Chamarajanagar, once considered a backward district, is now experiencing a dramatic rise in land prices. Within a 25km radius of the city, land is now being sold for Rs 22-26 lakh per acre, a stark increase from just five years ago, when prices ranged from Rs 2 to 5 lakh per acre.
Experts attribute this surge to investments from NRIs, Gulf returnees, and buyers from Kerala and Tamil Nadu, following the implementation of state land reforms. The demand for both agricultural and non-agricultural land has skyrocketed, especially due to improved groundwater levels resulting from successful water conservation initiatives, such as lake rejuvenation, rainwater harvesting, and watershed development programs.
A significant number of buyers from neighboring Kerala and Tamil Nadu are purchasing agricultural land, offering Rs 25-30 lakh per acre, depending on proximity to roads, highways, and the cultivation of crops like ginger, banana, and plantation crops. Areas near the Badanaguppe-Kellamballi Industrial Area, along the Chamarajanagar-Nanjangud Road, Mysuru Road, and Chamarajanagar-Gundlupet stretch have seen land prices rise steeply.
With the government offering Rs 43 lakh per acre for farmers for the expansion of the Badanaguppe-Kellamballi Industrial Area, real estate prices in these regions have also soared. As industrial development accelerates, housing and site prices are seeing rapid growth in and around Chamarajanagar, benefiting from its proximity to Mysuru and Nanjangud’s industrial zones.
A 30*40 site in the city now costs Rs 30-40 lakh, while sites on the outskirts, such as those in Chamarajanagar Urban Development Authority-approved private layouts, cost Rs 12-16 lakh. Prices in nearby towns like Kollegal, Hanur, and Gundlupet have also surged, with site prices increasing from Rs 30 lakh to Rs 40 lakh for similar plots.
However, the rise in land prices is creating challenges for middle-class families looking to buy land and construct new homes. Farmers and landowners who have faced hardships due to natural calamities are selling their land and migrating to urban areas, contributing to the influx of investments. The increased prices are also making it difficult for local authorities to acquire land for new layouts and development.
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