Chamarajanagar district, once considered underdeveloped, has seen a significant rise in land prices, with rates now ranging from INR 22 to INR 26 lakh per acre within a 25-km radius. This surge is attributed to investments from NRIs, Gulf returnees, and buyers from Kerala and Tamil Nadu, driven by improved agricultural conditions and state land reforms. Agricultural land prices have increased due to better groundwater levels and conservation initiatives. Additionally, industrial development and proximity to Mysuru and Nanjangud have boosted real estate prices. However, the rising costs have made it challenging for middle-class families to afford property.
Chamarajanagar district, which had once been considered underdeveloped, has reportedly seen a significant rise in land prices in recent years. Land within a 25-kilometer radius of the city is now being sold for approximately INR 22 to INR 26 lakh per acre. Experts have attributed this surge to increased investments from Non-Resident Indians (NRIs), Gulf returnees, as well as buyers from neighboring states of Kerala and Tamil Nadu. They believe that state land reforms have played a key role in driving this trend.
According to reports, the demand for land in the area had been relatively low just five years ago. Back then, an acre of land in Chamarajanagar was priced between INR 2 lakh and INR 5 lakh. However, the situation has drastically changed, and now, there is strong demand for both agricultural and non-agricultural land in the district.
The increased demand for agricultural land is believed to be due to improvements in groundwater levels, which have been facilitated by various water conservation initiatives implemented by both the central and state governments. Programs such as lake rejuvenation, rainwater harvesting, and watershed development have reportedly contributed to better water availability, making agricultural land more valuable. As a result, agricultural land prices have increased significantly.
A large number of buyers from Kerala and Tamil Nadu have been actively purchasing agricultural land in Chamarajanagar, offering between INR 25 lakh and INR 30 lakh per acre. The price of land varies depending on factors such as proximity to roads, highways, and the cultivation of high-demand crops like ginger, bananas, and plantation crops.
Certain areas around the Badanaguppe-Kellamballi Industrial Area, as well as along the Chamarajanagar-Nanjangud Road, Mysuru Road, and the Chamarajanagar-Gundlupet stretch, have seen notable price hikes. One reason for this is the government's offer of INR 45 lakh per acre to farmers whose land is being acquired for the expansion of the Badanaguppe-Kellamballi Industrial Area. This development has further driven up land prices in surrounding areas, as noted by Iayasimha, president of the Chamarajanagar Small Scale Industries Association.
In addition to the land price surge, there has been a notable increase in housing and site prices in and around Chamarajanagar. This is largely due to rapid industrial development in the region, including the expansion of industries, its proximity to established industrial areas in Nanjangud and Mysuru, and the creation of new employment opportunities. As a result, the real estate market has boomed, with prices for residential sites in city-centric areas now ranging from INR 30 lakh to INR 40 lakh for a 30x40 ft plot. In contrast, plots on the outskirts, such as those in areas approved by the Chamarajanagar Urban Development Authority (like Masagapura, Yedabetta, Madapura, Shivapura, Santhemarahalli, and Mariayala), are priced between INR 12 lakh and INR 16 lakh for the same measurement. Other towns in the district, including Kollegal, Hanur, Gundlupet, and Yelandur, have also seen similar price hikes, with site prices reaching INR 30 lakh to INR 40 lakh for a similar plot.
The rapid increase in land prices in Chamarajanagar district reflects a mix of economic growth, investment influx, and infrastructure development. While this boom benefits investors and landowners, it has created affordability challenges for local residents, particularly middle-class families. The rise in agricultural and real estate land values, driven by factors like improved groundwater levels and industrial expansion, underscores the district's transformation, but also highlights the need for balanced development to ensure that local communities are not priced out of the market.
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