Friday, November 13, 2009
HYDERABAD - Q3 2009 Office and Retail Update
Thursday, November 6, 2008
JLLM announces RESIDENTIAL REAL ESTATE INVESTMENT HOTSPOTS - 2009
Yes, it is a buyer’s market now. Residential rates are crashing across the country. Overheated pockets in our metros and the more prominent Tier II cities are now tasting humble pie. Is there any scope at all left for residential property investors?
The answer is a simple ‘yes’. There will be no more short-term killings in Indian real estate, but certain areas in the very cities that most now shake their heads over retain their mid-to-long term potential. While other areas in these cities are headed for correction, these locations will hold their own and even grow. The Indian residential real estate story is writing its sequel – and this time, it features real players, realistic settings and a believable storyline...
Anuj Puri
Chairman & Country Head, Jones Lang LaSalle Meghraj
Mumbai has witnessed some of the highest selling prices in the residential market till the beginning of this year. Clearly, those prices were not sustainable, since buyers for super luxury homes are shrinking fast. One of the focal areas was central Mumbai (specifically
The current slowdown has curtailed the investor segment in the residential property market. The driver for what demand exists now are real end-users. In Mumbai, there is no dearth of those desperate to find homes within an affordable range - affordable housing is therefore now the silver lining on the dark cloud of today’s slowdown.
Mumbai has three different directions in which growth can still be observed. Appreciation is not a factor currently, but these are the areas that will sustain their prices – while other areas in Mumbai will correct.
1. The extended western suburbs - the Vasai-Virar sub-region. This region is known for budget housing.
- Drivers:
- Economic drivers such as the MP SEZ by DHL, BIO tech SEZ by Mahindra and IT SEZ
- Connectivity is going to increase by introduction of additional suburban trains from next year
Prices are in the range of Rs. 2500-3500/sq.ft
2. The area adjoining Panvel
- Drivers:
- This region is benefiting significantly from trunk infrastructure enhancements such as the upcoming new airport, the Trans-Harbor Link, a railway terminus, mono rail etc.
- Positive impact from the upcoming Mega SEZs by Reliance and others.
- The expansion of JNPT.
Many developers have already initiated large township projects in this region. The price range are Rs. 3000-3800/sq.ft.
3. Bandra-Khar area
Prime property hunters are still focused on this area.
- Drivers:
- It will witness increased connectivity by the Bandra-Worli sea-link, the proposed Metro Line 2 and also the upcoming Santacruz-Chembur Link road.
- This region is always a preferred destination for prime property seekers because of its elite profile, and because of the high level of available shopping, healthcare, education and recreation facilities. Developers there are offering products in redevelopment schemes.
The prices range from Rs. 18000–25000/sq.ft.
Currently, there is a definite slowdown in growth in the suburban residential market. Construction has stopped on new projects, resulting in a stabilization of rates for ready-possession flats. This scenario also reflects in
However, the areas around the 150-meter road that will eventually connect Gurgaon to Dwarka – specifically, Sectors 103-111 – have significant growth potential.
- Drivers:
- A lot of developments will come up in this area, and one can expect a year-on-year appreciation of at least 5-7% even now.
- The area is currently under-developed – however, when residential projects there reach completion in 2-3 years, the appreciation will be between 30-35%.
- A lot of this depends on the ability of developers to raise enough cash to complete their projects. Those who do not have the requisite finances will miss out on an extremely lucrative opportunity.
The current rates in this belt range between Rs. 2200-2300/sq.ft. In Dwarka, the rates are between Rs. 4000-4500/sq.ft and in the further locations of Gurgaon between Rs. 3500-4000/sq.ft.
CHENNAI
Chennai’s residential real estate scenario is considerably depressed at the current time. Developers who have projects along the once booming IT corridor are all set to reduce their rates by as much as 20%.
However, the Mogappair-Porur composite region continues to hold mid-to-long term investment potential.
- Drivers:
- This overall location is very close to the prime residential catchment of Anand Nagar and also to Chennai railway station and the bus terminus.
- The fact that it is not near the IT corridor also increases its potential.
- The rates there are competitive at Rs. 2800-3000/sq.ft.
The expected appreciation for residential properties here is between 20-30% long term).
