Capital: ryots call the shots in realty rush

For a change speculative realtors at the receiving end. Worse aspect is, about 80 per cent of these advances were given without a proper agreement according to Greater Vijayawada Builders' Association chairperson Gadde Rajaling.

Lands developed into residential plots at Nunna near Vijayawada.— Photo: V. Raju

For a change, farmers around the proposed capital region in Andhra Pradesh are calling shots in the realty rush. In quite an uncommon scenario, the speculative realtors are at the receiving end owing to changed dynamics in the non-core area of the capital region.

The 54-year old farmer Satyanarayana (name changed) is a happy man with a hefty Rs. 4 crore advance received from realtors a couple of months ago for his two acre land which was rated Rs. 7 crore each near Nunna in Krishna district. In the changed scenario where land prices dipped to less than Rs. 3 crore in the area, realtors are at the mercy of farmers.

Land prices across the Vijayawada, Guntur, Tenali and Mangalagiri (VGTM) region sky rocketed following government’s announcement on a world class capital city out there. The cost of land had appreciated multi-fold giving rise to illogical speculation. With the government’s recent announcement on specific location of capital towards Mangalagiri and Guntur in the VGTM region, the abutting areas, such as Agiripalli, Gannavaram, Hanuman Junction, Nunna etc, which were initially expected to house key facilities of capital infrastructure, have seen the worst dip in pricing. “Expecting further hike, we paid huge advance to farmers. The latest correction is a doom for us as we can neither go for registration nor lose the money paid as advance,” said K.S. Narayana, real estate businessman, who has considerable stakes in the speculative market.

Narayana is not alone as there are over 300 such businessmen at Nunna alone whose money is locked in the form of advances according to a real estate player in Vijayawada. Meanwhile, there emerged a mediator class which is negotiating with farmers and realtors for a mutually beneficial share of advance money, of course for a cut.

Worse aspect is, about 80 per cent of these advances were given without a proper agreement according to Greater Vijayawada Builders' Association chairperson Gadde Rajaling. “They gave advances on the basis of some scribbling on a slip of a white paper which doesn’t stand any legality. It’s not going to come back. It’s lost and no mediation would work as most farmers too have spent the money on re-investment or luxuries,” Mr. Rajaling said.