Staff Reporter

No takers for luxury apartments

Builders are content with selling low-cost flats costing Rs.20-25 lakhs

This is the best time to buy as prices are down, says a builder

GUNTUR: The booming construction activity and the construction spree of new apartments has come to a skidding halt in the city.

Builders, who had been floating new ventures with gusto for the past two years, were now exercising restraint and content with selling low cost apartments. Sources in the builders’ association said that construction activity was in a limbo and at least 70 new apartments in the city had been left unfinished as there were no takers.

The days of high-end deluxe and fully furnished flats each costing Rs.35-40 lakhs were passé and builders were content with selling low-cost semi finished flats costing Rs.20-25 lakhs.

“The demand for luxury flats stemmed from the NRI sector and with the downturn in IT sector in the US, the market for these flats had come down. But, the standard two-bedroom flat segment is still going strong,” says Yaganti Constructions proprietor Yaganti Durga Rao.

Another prominent builder Busireddy Malleswara Reddy, who had come up with a new three-bedroom venture at Vidya Nagar, says that it would be the best time to own a flat since prices have come to Rs.1,400 per square feet.

The salaried class, which constitutes a major segment of apartment buyers, however, is apprehensive that the prices would still come down. With prices in prime areas like Lakshmipuram, Brindavan Gardens, Vidya Nagar and Krishna Nagar still hovering about Rs.1,500-Rs.2,000 per square foot of finished flat, this section was not yet ready to invest.

But the builders exude optimism and said that the worst phase was over and things had started to look bright again.

“Builders in Guntur have earned a name for quality construction since the 80s and since there has been a lot of development in the last three years we expect the local demand to surge in the coming months,” said Siva Reddy, secretary of Builders Association.