The sudden growth in real estate in and around Amaravati has come as a boon to financial institutions that offer home loans. All the (commercial and private) banks have increased their allocations for home loans sector by a huge 132 percent.
According to the AP government, the banks which had advanced Rs 5,163 crore last year (2015-16) have increased their outlay to Rs 12,000 crore this year.
Chief minister N Chandrababu Naidu’s office has attributed the unbelievable increase to the increasing residential activity in Amaravati surroundings. According to an estimate, over 10,000 housing units (flats in apartments and group houses apart from individual houses) are getting ready, while the actual construction activity in Amaravati (the core capital area) is yet to begin.
The construction activity has spread up to Vinukonda in Guntur (about 30km from Amaravati) and Nallapadu (20km from Amaravati) in Guntur district and towards Gannavaram airport (upto 14 – 15 km from Vijayawada bus station). However, big players in the real estate market are still hesitating to go to Vijayawada surroundings as the land rates are very high. Rents have also have gone up abnormally in Vijayawada.
Credits Bangalore Mirror