Koramangala
- Drivers:
- No scope for fresh developments
- Close to
- Residential demand is high
Rates are between Rs. 7000-8000/sq.ft.
Bannerghatta, Outer Ring Road and
- Drivers:
- Close to IT hub
- New developments are coming up on
Rates – Rs. 3500 – 5500/sq.ft.
Appreciation potential between 5-8% short term. Long term 10-15%.
PUNE
With Talegaon not picking up in the anticipated manner, Pune’s new growth corridor now encompasses Kharadi and
- Drivers:
1) Eon IT Park – 4 million square feet of prime IT space in the last stages of completion
2) Other IT SEZs as well as commercial ventures also on the anvil
3) Proximity to revamped airport
4) Improved connectivity, largely via the opening of the
5) Imminent arrival of 5-star hotels such as JW Marriott, Grand Hyatt and Leela
6) Reasonably low entry costs:
Rates – Rs. 2700-3500/sq.ft
Residential real estate investment growth potential in
- Drivers:
1) Proximity to the financial district, which is where the highest growth of IT and other commercial projects is happening
2) Could become another CBD over the next ten years
3)
Rs. 3000-3500/sq.ft.
Appreciation in these areas will be about 5% in 2009 and might increase in further years.
Friday, August 22, 2008
Micro Markets – The new growth engine for 2008
According to latest 2Q 2008 Asia Pacific Property Digest research from Jones Lang LaSalle
India, 20 August 2008 - The office property markets have continued to post growth over the past few years. However, the last few quarters, have witnessed a polarization of office markets in terms of growth in demand across the country, reports Jones Lang LaSalle Meghraj in its second quarter 2008 Asia Pacific Property Digest (APPD), a comprehensive quarterly report providing market update, significant trends in office markets in India.
The office markets, across six Indian cities including Mumbai, Delhi NCR, Bangalore, Chennai, Hyderabad and Kolkata, can categorized into three broad segments
(1) first segment includes markets which are likely to be “susceptible” in terms of retarded demand growth for the remaining half year of 2008.
(2) second segment includes micro markets which are “strong” in terms of maintaining demand growth for the next two quarters, and
(3) third set includes micro markets which have “high potential” in terms of improving demand growth for the rest of the year.
Anuj Puri, Chairman and Country Head, Jones Lang LaSalle Meghraj says, “It is interesting to note that the “high potential” office micro markets, anticipated to clock increased growth in demand, would do so essentially on the back of affordable product values, improving infrastructure and enhanced product being delivered. It is expected that over the next 8-10 quarters, such markets could witness strong pre-leasing commitments by occupiers despite robust supply pipelines, which are in place.”
Source: Jones Lang LaSalle Meghraj 2Q 2008 APPD; CBD-Central Business District; SBD-Secondary Business District
In case of the susceptible markets, demand from occupiers in the IT/ITES segment, could be rationalized on the back of economic slowdown in the US. This coupled with the strong supply pipeline in many of these markets could lead to a potential consolidation in the respective markets, leading to relatively higher vacancies, although, this may not immediately manifest itself in any marked rental consolidation in such markets.
If the global economic slowdown sustains, we foresee the vacancies to rise in these micro-markets due to strong supply volumes. This might put some pressure on the rental values next year. Rental values are consolidating across all vulnerable markets, however, no major rental fall is expected in these markets this year.
Moreover, it is increasingly becoming evident over the last two quarters that micro markets which are dependent on demand from IT/ ITES occupiers, are likely to be more sensitive to the occupation cost variations as compared to those micro markets which derive demand from non IT/ITES occupiers.
This is evident from the fact that many of the CBD areas in cities such as Delhi, Mumbai, Chennai, Hyderabad, Bangalore and Kolkata continue to enjoy captive demand from corporate occupiers mainly from BFSI, Consulting, and other service industries. The consistency in most of these office markets is also attributable in part to the relatively limited growth in the supply pipeline over the last few years.
Supply Trends
In terms of new office supply completions in the first half year 2008 as compared to same period in the previous year (2007), it is interesting to note that the cities (including all micro markets) that have clocked the highest positive growth rate in terms of delivered supply on a year-on-year are Kolkata, Chennai, Mumbai and Delhi. In fact, Bangalore and Hyderabad are two cities which have actually posted negative growth in terms of stock completion in first half of 2008 vis-a-vis same period 2007.
