CURE Act in Force: What It Means for Buyers and Owners in Hyderabad

What happened?

The Hindu reported that the Greater Hyderabad Municipal Corporation Act of 1955 stopped applying from October 2. The Core Urban Region (Integrated Governance) Act, 2026, now sets the rules for three corporations: GHMC, Malkajgiri and Cyberabad. Officials said the law has been published in the state Gazette.

According to The Hindu, property tax moves from a rental-value basis to a Capital Value System, where the tax is a percentage of the registration guideline value. The paper said the Bill proposes a band of 0.1% to 0.5% for residential property and 0.2% to 2% for commercial property. It also reported that any government rise in guideline values will feed straight into tax, without a vote by elected councils.

The newspaper added that the Act prohibits transfer of properties with unauthorised construction, though it is not yet clear whether existing buildings are covered. Utility connections are also barred for buildings lacking an occupancy certificate. The paper said the new method may reportedly be extended to already-assessed properties from the next financial year, which is not confirmed.

Which sectors are affected?

• Hyderabad
• GHMC
• Malkajgiri Municipal Corporation
• Cyberabad Municipal Corporation
• Residential property owners
• Commercial property owners
• Resale and registration of unauthorised structures

Potential impact

The Hindu said tax on some properties is likely to double, with the sharpest effect in the Cyberabad area where values are higher. This is an expectation, not a published bill. Actual amounts will depend on the final rates chosen within the band and on the guideline value of each property. For context, our data puts the Hyderabad city average at 9800 per sq ft, so a percentage levied on capital value can add up quickly for larger or higher-valued homes.

On demand, the transfer bar could narrow the pool of safely tradable resale stock, and buyers may start asking harder questions about approvals and occupancy certificates. Whether prices move is unclear, and nothing here guarantees a fall or a rise. Higher holding costs would also eat into returns; our data shows a city rental yield of 3.6%, so a rise in annual tax matters for landlords. Much turns on how existing buildings are treated, which the report says is undecided.