Construction sector in chaos in Vijayawada

Vijayawada: The construction sector in and around Vijayawada city has plunged into utter chaos with the political developments taking place in the State particularly related to the three capitals proposed by the State government. If the administrative capital is shifted to Vizag, the construction sector will collapse in Vijayawada and investors would suffer huge financial losses due to lack of buyers. Already, the construction sector has suffered a big jolt with the non-availability of sand for nearly five months and subsequent floods, which affected the sand supply from the sand reaches in Krishna river. Realtors, particularly the small realtors, who are constructing group houses and small apartments are worried about the future.

The realty market is already facing crisis due to lack of demand in the backdrop of economic slowdown in the country. Besides, sand scarcity caused by change of sand policy by the Government has worsened the construction sector in the State. Finally, the idea of three capitals led to utter confusion and chaos.

Investors spent several hundred crores of rupees during the last few years in and around Vijayawada city with a hope of doing good business as Vijayawada will be the temporary capital for some more years till full-fledged Amaravati will be built.But, after the Assembly elections, the scenario changed.

The YSRCP government has decided to shift the administrative capital to Vizag and judicial capital to Kurnool.

The announcement was a big shock to the realtors, construction workers and traders in the city. Now, the realtors face a challenging task of selling the ongoing projects and completed projects because the demand is already fallen down and will come down further, if executive capital is shifted to Vizag.

Another notable point is the investors are not willing to spend in and around Vijayawada for some more time mainly till the clarity emerges on the capital of Andhra Pradesh.

R Sudheer, a realtor said demand for apartment flats or individual houses already fallen down in the city since the three capital idea mooted by the state government. He said the construction sector is already facing problems due to increasing cost of construction and labour charges for the last few years.

Thousands of construction workers will lose livelihood if the investors withdraw the proposed projects. Keeping in view of the political developments taking place for the last two months, some realtors feel Hyderabad is the safe market compared to Vijayawada and Amaravati and may shift their construction activity to Hyderabad or Vizag. All these factors have created chaos in construction sector in the city.