HC Order on Amaravati may jack up realty prices for now
The recent judgement against trifurcation of capital is expected to see increase in the prices of real estates in Vijayawada-Guntur region at least for sometime
image for illustrative purpose
Visakhapatnam: Even as the Andhra Pradesh Government is analysing pros and cons of approaching the Supreme Court against the AP High Court's order to complete work on development of capital at Amaravati as per the Master Plan, the recent judgement against trifurcation of capital is expected to see increase in the prices of real estates in Vijayawada-Guntur region at least for sometime.
The realty prices crashed when the YSR Congress Party after assuming power took everyone by surprise by announcing that it will form executive capital at Visakhapatnam, judicial capital at Kurnool and transform Amaravati as the legislative capital. The decision known as trifurcation of capital led to crashing of realty prices in Vijayawada-Guntur region and pulling out of promises for investment by the World Bank and the Asian Infrastructure Investment Bank and other institutional investors.
After bifurcation, TDP's N Chandrababu Naidu, who formed the first government in alliance with the BJP, projected Amaravati located on the banks of the river Krishna, as a futuristic capital by acquiring 32,000 acres from the farmers under Land Pooling Scheme (LPS)-which promised allotment of 1,000 square yards of developed plots at the place of their choice per an acre of surrendered land.
Singapore Government extended its support for preparation of the Master Plan for development of capital city, capital region and seed area. A Singapore Consortium had also finalised a blueprint for development of a startup area with a comprehensive ecosystem. Sites were allotted to star hotels and leading educational institutes to set up their facilities anticipating grandiose plans of the capital city making the area an important destination for investors. However, within no time the legislation done for three capitals led to nosediving of realty prices.
B Srinivasa Rao, president of Credai Visakhapatnam chapter told Bizz Buzz on Sunday that the court order may lead to increase in realty prices, it will not make any impact on the market here. "Capital or no capital Visakhapatnam with a good industrial base and Visakhapatnam port in the government sector and private port at Gangavaram is bound to grow on its own," he remarked.
Narayana Rao, a realty developer said though realty is a speculative business, the prices in Visakhapatnam have always remained on the higher side because of preference to buy plots/houses/flats here due to the peaceful and cosmopolitan nature of the party.
At one point of time, the fixing of price for auction of land at Harbour Park allotted to UAE-based LuLu Group for building an international convention centre at Rs 2.2 lakh per square yard was expected to pave the way for further increase in land prices in the vicinity. However, the auction of 13.59 acres for a reserve price of Rs1,452 crore could not be conducted due to court cases.
It is said that going by the statements of YSRCP leaders, they may approach the apex court to obtain a stay on the implementation of the high court order. "However, one thing is assured. The recent development will definitely delay the plan to develop Visakhapatnam as the executive capital," a ruling party leader said, seeking anonymity.
