Vizag: Having put the bifurcation blues behind them and though struggling with a cement and sand price spiral, realtors are readying themselves for a new phase. A slew of developments particularly the foundation for IIM and the functioning of the Startup Village have brightened things for realtors. But, it’s the announcement of development of the Smart City that captured everyone’s imagination, although none is sure about how it will turn out to be.
With the price of sand skyrocketing, it is turning out difficult for builders to absorb it as their project costs are going up and prior commitment to customers has been made. “But it is the announcement of Smart City that has brought in renewed interest,” says a builder with several ventures in the city.
The Visakhapatnam chapter of Confederation of Real Estate Developers Associations of India has recently celebrated its silver jubilee. To mark the year and to gear up for future developments it is hosting a property show from February 27 to March 1. CREDAI Andhra Pradesh Chairman K. Subba Raju says it will be an annual feature. The idea appears to be making the best of the potential generated by the focus on Visakhapatnam after bifurcation. Besides disposing of the present stock of houses, builders want to showcase future projects as well.
Demand has been steady and post-bifurcation prices have risen marginally by 10 to 15 per cent, says B. Raja Srinivas, Chairman of CREDAI, Visakhapatnam chapter. “There may be a bit of oversupply. This is the right time and place to acquire a house. Property rates are going to increase by 30 to 40 per cent in the next one, two years,” he says.
Increasing cost of land, inputs and labour and more demand will contribute to the cost spiral. However, there will be more big projects with the focus almost shifting to the outskirts where land is available and the inventory will also increase further, he says.