Source: Jones Lang LaSalle Meghraj 2Q08 APPD
Outlook
A remarkable insight to note is that Hyderabad, Delhi, Mumbai, Chennai and Bangalore have more than half of the total expected office stock completions planned to be delivered in the remaining half of 2008. Whereas, in Kolkata the situation is just reverse, where about a third of the total stock completions are due to be delivered in the remaining half of 2008.
On the demand front, the second half of 2008 is expected to witness high pre-leasing activity in most IT SEZs and, IT parks developed by blue chip developers. While the slowdown in the IT/ITES sector is a known story, the slowdown has been only in terms of a deceleration in the estimated growth rate to 21-24% for 2008-09 vis-a-vis the recorded 28.2% growth in FY 2008. Further demand from emerging industries like pharma, biotech, semiconductor, R&D operations and logistics will top this IT/ITES demand. Thus, taking cognizance of the supply-demand scenario, the next two years will witness strengthening of the real estate office market fundamentals in terms of market behaviour, rationalisation of demand-supply, and increased consolidation.
About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2007 global revenue of USD2.7 billion, Jones Lang LaSalle has approximately 180 offices worldwide and operates in more than 700 cities in 60 countries. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.2 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with more than USD54 billion of assets under management. For further information, please visit our website, http://www.joneslanglasalle.com/.
Jones Lang LaSalle has over 50 years of experience in Asia Pacific, with over 16,000 employees operating in more than 70 offices in 13 countries across the region.
About Jones Lang LaSalle Meghraj
Jones Lang LaSalle Meghraj, the Indian operations of Jones Lang LaSalle, is the premiere and largest real estate professional services firm in India. With an extensive geographic footprint across ten cities (Delhi, Mumbai, Bangalore, Pune, Chennai, Hyderabad, Kolkata, Kochi, Chandigarh and Coimbatore) and a staff strength of over 3300, the firm provides investors, developers, local corporate and multinational companies with a comprehensive range of services including research, consultancy, transactions, project and development services, integrated facility management, property management, capital markets, residential, hotels and retail advisory. For further information, please visit www.jllm.co.in
Friday, November 30, 2007
A survey on real estate residential market of Twin cities - Hyderabad and Secunderabad
Hyderabad, the capital of Andhra Pradesh, has been known for its heritage, traditional hospitality and a thriving software industry. It is one of the largest metropolises of India, with a population of around 6.1 million people, spread over an area of approximately 625 sq.kms. The capital is in reality the twin cities of Hyderabad and Secunderabad linked together by the Hussain Sagar Lake and is now the second largest city in India with the recent inclusion of the 12 municipalities being merged into Greater Hyderabad.
This city that once predominantly depended on engineering based industries and trade as a means of income has seen a dramatic change over the last few decades. With the IT boom, companies like Microsoft, Oracle, Dell, Delloite, IBM, Perot, Polaris, Accenture, CA, HP, GE, UBS, Convergys and Franklin Templeton have set up offices in Hyderabad. This led to the development of infrastructure facilities and the general growth of the contiguous locations surrounding the Hitech City area, also referred to as Cyberabad, which has a coherence of its own due to the pace of development and the attraction of overseas investors. In recent times, owing to the interest generated in the Hitech City, real estate development has picket up considerably in the adjoining Gachibowli area where a number of campus development by IT major like Microsoft, Infosys, Wipro, Polaris, Kanbay, UBS, Franklin Templeton etc, are located. This has led to a substantial inflow of IT / ITES professionals, thus escalating the demand for Grade-A residential projects across Hyderabad. The research and survey done by professional real estate broker named M.L.Rao, chief coordinator of Equate Realtors (www.equaterealtors.com), having immense experience in real estate broking since 21 years at Twin Cities and having branch at Vizag.
Apart from the office market of this region, Hyderabad also as numerous prestigious educational institutions like Osmania University, ICFAI and Indian School of Business. The floating population of students from these universities has impacted the lifestyle and trends of the city as well. While a few years ago students stayed in hostels, nowadays they prefer to share apartment accommodations with batch mates.
