Visakhapatnam: Announcement of US support to develop Vizag into a Smart City by Prime Minister Narendra Modi himself has brought cheers to realtors, who have been cribbing since sometime due to slump in market ever since state government’s decision to make Vijayawada as the state capital.
They have increased the land and flat costs at least by 30 per cent overnight, especially in the areas of Endada, Sagar Nagar, Madhurawada, Chandrampalem, PM Palem and Kommadi where many IT companies are expected to come up in the vicinity, which is touted as New Vizag.
Realtors expected to begin sales by marketing that Vizag will be capital and then later changed their track and started propagating that whether capital or not, city remains an important destination in the state with many investments that pour in the coming days, along with premier institutions.
But there were not many transactions as expected. Apartments were the worst hit as thousands of flats are left unsold and depreciation has already begun.
“I was looking for a decent land site in and around Endada and Madhurawada and zeroed in a 400 sq yard plot in Endada just three days ago. During the preliminary discussions the owner offered it at Rs 23,000 per sq yard. When we wanted to finalise the deal and close it on Thursday morning, he was hell bent on selling it at Rs 35,000 per sq yard. I was surprised to witness such a drastic change in just two days and now he says its because Vizag would be the Smart City and its official,” Paramesh K, who lives in Virginia on a visit to his parents at Vizag, told Deccan Chronicle.
According to real estate trade insiders, around 5,000 flats have been lying without any takers since a year and the depreciation has already begun.
Even NRIs, who normally buy flats as investment are also not interested this time in Vizag due to high prices.