The Hindu : Front Page : Land prices soar in Erode district

Online edition of India's National Newspaper
Friday, Nov 24, 2006
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Land prices soar in Erode district

R. Sundaram

ERODE: Prices of vacant sites and fertile lands in Erode have increased many fold in the last two months.

An acre of land in Villarasampatty area, which fetched Rs 3 lakh some months ago, is now selling at Rs 15 lakh thanks to the turmeric complex which will be located in the area.

Handloom Minister N.K.K.P. Raja who recently visited the 52-acre turmeric complex site said: "Land price in the area has gone up five or six fold and an acre is selling at Rs 15 lakh which is beneficial to the farmers." Landowners said they were not getting enough income from agriculture. So selling their lands for a "fancy'' price and investing the money thus accrued in a profitable trade or depositing it in post offices made good economic sense, the landowners felt.

There is no vacant site on Perundurai road, Nasiyanure road and in the Erode town area. A real estate consultant P. Baskar said: "Till June 2005 sites on Perundurai road were available at Rs 250 a sq. ft., but now no site is available. In interior areas a few sites are available for Rs 450 a sq. ft. Many people are ready to buy lands by paying premium prices."

Turmeric merchant Palanisamy said landowners in Villarasampatty, Nasiyanure and surrounding areas were demanding more than Rs 15 lakh for an acre. Some persons were buying lands expecting appreciation in the value in next three to six months.

The registration department officials said some months ago the guideline value was revised in Erode and sites were being sold at two times more than the guideline value.

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