Realty, construction sectors wait for poll results with bated breath

Realty, construction sectors wait for poll results with bated breath

  • Fears of possible shift of capital leads to a halt in real estate transactions in the capital region for the last two years
  • Many companies which acquired lands, are adopting wait-and-watch policy in grounding project works
  • Construction sector players are asking the govt to ease stringent norms so that private investment flows into the sector creating infra and jobs

Vijayawada: Uncertainty prevailed in the construction sector and real estate market in Vijayawada-Amaravati-Guntur cities as stakeholders await the results of Assembly elections to be declared on May 23 with bated breath.

Though no one is making public utterances, the elephant in the room is whether Amaravati will remain the capital of the state if YSRCP comes to power.

In the absence of any specific assurances from party during his election campaign, barring a comment by party chief YS Jaganmohan Reddy about his newly-constructed house in Mangalagiri, builders, property owners, investors and common people in the area are all anxious over the fate of the region in the event of TDP failing to romp home.

Agitated players in the construction sector are urging both TDP and YSRCP to develop Amaravati as the property of the state by encouraging private investment and participation instead of financially overstretched government spending all the money needed to develop the green field capital.

Heady realty market in capital region, which saw zooming of prices to Rs 40,000 per yard, has been in freeze with no transactions in the area in the last two months.

Several infrastructure companies and real estate groups which acquired lands, are adopting wait-and-watch policy on grounding their proposed projects.

Similarly, several hoteliers and medical and health care firms acquired land in the capital region, but are treading cautiously in starting works of the projects.

Interestingly, a section of investors are ready to continue with the projects only if Chief Minister N Chandrababu Naidu returns to power. But too are hoping that there will be no impact on Amaravati even if Jaganmohan Reddy comes to power.

But the general view among political circles is that development of Amaravati will be stalled if YSRCP wins the polls.

A senior member of Bezwada Builders Association, on condition of anonymity, said that there were rumours that the capital might be shifted to Donakonda in Prakasam district in that event.

Some sections are keeping their fingers crossed on the issue taking solace from Jaganmohan Reddy's statement during poll campaign just four days before polling day that he would go nowhere and he had even constructed a house at Tadepalli in Guntur district.

Jakka Srinivas Rao, who is general manager in a noted real estate company and also YSRCP leader, said that there would not be any change in the capital after their party comes to power. "It is not easy to change the capital," he says.

It may be noted that despite apprehensions, leaders of YSRCP also bought lands in Tadepalli mandal in Guntur district.

The real estate and construction sector players are urging both TDP and YSRCP to encourage infra companies with liberal guidelines to create business and employment opportunities in Amaravati capital.

According to them, the Capital Region Development Authority (CRDA) has created hurdles to several infra companies by not issuing permissions in the name of agriculture zone.

One leading builder in the city said that his company has to stop the biggest venture in Krishna district due to CRDA rules.

By imposing curbs like these, the government has stopped the economic activity driven by real estate and construction activity, he opined.

Show Full Article
Print Article
Next Story
More Stories