. ..-..

".·.·
.
. .
. . .
. ~ .

. ·•.

Chapter V .

REAL ESTATE IN.TAMILNADU

 REAL ESTATE IN TAMILNADU

The present chapter on Real Estate discusses the significance of

Real Estate business in Tamil Nadu and its boom in recent times. Real

Estate development in various place of Tamil Nadu has tremendous

impact on the economy. Places like Trichy, Chennai, Coimbatore and

Madurai deserves a mention. A detailed analyses of Real Estate in

Trichy has been focused here. Real Estate activity, which till a few years
ago was restricted to places with good transport connectively, has now

spread deep into remote locations and obscure villages. Villages beyond

the suburbs of Chennai, Coimbatore, Madurai and Trichy are witnessing

a boom from small time and leading players in the business. For

instance, Villages around Guduvanchery, Urapakkam, Padappai and

Maraimalai Nagar are witnessing Real Estate activity that was till some

years ago , seen only in urban pockets of Tambaram. And today, houses

have began to mushroom in these areas due to Grand Southern Trunk

Road network, suburban electric train services and other infrastructural

facilities have become ideal destinations for the middle class and

salaried sections to purchase a plot of their choice. Distance issue still

prevails, but hardly matters. Even in rural local bodies such as

Manivakkam and Urapakkam of Chennai has become favourite

destinations for home seekers even though basic amenities are far from

satisfactory . The demand for land was phenomenal about three years
 346

ago, now there is a soaring demand not only in Chennai Suburbs, also in

and around the suburbs of Madurai, Trichy, Coimbatore and Chennai

municipal areas. So called prime urban cities, are no exception, where

urban governance principles and processes deserve to play a vital role.

In this context, it is necessary to understand the theoretical position and

city growth that reads to real estate boom in Tamil Nadu.

CITY GROWTH

The city of Tiruchirappalli has held the center stage for long

periods of history. The city ofTiruchirappalli has been many a historical

battle; Tiruchirappalli was under the rule of the Cholas and Hoysala

dynasty as well. The Nayaks built the town around the famous Rock

Fort Temple. During the 16th and 18th centuries, the Nayaks had

developed the Sub-urban areas of Tiruchirappalli. The Christians

Missionaries had developed several educational institutes during 19th

century. The Tiruchirappalli Municipality was established in 1860 by a

G.O.No.lll8. It is to be noted that after Chennai (Madras),

Tiruchirappalli was the second city to be made a Municipality in Tamil

Nadu.

There are Eleven Historical sites m Tiruchirappalli Urban

Agglomeration namely, Rock Fort, Thayumanavarswamy and Pillaiyar

Temples, Teppakulam, The Nawab Palace, the Nadir Shah Mosque,

Golden Rock Srirangam Temple, ThiruvaniKoil, Subramanya Temple,

 347

Upper Ani cut and Grand Ani cut. Some of these famous monuments in

Tiruchirappalli Urban Agglomeration have made this place a much

frequented tourist city.

Its prominent position in the Cauvery River delta and as the

headquarters of the district has enhanced Tiruchirappalli's growth. The

diversification of its economic base through the establishment of heavy

industries such as the Bharat Heavy Electricals Limited (BHEL), small

arms project, cotton textile mills, steel structural works etc., and other

ancillary industries, have made it an important industrial center.

According to available sources of date almost 89% of industrial

employment is within the 35 large scale industries and 7,016 small scale

industries. There are 200 informal industrial units with a workforce of

457 employing less than five percent of the total industrial labour force

in the city. BHEL and Ordinance Factory are the two important large-

scale industries located outside the city boundary. In addition to its

industrial base, Tiruchirappalli is known for its handloom cloths, wood

and clay works, glass bangles and artificial diamonds.

STATUS OF JURISDICATION

Tiruchirappalli was up graded as a Corporation in 1994, annexing

the sub-urban areas. Tiruchirappalli Urban Agglomeration, which

consists of three municipalities namely Tiruchirappalli, Srirangam and

 348

Golden· Rock as. well as five town Pancyayats and39 Villages

Pancyayats.
-- ,. .The
.. .
· area of.. TUA is 281 sq.Km. Among the ·.three
- -

municipalities' which together account for 46.3 percent of the total area

of the Corporation, Golden Rock is the largest followed by

Tiruchirappalli and Srirangam. In the case of town panchayats, Sathanur

is the largest and Ariyamanagalam the smallest. The area covered by

village panchayats ranged from 0.75 per cent to 2.23 per cent. The total

population of Tiruchirappalli Municipal Corporation was 3 lakhs as on

01.04.1994. About 79 per cent of population lives in corporation areas,

16 per cent in the town panchayats and the remaining 5 per cent in

· village panchayats and the Golden Rock railway workshop colony. The

central government adopted the concept of urban agglomeration only

from 1971 census, Tiruchirappalli urban agglomeration (TUA) is in the

category of second class urban agglomeration in Tamil Nadu.

... Table 5.1 Urban Agglomeration Classification

' ' . .
p

in:TUA .

Area · ' Area .Area .

Town .Village
Municipalities in in. in
Pancbayats Pancbayats ·
Sq.km Sq.km Sq.km
Tiruchirappalli 23.26 Ariyamangalam 7.99 Tiruchy 159.81
Srirangam 18.47 Alathur 7.75 Taluk 36
Viii age
Golden Rock 25.59 Pirattiur 10.59
K.Abishekapuram 9.62
.
·":T"
Sathanur Puthur 18.06
Total 281.14
Source : Tiruchirappalli Taluk Office Report, Tiruchirappalli.
 349

DEMOGRAPIDC FEATURES

Growth in Population

Tiruchirappalli Urban Agglomeration (TUA) is the fourth largest

agglomeration in Tamil Nadu,has a population of about 7,11,862 bulk·

as per the 1991 census. The growth of the city is attributed to its

. recognition not only as a place of commercial importance but also a seat

•
of higher education and as a nerve center of the central government and

state the government regional officer (See Table -5.2).

Table 5.2 Populating Growth in Tiruchirappalli Urban

Agglomeration, 1861, 2001

Population Decadal Population Decadal

Year
inTUA Growth in City Growth
1861 60,000
1871 76,530 27.40
1881 84,449 10.34
1891 90,609 07.30
1901 1,04,721 15.57 .
191i . 1,48,311 16.09 1,23,512 17.94.
'
1921 1,48,311 -3.19 1,20,422 -2.51
1931 1,81,443 26.38 '1,42,842 18.61
1941 2,02,654 11.69 1,59,566 11.71
1951 2,94,233 45.19 2,18,921 37.20
1961 3,38,881 15.17 2,49,862 14.22
1971 4,64,624 37.11 3,07,400 23.03
1981 6,09,528 31.19 3,62,045 17.76
1991 7,11,862 16.78 3,87,233 6.95
2001 8,66,712 21.75 4,44,520 14.79
 350

Over the last five decades the population of the municipality

(Now corporation) and its urban agglomeration has increased but at a

declining rate of growth. Between 1971-1981 and 1981-1991, the

decennial growth rate of the city and the urban agglomeration came

down from 17.76% to 6.96% and from 37.11% to 16.78 per cent (See

Table-5.2). 9.41% of the district population lives in Tiruchirappalli

(1991census). The highest growth rate of urban agglomeration (45.19%)

was witnessed in the 1951. The high growth rate during this period was

mainly by on account of industrialization (for example Golden Rock

Railway workshop) wartime scarcity conditions in rural areas leading to

migration. Between 1971 -1981, the population was increasingly drawn

into the urban agglomeration, due to migration for education and the

development ofBHEL and small scale industries. It is also observed that

during this period of 30 years the population of Tiruchirappalli urban

agglomeration as well as that of the peripheral area more than trebled.

DENSITY OF POPULATION

A good indicator of the city's demographic pressure is the density

of population. Population density has increased from 15,565 persons per

Sq.km. in 1981 to 16,835 per Sq.km. in the year 1991 in the increase has

been higher in the case of city. The density of the urban agglomeration ..
_.,...
' increased only between 1981 and 1991 from 4.204 to 4.293 per sq.km.

and between 1991-2001 from 4.293 to 4.722 per sq.km. (See Table 5.3).
 351

Table 5.3

Population Density in TUA

Density
Year Population Area (Sq.Km)
(Persons I Sq.km)
1961 3,38,881 64.26 5,274
1971 4,44,624 94.52 4,704
1981 6,09,548 144.990 4,204
1991 7,11,862 165.810 4,293
2001 . 8,66,712 183.520 4.722

OCCUPATIONAL STRUCTURE

The tertiary sector constituted nearly 66.59 per cent of the total

city's workforce in 1991, whereas in the Population in the urban

agglomeration only 58.47 per cent were in this sector. While in the city

the workforce in the tertiary sector increased significantly between 1971

and 1991, from 61.77% to 66.59% (7.80 percentage of increase), in the

urban agglomeration the increase was from 58.71% to 58.47% (0.51

percentage of increase). As a result, decrease in the secondary sector

activities activity in Tiruchirappalli, the secondary sector accounted

from only 30.20% and 33.83% of total employment in the city.

MIGRATION
Migration is considered to be an important contributing factor to
I'
the process or urbanization. It may be 50 per cent of urban population in

• TUA are migrants (Rural to Urban migrants). The migration data are not
 352

available for TUA. However, the researcher interviewed government

officials and REPs (Real Estate Promoters) and a cross section of the

public, who have expressed that education in TUA. Besides the "Pull"

and "Push" factors, a good number of the rural based wealthy people

and those of the upper middle income group and middle income group

from various other urban centers migrate to the TUA for the purpose of

their children's education. Jurisdiction change in the form of emergence

of new towns in an important cause for the increase in urban population.

Changes in urban area jurisdiction can be done in two ways: the

government's decision declaring a particular place as a urban center and

the emergence of urban agglomeration.

RAPID URBANIZAION IN TUA: EXPLORATION OF ITS

CAUSES 1

The urban character of TUA reflects the demographic growth that

has occurred as well as the nature of urban economy previous to 1950.

As there were no industries, the main source of income for the working

class as well as other people was centered around agriculture. As such

the town also was confmed to the old Tiruchy Fort, Palakari and

Woriyur surrounded by paddy fields almost on all sides. This was the

position of TUA for several years. During this time, TUA was known
..!...-
'
for its educational institutions apart from agriculture famous for

education. Hence, the migration to TUA was limited. After the setting
 353

up of the BHEL with Czech collaboration in the late fifties, the TUA

began to grow rapidly. Thus, large outside population working in BHEL

and other accessory units and industrial estates had started migrating and

settling at the TUA largely due to the availability of good drinking

Cavery water, low prices of plots, low cast of living etc. But, the growth

was slow till the 1970's as the suburban areas grew slowly on all sides of

TUA thereby making the expansion of the town on the vast vacant areas

like Kajamalai, K.K.Nagar, Kaurumandapam, Airport. After 1970 the

government also came forward to recognize this town as urban area and

the urban agglomeration status was granted. After this, the next phase of

transition began towards converting the agricultural lands into

residential area. Numerous plots sprang up and the people who settled at

TUA came forward to buy lands and construct house in areas which

were once paddy fields. The administration also realized the importance

of providing basic amenities like drinking water, electricity, roads;

transport etc. to these newly started residential places.

The OFT, HAPP, the setting up of the Bharathisdasan University,

Steel rolling mills, the decades old Railways, Golden Rock workshop,

the expansion of Railways, availability of good educational institutions,

good drinking water from river Cauvery all contributed to the rapid

urbanization of this medium town. TUA is one of the holy cities in

Tamil Nadu and its own historical background of this urban

agglomeration which stands fifty urban agglomeration in Tamil Nadu.

 354

Besides, being a well known center of religious shrines, historic

monuments and tourist attraction, the TUA continues to drawn migrants

of various intevers and backgrounds.

The rapid growth has also brought about major changes in the

socio-economic structure of the city. The primary sector now accounts

for only about 7. 70 per cent of the workforce whereas; the secondary

sector employees 33.83 and the tertiary sector 58.47 per cent (Census of

1991). The tertiary sector including those of the informal sector has

become including those of the informal sector has become significant.

The city continues to attract immigrant from its rural hinterland for

various types of manual work. This tremendous growth has braught in a

number of problems. Particularly, relating to the infrastructure. Central

to most of the socio-economic change taking place in TUA is the

problem of land, its availability as well as its efficient utilization. The

changing pattern ofland use and the growing needs of the population

have brought into sharp focus the urgent need for formulating an

appropriate land policy for TUA.

It is generally believed that urban growth is mainly due to three

components, viz. natural growth, migration and changes in urban

jurisdiction. The TUA connects three municipalities and five town

panchayats and 36urban villages in and around the city and this is one of

the reasons for the fast urbanization of the TUA.

 355

LAND USE PATTERN IN TUA

Table-indicates the land use pattern m Tiruchirappalli Urban

Agglomeration. TUS occupies an area of 28114 hectare of land. It could

be observed from the table that out of the total land use, residential land

ranks first (8.16%) following by the land used for transport and

communication (2.74%). The land area under commercial land use is

0.47 per cent and industrial land use ion 0.99 per cent oftotalland use.

Table 5.4
Urban Land Use Pattern in TUA

Land use Area (in %of the total % of the total

classification Hetares) area of the city urban land
Residential 2294.00 8.16 48.89
Commercial 133.00 0.47 2.83
Industrial 127.00 0.99 5.90
Transport 771.00 2.74 16.44
'"
Public and Semi Public . 1217 4.3 52.94
Sub-Total 4642.00 16.69 100.00
Agricultural
Wet 11069.00 39.34
Dry 7351.00 26.15
Water Bodies 5010.00 17.82
Total 28114.00 100.00

Source: Regional Town Country Planning office. Tiruchirappalli -1

Year:l995.
 356

Residential development is high in the old parts of the city such as

Fort, Puthur, Woriyur, Tennur and Beemanagar, Newly planned areas

have also emerged such as Tiruchirappalli, Ramalinganagar, Singulam

Colony, Kajamalai and Ponnagar. A recent study indicates that the urban

fringe areas of Tiruchirappalli are rapidly being converted in to

residential use. Within the city, the conversion of agricultural land is

more towards the south and north sides. The major commercial activities

of Tiruchirappalli are concentrated around the Main Guard Gate area

and Gandhi market area. The commercial area in the city also serves the

region as a whole. The major industry within the planning area is the

railway workshop. · There is one industrial estate developed at

Ariyamangalam. Two major industries, Bharat Heavy Electrical Limited

and small Arms project, are located outside the planning area, i.e. In

Navelpattu New Town area. In addition the development of industrial

estates like Thuvagudi, Thiruverambur and Avoor Road have influenced

the growth of the urban area.

