VISAKHAPATNAM: With the demand for flats growing in the Port City, a large number of builders are entering into a joint development agreement with land owners for construction of apartment complexes.
According to realty sources, nearly 90 per cent of standalone apartments being constructed in Visakhapatnam city are taken up under the joint development model. The share of the land owner and the builder varies from 40:60 to 60:40 depending on the location of the project as well as the size of the venture.
At least 390 square yards is required as per municipal rules to construct a four storey residential apartment complex with stilt for parking. In case of five storey buildings, the plot size should be around 600 square yards.
Confederation of Real Estate Developers' Association of India (CREDAI) Vizag zone chairman K Ramakrishna Rao told TOI that about 90 per cent of apartment complexes in Visakhapatnam were being constructed through the joint development agreement model. "Land owners and builders enter into an agreement under this model. Once the building is constructed, they will share the flats between themselves. This is beneficial to both parties."
Realty advisor M Nagendra said, "The land owner needs to enquire about the builder and ensure that he selects the builder with the best profile. Usually, flats are shared between the builder and the landowner depending on the value of the land."
Another builder V Ramana said the share of the land owner is higher in core areas of the city where land prices are high. The builder gets more number of flats if the land is located in the city outskirts. "Some builders are willing to construct apartment complexes in Kirlampudi layout and Pandurangapuram for only 25 to 30 per cent share," he said adding that the situation is however different in areas like Anandapuram.