Srikakulam and Vizianagram districts are witnessing a fresh boom in the realty business, thanks to buyers who are keen to invest in their own regions instead of major cities like Visakhapatnam, Vijayawada, and Hyderabad, where land prices are going through the roof.
In the changed scenario, the AP Stamps and Registration Department is able to cross its own target even before closure of the financial year 2015-16.
The Registration Department, which faced rough weather in 2013 and 2014 following agitations over bifurcation of the State, is now in a jubilant mood as it has achieved the financial targets. The department, which has set for itself a target of Rs.148 crore for the current financial year, achieved Rs.158.41 crore by February 2015.
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The department could earn revenue of Rs.76.54 crore as against the target of Rs.58.96 crore, thanks to improvement in land transactions in Srikakulam district.
According to Deputy Inspector-General of Registration Department T. Saroja, the department was able to process 87,629 documents in 2015-16 as against 71,921 documents the previous year in both the districts.
Land transactions are going on at a brisk pace in the areas like Ranasthalam, Narasannapeta, and Palasa of Srikakulam district. Similarly, property registrations have gone up in places like Cheepurupalli and Kurupam of Vizianagaram district.
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Confederation of Real Estate Developers’ Association of India (CREDAI) says that the situation could have been more favourable had the government been able to minimise the tax burden on home buyers.
It is of the opinion that there would be more demand for apartments if sand and cement prices are controlled.
“Many builders have stopped to take up new ventures following steep hike in construction cost and labour charges. Cement industries have formed a cartel and fixed prices exorbitantly, preventing growth in the realty sector. Homes for all cannot be a reality if the government does not take steps to control cement companies. It should also reduce the registration charges,” says K. Srinivasa Rao, a member of CREDAI.