BASIC SERVICES AND OTHER INFRASTRUCTURAL

FACILITIES HOUSING AND SLUMS

In Tiruchirappalli Urban Agglomeration the total number of

houses in 1991 was 1,150,457 of which 71.28% were pukka, 8.83%

kutcha. In Tiruchirappalli City Corporation total houses in 1999 is

1,08,900 house, of which 73,500 are owner of the houses followed by

 357

rented houses 23,200, industrial 350, hospital 703, and commercial

11,094. Studies reveal that the shortage of housing is acute in the core

areas of the city where a stiff competition exists between different land

uses. This is more so in the case of areas such as Palak:ari and Woraiyur,

which are industrial, commercial and residential simultaneously.

Furthermore, the city has outgrown its boundaries and the slipovers have

been accommodated in suburds like Karunanidhi Nagar, Sundarnagar,

Highways colony, State Bank Colony in Abishekapuram Town

Panchayat, Srinnivasanagar in Ananthanallur Panchayat, Cholan Nagar,

Cheran Nagar in Piratiyur Town Panchayat and in Ponmalai and

Ariyamangalam.

It terms of basic services, what can be seen is the following

82.2% and 84.35% of houses have electricity within the agglomeration

and city respectively, 72.17% and 67.12% have safe drinking water and

45.67% and 52.35% have toilet facilities. However, only 50.50% and

56.66% in the urban agglomeration and city had all the facilities

together (See Table- 5.5) .

•
7
 358

Table 5.5

Percentage of Households Having Electricity, Safe Water and Toilet

Facilities in TUA 2001

Uraban
Services City
Agglomeration
Electricity 82.02 84.55
Safe drinking water 72.17 67.14
Toilet 45.67 52.35
Electricity and toilet 66.72 70.12
Toilet and safe drinking water 52.12 57.88
Electricity and toilet 62.15 68.72
All the three facilities 50.50 56.66
None of the three facilities 2.32 1.70

- High land values (Thillainagar, Cantonment, Puthur, Palakari,

Bheemanagar and central business areas) has led to the proliferation of

slums. There are 155 slums in Tiruchirappalli with an estimated

population of 77,610 which excludes those in tenements provided under

slum clearance schemes. Each shelter unit in these slums houses on an

averaged 1.5 families. More than 60 percent of the total shelter units are

located in 33 large slums.

According to Survey of Slums 1990 report, nearly 70 percent of

the slums in the town are no government land and over 85 percent of the

slum populations in Tiruchirappalli are females. Of the total populated.

The average month household income of his families to is Rs.693.

 359

Table 5.6

Slums by size in Tiruchirappalli urban

Agglomeration 2001

Shelter units Number · Percentage Shelter Units Number

50 and below 90 58.1 1932 18.3
51-100 32 28.21 2213 21.00
101-250 25 20.6 3741 35.4
241-34000 8 5.2 2667 25.3
155.00 100.00 10553 19900.3
Total 155.00 100.00 10553. 100.00

Source: Economic Group, 1989, Survey of slums in Tiruchirappalli.

About 45% of the families live in rented accommodation. The

average monthly house rent is Rs.75 though around 55%live in own

accommodation only a fifty of these have their house sites as well. This

acquisition includes purchase of plot without any legal title. The

majority depend on public facilities for drinking water, while 45% of the

slum population use public latrines. In -house latrine facilities exist in

one out of eight households only. Electricity connections are available in

approximately 40% ofhouses.

WATER SUPPLY AND DISTRIBUTION

Tiruchirappalli is endowed with a better supply of drinking water

when compared to other towns of Tamil Nadu since it is located in the

Cauvery basin. A study by the India Remote Sensing Agency revealed

 360

that, the nver Cauvery had earlier flown VIa Ariyamagalam,

Kainparasampatti, Kelakalkandarkotai and all along the present day

course ofKattur river._ This old course of Cauvery forms favorable zones

of moderate ground water potential. The younger flood plains which are

found to the south of the river Cauvery (Muthurasanallur, Rock Fort and .

Ariyamangalam) and areas north of Colleroon (Metupatti, Melavaladi

and Sirukampur), forms the best ground water reserve. In 1925, 29,578

household had pipe water supply in the house and another 1,912,

household have easy access to stand pipes within a distance of 200

· meters. The total surface water abstraction was 54,850m per day (54.85

mld) and the per capita supply 180 lpcd. Moreover, as illustrated above,

Kollidam rivers as well as their distributaries like Uyyakondan Canal

flow through the city. The headwater works which is located in

Kambarasampettai five kilometers west of the town, was installed in the

.,.
.
year 1985. Later new wells were constructed as the old ones became

rundown. At present there are five infiltration wells and two collection·

wells. The infiltration wells supply water to Marakadai overhead tank,

Rockfort tank and Woraiyur tank whereas the collector wells pump the

water to Puthur, Cantonment, Ponnagar, Kollukuzhi, Kajamalai and

Tiuchirappalli Junction area.

Water distribution, nonetheless, is somewhat skewed in nature.

While some areas such as the newly developed industrial belt like

. BHEL in Thiruverumber and ordinance factory near Navelpattu, which

 361

are far away from the river, get twenty hours of water supply, unnerved

pockets exist such as Mudukkupatti Mudaliar Chatram, Amdakomdan,

Kajathopu and Nelluthope.

SEWAGE AND DRAINAGE

Parts of Tiruchirappalli Corporation are endowed with an

underground sewage system receiving 49 mid of sewage per capita

sewage contribution of 1151pcd. The· system consists of seven sub

pumping stations. These seven sub-pumping stations collect the sewage

from seven blocks and pump it into the main pumping stations from

where it is propelled into a treatment plant located in Panjapur. It is

away from 12K.M. to the city. The sewage is treated by biological

degradation in three facultative ponds with an area of 574 acres.

Eventhough the drainage system has. been designed to serve

22,000 house conriections, 6,874 houses

. or. 31% are connected to the

system. At present 84.2% of the area has an open sewage system and

20% of the area has not drainage facilities where sludge water often

stagnates to from pools. The area which face these problems are mostly

located in the peripheral areas namely Puthur, Thillainagr, Ponnagar etc.

ELECTRICITY

The annual gross electricity consumption in the city is 18,76,000

kilowatt hours (kwh). Of this 61.84% is consumed by household sector,

 362

16.69% and 21.47% by industrial and commercial sectors respectively

(Table 5.7). The percentage ofhouseholds having electricity is 7K89%

and 77.92% in the city and the urbari agglomeration respectively.

Table 5.7
'
Electricity Consumption in Tiruchirappalli City 2005

Use Percentage of Consumption

1. Household sector 61.84

.,_
. ..
2. Industrial sector and government 16.69

3. Commercial sector 21.47

Total 100.00
r
Source: Tamil Nadu Electricity Board, Tiruchirappalli, 2005, Office
Record.

' . '
TRANSPORTATION AND ROADS
~-
'
The main .node of mass transportation is bus. Number
. .of .private
' . .

and State Transport Corporation ofTarnil Nadu buses are in operation in

all parts of the planning area. Long distance buses are operated on all

directions from the city which accommodates a heavy inflow of daily

commuters. Tiruchirappalli has a good road infrastructure. Presently

599.67% kilometers of road exist in Tiruchirappalli Municipality. 52%

are B.T rods. 19% are W.B.M roads and 29% earthen roads.
 363

Table 5.8

Quality of Roads in Tiruchirappalli City 2005

'r
Road Type Length (km) Percentage to total

B.T Roads 31.82 52.00

W.B.MRoads 113.93 19.00

Earthen Roads 173.92 29.00

Total 599.00 100.00

Source: Tiruchirappalli Corporation, 2005, Administrative Report.

Tiruchirappalli airport is placed in the international airport list.

Airlines are now operated from here to Chennai, Madurai,

Thiruvananthapuram, Sri, Lanka and Dubai Airport located around 400

acres in TUA.

HEALTH SERVICES

In the city, there are eight hospitals of which the Government

Medical College Hospital and Child Jesus nursing training institute

hospital are the biggest ones. They have bed strength of 398 and 208

respectively. Many nursing homes have come up in the city especially in

Thillainagar area. There are about 14 maternity homes of which 10 are

owned by the Civic Corporation. There are about 15 dispensaries

functioning in the town treating about 5000 to 6000 out patients daily.
 364

LAND MARKET OPERATION

A three-tier zone may be observed in the TUA: pnmary

residential, mixed residential and commercial zones. The old residential

areas with high concentration of trade, commerce, transport and house·

hold industries have high density in TUA. Besides, agricultural lands are

being converted into human habitation through the real estate business.

Table 5.9 ·

Urban Land Market Operation in TUA

Agencies for land market operators Sectors

Real Estate proprietors (REP) and Private
Individual operator
HUDCO State own public sectors
Cooperative housing society . Cooperative society

The increase in the number of transactions and the higher larid

values have influenced the continuing urbanization of the TUA and has

brought to limelight the different agencies involved the process, as

indicated below: (a) the real estate proprietors and individual operators

(it is fully private) (b) HUDCO (a government undertaking) for

constructing houses and selling lands for lower income group, middle

mcome group and economically weaker sections providing

resettlements, (c) the cooperative housing societies engaged in

 365
' '
promoting 4olisillg facility by way of construction and sale. These three

agencies
,. play a vital role .. in·:prortioting
:
urban housing as well as in the ·

dymm~ics Of the land market.

'
In the light of forgoing description of the process of urbanization

in Tiruchirappalli Urban Agglomeration, two things can be inferred.

Despite the prevalence of some of the urban characteristics such as

population growth, migration and physical expansion, still TUA does

not exemplify as a typical urban centre when compared to other centres

like Madurai and Coimbatore. This is a point to reckon with due to the

fact that typical urban centres face severs urban land market problems.

Secondly, uhlike cities located in coastal areas, urban growth in

Tiruchirappalli is in circular form. This from of physical expansion

leads to conversion of agricultural lands for urban uses, more than cities

located in coastal areas. The issue is more controversial as to whether or

not to go for transferring agricultural lands for urban habitation. The

' . '~

problem in TVA is compounded by the fact that agricultural larids in the

periphery are more or less coming under Cauvery river .basin. Lands •·

once converted for housing and other purposes can hardly be redeemed·

for the original purpose. More discussion will follow in the forthcoming

chapter.
 366

THEORETICAL POSITION

Urban land use has been studied by various scholars of different

disciplines from their respective. Economics, geographers, sociologists

and town planners have analyzed this problem in the social as well as a

spatial context. Thus, there have been attempts to derive general theories

of the spatial distribution of land use in metropolitan area or town, or

city.

The Concentric Zone model developed by Burgess m 1925,

theorized a land use pattern comprised several concentric zones of

undermined width. He derived from the observation of American Cities

• in general, and Chicago in particular, and contributed the spatial

expression of the ecological principles of competition, segregation,

dominance, inversion and succession. He represents ideal construction

of the town or city expand radically from its central business district -on

the map "The Loop" (i) encircling the downtown area there is normally

and area in transition, which is being invaded by business and light

manufacture (ii) A third area (iii) is inhabited by the area of

deterioration (iv) but who desire to live within easy access or their work.

Beyond this zone is the "residential area" (v) of high class apartment

buildings or of exclusive "restricted" districts of single family dwellings.

Still farter, out beyond the city limits, in the commuters' zone -suburban

areas-minute ride of the central business district. This model is also

 367

considered too limited historically and culturally to enable is clear

understanding of land use pattern of modern metropolitan cities.

However, thus pioneering effort provided a generalized view of

organization of land uses in urban areas, based on certain well

articulated principles of urban spatial policies. It is very useful for clear

understanding about present study area land use pattern and constituted

the spatial development in the study.

The sector model of model of urban land use structure was

developed by Homer Hoyt in 1939. He has accessed to detailed housing

data for 142 American cities and therefore the critical elements in his

model are high rent and low rent residential neighborhood. The model

has stated that high rent residential neighbourhoods are instrumental in

shaping the land use structure of the city, is primarily concerned with

residential uses and showed that the location of high status areas

determined much of the other land se patterning with the city. Regarding

the location of high rent neighbourhoods, several general factor were

found to apply.

1. High rent residential growth tends to provide from the giVen

points of origin, along established line of travel or towards another

existing nucleus of building or trading centers.

 368

2. The zone of high rent housing tends to progress towards high

ground which is free from the risks of floods and ocean fronts,

where such water fronts are not or industry.

3. High rent residential district tend to grow toward the section of the

city which has free, open country beyond, the edges and away

from "dead end" sections which ·are limited by national or

artificial barriers to expansion.

4. The high rent residential neighbourhood tends to grow toward the

homes of the homes of the leaders of the community.

5. Trends of movement of office buildings, banks, and stores, pull

the higher rent residential neighbourhoods in the same general

direction.

6. High rent residential areas tend to develop along the fastest

existing transportation lines.

7. Growth of higher rent neighbourhoods continues m the same

general direct for long period of time.

8. Deluxe high rent apartment areas tended to be established near the

buildings center is old residential areas.

9. Real estate promoters may bend the direction of high grader

residential growth. Thus, according to Hoyt's model, the high rent

•
-------- --------

369

residential neighbourhood are basic m shaping urban land use

structure kd contract in a variable manner, other hand use zones

are located in accord with location of high rent neighbourhood in

developing with particular reference to transportation arterials

(factor 6), tend to develop a sector or wedge shape zone. This

sector is likely with passage of time, to be modified by the apex of

the sector (factor 5). And widening of the sector on the enter

periphery (factor 3). There are few factors applicable to the

present study area. Therefore, Hoyt has primarily concerned in the

residential uses and showed that the location of high status areas

determined much of the other land uses patterning in the city.

