Bifurcation happened and the erstwhile united Andhra Pradesh has been divided into two states.
Following the formal division, one issue that has gained prominence is the cost of realty in the newly emerged Andhra Pradesh state.
Just like in Hyderabad about a decade ago, the land prices are rocketing (up) in the Vijayawada-Guntur-Tenali-Mangalagiri circuit.
Apart from major towns in Seemandhra such as Vizag, Vijayawada, Kakinada, Rajahmundry, Guntur, all areas bordering them up to 50 to 100 kms have become quite costly when compared to the past rates.
Irrespective of the buyer-seller ratio, the Telugu Desam government has ensured that its revenue from land transactions increases.
It has decided to increase the land rates by nearly 30 per cent. This would mean that the registration charges will now increase by 30% and the government will pocket the excess amount.
Meanwhile, the TDP ministers are making sensational statements day in and day out. While one claims that a new airport will be built in Vijayanagaram, another claims that a port would be developed in Bapatla.
The real estate giants are taking advantage of these statements and hiking prices arbitrarily. Due to this, the real estate sector has emerged the final winner in the game as the prices have turned sky-high.
On the other hand, since it is more or less decided that the new capital city of Andhra Pradesh would be developed between Vijayawada and Guntur, the rates here are spiraling out of control.
As if this was not enough, the government has sent out new feelers that the capital would be extended till Vinukonda. So, the government is indirectly making sure that the land prices rocket (up).
All along, Babu has maintained that the new capital city will be developed on the lines of Singapore. But if one were to consider the example of Singapore, the construction of houses and real estate development is in the hands of the government.
However, in Andhra Pradesh, organizations like VUDA have been converted into money-making bodies by the government. Such organizations no longer provide the opportunity for the common man to get land at reasonable prices through lottery system.
Already, the registration charges for apartments have been hiked by 20%. Now, in the latest development, the registration charges will be 30% steeper. For example, if one intends to buy an apartment in Vizag, then one must be prepared to shell out Rs 2 to 3 lakh for registration.
The government continues to make tall promises. Only time will tell if they can keep all their promises or at least a few of them. But one thing is clear. The real estate has become a costly affair for those looking to own a piece of land.
