Andhra Pradesh real estate growth continue to rise
Andhra Pradesh, the “Rice Bowl of India”, is a state in southern India. The state is bordered by Maharashtra, Chhattisgarh and Orissa in the north, the Bay of Bengal in the East, Tamil Nadu to the south and Karnataka to the west. Andhra Pradesh is the 4th largest state in India by area and population. It is the largest and most populous state in Southern India.
Hyderabad: Like many other Indian cities, Hyderabad has witnessed a remarkable growth of the real estate industry. As like other IT cities (Chennai, Pune, Gurgaon, and Mumbai), here also, the city is forced to improve their infrastructure, residential, commercial and mall segments. Better quality of life, Industry friendly government, low crime rate, quick availability of connectivity, shorter commuting distance within the city as compared to other metros has attracted investors and common man alike. With the development of a township with sate -of the-art facilities called HITECH City in Hyderabad, the place has emerged as one of the places for property investments. With more and more IT companies are setting up, the city had bagged a dream project – Fabcity. To create a model city, the state government has taken number of steps. The government has already initiated the project involving an investment of Rs 27,000 crore for development of metro rail, flyovers, roads, and drainage system. Common haunting problems of every metropolitan city are traffic and pollution. To tackle with this problems, the state government is implementing the MRTS, which will have cost around Rs 8760 crore. The rates have not only been increased in and around HITECH city but other areas like Begumpet, Malkajgiri and certain areas in Secunderabad , which shows the over all development of the city. The expansion of the city has not been restricted to western suburbs like HITEC City, Madhapur, and Gachbowli, area the upcoming international airport, Fabcity, Hardware Park and those on Warangal and Vijayawada highways are also turning into hotspots. In Gachowli, around 80 per cent land has been dedicated to international banks, financial institutes, and mutual funds to set up their operations. Gatkesar is another hotspot for middle-class buyers. Prices are still affordable and are likely to shoot up given the road expansion work going on as part of the Prime Minister’s Golden Quadrangular Road Project. The road has been developed till Singapore City. Assured of green space given the reserved forest area between Medipally and Nampally, the stretch is turning out to be preferred destination for employees. But here too, IT industry is a main reason to hike in the rates. A Gartner report predicts that by 2010, Hyderabad and Chennai will replace Bangalore and Mumbai as the favored Indian destinations for IT outsourcing. The study has evaluated and categorized on various factors such as infrastructure, skill availability, skill retention, access, cost of living, political support and quality of life. A recent survey report from Jones Lang LaSalle says six million sq ft of Grade A office has been occupied by IT/ ITES sector alone. The demand has been estimated at 30 million sq ft by the 2010 if the current trend in absorption level is any indication.
Visakhapatnam: For every kind real estate investor, Visakhapatnam is a better option than Hyderabad. Cheaper land cost, cheaper skilled manpower, improving infrastructure and considerable demand are the few best futures of Visakhapatnam. The city’s real estate market has lesser competition and lesser project costs which lead to increase margin. The upcoming commercial and retail destinations in the city are Dwarakanagar, Seethamadhara, Gajuwaka, Rushikonda, Anakapalli, Bheemili and Paarwada. For residential investment, the best areas now are Madhurawada, Pendurthy, Parawada, Bheemunipatnam and the areas towards the Anakapalli Corridor. The allotment of the land by the state government to industries, software companies and development of special economic zone (SEZ) has added more fuel in the city’s property market. Still the rates of the property are cheaper than Hyderabad. Beside the city is a tourism centre of the state, it is also a hub of steel and other industries. Along with steel, pharmaceuticals, chemicals, and marine industry and the upcoming software and knowledge based industries are giving it a modern outlook. Recent development in industrial sectors and a mammoth investment of NRIs in the city, the property rates in certain localities have been soared as high as 75%. Even some of the areas in the city have witnessed a two fold rise in property prices in a single year. The city offers all types of residential property with all types of budgets.
