N. Chandrababu Naidu, Chief Minister
Vijaywada: Investors willing to put their money in the new capital of Andhra Pradesh confront a fresh confusion. The uncertainty over exact location of the capital kept them on the hold for a long time.
Now that Chief Minister N. Chandrababu Naidu has declared that the capital will come up around Vijayawada, aspiring investors are groping in the dark on the exact direction in which Mr. Naidu’s capital plans are headed.
The real estate boom has almost reached a saturation point in the suburban stretches of Agiripalli, Adavinekkalam, Nuzvid, Gollapalli and Hanuman Junction.
“Reports that nearly 20,000 acres of government land is available near Ibrahimpatnam and Kanchikacharla on one side of the Krishna and Amaravathi on the other have sent land prices skyrocketing. Prices of even remote places on these stretches have gone beyond reach,” says Y.V. Ramana Rao, president of Vijayawada Chapter of Confederation of Real Estate Developers’ Association of India (CREDAI).
Mr. Rao says that while big players are all set to launch ventures in the fringe areas, local builders have also formed groups to claim their share of the capital pie by launching mega ventures.
“Local builders are planning high rise buildings and gated communities in Kanuru, Poranki, Gollapudi and Tadigadapa areas in stretches of 2-3 acres of land,” he says.
“Most investors are waiting for land price correction which is likely to take a few months. Wherever you go, people are quoting crores for land, preventing investors to move ahead with their plans,” says K. Pattabhi Ram, President of Andhra Pradesh Hotel Owners’ Association.
As far as hotel industry is concerned, A star hotel is likely to come up near Gannavaram airport and three-four other names are doing the rounds, he informed.
“Because of wild speculation, land prices in this region have reached a saturation point. They will not go any further and will come down,” he says.