Till a decade ago the mid-end residential development in Hyderabad were largely concentrated in locations like the Uppal Zone, Dilsukhnagar, Koti, Secunderabad, etc, while the localities of Banjara Hills, Jubilee Hills, and nearby areas continued to be premium locations. Market in these locations soon became saturated and due to non-availability of land parcels, builders were forced to move to other locations. Consequently, large scale developments are now seen in locations like Kukatpally, Madhapur, Miyapur, Madinaguda, Gachibowli, Nizampet, Kompally, Tellapur and Gopannapally.
Current Scenario
Infrastructure project like the Outer Ring Road (ORR) and the development of SEZs proposed by the government has led to speculation in the real estate market. This could be the cause for demand for land parcels and residential accommodations in Shamshabad, Maheshwaram and locations along Vijayawada highway. The housing requirement in the Madhapur-Gachibowli corridor has resulted in large scale Grade-A projects by major developers like L&T Info city, Lanco, Indu Group, IVRCL, Emaar-MGF, My home, IJM etc., ( Local builders like Manjeera Constructions, Alliance, Aparna etc). in the western and north western locations. The demand in Madhapur, Kukatpally, Jubilee Hills, Banjara Hills, Somajiguda, Yusufguda and Gachibowli as compared to other locations in primarily driven by the IT / ITES professionals with higher income levels enabling them to invest in these prime neighborhoods.
A notable trend in the buyer behavior of this city is the consistent demand for villas and row houses especially in the peripheral locations. This could be due to the buyer’s perception that the price of land will always be bullish. Buyers seem to be ready to commute 18-20 kms out of the city and invest in a villa. Of the total estimated supply for 2009-10, 25% will be in terms of villas and bungalows while 75% will be in the form of apartments.
Central Zone
The central zone includes locations such as Begumpet, Banjara Hills, Jubilee Hills, Somajiguda, Panjagutta, Chikkadpally, Ramkoti and Malakpet, most of which are in and around the Hussain
Sagar Lake. Majority of the locations form the traditional residential hubs of the city and capital values in this region range between Rs.2, 500-6,300. Since there are fewer land parcels available, most of the constructions encompassed in this region are stand-alone developments. Locations such as Banjara Hills and Jubilee Hills are still considered as prime residential locations and cater to the higher income segment. Construction activity in this micro-market is mainly observed on the inner roads of Banjara Hills Road No.10 and 12. However a large percentage of these projects are redevelopments of existing villas and bungalows. The projected supply to enter this zone by the year 2009-2010 is 1.61 mn.sq.ft. A few notable projects for this region would be Aditya’s Green Park with high-end apartments in the vicinity of Jubilee Hills on 6.91 acres of land, RRS Towers on Raj Bhavan Road and Prajay Riveria at Banjara Hills.
Northern Zone
Although a large percentage of the northern region is cantonment area, the project size in this micro-market is on a much larger scale than in most other locations of the city. This region has an even mix of both apartment as well as villa and bungalow development. This can be attributed to the fact that a considerable amount of the demand in these locations is investment driven. Maximum construction is being seen in Nizampet, Kompally, Bowenpally, Qutbullapur and Nagpur Highway and capital values for apartments and villas in these regions fall between the range of Rs.2,550-4,500 sq.ft. Many of the prominent developers have take up projects in this region as there are large expanses of land available complimented by excellent infrastructure facilities. Large projects in this zone include Ambience Neighbourhood by Ambience Group and Casa Estebana, a luxurious project by Koncept Ambience Group comprising 45 villas. A few other notable projects by local developers and Aditya’s Grand Ville of 100 independently villas and Ashoka’s ‘A la Maison’ in Kompally, Splendid Aparna Integrated township. This region is the second largest contributor to Hyderabad’s residential supply and has an estimated 9.13 mn.sq.ft. that is likely to enter the market by 2009-10.
