With the division of Andhra Pradesh into two separate states, the local real estate sector has been given many a reason to cheer. After months of sluggishness, the realty sector in the Seemandhra region is all set to grow with increased economic growth, improved business activities and a property market that is set to soar. According to market analysts, the Seemandhra cities of Visakhapatnam, Vijayawada, Kurnool, Tirupati and even Ongole could expect a 40% surge in business over the next few months.
This growth will further be boosted by the upcoming Visakhapatnam-Chennai industrial corridor that is touted as one of the projects that could potentially transform the industrial landscape of Seemandhra.
Set up on the lines of the model Delhi-Mumbai Industrial Corridor project, with an investment of over 1 lakh crore – this proposed corridor is one of the several sops offered by the Central Government to Seemandhra as part of the special package in the Reorganisation Act and will be developed in two or three phases spanning more than 15 years.
This industrial corridor is expected to not only provide a boost to the economy but is expected to create more than 50,000 jobs, both directly and indirectly, in the first phase alone, thus pushing the demand for property and reviving the real estate sector of the region.
The corridor will pass through a combination of well-developed locations such as Visakhapatnam, Vijayawada, moderately developed areas like Kakinada, Rajahmundry and Machilipatnam and under developed industrial areas like Gudur, Nuziveedu and Ongole – promoting the growth and development of these cities.
AP Chief Minister N. Chandrababu Naidu has also broadly finalised the locations for setting up IIT, NIT, IIIT, IIM, IIS Education Research, Central University, Tribal University, Agriculture University and the National Institute of Disaster Management in Seemandhra, however this is still in the preliminary stage and highly subject to land availability.
Some of the other important projects that would be entrusted within Andhra Pradesh include a greenfield crude oil refinery as well as a petrochemical complex by either HPCL or IOC, a new major seaport at Duggarajapatnam, setting up international airports at Vizag, Tirupati and Vijayawada and a new railway zone. Another priority project is the setting up of an Information Technology Investment Region (ITIR) to give a fillip to Seemandhra’s IT potential.
After the bifurcation, the focus has shifted to Seemandhra. With a lot of scope for new infrastructure, the real estate industry in this region is expected to greatly develop. Property prices have already started to shoot up in the region, especially in Vijayawada and Guntur, which are speculated to be front runners for the new capital for the state. Property developers are exploring new localities as the property markets are all set for growth.
Lakshmi Datta Arun for IndiaProperty.com