Secunderabad: The city famous as the twin city of Hyderabad. With overcrowding of Hyderabad city, the real estate developers now have concentrated on Secunderabad. The city is being developed on similar line with massive real estate projects in residential and commercial segment. The developers are constructing residential apartments high raises with flats and group housing system, independent villas and luxury bungalows. The price of residential property has been doubled in the last few years. The major residential development can be seen Cantonment area to the civilian housing space like its twin. The residential property demand has boosted commercial activity. The Cantonment area has been acquired by many malls and multiplexes. The lifestyle of the city is highly influenced by Hyderabad. The city is now emerging as the next IT destination after Hyderabad.
VIJAYAWADA: Ambapuram, the village where only coriander used to be cultivated until a couple of decades ago, is now a favourite destination for many real estate agents and, of course, the Vijayawada Guntur Tenali Mangalagiri – Urban Development Authority (VGTM-UDA).
During the 80s, land in Ambapuram never commanded a price more than Rs. 40,000 an acre. But, it now hovers around Rs. 2 crore an acre adjacent to 100-ft road and anywhere between Rs. 50 lakhs and Rs.70 lakhs an acre on Janmabhoomi road. Land prices in the village have skyrocketed in the near past for various reasons, including the fact that Ambapuram is very close to Ajit Singh Nagar which is in the limits of the Vijayawada Municipal Corporation and to Nainavaram where a flyover is fast coming up.
Thanks to Gollapudi Lift, the farmers of the village are able to cultivate two crops of paddy a year. But, all this has not been able to keep the farmers in a cheerful mood, ever since the UDA has come out with its proposal to acquire nearly 360 acres of land for developing a township.
Tirupati: Tirupati is another noteworthy city in Andhra Pradesh along with IT hub Hyderabad and India’s biggest port city Visakhapatnam. Its tourist potential has added more value in real estate market of the city. In both segment, residential and commercial properties, the demand has been increasing. Due to a tourism place, commercial property is attracted more attention of investors. Development of Tirupati property market is a major concern for the Tirupati Urban Development Authority. Major infrastructure projects are being planned along with development of all civic amenities to being the city at par with its other two counterparts – Hyderabad and Visakhapatnam. The city’s properties are being developed at an unpredicted pace to meet the demand of IT and BPO sector flourishing in the state. Leading developer from across the country are eyeing on the Tirupati’s land to develop their property demand.
Guntur: Guntur is a city of South Eastern state of Andhra Pradesh. It is also know for an education centre of the state, many reputed educational institutes are located in the city. Due to an education hub and pollution free environment the city is on high demand. In cooperation with ITC, Social Forestry Guntur have started Green Guntur project and one crore threes have already been planted as a part of the deal. The city has managed to save 35 per cent of the forest area. The industrial development is of medium scale. Bio Tech park and IT Park are the future development plans of Guntur. Guntur is a major transit point in the Indian Railways connecting the four Metro Cities. Chennai Airport is the nearest airport to Guntur. Guntur is a peaceful place to live in and is fast becoming a favorite if NRIs and other people as a viable option for investing in property.
Kakinada: Kakinada property is experiencing a rise in its demands. The city is growing rapidly due to the recently granted Special Economic Zone status. After completing the SEZ, thousands of jobs in manufacturing and other sectors will be created. While commercial properties are being sought for the establishment of retails stores, shopping arcades, entertainment centres and business hubs, the residential properties are catching the attention of the people seeking homes in the city. The efforts of the state government and the city administration to improve infrastructure facilities and civic amenities are also paving way for the quick growth of real estate in Kakinada. Seeing the trend of development in these sectors, leading builders of the country have begun to arrive in the city to look for the possibilities of viable residential projects. Kakinada is an emerging city of Andhra Pradesh and the effort of the government in infrastructure segment has resulted better transport facilities, growing economy and establishments of an array of educational institutions. Kakinada is now considered as a major educational hub of the state owing to the presence of prestigious colleges and technical institutions. As a natural harbor, the city is also accessible through sea and this makes it an ideal place for the development of trade and industries. Kakinada is usually known as ‘Fertilizer City’ of India. Besides, sugar, petroleum products, IT, fishing and aqua culture, electronics, power generations etc are the main industries that are contributing in the economy of the city.