Andhra Pradesh: Real estate sector flounders as NRI investments drop by 50%
Despite the announcement that Vizag is to become the executive capital, NRIs investments have declined.
By Newsmeter Network Published on 1 Dec 2022 3:43 AM GMT
Vijayawada: Non-resident Indian (NRI) investment in the real-estate sector has dropped by over 50 percent in Andhra Pradesh.
Earlier, NRIs had boosted the real-estate sector in Vizag, Vijayawada, Guntur, Tirupati, and a few major towns in the state by making huge investments in homes, lands, and other infrastructure projects.
People from parts of the state have migrated abroad, particularly the USA in search of opportunities. The NRIs had invested in properties such as homes, commercial establishments, and lands in cities and they had tasted sweet returns after selling some properties.
B Raja Srinivas, CREDAI, Andhra Pradesh chapter, said that good real estate ventures used to attract NRI investments in the range of 30 to 40 percent around four years back.
"But now the NRIs investments hardly exceed 15 percent. A larger number of NRIs had invested in properties in various cities citing that they will return to India after some years and expecting huge returns for the investments. Now, most of the people who have gone to the USA and other countries are not investing in their home country," he added.
KSRK Raju, President of CREDAI, Vizag chapter, said earlier they used to get six out of 10 queries from NRIs about ventures. "Now, we hardly get queries from NRIs to invest in our ventures. No doubt that NRIs have boosted the demand in the real-estate sector and they have acted as market triggers. But now they are turning away from the state and pulling down the demand due to various reasons. Some NRIs felt insecure about their investments," he said
Despite the announcement that Vizag is to become the executive capital, NRIs investments have declined. "We are expecting that the NRIs may invest in the coming years if the infrastructure improves in the cities and once uncertainty over the capital is cleared," realtors added.
The value of the properties in which the NRIs have already invested has come down due to various reasons. Some NRIs are investing in Hyderabad and Bengaluru," realtors said.
