REAL ESTATE PRICE SURGE IN VIJAYAWADA SLUMP IN HYDERABAD

Property prices in Vijayawada have increased nearly 20 % since the
agitation for a separate Telengana began, while Hyderabad has seen a fall in demand for realties.Many builders are showing a keen interest on "construction activity" in Vijayawada, expecting that it would become the capital of Andhra Pradesh if Telengana is carved out, said Giridhara Prasad Gupta, a real estate businessman. And this has led to prices of apartments and plots zooming upward in ayawada.Ramavarapadu and Gannavaram in the city are now the most sought after areas as the L&T IT Park construction is going on there. In comparison,
in Hyderabad, the property registration activity has come down by 10 per cent, according to a senior official.C. Sekhar Reddy, president, Andhra Pradesh Builders Forum, said real estate transactions in Hyderabad have come down recently. However, he said, this could not be attributed totally to the Telangana issue. "There has been a slump in the sector for the past one
year," Reddy said. He said on an average as many as 15,000 apartments were sold in Hyderabad from 2004 to 2007. The figure has come down to 10,000 in 2008.Reddy said the builders were hopeful of recovering from the signs of global recession and see good growth this year. "Hyderabad has become global destination for investments. Telangana will not be an issue for investments. This is only a temporary issue," The builders Forum president said.