I do not know about other states but this holds true in Andhra Pradesh where there is Congress rule.
- Frequent and absurd land auctions conducted by the Govt have jacked up the price of land in all surrounding areas around Hyderabad. Real estate companies have devoured almost 50-100 kms radius of farm land around Hyderabad. All the farmers have now sold their land and have become crorepathis, so it makes little sense to carry on farming. This has caused scarcity in fruits and vegetables around this area.
- The govt has also given away acres of land for SEZ and other companies all around Hyderabad and this has a spiralling effect on the land prices. A 200 sqyds plot of land now costs above 30 lacs and apartment prices are anywhere above 30 lacs to 1 crore. Even the software guys are finding it difficult to buy a house/flat in this market. The NRI's and the rich seem to have bought multiple plots and houses all around Hyderabad and the common man cannot buy an affordable house.
- The simultaneous arrival of retail outlets like Reliance Fresh, Heritage...etc have also played a part in increasing the prices. There have been cases where these retail outlets have caused shortage in some food items and have then increased the prices.
- Hyderabad has equalled / exceeded Bangalore on the inflation count in the past 2 years. Hyderabad generates almost half the amount of IT/ITES revenue of Bangalore but there is unnecessary hype and rumour.
