Hyderabad: Real estate developers and builders are keeping their fingers crossed not knowing when the steep slump in real estate business would blow over.
Builders, who constructed commercial complexes in prime areas in Kadapa city are in disarray as nearly 200 complexes are either unoccupied or with occupation only on the first floor above the parking bay. Commercial complexes that were completed anywhere between the last six months and one year near Koti Reddy circle, Rajiv Park, Potti Sriramulu circle, Y.V. Street and Nagarajupet in the heart of Kadapa have no takers.
With their investment locked up, many builders who secured loans by mortgaging the complexes to banks are unable to even to make timely repayment of their bank loans, realtor G. Vasudeva Reddy says. Some banks have been considerate to permit the defaulting realtors to repay their loan instalments in a bimonthly or quarterly basis.
Realtors, who are financially strong have shifted their attention to invest in Bengaluru, Tirupati and in and around Vijayawada, close to the proposed State capital. “Tolet” signs have been put up at many commercial complexes for nearly a year and none are coming forward to occupy them, despite reduction in the advance and rental demanded earlier, he adds.
Not a new commercial complex came up in Kadapa in the last few months except a couple of them which have signed agreements to house banks. Even the ground floor showrooms in some complexes have remained vacant with some cloth showrooms winding up on Kadapa Railway Station road.
Coupled with lack of demand, the realtors are bearing the brunt of the steep rise in the prices of cement and sand. The gloomy situation on the real estate front might continue for two to three more years, Mr. Vasudeva Reddy fears.