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Vizag realty market booms again

Vds Rama Raju Chennai/ Visakhapatnam
Rising hopes of a separate Telangana, especially after the Karimnagar by-election, has once again made the realty scene in and around Visakhapatnam active. Land prices here have gone up by over 50-75 percent over the last two months and this is true of even remote agricultural lands.
 
In fact, land transactions increased 25 per cent and 13 per cent in the months of November and December respectively, compared with the corresponding months last year.
 
Consequently, the land registration revenue rose to Rs 18.5 crore and Rs 21.89 crore in November and December respectively as against Rs 12.5 crore and Rs 13.03 crore during the same period last year.
 
After Chandrasekhar Rao's win, investors are flooding to this region for safe investment and this is the main reason for rapid spurt in land prices, K Satya Rao, a real estate developer, says.
 
In Madhurawada, where major investments in housing are proposed by the Visakhapatnam Urban Development Authority, land prices went up to Rs 50-60 lakh per acre last year and for the last two months are hovering around Rs 2.5 crore. Two years back, the same lands cost Rs 20-30 lakh per acre.
 
In Yelamanchili, where the AP SEZ is coming up, land prices have soared from Rs 2-5 lakh per acre two years back to Rs 20-30 lakh. In the last months itself, prices were up by Rs 5-7 lakh a acre.
 
On NH-5, lands bordering Anakapalli to Anandapuram are commanding a price of Rs 1 crore a acre. Two years back this was just at Rs 20-30 lakh per acre. Even in distant areas like S Kota, Bhogapuram, and Korukonda, the land prices have increased to Rs 6-12 lakh per acre, whereas some two years back they were at Rs 1-4 lakh per acre.
 
Besides, apartment costs have increased drastically in the Visakhapatnam city. Last year, the per square feet cost here was Rs 1,000-1,400, now it has increased to Rs 1,800-2,500 per sft. Joining the party are also the construction material companies, which have raised the material cost 30-40 per cent, K Subba Raju, chairman, Apartment Builders Association of Visakhapatnam, says.
 
But amid all these, the land registration department definitely has a reason to smile.
 
Says R Damodara Rao, joint sub-registrar, Visakhapatnam, soaring land prices and more number of land transactions have increased the department's revenue in this district. In 2003-04, the district registration department garnered a revenue Rs 98 crore; in 2004-05, it soared to Rs 130 crore and in 2005-06, this was at Rs 165 crore.
 
During this fiscal up to December, the revenue collections were about Rs 150 crore, as against Rs 120 crore during the corresponding period last fiscal.

 
 

 

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First Published: Feb 01 2007 | 12:00 AM IST

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