Crorepati Homes, Bangalore
It does not come as a surprise that real estate activity has picked up dramatically in residual AP ever since the state of Andhra Pradesh has been bifurcated. Initially, the frenzy was limited to the VGTM area ( Vijayawada-Guntur- Tenali-Mangalagiri) where the new capital is slated to be constructed. It looked for a while that Vizag has fallen off the activity map. Its citizens were crestfallen, probably even felt cheated. But, in the last few days, real estate focus has shifted roundly to Vizag (fondly called as the City of Destiny) and more specifically to its northern suburb, Madhurawada. Two developments need special mention here.
- Fearing land price appreciation beyond reasonable levels, which may render land acquisition costs prohibitive, the AP government has issued a notification disallowing any new permissions to layouts in VGTM area till the capital blue print is finalised and the land acquisition completed. It may be noted that there are hundreds of layouts in VGTM area which have applied for and are awaiting layout approvals. The new government notification effectively means that investors for sites in VGTM area have no property to buy today. And it is no rocket science to know that those investor numbers are really huge.
- AP CM, Chandrababu Naidu’s decision to pitchfork Madhurawada on to the global IT map and his declaration 2 days back that he will spare no effort to see that Madhurawada catches up with Madhapur (the IT suburb of Hyderabad) in a span of 3-4 years has cheered investors wildly. While the statement itself is a hyperbole, the fact that Naidu carries very high credibility as far as the perception on his capabilities on bringing corporate investors to the state is concerned, it has now shifted the real estate focus firmly on to Madhurawada. Read Andhra Nation report here on Madhurawada IT developments. (You can also read Madhurawada IT SEZ administration shifted from Greater Visakha to APIIC )
What has happened now is that, for property investors seeking an opportunity with clear visibility on development potential, Madhurawada has become the only default choice in the entire state. The fact that Madhurawada land prices are still very reasonable ( at around Rs 25,000/- per square yard, I am told) means that it also offers huge ROI prospects. And couple of our sources from Vijayawada ( some property dealers included) tell us in no uncertain terms that moneybags who would have wanted a piece of VGTM pie are now clearly headed to Madhurawada as options in VGTM narrow down.
Way to go Madhurawada !! We await your transformation from a sleepy suburb to a realty and IT hotspot with bated breath.