Visakhapatnam: Real estate sector in deep trouble

Representative image.

VISAKHAPATNAM: Non availability of sand has pushed the real estate sector in deep trouble as the builders are not in a position to meet the needs of the sand required for the construction activity. The government’s new sand policy has not been supportive to the builders as the lengthy process of allotment of sand has become a burden to them. Now, the builders are pushing the burden on the buyers.
The Visakhapatnam builders need around five to six lakh tonnes of sand for the construction activity. Since the government sand is not available in time, they are depending on the sand from Odisha or the private suppliers in North Andhra.
“For each tonne, we are spending Rs. 1200 to Rs. 1500. We have sold out the flats before corona spread, but the enhanced prices of sand and cement are now forcing us to request the buyers to pay more. We are helpless," one of the builders in Vizag K Srinivasa Rao told TOI.
The 24 lakh populated Vizag city is witnessing a rapid growth for the past six years and the construction activity has picked up movement after bifurcation of the state.
Teh Vizag city has more than 1200 builders. Of which active builders with ventures are around 200. Every year, the Vizag city is witnessing the construction activity of around 400 apartments or group houses or gated communities. There are around 40 big builders constructing more than 40 flat ventures,sources said.
"I paid advance money for a double bedroom flat in Madhurawada area. Now the builder is saying that prices increased and enhanced the square feet prices. Now i have to pay around Rs. 3 lakh to Rs. 5 lakh more for the flat," a private company employee Y Madhusudhan said.
Confederation of Real Estate Developers Association of India (CREDAI) chairman Peela Koteswara Rao told TOI that each project needs 800 to 100 tonnes of sand. “We urge the chief minister YS Jaganmohhan Reddy to focus on the issue. He is trying to save the construction sector by bringing the new sand policy which is giving space for Rs. 375 a tonne. But the implementation is not in a proper way,’ he said.
For each lorry, the builders are paying extra three thousand to five thousand transportation prices to bring sand from Rajahmundry, sources said. With non availability of sand and also covid conditions, the construction activity has come down. Even the builders are not getting labourers as many of them had gone to their villages, sources said.
The Joint Collector of the district M Venugopal Reddy is trying to resolve problems. “They are not applying in a realistic manner. One has applied for one lakh tonnes and another two lakh tones. We are trying to control the black market. Now we have stock 0f 1.80 lakh tonnes of sand. we have supplied 1.80 lakh tonnes from June to July. We brought june 27 to this month 27 around 1.87 lakh tonnes from Srikakulam. We will convey a meeting with the builders and resolve any problem,” the Joint Collector said.

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