The long awaited Urban Land Ceiling Act (ULCA) has finally been repealed. The act was repealed after a motion moved by revenue minister Dharmana Prasada Rao was passed in the assembly. The World Bank had been insisting the state government to repeal the act as a pre-condition for clearing a loan to the state government.

With this, there will now be no restriction or ceiling on buying land in cities. The builders will benefit in a big way with this move. More lands will also now come out of litigation. Land prices are expected to ease in places in and around Hyderabad, Vijayawada, Visakhapatnam, Tirupati etc.

Observers feel that land prices will now come down to realistic levels and many middle class a well as poor people can now afford to buy plots. The prices of land in big cities in particular are likely to fall to realistic levels.