Therefore, the city structure becomes sectoral in character. Thus,

according to Hoyt's model, the high rent residential

neighbourhoods are basic in shaping urban land use structure.

The multiple- nuclei model was developed by Harris and Ullman

in 1945. This model states that there is not a single nucleus of city that

shapes the land use pattern, but a number of separate nuclei and land use

- based on them were said to reflect a combinations of four factors.

1. Certain activities require specialized facilities, such as maximum

accessibility, water large amounts ofland, etc.

2. Certain like activities group together because they profit from

Cohesion, such as financial and office building districts.

 370

3. Certain unlike activities are detrimental to each other, such as

industrial and high rent residential districts.

4. Certain activities are unable to afford the high rents of the most

desirable sites.

The multiple nuclei model according to which cities do not grow

simply about a central business district but are formed by the enlagration

of a number of separate nuclei the urban fabric. The multiple nuclei

model also exemplifies in the modem city, where there has been a

spontaneous or an administratively imposed segregation land use in

specific districts. The spatial growth of the city may be attributed to

three major factors: (a) increase in population due to immigration or

natural growth (b) absence of natural boundaries to the physical

expansion of the city, and (c) changes in the administrative boundaries

of the city.

Urban Land Use Model ofTiruchirappalli Urban Agglomeration

1. Religious Centre (Slowly became Central Business

District).
2. Mixed Residential Areas

3. Dalits Pockets Locations

4. Sub Urban Areas with Central Business District

5. Newly Developed Sub urban areas

6. Newly Developed Sub urban areas

 --- ------------ ------------------

371

7. Converting Agricultural lands for human habitations.

8. Rural Villages located in Urban Agglomeration.

·~-

9. Agricultural Lands Pockets

Most of the Indian cities are located with religious point which

determines the Central Business District. But, we compare to urban

location theories like Concentric Zone Model, Sector Model & Multi

Nuclei Model that may be applied a few cities in India. Due to Religious

Point, many people are coming for worship and purchasing textiles

rather any other commodities.

1. The Central business District is located with Hotels, textiles

shops & Jewelry shops in this area.

2. Mixed Residential areas located with Residential with

Business activities near by the CBD (Located with

Government Officers, Central Point of the Transport

Operations, other business activities and educational

institutions).

3. Dalits Pockets: Near by the CBD, Dalits pockets are

located but there are no land value appreciations in these

pockets even through it is very closer to CBD.

'-.,...
I
4. City is located with other sub urban with CBD (It connects
near by Villages.)
 372

5. Newly Developed sub urban areas (Agricultural lands

(Dry) were converted for human habitation).

Above model differ from other urban location theories.

' r

TliECONVERSION OF AGRICULTURAL LANDS

i
-· ~ } .'

Urbanization process · comprises various different facets and

transition of· agricultural · l~qs for urban use is one such important
• p !

aspect. This is fairly a newcand recent phenomenon. Evidences suggest

that this has become a common feature in most of the Asian countries

and India is no exception. Keeping in view the pace of urbanizing, it

may be inevitable to"bring certain position in the fringe areas for urban

uses such as housing, commercial and industrial establishments. The

question remains as to whether this a corollary effect of urbanization or

whether this process needs to be encouraged or checked. What are the

consequential effects of this feature on agriculture in the long run? Will

-+-
' it lead to encroachment of agricultural lands for urban purpose? What

should be critical limit beyond which this practice has to be curtailed?

The present study addresses these questions in the context of ·

Tiruchirappalli Urban Agglomeration as this problem has seldom

attracted the attention ofsocial scientists.

 ~I
373

Table 5.10
Urban Land Conversion Wetland and Dryland in Urban Fringe Areas in TUA

Dry lands in Total fringe Area brought

Total'area Wetlands in Wet areas Dry areas
the fringe areas wet under non-agri
_Urban areas in TUA under the fringe converted in converted
areas in and dry in purposes in
TUA areas in 1976 1996 in 1996
1976 1976 1996
Tiruchirappalli North 3987 1558 147 17.05 1045 985 60
Tiruchirappalli South 5400 2885 322 3207 2019 1874 ' 145
Manigandam 5956 1125 4283 5408 3210 888 ' 2232
Srirangam 4649 2100 619 2719 611 514 97
Vengur 4868 2220 459 2679 485 461 24
Somarasampetai 3254 858 149 1007 56 74
Total 28114 10746 5979 16725 7410 4778 2632

Percentage of conversion of Agri Percentage of total wetland Percentage of total Dry land
lands to non-agri purpose conversion conversion
61.3 63.69 40.82
63.00 65.00 44.10
28.66 79.00 52.12
22.48 24.48 15.68
10.10 24.77 5.23
13.00 6.53 46.67
Source: Tirchirappalli Taluk Office. ,;·'
 374

Not withstanding the difficulties involved in collecting data with

respect to transition of lands from traditional purposes to construction

and establishments of industrial and commercial purposes, the

researcher, in the present study, managed to get required information

from the concerned Village Administrative officers (VAOs)

The date were available for two periods namely 1976 and 1996.

Over a period of two decades, Tirchirappalli Urban Agglomeration

(TUA) witnessed a considerable change in this regard. This change was

observed in six zones of Tirchirappalli taluk and they include

Tirchirappalli North, Tirchirappalli West, Manigandam, Srirangam,

Vengur and Somara-sampettai. Of the total area of 28,114 hectares, as

much as 7,410 hectares, (about 26%) were converted for non-

agricultural purposes. Both wet as well as dry lands were subjected to

this process. Out of the six pockets, Tirchirappalli South, which covered

areas such as K.Abishekapuram, Sengulam (now called Highways

Colony and Supuramaniyapuram) Kelakurchi, Ponmalaipatti, Alandur

and V araganary, Registered maximum of area turned for non-

agricultural purposes.

Vengur is the pocket which recorded the least in terms of areas

remaining still under agricultural purpose. It is about 38.7 per cent in

'
'r-
Tirchirappalli West and 89.90 per cent in Vengur. The wet land

conversion is twice that of dry lands. About 79 per cent of wet lands fell
 375

under Manigandam zone and only 6.5 per cent under Somarasampettai.

On the other hand, dry lands were changed to the extent of59.9 per cent

in Tirchirappalli North and just 6.5 per cent in Somarasampettai.

Tirchirappalli south is located for away from the CBD but it has

had all civic amentities. Before being upgraded as City Corporation, this

zone was under the control of the Golden Rock Municipality. This Zone

contributed of such as mixed residential and primary residential areas.

The Golden Rock Workshop is located in this zone and many railway

employees settled down in these areas. This zone is a link to two major

cities, namely Thanjavur and Pudukkottai and people living in this zone

belong to the above two cities. This might be a probable reason for

conversion in this zone. 44.10% of dry lands and 63.23% of wet lands

have been converted in this zone. The dry lands are owned by the state

government and central government. Hence, the dry land conversion

was very lower than wet lands in this zones in the city. The demand for

land was more in this zone due to cheaper price.

Tirchirappalli North is located in the heart of the city, houses all·

the economic activities of this zone. More agriculture lands had been

converted more in this area. Tirchirappalli North covered areas such as

Pandamangalam, Thamalavarupam, Chinthamani, Puthur, Chinna

Vaduyur (Now called Thillai Nagar) Thennur, Devadanam,

Ariyamangalam, Ukadai Ariyamangalam and Tirchirappalli, town.

 376

63.23 per cent of the wet lands had been converted in this zone 40.82

per cent of the dry lands had been only converted in this zone.

Srirangam is very close to the central business district, and it has

other civic amenities in the zone 22.66 per cent of the total agriculture

lands had been converted when compared to other zones in the city. In

this zone, the wet lands have only been converted 24.48 per cent but the

dry lands have converted 15.68. In this zone, it is very difficulty to

construct houses, as it is very costly when compared to other zones. Due

to soil problem, the REPs did not like to encourage construction of the

houses in this zone. This might be a probable reason for low rate

conversion in this zone. Srirangam covered areas such as Kelikudu,

Uthamacherry, Panayapuram, Thiruvalarcholai, Kottanyapettai,

Vellithirumutuam (now called Srirangam), Kampersampettai and

Mutharasanallur.

t
Vengurs is located away from the CBD. In this zone, there are

more agriculture lands than house sites. In this zone, there are no

industries and other facilities. In this zone, the REPs did not encourage

the individual consumer for constructing the houses. Some of the

agriculture lands had been converted for brick making 22.66 per cent of

the wet land has been converted for human habitation and the brick

making in this zone. This might be reason for low conversion in this

zone, and also the Director of agricultural department could not give
 377

permission for converting the agriculture lands for human habitation,

this zone is near to the Cauvery river and so the extent of in conversion

in this zone was quite low. This zone covered areas such as Pannya

Kurchi, Kuvalakudi, Kelamulatikudi, Vengur, Papakurichi, Elaikudi,

Arasankudi and Natarajapuram.

Manigandam is located away from the CBD but it is located with

two national high ways in this zone. The zone is 5 km away from the

central business district and school, colleges and market. The conversion

was high in this zone 52.12 per cent of the dry lands have been

converted. 79.00 per cent of the dry lands have been converted. 79.00

per cent the wet lands had been converted. Evidence suggest that the

land value is very cheaper when compares to other zones in the city.

Manigamdam covered areas such as Kallikudi North, Kallikudi west

(now this area is called R.M.S colony and karumandapam), K.Santhanur

North, K.Santhanaur West. Now this area is called K.K.Nagar. One of

the biggest residential areas was located in this zone that was named as

K.K. Nagar.

Somarasampettai is located near the city center but the conversion

was very low when compared to other zones in the city. This might be a

probable reason that the individual consumer was threatened by the

natural calamities. During the year 1977, there was flood in this area.

The individual consumers did not like to construct the houses in this
 378

zone and the REPs also did not encourage the individual consumers to

buy the plots here. After 1987, the individual were interested to buy

plots in this zone, as there was no flood over the decade in this area.

Since, it was located within the City Corporation; the individual

consumer was attracted by the infrastructure facilities available. Now

the conversion is very high in this zone 46.67 per cent of the dry lands

have been converted in this zone. "The rate of land conversion within

each zone over the time can easily be determined using either aerial

photographic surveyor satellite image information. By calculating the

area converted from agricultural to residential and other urban uses and

correlating it with housing unit changes or changes in commercial and

industrial employment, an estimate can be made of the land required to

support urban growth. This information can, in turn, be used to estimate

annual requirements for land" (Dowal E.David 1995) .

....
'
In analysis, the various forces behind the phenomenon of transfer

of lands from agriculture to non-agriculture are to be taken into

consideration. Generally, farmers would be willing to dispose of their

lands in fringe area when attractive prices are offered. They have more

than one reason to indulge in this kind of land sale; they are due to high

agricultural wages, monsoon failure, shortage of labour to work in the

field and a number of non-agricultural employment diversifications in

the fringe areas. Another important reason is the growth of the financing

system which facilitates farmers to switch over to non-agricultural

 379

· activities. Construction of houses, establishment of commercial and

industrial estates have influenced in a great deal in this regard. Real

,,.._
i estate proprietors played a major role in transferring lands for house

construction. They identified the potential zones in the periphery and

purchase of sizeable portion of areas with an average size of 2400

square feet, usually called one ground (5 Cents or 223.04 square meter).

As discusses earlier, real estate proprietors along with flat promoters

were observed to strongly influence the spurt in land value within

residential and mixed reside areas.

FRINGE LAND AS A COMMODITY

The urban fringe land, like lands anywhere else, is a

heterogeneous commodity. The heterogeneity arises from difference in

topography, location, accessibility and tax and legal status of the

different polices of land. Topographical influences like river, lakes, hills

and coastlines may have a marked effect upon urban land use pattern.

The present study area on the bank of Cauvery River with adequate

ground water potential attracts the individual consumer to construct

houses in this area. This f'actor among others plays a vital role for

changing the land use pattern and land values in the city. Location is a

very important variable for changing the urban land use pattern. There is

more agriculture lands located near the CBD in the study area. Thus, this

is a probable reason for high and values near the CBD. Accessibility is a
 --------------

380

very important factor for determining the conversion of agricultural

'
lands to urban uses. Tax and legal status of the different plots of lands

are extensively important for conversion of the agriculture lands. On the

other hand, REPs normally do not watch the developments in the market

passively occasionally manipulating the supply of lands at various

points of time, but also create demand for land, by making the area more

attractive to the consumer by way getting approval from the town and

country and other government authorities for the particular place. By

much activities, the individual consumer is induced to buy plots in the

fringe areas paving way for the conversion of agriculture lands over the

years in the present study area. In this respect, distance from the

periphery not only has the advantage of accessibility to the city, but also

that of being past of the urban agglomeration. Beside, other factors such

as future development particularly road facilities; electricity facilities

and water facilities in the fringe areas also influence the extent of

conversion. Hence, the fringe land may be a heterogeneous commodity.

Government policies, such as a ban on conversion of future fringe, also

lead to an increase in heterogeneity in the land market.

BUYERS AND SELLERS IN THE FRINGE LAND MARKET

Land market is localized market with a limited, number of buyers

and sellers in. It may not be very large. Further, depending upon the

stages of developments the composition of these operators would also

 381

vary. At different stages of development in the market, there are have

various types of buyers and suppliers like, speculations, REPs,

cooperative, housing board, individual consumers and farmers. The

initial supplies of land are the farmers who hold most of the land in

fringe areas Most of the buyers of land in the fringe area my be referred

to as "large" buyers of land. The farmers would normally prefer to sell

to the large buyers who can buy the whole their farms. The individual

consumer however, in most of the cases cannot buy such large quantities

of land as are offered by the suppliers. He normally buys not directly

from the farmer, but from the speculator of REPs or other (housing

board, Cooperative Societies, etc, who sub divide the land, carry out size

development and sell the "developed" or "Approved Plots". The

promoters generally tend to be influenced by social factors such as

castes, religion and nativity besides the economic factor.