Eastern Zone
The eastern zone comprises of locations such as Shameerpet, Yapral, Cherlapalle, Pocharam, Uppal, Kuntlur, Musheerabad, Marredpally and parts of Secunderabad, and has an estimated supply of around 2.46 mn.sq.ft that would enter the market by 2009-10. This region mainly consists of gated community and villa development, as buyers prefer to take a villa rather than an apartment at the prevailing rates. The northern part of this region has a majority of projects in Shameerpet and Yapral. Two large projects in this micro-market include those by Prajay Engineers Syndicate Ltd called Prajay Celebrity Villas and Prajay Bloomingdale. While the northern half of this zone is experiencing active real estate development in the above locations, the rest of the eastern zone is witnessing activity concentrated at Pocharam on Warangal highway. A notable construction in Whitefield is that by Hallmark Construction called Express Towers which has an amphitheatre among the facilities being offered. This zone is both end-user as well as investment driven, the capital values ranging between Rs.1, 600-3,500 /sqft.
Western Zone
The western part of the city encompasses locations in Cyberabad such as BHEL, Madhapur, Gachibowli, Gopannapally, Kukatpally, Miyapur, Nanakramguda, Manikonda, Bachupally, Kondapur, etc. this region with a supply of approximately 39.72 mn.sq.ft. is the major contributor to the overall supply that is likely to enter the Hyderabad residential market by 2009-10. North western regions like Bachupally, Borampet and the locations around the Biotech Park mostly have villa and row house development, while Madhapur, Gachibowli and Kukatpally, and have high-end residential apartments which are 5-14 stories high. L&T Serene County in Gachibowli, spread over 31 acres, includes a shopping complex and community centre.
Other notable projects in these locations include Hill Ridge in Gachibowli and Lanco Hills in Manikonda. Raintree Park, a joint venture township project between Andhra Pradesh Housing Board and IJM (India) Infrastructure Limited, is being developed at Kukatpally on 35 acres. Locations like Nadagandla, Gopannapally, and Hitech City have a preponderance of demand for apartments as compared to the rest of the western region. The demand is end user driven with a majority of the supply being taken up by those working in Hitech City and the neighboring commercial hubs. Development of gated community or bungalow schemes is on a rise in this region as it provides support infrastructure for the same. Some of the prominent constructions in these locations include Silicon County at Madhapur by the Jayabheri Group, Prajay Ridge Wood at Nadagandla and Maytas Hill County at Bachupally which has a business centre amongst other facilities. Most of the development in these locations are Grade-A and capital values for apartments and villas are within the range of Rs.2, 400-4,750 / sq.ft. with a demand for mostly 3 BHK apartments.
Southern Zone
The southern Zone comprises locations such as Himayatnagar in the south east and Shamshabad, Maheshwaram, Karmanghat etc. in the south. The south does not have much construction taking place with developers taking up most of the land parcels and dividing them into smaller plot layouts for sale. The ORR and the new international airport have been the key demand drivers for real estate activity in these locations. Around 3.38 mn.sq.ft. Of residential supply is under construction in the south and southwestern region. Most construction activity, however, is still in the nascent stage with the exception of a few projects like Banyan Tree Retreat by MAK Projects and Aliens Space Station II by Aliens Developers. These locations still cater to the middle-income group and till the development of Fab City along with other proposed project this trend would be unlikely to change. The capital values for apartments and villas in this zone range between Rs.1, 700-4,372 / sq.ft.
Outlook
The Hyderabad market is likely to witness considerable real estate development over the next few years with the construction of the new Outer Ring Road which would connect all the national and state highways. Locations on either side of the ORR shall witness considerable development. In addition to the proposed radial roads, the government has approved a proposal to set up a Hyderabad Knowledge Corridor consisting of IT and ITES companies covering over 20,000 acres in Ranga Reddy district. Industry experts are sceptic about availability of large land parcels with clear title for construction of gated layouts or integrated apartment complexes. Another cause for concern among developers has been the introduction of Government Order (G.O.) 86 which has laid down certain strict guidelines for building activity in city central areas. However the advantage of G.O.86 is that in the peripheral locations of the city, there is greater scope for bigger project to come up. Recently, the increase in home loan interest rates has resulted in prices stabilizing and in some locations even reducing marginally. There has been a reduction in the number of home loans that have been taken after March 2007 due to the rise in interest rates and this could lead to a drop in demand in the immediate future. Currently the average ticket size for home loans in Hyderabad is around Rs.2 million. This market resistance is causing quite a few builders to postpone public openings of booking for new projects. Greater Hyderabad however is likely to emerge as a financial hub in the near future.
