HYDERABAD: Despite Covid-19 playing spoilsport with the economy, the prices of both agriculture and non-agriculture lands have been rising steadily not just in Hyderabad and its surrounding areas, but also in districts.
One of the major factors in lands becoming expensive is that the possession of land itself is enough to get the subsidy of Rs 10,000 per acre for khariff and rabi, regardless of whether one raises crops in one’s lands or not, under the state government’s Rythu Bandhu scheme.
The other factor that is pushing up the land prices is that the people want to convert cash into another land asset as they seem to have realised that land would get better returns than banks or other asset classes.
With the Kaleshwaram Lift Irrigation Scheme (KLIS) slowly turning the rural landscape green and industrial sector all set to register growth, lands are now akin to gold in northern Telangana.
For instance, in the nearby district of erstwhile Medak, the prices have skyrocketed mainly due to its proximity to Hyderabad and the location of NIMZ in Zaheerabad. Investors are also preferring Sangareddy as it is close to Hyderabad.
Lands close to the Hyderabad-Mumbai National highway have become expensive, with the realtors quoting Rs 50 lakh and more per acre. The same lands, not very long ago, did not have takers even for Rs 8 lakh per acre.
In Siddipet, land has turned into gold after the KLIS began delivering water for irrigation. Another factor contributing to rise in prices is the mushrooming industries, which made Siddipet a hub of economic activity. Now, the land prices are anywhere between Rs 20 lakh to Rs 1 crore depending on their location in the district.
Improved irrigation, infra facilities leading to rise in land prices
The prices of agricultural and non-agricultural lands across the State are going up day by day thanks mainly to the implementation of Kaleshwaram Lift Irrigation Scheme (KLIS) and steady growth of industrial sector.In Nizamabad and Kamareddy, increasing assured irrigation water facilities, government buildings like integrated collectors’ office in Kamareddy and growing urbanisation are pushing up the land prices. An increase in rail and road connectivity is another reason why people are willing to bet on lands.
In Nizamabad town, the minimum price is Rs 10,000 per square yard. After the formation of the Kamareddy district, land rates have shot up in these parts which were, by and large, were ignored by investors in the past. In the Nizamabad district, the lowest quote for an acre of land is about Rs 20 lakh and the upper band is about Rs 1.5 crore. For instance, lands in Pothangal in Kotagiri Mandal cost about Rs 20 lakh per acre.
Double rates in Karimnagar
In Karimnagar district, within a short period of time, land rates began increasing and even doubled in Karimnagar town as in the area near Apollo Hospital abutting Mancherial Road where the price is Rs 1 crore for one gunta (121 sq yards) of non-agricultural land.
Jagtiyal, a town nobody bothered to invest not long ago, is very hot now with one gunta of land selling at Rs 30 lakh and on the outskirts Rs 15 lakh. Similarly, agricultural lands in erstwhile Karimnagar are in great demand. The minimum price for one acre is Rs 25 lakh. Several realtors are purchasing them and developing ventures. Just 300 metres away from Rajiv Rahadari, one acre of agricultural land costs Rs 45 lakh.
In Jangaon district, close to NH 163 from district headquarters to Station Ghanpur, the price of non-agriculture land is Rs 1.50 to Rs 2 crore per acre and agriculture land is Rs 1 crore. Three years ago, the same non-agricultural land used to cost Rs 60 lakh to Rs 80 lakh per acre and agricultural land, Rs 60 lakh to Rs 70 lakh. In the surrounding villages, in a five- to eight-km radius from NH-163, the agricultural land now costs Rs 55 lakh to Rs 60 lakh. Three years ago, agricultural land used to cost Rs 25 lakh to Rs 30 lakh.
Proximity to highway jacks up prices
As Hyderabad-Warangal Highway holds out potential, realtors are showing more interest in lands close to the highway. They are developing ventures which see a lot of traction with buyers.In Warangal city outskirts to Wardhannapet Mandal limit on Khammam Highway, the cost of the non-agricultural land is Rs 2 crore to Rs 2.5 crore per acre on Khammam Highway. Three years ago non-agricultural land used to cost Rs 90 lakh to Rs 1.20 crore. The reason for the hike in the price of lands is because in this stretch an airport is expected to come up at Mamnoor, besides the location of engineering colleges.
The Outer Ring Road (ORR) stretch from Gopalpur to Karunapuram village limits in Warangal, agricultural lands have been turned into non-agricultural land and they are being sold at Rs 3 crore to Rs 4 crore per acre. Three years ago, agricultural land was sold at Rs 1 .50 crore to Rs 2 crore per acre. The IT-Hub, Madikonda Industrial sectors and Telangana State Industrial Infrastructure Corporation (TSIIC) are located on these stretches.
After the formation of new districts, revenue divisions and mandals, the real estate sector picked up and the open plots prices more than doubled. After the implementation of Rythu Bandhu, the agriculture land prices have also doubled in rural areas of Jainath, Tamsi, Talamadugu, Dilawarpur, Sarangapoor, Jaipur, Hazipur, Luxettipet and Jannaram mandals. Except for Kumrambheem-Asifabad, the remaining three districts of Adilabad, Nirmal, Mancherial in the erstwhile undivided Adilabad district are witnessing a steady increase in the prices of lands. The price have gone up to Rs 10 lakh to Rs 15 lakh in Jainath in Jainath, Tamsi and Talmadugu mandals.
Ryots earn big bucks
In the southern most district of Khammam, unless one is ready to shell out a minimum of Rs 20 lakh it is difficult to buy an acre of land in places like Sattupalli, Aswaraopet and Dammapet. Three years ago, an acre of land used to cost Rs 10 lakh but the prices have shot up because of the focus on low investment and high yielding oil palm plantations. The local farmers are earning around Rs 1 lakh per acre annually through oil palm cultivation. Meanwhile, non-agricultural lands surrounding Khammam town are fetching Rs 1 crore to Rs 3 crore per acre.
In Bhadradri-Kothagudem district, agriculture land prices are going up as farmers are investing R & R money they got for surrendering their lands for Polavaram project. In these part, one acre of land now costs Rs 7 lakh to Rs 12 lakh and non-agriculture land Rs 30 lakh to Rs 2 crore per acre.
(With inputs from Sangareddy, Karimangar, Adilabad, Warangal, Nizamabad and Khammam)
KUMRAMBHEEM-ASIFABAD DISTRICT AN ANOMALY
Except for Kumrambheem-Asifabad, the remaining three districts of Adilabad, Nirmal, Mancherial in the undivided Adilabad district are witnessing a steady increase in the prices of lands. The price have gone up to `15 lakh in Jainath in Jainath, Tamsi and Talmadugu mandals