After Hyderabad, it is now the port city of Visakhapatnam. Real estate business is really on the boom. For the past one year, land prices have shot up to the skies, unimaginably beyond the reach of the common man.
With the political focus shifting to formation of separate Telangana state, there was a sudden fall in the demand for lands and consequently the land rates in Hyderabad city and the attention of realtors quickly got diverted to Visakhapatnam, which gave the boost to the land value.
Realtors apart, groups of Non-Resident Indians (NRIs) promising rich investments are also now looking to the port city. With the result, the land rates spiralled by 50 to 75 per cent in the past two months itself. This true of the situation even in suburbs in Vizag. What gave a further fillip to the rising land value was the allotment by the State Government of vast stretches of precious land to industries, software companies and Special Economic Zones (SEZs).
Visakhapatnam, known as the “City of Destiny”, has grown in importance in recent corners of the city, land prices are in the range of Rs 8000 to Rs 10,000 per square yard. In the prime areas like Dwarakanagar it is as high as Rs 30,000 to 40,000 per sq yard. times, with the establishment of several IT units and also the sanction of several new industrial parks such as Brandix Apparel City, the proposed Special Economic Zone at Atchutapuram, Pharma City at Paravada and the expansion of Steel Plant’s capacity from the present three million tonnes to six million tonnes.
The Visakhapatnam Port has been the No.l port in the country from the past 6 years for handling as much as 55 million tonnes of cargo during 2005-06. This eventhough Volks Vagan’s decision to backtrack from its proposal of setting up an automobile unit in the city caused a temporary setback. At present, even in remote corners of the city, land prices are in the range of Rs 8000 to Rs 10,000 per square yard. In the prime areas like Dwarakanagar it is as high rrs Rs. 30,000 to 40,000 per sq. yard.
The prices doubled in a span of an year. The most sought-after area is the stretch along the beach, Rushikonda to Bheemunipatnam. In the vicinity of Bheemunipatnam itself, the market value of an acre is around Rs. 60 lakh and the registration value is in the order of Rs. 9 to Rs. 15 lakh. The registration value went up by 50 to 75 per cent from August 2006 and it has gone up further by 50 per cent from the current month.
Even Visakhapatnam Urban Development Authority (VUDA) layouts on the outskirts have become too costly for the middle classes. And the apartment rates have also shot up in recent times. A year ago, apartments were being sold at Rs 1200 to Rs. 1300 per sq. foot. Now the rates have simply doubled and a double-bedroom apartment costs between Rs. 15 lakh and Rs. 20 lakh. In Madhuravada, where major investments in housing are proposed by VUDA, the land prices went up from Rs. 20 lakh to Rs. 30 lakh per acre year before last to Rs 50 lakh to Rs. 60 lakh last year.
Source: The Free Press Journal
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