Contributed By : M.L.Rao
Monday, September 24, 2007
Biotechnology to contribute to the Indian Realty boom!!
Biotechnology is the next. After the Information technology, the industry that is fast thriving is the bio-technology sector. Bio-technology sector is all set to bring another boom in Indian property market.
Currently there are six biotech parks in India and around nineteen are to be developed. Indian realty is growing at tremendously and also attracting large investments with a market size currently being $12 billion (Rs 47,880 crore). The biotechnology industry furthermore is giving a hard push to the demand for quality commercial spaces as the estimated demand from the technology sector alone is likely to be 150 million sq ft of space by 2010.
To add to the fact that few years down the line demand creation for commercial space by the technology sector will be huge, the overall investment in the sector has also seen escalation. The investment has grown from $ 137.2 million in 2003 to $366 million in 2006. Out of the huge investment being made in the bio technology sector will go in setting infrastructure facilities and development centers. The major areas where the potential is and is needed to be tapped are cities like Hyderabad, Bangalore, Chennai, Mumbai, Pune, and National Capital Region.
India for quite sometime has been one of the most sought after destinations in terms of real estate investments and now it is to become a center of biotechnology industries.
Tuesday, September 18, 2007
IT Companies eyeing Tier II and Tier III cities
IT companies are voicing a big ‘NO’ to tier I cities as the prices of commercial properties going through the roof and the increasing attrition rate in tier I cities.
On the contrary the same at a Tier II city like Chandigarh and Pune for instance is comparatively low at 10-25 per cent and is expected to be far less than this in Tier III cities.
A ballpark estimation says that nearly 95% of the IT outsourcing activity (both domestic and international) is concentrated in the six, tier-I cities. Now, cities such as Chennai, Hyderabad, Pune, and tier III cities like Jaipur, Chandigarh, Mysore and Ahmedabad are to make the mark in BPO sector, says the data showcased by India Executive Report 2007.
Whereas in tier II and III cities high salaries, vibrant work culture and environment are the main highlights luring more and more people to look forward to BPO jobs. On the other hand since the rates of commercial properties are less in those tiers II cities and the retention of manpower easier IT companies finding is a prudent effort to mark their presence in tier II and tier III cities.
Talent getting skimmed in metros is another reason for these companies to ponder over moving their stations to tier II and III cities but at the same time the problem these IT companies can come across is the unavailability of proper and adequate infrastructure.
However, there is a win-win situation for IT companies if they move to smaller cities. The reports nevertheless corroborate that IT giants like TCS, Infosys, Wipro and Satyam have openly launched their operations in Tier II and Tier III cities like Mysore, Goa, Chandigarh, Indore and Bhopal in the recent times.
Contributed By : Kaustubh Jarag
Friday, August 17, 2007
Procedure of conversion of agricultural land to non-agricultural purposes in the state of Andhra Pradesh
http://www.jurisprime.com/
With skyrocketing land prices, especially on the outskirts of the city, farm land was being converted into layouts and sold to people by dividing them into plots with out obtaining permission from the Government.
As per the Andhra Pradesh Agriculture Land (Conversion for Non-agriculture Purpose) Act, 2006, any Owner converting agricultural land for non-agricultural purposes should pay 10 per cent of the basic value towards conversion fee. If the land has already been converted for non-agricultural purposes illegally before January, 2006, they would have to pay fifty per cent fee penal amount apart from the conversion fee. The fee can be paid to the revenue divisional officer of the concerned revenue division.
The Director of Town and Country Planning (DTCP) and Hyderabad Urban Development Authority (Huda) shall not to issue permissions for layout without the mandatory land conversion certificate. Now let us see the provisions of the Act.
The Government of Andhra Pradesh has passed The Andhra Pradesh Agricultural Land (conversion for non-agricultural purposes) Act,2006 (the Act) for regulating the conversion of agricultural land in the state of Andhra Pradesh to non-agricultural purposes and for matters connected therewith or incidental there to and to repeal the Andhra Pradesh Non-Agricultural Land Assessment Act,1963 and the same was received the assent of the Governor on December 30,2005 and the said assent was published in the Gazette of Andhra Pradesh Government on January 2,2006(effective date).
