Amaravati builders wait for brighter days

The real estate sector that was shining the brightest, riding high on the Amaravati wave, is witnessing a slowdown and the downturn is attributed to the fact that money circulation has come to a dead stop.

Huge investments made in this sector by people of not just Andhra Pradesh but also from Telangana and Karnataka are said to be locked in Thullur.

Sources indicate that a major part of the nearly Rs. 4,000 crore, paid to buy lands from farmers in the 29 villages of the capital region, has landed in the lockers of the local banks in Vijayawada region.

“Most farmers who do not have a clue about how to invest the enormous money they made by selling their farmlands, have opted to secure them in lockers for now. With wads of money locked inside lockers, circulation has come to a dead stop. Even private finance companies do not have money to lend,” says a realtor who is a member of the Confederation of Real Estate Developers Association of India (CREDAI).

The capital move had far-reaching implications and cost of lands in Vijayawada and its surrounding areas too skyrocketed.

“Though this region is known for its vast wealth and robust money transactions, we are witnessing a bizarre situation. Real estate is part of people’s regular planning here. Flipping assets at regular intervals has been an integral part of growing their money,” says an investor.

It is believed that the situation will ease when works on the projects comprising the master plan are grounded. Money circulation will resume improving the scenario manifold.

Cheer factors

Builders and land developers in the region, meanwhile, have a couple of reasons to cheer. The fast-approaching paddy harvest season and A.P. Chief Minister Chandrababu Naidu’s Durbar move in which about three lakh people are expected to shift from Hyderabad to Amaravati.

Enquiries for vacant flats have started pouring in for last 10 days. “This usually happens in the harvest time. People owning farmlands invest in property,” says R. V. Swamy, general secretary of the Vijayawada unit of the CREDAI. There are some 1500-2,000 ready-to-occupy flats lying vacant in and around Vijayawada city. The slump in the market had kept buyers at bay for the past many months.

“The 2,000-odd vacant flats in areas like Currency Nagar, Ramavarappadu, Kanuru, Poranki and the other side of the Vaaradhi can accommodate the NGOs shifting from Hyderabad,” says Mr. Swamy.

The CREDAI members have also submitted a list of vacant apartments, their location and their price to the Collector following a directive by the Chief Minister.

Nearly 40 mega projects envisaging construction of high rise buildings in city await clearance by the Capital Region Development Authority (CRDA). The construction companies include LEPL, Manjeera Constructions, Jai Bheri Constructions, Mahalakshmi Ventures and Ramakrishna Ventures. Some of these buildings will have 15 and even 23 floors.

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Printable version | Apr 5, 2020 10:28:00 PM |

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