Has the Exodus over land prices in Haryana begun?

April 6, 2007	(1 votes, average: 5 out of 5)  Loading ...
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The development of the Reliance’s ambitious 25,000 acre SEZ project in Haryana is likely to result in land rates crash in surrounding areas. Since its announcement; land rates in some peripheral location in and around Jhajjar have witnessed a great hike.

For the land acquisition by the corporate major, the state government had imposed a minimum floor rate of Rs 22 lakh per acre, which was about 7-8 times the then existing market price of Rs 3 lakh. Consequently, this has led to the appreciation in land rates in the adjoining districts, like Rohtak, Jind, Rewari, where land prices in the past 1 year have jumped 6 times over, to more than Rs 15 lakh per acre.

There can be minor corrections in the land prices but it would not lead to the land price crash, say real estate developers.

Property developers who have the vision to develop SEZ projects will move with land procurement, says Parsvnath CMD Pradeep Jain.

There is enough demand to sustain the property boom especially in Haryana, where a multitude of investors have lined up to invest in properties. Contrary to the belief, an official of Rewari Development Authority informs about a downfall in the land rates in Rewari which is all because of the centre’s notification. This has caused problems in the land acquisition of Jhajjar SEZ. The land prices may witness a fall by around 40-50%.

The areas which were uselessly hyped earlier would now become realistic in terms of prices, says Sumit Jha, Deputy Secretary of National Real Estate Development Council. However, there are sure chances for the real estate prices to undergo a correction. But property developers would certainly come and the construction is bound to take place in these areas at realistic prices, he adds.

News Published Under:   Real Estate India |

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