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Capital announcement gives jolt to Vijayawada real estate sector

VIJAYAWADA: At a time when the real estate sector is on the path of recovery in Vijayawada, the state government’s announcement on shifting capital to Visakhapatnam has delivered a blow to the stakeholders.

Realtors who invested huge amounts on developing ventures on city outskirts are in a limbo with the announcement, which is said to be a reality in the coming months.


The sector is facing hardships since 2019 with the government’s three capital proposal, and uncertainty over the continuation of Amaravati as administrative capital. Hundreds of flats in medium scale apartment complexes remained unoccupied and major infrastructure development projects had to be stalled midway.

Protests taken up by the Amaravati farmers further impacted the real estate sector. However, a judgment given by the high court directing the government to retain Amaravati as capital gave a new lease of life to the sector.

Many real estate companies started projects including construction of premium villas, flats and housing layouts. Realtors focused on Vijayawada city outskirts and other areas, that are connected to NH-16 and NH-65.

The projects also received positive response from the public. People from Hyderabad, Vizag and other areas invested in these projects. Buyers who gave token advance for booking flats are cancelling their bookings, forcing the promoters to refund their advance amount.

“Our future is in the doldrums. We invested a huge amount in developing the ventures and got permissions from APCRDA. Our future is uncertain as we will become bankrupt soon,” said Kosaa Bala Naidu, a promoter from Gosala of Krishna district.


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