DETERMINATION OF LAND VALUE IN THE FRINGES .

The demand for land in the fringe area has its original areas

originated partly in the high price of land in the urban area. The

speculator anticipates this demand and enters the market much before

the individual consumer. His first point of entry is the area nearest to the

periphery. His second point of entry is away from the CBD and he

promotes plots by way of the credit system to the individual consumer. ·

thus, the very nature of land value in this area represents -a commodity
 382

with low current value and high expected value. This encourages

speculation activity. This is one of the factors for promoting the plots in

r . the fringe areas. This way the more agriculture lands are being

converted in the city. The operation of land market in the fringe areas,

the farmers and individual consumers are more price takers rather the

price makers in the fringes land market.

An impetus to the demand for land in Tiruchirappalli North and

South, Srirangam, Manigandam, Vengur and Somarasampetai was given

by provision of roads and routs linking the area to the city center. These

facilities were provided to different parts of the fringes during the period

of 1980 to 1990. During this period, the transport network had

developed in TUA with the standing of a separate transport corporation,

named Deeran Chinnamalai Corporation (now redesignated as

Tamilnadu State Transport Corporation). The transport facility along

+ with other services provided by the administrated, acted as an additional

impetus for speeding up the process of land conversion and land values

in all the zones in TUA. But there were variation in the land market in

this zone. The average land value was Rs.75 in the Tiruchirappalli

North. Located as it is in the municipal corporation limit with a good

ground water potential, this zone attracts several consumers, thus, hiking

the land value. Tiruchirappalli south is located way from the city center

but the average land value is Rs.70. It may be seen that the average size

of transaction was higher in other fringes when compared to the

 383

Tiruchirappalli North, during the years 1980 to 1985. As cited earlier the ·

introduction of the transport system in this areas as well as the up

gradation into municipality during this year resulted in increased land

values. In the Vengur areas, the land value was very low, as the non-

availability of public transport discouraged consumers from moving too

far out in these fringe areas. This fringe area neither came under the

corporation nor municipality but came under the town panchayats. The

individual consumer therefore was not attracted to buy lands in this

fringe area. The average land value was Rs. 70 in Srirangam fringe area.

But, this fringe area is located on the national high way leading to the

Chennai metropolitan city. Thus, the availability of transport system,

and ground water facilities, promoted the increase in land values. The

average land value is very low in Manigandam zone as it lacks water

facilities. At the same time, the transport facilities are better developed

in this fringe area. When compared to other zones in the city. Hence, the
+
individual consumer is attracted by much facilities resulting in a

comparatively higher size of transaction in this fringe area. This is

supported by the fact that the government of Tamil Nadu, has started a

new sub-registrar's office for land transactions in this area in 1995

(Annual Report, The District Registrar's Office, 1995). The average land

value is very high in the Somarasampetai zone. The land value is Rs.65

in this fringe. This fringe area is located close to the city center and also

it links many villages in these fringes. After the introduction of the city
 384

center and also it links many villages m these fringes. After the

introduction of the transport system, many buses are operated in this

area. Even though, this is a flood prone area, the individual consumers

are attracted for the following reasons: this fringes is located in the city

corporation, closer to the city market and easy accessibility to other posh

commercial and recreation centers in the city.

LAND VALUE BEFORE AND AFTER CONVERSION

•
Regarding land values in these six zones, the increase in value

had been many folds. There was three fold increases in values in areas in

Tiruchirappalli North. And four times increase was found in

Tiruchirappalli West. These two zones viz., North and West where

banana cultivation was in vogue. In other zones such as Vengur,

Srirangam, Manigandam and Somara-sampetai, the rise in values was

five to six times of the value in areas before conversion. These zones
t were dominated by both paddy and banana cultivation. The increase in

value will be insignificant if adjusted for inflation with the help of

deflators. However, one thing is certain that the value would not have

risen had they remained under agricultural use. An informal discussion

with the agricultural land owners revealed that they were ready to

dispose of their lands in the fringe areas be it wet or dry if atractive

prices are offered. A few of the land owners who sold out their lands in

the periphery have reinvested the amount in money lending business. It

 385

may be construed from this behaviour that income that is generated from

rural economic activities has now come to urban econotny owingto

transfer of for urban use. Whether this is desirable or undesirable is a

matte for thorough discussion, as this issue has a bearing on tirban land

policy. Though not new, this phenomenon forms an important

dimension of the urbanization process. Evidence is mounting to

subscribe to this view across the world. The World Bank on the land

market gave the following information.

Tables 5.11

Land Value in the Fringe Land in TUA

Land value before Land value after

Urban Areas
conversion conversion

Tiruchirappalli North 20 75

Tiruchirappalli West 15 70
t· Manigaridam · 5 33

~Srirangam 10 70

Vengur 8 30

Somarasampettai 10 65

Source: Primary data were collected from the real estate proprietors
in TUA.
 386

Table 5.12

Annual Urban Land Conversion of Selected Cities

City Hectares Year

Ahmadabad 565 1980
Bangalore 1,311 1983-2001
Bangkok 3,200 1974-1984
Jakarta 2,300 1979
Karachi 2,400 1971-1985
Bogota 2,325 1981
Mexico City 4,286 1970

Source: Dowall E David, the land Market assessment, The World

Bank, 1995.

As e_conomic activities in an urban area increase, the demand for

space for housing activities would tend to go up. The pressure of

demand on urban land mainfested itself in the form of higher prices.

Another consequence of physical expansion is the more intensive use of

land in the core and adjacent area of the city as evidenced by high rise

buildings both for commercial and residential purpose.

IMPLICATION OF LAND CONVERSION

One of the face of it, he phenomenon of transfer of agricultural

area for urban use may appear to be an inevitable process of physical

expansion. But this poses a plethora of questions to be resolved. will this

 387

conversion benefit the owning farmers in making profits throung sale of

lands? Or whether the margin would be grated by real estate proprietors

who buy lands at a cheaper price from the land owners in the periphery

and sell it at a higher price to the urban buyers. Whether the physical

expansion anyway solves the problem of shortage of urban land, Will

the urban poor have access to the converted lands? Whether it would

result in an appreciable increase in the number of trips and cause

lengthening of the average commuting distance and time? Would it lead

to reduction in area under agriculture resulting in fall in agricultural

output, Is it necessary to have government intervention? or whether this

is a mater to be left to the market forces to decide? Eventually the whole

question boils down to the major dichotomy whether state or market to

effectively tackle this issue.

The effective use of converted lands if left entirely to market

where the private real estate proprietors through speculative activities

stand to gain the fruits. If such urban lands are to be distributed

equitably to achieve equity government intervention is absolutely

necessary. As mentioned above speculative means adopted by real estate

proprietors are hindering urban development programmes. Affordability

by the low income group population for land is the need of the hour,

when urban poor are not taken proper care of, they are forced to urban

land illegally resulting in slums.

 388
•
On the question of reduction in area under cultivation and fall in

agricultural output, there is no empirical evidence to prove that

conversion of agricultural lands in the outskirts resulted in fall in

agricultural out put. Conversely agricultural output, paddy in particular

has increased, thanks to increased productivity.

This is not to construe that the process of transferring agricultural

land for urban use can be allowed to take place indiscriminately.

Because in the long run this conversion phenomenon may jeopardize the

agricultural sector if unchecked in time. Legislation has been passed in

Kerala prohibiting the switch over in the suburban areas. The state of

Tamil Nadu is yet to make a head way in this direction.

The problem of conversion of lands in Tiruchirappalli IS

compounded by the fact that lands in the suburban areas fall in the

Cauvery basin. There will be little possibility to retrieve the lands for

agricultural purposes, once lands in these zones were brought under·

housing and other non-agricultural activities. It will remain rhetoric to

discuss about fmding an optimal level of conversion thereby optimally

allocate scarce resource such as urban land in the periphery enabling the

urbanization process to continue without causing much damage to

agricultural lands -in the suburban areas. The conversion leads in flood

situation in major Tamilnadu cities.

 389

In Tirchirappalli too the scenario of land conversion IS quite

apparent. Information obtained on land area from village administrative

officers are use in this regard. The percentage of conversion is as high as

63.0 in Tiruchirappalli North and 61.3 in Tiruchirappalli West these two

areas are located very close to the Central Business District (CBD) when

compared to the other areas like Somarasampetai, V engur and

Srirangam. As the land values are quoted abnormally high in the CBD,

the propensity of conversion is also high in areas nearby CBD.

Tendency on the part of inhabitants to move to areas where they manage

to get lands for relatively lesser prices be attributed as reason for this

process. This appears to be an inevitable feature for future urban growth;

however, the present study is in favour of regulating the indiscriminate

conversion of agricultural lands in the fringe area. Lands under

agricultural purpose once converted there is no scope for bringing them

back for the original use.

LAND MARKETS

The whole question is how to rationalize and maxmise the use of

urban land which is scarce in nature. The exercise may not stop by

maximising the use alone but also to optimize and equitably distribute

the benefits to all sections of society. It remains rhetoric to think in

terms of rationalizing and optimizing the use of urban land because

there are a number of intricate issues relating to urban land use and land
 390

value can be used here as a significant factor in explaining urban land

use.
)-
DETERMINANTS OF RESIDENTIAL LAND VALUES

The demand for residential land derives from the demand for

housing. Housing is actually a bundle of consumer satisfaction that can

be characterized in a variety of ways. The factors that a household may

consider to be important in his choice of a house are some that w~th its

lo~ation. Those may be called accommodation factors. They include

environmental factors, the appearance of neighbouring property, the

apparent behaviour of neighbours, residential density and so on. The

Choice is made by considering among other things, the accessibility of

the location to different places or to different activities in which the

household in interested. Since land is fixed, land value in an urban

economy is determined by the demand for space.

The demand function for any site in any give urban area is a

function of the site's accessibility, amenities, topography and certain

qualitative phenomenon.

Accessibility values: Urban land has a value over and above its

.,.. value in rural uses because it affords relatively easily access to various

necessary or desirable activities. Secondly modem life in urban area

requires the concentration of people in cities; hence urban land takes on

 391

a special accessibility value. Thirdly transportation services vary widely

among sites located at some distance from the Central Business district
' ;--· (CBD). Areas that offer easier access to bus line artenal wayor freeway·.

than other equidistant areas may have an accessibility value that

influences land values.

Amenity V:,alue: Naturally a site having a higher amenity level is

more. desirable and more valuable than one with fewer amenities, if all

else is equal. The amenity level is clearly a qualitative factor determined

by different individuals. It is a level at a particular site cannot be

measured directly, but one could measure its value. Amenity ranking

would differ some what from person to person.

Topography : The term topography means the natural physical

characteristics of a particular site. Foremost among theses factor are

slope no site's amenity ranking would vary from family depending on

their composition and preference. Besides, its amenity impact,

topography also has a bearing on land values through its effect on

development cost.

Historical Factors : In a sense all factors affecting land values are

either historical or physical. An historical accident may have a

determined the position of a major arterial, hence land values in the area.

Besides this, many socio-economic factors influencing land value which

again need to be empirically verified.

 392

The caste variable is also taken into consideration mainly due to

the fact that this factor has been neglected so far by researchers while

discussing about land values. This section is set to discuss the issues

relating to factors which have influenced land values in the study area.

One of the objectives of the present study is to elicit information on

select socio - economic factors in order to find out the dominant one

among them. Generally, land uses determine land values but not vice

versa. L~d uses have been conditioned by a host of factors; starting

from economic followed by non-economic, sociological, historical and

institutional factors. The following discussion is pertaining to residential

and commercial areas of TUA, Chennai, Coimbatore and Madurai.

It is common knowledge that aspect connected to urban land is

complicated in nature. Heterogeneity is the hallmark of urban economy,

where sometimes a combination of both sociological and economic

factors influence land use pattern. In certain other instances, economic

factor would dominate and in some other cases sociological factor

would tend to edge over the others. Therefore, establishing cause and

effect relationships becomes extremely difficult in this contest. Hence a

description of the various alternative factors along with possible

hypothesis testing is presented in the following section.

In theory, the utility of particular area of land is determined by its

location which, in turn, decides its land use potential. This factor then
 393

determines its land value, which, in tum dictates its "economic use".

Therefore, there is a close economic relationship between the value and

the use of land" (Jack, ·1987). Accessibility plays a crucial role in

making both businessmen and households decide on the area of a

particular urban location in terms of transport facilities convenience and

amenity. Accessibility component has two facets- general accessibility,

special accessibility. Normally, general accessibility includes work spot,

shopping complexes, educational institutions and recreational facilities

which households seek. Similarly, business users seek, the center of the

urban area called the Central Business District which is the nodal point

for specialty shops. Special accessibility stems from external economics

of concentration and complementarily. External economics of

concentration comprises supply of skilled labour and common services

while external diseconomies of concentration includes traffic

congestion.

There are also additional factors which influence urban land - use

such as historical development and topographical features which include

physical aspects, river, mountain, plains, slopes, climate and geology

(Jack, 1987).

SOCIO-ECONOMIC FACTORS INFLUENCING LAND VALVES

Many reasons are attributed for the continuous and increase

inland values particularly after the mid 1980s. A plethora of reasons can
 394

be listed out as factors influencing urban land values. Among them, it

becomes a formidable task to establish cause and affect relationship

between land values and affecting factors .

•• •

t There are many intricacies involved in explaining the reasons for

.variation in the urban land values.

Table 5.13

Economic FaCtors Influencing Urban Land Values

Demand Factors Supply Factors

Density of population and growing Increased housing loan facilities
population
Continuous increase in rental value Rural - Urban migration
for housing
Demand for housing Easy availability of lands m the
fringe area

Multinational companies · Multinational companies

Transition of joint family into Flow of foreign money through

nuclear family into nuclear family NRI
Absence of communal problems Employment opportunities
Water facilities Excess of public land •

In flow of Refugees Revision of guideline value

r
Introduction of public projects by Commercial land use pattern after
.
local body and government 1980s.
 395

Particularly for a growing city, in this context, the researcher has

conducted a survey among the real estate proprietors and elicited

necessary information from them. Majority of them, by and large,

agreed with the reasons cited above. Nonetheless, they expressed that a

few factors out of the total area more dominating than the other factors.

