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Realty sector set to get big push with buzz on relocation of capital

NITI Aayog’s recent announcement to develop Visakhapatnam as a growth hub in the first phase has come as a shot in the arm for the real estate market

Realty sector set to get big push with buzz on relocation of capital

Infra Boost in Vizag

• GMR Group is investing Rs 5,000 cr in Bhogapuram airport

• To develop an industrial zone and an aero city near airport

• 6-lane road Vizag-Bhogapuram airport under initial stage

• Green port at Mulapeta in Srikakulam district at Rs 4,362 cr

• Adani Data Centre & Tech Business Park at Rs 21,844 cr

• Metro Rail Project is in pipeline at a cost of Rs 14,309 cr

• Bulk Drug Project with an investment of Rs 1,400 cr

Visakhapatnam: The buzz on shifting capital to Visakhapatnam and economy showing signs of buoyancy, the realty sector in and around Visakhapatnam, the largest industrial hub and cosmopolitan city of Andhra Pradesh is expected to witness a realty boom in the near future.

Visakhapatnam accounts for an estimated $43.5 billion and contributes a lot of forex due to its emergence as an industrial hub. The city is home to major industries like Visakhapatnam Steel Plant, Hindustan Shipyard, HPCL Visakh Refinery, NTPC Super Thermal Power Plant and Jawaharlal Nehru Pharma City (JNPC), the largest cluster of pharma units with all facilities under one roof. Visakhapatnam Special Economic Zone at Duvvada and IT Special Economic Zones at Madhurawada and Gambheeram have also propelled rapid growth of the city's urban landscape.

Moreover, the recent announcement of NITI Aayog CEO BVR Subramaniam to develop Visakhapatnam as a growth hub in the first phase along with Mumbai, Varanasi and Surat has come as a shot in the arm for the real estate market. The buzz on shifting of Chief Minister's home from Tadepalli in Amaravati area to Rushikonda in Visakhapatnam has fueled speculation that the city will soon become the seat of administration in a month or so. This may lead to shifting of several offices and key functionaries and generate a demand for spacious houses/ apartments on lease to provide them accommodation in Yendada, Visalakshinagar, MVP Colony and other areas.

"We had faced a rough weather after getting hit by the prolonged spell of Covid-19 and the economic slowdown. The speed in realty transactions was lacking though the demand for enquiries to own houses and invest in plots was always there from NRIs. Now we are confident that sector will see positive growth if not boom time as there is sudden spurt in demand to invest in realty sector," said Boyana Srinivasa Rao, General Secretary, CREDAI-AP.

He told Bizz Buzz that the demand for housing is picking towards Madhurawada and industrial hub of Gajuwaka-Kurmannapalem where availability of large parcels of land is. "Good road connectivity and abnormal increase in land and apartment costs in the core areas of the city have also led to growth towards outskirts and suburbs. Another reason is development of pharma units and educational institutions towards Visakhapatnam-Srikakulam/Vizianagaram highway.

Several infrastructure projects like the Beach Corridor, six-lane road connecting Visakhapatnam to Bhogapuram International Airport, now under initial stage of development by the GMR Group, construction of a green port at Mulapeta in Srikakulam district at a cost of Rs 4,362 crore, establishment of Adani Data Centre and Technology Business Park at Kapulauppada at a cost of Rs 21,844 crore are also expected to further shoot up the demand for housing.

GMR Group, which has plans to make the airport operational in 36 months, is investing Rs 5,000 crore in the first phase. It has plans to develop an industrial zone and an aero city near the airport. The Visakhapatnam Chennai Industrial Corridor (VCIC) is under implementation. The East Connect Economic Corridor is expected to reduce the travel time from Raipur of Chattisgarh to Sabbavaram in the city with an expressway.

The Metro Rail Project is also in the pipeline at an estimated cost of Rs 14,309 crore. The Bulk Drug Project conceived with an investment of Rs 1,400 crore on infrastructure creation is being relocated from Kakinada to Nakkapalli, about 70 km from here.

"All these projects will certainly raise the demand for housing manifold in the near future," Padi Srinivasa Kumar, a realty developer said. The city is already seeing an encouraging response for gated communities and villas. MVV Builders, one of the leading builders in the city, has taken up a huge gated community in Siripuram area in hybrid model to provide flats as well as commercial space. Villa projects are coming on the city outskirts as availability of huge extent of lands has become a Herculean task.

First FDI real estate project Celest has already received a good response in Gajuwaka area. Fame Realty, MK Builders and Augmented Realty of Vilaasam, have already grounded work on ultra modern villa projects on the city outskirts.

At present, the outskirts have emerged as most-sought after places for buying a flat by first-time home owners. One can buy a flat by a branded builder at Madhurawada, which has good connectivity and known for green-capped hillocks and green cover, for Rs 4,500-5,000 per sq ft. In Gajuwaka area, same type of properties with good ventilation, parking and CCTV surveillance and generator backup in standalone apartments are up for grabs from Rs 4,000 onwards per sq ft. Anandapuram and Thagarapuvalasa, which are close to the international airport coming up at Bhogapuram, have ventures which offer per sq ft charge from Rs 3,000 onwards depending on amenities and reputation of the builder.

Santosh Patnaik
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