VIJAYAWADA: Real estate business in the state is slowly booming. The revenue growth rate of 10.18 per cent in Stamps and Registrations Department stands as evidence of the growing business. While the target is set at Rs 4,000 crore towards the 2017-2018 fiscal year, by the third quarter end it was set at Rs 2,900 crore, and the department had earned Rs 3,081 crore which is 106 per cent achievement.
Except in Vizianagaram, Visakhapatnam, and East Godavari, remaining parts of the state are witnessing the business growth.
Quite interestingly these land transactions are more in Rayalaseema, while Kadapa recorded 24.21 per cent, Anantapur 23.67 per cent.
Director and inspector general of Stamps and Registrations Mr P. Venkatrami Reddy shared that real estate has been picking up really well overcoming the devastating effects of demonetisation and GST. He further expressed hope of earning even more revenue by the end of the last quarter with the target being fixed at Rs 1,100 crore.
More than three and a half years after the bifurcation, the realty market in Andhra Pradesh has significantly improved and cash registers of the Stamps and Registrations Department have started ringing. The state which started with financial crunches and no capital of its own and lack of infrastructure and industries had witnessed a sharp downfall in the realty business.
The Stamps and Registrations Department earned Rs 1,200 crore during 2014-2015, while in 2015-2016 it earned Rs 3,000 crore. But with the induction of GST and demonetisation there was a downfall in the business but now the real estate market is on the upswing once again. To the astonishment of the Stamps and Registrations Department officials, Rayalaseema district is recording significant growth in earnings.
Following Kadapa, Anantapur had registered 23.61 per cent of earnings with Rs 169 crore by the third quarter end while the target is set at Rs 138 crore which depicts 122 per cent of achievement.
KIA Motors establishment, proposal of IT Park and other infra development activities of land transactions had boomed which in turn increased the revenue to the state. Likewise in Chittoor district, there is 15.4 per cent growth with Rs 191 crore revenue against the target of '166 crore which is 115 per cent achievement.
The growth had become possible with the electronic manufacturing clusters establishment in Tirupati, and other infra developments across the district. Even Kurnool with 6.84 per cent growth earned '146 crore against the target of Rs 130 crore which is 112 per cent achievement.
Coming to coastal districts Srikakulam is on top with 22 per cent growth rate earning Rs 80 crore against '67 crore target set which is 120 percent achievement. This is followed by Krishna district with 20 per cent growth with the revenue of Rs 461 crore against the target of Rs 391 which is 115 per cent achievement. Guntur recorded a growth rate of 14.4 per cent, while Nellore recorded 7.58 per cent, Prakasam 8.23 per cent, and last but not the least West Godavari recorded 5.94 per cent.
Mr Venkatrami Reddy observed that the reason behind the low recorded transactions in Visakhapatnam and other areas might be due to unrealistic land values.
