Land prices rise in Telangana after division
Jun 05 2014
According to Veera Babu, office head Cushman and Wakefield, in some locations close to Vijayawada, it is a speculators’ market now with land prices zooming to Rs 1,45,000 per sqyd, an unheard of range on these locations.
“There is a large scale speculation in the prices of land. We can safely say that the number of transactions that will happen at this price will be very less. Land prices are not viable enough for organised players,” Babu predicted.
In the peripheral areas, land is being quoted at Rs 40,000 to 50,000 per sqyd. The average cost of a 2BHK dwelling unit is now between Rs 40 and 70 lakh in urban pockets and averages about Rs 27 lakh in the peripheral areas, he said.
According to Babu, in early 2000, retail rentals in key locations of Hyderabad were about Rs 35 per sqft. During the decade and half period, the input costs have gone up tremendously but current rentals were pegged about Rs 32 per sqft— showing negative growth.
“The prices could have increased more than 40 per cent in many locations. But there are no sellers- they are holding the land expecting that prices will increase further in a few days,” Babu said.
Meanwhile, a JLL India report on ‘Key development clusters in Seemandhra’ has said new Andhra Pradesh has immense potential for development due to its geographical location.
It has the second largest coastline after Gujarat, five seaports, and four airports. NH-5, part of the golden quadrilateral connecting Delhi, Mumbai, Chennai and Kolkata, passes through the key cities of Andhra Pradesh, according to Sandip Patnaik, managing director, Hyderabad, JLL India.
The report identified key development clusters in north (Visakhapatnam), north central (Rajamundry and Kakinada), central (Vijayawada, Guntur, Tenali and Mangalgiri) and south (Tirupati, Nellore and Ongole).