IT boom fuels real-estate surge in Vizag outskirts

Visakhapatnam: Land prices on the outskirts of Vizag have surged by 40–50% after Google and other major IT firms announced investments, sparking concerns that home-buying may become tougher in parts of the city amid expectations of further escalation.Beyond Vizag, the investment wave has triggered a real-estate boom in Vizianagaram, driven by the Bhogapuram international airport project and the Visakhapatnam–Raipur national highway. In Anakapalle district, the proposed steel plant has also pushed land values upward.
Localities such as Anandapuram and Bheemili—once considered remote—are witnessing sharp price hikes and are gradually merging into Greater Visakhapatnam.CREDAI Visakhapatnam chapter president E Ashok Kumar said development activity in Vizag region has picked up across sectors since the new coalition govt assumed office. With recent announced big investments, land prices in parts of the city (Madhurawada, Kommadi, Rushikonda, Anandapuram, Bheemili) have increased by 30 to 50%. Google is building its first data centre in Tarluvada of Anandapuram locality in Vizag city with around $6 billion. The data centres and AI facilities required large, well connected land parcels which increased demand for land in the city, he added.Similarly, the upcoming mega integrated steel plant of Arcelor Mittal-Nippon Steel in Anakapalle district and the ongoing Bhogapuram international airport in Vizianagaram district and the improved connectivity between Vizag and Vizianagaram, and Vizag- Anakapalle has pushed the land prices, Ashok Kumar added. Though the announced big projects will be grounding after some years, the land prices in Anandapuram locality increased abnormally. A few months ago, the price of the one-acre land in Anandapuram locality is around Rs 2.5 to 3.5 crore, now the owners of the land demanding Rs 5 to 6 crore per acre, said M Naidu, a resident of Anandapuram locality in the city. The proposed projects in Vizag will push the real estate sector in Vizag city, V Dharmender, Charmian of the CREDAI, Visakhapatnam Chapter, said.He said NRI investment in Vizag real estate will increase in the coming days. Anticipating the land prices will surge further, landowners in Anandapuram locality were holding their property and were not showing immediate interests to sell their lands, he added.The prices of flats in parts of the Madhurawada and Kommadi have increased following the announcement of big projects. Now, I am looking for a 2-bhk flat in Madhurawada locality, but the price is above Rs 50 lakh, said P Raju, a private employee in Vizag city. The prices may further increase as the relators say that the increased land prices will push the flat prices, he added Industry insiders say joint development agreements (JDAs) between landowners and builders may become more common, seen as a win-win amid soaring valuations.