The included increased housing loan facilities, educational facilities, flat

promoters or builders and easy availability of lands in the fringe areas.

The researcher has collected the data in order to identify the factors that

are influencing urban land values in TUA, Chennai · Coimbatore,

Madurai.

People are also motivated by social status owning a house in the

city. Many fmancial institutions have come forward to extend the loan

facilities for constructing houses in the urban areas. These financial

institutions are mainly concentrating on the middle income group that

those work in the governmental. ·organization, Non-government

organization and private sectors. More and more loan facilities are being

utilised by this income group for constructing in the urban areas

resulting in m0re demand for land and have a sharp increase urban land

values and house rent. It can clearly be seen that out of the various

reason for increase loan in land values facilities takes the first order of

priority.
 396

Many real estate proprietors have stated that, the housing loan

facilities is one of the important reasons for increasing the urban land

values, particularly in TUA. The operation of plot promoters or flat

builders and REPs as the reason for increasing land value is supported

by 18.75 percent, educational facilities 23.7 5 percent and easy

availability of lands 20 percent.

From. the analysis it can be concluded that a significant

relationship exists between increase in the land values and the socio

economic factors in the present study area. The reasons for this

significant relationship may be summed up as follows. The scope for

speculation in urban areas had increased the land values. As mentioned

earlier, many real estate proprietors have stated that, the housing loan

facilities as one of the important reasons for increase in the urban land

values in TUA particularly during the past one decade, people of the

middle income group have been utilizing· this facility for constructing

the houses in the city ,and the suburbs. Thus, the land values have

drastically increased in the city.

Secondly, if a piece of land is registered in the highest rate

possible, the loan amount will also be proportionately higher. Therefore,

many a person wants to register a higher rate for his own land expecting

an equally higher loan facility. Thus the urban land value is also

determined by the housing loan facility and the rating registration in

 397

TUA. REPs have found it very conducive to establish new housing

colonies in the sub-urban area in TUA. Consequently vast stretches of

.)....
agricultural lands are converted into housing plots. These plots are

relatively cheaper than the plots inside the city area. Because of the high

land cost in the urban areas, many people to live in apartment. Many

REPs have also expressed that, the flat builders are the main cause for

increasing the urban land values in the city particularly in TUA. The flat

promoters or builders are ready to buy a piece of land in any place at

any cost. These people don't bother about high price of and, since

several floors are constructed in the same plot. As a result the cost of

land per flat will be lower. This is not the case for those who go in for

individual single unit. Therefore the flat promoters are prepared to offer

higher price for urban fringe area.

The educational facility is one of the important factors in

increasing the urban land value in the city. The educational institutions

have contributed for the socio-economic development in the city. It

paves way for a variety of development in the city, as indicated below :

infrastructural facilities, rural urban migration, employment

opportunities, tertiary sector and business. There are 169 educational

institutions in the city, giving employment to nearly 5000 persons. A

good number of the rural people are migrating to the city for the sake of

giving good education to their children.

 398

CASTE AND URBAN LAND MARKET

Besides above factors, caste also has a bearing on the urban land

market in the TVA. Generally one may assume that the caste system

may not have any significant influence in the city owing to the

developments of commerce, investment, market production,

employment, popular culture, multiculturalism and education. however,

these developments have seldom reduced the caste problems in Indian

cities. Some are led to think that with urbanization, the caste problem

fades away. This is not true. Caste is still alive and kicking in urban

society. The untouchables remains confined to the lowest rung of the

society in urban areas as well. It is interesting to note that, there is low

land values and low house rent in certain areas where people of the

Harijan community are dominant. A General notion is that urban areas

comprise people from all walks of life, from various communities,

where no one particular community could influence the value

significantly. Contrary to this view the following behavior is observed in

this study. For empirical analysis, the researcher identified seven

pockets in TUA and the information in this regard was collected from

the Sub-Registrar's officers. The primary data survey was conducted

with the real estate proprietors in the city. Having obtained data from

both the secondary and primary sources and having cross - checked the

same with a few households in each pocket, the researcher has aimed at

significant conclusion as presented below.

 399

Table 5.14
Land Value in Harijan Pockets as Against the other areas 2004-05

.:;.... (in Rs/Sq.ft)

Distance Non- Difference

Areas under Harijan
from the Harijan between 3
observation Pockets
CBD Pockets and4
1 2 3 4 5
Kela Devadanam & I km 80.24 202.35 I22.II
Mela Devadanam
Venice Street I/2 km I20.52 398.64 278.I2
Perumal Kovil Street I km I42.77 2I2.53 69.76
Anthony Street 1.5 km I05.80 I56.00 50.20
Varganary I km I42.79 2I8.34 75.55
Chinnamelaguparai I km I65.72 I98.65 . 52.96
Periyamelaguparai I km I65.72 I98.65 52.96
..
* RanJan means that the people belongs toPallar and Parruyar castes hvmg m a
pocket in urban areas. These caste come under 'Schedule Caste' of
Tmnilnadu.

These urban areas .also nmned slums pockets but where people are living
+ under the public and collectives lands. These houses are only called slums ..

Table shows the difference in the land values between the Harijan

pockets and non-harijan pockets in urban areas. Kela Devadanarn and

Mela Devadanarn are located near the bus stand and central business

district and it has facilities like road, water, schools and colleges. In the

Harian pockets land value was Rs.80.24 while in the non-Harijan

pocket, it was Rs.202.35. When compared to these two pockets, the

variation of value is 122.11 rupees. Veins Street is located near by the

 400

CBD. It has all civic amenities but it land value was Rs.l20.52 in

Harijan Pocket, while the value was Rs.398.64 in the non-Harijan

pockets. The difference is when compared to all the Harijan pockets and

non-Harijan pockets is as high as Rs.278.12. Thus there has been no

land transaction in this pockets and people from this pocket are found to

migrate to other newly diversified pockets within the city. Perumalkovil

is located near by the mixed residential reassure rounded nearby

colleges and schools and close to CBD. In the Harijan pocket land value

was Rs.l42.79, while in the non-Harijan pocket land value was

Rs.212.53. The difference in the land value is Rs.69.76. Anthony Street,

is situated near schools, Churches Government Offices, central bus

stand and the hospitals. ·1n the Harijan pocket land value was Rs.l56.

The difference the land value being Rs.50.20 and this is very low, due to

the migration of Muslims into this pockets. It reflects that the land

transactions have sharply increased in this pockets. Periyamilaguparai is

located away from the CBD, close the District Collector's Office and the

central bus stand in the city. In the Harijan pocket land value was

Rs.145.72 while in the non-Harijan pockets land value was Rs.l98.68.

The difference in the land value is very low Rs.52.96. Varaganary is

located in the mixed residential areas. It has all civic facilities while in

the Harijan pocket land value was Rs.l42.79. In the non-Harijan pockets

land value was Rs.218.34. The difference in the land value is Rs.75.55.
 -------------------------

401

Table 5.15

Urban Land market Value is Harijan Pockets and Non-Harijan

Pockets in TUA for the Year of 2004-05
-
Distance Non- Difference
Areas under Harijan
from the Harijan between 3
observation Pockets
CBD Pockets and 4
1 2 3 4 5
Ke1a Devadanam & 1 km 50.55 280.42 229.87
Me1a Devadanam
Venice Street 112km 140.23 512.24 372.01
Perumal Kovil Street 1 km 114.16 356.10 241.94
Anthony Street 1.5 km 50.33 281.62 231.09
Varganary 1 km 114.76 410.64 296.48
Chinname1aguparai 1 km 145.21 350.00 224.89
Periyamelaguparai 1 km 148.73 512.00 363.30

Source : Data collected from the real estate proprietors in Tiruchirappalli.

Table 5.15 reveals the real picture on land value in Harijan

pockets and non-Harijan pockets in the city. In Kela & Mela

Devadanam pockets land value was Rs.50.55 while in the non-Harijan

pocket land value was Rs.280.42. The difference in the land is

Rs.229.87. It is interesting note that Venice Street land value was

Rs.140.23 in Harijan pockets, it was Rs.512.24 in the non-Harijan

pockets. The difference in land value is Rs.372.01. The land value was
,.~
Rs.l14.16 in the Harijan pocket namely Perumalkovil Street, it was

Rs.356.10 in the non-Harijan pocket. The difference in the land value is

 402

Rs.241.94. The land value was Rs.50.33 m the Harijan Street, in

Anthony Street, in the non-Harijan pocket land value was Rs.281.42.

The difference in the land value is Rs.296.48. In the Varaganary Harijan

pocket land value was Rs.44.16, in the non-Harijan pocket the land

value was Rs.41 0.64. The difference in the land value is Rs.296.48. In

the Harijan pocket land value was Rs.145.21 in the Chinnamelaguparai

while in the land value was Rs.350.10 in the non-Harijan pockets. The

difference in the land value is Rs.204.89. In the Harijan land value was

Rs.148.70 in the Periyamelaguparai in the non-Harijan land value was

Rs.512.00. The difference in the land value is Rs.366.60.

The REPs have expressed that the individual consumers would

not prefer to live in Harijan pockets. The probable reason is that the non-

Harijan individuals do not want to identify with the Harijans, and also

fear ones community would mistake to live in Harijan pockets. As a

result, the land transaction was minimum in such pockets.

The caste is one of the main factors which determine the land

values in the city. The main cause for the low value is that the upper

castes generally do not want to give up their socio-cultural behaviours.

Those who get good education and jobs among Harijan would like to

migrate to upper caste pockets to acquire a social status. The findings

.f-·
reveal that the benefits of so called modernization for the untouchables

were limited, and caste disabilities continue to persist. The

 403

Untouchables are confmed to the lowest rung in the land market in

Indian cities. Even though the Harijans live in the heart of the city, the

land values of their sites are very low. The inference is that caste

continues to exist in the urban areas. Urbanization is no solution for

reducing untouchability in India. Along with economic factors

sociological factor, such as caste also has strong bearing on land value.

The present study shows how status can influence land market, although

it is perceived status of people not area amenities.··.

..___.
An anonymous real estate proprietor expert once stated that there

are three tests of a "good" piece of real estate its location, its location

and its location. This was not an attempt to be facetious, but a way of

stressing the importance of location of the parcel in establishing its

value. Serious studies on the topic of land values have reinforced this

judgement concerning relative location. For example, in the case of

residential land values in Los Angles, several variables were included

and of these the most significant was the accessibility of the parcel,

especially to place employment (Brigham, 1965). A study ofland values

in Chicago tested the influence of a number of variables, including

distance from the nearest regional shopping center, and distance to the

nearest elevated subway system (Yeates, 1965). All of these variables

..L proved significant in a negative manner, but supported the proposition

that the location of a land parcel is important in influencing its value,

which is to say, the greater the distance the lower the land values. Thus,
 ' ·.

404

distance relationships between a specific land use parcel and other

parcels meant for different uses are instrumental iJ;t determining urban
• I ~ •

land values.

THEORIES OF URBAN LAND VALUES

' The conc~pt of land value may be described as the monetary

evaluation of land -use. It is dependent upon both the present and future

use which is town, is influenced by the physical . and economic

characteristics ofthe site and the social control ofland use (Clark, 1965)

Lichfield (1956), has stated that values are created and changed by the
same forces that create and changes uses. Clark has clarified that the.

value may also change before any change office actively take place. For
example, where the site posses value for a future use its potential is

reflected in the present price or rent, value may, therefore, be classified

· a "Current Value" i.e. value for the present use of "Potential Value", i.e.

value for a different and usually more v~luable use at some future data.
}-
Land value can be considered in two contexts. One is the market value,
-
which in the price of land parcel negotiated at the time of sale of the

parcel, and the other is the assessed value, which is the estimated worth

of the parcel made by a competent private or public assessor (Northam,

1975:198).

Hurd (1901) had empirically studied an urban land value who has

adopted the principles of Ricardo for agriculture land to the urban filed.
 405

He is often regarded as the father of modern .land economics. His work

recognized the importance ofland use. He stated, "The pattern of land

uses and land values will be mutually determining". He emphasized the

role of competitive bidding for land ill determining urban: land use and

the influence of accessibility on land values. He summed up his work

thus "Since value depends on economic rent and rent on location on

convenience and convenience on nearness, we may the intermediate

steps and say the value depends on nearness".

Marshall (1916) has introduced the concepts of "location value",

which expressed in the financial advantage derived from the location of

the site in commercial areas. According to time, the site value was equal

to the agriculture rental the location value. In other words, the urban

land value is determined by adding the location factor to the agricultural

land value. One other factor influencing the value of land is the amount

of floor space in buildings.

Haig (1926) has stated the 'friction space'. He has fixed to

establish a three way relation of rent, transport cost and location which

is interdependent. He also stated that rent constructed the change for

accessibility or the saving in transport lost while the occupancy and use

of land is determined by a bidding process.

)-.
 406

Alonso (1964) had introduced two further variables- the quantity

of land which each user would wish to acquire and the amount of

disposable income which will be devoted to land and the travel costs on

the one hand and all goods and services, including saving on the other.

The price of land decreases in the increasing distance from the center.

Therefore, the quantity of land that may be bought increase in the

distance, since land becoming cheaper. On the other hand, distance enter

in the foim of community costs and consequently the amount of land

that may be purchased decreases would is to acquire and the amount of

disposable income which will be deviled to land and travel costs on the

one land, and all goods and services, including saving the other. He has

stated in his own words, "The price of land-decrease with increasing

distance from the center. Therefore, the quantity of land that may be

bought increases with the distance, since land is becoming cheaper. On

the other hand, distance centers in the form of community costs. As

distance increase, so do community cost and consequently the amount of

land that may be purchased decreases".

Northam (1975) has developed a theory of urban land values

based on the concept of 'bid-rent', meaning the amount of capital one is

usually to bid or offer for use of a specified land parcel.. In the case of
)-~ urban land, different land users have different abilities to pay. The rent
'

paying ability of users depends on a number of factors like the size of

the city, the specific use to which the land parcel would be put,
 407

individual preference and the land stock available in particular city. He

had empirically shown that the bid rent curve for commercial users the

greatest leveL This would be greatest at the point of greatest desirability,

coinciding with the point of maximum value. The willingness to buy

location away from this point gradually diminishes and the bid rent

curve gradually slopes downward, although it remains high than those of

other potential users.

