Realty witness boom in Seemandhra
Tirupati: Contrary to the expectations, there has been no effect of the ongoing Telangana movement on the real estate business in the temple town of Tirupati, which is always considered a safe bet for investments as far as real estate is concerned. However, the cost of land or house-sites has increased phenomenonly over what it was five years ago.
The cost of one ankanam (36 sft) on the town outskirts, which was between Rs 5,000 and Rs 8,000 five years ago, is somewhere between Rs 15,000 and Rs 18,000 now. '`There has been an increasing demand for houses and sites in Tirupati and its surroundings, as it is a general perception that investment in real estate in Tirupati is sound.
Given the situation in the state, one could say that business here is above normal than elsewhere in the state,' says a real estate consultant who wished not to be named.
When the status of Tirupati was upgraded from a municipality to a corporation, land prices here went up and soared higher with rumours doing the rounds that the corporation will be upgraded further as a greater city by merging several peripheral panchayats and towns like Renigunta and Chandragiri with it.
Today, the cost of an acre between Chandragiri and Tirupati is anywhere between `70 lakh and `1 crore, it is even more in areas towards Srikalahasti. As the international airport is coming up at Renigunta, the land rates have increased phenomenally in that area. However, the sale of plots could only be described as average.
Experts says that an anakanam on the Tirupati outskirts towards Chandragiri costs somewhere between 12,000 and `20,000, while it costs `20,000 to `80,000 towards Renigunta. The variation in the rates can be attributed to the location of the plot, venture, etc.
When the real estate situation in Kadapa, which was the most happening place during YS Rajasekhara Reddy's rule, is taken into consideration, it too is not affected whatsoever by the Telangana movement.
Today, the common man is not in a position to afford a house-site either in Kadapa or its surroundings as the cost of land has increased abnormally in the last five years.
In the rural areas of Kadapa, a four-cent (200 sq yard) house-site costs around `20 lakh while a cent of land in Kadapa city costs anywhere between `15 lakh and Rs 30 lakh _ for or five times more than the prices of 2007.
In the case of Nellore district, where the Industrial development had been the prime focus of the government, real estate business too is flourishing.
However, given the situation in the state, there has been some slowdown, with several investors waiting for the uncertainty to clear.
The bulk of the real estate business in the district takes place in Muttukur, Venkatachalam, Nellorepalem, Kovuru, Kavali, Indukurpeta and Manubolu. Between Nellore and Gudur along the NH 5, several real estate ventures have come up for about 25 km.
Thanks to the development of the Krishnapatnam port, land rates in Muttukur have soared high and, today, an acre of land there costs anywhere between ` 5 crore and Rs 10 crore. In Nellore town, one ankanam costs around `5 lakh.
News Posted: 10 October, 2011
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