This is ‘real’ estate, no place for sentiment

The real estate prices that soared in and around Visakhapatnam, spurred by the Telangana sentiment two years ago, have more or less stagnated.

After the 2004 general elections, the State began promoting Visakhapatnam as Tier Two IT destination. The Pharma City, Brandix Apparel city and IT SEZs have spurred demand. But then, after peaking till about a year ago, it plateaud.

The Visakhapatnam Urban Development Authority has focused on the Madhurawada area, the IT hub. Though a number of big names in the real estate have bought land in VUDA's auctions, no significant development has been taken up.

"Had that taken place, the demand would be on," says K. Subba Raju, president of Apartment Builders' Association. Industry-watchers admit that Telangana sentiment did jack prices in Vizag, but the progress has not kept pace with the projections.

"Now the natural strengths of the area for development of software isplaying a major role ," says N.C. Saran, Director of SatyaVani Projects and Consultants Pvt Ltd.

G. V. PRASADA SARMA
Visakhapatnam

The issue of Telangana, whenever it took centrestage in last few years, has sent the real estate into a tizzy. From a mere pronouncement of the issue to electoral battles fought over it, the subject ended up casting shadows of worry on the industry. Animated debates on the possible effects have been doing the rounds ever since.

However, now though the political scene is warming up to a protracted electoral battle and Telugu Desam Party came out with its stand on Telangana, the real estate industry is no longer interested in the matter. Its cup of woes is brimming, what with near stagnation in the growth and happenings in far-off US creating troubles here.

Developers and builders admit that the Telangana issue was not worrying them as it did earlier. The property prices, which had boomed , have stabilised to a large extent . “Speculators have dried up from the market and only genuine home buyers are left, so these issues are not going to matter much,” avers Anand Reddy, PBEL Executive Director.

Earlier, a small statement from TRS would send the industry into jitters but now even the TDP’s major decision on Telangana fails to have an effect, he adds.

“If the industry was in boom phase, it would have mattered. But already we are in trouble and this is not going to affect us any further,” says C. Prabhakar Rao, president, Greater Hyderabad Builders Federation President.

Unrealistic growth and lack of fundamentals propelled the boom but its effects were being felt now. “There was a time when the T-factor would shake us badly, but not now. The real estate is already faced with difficult time,” he says.