The upcoming auction of lands in Kokapet, scheduled for August 3, has raised concerns within the real estate sector as the removal of GO 111 and lack of clarity regarding the area’s development plans create uncertainty among potential buyers. The government expects to generate around Rs 2500 crore from the auction of seven plots. However, the availability of approximately 1.32 lakh acres for construction following the GO 111 cancellation has left many questioning the necessity of participating in the auction.
With a minimum price set at Rs 35 crore per acre, the potential buyers are skeptic to pay such premium amount. Given the current circumstances and the absence of a master plan or official statements regarding GO 111 removal, it becomes crucial to address the underlying reasons behind potential investors’ reluctance.
Public sentiment aligns with the belief that the lifting of GO 111 was politically motivated, coinciding with the upcoming elections. A recent survey conducted by REG News revealed that people suspect the decision was made primarily to benefit real estate developers. Concerns are raised as the absence of immediate availability of the Master Plan post removal of GO 111, has left everyone in a state of uncertainty.
Minister KT Rama Rao had previously assured to develop the entire area as a ‘Green Zone’ with the implementation of a comprehensive Master Plan. However, no concrete steps have been taken so far, leaving the realty industry in a state of confusion. The uncertainty surrounding GO 111 has resulted in a standstill within the real estate market, with experts concurring that demand for the auctioned plots in Kokapet will likely remain low until there is clear clarification regarding the adjacent areas.
One crucial aspect that authorities need to consider is Kokapet’s proximity to the land previously bound by GO 111. The removal of the GO has opened up hundreds of acres for development at comparatively lesser price, raising doubts about the viability of purchasing land in Kokapet at exorbitant prices. Buyers who had already invested at high rates are now unsure of their next steps. Since the Cabinet announced the GO 111 scrapping, buyers have displayed a lack of interest in acquiring plots at inflated rates in Kokapet. This scenario begs the question of whether real estate companies will participate in the second phase of the auction. A similar situation is expected in the Budvel land auction as well.
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