Investors land in a big mess
Land prices in parts of Krishna crash after clarity on capital
By : DC Correspondent
Update: 2014-10-16 05:50 GMT
Vijayawada: The recent announcement of Chief Minister N. Chandrababu Naidu that the state capital will be established in Guntur district has dealt a severe blow to the real estate business in Krishna district, especially in Nuzvid, Agiripalli, Gannavaram and Bapulapadu mandals.These mandals had seen investors pumping in money in the realty sector, which resulted in land prices soaring following media reports key administrative offices will come up in these mandals.
Statements of some ministers added fuel to this assumption.A number of ventures, most without the stipulated approvals, cropped up and sold like hot cakes at abnormal rates. Mandals adjacent to them also witnessed a boom. Price of land shot up to Rs 2 crore to Rs3 crore per acre. The situation changed in a flash after the CM’s ‘clarification’.
The realty sector in most of the said mandals now presents a pathetic scene. Those who pumped in money are now a worried lot and are clueless on how to get back their investments, as the land prices have dipped to Rs1 crore or Rs1.20 crore per acre.
Kilaru Srinivas of Adavinekkalam said that after Mr Naidu’s statement, the fleet of luxury vehicles carrying prospective buyers that was a regular feature for some days has vanished. N. Ramesh said that his plot fetched a price of Rs21,000 per sq. yd till very recently, but now buyers are shying away from paying even Rs15,000 per sq. yd.
Kutumba Rao of Gannavaram said that he has invested huge sums on land in anticipation of the ‘capital’. He said that there were many like him who are now praying that God pulls them out of the financial mess. Meanwhile, Srinivas, a sub-registrar, said that the number of registrations in September was high, but the figure may drop in October.