It must be pointed out that the user of residential land competes

on a different basis than other land users. Thus the value of urban

residential land is determined less by the bid rent curve than by the

indifference curve. Land values at some distance from the center of the

city may be less but those locations may be most desirable for

residential purposes. This may again lead to a situation where

commercial centers come up to serve this residential population and land

t
I .

values in. this place (away from city center) go up. This may lead to

local maxima in bid rent curves and in the spatial distribution of and

values.

If urban land values are primarily influenced by location, it would

suggest there is an optimum location of land. The site or location of the
highest value is referred to as the "hundred percent location" or the
i- "pack land value intersection". From this concept it should logically
follow that land values of all other locations would less than that of the
 408

hundred percent locations. Studies in American cities have shown that

there is a curvilinear relationship between decrease inland values and
distance from the point of maximum value where land values decrease
at a decreasing rate with greater distance from the peak value; There is a
relatively small area of high land values near the city center surmounted
by a single peak of highest land values. There may be secondary peaks
like posh residential areas or outlying commercial centers. There may
also be pockets of substandard housing (slums) representing · a
depression in the statistical surface.

STUDIES ON FACTOR DETERMINING LANDYALUES

Brigham (1965) examined the residential land values in Los

Angeles and concluded that distance from the central business district
and employments are the important determinants of residential land
values in the city. McMillen (1989) explored that the railroad was one of
I the factors determined urban land fringe price in Chicago city. The
t
empirical model fits the data fairly will and suggests, among other
factors that the railroad appear to be a strong amenity to residential land
uses in the city.

Parris (1987) found out that the urban land values were not
determined by the real estate brokers but, the investor determines the

1-- urban land prices. They arrived that the urban land values were
determined by following factors; location neighbourhood, physical
features and size. It is also shown that the price of residential land in
 409

Mexico declined significantly in real returns during the 1980. Rose, and
La Croix (1989) empirically tested that the determinants of the supply
_),-- and demand for land and their influence on Honolulu's land.' price which
was higher than any other major US urban area, were examihed. The
results confmned that natural and institutional constraints restricting
land supply help determine land price in the city.

Description of 'the samples is presented by land holding

distribution followed by comparison of mean and median values for
different land uses for the period between 1983-84 to 1993-94.

Table 5.16

Urban Land Holding Distribution by Religion and Cast-wise in

TUA

Religion Percentage Caste Percentage

Hindus . 58 Forwarded Community 12

Christians ' 30 Backward Community 70

Muslims 12 Schedule Community 18

Total 100 Total 100

Source : Records of the village Administrative Officers in Tiruchirappalli Urban

Agglomeration.

Among the different religions, going by numerical strength, the

1- Hindu religion standout as the hrrgest urban holding group (58%) and

Christians hold 30%and Muslims hold only 12%.

 410

Among the different castes, going by numerical strength, the

Backwards Castes stand out as the largest holding group (70%). The
.· ~. Scheduled Castes standout second (18%) and Forward Caste hold 12%.
Our fmdings show that Backward class people possess more holding
than other castes. When the FC moved out of these zone in search of
non-agriculture avenues of employment their holdings got to transfer to
the BC Community particularly during the British period and after the
independence, during. the implementation of Urban Land Ceiling Act
1976 for urban agglomeration and cities. Backward Castes have more
}-- land holding than the SC. Since the SCs would not afford to buy the
holdings on account of their socio-economic backwardness. The religion
and caste have played predominant factors in urban land hol~ing

transactions in TUA. These factors however are not focused to persist in

the newly residential pockets in the study area.

Table 5.17
,k Land ownership in Tiruchirappalli Urban Agglomeration

Owner Area (Km) · 0

/o of total area
National & Regional Government 10.0187 3.56
Municipal Government 2.0476 0.74
Private 13.7138 4.87
Public, Collective, etc. 255.361 90.83
Total 281.14 100
Source: RegiOnal Town CountryPlanrung, Thiruchirappalh- 1.

Among the different land ownership, going by numerical strength,

the public collective etc., stand out as the largest urban land holding
 411

group (90.83). The private stands out 4.87 per cent of total ownership in
TUA. National and Regional Governments contributing 3.56 per cent
total ownership in TUA. The Municipal government land only
supported 0.74 per cent of the total ownership in TUA. If we ask
question why the public, collectives lands are more than other
ownership, the probable answer is that there are many religious lands in

TUA.

These lands come under the public and collectives. According to

the Societies Registration Act 27 of 1975 any land possessed under the
Societies Act, would come under public lands. The institutional
ownership of urban land in TUA is quite· considerable as they belong to
institutions and minority groups.

Table 5.18
Urban land use Pattern in TUA

Changes %of
Land use 1995 2005 in urban o/o under
classification (Hect) (Hect) land increase classi-
increase fication
Residential area 1195.68 1248.43 52.75 4.42 11
Commercial area 65.45 79.04 11.59 14.66 2.42
Industrial area 68.06 233.28 155.2 69.52 32.36
Public and semi public 560.59 721.83 161.24 22.35 33.62
Transport and 283.13 336.93 98.8 29.32 20.6
communication
Total 2172.91 2619.51 479.6 140.27 100
Source: Regional Town and Country Planning Office, Thiruchirappalli.
 412

The study of land use pattern is an important aspect in analysis

the land values in any given area. The land use pattern in urban area

depends on various spatial factors and it various widely on the purpose

of use. Hence, there is a need to analyse the changing land use pattern in

TUA for the purpose of present research. Urban land use pattern is a

positive indicator of the linkage between land use and environment

degradation. First, when a city grows, more and more space will be

converted under urban areas. Due to limited availability of land, there.is

an intensive competition for the limited space. As a result, a new

thought not uncommon growth pattern develops in the form of

conversion of agricultural land into urban habitats. Second there is an

impact on the surrounding region owing to the growing demand for

food, and other materials. This type of urban growth leads to accelerated

and exploitative drawl on the resources.

The concept of urban agglomeration was amended after the 1981

census. According to the amendment the rural areas were excluded for

survey from the total areas urban agglomeration which existed during

1976. Only areas under Tiruchirappalli, Srirangam and Golden Rock

Municipality were considered for changes in land use pattern between

1976 and 1995. According to the information obtained from the Town

and Country Planning Office the industrial area showed the maximum

percentage of change followed by transport and communication and

public areas.
 413

The percentage change in residential area remained the lowest

when compared to the other. This may be due to separate area for
residential purposes as the land value being relatively very high in the
central part of city or old residential area. More residential lands
remained in and around the fringe areas. Another important observation
iis percentage increase in industrial area as industrialization being one of
the dominant factors of urbanization. In addition, it is evident that
increase in transport and communication and improve infrastructure
facilities acted as essential as components of urbanization.

Table 5.19
Land use and Guideline Land Value

•
Land use and Land use and Land use and Land use and
land value land value land value land value
(before (after (before· (after
GV
adjusting for adjusting for adjusting for adjusting for
inflation) inflation) inflation) inflation)
1983-84 . 1983-84 2003-04 2003-04
LU M MD SD M MD SD ·M MD SD M MD SD
PR 1.97 1.0 1.65 0.77 0.31 0.29 23.8 19 16.2 9.65 7.6 7.51
MR 9.06 8.0 5.30 2.81 2.11 1.63 136 128 73.6 56.9 56.4 31.8
CA 16.2 20 8.40 5.20 6.33 2.68 247 204 201 84.8 72.8 58.7 ,.
Note: GV ·: Guideline Value
MV : Market Value
LEA : Land use Classification
PR : Primary Residential
MR : Mixed Residential
,l.
CA : Commercial areas
M :·Mean
MD :Median
SD : Standard Deviation (values are unit free)
 414

The land use-wise mean value, median value derivation for the

sample of one thousands two hundred observation were worked out. The

table shows the estimates for the three land use classification for the

year of 1983-84 and 2003-04. It might be seen that the land value was

the highest in commercial area, followed by mixed residential and

primary residential areas. The inference is that the three rank in the

descending mean value of land (in Rs./per Sq.f\Jts : commercial area,

mixed residential and primary residential and among them the

commercial area has substantially larger value than others. The median

value is high in the commercial areas, followed by the mixed residential

and primary residential areas. Low standard deviation indicates that the

observations are less dispersed and are clustered around the mean in the

primary residential area. It is true that the Sub-Registrar's offices had

fixed the value around 0.50 to 1.00 (in Rs./per Sq.~in the primary

residential areas in the fringe areas for this year. Large standard

deviation value is larger which indicated that observation are quite

spread out in the mixed residential areas. It also reflects that the

observations are heterogeneous in nature. High standard deviation

indicated the absence of cluster around the mean in the commercial

areas. It is very clear that the scores are spread out widely and are more

heterogeneous. The observations cover all belts in the road fronts and

the land post behind or in adding areas.

 415

For the period 2003-04, high standard deviation for values before

adjusting for inflation revealed that the scores are dispersed in the

primary residential areas. It reflected that the land value has increased in

the primary residential areas·· , __ -'- ·. ~-> · -~;·::'<-:<!,;;=:•-. It also

shows that the scores are heterogeneous in nature in the primary

residential area. The observations are quite· spread out in the mixed

residential areas and the scorers are heterogeneous in nature. The

standard deviation value is larger which also indicates that there is

absence of cluster around the mean in the commercial areas. It is also

clear that the scores are spread out widely and that they ~e more

heterogeneous.

For the period 1983-84, high standard deviation for values after

adjusting inflation indicated that the observations are less dispersed and

are clustered around the mean in the primary residential area. It reveals

that the observations are similar in the primary residential area The

scores are quite spread out ~ the mixed residential areas. The

observations are dissimilar in the mixed residential. The observations

are dissimilar in the mixed residential. There is absence of cluster

around the mean in the commercial areas. The scores are spread out

widely and are more heterogeneous.

For the period 2003-04, high standard deviation for after adjusting

for inflation which indicated that the observations are dispersed in the
 416

pnmary residential area. Large standard deviation indicated that

observations are quite spread out in the mixed residential areas. It

reflects that the observations are heterogeneous in nature in the mixed

residential areas. High standard deviation which reveals the absence of

cluster around the mean in the commercial areas. It is very clear that the

scores are dissimilar and are more heterogeneous.

MARKET VALUE
Table 5.20
Land use and Land Value

Land use and Land use and Land use and Land use and
land value land value land value land value
(before (after (before (after
MV
adjusting for adjusting for adjusting for adjusting for
inflation) inflation) inflation) inflation)
.
1983-84 1983-84 2003-04 2003-04

LU M MD SD M MD SD M MD SD M MD SD

PR 1.32 4.00 3.83 1.20 1.24 0.56 53.5 50 14.4 42.8 23.8 6.4

MR 12.5 10.0 9.42 4.48 3.10 4.54 196 200 105 92.1 94 49.3

CA 101. 100 48.8 60.5 62 32.4 772 800 179 361 376 85.0

Note: GV : Guideline Value

MV : Market Value
LEA : Land use Classification
PR : Primary Residential
MR : Mixed Residential
CA : CommerCial areas
M :Mean
MD :Median
SD : Standard Deviation (values are unit free)
 417

High standard deviation indicated that the observations are

dispersed and are clustered around the mean in the primary residential

area. It is also indicated that the observation are quite spread out in the

mixed residential areas. It reflects that the observations are

heterogeneous in the mixed residential areas. There is absence of cluster

around the mean in the commercial areas. It is very clear that the scores

are spread out widely and are more heterogeneous.

For the period 2003-04, high standard deviation for values before
adjusting for inflation indicated the observations are dispersed the
primary residential area. It reflects that the scores are dissimilar in the
primary residential areas. It reflects that the observations are
heterogeneous in nature. The values are clustered around the mean in the
commercial areas.

For the period 1983-84, large standard deviation after adjusting

for inflation showed that the scores are dispersed in the primary
residential area. It expressed that the scores are homogeneous in nature
in the primary residential areas. This denotes that the observations are
spreaded out in the mixed residential areas. It reflects that the
observations are heterogeneous in the mixed residential areas. The
values indicated the absence of clusters around the mean in the
commercial areas. The scores are spreaded out and are more
heterogeneous in the commercial areas.
 418

For the year 2003-04, high standard deviation for values after
adjusting for inflation indicated that the observations are dispersed in the
) __ primary residential area. It shows that the scores are dissimilar in the
primary residential area. The observations are quite spread out in the
mixed residential areas. It reflects that the observations are
heterogeneous in nature. There are clustered around the mean in the
.
commercial areas.

The forging discussion that confirms the assumption the pattern of

land use determined land values, with little scope for many major

deviations from the main trend. From the foregoing presentation of

empirical evidence for the land values across three categories of

classification; we infer that the land values in commercial areas are

higher when compared to the other two categories. Next to this, high

values are registered in the mixed residential areas followed by primary

residential areas.

In regard to the standard deviations obtained, which in basically

unit free, showed that this worked out to be high in almost all the

categories. This suggests that the mean values obtained are not

consistent, which may imply either high variation in values across

different categories or small sample size.

 419

Table 5.21
Urban Land Value Appreciation for Guideline Value
(Deflated Value)

Land use classification 1993-94 2003-04 o/o increase

Primary Residential 0.77 9.65 1153.24
Mixed Residential 2.81 56.94 1926.33
Commercial Area 5.20 84.83 1531.34

Regarding appreciation and extent of variation in land values

across different locations, the mixed residential areas showed an

increase of 1926.33 per cent between 1993-94 and 2003-04. The average

land values in commercial area in TUA based on guideline values

registered an increase of 1531.34 per cent betWeen 1993-94 and 2003-

04. The primary residential land values have increased to 1153.24 per

cent during the year 1993-94 and 2003-04. The mixed residential has

increased very high when compared to other land uses in the city. The

mixed residential land value had increased, as the area has become an

important never center for communication, transportation and other

kinds of transactions. Location near this center gives easier access to

every other part of the city. For self-employed households heads or

families, with secondary earners, the mixed residential may be the best

location. Convenient in transportation, along with employment

opportunity, to start self enterprises is a very significant function

provided by the mixed residential area. The mixed residential area is

located near by the educational institutions and, therefore, people of the

 420

high income group, middle income group and lower income group are

attracted to reside in the mixed residential area in TUA. The primary

J_ residential stands second in the land use classification; due to an

increase in supply of lands, low land values, development of the

transport facilities and housing loan facilities resulting in increased land

values in the primary residential area. The commercial land value is very

low compared to other land uses in the city. As one third of commercial

lands are possessed by various institutional trusts.

