The Hyderabad Urban Development Authority, HUDA, has a new source of income- land auctions. Experts say this is pushing property prices up around the city. CNBC-TV18 reports.

Land prices around the proposed outer ring road project in Hyderabad are sky rocketing, fuelled by auctions conducted by HUDA. The authority has promised world class infrastructure in the area within a year and has auctioned the land chosen for development at thrice its original value.

Experts say that while these localities will be the new hotspots for residential development, auctions have caused land prices to spiral unhealthily all around the city. But Huda has its reasons.

Jayesh Ranjan, VC of HUDA says, “We link the land with infrastructure, if farmers try to sell the land they won’t be able to fetch the same price. We are selling a concept. We provide access and infrastructure of the highest quality.”

Property prices in Nanakramguda, Gachibowli and Kokapet near the airport about 25 kilometres from the city rule at Rs 2,500-3,000 per square foot. And independent bungalows here cost between Rs 70 lakh and a crore of rupees an acre. That’s as much as you might pay in elite residential Banjara Hills and Jubilee Hills or the city centre in Begumpet.

Source:
Moneycontrol.com 2006-08-07 09:38