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Jagan Mohan Reddy’s 'complete shakedown of capital' announcement makes realtors adopt wait and watch policy

Though there have been no transactions of late and the offered price is Rs 15,000 per sq yard in place of the price that fluctuated between Rs 20,000 to Rs 24,000 a couple of months ago.

Published: 01st June 2019 09:00 AM  |   Last Updated: 01st June 2019 06:56 PM   |  A+A-

jagan. YSRCP

Andhra CM Jagan Mohan Reddy. (File | EPS)

Express News Service

VIJAYAWADA:  Real estate in the capital region of Andhra Pradesh is holding its breath to see what changes will occur in Amaravati, with Chief Minister YS Jagan Mohan Reddy announcing a complete shakedown to “set right” the capital city project, which he said “mired in corruption”. Jagan’s perceived attitude towards the Capital city has already brought down the land prices.

Though there have been no transactions of late and the offered price is Rs 15,000 per sq yard in place of the price that fluctuated between Rs 20,000 to Rs 24,000 a couple of months ago.

“It is true, some of the realtors in the region are ready to sell land at Rs 15,000 per sq yard, but there have been no takers,” said Rahim, a realtor, who owns Modern Homes based in Vijayawada. Apprehensions as to what will happen if the new government decides the scale down the capital city project -- will the land prices come down further or will climb up -- have made both realtors and prospective buyers adopt a ‘wait and watch’ approach.

“It is too early to comment on what will be the impact of the new government on the realty sector. We are hoping that the new government will ease the CRDA rules and give relaxation from the zonal regulations, so the real estate business, which has been dull for the last few months, will pick up the pace again,” said Ch Sudhakar from CREDAI. Further, non-availability of sand and increased prices of cement and steel have stalled the construction of several apartments and houses in both Krishna and Guntur districts.

“We are now waiting for the sand policy of the new State government and what it will do to make the sand available. Due to NGT orders, sand mining in upstream of Prakasam Barrage on Krishna river and other areas in the district has been put on hold. The sand that was normally available at Rs 2,500 per truckload now costs around Rs 12,000 per truckload, that too in a very limited quantity. Hence nearly 100 building projects in Vijayawada have been put on hold,” CREDAI Vijayawada president RV Swamy said.

The cement which now costs Rs 350 per bag and iron which costs Rs 49,000 to Rs 50,000 per tonne, is putting pressure on real estate business. A delegation from CREDAI will soon meet CM YS Jagan Mohan Reddy and request him for a new sand policy that is beneficial to all. 

Sharp increase in  apartments  construction 
In the last five years, there has been a sharp increase in construction of apartments in Vijayawada, particularly in Poranki, Kanuru, Currency Nagar, where the prices of the apartments have been steady.  Similarly, the demand for apartments in Gannavaram continues. With the change of guard, it is being assumed that demand for land will go up in Nuzvid, Surampalli, Mylavaram, Malavalli, Ibrahimpatnam



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  • Srinu

    what Jagan can do is remove the corruption contracters and give the same contracts to the new people and let the contruction go on with the same plan. So there is no reason to stop building capital amaravathi. If Jagan can build this capital with the same plan earlier then really Jagan is a man who is having spirit...Its really a golden chance for Jagan to build the new capital and can get into the peoples mind erasing chandrababu naidu is not only the person who can build capital even Jagan can do better than that
    2 years ago reply
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