Vijayawada: Surge in Seekers for Rental & Sale Property post Q1 2014 With Vijayawada being declared the new capital of Andhra Pradesh, the residential market in the city is set to undergo a sea-change in future. However, even prior to this there were positive feelers regarding the prospects of the realty market in the city. This was due to speculations being rife regarding Vijayawada getting the nod following the bifurcation of the State in June. This fact was reinforced by the proportion of seekers for rental and sale property through CommonFloor, especially after Q2 2014.
Figure 1: Per cent change (Q1 2014 to Q3 2014) compared to Q4 2013 for Seekers in Vijayawada Source: CommonFloor.com Figure 1 shows the change in the proportion of seekers for residential and rental property in Vijayawada compared to Q4 2013. The proportion of Seekers in Q4 2013 is taken as the ‘base’. After that the proportion of seekers in the later quarters is analysed in relation to the ‘base’ values. Analysis of trend Based on the comparative analysis of the number of seekers for rental and sale property in Vijayawada, it can be seen that there is an increase in the number of seekers for sale and rental property, post Q1 2014 (as seen in Figure 1). While the increase was gradual for sale property from Q1 2014 to Q3 2014, it was particularly teep for rental seekers, post Q2 2014. With speculations circulating from the beginning of 2014 regarding Vijayawada being declared the new capital, interest was evinced from investors interested in buying residential property in the
city. This explains the steady increase in the number of seekers of sale property from Q1 2014. However, the surge in demand for rental property in Vijayawada started in Q2 2014 following the actual bifurcation of the State. Expecting rental prices to surge post the capital declaration, the number of seekers exponentially increased thereafter.
Figure 2: Share of property Seekers for Rental and Sale property in Vijayawada Source: CommonFloor.com Figure 2 shows the proportion of seekers for Rental and Sale property in Vijayawada between Q4 2013 and Q3 2014. The proportion of seekers for Rental property after a dip between Q4 2013 and Q2 2014 saw a tremendous increase in Q3 2014. Simultaneously, the number of seekers for sale property after gradually increasing between Q4 2013 and Q2 2014, dipped slightly in the succeeding quarter. Analysis of trend Analysing this trend, we can arrive at some substantial conclusions. The increase in the number of seekers for residential property in Q1 and Q2 2014 can be attributed to more buyers evincing interest in investing in residential property in the city. This is in anticipation of Vijayawada being declared the capital of the State. However, the fall in the number of seekers in Q3 2014 can be attributed to the surge in sale prices following the bifurcation of the State and Hyderabad being the front-runner for being the new capital. The increase in the number of rental seekers in Q3 2014 can be attributed to larger number of people seeking rental property across the city in anticipation of rental prices increasing following the capital decision. Source: CommonFloor.com For Latest Updates on Real Estate Updates, Property News and Cities Infrastructure Developments Visit: http://www.commonfloor.com/guide
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