The real estate sector appears to be picking up in the capital Amaravati area, Vijayawada and its suburbs if the increase in enquiries were any indication. Realtors, though not jumping in joy, see a ray of hope with the general elections slated to be held on May 13. The people, who are looking for investments, and the realtors, feel that a ‘change in the guard’ would revive the real estate sector in the region.
Pointing out there were enquiries till recently, the realtors stress that the enquiries have picked up. The builders and real estate firms are getting 10 to 15 enquiries a day. The increase in enquiries is a direct fallout speculation, nevertheless, it is encouraging. The enquiries have picked up significantly, even though deals were not getting closed, says National Real Estate Development Council (NAREDCO) Honorary Chairman Gadde Rajling.
K. Siva Reddy, who was chairman of CREDAI, says that the enquiries have gone up in the recent past. The construction activity also picked up. During he one week, seven to eight new ventures have also come up. The new ventures include apartments and villas. The people who used to be wary of investing and waiting for a trigger, are now looking for investment opportunities. In the near future, the sales would also pick up, opines Mr. Siva Reddy, who is presently convener of Amaravati JAC.
According to the information, there were neither any sales nor encouraging enquiries during the last three years. So, there is no variation in the cost. The rates prevailing three years ago are still continuing as there are no sales. A huge inventory is piled up in Tadepalli and other areas that are close to the capital Amaravati. The number of unsold flats would be around 5,000.
The same situation prevails in areas like Poranki and other suburbs of Vijayawada. About 2,500 flats were available in the outskirts of Vijayawada city. While the two bedroom house (2BHK) costs around ₹35 lakh to ₹45 lakh in city outskirts, a 3BHK costs ₹50 lakh to ₹80 lakh. Though there is not much inventory in the city, a 3BHK costs ₹1.5 crore to ₹2.5 crore in the city, industry sources say.
The transactions have come to a standstill in the capital region after the YSR Congress Party (YSRCP) government announced its plan to have three capitals. During the last couple of weeks, the land prices were quoted around ₹18,000 to ₹22,000 per square yard, depending upon the location. The prices were around ₹10,000 to ₹12,000 per square yard a year ago. Now, the land owners are quoting above those prices hoping that there would be change in the guard.
