This bachelor's degree holder in mechanical engineering has been associated with the Port City's realty sector for the last 20 years. Earlier president of the Vizag chapter of Confederation of Real Estate Developers' Association of India (Credai), B Raja Srinivas, is now the realty body's chairman and has been recently re-elected chairman for the second consecutive term (2014-15) as well. In a chat with Manish of TOI, the Credai Vizag chapter chairman and realty firm Lakshmi Associates managing director digs deep into the prospects of realty in the city, against the backdrop of bifurcation.

What makes Vizag an attractive realty investment destination?

It has a cosmopolitan culture, the best law and order situation in the entire state and is a rapidly growing industrial city. These three are the principal reasons apart from natural advantages such as a sea port, international airport and the golden quadrilateral passing through. It offers further potential once the Vizag-Kakinada corridor develops due to projects like the PCPIR.

Any impact on realty after the T-Bill was approved by the President?

Though there has not been any major spurt in prices, the number of genuine investors queuing up to buy property has definitely shot up by 20-25%. Though there is some interest in bulk procurement of land after the bifurcation announcement, it is not as high as the interest being shown by common investors. People are still looking for a stable government and what kind of importance would be given to Vizag. While Vizag might not become the political capital of Seemandhra, in all probability, it will be the new state's industrial, financial, tourism and IT capital, which augurs well for realty

What are the areas in and around Vizag that offer good potential in the coming days?

It is mostly suburban areas in Vizag. Apart from the core city area, we foresee investment opportunities in areas like Madhurawada, especially for those people with business interests in the city. All those related to the industrial segment and employees would prefer areas like Gajuwaka, Kurmannapalem, Parawada and Atchuthapuram.

Do you expect a flood of NRI investments in Seemandhra due to bifurcation?

Most of the NRIs from AP are from the Seemandhra region and will no longer prefer Hyderabad, which was till now the preferred choice of NRIs, as they have their roots in the coastal districts. Though a majority of NRIs will prefer to buy in and around the location of the new capital, they would still look at Vizag favourably because it has always been preferred as it is considered a safe option thanks to the inherent advantages that it offers. Either way the city is going to grow.

What kind of infrastructure do we need to put Vizag at par with metro cities?

Many areas of the city like Madhurawada, Gajuwaka, Kurmannapalem, Gopalapatnam among others still do not have proper internal roads or drainage facilities. Safe drinking water too is a major issue. Apart from this, to emerge as an international destination, we need a mass transport system. Take Chennai or Mumbai for example, transport is affordable to any common person and we need that kind of cost-effective and safe transportation system. The city is going to grow along the national highway as on either side, you have hills and sea. So you have a long stretch from Anandapuram to Anakapalle side and the NH-16 has become more of an internal city road and we are seeing congestion in some places already. Along this stretch, we need a mass transit system like a metro or a mono-rail. The government needs to look into this immediately. If transportation is available, then people won't mind the distance and you can have independent growth centres in and around the city.

While Hyderabad was driven by IT, what will be the push factors for Vizag?

It will be a combination of both manufacturing and IT industry that will take Vizag ahead. We already have the best human resources and also a good availability of English speaking manpower. Growth in IT will definitely be seen here.

What are the new trends in the realty sector?

Until now Vizag used to residential realty with an average of around 20 flats but there is no more land availability in the core areas. Hence, the city is growing towards new areas, where vaster chunks of land are available. This is giving rise to community living and gated communities. Builders are slowly getting into such projects.

Do you anticipate an increase in realty prices?

As of now nothing major has happened. There has neither been a sudden burst of investment nor a sudden increase in prices during the last one month. But there is a lot of interest being generated. Many enquiries are coming and people are on the lookout.

What measures is Credai taking for the benefit of buyers and realtors?

We have all our members sign a code of conduct agreeing to deliver a good product on time with clear title deeds and without deviations. We also have a consumer redressal forum for resolving issues between purchasers and builders. We try to understand the problem and resolve the issue at our level to avoid legal complications. Apart from that, we take up activities to keep members updated about current rules and regulations as well as programmes to upgrade skills of workers, supervisor training and skill development programmes. We also have a tie-up with the National Academy of Construction to improve the skills of all technical workers involved in plumbing and carpentry.

How does Credai maintain quality of construction?

Our members can use our logo and publicise their project. By doing so, the member is obligated to live up to these standards. All the premium builders in Credai follow very high standards.

What are the key issues being faced by builders?

With the division of the state, we need certain benefits such as relaxation in stamp duty and building licence fee as well as sales tax exemptions to encourage new investments in Seemandhra. In case of affordable housing, the government can establish a benchmark and provide benefits, which will definitely help boost investments. Also, the government needs to look at waiver of income tax and take a decision on the contentious issue of service tax, which is a big burden on the industry.

 

Source and courtsey by:- http://timesofindia.indiatimes.com/City/Visakhapatnam/Split-augurs-well-for-realty/articleshow/32569105.cms