No ‘real’ business in Visakhapatnam

Visakhapatnam: The Centre’s exercise to divide the state failed to spur the real estate business in the city.

Realtors hoped that the Centre’s move to split the state would infuse a fresh lease of life into their business. However, there are no signs of it and in despair, realtors, for the first time in Vizag, had begun giving special offiers to the buyers.

The sops include free registration of plots, cars, etc. Realtors are of the view that these offers would help them make some money at least than being dry, if none of the plots are sold.

They are ready to bear 8 per cent of the total value of the plot that has to be paid to the land registration department.

There are more than 100 such layouts, that are lying idle without many transactions across the district. First, it was global economic slowdown, later, ambiguity over the fate of Andhra Pradesh
since 2009, that has pushed the realty sector into slump.

The UPA’s flip flops over its decision, regarding division,  has made buyers adopt the ‘wait and watch’ policy.

As ambiguity still continues over the location of the capital of the residuary state, there are not many land transactions in the revenue department. This is mounting the financial burden on small and medium scale realtors, who invested in the business borrowing money from private lenders at high interest rates.

“We hoped that Vizag would be the dream destination for investors and started investing in developing layouts from 2008. But most of plots remained unsold and now, we have started this offer to attract buyers,” said a real estate agent Bhaskar Rao, who developed two ventures of 40 plots each near Kottvalasa, Viziangaram.

He also added that they need not be surprised if some of the realtors go a step ahead and announce that they would furnish the new homes, if buyers booked a plot.

“The real estate sector in Vizag, witnessed a slump in 2008. Since then, the situation has not improved. Our members are now desperately looking for alternative ways to dispose the plots,” said APREDA local chapter member.

Some real estate firms are also offering ‘arrangement of bank loans’. There are around 100 realtors doing business in Vizag.

Property prices have witnessed a sharp rise in Pendurthy zone, Dakamarri zone, Anandapuram, Yendada, Madhurawada, Thagarapuvalasa, Bheemili, Kottavalasa since 2009, when the Centre announced that Telangana would be carved out and that the process would begin.