Real estate developers in a disarray
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
Feb 19, 2015
Source : The Hindu

 

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.

Latest Realty News

NMMC-plans-green-workshop-on-old-building-makeover
Feb 18, 2015
Navi Mumbai: One-day brainstorming workshop on February 24 to discuss how old and dangerous structures can be redeveloped as green buildings
AAP-to-fight-'low'-compensation-for-land-acquisition
Feb 18, 2015
Chandigarh: The Aam Aadmi Party announced not to let Haryana's BJP government acquire even a single inch of land if it didn't amend rules to offer low compensation to farmers
N-Chandrababu-Naidu’s-new-mantra:-Greening,-beautification
Feb 18, 2015
HYDERABAD: Go urban green is the new motto of AP chief minister N Chandrababu Naidu
Govt-exceeds-brief-with-demolition-ban
Feb 18, 2015
NEW DELHI: The jury is still out on who and to what extent will benefit from AAP government's decision to ban demolitions in the capital
‘Treating-FSI-as-a-commodity-will-be-disastrous-for-the-city’
Feb 18, 2015
MUMBAI: The city's vertical development means problems in infrastructure and basic amenities, this is what experts feels
K-Mordani-Realty:-Redefining-luxury-living
Feb 18, 2015
Mumbai: At the realty group, K Mordani, homes are a pathway to a luxurious life
Smart-cities-are-about-more-than-technology:-Martin-Rama
Feb 18, 2015
New Delh: Interview with Chief Economist, South Asia, World Bank
New-residential-unit-launches-down-by-24%-in-Ahmedabad
Feb 18, 2015
Ahmedabad: Subdued demand led to a decline of 24 per cent in new residential unit launches in Ahmedabad
Tatas-step-up-presence-in-West-Bengal-real-estate-space
Feb 18, 2015
Kolkata: The Tata group has increased its presence in the city real estate space by entering into a tie-up with a local real estate group
Realty-sector-welcomes-BMC's-proposal-to-hike-FSI-in-Greater-Mumbai
Feb 17, 2015
Mumbai: Realty players have welcomed the the BrihanMumbai Municipal Corporation's proposal to increase floor space index (FSI) up to 8

Latest Realty News Of State

Realty Talk's