After witnessing a bullish market for the last one year, the real estate business in Guntur district has registered a slow-down.
Revenue realisations from the Stamps and Registrations Department during the last three months have shown a declining trend, indicative of the lull in the sector.
The Stamps and Registrations Department has been given an ambitious revenue target of Rs. 371.99 crore for the 2015-16 financial year, but given the transaction at most of the sub-registrar offices at present, it could well fall short of the target.
The present situation is in a stark contrast when compared to that of last year. The anticipation of the State capital in the Guntur-Vijayawada stretch has triggered a spate of registrations as the department could easily surpass the target of Rs.281.48 crore. The sub-registrar offices at Mangalagiri, Tadikonda, Guntur and Nallapadu bustled with activity.
Buoyed by the prospects of a high growth rate, the annual target was fixed for the 2015-16 at Rs. 371.99 crore and the proportionate target up to the May end was Rs. 26.04 crore, but the actual revenue collected was Rs. 20.49 crore, 78.71 per cent when compared to that of last year’s 100.4 per cent.
“Land prices have shot up in and around the Capital region manifold owing to the wild speculation. Buyers who have bought land at a fancy price are now in a fix as there are no takers. People have invested close to Rs.500 crore, it is blocked in the Capital region alone, as a result investments in other sectors have dried up which could have a negative impact on growth,’’ said a real estate analyst.
Guntur district has eight sub registration offices, and except for Mangalagiri and Tadikonda, the growth rates up to the end of May have been negative.
The staggering growth rates at Tadikonda and Mangalagiri till the end of March (212 per cent, 128.82 per cent respectively), has almost come down to 121 per cent and 97.96 per cent respectively.
Revenue realisations in the remaining six sub-registrar offices, Chebrole, Prathipadu, Tadikonda, Guntur, Nallapadu, Pedakakani and Koritepadu have been negative between March and May.
(Reporting by
P. Samuel Jonathan)
