CRDA’s HappyNest posing challenge to private realtors

Vijayawada: The Capital Regional Development Authority's (CRDA) HappyNest project’s flats sale offer turned out to be a nightmare to the ongoing projects of several top infra companies and private local realty firms. The CRDA fixed Rs 3,499 per sq ft in the open market in the recent online sales while several top infra companies offered Rs 5000 sq ft.

Already several prominent infra companies shifted their operations from Hyderabad to Amaravati and started multi-storied residential complexes in the limits of Vijayawada and Guntur cities after the State bifurcation. They have been waiting for customers since two-years. With the CRDA joining the market, builders feel suffocated due to the former’s plan and unsupported market conditions. 

According to officials and realty company managements, nearly one lakh flats are being constructed in the limits of Vijayawada and Guntur cities. Only 10 per cent of space is sold out in the total construction area of various companies, the sources said. The top infra companies leased out their projects to the IT companies with the support of the government due to slump in the business.  Presently, nearly a dozen construction companies belonging to Hyderabad are busy with completing their projects especially in the stretch of Vijayawada and Guntur cities.

All the private infra firms unexpectedly are facing competition from CRDA. The CRDA is having sizable land in Amaravati capital region since it has collected lands from farmers. In this backdrop, it could offer each square feet for Rs 3,500, said Kommareddy Srinivasa Rao, an engineer in Hyderabad-based construction company.

He said that they could not compete with the CRDA HappyNest project. With the market being dull the CRDA project has become a challenge to private firms, he added. The CRDA sold out 300 flats in the first phase through online auction and it is getting ready to sell another 900 flats soon. It is also making plans to sell 1200 flats after the completion of the first two phases of auction.