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HindustanTimes Fri,26 Dec 2014

Property prices set to soar in Uttarakhand after Lok Sabha polls

Abhinav Madhwal  Dehradun, April 19, 2014
First Published: 22:19 IST(19/4/2014) | Last Updated: 22:27 IST(19/4/2014)

Real estate prices are likely to rise after the general elections as a lot of election expenditure will find its way to this sector.

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SP Sharma, chief economist of the PHD Chambers of Commerce, said past trends from the general elections have shown that the real estate sector witnesses a spurt after the elections. “This is due to the fact that the money and expenses on the elections find their way into the real estate market as investments,” he said.

Sharma said it is still hassle-free for people to invest in the real estate segment where they can use the benami route also. The general elections see a big inflow of money intended for canvassing and other arrangements. This money is then channelized into the real estate segment which leads to a spurt in the prices of land and property.

In fact, the state has already been witnessing a boom in this sector since Uttarakhand was formed in 2000. The property and real estate market in the state has only gone up in recent years and the land prices have skyrocketed in cities like Dehradun, Haldwani and Nainital where builders have set up several mega projects.

Half a dozen murders have been committed in Dehradun in the past one year over property disputes. They indicate the existence of property related turf wars in the city.

Subhash Dhasmana of Prateek Builders said that there might be a spurt in the real estate segment after the general elections as lots of money is being pumped there at present. Most of the investments would be made into this sector after the polls, he said.


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more from Dehradun

‘Central aid to state rose in past 3 yrs, but growth slow’

The annual assistance from the Centre to the state has increased in last few financial years, according to official statistics, even though the Uttarakhand government has been firing salvos at the central government over it.
 
Two days ago, the state Congress unit demanded `4,000 crore financial assistance from the centre.
According to the central statistics office figures, the Centre released `4883.74 crores for the state in 2011-12. It released `4717.68 crores in 2012-2013. And in 2013-2014, it increased the assistance to `5418.60 crores.

Uttarakhand is one of the 11 Himalayan states which enjoy special category status besides Jammu & Kashmir, Himachal Pradesh, Assam, Arunachal Pradesh, Meghalaya, Manipur, Mizoram, Nagaland, Tripura and Sikkim.
 
These special category states have to make part payment to the centre in lieu of getting funds for centrally-sponsored schemes.
Interestingly, on an average, central assistance has been substantial for the state though it has not helped Uttarakhand in increasing its Gross State Domestic Product (GSDP) which is total monetary value of goods and services produced by a state economy in a given year.
“GSDP depends on various factors like rate of savings and investments and overall business atmosphere. But that doesn’t mean the state does not need help,” said Surender Kumar, media in-charge for CM adding that the state needs more funds.
 
The figures for Uttarakhand GSDP growth at constant (2004-5) price (as on 01-08-2014) was 9.36% in 2011-12. It was 5.61% in 2012-13 and 5.65% in 2013-2014.
 
Sometime back Planning Commission constituted a committee to study development in hill states arising from management of forest land with special focus on creation of infrastructure, livelihood and human development.
 
The report of the committee was discussed in Internal Planning Committee meeting held in February this year.
A Planning Commission note claimed that IPC broadly endorsed the recommendations of the committee. The report has also been forwarded to states for further inputs.

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