VISAKHAPATNAM: With the heat and dust of elections finally settling down, realtors in Seemandhra are heaving a sigh of relief. They have their fingers crossed that after the lean spell in April, the formation of a new, stable government at the Centre and an end to the much-prolonged bifurcation tangle will spur growth in the realty sector from June onwards.
With election fever reigning high in April and first week of May, realtors said that not only had construction come to a grinding halt, even buying decisions had taken a backseat with many buyers waiting for the elections to be completed and also to see if a stable government is formed at the Centre and state, which would make their investments worthwhile.
Sources at the stamps and registration department admitted that registrations dropped by nearly 25% in Vizag during April 2014 as compared to the same month in 2013. "We think business will be a bit dull during this month also, but it will slowly pick up in the next couple of days and gain traction from June onwards," said a stamps and registration department official.
But once the bifurcation deed is done, realtors feel investing in Vizag will be a natural choice for realty buyers, whereas other cities such as Vijayawada hold the potential for investments depending on the choice of the capital.
Explaining the reasons for Vizag as an destination immaterial of whether it becomes capital or not, a city-based real estate developer, said, "The city has been identified as one of the hubs that will drive IT, manufacturing, tourism and education in Seemandhra. Vizag has also figured high on the priority lists of state and national leaders that it will become a key driver for hardware sector. Either way Vizag is going to be the commercial capital of the new state, there is no doubt about it." Recalling that TDP and YSRCP, both of whom have chances to form the government in the state, have specifically mentioned Vizag in their manifesto, realty consultant S Chandra feels it is reason enough to expect good tidings for the city, which has a natural potential.
"The future capital will definitely drive growth around it and at the moment the Vijayawada-Guntur region looks to be the top choice. But Vizag will continue to grow even as other areas such as Kakinada, Rajahmundry and Tirupati will also have their share of growth depending on the government's decisions." Meanwhile, Cushman & Wakefield's Hyderabad office head Veera Babu said, "The election results will give the first indication of how things are going to shape out. People will wait for a stable government. Also, government policy, incentives and special status will determine future investments," he said adding that probability of investments in manufacturing sector will also be a key driving factor for the real estate sector of Seemandhra and Vizag in particular.
Speaking to TOI, senior marketing manager of Shriram Properties, Ravi Shankar said, "Elections will be kind of a catalyst and we expect the demand to bounce back. A lot depends on the new state but there are lot of expectations from Vizag as far as development and investments go. The realty sector is linked to the political process and customers also have taken a break though there have been some queries over the past few days. We expect a surge in demand for real estate from June onwards and expect it to be strong in the next couple of months." However, some struck a cautious note stating that much will depend on the next government and its priorities. "We have to wait for the next government to be formed. A lot depends on whether it will be a stable government and what its relation with the Centre will be. We will have a better picture after 10-15 days," said city-based developer K S Narayana.