(This article is published in collaboration with avenue.in Avenue is a premier digital realtors based out of Amaravati, providing end to end property solutions)
The Andhra Pradesh state government will soon start implementing the Land Pooling Scheme (LPS) in a phased manner. According to the scheme, the government will handover nearly 10,000 acres of developed plots to landowners. It initially collected 33,000 acres under the scheme.
This allotment of developed plots will eventually end up deciding the future of the realty as well as infrastructure sector not only in Vijayawada and Guntur, but also send signals at other regions in Andhra Pradesh.
Landowners are waiting for the allotment of developed lands to begin. Various construction plans as well as sale of shares in a plot have already been drawn up in anticipation of the allotment.
Some owners are even considering selling their plots if the prices end up being very attractive. Numerous NRIs are viewing these developed plots as a secure investment and are hoping to get in on the action very soon by buying them.
The Vijayawada Builders Association also confirmed that such construction and acquisition will eventually have a large influence on how the infrastructure and realty sectors in the state will perform over the next few years.
The allotment itself is expected to take place in a village-wise phased manner. This is reflected in the change in prices of Tier 1,2 and 3 villages during the month of May.
For example, the price of land in Tier 1 villages like Uddandarayunipalem (from 2.42 Cr to 2.56 Cr per acre), Lingayapalem (from 2.30 Cr to 2.45 Cr) and Nelapadu (from 1.45 Cr to 1.55 Cr) has gone up in a month’s time ( May 1st to May 31st).
Such an increase has only raised expectations as very few owners are willing to sell right now in the hope that they will receive a bigger windfall in the future.
Meanwhile, the price in Tier 2 and 3 villages like Thullur (from 1.45 Cr to 1.35Cr) Nowlur (from 1.70 Cr to 1.59 Cr) and Undavalli (from 2.20 Cr to 1.96 Cr) has gone down over the same time period.
[table “39” not found /]