Just a couple of months back when CM Chandra Babu Naidu announced that the new capital will be developed in and around Vijayawada, there was a boom in realty prices. But surprisingly, the prices have come consistently in the last few days.
Naturally, this has resulted in widespread concern among those in realty business.
Before Tullur was finalized as the spot, many names floated around such as Nuzeveedu, Agiripalli, etc. This led to people from real estate business buying or least trying to buy up huge tracts of land in all the proposed areas.
Some who actually bought the land invested huge amounts, read unbelievable amounts for the area, of money on the plots.
It has come out that a real estate investor bought his land at Rs 7 crore per acre. Now, the running price in the area is not more than Rs 3 crores as the core area of the capital has been shifted to Guntur.
Apparently, he is in a fix and is unable to figure out what to do as he has already paid Rs 4 crores to the farmers.
On the other hand, the situation is worse for people who bought land in Nuzeveedu, it is being said. But the real downside is that the rates that were floating around in Tullur some time back are no longer valid. Neither are people queuing up to buy land in these areas.
Meanwhile, the real estate investors have come to a conclusion that due to the packages being offered by the state government, they cannot hope to break even in business.
So, talk from Vijayawada is that nearly 300 realtors are down due to miscalculations. But it is said that they are confident of the market looking up once again pretty soon.
