Vijayawada: After a prolonged slump in demand, the state’s realty sector is finally seeing some green shoots. The realty sector, which has perhaps the worst-hit in the economic disruption caused by the pandemic, was already suffering even before the Covid-19 outbreak in Vijayawada and Guntur owing to uncertainty over the capital issue. However, once lockdown norms were eased, builders have seen an uptick in the number of inquiries.
Builders say that there has been a change in perception among people after Covid-19 and more people have taken the decision to buy homes at this time. Even those who were planning to buy a house after two years have changed their priorities and decided to take the plunge, claim builders.
Tummala Vamshi Krishna, general secretary of Builders Association of India (BAI) Vijayawada chapter, said, “With increase in demand, transactions are gradually picking up momentum.” He observed that while transactions have not reached the pre-pandemic levels yet, there has certainly been an increase in demand. However, the conversion of inquiries to sales is still a problem as people are bargaining hard for cheaper rates, he added.
Vamsi Krishna further said that the problem in Vijayawada, Guntur and Amaravati is that the prices were corrected even before the pandemic. “We are not in a position to further reduce prices as we are already at the bottom. Many people are comparing prices of constructed houses with land prices which have shot down of late. This calculation may be applicable for new projects but cannot be applied to already constructed houses. The mismatch between people’s expectations and builders’ offers is a major hurdle now,” he added.
V Ramesh, a builder, said that he has been receiving many inquiries but there is a gap of 10-15% in the builder’s price and people’s expectations. This is understandable as savings of all sections of people have taken a hit due to the pandemic, but builders also have their own problems, he said.
Cheap interest rates are also contributing to the increase in demand for houses as many banks and financial institutions are offering housing loans at very low rates. Vamsi Krishna said that the fear of missing out is driving homebuyers as the currently low prices and cheap interest rates may not be available in future.