Land is the new gold in Sangareddy

SANGAREDDY: When we deposit Rs 6 lakh into a fixed deposit with a bank, the money is doubled in six years. But for B Yadagiri, an investment of Rs 6 lakh multiplied tenfold to Rs 60 lakh in one year. Yadagiri, a small-time realtor in Sangareddy, located within 60km of the State capital, is not alone in investing his money in real estate rather than depending on banks.

“Small business owners and government employees are investing in lands rather than depositing money into the banks,” said KV Ramanareddy, registrar of erstwhile Medak district. Hyderabad’s huge investments are unaffordable to this largely middle-class section so they opt to invest in Rangareddy, Medchal and Sangareddy districts instead, he added. Bank officials told Express that people hesitated in depositing their money with the banks ever since demonetisation which was followed by rumours of the central government collecting income tax.

Connected to the Capital via the Outer Ring Road, these districts are seeing a realty boom alongside the eight-lane expressway circling the Hyderabad city. Exactly five years ago, land prices in Ramachandrapuram, Tellapur, Sangareddy and Jinnaram area were between Rs 1 crore and Rs 2 crore per acre. But today you could not get the same piece of land unless you are ready to shell out anywhere between Rs 4 crore to Rs 10 crore per acre.

The number show how interested the public is when it comes to real estate investments in the region.
Of the districts in erstwhile Medak, Rangareddy tops the list of highest number of land sales followed by Medchal and Sangareddy -- which has already crossed the target collections at sub-registrar’s office, as assigned to it by the State government. Sangareddy was given a target of Rs 16,278.95 lakh for the financial year of 2018-19. With two months left before the year ends, its sub-registrar office has already collected Rs 28,214.99 lakh.

The month of January saw as many as 8,249 registrations in Sangareddy’s sub-registrar office, said the erstwhile Medak’s registrar KV Ramanareddy.

It can be said that the government is getting second highest revenue from the registration department after the excise department. He said government has given a target of Rs 255,84 lakh for 2018-19 for united Medak district and they have already collected Rs 40,241.14 lakh.

Md. Nizamuddin, a government employee from Patancheru area said if an apartment in Kollur and Tellapur areas near ring road cost up to Rs 50 lakhs to Rs 1 crore. “Middle-class people cannot afford 100 sq-yard-plot for a house. Patancheru is an industrial area and so the land prices are high but the land prices surrounding Sangareddy too have increased,” he observed.

M Madhu from Sangareddy said that he had purchased 150 sq. yard near district collectorate for Rs 13,000 per sq. yard four years ago. Today the rates are Rs 28,000 to Rs 30,000 per sq. yard.

Oustees’ favourite investment?

P Venkatram Reddy from Bailampur, said oustees who have lost their lands to Mallanna Sagar and Konda Pochamma Reservoir were using the compensation money to purchase lands in Gajwel and Medchal causing land prices to shoot up. New ventures are coming up in the villages of Sangareddy as well where realtors are selling plots for Rs 10,000 to Rs 20,000 per sq. yard -- prices that are much less compared to town areas.