Real estate sector picking up speed
Though demonetisation has affected the real estate business in East Godavari, most of the apartments, independent houses and group houses, however, are getting sold in places such as Rajamahendravaram, Kakinada, Amalapuram, Tuni, Ramachandrapuram and other small towns.
Before demonetisation, there was a real estate boom in and around Rajamahendravaram and Kakinada cities where prices rose abnormally. K. Kasi, who has been in the business for 15 years, said an individual house constructed in 150 square yards in the areas of Konthamuru, Kolamuru and Katheru was sold at Rs. 45,00,000, but came down to Rs. 35,00,000 during the first two months of demonetisation. “We are just recovering. The business picked up again and now we are selling at the old rate of Rs. 45,00,000.”
Most real estate owners expected an upward revision of prices after demonetisation and invested huge amounts in land deals. “I invested by selling entire gold and also took huge loans at high rate of interest,” R. Subbarao said.
Apartment prices skyrocketing
According to Buddiga Srinivas of CREDAI (Confederation of Real Estate Developers’ Associations of India), non-availability of sand, rise in steel prices and labour cost had impacted the prices of apartments and individual houses in all important towns in East Godavari.
The prices of individual houses are skyrocketing in Rajamahendravaram and Kakinada as also other smaller towns as a result of steep increase in the construction cost.
Though there is a good demand for flats, independent houses are commanding a premium. A double bedroom flat costs Rs. 30 lakh to Rs. 35 lakh and a triple bedroom flat is upward of Rs. 45 lakh in prime areas.
On the other hand, a double bedroom independent house built in 120 sq.yards costs around Rs. 35 lakh, a house constructed in 170 sq.yards costs Rs. 45 lakh and a house constructed in 250 sq.yards costs Rs. 75 lakh.
In Kakinada, which was declared a smart city, and its surrounding areas, builders are doing good business as the city is expanding towards Pithapuram, where the petroleum corridor and some other industries are coming up.