The sudden and unexpected fall in land prices in Krishna district, particularly around Vijayawada, has resulted in huge financial losses to realtors and buyers.
Ahead of the government’s declaration of Thullur and nearby mandals as the capital region, realtors and industrialists from cities like Rangareddy, Hyderabad and Bangalore had purchased large chunks of land at Gannavaram, Agiripalli, Nunna, Nuzvid, Hanuman Junction and Bapulapadu in the region expecting hefty return in future.
Employees of Singareni Collieries Company Limited (SCCL), Kothagudem Thermal Power Station, BHEL and other companies in Telangana, too, had purchased land hoping that its value would escalate once the contours of the new capital were announced.
However, their dreams were shattered after the government announced the new capital at Thullur in Guntur district.
But for farmers who made a fast buck by selling out land, majority of those who had entered into deals suffered losses even as apprehensions were being raised over the possibility of some of them resorting to extreme steps.
A group of SCCL employees who acquired four acres at Nuzvid by investing Rs. 10 crore suffered huge losses.
“We pooled up the amount by taking loans from private money lenders. Now, the prices of land have fallen below Rs. 1 crore,” said B. Yadagiri, an employee.
“The price of land near the main road had touched Rs. 3 crore an acre just four months ago, thanks to speculation on the location of the capital. It has now plunged to Rs. 1 crore, and there are no buyers,” said Venkateswara Rao, a farmer.
“Several layouts have come up on the outskirts of Vijayawada following reports that the capital would come up in the upland mandals of Krishna, and several farmers had sold out fertile land, as they got good money.
NRIs, realtors and business tycoons from Bangalore, Tamil Nadu, Karnataka and Mumbai, too, purchased land in mega deals,” a realtor said.
The price of land near the main road had touched Rs. 3 crore an acre just four months ago, thanks to speculation on the location of the capital. It has now plunged to Rs. 1 crore, and there are no buyers.
Venkateswara Rao,
Farmer
