Reasons Why Flats In Vijayawada Is Facing Slowdown

Although Vijayawada is an upcoming city in real estate India which is growing at a rapid rate there is not much demand for the properties of the city. Residential properties in Vijayawada like apartments in Labbipet are looking at a slowdown and some of the main reasons for lack of realty demand are:

• Real estate rates in Vijayawada: The rates of flats in Vijayawada are sky-rocketing. Infact the city real estate rates are much higher than realty rates of Hyderabad. Even the posh areas of Hyderabad are cheaper than Vijayawada areas. This is causing the real estate investors to stay away and invest in other attractive cities like Hyderabad. The rates of properties of the city flats in Labbipet have risen dramatically in the last few months forcing people to revaluate their decision to invest in a property here. If property rates of the city do not see a downward trend soon then the realty sector of the city may face stagnancy. Even flats on rent will see stagnation of rental rates.

 

• Oversupply of flats in Vijayawada: Since the realty rates in the city are very high most of the end-users are not able to buy a flat in Vijayawada. This has caused piling of inventory and over-supply of flats in Vijayawada. Even the resale residential properties of Vijayawada and the flats on rent are not witnessing any activity.

 

• Lack of Buyer and builder trust: Delay in delivering residential properties of Vijayawada has led to lack of builder's accountability. There is a lack of buyer and builder trust this has affected the consumer trust in the real estate market. People are now not willing to buy flats in Vijayawada like apartments in Labbipet in under-construction projects.

 

• Lack of proper infrastructure in developing areas: Although the rates of residential properties of Vijayawada are high but lack of proper infrastructure prevent people from investing in apartments in Labbipet. Poor connectivity, delay in infra projects, transport problems prevents people from buying flats in Labbipet.

 

• Artificial Inflation: Most of the end-users are not buying a flat in Vijayawada as they feel that some stakeholders have artificially inflated the rates of properties of the city. The rates of flats in Vijayawada have been artificially inflated which have resulted in a slowdown. Several developers are ready to offer deals on their properties but they are not willing to lower rates. Price Deadlock: Inflated prices have resulted in a price deadlock where both buyers and sellers are unwilling to negotiate. This is a common situation in real estate India.

Source : articlesbase.com