Real estate bubble bursts in CRDA
Real Estate Bubble Bursts In CRDA. The hype that raged in Andhra Pradesh after the announcement of the CRDA and the new capital in Thullur region seems all set to burst with land prices crashing almost overnight.
The realty bubble of real has burst. The hype that raged in Andhra Pradesh after the announcement of the CRDA and the new capital in Thullur region seems all set to burst with land prices crashing almost overnight.
Price of land in Thullur and its surrounding areas that comprise the core capital region had shot up to a unprecedented heights sparking a land-buying frenzy by all and sundry. Many money bags from Krishna, East and West Godavari jumped into fray and realtors, builders and home loan agencies had the run of their life.
But universal Chinese truth that what ever rises like a rocket also falls like one has come true and abrupt change in the scenario with prices of property plummeting has shpocked the buyers and sellers. The indecisiveness of the government in fixing locations for key infrastructure in the capital region is said to be the chief reason for the dip.
“Huge investments have gone in. Nearly Rs. 6,000 crore is said to have been invested in this region. The prevailing uncertainty is a major cause of concern and the government’s indecisiveness on development projects is adding to the confusion,” says R.V. Swamy, vice-president, Confederation of Real Estate Developers’ Association of India (CREDAI), Vijayawada.
It is now a reverse run on land in the region. Land transactions have suddenly come to a halt. In Thullur region, an acre of land was sold for Rs. 1.5 crore to Rs. 1.7 crore, but it is now available for Rs. 70 lakh,” says Gadde Rajaling, president of Greater Vijayawada Builders’ Association. According to government records, the total land in the three mandals of Thullur, Tadepalli and Mangalagiri comprises 54,000 acres.
The existing villages are located on nearly 9,000 acres while nearly 10,000 acres are government land and efforts are on to pool the remaining 35,000 acres for capital construction. Official sources claim that 22,000 acres of land have already been pooled but unofficial sources say that hardly 150000 acres are in the Government kitty so far.