Massive real estate boom in AP
Guntur tops the number of land deals
Nov 17, 2014
Source : The Times of India


HYDERABAD: Andhra Pradesh is witnessing a real estate boom post bifurcation, with property registrations doubling in the 13 districts during the last few months as compared to the same period last year. Real estate speculation in the hope of capitalizing on the demand for land and frenzy over the construction of the new capital are said to have contributed to the massive spurt in land transactions.

Expectedly, Krishna and Guntur districts topped the list. According to sources, the 13 districts recorded a revenue of Rs 1,469.95 crore through land registrations between June-October 2014 as compared to Rs 624.83 crore during the same period last year. Krishna district, which was initially tipped to account for the major portion of the new capital region, recorded the highest revenue from land registrations post bifurcation. As against 44,281 registrations between June-October last year, the district reported 91,215 transactions worth Rs 236.5 crore this year.

However, when it comes to the number of transactions, Guntur topped the list. The district, which entered the race after the state government identified Tulluru, Mangalagiri, Tadepalli and Guntur mandals as part of the proposed capital region, reported 99,310 land registrations with a revenue of Rs 202.59 crore during the June-October 2014 period.

"Our officials in the districts are complaining that they need more staff to provide quick service to realtors. In Krishna and Guntur districts, there is heavy rush and people are being told to come back two to three days later to get their document registered. We are planning to send more computers, scanners and give orders to appoint more outsourcing personnel to meet the demand," explained senior officials in the AP government.

The sudden spurt in land registrations is attributed to the construction of the new capital city in Krishna and Guntur, as realtors in all 13 districts have shifted their focus to these two districts. They have opened their offices in either Vijayawada or Guntur and appointed local people as agents to get information about land for sale.

"Land on the outskirts of Guntur and Vijayawada has recorded the highest price hike during the last one year. For example, land near Vijayawada, which was available for Rs 10 lakh per acre a year ago, is now being quoted at Rs 6 to 10 crore. Land around Guntur city, which was purchased for Rs 10 lakh an acre just one year ago, is being sold for Rs 5 to 6 crore," said a realtor, who has shifted base from Visakhapatnam to Guntur.

The state government's decision to go for land pooling has jacked up the prices of even those land that will not fall in the capital region. Nuzividu, which is almost 50 km away from the proposed capital region, is also witnessing a spurt in real estate prices. According to sources, the prices of land between Gannavaram, Hanuman Junction and Nuzividu have shot up astronomically during the last six months. "We bought about 500 square yards of land in Nuzividu for Rs 15 lakh at the rate of Rs 3,000 per square yard six months ago. Now, we are seeing people offering Rs 50 lakh for the same 500 sq yards," said a Nuzividu resident.

A similar boom is being reported in Eluru, Tadepalliguem, Bhimavaram, Machilipatnam, Tenali, Bapatla, Narsaraopet, Chilakaluripet and Sattenapalli towns, all of which, like Nuzividu, are far away from the proposed capital region. "Vijayawada and Guntur are experiencing a rapid real estate boom as was witnessed in Hyderabad about a decade ago. And like it happened there, this region too might witness a bust, but at present, the land prices have shot up beyond the reach of the middle class," said an official.

Latest Realty News

Spike in realty fund raising, residential projects in focus
Nov 17, 2014
Mumbai: The real estate demand may not have revived across the country but that has not deterred investors to launch real estate funds mainly to invest in the residential projects
DDA sitting on Delhi land worth Rs 1 lakh crore
Nov 17, 2014
NEW DELHI: The Delhi Development Authority is sitting on vacant lands worth Rs 1 lakh crore in the capital
'Real estate prices up marginally'
Nov 17, 2014
BHUBANESWAR: Real estate prices in the city increased marginally in the quarter ended in June compared to the previous quarter according to Residex, the National Housing Bank's (NHB) quarterly update on property prices
Lack of clarity on land pooling angers farmers
Nov 15, 2014
GUNTUR: Farmers in the proposed capital region are growing restive with the cabinet sub-committee on land pooling failing to come out with a concrete assurance on compensation package
Plea to Khattar on 'integrated townships'
Nov 15, 2014
GURGAON: A city-based NGO, Aadhikar, and a group of residents have written to CM M L Khattar and MP Rao Inderjit Singh urging them to solve the problem of "integrated townships"
Hike in guidance value may hit flat buyers
Nov 15, 2014
Bengaluru: The recent revision of guidance values will increase apartment prices and add to the burden of people who are yet to register properties bought years ago
CBI arrests builder in Artha Tatwa fraud
Nov 15, 2014
BHUBANESWAR: The CBI arrested a builder on charges of embezzling Artha Tatwa (AT) Group funds
Taskforce on land submits report
Nov 15, 2014
BHUBANESWAR: Taskforce on Land headed by Revenue secretary Taradatt submitted its report to the Odisha government
Delhi government makes registration of all leasehold property sales compulsory
Nov 15, 2014
NEW DELHI: Delhi government took steps to not only put an end to the confusion among property buyers and sellers but also to contain the builder mafia
DLF to launch REITs next fiscal, plans Rs 3600cr CMBS
Nov 15, 2014
New Delhi: DLF, the country’s largest real estate company, plans to launch Real Estate Investment Trusts (Reits) in the next financial year

Latest Realty News Of State

Realty Talk's