VIJAYAWADA:The real estate developers in the CRDA region are caught in a dicey situation. With no approvals for new layouts, the real estate activity has hit the lowest ebb in the capital region.
Many real estate developers, who purchased land at exorbitant prices in the past, are now trying to get rid of the same by converting it into plots in unauthorised layouts. Using all their persuasive skills, they are selling such plots to unsuspecting buyers.
“We do not know when a clear picture will emerge. Right now, only a master plan for the seed capital has come out but the finer details have not yet been worked out. In this context, we do not know what we should do,” a real estate developer said. Now, they are worried over the investments that been locked up in the ventures that they wanted to promote.
“About Rs.300 cr is now locked in the CRDA area, with the government not permitting any new layouts,” Capital Real Estate Developers’ Association (CREDA) president N Sridhara Rao said and added that they had about 1,500 acres of land for which they were seeking layout permissions.
Sridahra Rao said that the government was not even giving permission for conversion of land use from agriculture to commercial, as the finer details of the master plan was yet to be worked out. “We are in a dilemma as to what we should do,” he added.
Real estate developers who are not in the big league are worried that unless the government comes out clearly as to which land is allowed for real estate activity, they will not be able to take up projects meant for middle class and upper middle class segments of the society.
“Already, the prices are high. Unless we start our ventures soon, it may become difficult for us to sell them,” a real estate developer pointed out.
According to him, 80 per cent of the land that is acquired by the government has been left for development of green belt which leaves only 20 per cent for construction activity.
The government would have to earmark certain areas for residential purpose but it had not yet been done so, he pointed out.