Aug 26, 2019
Agri Land Rush : 5 to 50-Fold Price Rise In Telangana
During FY 18–19, Telangana has crossed Rs 15000 crore Registered value of the Agriculture land transactions with 3.2 lakh acres. It’s only a Govt value and the Market value is some where around 1 lakh crore ( 5 to 10 times of Registered value). The present land cost is 1 crore to 2 crore within 50 KM radius of Hyderabad&Ranga Reddy city limits and 50 to 100 lakhs within 100 KM radius and 10 to 50 lakhs within 200 KM radius of Hyderabad & Ranga Reddy District. Five years back, the cost of the land is some where between 3 to 15 lakhs.
With in the ORR, investors/builders are building farm houses, villas and 5 to 10 storey apartment blocks on what used to be Agri land. Elsewhere, buyers are converting agricultural land into commercial use. Or, they are just holding on to it, waiting for its value to appreciate to offload it in the market.
Rythu Bandu scheme in Telangana is also one of the reason to boosted the land prices in deep rural places in Warangal, Karim Nagar, Adilabad and Nizambad. Govt is supporting around Rs 10,000 per acre per year on this scheme, which supports the real farmers to boost agriculture activity and also prospectus of Kaleshwaram Dam cause for land price hikes.
Agri land has even outperformed investments in Hyderabad city property. Says Kamesh mupparaju, CEO of SFarmsIndia- An Agri Land Marketplace : “A Rs 5 crore investment in a Banjara Hills flat cost turned to Rs 6 crore in five years.” In contrast, an Agri Land in SangaReddy turned to Rs 50 crores in five years, which means returns are exponential.
Farmers are facing reduced affordability of agricultural land in their own villages, especially in peri-urban areas, which tend to have a high number of buyers and sellers. For example, a farmer have 10 acre of land in Ranga Reddy District, he sold out that for Rs 7 crores. With this he built a luxurious house with 1 crore and spend 1 crore for his son/daughter marriage. The remaining amount he again buy the agriculture land of 20 acres at 25 lakhs per acres far from the present location. Due to this, the money is spinning and the land rush move to even deep rural places.
The cost of 200 sq yard plot is too expensive to buy in Hyderabad city hence retired urbanites, white collared software professional and HNI’s are preferred to buy agriculture lands of 1 acre or 2 acre in the out skirts with the same cost of 200 Sq yards. This is also one of the driving factors for price rise and land rush.
Due to above all factors, prices may not corrected in the near future and this trend will be continue till the liquidity ends.
