The state government’s proposal to increase the land value is receiving mixed response from the public as well as the realtors. The current variation between government value and open market rate of both the lands and house-sites in and around Vijayawada city is quite significant.
As per the data available with the officials of the registration department, in some areas like Suryaraopet and Gandhi Nagar, the government value is between `.30,000 and `.40,000 per square yard, depending on the commercial value, street width and most importantly the location.
As per the government value the land price per square yard at the arterial Mahatma Gandhi road (Bandar road) is `70,000 per sq.yard whereas the market price is more than `90,000.
The least government value in the city is at Ramalingeswara Nagar Katta area, which located on the banks of river Krishna, adjacent to Krishnalanka where the government value of the land per square yard is only Rs.8,000. The prices vary from R.8,000 to R.70,000 per sq yard as per the government value in the city. Moreover, the government has not revised the land prices since August 2010.
District registrar, G Balakrishna said the government has not revised the land value for the last two years but the land transactions particularly the sale deeds declined the last financial year.
With skyrocketing land values, there is clear possibility of further decrease in the land transactions in and around city which is affecting the government revenue.
Many middle class and above middle class families in the city are struggling to purchase a house site in and around the city due to variation in prices of the land quoted by the government value and by the market.
In some cases, the market value is three to four times higher than the government value. Government banks sanction loans for purchase of house site only basing on the government price of the land employees and others depend on bank loans to purchase the flats or house sites.
If the government increases the land value the employees can get more amount of loan to purchase the site.
In the areas like Kaleswar Rao market, the government price of the land is Rs 30,000 per square yard. But, the value in open market is more than Rs 60,000 per square yard as it is one of the biggest commercial centres in coastal Andhra. Realtors are asking the government to revise the land values by taking the value of land in the open market into consideration which will also help the government to increase its revenue. In cities like Vijayawada, there is huge demand for open land within the city as the public are reluctant move to the outskirts.