Real estate slump in Vijayawada
Hardly couple of months ago, Chief Minister Chandrababu Naidu announced that the new capital will be developed in and around Vijayawada. This spiraled realty prices and the market was in the boom. But surprisingly, the prices have nosedived considerably in the last few days.
Land rates nosedive in areas which were earlier hinted as the ones where the capital of Andhra Pradesh would be setup
Hardly couple of months ago, Chief Minister Chandrababu Naidu announced that the new capital will be developed in and around Vijayawada. This spiraled realty prices and the market was in the boom. But surprisingly, the prices have nosedived considerably in the last few days. Naturally, this has resulted in widespread concern among those in realty business. Before Tullur was finalised as the spot, many names floated around such as Nuzeveedu, Agiripalli, etc for the location of the State capital.
This led to people from real estate business buying or least trying to buy huge tracts of land in all the proposed areas. Some who actually bought the land invested huge amounts of money on the plots. It has been reported that one of the real estate investors actually bought his land at Rs 7 crore per acre. Now the running price in the area is not more than Rs 3 crore as the core area of the capital has been shifted to Guntur. Apparently, the realtor is in a fix and is unable to figure out what to do as he has already paid Rs 4 crore to the farmers. On the other hand, the situation is worse for people who bought land in Nuzeveedu.
But the downside is that the rates that were floating around in Tullur some time back are no longer valid. Neither are people queuing up to buy land in these areas. Meanwhile, the real estate investors have come to a conclusion that due to the packages being offered by the State government, they cannot hope to break even in business. So, talk from Vijayawada is that nearly 300 realtors are down due to miscalculations. But it is said that they are confident of the market looking up once again pretty soon.