ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Land Price in Indian Cities-Dimensions and Determinants of Change

below). Underreporting of the land price data is a crucial feature of this source of information as the land sold by the agencies like municipal corporation, registrar of lands, urban development agencies, etc, always transact at reserved price or predetermined price which is subsidised. Therefore, the market price of land is not reflected in the prices reported by these agencies. However, in spite of understatement of prices Table 1 indicates that in most of the capital and metropolitan cities the annual rate of increase (simple average rate of the capital and metropolitan cities the annual rate of increase (simple average rate of growth per annum) in the minimum land prices has been high during the early eighties. Only in Imphal and Panaji, does there seem to be a decline in the minimum price of land during this period. The maximum land prices also recorded mostly a positive annual growth rate Even in the medium towns the rate of change per annum has been high whenever the change has occurred in the positive direction. While emphasising the steep rise in land prices, Gupta [1985] argues that the increase in land prices is not simply due to marked increase in demand for land and rise in the general price level. Concentration of ownership in land raises the land price sharply as the land market becomes purely a seller's market creating artificial scarcity of land. Moreover, the concentration of ownership in land makes land acquisition more expensive as during acquisition the compensation has to be paid according to the market prices as per the Land Acquisition Act, 1894 and the new Urban Land Ceiling Act of 1976 which still relies on the former for the determination of compensation.

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