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Credai national president, C Shekar Reddy, said there was no dip in real estate prices in the city following the ruling Congress party's decision to bifurcate the state. “In fact, everybody is looking towards investing here. The outlook is bright,” he said, adding the entire real estate inventory in the city was exhausted in the last two years.
State president of Credai, S Ram Reddy, said in the last six months real estate had become a sellers market in the city. Yet, he said, the prices were at “rock-bottom”. The builders were realising an average price of Rs 2,500 per square feet (sft) of built-up area while Rs 3,000 per sft would a “reasonable return on investment.”
But why is the price realisation low when there is no dip in demand? The Credai office bearers explained that the price had touched “rock-bottom” two years ago on account of global recession, excess supply and local issue (a prolonged agitation for a separate statehood to the Telangana region).
“So, the prices will not fall further. Instead, we envisage a 20-25 per cent rise in prices in the next six months,” Ram Reddy said.
Credai Andhra Pradesh elected new office bearers on Thursday. The new body said it would focus on development of new property hubs in the state besides contributing to skill development. It would also make efforts to increase the number of Credai chapters in the state from the existing 18 to 30 during its two-year term.
