Price correction awaited in Seemandhra’s VGTM region after rise in property values
Real estate developers and investors have hiked the values of their property in the region between Vijayawada-Guntur-Tenali-Mangalagiri (VGTM), which is likely to be named the new capital of Seemandhra.
In the last three months, property values in the VGTM region have increased more than two times; thanks largely to the increasing demand for property in the region.
With the property values having been increased by realty payers and investors in the VGTM region so as to benefit monetarily from the increasing demand during the indecisive period till Seemandhra’s capital is officially announced, it is apparent that price correction will be required if the area has to witness growth in the coming years.
Noting that demand for property in the VGTM region has increased manifold after the results of the 2014 general elections, Alla Siva Reddy – President of CREDAI’s Guntur chapter – said that increase in demand is largely based on the expectation of development of the region in the near future.
Despite the fact that there is no clarity thus far on VGTM’s status as the Seemandhra capital, local real estate agent Suresh Gorentla said about the increasing property prices in the area: “The property values have surpassed Hyderabad’s premium localities. This is also creating a bubble in the market which is not at all good for the city’s real estate.”
Source – Times of India
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Prices are too high, what will happen in future we don’t know.