Table 5.22

Urban Land Value Appreciation for Market Value

(Deflated Value)

Land use classification 1993-94 2003-04 o/o increase

Primary Residential 1.20 24.80 1966.66
Mixed Residential 4.48 92.17 1957.36
Commercial Area 60.54 361.55 497.20

The primary residential land values had increased to 1966.66 per

cent between 1993-94 and 2003-04. The mixed residential increased to

1957.36 per cent between 1993-94 and 2003-04. The values in

commercial area increased only to 497.20 per cent between 1993-94 and

2003-04. The factors influencing values variations in land values in the

city are indicated below : The primary residential uses stands out first in

the land value appreciation. The low land value in this primary
 421

residential area is low, many middle income groups have come to reside

over here. Besides the easily available housing loan facilities also

encouraged the middle income group to construct houses in around the

city. Moreover people generally prefer to live in independent houses

rather in apartments, as it would imply a higher status in society and a

greater respectability among one's kith and kin. In the primary

residential area supply of lands are more when compare to other uses in

the city. Thus, the demands for lands are more in this classification

leading to increased land values over the decade. The mixed residential

area stands second over the period. The reason is that the housing loans

play a vital role in determining the land values and for similar reason

has cited above mixed residential areas. The commercial area (CBD)

stands third over the ten years. The commercial land value had not

increased as much as the mixed residential and primary residential iri the

city. Located as it is around the Temples, Churches and Mosques where

considerable lands come under institutional holdings which could not be

sold in the open market, due to The Urban Land (Ceiling and

Regulation) Act 1976, there is hardly any' land transaction in this area.

Hence, the market value had not increased as much as in other

classification in the city. This is ~basic reason for the low appreciation

in the commercial lands use. There are also many jewelry shops in and

around the commercial area. For the sake of safety of those shops
 . 422

owners have their houses in the same locality very close to the shops.

Hence, there is hardly any transaction in this area.

Table 5.23 reveals the difference between the guidelines values

and market values. There is a wide variation in guidelines values rate

per square foot of land as against the market values. The primary

residential has varied to Rs.8.35 in the year 1983-84.The difference in

the mixed residential was Rs.3.44 in the year 1983-84.The commercial

land values varied upto Rs.85.45 in the year 1983-84.The primary

residential varied to the extent of 29.68 rupees ill 1993-94. The mixed

residential varies upto Rs.60.2 rupees and the difference in the

commercial land value worked out to Rs.525.2 in the year 1993-94.

Table 5.23
Difference between Guideline values and Market Values
(Deflated Value)

1983-84 Difference 1993-94 Difference 2003-04 Difference

Land use
between between between
classification Al .A2
A1-A2 A1 A2 A1-A2 A1 A2 A1-A2

Primary 1.97 10.32 8.35 23.88 53.56 29.68 103.65 210.00 106.35
Residential

Mixed 9.06 12.5 3.44 136 196.2 60.2 550.00 812.70 262.70
Residential

Commercial 16.29 101.74 85.45 247.3 772.5 525.2 2013.00 3028.00 1015.00
Area
 421

residential area is low, many middle income groups have come to reside

over here. Besides the easily available housing loan facilities also

encouraged the middle income group to construct houses in around the

city. Moreover people generally prefer to live in independent houses

rather in apartments, as it would imply a higher status in society and a

greater respectability among one's kith and kin. In the primary

residential area supply of lands are more when compare to other uses in

the city. Thus, the demands for lands are more in this classification

leading to increased land values over the decade. The mixed residential

area stands second over the period. The reason is that the housing loans

play a vital role in determining the land values and for similar reason

has cited above mixed residential areas. The commercial area (CBD)

stands third over the ten years. The commercial land value had not

increased as much as the mixed residential and primary residential iii the

city. Located as it is around the Temples, Churches and Mosques where

considerable lands come under institutional holdings which could not be

sold in the _open market, due to The Urban Land (Ceiling and

Regulation) Act 1976, there is hardly any land transaction in this area.

Hence, the market value had not increased as much as in other

classification in the city. This is a basic reason for the low appreciation

in the commercial lands use. There are also many jewelry shops in and

around the commercial area. For the sake of safety of those shops
 424

mixed residential Rs.35.23 and the commercial area Rs.276.72 in the

year 1993-94.
1
The primary residential values vary from Rs.194.17 in the year

2003-04. The mixed residential values have varied Rs.175.04 in the year

2003-04. The difference in the commercial values worked out to

Rs.502.1 0 in the year 2003-04.

Hence, there is significant difference between guideline value and

real estate value in commercial area. The explanation for the results of.

the above mentioned hypotheses is presented as follows : .

The sources for the land values are the registered values given in

the sale deeds and the values of allotment or as fixed by guideline values

by the Sub-Registrar's offices in Tl)A. The guideline values hardly

present a correct picture of the piece prevailing in the lana market

operation in TUA. There is a gross under valuation of land in order to

evade registration fee (stamp duty and for income taxes). The prices

obtained from REPs may reflect the market value with greater

authenticity. Values as recorded in the Sub-Registrar's office may not be

the same as the actual value in the transaction. it is common knowledge

that the registered values are often reported as lower than the actual

values (Ravindra, 1995). There is under valuation of land in official

records, in spite of the Government's fixing a floor price below which

 425

the value of land will not be accepted for registration purposes. Official

values as recorded in the registration offices are always less than the
l values as assessed by professional brokers; that in turn are less than the

value imputed to the owners of land (Sebastian, 1986). However, there

are some places, where the guidelines is higher than market value
.
particularly in the fringe areas But this can be reduced with the help of

giving petition to the District Revenue Officer. The REPs have

expressed that the market values are always greater than the guideline

values have shown a continuous rising trend in space and time when

compared to the guideline values. The reasons is that the guidelines

values have upgraded once in a year by corporation, municipality and

towns.

The REPs expressed that the guidelines values are lower than the

market values, for the reason indicated below: lack of field survey by

the Government, steadily increasing house rent, people and officers are

not aware of open land market operation in the city, easy availability of

loan facilities in the city .and the individuals unwillingness to give more

money to the government for his deed registration. Hence, it is common

that the registered values are often reported to the lower than the actual

values. Land value can be considered in two contexts. One is market

value, which is the price of and parcel negotiated at the time of sale of

the parcel, and the other is assessed value, which is the estimated worth
 426

of the parcel made by a competent private or public assessor (Northam,

1975). Thus, the market value of a piece ofland may be different from

1 the assessed value. There is significant difference between primary

residential.land values and mixed residential land values. The reasons

are indicated below : Primary residential area comes under the fringe

area of the city. The low and middle Class group are living in this area. It

is very far away from the CBD. The reason is that the transport cost is

higher compared to that in mixed residential area and commercial areas.

Low income families trend to be located where land prices are the

lowest in the city (Amato, 1969). On studying the changing patterns of

elite residential areas in TDA suggests that luxury housing has and

enhanced land values in the central city and mixed residential area,

forcing out low income group to other areas. Thus, the primary

residential land value is lower than that of the mixed residential land

value. The schools, government, Non-governmental organization

offices, Churches, Temples and Mosque are located in mixed residential

area. The individuals would be encouraged to reside in this area. But the

same situation does not prevail in the primary residential areas. Hence,

the mixed residential land values are greater than primary residential

land values.

Hence, there is significant difference between mixed residential

land values and commercial land values for the year of 1993-94. The

reason areas follows : The commercial area stands out first in higher
 427

land values in TUA. The reason is its location. There are many activities

taking place in the business center. The commercial area or location land

value is often referred to as the "hundred per cent comer", or the

hundred per cent location" or the "peak land value intersection" (Richar,

1969). If the term hundred

.. per cent comer is used it may refer to the

highest value land parcel of these surrounding the inter sector of two

major streets. After Marshall (1916) had introduced the concept of

· 'location value' which determines the land value. He had indirectly

explained that the land (1949) carries forward the argument of Haig

(accessibility) that utilisation of land was ultimately determined by the

relative efficient of the uses in various locations. In general the

difference land use patterns mutually determine the land values in TUA

too.

Table 5.25

Land Values in Posh areas vis-a-vis Slums 2003-04

Posh areas Slum areas

Guideline Market Guideline Market
Areas Areas
Value Value Value Value
William road and 1675.00 6500.00 Varaganary 243.70 365.00
Alexchandria road
Y anaikatty Street 1613.00 5000.00 Tharanallur 355.00 400.00
Thillainagar 1413.00 3111.00 N athrshapalli 293.00 360.00
Vasal

William road and Alexchandria road are a part of the city center.

These two are close to the city Railway Station, Bus stand and reputed
 428

educational institutions. These areas are regarded as a high status

residential locality fairly close to central areas like CBD. A large

number of the affluent sections of the city population reside here. These

areas area located in the cantonment and other high rank government
•
officials quarters .

. Thillainagar and Puthur have developed into a major residential

localit)r in the w(!stempartofthe city. These haveavery good shopping

complex, health care facilities and transport facilities. These have a

mixed ranging from lower middle class to the well-to-do sections.

These slums pockets are a very large residential locality located

around the city center. Its houses a large number of industrial workers

and informal sectors and lower middle class people. Of Late, some

upper middle classes have also come to live here. The land value is a

very lower when compare to the posh areas in this city: The following

maybe reasons indicated : a poor environment conditions, away from the

main roads, poor sanitary facilities, etc.

ANALYZING LAND VALVES TRENDS

The exiting literature on land value trends in developing countries

argues almost exclusively that land values in Asian cities, have

increased and other social processes have intensified the pressure on

urban land in the 1970's leading to a wave of land speculation and

 429

spiraling land prices. This skyrocketing of price is widely perceived to

be a normal consequence of market economics, including those of Latin

A1nerican (Geisse & Sabatini, 1982). In Sao Paulo land prices appear to

have increased dramatically between 1968 and 1974 (Haddad, 1982).

Mertzke (1926) concluded the land value and population of

Wisconsin cities. The result reveals that the increasing population in

progressive region would tend to increase cost of all types of land. In

this connecting, population quality is the predominant factor rather than

population quality is the predominant factor rather than population

quantity in the determination of land values. This factor could be applied

to the present study, the population quality is one of the predominant

factors for determining land values in any cities. The researcher

observed that the populatiot?- quality is very important for constructing

houses in a city. A good number of the people came forward to construct

the houses in the city. Thus, the land value depends upon the population

quality.

Simpson and Burton (1931) identified the valuation of vacant land

m suburban areas of Chicago area. Generally, land values have

fluctuated over a period of time, depending on boom and depression

periods. Further, prevalence of speculation during 1923 and 1928 was

the prevalence of speculation during 1923 and 1928 was the

predominant factor in the determination ofland values in the city.

 430

Hoyt (1933) "One Hundred Years of Land Values in Chicago",

points out land values of Chicago and identified that the price of land

fluctuates in relation to distance. It records that price of land near

business center is high compared with lands located at a distance.

During the period 1836-1928, the land price recorded a more than two

fold increase, contrasting the land value registered a steep fall in relation

to the increase is distance from the city center.

Downing (1973) employed data on the actual selling price of

vacant commercial land as the dependent variable in a regression

analysis of factor affecting that value. Its result indicates the various

nighbourhood factors such as the percentage of non-whites and structure

conditions that have been significant with reference to constraints on

land use and medium income that were not found to be significant.

Edelstein (1974) observed the housing market in the suburban

Philadelphia during 1967-69. The fmdings reveal that property taxes are

capitalized into value and the accessibility to the central city is a

determinant of market value. Further, local taxes assessment policies

possess significant vertical and horizontal inequality.

Ottensmann (1977) analysed the variation across US metropolitan

areas in terms of growing at different rates both and values and the

densities of new residential development, explaining in favour of

 431

residential development process. This study had identified the land value

in an urban area.

Gleeson (1979) found that land values are influenced by the

development boundary that separates urban land from agricultural land.

Jud (1980) evaluated the effect of urban zoning on the price of

single family residential property in the city of Charlotte, North

Carolina. ·ne results of the study suggest that residential zonic

classification has a strong positive effect on the price of single family

residential property. Zoning reduced the cost of single family homes and

neightbourhood land use patterns affects residential property values.

Kan and Sirmans (1981) estimated into urban variation of 31

urban areas in the United States during 1966-1978. The analysis

indicates an inelastic demand for residential sites in all housing areas for

all time periods and concludes that· price elasticity is .significantly

.
·.

different across the city size and region.

Asabere (1981) elaborated the determinants of land value in an

African City. In this regard the factors related to access to "A class

roads, distances to the sea, distance from CBD city, Government zoning

number of transactions, time of sale and size plot have been the

determinants of land values.

 432

Giese and Kainen (1988) attempted to explain that the urban land

price is greater than hose price and other commodities. By the average

price of a plot has jumped 418% since 1973. Thus the urban land values

have increased faster than any other commodities in the world. This is

true in the present study area that urban land price is greater than

housing price. For example, a person could like land location but he may

not like the architecture of the houses model, because the person would

like to construct houses with his own architecture: This maybe one of

the main reasons for increasing the urban land value in the city.

Walter (1989) studied on the real estate market has boomed in the

late 1970's. Hence, the urban land price is faster than the rate of

inflation.

Thibodeau (1990) arrived that the relationship between high rise

employment center and land value. The high rise employment center has

introduced both positive and negative externalizes may be altered into

traffic congestion for residential land between 1000-2500 meters, land

value decline with increasing distance. The higher property values may

be due to either household's willingness to pay more to live close to

work or land values may be bid in anticipation of future development.

