Real estate industry is a funny industry !! It thrives as much on facts as much it does on fiction. There are two aspects to the industry.
- One is on-demand housing. Everyone needs a roof on their head. In this case people buy houses to stay and live. This kind of demand comes into play when there is a surge in actual demand for housing in any area for different reasons, the most important being creation of jobs in an area. Amaravati and its surroundings may witness on-demand housing in the next few months and years.
- The other is investment buying bordering on speculation. This is just done to take advantage of future demand.
Investment buying per se is not bad. But when it is done without the knowledge of ground realities, it becomes something like gambling. Make no mistakes, Andhrites are prone to this kind of gambling -sort of property purchases. There is a huge mob mentality in we Andhrites.
Take the case of Amaravati. everyone knows that there is going to be a 220 kms Ring Road around it. Naturally, there is huge demand for lands around this ring road. But what one needs to undertstand is that the alignment for the ring road is not final. The LIST OF VILLAGES ( see our earlier report) the ring road is expected to pass through is not final.
So if someone is selling lands to you, or layout sites to you based on this ring road funda, please wait. It may change in future. Don’t forget, many people bought lands near Nuziveedu at the time of bifurcation, thinking the new capital will come up there. Land prices rose sharply there only to fall even more sharply after Amaravati was declared.