More than a year after the bifurcation, the realty market in both Andhra Pradesh and Telangana has significantly improved and cash registers of the Stamps and Registration Departments have started ringing in both the States.
If for Telangana where the real estate market remained stagnant due to years of political uncertainty following agitation for a separate State, things are looking up after the formation of Telangana and Brand Hyderabad continues to be a draw.
Paradoxically, Andhra Pradesh though bogged down by a plethora of problems – financial crunch, no capital of its own, lack of infrastructure and industries to match with common capital of Hyderabad — an owner’s pride and neighbour’s envy– has done exceedingly well in the number of property and land registrations, way ahead of the real estate market in Telangana.
It posted a revenue of Rs. 1,239.29 crore, exceeding the target of Rs.1,172 crore up to July 2015, as against Rs.1,008.45 crore garnered by Telangana from the Registration Department though in geographical as well as urban towns wise Andhra is way ahead.
Andhra Pradesh though overall suffered a revenue shortfall of about Rs. 3,000 crore, the revenue from the Stamps and Registration department in the first quarter of 2015-16 saw a substantial jump registering over 105 per cent achievement than the target compared to that of last year.
However in Telangana, barring Ranga Reddy (Rs. 480 crore) and Hyderabad (Rs. 215 crore) districts which accounted for 21 per cent and 48 per cent respectively and together for 70 per cent total registration revenue of the State, remaining eight districts could only post nominal revenue.
Andhra Pradesh, on the other hand, has all its districts doing well in earning revenue from registrations. Visakhapatnam district, touted to become the next IT hub, turned out to be the top grosser with Rs. 204 crore (17 per cent of total State registration revenue) , Krishna district Rs. 171.6 crore (14 per cent) and Guntur, the district boasting the new capital region, at third place with Rs. 161 crore, East Godavari- Rs. 150 crore West Godvari – Rs.104 crore.
Though the State banked heavily on Krishna and Guntur which are close to the capital region of Amaravati and set ambitious targets for them, they could not surpass the target but the surprise came from the North Andhra districts of Srikakulam and Vizianagaram — where a Greenfield international airport is proposed near Bhogapuram — as they posted revenue much beyond the expectations.
The other districts — Nellore, Prakasam and four Rayalaseema districts — Chittoor, Kadapa, Anantapur and Kurnool — either achieved the target or exceeded it till July.
Nothing short of frenzy is being witnessed in Andhra based on strong sentiment for growth and development and people are keen to invest in the highly speculative market across the State. With the State government earmarking different industrial and infrastructure projects for different districts with anticipated industrial concessions and special package from the Centre, the scenario is reminiscent of the boom phase which Hyderabad went through during 2005 to 2007 till global recession put a halt to it, say official sources in both the States.
Ironically while Hyderabad is a boon for Telangana, it is also an inhibiting factor for growth of the other districts. With so much land available in Hyderabad and neighbourhood, investors do not look beyond vicinity of Hyderabad which has futuristic amenities to set up their units.
