Tuesday, December 5, 2023

Realty sector in Vizag set for boom

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PNS | Visakhapatnam

With the growing buzz surrounding the potential shift of the capital to Visakhapatnam and the signs of economic recovery, the real estate sector in and around Visakhapatnam, the largest industrial hub and cosmopolitan city of Andhra Pradesh, is poised for a significant upswing.

Visakhapatnam boasts an estimated economy of $43.5 billion and plays a vital role in contributing to forex reserves due to its emergence as a thriving industrial hub. The city is home to major industries such as the Visakhapatnam Steel Plant, Hindustan Shipyard, HPCL Visakh Refinery, NTPC Super Thermal Power Plant, and Jawaharlal Nehru Pharma City (JNPC), which is the largest cluster of pharmaceutical units with comprehensive facilities. Additionally, the Visakhapatnam Special Economic Zone at Duvvada and IT Special Economic Zones at Madhurawada and Gambheeram have further fueled the rapid urban development in the city.

Furthermore, the recent announcement by NITI Aayog CEO BVR Subramaniam to develop Visakhapatnam as a growth hub, alongside Mumbai, Varanasi, and Surat, has injected fresh vigor into the real estate market. The possibility of the Chief Minister’s residence moving from Tadepalli in Amaravati to Rushikonda in Visakhapatnam has spurred speculation that the city may soon become the administrative center.

This could lead to the relocation of several offices and key officials, generating a demand for spacious houses and apartments in areas like Yendada, Visalakshinagar, MVP Colony, and others. Boyana Srinivasa Rao, General Secretary of CREDAI AP, is optimistic about the real estate sector’s resurgence. He attributes this to pent-up demand for residential properties and plot investments, particularly from NRIs. He anticipates positive growth, if not a full-fledged boom. Rao highlights the increasing housing demand in Madhurawada and the industrial hub of Gajuwaka-Kurmannapalem. This demand is driven by the availability of large land parcels, excellent road connectivity, and escalating costs in the city’s central areas. Furthermore, the growth of pharmaceutical units and educational institutions along the Visakhapatnam, Srikakulam, and Vizianagaram highways is contributing to this trend.

The GMR Group, in particular, plans to make the airport operational in 36 months and invest Rs 5,000 crore in the first phase, with plans to develop an industrial zone and an aero city nearby. The Visakhapatnam Chennai Industrial Corridor (VCIC) is also under implementation, while the East Connect Economic Corridor is set to reduce travel time between Raipur and Sabbavaram with an expressway. Additionally, a Metro Rail Project with an estimated cost of Rs 14,309 crore is in the pipeline.

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