Realty Bites: Vizag yet to witness realty boom after T announcement

By SNV Sudhir

Visakhapatnam, Aug 5, 2013:  The real estate sector may be heading for a boom in cities like Vijayawada and Ongole soon after the UPA’s decision to bifurcate state to create Telangana, but this port city is unaffected by that sudden expansion. Local realtors and apartment builders have also decided to handle the situation cautiously.   

“The property business had indeed been on upswing until recently, tanks to the reports relating to the state’s bifurcation but it has now reached a saturation point. Even if we are ready to increase property prices nobody is ready to buy. There used to be some buyers who would want to buy properties for investment they too not evincing much interest due to the drop of rupee value against dollar,” said Andhra Pradesh Real Estate Developmen Association (APREDA) treasurer, Nagesh Kumar.

Builders are also not ready to increase the real estate prices until the issue of the capital of Seemandhra is resolved. Property prices had witnessed a sharp rise in manifold in Pendurthy zone, Dakamarri zone, Anandapuram, Yendada, Madhurawada, Thagarapuvalasa, Bheemili, Kottavalasa till Viziangaram prior to 2009.

They feel the bubble may burst if the situation is not handled cautiously.  “Inquiries have definitely gone up after the Telangana decision from the prospective customers. But there is no any heavy or immediate rush. It’s only those who have already decided to own a plot or flat in Vizag are coming forward and buying from us. But there are no fresh transactions. It’s already more than a week since the decision was announced. We are thinking to increase prices at a very nominal rate from Rs 500 to Rs 1,000 per sq yard or Sft. But nothing is decided. We may take this decision unanimously this month end after watching the market for few more days,” said Sivaji Talluri of newly formed Visakhapatnam Apartment Builder’s Association (VABA).

There are more than 300 apartment builders in the Vizag city alone and some thousands of ventures coming up in various parts.

“A Sft in a semi luxurious apartment in certain areas in the city costs around Rs 5,500 to Rs 6,000. Whereas you get a flat with Rs 500 per sft less than the Vizag price in Banglore with more star amenities. If someone wants to buy a flat as an investment he would go to Banglore rather Vizag, which is yet to develop as prices are almost same or less in the Garden City than Port City,” said PLK Murthy who runs an advertisement agency.