Click to play videoHyderabad: The Nizam's city is growing and growing fast and it's the dream of every resident to own a house in the bustling metropolis. Yet, sky-high property prices mean that for many, the dream remains unfulfilled.
However, there is finally some good news. The state government's decision to scrap the Urban Land Ceiling Act is expected to bring down real estate prices.
Jones Lang La Salle Meghraj, Regional Director, George Johnson, "We expect prices to stabilise in the immediate future but in the coming months, say six months from now, land prices will come down."
And it's not just Hyderabad. A whopping 28,0000 acres of land will be freed up across cities in Andhra Pradesh. These lands, stuck in litigation for long, will now be up for grabs.
The developers, the aam aadmi, and also the government expect to reap the the benefits.
Andhra Pradesh Revenue Minister, Dharmana Prasada Rao says, "The whole world is moving towards liberalisation. So we have repealed this ULC Act to speed up economic growth.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 per cent."
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 per cent increase in realty prices.
Land in Hyderabad currently costs between Rs 40 lakh to Rs 55 crore an acre. So even a small reduction in land prices will be a blessing for residents.
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