Prime Minister Narendra Modi’s unexpected announcement of demonetization has devastated the common people state governments alike. But the biggest loser due to demonetization is Amaravati, the dream capital of Andhra Pradesh.
Until the currency ban, land rates in Amaravati were astronomical. In the capital city’s epicenter Tullur, 1 acre of land used to cost at least Rs.3 crores as against Rs.8 lakhs before Amaravati was made the state’s capital.
The situation is equally similar in Velagapudi, the prime hub of AP government, where Chandrababu’s dream buildings for Secretariat, Assembly, High Court and other administrative buildings were supposed to come up in the coming few years. Even Undavalli and other surrounding areas are in similar condition.
The severe cash crunch situation that is rattling the realtors and common people who cannot afford huge investments has resulted in the land rates in Tullur nose dive to Rs.60 lakhs. Even though the land rates are down by huge percent, no one is ready to buy the lands, literally leaving investors in tears.
Ample flow of cash is key to the flourishing of any real estate business and demonetization has badly hit this cash flow in Amaravati and as a result, private party investments have dried up completely, further resulting in issues like no new real estate ventures, lack of companies and prevailing unemployment.
On the other hand, realtors are also of opinion that the situation will not subdue in the coming few years. In this scenario, even the AP government will find it to going ahead with its plan to build the ambitious administrative buildings in the capital.