The announcement of new districts in Andhra Pradesh gave an impetus to the Real Estate business. The transactions were stopped as soon the new districts were announced as the sellers wanted to understand the revised prices.
The prices of lands surrounding the district headquarters are increased within a couple of days. The registrations are not happening with the prices negotiated before the announcement of new districts. Now almost every seller is inviting the buyers for renegotiation.
The prices in Rayalaseema have increased almost five times now. Till a few days back, an acre of land that was sold at Rs 20 lakhs is now being offered Rs 1 Cr by the buyers. The agricultural lands close to the main roads are even quoted more than Rs 1 Cr per acre.
All these days, only the lands on either side of the national highway were quoted Rs 1 Cr per acre in Rayalaseema region. But now that price has become the basic price in the remote interiors of the area. The prime land prices are going up to 5-6 times depending on the location.
This sensitive index in Real Estate business gives a hint that the announcement of new districts is a progressive move by the government.