Anatapur: Realtors suffer losses as land prices plunge

ANANTAPUR: An acre of land on the roadside of NH 44, closer to KIA Motors India unit, cost around Rs 2 crore one year ago. A secondary-level leader of Telugu Desam, from a village closer to KIA unit in Penukonda mandal, had sold out his two acres of valuable land one-and-a-half years ago and turned out as a realtor by investing the entire money into the trade and also obtained a loan of Rs 1 crore in hand, towards business, following the real estate boom in surrounding 30 km radius of KIA motors and proposed ancillary units in Penukonda and CK Palli mandals.

The farmer turned realtor reportedly incurred heavy loss after he was unable to sell lands and also to pay interest toward debts and finally handed over 3.5 acres of land during a private settlement to the money lenders.

Not only the secondary-level leader, tens of hundreds of persons turned as realtors, incurred huge loss following sudden fall in land prices in Anantapur district.

Official sources reveal-ed that Rayalaseema, mostly Anantapur and Kadapa, had witnessed  real estate boom during the last two years as the registrations recorded significant growth while the coastal areas witnessed poor trading.

A senior official from the Registrations department recalled that the department earned Rs 1,200 crore during 2014-2015, while in 2015-2016, it earned Rs 3,000 crore as Rayalaseema districts recorded significant growth in earnings till 2018.

With increased hopes on establishment of new industries and institutions, land prices at proposed surrounding areas of the institutes had increased till 2018. But, the steep fall in the trade incurred huge loss not only for realtors, but a major loss for building owners who constructed multi-storeyed buildings, hoping to get attractive rents from the Koreans and other employees of KIA Motors.

As already Penukonda area turned out into a Korean Township, the people of Penukonda had initially gained maximum rents.

“But, the employees, including Koreans , have been opting villages closer to KIA unit and top-level officials have been residing in Bengaluru”, sources said and added that investors have been facing problems to repay EMIs and hand loans.

K. Sreenivasulu, whose family has 12 acres near Palasamudram, closer to NH-44 in Gorantla mandal in the district, hopes to get value for the lands due to KIA and other industries.

“We withdrew a proposal for selling of land because prices fell drastically than in 2018”, he said.

Only those who sold out lands at initial stages gained money and realtors incurred huge loss and were unable to settle issues.

For instance, a former TD minister had reportedly purchased more than 130 acres of land, closer to KIA unit, two years ago, but immediately gave it to a company and gained profit.

In fact, many realtors and land owners incurred huge loss after industries were not set up during previous years.

Lepakshi Knowledge Hub at Kodikonda, Brahmani Steels in Kadapa district, Science City in Kadiri area of Anantapur district were among the realtors who incurred heavy loss.