Interest from NRIs & neighbouring areas caused Realty Price hike in AP
Siva Reddy, President, CREDAI Andhra Pradesh
Interviewer : Sandeep Pattnaik
Siva Reddy, President, CREDAI Andhra Pradesh

People residing outside Andhra Pradesh besides interest shown by NRIs to build houses in the proposed Capital region have shoot up the Realty prices, says Siva Reddy, President, Credai Andhra Pradesh.

 

Excerpts of his Interview with Sandeep Pattnaik of Gharabari.com...



Q.1. Post bifurcation realty prices have shoot up in AP. What are the factors responsible?

Ans. In June 2014 the state is bifurcated in to one Telengana and the other Andhra Pradesh. Post the announcement of a Capital Region [New Capital] by Chandrababu Naidu-led-Telugudesam party [TDP], people residing outside the AP and NRIs have shown interest to migrate into these areas and build homes here. It has ultimately have a cascading effect on realty prices in AP and led to the price rise. The CR is to be set up at an investment of Rs 1.5 lakh crore in around 50,000 acres of land through public-private-partnership [PPP] mode.


Q.2. Though land pooling for formation of CR has been quite successful the compensation to farmers remain the issue and hogging the media headlines? What is the status now?

Ans. Let me tell you that, only farmers pertaining to 2 to 3 small villages are yet to get compensation. But in most of the cases, compensation has been disbursed to the land losers. Almost 90% cases, farmers have voluntarily contributed their cultivated land. Out of total 50,000 acres required for the CR, 33,000 acres have been obtained from farmers community and the rest are of Govt. and forest land. AP Govt has declared to give 1000 sq. yard of developed residential area and 200-450 sq yards of commercial area to the farmers after 3 years. In addition to that, a cash compensation of Rs 30000 – Rs 50000 per acre per annum per farmer would be given. It will be given to farmers up to ten years with an increment of 5% each year.   


Q.3. Do you think, the proposed Land Acquisition bill if enacted, will prove helpful to be a win-win situation for all stakeholders?

Ans. Of course the Govt. will get land without much hurdles for developing infrastructure. On the other hand, farmers will get their compensation adequately.


Q.4. What are the recommendations from Credai AP to the government towards making 'Affordable Housing' a reality?

Ans. To tell you frankly, Modi Govt’s Mission 2022 – Housing for All will not materialize by just making mere announcement. Government need to give tax incentives besides provide land to private developers at affordable prices. Lakhs of acres of land are under the Govt’s kitty. These need to be released and the government should give a free hand to developers to achieve the 2022 vision.


Q.5. Which are the cities likely to be developed into a Smart City in AP? In the recent past, the CRDA team visited Singapore. What were the outcomes?

Ans. Visakhapatnam, Vijayawada and Tirupati are the cities those have all the ingredients to be converted as smart cities. The Capital Region Development Authority [CRDA] team have visited Singapore, Japan and Malaysia and asked the developers there to prepare suitable Master Plan for the proposed smart cities.   
 

 

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