Realty prices shoot up in Krishna, Guntur
The real estate of both Krishna and Guntur districts has gone up to an unbelievable scale ever since the capital city has been earmarked and named. Adding to the woes of middle class people and employees who live on monthly pay basis, renting a house has emerged a challenge that questions the livelihood and expenses of a family.
- House rents go up steeply, thanks to the announcement of capital region
- Value of land increases to Rs 12 crore per acre from Rs 2 crore earlier after State bifurcation
- Govt employees reluctant to shift
Vijayawada: The real estate of both Krishna and Guntur districts has gone up to an unbelievable scale ever since the capital city has been earmarked and named. Adding to the woes of middle class people and employees who live on monthly pay basis, renting a house has emerged a challenge that questions the livelihood and expenses of a family.
Land is a limited commodity and the landlords who own it are making most of it, taking advantage of the area being declared as capital region. The government employees who are all set to shift their base to the city are terrified at the trending numbers. The prices of real estate started going up once the State has been bifurcated. It has drastically gone up by several times.
The land prices which were at Rs 2 crore an acre before bifurcation are now priced at Rs 12 crore and the realtors and enterprising politicians have bought several acres around Tadepalli, Mangalagiri, Tulluru, Tadikonda and Amaravathi mandals of Guntur, Gannavaram, Agiripalli, Nuzvid, Nandigama, Ibrahimpatnam and Vijayawada rural mandals of Krishna district.
Getting hint, the house owners have made excellent bargains cashing in on the requirement of the people. B Narasimha Rao, a real estate agent in the city, said, “The real estate was dull when the capital speculations were rife. Nobody even came forward to sell any property though there are potential buyers.
Now that the capital region is named and earmarked, there is no middle class affordability for a plot or house. Some people who are above middle class economy are buying apartments in a rush. The house rents have increased enormously beyond the reach of common man.’’
The house rents at Bhavanipuram and Vidyadharapuram areas have gone up from Rs 5,000 a month to Rs 10,000 a month for the double bedroom flats. The rental hike is almost same in Ajitsinghnagar, Satyanarayanapuram, Machavaram and Krishna Lanka areas where the middle class families live. However, in the posh areas of Mutyalampadu, Mogalarajapuram, Governorpet, Suryaraopet, Labbipet, Patamata, Currency Nagar and Ashok Nagar, the rents have gone up by several times.
“There are many people who are looking out for rental houses. Also there are many to-let boards being displayed at almost every street. The house owners are adopting rigid stand on their rents which are almost costing a bomb. Therefore, though there is demand and supply, many houses are still lying vacant’’, opined an advocate K Rammurthy, who is on a hunt for a house.
The two-bedroom flats which were rented for Rs 10,000 a month till the other day have now gone up from Rs 18,000 to Rs 22,000. Needless to say, the extra plush houses with balconies, sufficient space are costing somewhere between Rs 25,000 to Rs 30,000 depending on categories like apartments, group houses and individual houses.
Unable to bear rents in bigger houses, some people were planning to move to smaller ones. “I came along with a few friends to the city for job six months ago. We already made a deal and paid advance for an apartment near Bharati Nagar which is near to my workplace.
Finally when we were about to settle in the house, the agent told us that the rent was hiked instantly. We had no other choice except to pay the demanded amount. We are looking out for another smaller place’’, said professional hair stylist Mun Mun Nath. Ironically, once the region that was considered as far away and outskirts is highly in demand now.
The area and houses, apartments and plots across Tadepalli, Vaddeswaram and Mangalagiri are cheaper until the capital city talks evolved. The rent of a double bedroom apartment ranged between Rs 5,000 to Rs 7,000 and an individual house below Rs 5,000. The rentals now have gone up by several times.
Once vacant apartments constructed in townships, group houses are all owned now though they are lying vacant. Buyers of these flats are awaiting potential tenants. However, the government employees who are all set to start shifting their base to the city and capital region are taken aback by the rents that are being quoted for houses. Until the government arranges for a dedicated space for the employees in the region, they ought to put up with the expensive housing.
By:Ch Sowmya Sruthi