Demand rising on outskirts of Tirupati
The land prices that were around Rs 750 per sq yd in 2003-04 in areas like Padmavathipuram has now crossed Rs 25,000 per sq yd and it is Rs 50,000 per ...
The land prices that were around Rs 750 per sq yd in 2003-04 in areas like Padmavathipuram has now crossed Rs 25,000 per sq yd and it is Rs 50,000 per sq yd in Tirupati in 2013.A Viswanath N Tirupati: Purchase of land as an investment in and around the temple town Tirupati is a best option to those looking for better returns. Even though the land selling and buying transactions are very low in the last two months in Tirupati, but it is always high on par with many cities throughout the year. The prevailing peace and calm throughout the year and the growing number of pilgrims to the richest temple in the world are some of the factors for the demand in the property over there. There is more demand witnessed in the outskirt areas like Damineedu, Padmavathipuram, Renigunta, Airport, Gajulamandyam and other suburban areas. The upgradation of existing airport to international standards is also a factor for increase in land prices. The land prices that were around Rs 750 per sq yd in 2003-04 in areas like Padmavathipuram has now crossed Rs 25,000 per sq yd and it is Rs 50,000 per sq yd in Tirupati in 2013. The least selling price in a constructed apartment is around Rs 1,200 per sq ft in suburban areas and Rs 2,500 per sq ft within city. The average price for lands near Airport and Renigunta is around Rs 40,000 per sq yd and little less in Chandragiri area. The real estate trend in Tirupati shows that there are more transactions for plots rather than apartments of flats. One of the main reasons for this trend is that investment in plots has always been giving better returns. Majority of the transactions are from the upper middle class, who find the property dealings as better investment option and it is also an option to convert black money into white. Most of the real estate investors purchase lands in Tirupati outskirt areas at cheaper prices and sell them at higher prices after getting approvals from TUDA (Tirupati Urban Development Area) and other revenue departments. The unprecedented rise in prices in real estate since 2005, especially from YSR's regime has now almost become unreachable to the middle class families. The formation of syndicate among realtors is also said to be one of the main reasons for this. The salaried employees are looking for approved plots or projects as they don't face problems in availing home loans and there is more demand to approved layouts in this sector, said Sanath Kumar, honorary president, Credai, Tirupati Chapter. He pointed out that builders and promoters are more interested in making projects for the high networth individuals and salaried employees because of hard cash transactions and easy finance facilities, rather than middle class income group, he pointed. The bulk investors are from outside areas like Chennai, Bangalore and other cities who have ventured in developing big projects and townships.