VIJAYAWADA: The proposed reorganisation of districts in the State will benefit the realty sector in the long run and there will not be any short-time gains, opined realtors. After 4-5 years, the newly formed districts will witness a realty boom if expected development takes place in those districts, they said.
Speaking to TNIE, real estate developer Ch Sudhakar from CREDAI said formation of new districts means development of new places of administration and there will be migrations, albeit in a small scale, and this may stop migrations from those places to other States.
“Demand for lands will increase when there is improvement in basic infrastructure,” he pointed out. However, given the present situation of the state economy, it will take time for the new districts to get infrastructure facilities to make them truly functional in all aspects. Another realtor said opportunities will be more at the new district headquarters.
“District reorganisation will have a positive impact on the realty sector, especially in the affordable housing sector. However, this can be witnessed only after 4-5 years. Development of new district headquarters means creation of better infrastructure facilities. Once the development starts, more and more people would come up seeking jobs, which in turn will increase the demand for affordable housing,” Obul Reddy of Honey Group observed. However, there is a voice of caution from some realtors, who cite Amravati as an example.
“When Amaravati was proposed, there was a realty boom and several people have invested on lands. But now, the land value has diminished, with policy change and lack of the expected development,” KCS Bose, another realtor, observed. He said real estate business will pick up in the proposed new districts only when there is development at district headquarters and it is all in the hands of the policy-makers.
Increase in market value
Realtors have expressed concern over the proposed increase in the market value of lands in the ensuing fiscal. They say that it will adversely affect the Covid-hit sector. “We urge the government to reduce the registration charges from the existing 7 per cent to 3-4 per cent at least for a couple of years,” Sudhakar of CREDAI demanded. It was done in Maharashtra, Tamil Nadu and a couple of other states, he pointed out.