Vijaywada: This year’s Deepavali was perhaps one of the dullest festivals for many traders in the city. Most of them attribute it largely to the boom in real estate sector post-bifurcation and partially to the tumbling gold prices to a four-year-low mark.
The real estate sector, which has witnessed an unusual boom in the aftermath of the State division, is eating into the income of other segments, including small and medium traders, they complain. The rapid pace at which prices of land started increasing immediately after the State was split encouraged people from all walks of life and of all financial statures to reorganise their existing financial commitments and pool up funds to invest in the sector.
With property boom spreading in all directions, real estate in this region is touching new heights. Flying high on the wings of booming real estate, property has become a dream for every small and big investor looking forward to dig profits. Different sectors are eyeing the property market for a variety of reasons.
Go to a centre, a grocery store, a mall, a road-side kiosk or the neighbourhood paan shop, property brokers seem to be ruling the roost discussing with just about everybody they come across about ‘excellent’ deals using terminology like appraisal, assessment, asset, building bylaws, capital gain, title deed and cash flow.
“The extra buzz my shops acquire during Deepavali every year was missing this time. People, especially young buyers, would throng my two shops (selling imported chocolates and gift articles) to buy gifts . But there were no footfalls this year and we waited in vain till late evening of the festival day. Riding on the prevailing boom, the real estate seems to have gobbled up the festival income of even small and medium traders,” rues Kamlesh Jain, who has two stores in a local mall.
The remarkable dip in the price of yellow metal is yet another diversion for people who are making the best of the cost-cut of gold, says owner of the adjacent store.
Mr. Jain and his friend are not alone in feeling let down by even their regular customers. There are others who choose to quietly grin and bear.