After making a windfall in the last two years, the revenue from the Registration and Stamps Department in Guntur district has witnessed a steep fall in the financial year 2016-17.
Post bifurcation, the districts of Guntur and Krishna, saw a surge in land registration. The total earnings of the department was less than ₹500 crore before the year 2013-2014 but after bifurcation, the earnings doubled.
But, post demonetisation, the slump in revenues was more predominant. With investors wary of Income Tax scanners while making heavy investments, the slump is beginning to show its effect. The State government was forced to reduce the target by 20% for 2017-18 after the revenues fell to ₹582.36 crore from Guntur district and ₹637 crore for Krishna district.
“The revenues from the department have witnessed a steep fall though we are confident of covering it up. Now that we have employees moving into the cities of Guntur and Vijayawada, we are sure to witness a steady increase again,” District Registrar P. Ramakrishna told The Hindu on Saturday.
Demonetisation
Demonetisation has also affected land transactions in and around Guntur. Builders, who have pinned their hopes on a surge in registration, now say that it would take at least a couple of years for shrugging it off.
“Except near the Amaravati Road, rates of apartments have fallen in most areas. The investor sentiment is at an all-time low. The GST is also expected to severely affect the real estate sector,” says A. Siva Reddy, advisor, Confederation of Real Estate Developers' Associations of India.
The saving grace remains the strong demand for residential flats. “We are getting positive response from buyers preferring the peaceful environs in residential areas like Syamala Nagar. Gated community projects with club house, swimming pool are being preferred by customers,” says builder Srinivas Chebrolu.
