Visakhapatnam: Despite the possibility of Chief Minister YS Jagan Mohan Reddy working from the port city around Dasara, real estate developers in Visakhapatnam appear to lack confidence in the market.

This skepticism is evident in the lukewarm response received by the Visakhapatnam Metropolitan Region Development Authority (VMRDA) during its recent land auctions.

VMRDA had planned to auction 14 bulk land parcels on September 29 and 30 in an effort to generate funds by selling 87.8 acres of land in the upscale Madhurawada area.

However, the auction failed to garner significant interest, leaving VMRDA officials surprised. This is despite the fact that the auction offered land at a relatively lower price of ₹30,000 per square yard.

Interestingly, in the past, small plots in the Madhurawada area had been sold for nearly ₹1 lakh per square yard in VMRDA auctions. However, the past year has seen a different trend, with the urban development body facing difficulties in selling land in various parts of Visakhapatnam district.

For example, in August 2022, VMRDA announced the sale of 10 bulk land parcels covering about 24 acres, but it received a tepid response from buyers. In an attempt to attract interest, VMRDA offered a 10 percent price reduction for the same land parcels in 2023.

In the 2022 notification, the upset price per square yard for Madhurawada was set at ₹40,000, which was lowered to ₹36,000 for the proposed sale in 2023. However, even the reduced prices failed to excite bidders.

In the midst of this, VMRDA has continued to conduct auctions for vacant plots and small land parcels identified in layouts developed over the past five decades. While some plots have attracted premium bids, at times nearly double the upset prices, others have received a lukewarm response.

A real estate developer from Madhurawada offered insights into the situation, stating that several prospective buyers are awaiting the formal shift of the state's capital to Vizag. Additionally, some are hesitant to participate in auctions as they must demonstrate that all funds used in government transactions are legitimate.

Furthermore, with elections approaching in six months, some are waiting for the outcome, hoping it will resolve capital-related uncertainties. The real estate market in Vizag is also still recovering from the impact of the Covid-19 pandemic, and concerns about price appreciation are discouraging potential bidders.

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