Definitions: -
(i) “Agriculture” means-
(a) the raising of any crop or garden produce ; or
(b) the raising of orchards ; or
(c) the raising of pasture ; or
(d) Hay- ricks ;
(ii) ‘Agriculture lands’ means lands used for agriculture ;
(iii) ‘Conversion’ means change to land use from agricultural to non-agricultural purposes ;
(iv) ‘Non-agricultural land’ means land other than Agricultural land;
(v) ‘Government’ means the State Government of Andhra Pradesh ;
(vi) ‘Collector’ means the District Collector in whose jurisdiction the agricultural land for which conversion is applied for is situated and also includes Joint Collector or any other not below the rank of the Joint Collector authorized by the Government to exercise the powers and perform the functions of the District Collector under this Act;
(vii) ‘Revenue Divisional Officer’ means, the Revenue Divisional Officer including Sub-Collector or Asst. Collector in whose jurisdiction the agricultural land or part thereof is situated and includes any officer not below the rank of a Revenue Divisional Officer empowered by the Government to exercise the powers and perform the functions of the Revenue Divisional Officer under this Act ;
(viii) ‘Mandal Revenue Officer’ means the Mandal Revenue Officer, in whose jurisdiction the agricultural land or a part thereof is situated, and includes any Officer not below the rank of a MRO empowered by the Mandal Revenue Officer under this Act ;
(ix) ‘Mandal Revenue Inspector’ means the Mandal Revenue Inspector in whose jurisdiction the agricultural land or a part thereof is situated and includes any officer empowered by the Revenue Divisional Officer to exercise the powers and perform the functions of a Mandal Revenue Inspector under this Act ;
(x) ‘Prescribed’ means prescribed by Rules made by the Government under this Act ;
(xi) ‘Notification’ means a notification published in the Andhra Pradesh Gazetta; and the word ‘Notified’ shall be construed accordingly ;
(xii) ‘Occupier’ includes:
(i) Any person for the time being paying or liable to pay to the owner rent, or any portion of the rent, for the land or, for the structure constructed ;
(ii) A rent- free occupant ;
(xiii) ‘Owner’ includes any person for the time being receiving or entitled to receive, whether on his awn account, or as agent, trustee, guardian, manager or receiver, for another person, or for any religious, educational or charitable purpose, rent or profits for the agricultural land or for the structure constructed on such land and includes in respect of the lands that have been leased out by the State Government or the Central Government ;
(i) a lessee, if the land has been leased out by the Government for any non-agricultural purpose ; and
(ii) a local authority, if land is vested in the local authority and used for any non-agricultural purpose deriving income there from.
Sections 3 to 8 of the Act provides for procedure to be followed for conversion of agricultural land for non-agricultural purpose, penalties and appeal provisions.
3. Land use Conversion: -
(1) No agricultural land the State shall be put to non-agricultural purposes, without the prior permission of the competent authority.
(2) An application for such conversion of the agricultural land for non-agricultural purposes shall be made before the competent authority in the form prescribed along with conversion fee as specified under Section 4.
(3) If the conversion fee so paid as per sub-section (2) is found to be less than the fee prescribed under Section 4, a notice shall be issued by the competent authority to the applicant within 30 days of the receipt of application intimating him the deficit amount.
(4) The applicant shall pay the deficit amount indicated in the notice issued under sub-section (3) within fifteen days of the receipt of such notice.
(5) In case no intimation is received by the applicant within 30 days about the deficit payment of conversion fees, it shall be deemed that the amount paid is sufficient for the purpose.
(6) In conversion permission request for shall either be issued, rejected in full or part by the competent authority within sixty days after such request is received on the officer of the competent authority or within thirty days after the receipt of the deficit amount as the case may be, provided that such request are rejected, the reasons for such rejection shall be recorded in writing and communicated to the applicant:
Provided that, if no order is passed on such request, within the time prescribed in sub-section (6), the required permission shall be deemed to have been given.
4. Power to levy and collect conversion fee:-
(1) With effect on and from the date of commencement of this Act, every owner or occupier of agricultural land shall have to pay a conversion fee for non-agricultural purposes, of the rate of 10% of the basic value of the land in areas as may be notified by the Government from time to time.
