VIJAYAWADA: The real estate sector in Krishna and Guntur districts, which was touted to scale new heights after the region was selected as the new capital of Andhra Pradesh, is facing a crisis with land rates reportedly on a downward spiral.
In areas like Nuzvidu, Nandigama, Mangalagiri, Gannavaram and Amaravati, which had witnessed a massive real estate boom post the bifurcation of the state, the business has slowed down. Builders and real estate agents, who had bought land in droves, are now wondering about their future. In fact, a 38-year-old realtor even ended his life here on Tuesday.
“We did not anticipate that the realty sector in Krishna-Guntur region will face trouble. Land prices had consistently increased in the two districts in the past four decades. But the slump now is causing huge losses to realtors who had invested heavily, particularly after the division of the state,” said Y Adinarayana, a builder from the city.
Holding the state government responsible for the unexpected slump, realtors remarked that it had failed to push through major development and infrastructure projects.
“The government could not get sufficient financial help from the Centre for the capital city. It also failed to kick-start projects such as the Machilipatnam port, airport expansion and launch of work on AIIMS and NID. Nothing seems to be moving in the proper direction,” said Guduru Chandrasekhar, a realtor.
Although the fall in land prices in Nuzvidu and Agiripalli is on expected lines, realtors are surprised over the drop in business in Tenali, Nandigama, Guntur and Sattenapalle, which are closer to the capital region. At one point of time, land prices in Krishna and Guntur districts hovered around Rs 2 crore per acre. The prices went up to Rs 3 crore in Nuzvidu as speculation was rife that the capital would come up in the vicinity.