VIJAYAWADA: As soon as Vijayawada was declared to be part of the capital region, the realty sector saw a mad rush. Investors from the city and across the state channelled money on land in anticipation of making fast bucks. However, the mad rush which reminded one of the infamous Gold Rush in California in the late 1800s caused more harm to the investors. Registrations in the city came to a standstill and there are no buyers for land now.
The exorbitant price that is quoted on a piece of land is driving away potential buyers. A square yard of land in the prime area is in the range of Rs 1 lakh to Rs 1.4 lakh. The land prices in the city are a tad higher than those in posh areas of Hyderabad and Bengaluru. While a square yard of land in Banjara Hills and Jubilee Hills is roughly priced at Rs 80,000, the same is priced at over Rs 1 lakh in Benz Circle here.
It's a double whammy for the investors, who are badly hit with lack of buyers and they are unable to sell the land even if they want to. "I have invested a lot in the hope that I will reap profits. To be true, if there is a buyer, who is willing to buy the property at the current market price, I will get a handsome profit. But, that is not the case. The land prices in the city are so overpriced that business houses and corporates are looking at semi-urban areas. I have channelled all my money into buying land. I am in urgent need of money and I cannot sell the land. I am doomed," Kiran Bolempalli, a businessman, told TOI.
Kiran isn't the only one who is facing this grim reality. Many investors are staring at a possible breakdown where their investment is locked for years to come. If they want to realise money, they might have to sell land at a cheaper rate. Realtors said that there was panic investment initially where in many encashed other assets to invest in land, which increased the land prices exponentially making it out of reach for everyone.