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

Feb 19, 2015
PUNE: The report prepared by the planning committee on the development plan for old city areas will be made public after it is presented to the civic general body (GB)
Feb 19, 2015
GHAZIABAD: Residents of five multistorey residential complexes in Indirapuram and Kaushambi have been saved from the withdrawal of several facilities
Feb 19, 2015
Bengaluru: There is a deficit of affordable homes for majority of the population, either on sale or to rent
Feb 19, 2015
Mumbai: The Brihanmumbai Municipal Corporation (BMC) last week submitted the city's new coastal zone management plan (CZMP)
Feb 19, 2015
MUMBAI: The Confederation of Indian Industry has welcomed the proposed increase in floor space index (FSI) in the draft Development Plan 2034
Feb 19, 2015
MUMBAI: Construction work on new projects is unlikely to be taken up for at least a year as builders will await Development Plan 2034
Feb 19, 2015
BHUBANESWAR: The Congress and the BJP stepped up attack against chairman of Western Odisha Development Council Kishore Mohanty for grabbing government land in Jharsuguda tehsil
Feb 19, 2015
New Delhi: The expectation is rising that Finance Minister Arun Jaitley in the Budget may announce some stimulus package for the infrastructure sector
Feb 19, 2015
New Delhi: The one issue that infrastructure companies, both public and private, have always faced in India and are still reeling under is land acquisition
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

Latest Realty News Of State

Realty Talk's