With the prospect of relocating the capital to Visakhapatnam and the visible signs of economic vibrancy, the real estate sector in and around this bustling city, the largest industrial hub and cosmopolitan center of Andhra Pradesh, is poised for a significant upswing. Visakhapatnam, boasting an estimated $43.5 billion in economic contribution and playing a crucial role in forex generation, has evolved into a prominent industrial center. It is home to major industries such as 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 comprehensive facilities.
Moreover, the presence of the Visakhapatnam Special Economic Zone at Duvvada and IT Special Economic Zones at Madhurawada and Gambheeram has further accelerated the city's urban development. The convergence of these factors sets the stage for a promising real estate boom in the near future.
Reasons for the Anticipated Growth:
NITI Aayog CEO BVR Subramaniam's recent announcement to develop Visakhapatnam as a growth hub, alongside Mumbai, Varanasi, and Surat, has injected new energy into the real estate market.
The speculation surrounding the relocation of the Chief Minister's residence from Tadepalli in Amaravati to Rushikonda in Visakhapatnam has added fuel to the anticipation that the city might soon become the administrative epicenter. This perspective change may prompt the movement of offices and essential personnel, resulting in an increased demand for roomy houses and apartments available for lease in regions such as Yendada, Visalakshinagar, and MVP Colony. Colony, and others.
Impact on Visakhapatnam’s Real Estate Market:
As per reports provided to Bizz Buzz, there is a notable upswing in the demand for housing in Madhurawada and the industrial enclave of Gajuwaka-Kurmannapalem, known for its abundant land parcels.
Factors such as excellent road connectivity and a significant increase in land and apartment costs in the city's central areas are driving growth towards the outskirts and suburbs. The development of pharma units and educational institutions along the Visakhapatnam-Srikakulam/Vizianagaram highway is another catalyst for this trend.
Numerous infrastructure initiatives, such as the Beach Corridor, a six-lane roadway linking Visakhapatnam to Bhogapuram International Airport, the development of an eco-friendly port in Srikakulam's Mulapeta, the establishment of Adani Data Centre and Technology Business Park in Kapuluppada, and the Visakhapatnam Chennai Industrial Corridor (VCIC), are poised to augment the housing demand even further. The GMR Group's investment in making the airport operational, with plans for an industrial zone and an aero city, adds to the city's growth potential.
The ongoing development of the East Connect Economic Corridor, the Metro Rail Project, and the relocation of the Bulk Drug Project from Kakinada to Nakkapalli are also contributing factors.
Conclusion:
Real estate developers like MVV Builders are meeting the increasing demand by introducing gated communities and villa projects. The first FDI real estate project, Celeste, and ventures by Fame Realty, MK Builders, and Augmented Reality of Vilaasam indicate a growing interest in modern housing projects on the city outskirts. The outskirts have become sought-after locations for first-time homebuyers, offering flats from branded builders with varying price ranges depending on amenities and builder reputation.
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