Post by jacksona on Jun 2, 2012 6:08:34 GMT
In a competitive pricing system, a particular price rules for the same type of goods in different markets. The market price secures an optimum allocation of resources, for it equals both the value, to which the community puts an extra unit of the good and also the additional cost of supplying that good.
What the Community Land Act did was to allocate land at two prices: to private developers at the full current market price, to the local authorities at the current market price after subtracting the Development Land Tax (DLT). Take an example of agricultural and housing land, selling respectively at 60,000 rupees and 12 lakh for an acre, whereas on the other hand the local authority would have paid a DLT of less than rupees 12 lakh. Indeed, as DLT was to be increased, the price differential between the private developer and the local authority would also have increased.
With respect to the valuation of Properties in Kerala , the most important factor that determines its appreciation is the locational advantages. Properties that are located in the vicinity of the key business centers always appreciate in value several times from that prevailing in the surrounding areas. This is rightly being evident in the commercial capital of the state, Cochin.
In no other city in Kerala can you such phenomenal appreciation in land values. The dominance of the market forces has led to a better situation for both the prominent realtors and the investors. For an investor from outside the state or from outside the country, Kerala means Cochin and he may foray into other destinations only if he is unable to get a foothold in this hot real estate market. Very few of the nationally known realtors have actually ventured out from this city into other cites or districts. With the announcement of the mega projects in this picturesque destination, more developments are likely in the near future.
What the Community Land Act did was to allocate land at two prices: to private developers at the full current market price, to the local authorities at the current market price after subtracting the Development Land Tax (DLT). Take an example of agricultural and housing land, selling respectively at 60,000 rupees and 12 lakh for an acre, whereas on the other hand the local authority would have paid a DLT of less than rupees 12 lakh. Indeed, as DLT was to be increased, the price differential between the private developer and the local authority would also have increased.
With respect to the valuation of Properties in Kerala , the most important factor that determines its appreciation is the locational advantages. Properties that are located in the vicinity of the key business centers always appreciate in value several times from that prevailing in the surrounding areas. This is rightly being evident in the commercial capital of the state, Cochin.
In no other city in Kerala can you such phenomenal appreciation in land values. The dominance of the market forces has led to a better situation for both the prominent realtors and the investors. For an investor from outside the state or from outside the country, Kerala means Cochin and he may foray into other destinations only if he is unable to get a foothold in this hot real estate market. Very few of the nationally known realtors have actually ventured out from this city into other cites or districts. With the announcement of the mega projects in this picturesque destination, more developments are likely in the near future.