Property Plus
Coimbatore
Urban Land Ceiling Act appears to be a case of ‘Better late than never’
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Of all the good tidings the repeal brings, the best is slide in land prices, writes T. Lalith Singh
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Photo: K.R. Deepak
Crowded: A view of the apartment complexes abutting the Ramakrishna Beach in Visakhapatnam. —
A witness to the real estate boom that gobbled up available land, stretched prices beyond imaginable limits and forced many go to suburbs and beyond, Hyderabad along with other cities in the State could look forward to a change in perspective towards property issues in the coming days.
The State government last week has come out with the much-awaited and debated decision on repeal of the Urban Land Ceiling Act (ULCA).
Builders hope the move will usher in some glad tidings for those left out in the race to acquire a slice of property in the wake of the boom that gripped city in the last three years.
The proposal is expected to release large tracts of land in urban areas and at the same time help the middle class and the poorer sections to acquire property.
The Government while repealing the Act has announced that an extent of 28,752 acres of urban land in the cities of Hyderabad, Visakhapatnam, Vijayawada and other cities that was under the ULCA purview till now, would get released.
A scheme will also regularise the occupation of surplus lands surrendered and also other Government lands.
Another major factor of the resolution is the decision to regularise unassigned land to the extent of 80 sq. yards free of cost, when the party happens to be from the poorer sections. Through the repeal, the State happens to be among the last to go for it, the Government hopes to make available surplus land for development and as a consequence bring down prices This obviously will lead to more economic activity.
The development has brought in some cheer for developers and builders particularly in the city who describe the step as long overdue. The middle class which was left cursing itself for having missed the bus during the recent boom will be able to look forward to acquire property of some size in the wake of the repeal, they say.
“It is a good move with long-term prospective gains. The repeal will ensure that more land is available for development and builders can also look forward to offering better housing at more affordable cost,” says K. Pratap, Managing Director, Golden Gate Properties.
So far, the city has been a witness to smaller projects and revoking the Act is expected to boost the concept of bigger projects. Builders say they will be in a position to grow out of constraints to offer better amenities to end-users. And the best part of the entire deal is expected to be a consequent drop in the property pricing. “Since land is to be released, the core areas in the city will start sliding in terms of pricing and this will help more to aspire for a property,” says Mr. Pratap.
Since all other States have already repealed the ULCA, there was no logic in Andhra Pradesh clinging to it any further.
“We cannot stand apart as an island when the city is experiencing such development,” quips a builder.
The Chairman of Andhra Pradesh Builders Association K. Ravinder Reddy describes the decision on ULCA repeal as coming at an appropriate time.
Middle class families and first-time buyers will find their aspirations to own a home as more affordable, he feels.
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Property Plus
Coimbatore
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