Lack of infrastructure and no companies in the vicinity, are discouraging locals from buying the flats
Representational image
Visakhapatnam: China’s Ordos is termed as the world’s largest ‘Modern Ghost City’ with so many buildings and houses, but nobody to live in them. Similar is the situation in Vizag’s vicinity. A ‘modern ghost city or town’ is one where even 2 per cent of the new buildings are not occupied due to various reasons, generally of economic nature.
There are no occupants, or in some cases, no takers for almost 5,000 brand new flats in an area between Sagarnagar and Chandrampalem, which is touted as New Vizag, turning it into a ghost town. With the hype surrounding state bifurcation since 2009, and growth projections of Vizag as one of the largest cities in the state, builders worked overtime since 2010 to build many apartments in and around Madhurawada, where there is an IT SEZ.
However, in reality, only 30 per cent of these flats have been sold. The remaining started decaying over the last three years. Even in the sold flats, there are hardly any occupants. “Most of the projects announced or planned in Vizag are still on paper. Though the real estate market has brightened, it lacks real momentum. Of course, it is better than what it was before 2009. However, it is yet to pick up on the expected lines.
Most of the flats are not occupied or are unsold in and around Madhurawada. The rental value is also very less. Those who bought flats in this particular area had done so only for investment purpose and among them, most are NRIs,” said P. Koteswara Rao, vice-president, of Confederation of Real Estate Developers Association of India, Vizag chapter.
The realtors are desperately looking at the government to promote Vizag as next IT destination and bring in IT and ITeS companies to New Vizag which is close to Madhurawada.
( Source : dc correspondent )
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