State to bide time till realty sector picks up

Despite the lands in Raidurg fetching an all-time record price of `42.6 crore per acre, the TS government is not in a hurry to auction more land parcels and rake in the moolah.

The government has identified 400 acres in the districts for auction to raise revenues.

The real estate sector saw a boom in the districts with the creation of new districts on Dasara day, October 11 last year. To cash in on the boom, the government had in November 2016 planned auction of lands in and around new district headquarters.

However, the boom could not last for even a month due to the Centre’s demonetisation announcement on November 8. This led to the government putting off the auction of lands.

After waiting for nearly seven months, the government put six land parcels admeasuring 15 acres in Serilingampally mandal, which is part of IT corridor for auction on May 18.

However, only two land parcels in Raidurg over an extent of about 5.5 acres found buyers, while the remaining four parcels remain unsold. The government is treading a cautious path on account of this on future auctions.

The government identified 400 acres in Hyderabad, Ranga Reddy, Vikarabad, Yadadri and Medchal districts for the next round of auction.

“Activity in stamps and registrations department in a majority of the districts is yet to reach the high witnessed prior to demonetisation. This is a clear indication that the realty sector has not picked up so far. This is primarily because of cash shortage and restrictions on cash transactions. The situation may improve by October-November this year, when fresh round of auctions could be held,” revenue officials told the government.

The government wants to wait till October-November to hold the next round of auction, since revenue officials are of the view that the real estate sector is yet to pick up in the districts after the slump due to demonetisation.