Andhra Pradesh

Smart City tag gives big push to realty sector

A shopping mall at Bhanugudi Junction in Kakinada.—Photo: K.N. Murali Sankar

A shopping mall at Bhanugudi Junction in Kakinada.—Photo: K.N. Murali Sankar  

Even as the government has come out with schemes like gold bonds for investors, people are looking towards land as a safe investment option

House site seems to be the buzzword for the investors in and around Kakinada of late. Even as the government has come out with schemes like gold bonds for the investors, more and more people are looking towards land as the safe investment option.

With the city gaining place in the list of Top-100 cities for the proposed Smart City project, the real-estate dealers are trying their best to make the hay while the sun shines.

Signboards and colourful pamphlets are vastly in use by developers, whose targeted business group is the middle class.

It is long since the fertile lands on the outskirts of Kakinada turn into real estate ventures. A good number of developers managed to get permissions for layouts just before the general elections.

As a result, a good number of real-estate ventures on the city outskirts are continuing to attract buyers. Fluctuations in the share market and gold market, inordinate delay in the construction of flats and a steep hike in the price of the built-up area are some of the factors that contributed to the rise in the rise in demand for house sites.

One can see a large number of real-estate ventures on roads leading to Pithapuram and Ramachandrapuram from Kakinada.

Interestingly, there is no demand for apartment complexes constructed on the outskirts. The major complexes on the outskirts have been advertising about the vacant flats almost for the last one year.

“Buying a house site is nothing but an investment. The price of a plot will definitely go up over a period of time, which means the resale value is assured. It is a safe bet compared to shares and gold,” says M. Satyanarayana, an employee of a nationalised bank.

The price for square yard is different from place to place. Within the city limits, it is not less than Rs. 30,000, whereas the same is about Rs. 6,000 on the outskirts. One can buy a house site of 200 square yards with an investment of Rs. 12 lakh, which is less than half the price of a two bedroom flat in an apartment complex.

“There is a drop in the apartment complexes in the city and on the outskirts owing to high investments. As people are going for plots, the real estate ages are doing a brisk business now. Some of the builders too are going for developing the ventures,” observes Nekkanti Srinivas, secretary of the Confederation of Real Estate Developers Associations India’s (CREDAI) Kakinada chapter.

(Reporting by K.N. Murali Sankar)

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Printable version | Jul 12, 2020 5:19:33 AM | https://www.thehindu.com/news/national/andhra-pradesh/smart-city-tag-gives-big-push-to-realty-sector/article7917380.ece

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