Apartment rates are likely to go up by Rs 5 lakh in Ongole
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Ongole: The proposal of the government to hike land values is likely to increase apartment rates at least by Rs 5 lakh in the city. A double bedroom apartment that is being sold at Rs 30 lakh in Ongole city is now expected to touch Rs 35 lakh. The hike will depend on the area. It will undoubtedly be maximum in the posh areas and much less on the city's outskirts.
It may be mentioned that the government has decided to hike land values from August 1 and constituted committees to hike the land values. After division of the state, land rates increased in city and surrounding areas, which led to increase of land values and apartments rates.
A builder K. Siva Prasad said, “When land rate is increased, we will pass this burden to the apartment buyers. It is natural. Iron, cement, sand price and la-bour wages already hiked. It will lead to increase of apartments rates. The buyers have to bear this additional burden. A buyer has to invest Rs 10 to Rs 15 lakh from his pocket to purchase an apartment. The banks will sanction loan for the remaining amount.”
K. Rama Krishna, a realtor, says, “I purchased four acres of land near Ongole. Due to lack of demand, I have not registered the land. The buyer has to invest a minimum Rs 6 lakh to Rs 10 lakh to buy 150 square yards house site on the city outskirts. When the land value is increased, land rates will increase automatically. Due to high prices, buyers are not coming forward. If rates increase, demand is likely to reduce further.”
Ongole district registrar G.V. Muralikrishna says, “A committee constituted by the government will hike the land values on July 16. It will be announced on the website on July 17. We will receive objections and suggestions till July 25. The committee will finalise the rates on July 31. New rates will come into force from August 1, as per instructions of the government.”
At present registrations department is getting Rs 182 crore revenue through registrations in the district, its revenue will touch Rs 200 crore per year, if land values are increased.
( Source : deccan chronicle )
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