Image used for representational purposes (Express Illustrations)
Image used for representational purposes (Express Illustrations)

Andhra's real estate business limps back to normalcy

Realtors are now offering apartments at a cost less than the current market price, which is increasing due to the rise in the cost of construction. 

VIJAYAWADA: Realtors are buoyed by the rising demand in the market for mid-segment housing after a long break due to Covid-19. They are now offering apartments at a cost less than the current market price, which is increasing due to the rise in the cost of construction. 

“Covid-19 pandemic has affected the realty sector and only for the past couple of months, it is limping back to normalcy. To retain customers, everyone is going the extra mile. Take our case, we were selling a 2BHK apartment for Rs 42 lakh before the pandemic and today we are selling it for the same price despite an increase in the cost of construction besides offering additional facilities,” explains Srikrishna of Pavan Builders. 

“We are urging the State government to cut down on registration fees like West Bengal and Odisha, which helped the realty sectors in those States. Those states have cut down registration fees to 2 per cent, while ours is around 7.5 per cent. Just imagine the demand if the registration fee is reduced,” another builder said. 

Realtor R Swamy said post-December 2019, there has been a slump in the realty sector owing to several factors and the problems compounded during the pandemic. “Now, the sector is slowly recovering and this is the time we expect the government to help us by regulating the construction cost,” he said.

Ramana Rao of CREDAI said, “Those who faced problems in rented houses during Covid are more eager to own their houses. I feel it could be improved further if the government resolves the issues related to capital, construction costs and GST on building material.”

CREDAI general secretary Ramesh Ankineedu said the dream of owning a house for middle class people is now becoming a reality as housing loans have been made easier. “The unsold inventory which was around 9 lakh before Covid is now 7 lakh in Vijayawada and surroundings, which is a good development,” he said. 
 

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The New Indian Express
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