Post Election Results in India, there is one Sector in one area that has witnessed a phenomenal boom irrespective of the economic conditions in the country. The area that is a subject of this post are the two districts of Krishna and Guntur in the residuary State of Andhra Pradesh. The sector that is an object of this post is the Real Estate Sector. Post bifurcation of Andhra Pradesh into two states (AP and Telengana) and the General Election results, real estate has exploded.

The nature of the boom in the sector was covered about a month ago in an article. At that time, the priciest piece of real estate was around Rs.5 crores per acre (nearly US$ 830,000). Fast forward to the present, the explosion in prices continues - much akin to reliving the Tulip Mania. The priciest land is now varies from Rs.12-16 crores ($US 2-2.6 million). The buyers are mostly from the former capital of the United State - Hyderabad. Land transactions are taking place in full swing. Knowledgable sources point out that the number of registrations have increased by 400% since May 2014 (when the results were announced).

This is striking because till the end of March 2014, the Department of Stamps and Registration was find it difficult to meet its targets. Interestingly, the benefits that accrue to the government are limited because there is no increase in the official valuation of the land (on which the Stamp duty have to be paid). 

The interesting aspect of this price move is that over the past two years, prices of land have shot up by more than 10 fold.

Probably the biggest boom in the history of Indian Real Estate Sector!