Those having interest in real estate business are investing in real market in the capital of Karnataka not only after decision to bifurcate the state but even before _ for the past three years _ the uncertainty over whether the state will remain united or divided.
“Apart from the uncertainty, as there are no major development activities taking place from some time, the realtors are not coming forward to invest here and are finding their routes to Bangalore, where the business picked up momentum. Though, some of them went ahead with purchasing lands on the Tirupati-Mannavaram stretch after the prime minister laid the foundation stone for the NTPC-BHEL joint venture four years ago expecting good business but, with no progress in the project work there, the real market has come down and those who purchased lands there have been facing serious financial problems since then,’’ said a realtor. However, in the case of the proposed Information Technology Region (ITIR) project coming up in the same stretch, it might help the real estate business irrespective of the state’s status, he added.
“As of now, there is almost no business in and around Tirupati. Those who invested in the business some time ago are forced to make distress sales and suffer losses in the absence of demand especially in the last four months since the decision was taken to divide the state,’’ said MSR Association Constructions chairman Mabbu Chandrasekhar Reddy.
Except the decision on state’s bifurcation, no other issue like the new capital city of the Andhra Pradesh as well as some other packages regarding the industrial development and other issues yet to be announced by the government and the real business will depend on all such issues and then only we can get a clear picture on the business, said another realtor.
It is also possible that amidst reports that the new capital city will be developed in and around Ongole city and the Centre giving nod for Dugarajapatnam seaport in the neighbouring Nellore district, the real business in Tirupati and surrounding areas may witness a boom. As Tirupati has rail and air connectivity to all the major cities in the country and also being located near the metropolitan cities of Chennai and Bengaluru, the real estate business would witness good business, the realtor said.
The speculation that the capital city of the Seemandhra will be developed either in the forest lands in Prakasam district or between the Vijayawada and Guntur cities attracted some investments in those areas.
But with other cities like Visakhapatnam and Kurnool too being tipped to become the new capital, realtors as well as people have become a confused lot, and are not willing to take any risk until an announcement on the new capital is made.
With Tirupati also standing in the race to emerge as the capital city, many land-owners are not coming forward to sell them in anticipation of striking gold.