Demand for shops at Karkhana, Alwal dips
New tenants push for lower rents by as much as 30%
TS HAD announced plans for constructing a 11.5-km skyway from Jubilee Bus Station to Hakimpet, for which it proposed widening the road to 200 feet.
Commercial spaces on the main road from Karkhana to Alwal, that were much sought after in the Cantonment, are now not much in demand after the contours of the Strategic Road Development Plan (SRDP) were released.
Several tenants have served three months notice to the owners stating that they will be moving out to another location.
Since the road is to be widened and their properties acquired, owners are finding it difficult to find new tenants. Taking advantage of this, new tenants are demanding lower rents — by as much as 30 per cent.
It may be recalled that the TS government had announced plans for constructing a 11.5-km skyway from Jubilee Bus Station to Hakimpet, for which it proposed widening the road to 200 feet, posing risk to many constructions on the main road.
Following the government’s request, the defence ministry allotted a chunk of its land along this route and accordingly teams from both wings undertook a joint survey and marked the extent of the area to be acquired for widening the road. This has put commercial spaces along the road in jeopardy, lowering rents and finding it difficult to get any tenants at all.
A commercial space in Karkhana that housed a reputed bakery with several branches in posh areas of the city, is lying unoccupied after the franchise owner moved out. A few weeks ago, another trader came forward to establish his shop and even gave an advance before withdrawing at the last moment after learning about the government’s road-widening plans.
A family in New Vasavinagar that got a monthly rent of `1 lakh for their building on the main road had no financial worries until now. If their decades old property is taken for road widening, they will be left without this income.
A textile shop that used to pay `1.3 lakh per month as rent near Juluri Vajramma building moved out a few months ago. After waiting for new tenants for some time, the owner rented the space to a toy store for a monthly rent of `80,000.
Mr M. Sushil, 66, says his family’s financial expenses were met with the rent he received from his property in Karkhana. His two-storey commercial space is lying vacant for more than six months. He has appealed to the state to find a way to help senior citizens like him.