Andhra Realtors to Give 5% Land to Government from New Layouts
The state government has decided to take 5% of land or its equivalent value from the newly developed layouts. The government’s decision has alarmed the realty sector and property buyers. The realtors fear that the decision would eat into their margins which have already become thin due to Covid-19 and would make their business unviable. On the other hand, aspiring plot buyers fear that the land prices are likely to go up as realtors would pass on the burden to the consumer. The state government had issued a GO recently stating that 5% of the land in newly developed layouts should be given to the local body. If the land cannot be given in the same layout, they can give same extent of land within three kilometres area of the layout. The third option would be to pay money equivalent to the base price of the land in the respective areas. The realty sector in Andhra Pradesh has been struggling with poor demand for the last three years with uncertainty over the capital city. The prices hit new lows in Vijayawada, Guntur and other major cities with uncertainty over the capital coupled with pandemic induced stress. The latest decision by the state government would put more stress on the demand side, fear realtors.
Tags : ALLIED Andhra Pradesh Land Plot State Government Andhra Realtors New Layouts