Flats still hot, plots on hold: AP investors play it safe before polls

Visakhapatnam: Many seem to have put their investments in real estate across Andhra Pradesh on hold due to the general elections scheduled to be held in the next few months. Though there is no change in the demand for sale/purchase of apartments, the speed for investments in sites is expected to change based on the outcome of the Assembly elections.

Sources in the industry say that while there is status quo in Visakhapatnam market, the Amaravati area mainly in Guntur, Vijayawada and Krishna region there is a talk that the realty sector will completely alter if there is change in the government.

"In Visakhapatnam a lot of hype is continuing over growth prospects of Madhurawada area where there are several affordable and high-end gated communities as well as plots in layouts are available. Investments in sites, individual sites and layouts are continuing only in some parts. NRI funds are not flowing into Indian cities on the expected lines due to rupee devaluation and growing preference to buy old properties in the United States," Bayana Srinivasa Rao, Andhra Pradesh unit general secretary of Credai, told Bizz Buzz on Tuesday.

This is attributed as the main factor for not so encouraging response for buying large parcels of lands auctioned by VMRDA in Madhurawada area sometime ago.

He said Bhogapuram area where an international airport is coming up will see a boom time once metro rail becomes a reality. He said there is buzz in some quarters that the real estate market in Amaravati may reverse in the near future.

Builders Association of India prominent member Ch Rama Kotaiah said without a metro and international airport, only for investment, some people are putting their savings in sites on the outskirts like Bhogapuram. He admitted that the Amaravati, where realty market crashed due to three-capital plan mooted by the present government may reverse if the Opposition parties are successful in coming to power.

Amaravati Parirakshana Samiti convenor Alla Siva Reddy said, "The real estate market in Amaravati was dead in the past few years. Of late it has started slowly reviving as enquiries are being received for investment. The people are craving for change in government so as to retain and develop Amaravati as a single capital." He said they are confident of revival of fortunes for the real estate market in the Krishna-Godavari delta area after the elections. A real estate trader remarked that due to high growth potential and rental returns, many from Visakhapatnam, Vijayawada, Tirupati and other parts of Andhra Pradesh are preferring to invest in flats viz. be it ordinary flats or gated apartments in and around Hyderabad. For their second property, most of the people are opting to invest in Hyderabad mainly due to good connectivity and high appreciation of real estate prices.