Saturday, March 29, 2008

Andhra Pradesh real estate - Repeal of the Urban Land Ceiling Act - Will the middle benefit? Will the prices come down?

Ceiling repeal no big deal:

Some real estate agents feel that the prices will stay where they are because those sitting on vacant land now freed following the repeal of the Urban Land Ceiling Act will not be in a tearing hurry to sell. Only those in dire need might do so, but their numbers are minuscule, says Anwar Pasha of Silicon Properties.


ULCA repeal to check land prices:

The repeal of the Urban Land Ceiling Act (ULCA) is likely to check the spiralling land prices. With more land becoming available to the market, the demand-supply situation is expected to improve significantly thereby indicating stability in property prices if not bring them down immediately, analysts feel.

In the city market alone, it is expected that about 20,000 acres would become available for realtors and builders.
-The Times of India

Realty prices may go down in AP:

“We expect prices to stabilise in the immediate future. But in the coming months, say six months from now, land prices will come down,” said George Johnson, Regional Director, Jones Lang La Salle Meghraj.

"The whole world is moving towards liberalization. So, we have repealed this ULC Act to speed up economic growth. In fact, McKinsey has said that litigation-free land can boost economy growth rate by 1.3%," said Dharmana Prasada Rao, Revenue Minister, Andhra Pradesh.

But concerns remain. An earlier decision to free up the Floor Space Index in Hyderabad was expected to bring down property prices. Instead, stringent conditions attached to the new rules, fuelled a 50% increase in realty prices. Land in Hyderabad currently costs between Rs 40 lakh to a whopping Rs 55 crore an acre. So, even a small reduction in land prices will be a blessing for residents.
Moneycontrol India

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