AP Real Estate News – Developers to Give 5% Layout Area to Jagananna Housing Scheme – AP Govt.
The Andhra Pradesh government has made it mandatory for real-estate developers & realtors to demarcate 5% of the developed area of their plot towards the State govt. for Jagananna Housing Scheme. The state government of AP said layout owners & developers alike have to hand over 5% of their developed area to the respective District Collectors. The state government plans to utilize these smaller parcels of land to help build homes for the poor & economically weaker sections of society under the YSR Jagananna Housing Projects.
Project layout owners/developers have been given 3 options by the AP state govt. regarding handing over 5% of the developed layout:
- Direct Hand Over of 5% of Land Part of the Layout
- Hand Over of 5% of Layout Area within 3km radius from original layout location
- Pay basic value of 5% land directly
In case of the third option of paying out the basic value of 5% of original layout land, the payment must be made to the respective local Development Authority or respective Urban Local Body in case of areas not under Development Authority plans.
As it stood before the new government order to hand over 5% land area for YSR Jagananna Housing Scheme, developers & builders had to allot 30% of land for roads, 10% for open space, 2% for amenities and 0.5% for utilities if the layout area is smaller than 5 acres. For layouts larger than 5 acres in size, 3% area had to be allotted towards amenities & 1% land handed to local bodies for utilities. With the new 5% rule, the developers have to leave 47.5% layout area for aforementioned purposes and for layouts larger than 5 acres in size, the percentage increases to 49%.
According to previously existing rules, the layout owner/developer could allot the 5% land to the government through land which would be within 5km radius of original layout. According to CREDAI President (Vijayawada) K. Rajendra, the plotting area in Andhra Pradesh has fallen to around 20,000 acres per year from 35,000 acres per year as buyers who had paid advance amounts have not continued to show interest in buying the plots and many housing units too remain unsold. The cost of raw materials required for construction has also soared in AP, prices of sand & cement are already high and now even iron is retailing at ₹72,000 per ton.