LS polls, capital ambiguity slow down AP realty
The sector is expected to gain pace post elections with the capital talk all settled and line-up of several new projects expected to come up
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Capital or no capital, I strongly believe Visakhapatnam has a solid industrial base with a cosmopolitan culture, good social infrastructure and connectivity. It is bound to grow on its own once the electioneering comes to an end - Bayana Srinivasa Rao, AP Credai General Secretary, told Bizz Buzz
Visakhapatnam: Slowdown has hit the realty sector in Visakhapatnam apparently due to simultaneous elections being conducted for Lok Sabha and Legislative Assembly.
There is buzz that the poll outcome will decide the fate of where the capital will be located. While TDP, BJP and Jana Sena Party, which are fighting the elections as an alliance have pledged to develop Amaravati as the only capital of Andhra Pradesh, Chief Minister Y S Jagan Mohan Reddy wants to set up the executive capital in Visakhapatnam, if YSRCP gets the mandate again.
If the Opposition parties come to power, the realty sector, which saw a crash in demand for investments in and around Vijayawada after the YSRCP formed the government in the State in 2019 and announced trifurcation of capital to ensure, what it claims, decentralised development.
Big ticket realty projects in Visakhapatnam and Vijayawada like DLF, Raheja and others could not come to Visakhapatnam due to the pandemic and other valid reasons.
However, after the elections, due to the expectations that several new projects will come up and the ambiguity over capital talk will be settled, the realty sector is expected to gain pace.
It is said that mega projects like Bhogapuram International Airport, Mulapeta Port in Srikakulam district, JSW MSME Park in Vizianagaram, six-lane express highway between Visakhapatnam and Bhogapuram, metro rail, seven-star resorts by Oberoi and Mayfair Groups near Bheemili, international golf course by River Bay Group, FIA grade-three racing by Hayek Racing Pvt Ltd and Adani Data City are expected to bring new momentum to the construction sector with sharp increase in demand for residential, office and co-working space.
“Capital or no capital, I strongly believe Visakhapatnam has a solid industrial base with a cosmopolitan culture, good social infrastructure and connectivity. It is bound to grow on its own once the electioneering comes to an end. Now the speed in realty business may be missing due to election time,” Bayana Srinivasa Rao, AP Credai General Secretary, told Bizz Buzz.
Exuding confidence on realty boom in Vijayawada region, Amaravati Parirakshana Samiti convener A Siva Reddy, who earlier served as AP chairman of Credai, said “post elections the focus will be on development of Amaravati. Anti-incumbency factor will pave the way for change in government.”
At a conference organised here by Confederation of Indian Industry (CII) in association with JLL last year, it was observed that grounding of big ticket projects will bring appreciation in realty sector in Andhra Pradesh.
