Vizag tops list in the Andhra Pradesh capital race; to positively impact realty

With the political turmoil over the bifurcation of Andhra Pradesh put to rest, measures are being taken to develop a new capital for coastal Andhra Pradesh. The process of identification of a new capital has already been initiated. It has been seen that in the last few years due to the political instability surrounding the state, the real estate market across the state was down in the dumps. From this staggering position, the real estate market in the state is likely to look up again, due to the bifurcation and with the prospect of a new capital being developed soon. This could push prices up considerably.

With Hyderabad being in the heartland of Telangana, the prospect of a new capital being developed for coastal Andhra Pradesh is quite bright. This puts the focus on some of the coastal regions of Andhra Pradesh like Vijayawada, Vishakhapatnam, Ongole, Nellore, and Tirupati. These areas have been short-listed due to their viability to be developed as the capital of coastal Andhra Pradesh. This could be a time-consuming affair since it would require considerable deliberation. This increases the prospects of these areas being developed so as to vie for the coveted position of being the new capital of Andhra Pradesh. Since there are many investors and realtors hailing from this belt, the potential of these areas being spruced up to face the challenge of other areas, gains prominence. The development process could see prices going northward in these areas. One among these areas would be zeroed in on based on the benefits they offer with regards to being developed as the new capital and the future prospects that it offers. Once this process is complete, prices in the new capital would surge considerably.

It has been seen that in our country, the gestation period for unsold inventory is between 10 month and 34 months. The formation of Andhra Pradesh as a seperate state could in the immediate future create a situation where there is a surplus demand compared to supply. Considerable infrastructure will need to be developed to cater to the requirements of the new capital. As a result, a price rise of about 10%-20% is expected in coastal districts, both for commercial as well as residential segments. Credit for the unprecidented boom in this belt can be attributed to the developmental activities that have been undertaken as well as to the wealth generated by entrepreneurs. With power shortage not an issue, and with high growth prospects, it could be transformed into a progressive area in no time.

Inspite of this boom, the pace of infrastructure development in coastal Andhra Pradesh is far from appreciable. However, developers are still enthusiastic about places like Vizag for which a surge in demand is predicted. This is despite the fact that the Visakhapatnam Urban Development Authority (VUDA) has not undertaken any major infrastructure development activity in the last ten years. There has been no focus on developing any amenities like a master plan for roads, public transportation and other public facilities. Once emphasis is placed on the development of infrastructure and amenities of the city, it is expected that there will be considerable expansion in growth.

Among the probable cities in Andhra Pradesh that could be developed as the capital, Vizag holds a prominent position in more ways than one. Besides excellent connectivity by sea, air and road, other factors like the presence of major public sector companies, a cosmopolitan population and educated talent pool could tilt the balance in favour of Vizag. Moreover, large expanses of developed land is available between Vizag and Anakapalle. There are many areas in Vizag towards Vizayanagaram and Srikakulam highway that would stand to gain due to many IT companies setting up facilities. Also, the film industry and the pharma industry are set to utilize the facilities that Vizag offers to the optimum. Araku is a tourist destination located between Visakhapatnam and Araku Road, and it offers good scope to tap the tourist population especially due to its proximity to Vizag airport. Yalamanchili, Achyutapuram, and Paravada areas are also seeing rapid developments due to the presence of APIIC, NTPC, SEZ , and Pharmacity in these areas.