Poor response to VUDA auctions upset Vizag realtors

VISAKHAPATNAM: People aspiring to own a house in Port City do not seem to have made up their mind on their future investments.

If the response to the VUDA Row Houses at Rushikonda and the Haritha Housing Project Sunday is any indication, realtors in the city fear that the real estate sector would take at least six to eight months to get back on track.

The realtors emphasise the need for a major boost in the form of a concrete project from the state government so the Bay City could witness boom in the real estate sector.

The much-touted auction of VUDA Row Houses at Rushikonda and allotment of flats in Haritha Project Sunday turned out to be a huge disappointment for the authorities concerned.

The cash-strapped urban development authority has been making all-out efforts for selling these units for a long time. Of 710 units in Haritha Project, VUDA has sold a majority of the flats long ago and has been making efforts for the sale of the remaining 50 flats. On Sunday, 13 units of the project were allotted through draw of lots at a cost of Rs. 2,700 per sft.

'We are selling off the units on a marginal profit as the project has been delayed for a long time and needs to be completed immediately.

Considering the market prices in Madhurawada, the VUDA project has affordable prices and yet, consumers are not showing much interest,' said an official of VUDA.

Another VUDA project ' Row Housing at Rushikonda ' is also receiving poor response. Against 88 houses in the project, 52 units have remained unsold so far and despite the units being sold for throw away prices when compared to the market prices, not many are showing interest.

Among the three applicants who attended the Row Housing Auction, only one applicant bid for the D-5 unit for Rs. 82.55 lakh which is only Rs. 5,000 more than the upset price of Rs. 82.5 lakh.

Altogether, the VUDA earned `5.03 crore from allotments of Haritha units and Row Housing units Sunday. Interestingly, both the projects are closer to the Rushikonda IT Park, which is poised to see development in the coming months in the wake of the new government's plans to promote IT industry in Visakhapatnam.

'People have high expectations on the new government and are looking for concrete signs of development of the city, especially after bifurcation.

The lack of interest among consumers can be attributed to the absence of any major activity indicating growth in the city. The statements and speculations over the city turning into a major financial hub will bring little benefit unless the state government takes up a major project in the city that could stir the growth of real estate sector,' said MV Krishna Vamsi, a realtor in the city.

However, the realtors admit that there is definitely some activity in the market and many projects, which were moving at a snail's pace, have gained momentum.

'We are likely to witness major real estate activity by the year-end. However, a major boost from the government by promising some concrete action assuring economic growth or employment opportunities in the city would help a lot,' said the marketing manager of a major real estate firm.