‘Hike will be adding insult to injury’
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Crisis-stricken realty sector and desires of the widespread man to personal a home will take an extra blow if land values are elevated, opine a bit of individuals
The proposal of the federal government to improve land worth within the State is drawing broad criticism on the bottom that it’s being achieved ignoring the hunch within the realty sector due to the pandemic impact. Property patrons really feel that the extra burden could deprive the widespread man of a possibility to personal a home.
The improve in land values could, nevertheless, profit just a few to elevate financial institution loans apart from serving to curb black cash to some extent because the scope for undervaluation will be minimised.
When land worth will increase within the metropolis, widespread individuals have a tendency to transfer to suburbs. A 20% improve in land worth within the coronary heart of the town can even lead to doubling of the associated fee in suburbs.
“Builders are already facing problems due to the increased costs. A reasonable hike in land values every year may look all right but will still affect the common people. The urban development authorities have to develop housing layouts and provide houses to the common people at reasonable cost to overcome this problem,” says Cheruvu Ramakotaiah, nationwide president of the Builders Association of India – MSME Committee.
“The ground situation is not reflected in the fixation of land values in different areas of the city. The value fixed by the government in Seethammadhara is ₹62,000 per square yard but the market value is almost double the figure. On the contrary, the official cost of one square yard in Old Town is fixed at ₹50,000 but the market value is around ₹20,000,” he says.
“A number of completed flats in the city are left unsold as the pandemic has financially crippled almost all sections of people. The hike in values will result in the prices going up further driving away buyers,” says CREDAI Visakhapatnam chairman Bayana Srinivasa Rao.
High prices
“The apartments constructed by big builders at Yendada cost ₹6,300 per square foot (sft) while at Madhurawada it ranges between ₹4,500 and ₹6,000. At Oxygen Towers in Seethammadhara it is ₹8,000 per sft. The big builders are mostly constructing flats ranging between 2,000 and 3,500 sft costing around ₹1 crore. On the other hand, the cost of an ordinary 1,050 sft flat at Rama Talkies area is ₹1 crore,” says Chamana Srinivasa Rao of Madhuranagar space, who went out scouting to purchase a flat, final week.
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