Andhra Pradesh - Khammam   

Land prices on the rise in Khammam

By Our Staff Reporter

KHAMMAM, FEB. 10. Land prices are soaring in Khammam and its suburbs with the residential, commercial and agricultural land fetching ten times more than their price in 2002. With agriculture no longer remunerative, farmers are on a selling spree following the unexpected boom in real estate business.

The hike in the prices is owed to the "exaggerated sales practices" of some influential real estate promoters. Land related litigation is also on the increase and the parties involved are depending on political leaders or officials to settle the disputes. In certain cases, pressure is being exerted on the police from political bigwigs in Hyderabad while some are involving pseudo naxalite groups to settle land disputes.

NRI factor

The price raise has been fuelled by huge investments in real-estate business by non-resident Indians and businessman with their roots in the district. The drop in the rate of interest offered by the banks and the doubts being entertained about the fate of the deposits with certain private investment firms has added to the real estate boom.

As a retired employee puts it, land would not deteriorate. It cannot be burnt or stolen. Only thing you need to be sure about is that it is dispute free. An acre of agriculture land about three to four kilometers away from the town costs over Rs. 20 lakhs, while the residential land is being sold at Rs. 2,000 to Rs. 7,000 per square yard.

Scheme affected

The price increase has affected even the land purchase scheme, aimed at the uplift of the disadvantaged sections. The prices of land in other towns also shot up considerably. In Sathupalli, the Singareni Collieries sought to acquire land from farmers for opening a new coalmine project. The land deals are on the increase in Madhira area also, thanks to the flow of money into the NRI accounts. But the boom, as the real-estate experts say, may not last long as it owed to artificial hype. The market trends would soon fall in line with the real conditions.

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