The Hindu : Andhra Pradesh News : Land prices dip in Adilabad

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Friday, Aug 15, 2008
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Andhra Pradesh

Andhra Pradesh

Land prices dip in Adilabad

S. Harpal Singh

“Flood has put a scare in the minds of people’

No more rosy: This land was priced at over Rs. 5 lakh per acre in Kachkanti village in Adilabad mandal until the floods diminished its value

ADILABAD: The recent floods have become a cause for decreased real estate activity and diminished land value in the affected areas on the periphery of Adilabad town and in a few gram panchayats nearby. The floods served to expose the fact that the land along riverbank is prone to calamities. This is the prime factor that influenced the downtrend, which again is likely to continue for a long time. Realtors now shun these happy hunting grounds where even Government lands were offered good prices by them. “The flood has put a scare in the minds of people whose localities were affected by it. For example, in LB Nagar locality in ward number 27 in Adilabad Municipality, a number of people have put up their house for sale. However, no purchaser is willing to buy the property for the same reason. This has made the prices of land plummet. A 40X60 foot plot that used to be sold for Rs.5 lakh to Rs.6 lakh does not attract even Rs.2 lakhs now,” explains Akula Mohan, a part time realtor. Similarly, growth in real estate business was also witnessed towards the Kachkanti gram panchayat where hundreds of acres of agriculture land was put to commercial use. These house plots were sold at an attractive price range of Rs.75,000 to Rs.1.5 lakh before the floods causeda great slump. Parts of Mavala gram panchayat like Ramnagar locality, the Durganagar and the land near the new Housing Board colony are also under the flood induced slackening of real estate business.

No takers

The plots here had sold for an average price of Rs.2 lakhs. “Suddenly we find there are no takers for the prime land. We invested so much money in converting the land use and developing the area. Prospective buyers are not interested to purchase the plots even at half the price,” pointed out C. Bhargav, a realtor.

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