No impact of 'capital' decision on Vizag real estate prices
Delay in making Visakhapatnam the executive capital of AP will not make any impact on fortunes of real estate firms
Visakhapatnam: The delay in development of Visakhapatnam as the executive capital due to legal hurdles and subsequently caused by the decision to repeal legislation on trifurcation of capital and announcement to table a new bill to implement it will not have any impact on real estate prices in the city often called as City of Destiny.
Realty operators say as the city has robust industrial infrastructure with road, rail and air connectivity and achieved growth momentum even before bifurcation-the second largest after Hyderabad, the delay in making Visakhapatnam the executive capital, contrary to the expectation, will not make any impact on their fortunes.
Credai AP President B Raja Srinivas told Bizz Buzz that unlike Amaravati, there is no significant change in land prices in Visakhapatnam after the announcement on formation of three capitals. "Per acre price in Amaravati and its surroundings went up from Rs 5 lakh-Rs 10 lakh to Rs 2 crore-Rs 3 crore immediately after the decision to make it new capital was made public," he said adding even in Kurnool there was some impact in the realty sector due to the hope that it will be made the judicial capital after relocating the High Court.
Credai Vizag Chapter Chairman B Srinivasa Rao said capital or no capital Visakhapatnam is always the most sought after dream destination to have sites or houses for people belonging to all categories. Visakhapatnam is considered as the second best city after Hyderabad in the undivided Andhra Pradesh, he pointed out and said the city is also considered as the city of future due to the proposed petrochemical, Visakhapatnam-Chennai Industrial Corridor and Bhogapuram International Airport. The city, he said, has metamorphosed into a growing metropolis from a tiny fishermen town over the past several decades.
The realty sector feels that there is not much price appreciation after the trifurcation of capital announcement and whatsoever increase has taken place is due routine appreciation. The per sft price increase for purchase of apartments in the range of Rs.400 to Rs 500 over past few months is being attributed to rise in prices of raw material like cement, sand and steel.
At present, apartments are available at Rs 3,000 to Rs 3,500 per sft in industrial suburbs of Lankalapalem and Duvvada. Madhurwada, Bheemilipatnam and Tagarapuvalasa, which are witnessing a boom in construction, one can get flats at Rs 3,500 onwards per sft. The government decision to e-auction 13.83 acres of land acquired from UAE-based LuLu Group near the beach road at a reserve price of Rs 107 crore under Mission Build AP Mission has been kept under abeyance following judicial intervention.
Visakhapatnam Apartments' Residents' Welfare Association (VARWA) Secretary BB Ganesh said the executive capital was never sought by the people. "It was a political decision which had raised hopes for an increase in rentals. However, due to the pandemic, none increased the rentals. The gradual increase in real estate prices is also not triggered by the capital decision and it is more or less a routine phenomenon."