. 50,000/- on the condition that the stamp duty so paid shall not be adjustable at the time of registration of consequent sale deeds in pursuance of such Agreements-cum-General Power of Attorney registered under the Registration Act, 1908.

The reduction of stamp duty has thereby promoted registration of property and in the long run will encourage investment and reduce cash element in property transactions. This will also provide for increase in revenue collections of the government as well.

The notifications issued by the Government for reduction of Stamp Duty under Article 6(B) of Schedule I-A are given below.


In exercise of the powers conferred by clause (a) of sub-section (1) of Section 9 of the Indian Stamp Act, 1899 (Central Act II of 1899), the Governor of Andhra Pradesh hereby reduces the Stamp Duty payable under Article 6(B) of Schedule I-A of the Indian Stamp Act, 1899 in respect of documents relating to Agreements or Memoranda of Agreements of sale/construction/development of immovable properties to 1% on the sale consideration or estimated cost of construction/development, as declared by parties in the document, subject to a maximum of Rs. 20,000/- on the condition that Stamp Duty so paid shall not be adjustable at the time of registration of consequent sale deeds in pursuance of such Agreements duly registered under the Registration Act, 1908.

The above notification shall come into force with effect from 01-08-2005.


In exercise of the powers conferred by clause (a) of sub-section (1) of Section 9 of the Indian Stamp Act, 1899 (Central Act II of 1899), the Governor of Andhra Pradesh hereby reduces the Stamp Duty payable under Article 6(B) OF Schedule I-A of the Indian Stamp Act, 1899 in respect of documents relating to Agreements or Memoranda of Agreements of sale or construction/development of immovable properties combined with General Power of Attorney clause to 1% on the sale consideration or estimated cost of construction/development, as declared by the parties in the document, subject to a maximum of Rs. 50,000/- on the condition that the stamp duty so paid shall not be adjustable at the time of registration of consequent sale deeds in pursuance of such Agreement-cum-General Power of Attorney registered under the Registration Act, 1908.

The above notification shall come into force with effect from 01-08-2005.

V V S N Raju

Contributed By : V V S N Raju