(2) For the purpose of this section, the basic value of the land shall be fixed in such manner as may be prescribed.
5. Authority competent to convert agricultural land for non-agricultural purpose:- The Revenue Divisional Officer or any officer to be notified by the Government in this behalf shall be competent to order, in respect of the lands situated within his territorial jurisdiction, conversion of land use from agricultural purpose to non-agricultural purpose.
6. Penalty:-
(1) If any agricultural land has been put to non-agricultural purpose without obtaining the permission as required under Section 3, the land shall be deemed to have been converted into non-agricultural purpose.
(2) Upon such deemed conversion, the competent authority shall impose a fine of 50% over and above the conversion fee for the said land specified under Section 4 in such manner as may be prescribed.
(3) The owner or occupier of the land shall pay the fine so imposed under Sub-Section (2) in such manner as may be prescribed.
(4) Any fee or penalty which remains unpaid after the date specified under sub-section (2) for payment, shell be recoverable as per the provisions of the Andhra Pradesh Revenue Recovery Act, 1864.
7. Act not to apply to certain lands:- Nothing in this Act shall apply to-
(a) Lands owned by the State Government ;
(b) Lands owned by a local authority and used for any communal purposes so long as the land is not used for commercial purposes ;
(c) Lands used for religious or charitable purposes ;
(d) Lands used by owner for household industries involving traditional occupation, not exceeding one acre ;
(e) Lands used for such other purposes as may be notified by the Government from time to time;
8. Appeal: - Any person aggrieved by an order of the Revenue Divisional Officer may file an appeal before the Collector within sixty days of receipt of such order by the applicant.
Other provisions are as follows :
9. Act to Override other Laws:- The provisions of this Act shall have effect notwithstanding anything in consistent therewith contained in any other law for the time being in force, or any custom or usage having the force of law or contract or judgment decree or order of a court or any other authority
10. Power to give directions: - For the purpose of giving effect to the provisions of this Act it shall be competent for the Government to issue such directions as they may deem fit to any officer, authority or persons subordinate to the Government.
11. Bar of Jurisdiction: - Save as otherwise expressly provided in the Act, no Court shall entertain any suit, or other proceeding to set-aside or modify, or question the validity of deficit fee under Section 3 or fine imposed under Section 6, or order or decision made or passed by any officer or authority under the Act or any rules made thereunder, or in respect of any other matter falling within its scope.
12. Protection of action taken in good faith: - No suit, prosecution or other legal proceedings shall be instituted against any person for anything which is in good faith done or intended to be done under this Act or under the rules made thereunder.
13. Power to remove difficulties: - If any difficulty arises in giving effect to the provisions of this Act, the Government may by order in the Andhra Pradesh Gazette make such provisions not inconsistent with the purposes or provisions of this Act as appear to them to be necessary or expedient for removing the difficulty.
14. Power to make rules: -
(1) The Government may by notification make rules for carrying out all or any of the purposes of this Act.
(2) Every Rules made under this Act shall immediately after it is made, be laid before the Legislative Assembly of the State, if it is in the session and if it is not in session, in the session immediately following, for a total period of fourteen days which may be comprised in one session, or in two successive sessions, and if before the expiration of the session in which it is so laid or the session immediately following the Legislative Assembly agrees in making any modification in the rule or in the annulment of the rule, the rule shall from the date on which the modification or annulment is notified have effect only in such modified form or shall stand annulled as the case may be, so however, that any such modification or annulment shall be without prejudice to the validity of any thing previously done under that rule.
15. Repeal of Act 14 of 1963:-
(1) The Andhra Pradesh Non-Agricultural Lands Assessment Act, 1963 is hereby repealed.
(2) Upon such repeal,--¬¬¬¬
(a) The provisions of Section 8 of the Andhra Pradesh General Clauses Act, 1891 shall apply;
(b) All the outstanding arrears from individuals/institutions under the Andhra Pradesh Non-Agricultural Lands Assessment Act, 1963 as on the date of commencement of this Act shall be recovered under the provisions of the Andhra Pradesh Revenue Recovery Act, 1864.
Contributed By : V V S N Raju