Barlow (1993) empirically examined that a maJor problem m

producing low cost housing in U.K. is the continued lack of control over
 433

the market for housing land, there is little debate on ways of controlling

land prices.

Chaudheri (1984) explained that over the past two decades, the

land prices in the urban areas in the country have increased by about 40

to 60 times. A survey was conducted and the result which indicated the

minimum percentage increase. The survey reveals the price of land in

Gauhati rose about 4900 per cent. The remaining are Hyderabad,

Tiruchur, Cuttack and Calcutta where the percentage increase was

between 90 and 1900 per cent.

Mohan and Villamizer (1980) conducted study on the land prices

which increased in real terms on the periphery, but absent they have

remained contrast in the center. A detailed examination of land value

and density patterns in Bogota and Cali has revealed that the valuation

of these patterns has neighed chaotic nor unpredictable. Land values

) have responded to the rapid growth of these cities much they might be

expected to in market economy growth and land values have been the

greatest at the periphery of these cities and least at the center.

Furthermore, land values in poor areas have increased as faster, if not

faster than, those in rich areas. According their results revealed that land

!
prices in cities have been growing in recent times at undesirable high
I

)-. and exorbitant.

 434

Mitra (1990) statistically explored that the exorbitance increase in

variation land prices and construction cost has restricted accessibility to

-
land and housing. The increasing the land values and housing cost lead

to the proliferation of the slums in the Indian cities.

Rao (1990) empirically explore that the urban land value has been

a steady increase for last 15 years in Chennai City. He had compared

Gold, Construction cost, and automobiles, while the increase in cost of

Gold is about 8 times, cost of construction 5 times, automobiles about 4

to 5 times, in case of urban land, it was more than 40 times.

Dowall and Leaf (1991), "The price ofland for hosing in Jakarta",

puts forth the urban land have been increased consistently greater in

suburban areas and informal sector plots in Jakarta city. Nevertheless,

there were arising from the massive demand from low-income

households for affordable housing in Jakarta city.

Mukherji (1992) discussed the growth of land market in India

whose stated that, there exists no land market before the British rule in

India, as there did not exist right of alienation is soil. it furnished the

supply of land market in India. In India the transfer of land takes place

in the forms of lease, sales and mortgage.

Hossain (1994) elaborated the real price of land in both the rural

and urban areas has considerably increased during the past two decades.
 435

Importantly, the price of urban land has increased at a higher rate than

the price of rural land with the result that most middle income

households are priced out of the urban land market. And also resulted

that an increased in real income is found to increase the real price of

both rural and urban land. Another expected and important findings is

that an increase in the relative price of forced lowers the land values in

the real price of rural land. He has also found that an increase in the real

price ofurban land lowers the rate of private saving.

Ravindra (1995) "Urban land policy : Metropolitan Perspective",

pointed out that the changes in land values in Bangalore city. The

average land price increased about 300 per cent between 1975-76 and

1986-87. For certain localities the increase varied between 100-120 per

cent with reference to base year's 1950-57, 1960-61 and 1970-71, the

percentage increase in the price levels was 4,215, 2,159 and 1,257

) respectfully. The spatial distribution ofland values shows that the values

in the central parts of the cities are higher compared to other areas.

Their process of change in land values use and land value is often

dramatic, particularly in the fringe areas. This statement was empirically

in the fringe areas. This statement was empirically made by Hussain

(1973) Pramila Kumar (1980) Putta Raju (1982) Wadhva (1983) Desai
'
~ ..
and Sengupta (1987).
 436

The increase in land values have been attributed to inflation,

population growth, land legislation, inefficiency of the concerned public

organisation and above all the speculative factors. These studies were

observed by Wadhva (1983); Bose (1970); Abraham (1982);

Ammukutty (1980) and Arun Kumar (1987). The present study also

carries these factors for increasing the urban land values in the city.

Even though the absence of statistics from secondary source's

micro - level studies have been conducted rising primary data attempting

to explain the variation in the land price in Indian cities. These studies

by Wishwakarma (1977) on Delhi, Krishna Kumar (1982) ofBangalore,

Ganeshwara (1983) on Hyderabad, Lakshmipathy . (1983) on

Visakapab'nOJJ}JAmitab (1994) on Lucknow. The prices of and land

construction materials in Indian cities have increased sharply in the

recent years (Kumar Arun, 1989). From the foregoing analysis it is

evident that the value of a particular piece of land gets determined by its
'
accessibility to economical activities, neighbourhood amenities,

topography, present and future use including the historic factors. With

the liberalisation of investmenet norms for real estate development, it is

not only the metro's of Tamil Nadu but secondary cities that are getting

a virtual boost. Among the areas undergoing real estate development,

 437

specific mention must be made about Singanallur on Trichy Road,

Tudiyallur and A vinasi areas in Kovai. !flfact real estate development is

happening across all micro markets. Further, the influx of IT companies

and the consequent demand for land in city area of Tamil Nadu has

given a virtual boost.

Table 5.26

Guidelines Urban Land values from 1983-84 to 1993-94

(before adjusting for inflation)

Primary Mixed Commercial

Fiscal Year
Residential Residential Area
1981-82 1.96 9.06 16.29
1982-83 1.96 9.06 16.29
1983-84 1.96 9.06 16.29
1984-85 1.96 . 9.06 16.29
1985-86 9.46 50.83 75.33
1986-87 9.46 50.83 75.33
} 1987-88 9.46 50.83 75.33
1988-89 13.56 52.02 98.67
1989-90 15.79 74.94 126.72
1990-91 15.79 77.19 138.93
1991-92 18.81 90.03 163.89
1992-93 18.81 115.5 204.00
1993-94 23.88 136.01 247.30
1994-95 29.12 147.02 298.00
1995-96 33.50 172.76 375.12
1996-97 39.23 190.53 506.33
1997-98 47.50 246.53 612.74
 438

Primary Mixed Commercial

Fiscal Year
Residential Residential Area
1998-99 56.22 283.22 "826.15
1999-00 64.15 309.77 999.00
2000-01 79.95 376.22 1212.00
2001-02 85.64 412.25 1417.00
2002-03 96.73 465.12 1713.00
2003-04 103.65 550.00 2013.00

Land values subject to change because of (1) changing individUal

preference nadlife styles, (2) continued aerial expansion of urbanized

areas (3) increased spatial mobility of the urban population, especially in

the more developed nations and (4) changes in the urban economy and

increased property to consume (Northam, 1975). This situation is

· prevailing in the present study area too. Data in this study of land values

in the TUA indicates that urban land values have increased during

greater than other commodities. Urban land values have increased the
; period 1981-82 to 1993-94. Not all urban property has increased at the

same rate, hbwever, commercial areas has increased in value at a rate

greater than primary residential and mixed residential area in TUA.

Placing these data in the context of the theory of land values discussed

by Northam that in the bid rent curves, several points come to light in

TUA. The rate of increase in land prices was also studied with reference

to the base year 1981-82 to 2003-04. The rise in values for TUA was

high in all the land uses. For example, the primary residential land
 439

values has phenomenally increased to 23.88 (Rs. per Sq.) followed by

mixed residential land which has increased to 136.01 (Rs. per Sq.) and

commercial area which land.has increased to 247.3 _(Rs. per Sq.) in

TUA.

Likewise the trend ofland values since 1983-84 have followed a

broadly straight - line trend path in the present study. The cost of land
rose steadily in the late 1988-89, peakedearly 1990-91 and declined

sharply thereafter. Socio-economic factor in one of the reasons for the

increasing trend in land price in the present study area. Land values have

continued to be high compared to other areas and the rate of increase has

been higher in the newly developed extension areas of TUA. Residential

land prices are affected more by other factors like social status of

neighbours and public opinion. Land prices have shown a continuously

rising trend in space and times.

Table 5.27

Guidelines Urban Land values are Adjusted for Inflation

from 1983-84 to 2003-04

Primary Mixed Commercial

Fiscal Year
Residential Residential Area
1981-82 1.96 9.06 16.29
1982-83 1.00 4.00 10.00
1983-84 0.77 2.84 5.20
1984-85 0.25 5.88 5.25
1985-86 7.34 40.54 60.07
 440

Primary Mixed Commercial

Fiscal Year
Residential Residential Area
1986-87 6.58 35.40 42.45
1987-88 8.79 33.71 49.39
1988-89 9.53 45.23 59.54
1989-90 9.64 42.25 69.36
1990-91 10.05 43.37 71.66
1991-92 10.22 50.52 72.86
1992-93 10.00 54.34 74.22
1993-94 9.65 56.94 84.83
1994-95 10.22 63.15 165.65
1995-96 17.53 69.72 213.30
1996-97 21.22 77.19 350.66
1997-98 24.12 90.12 478.50
1998-99 30.78 115.77 619.70
1999-00 37.42 130.11 800.15
2000-01 42.33 152.33 966.66
2001-02 47.50 179.79 1091.27
2002-03 50.93 191.31 1293.30
2003-04 56.48 215.15 1415.10

The table shows guideline values after adjusting for inflation in

the city. The primary residential land value has increased to Rs.56.48.

The mixed residential land values have increased to Rs.215.15. The

commercial area land values have increased to Rs.l415.10 in TUA.

The figures shows values before adjusting for inflation and after
' )..._
adjusting for inflation in the commercial area, mixed residential and

primary residential areas in the city. It would appear that sin·ce 1981
 441

land values have followed a broadly straight line trend. The cost of land

values rise steadily in the 1985, peaked nearly in the 1989. It is

interesting to note that the land value has increased overthe period of

years. The probable reason is that the guideline value was revised once

in three years only. Due to the increasing trend in land values in the

open market, government order has ordered to revised once in a year

from 1989.

It can be seen that land values exert a great influence on land use

patterns within towns and cities. Furthermore, they play a major role in

determining the level of land prices, house rent prices and rents within

the urban areas. In the present study area, there are two factors

responsible for influencing urban land use pattern. One is the historical

factor and second is the topographical factor.

In the present study area, with a long urban tradition, some of the
)
distinctive land use patterns that have emerged which can be attributed

to historical factor. Temples, Churches and Mosques are located in

TUA. This city are called holy town in olden days. With historical

evidence the Tamil prefix "Thiru" means holy and Tiruchirappalli

means a holy place. Besides these religious activities, small business

centers like hotels and lodges had.risen near temples along with various

kinds of religious activities. The business was growing fast in the city

particularly the retail business. Then it came the establishment of

 442

schools and colleges ·in the city. This was one of th reasons for rapid

urbanization in the city. The rural wealthy people migrated to this town

in olden days for their children's education. The CBD was growing near

by the temples. Effects of the past are also evident in the street pattern

carrying problems for the smooth flowing traffic. Thus, people from the

core city people were forced to move to sub-urban areas.

This is the one of the factors influencing urbanization in the

present study area. Features such as rivers, lakes, hills and coastlines can

have marked effect on urban land use pattern. In TUA, high status

residential development had taken in the sub urban town Srirangam as

the habitat is surrounded by the Cauvery. The commercial area stands

out first in the land use patterns followed the mixed residential area, and

the primary residential at surface.

The commercial area lands value stand first and mixed residential

stands second followed by primary residential area. The pattern of land

values found in a settlement is referred to as the land value surface. This

can be obtained by plotting the land values of the surface of the entire

urban area. If we assume that the highest land values are found at the

town or city center, and that they are generally in all directions from

center, would emerge. It can be argued convincingly from the above

analysis that land values are the major determinant of urban land uses.
 443

This issue of urban land values is complex and different models

have been put forward to explain the phenomenon of changing land

values that land values depends on proximity (Hurd, 1901), location

(Marshall, 1926), accessibility (Haig, 1926), efficiency of uses in

various location (Ratcliff, 19549). Each of these theories may partially

or satisfactorily explain the behavior of land prices in the urban land

market preferences for land, goods and accessibility (Alonso, 1964), and

rent paying ability of users (Northam, 1975).

The spatial distribution of land values in the central parts of the

cites is higher compare to other areas. There is a declaiming pattern of

land values for the city centre to the periphery, although the rate of

increase has been higher in the newly developed extensions of TUA.

Land is commercial areas is found to have higher values than in the

mixed as well as primary residential areas. The significant of relation

between the land .use and land value has been ·established by the

verification of hypothesis. Data in recent study of land values in the

TUA indicates that urban land values have increased greater than other

commodities. Urban land values have increased the over periods 1981-

82 to 1993-94.Not all urban property had increased the same rate,

however, commercial area has increased in value at a rate greater than

primary residential and mixed residential area in TUA. It is arguably

right that comparing the land value with inflation rate will not be

meaningful and thus the demand for it is increasing frequently resulting

 444

in continuous increase in land values. This argument will hold good so

long as the price hike is within the reach of low and middle income

groups. But when there is spurt in land value resulting in abnormal

increase, this becomes a matter of concern for social scientists in general

and economists in particular. As a result there is an urgent need to study

the complexities involved in real estate business. Universities and

technical Institutions, liM's etc should come forward to start specialised

courses at postgraduate level in real estate. Such a trend will avert the

major problems and issues concerning real estate business in the event

of global real estate competition in the major cities of Tamil Nadu.

Further the escalation of land prices in a haphazard manner has resulted

in a surge in the demand for budget apartments and the developers are

shifting their strategy to cater to this segment. With the liberalisation of

investment norms ·for real estate development, it is not only the metro's

like, Chennai, Kovai, Madurai

.
and .Trichy but secondary cities that are

getting a virtual boost.

 445

ENDNOTES
-·,
--~-----

1. Hurd, R.M., Prmciples--ufGity-Lan<l_Yalues, Real Estate Record

...,... __ J,_. ----

Association, New York, 1903.

2. Alonso, Marshall, 1916. "Principles of Economics", Macmillan,

London.

3. Haig, R.M., 1926. "Toward an Understanding of the Metropolies,

quarterly Journal ofEconomics, 40, 121.

4. Alonso, William, 1916, Location and land use, Cambridge.

5. Northam, Raym 1975, urban Geography, John Wiley & Sons;

New York.

.~·