Faced with a slump in the real estate market, builders are adopting new plans to improve sale of apartments both in Vizianagaram and Srikakulam districts.
With the construction of more apartments than the requirement, the builders are struggling to attract buyers. It is estimated that over 4,000 flats are ready for occupation in the two districts. According to builders, the apartment culture is mainly in cities like Vijayawada and Visakhapatnam and it is yet to pick up in smaller cities such as Vizianagaram and Srikakulam.
Against this background, the Confederation of Real Estate Developers’ Association (CREDAI) plans to hold a property show in Vizianagaram between October 14 and 17 to highlight the various projects. “After a gap of two years, we are holding the property show in Vizianagaram. We hope this property show will enable buyers to identify their dream home at affordable price and at the right location,” said Cherukuri Sridhar, CREDAI-Vizianagaram chapter chairman.
At present, the land cost is in the region of Rs.2,000 to Rs. 2,300 per square foot in various places like Kotta Agraharam, Cantonment, Fort junction and surrounding areas of Outer Ring Road. Builders say it is not possible to sell flats below Rs.2,000 per sq. ft with the skyrocketing of land prices apart from building material cost.
According to them, land costs around Rs.40, 000 per square yard in prime locations of Vizianagaram. And same is the case with Srikakulam where people reportedly do not prefer flats located on outskirts. It made many builders to take up their new projects in posh localities like New Colony and Official Colony where the land costs more than Rs.50,000 per square yard. “We have stopped taking up new projects in the last two years. We are forced to pay huge interest if the flats are vacant for six months to one year,” said a senior builder of Srikakulam.
‘Stabilise cement prices’
According to him, the government should try to stabilise cement prices. A cement bag costs around Rs. 310 as against Rs. 240 a couple of years ago.
“Cartel of cement industries is the main problem for builders. We have to enhance the price in accordance with the prices of cement. The government should also consider reducing the tax burden as it is calculated at Rs.200 per square foot,” he said.
