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Vizag: Looking beyond seaports

From a city whose economic life centred around a seaport till a few years ago, Visakhapatnam has now emerged as an IT/ITeS destination.

Visakhapatnam
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From a city whose economic life centred around a seaport till a few years ago, Visakhapatnam (Vizag) has now also emerged as an IT/ITeS destination. The demand for retail and office space is fuelling real estate growth in the city.

Price propellers

Some projects underway that could influence real estate prices in future.

1. SEZs

Visakhapatnam SEZ, located 24 km from the city, Pharma City at Parwada, Exim Park established by Visakhapatnam Port Trust and a new container terminal for the port will accelerate industrial growth.

2. MRTS

The proposed mass rapid transit system will cover three traffic corridors — Old Post Office to Hanumanthawaka, Asilmetta to Lankalapalem, Convent Junction to Pendurthi — in Phase 1.

3. Road Projects

Major city and suburban roads being widened under the Comprehensive Road Development and Beach Development project.

Land use by 2012

With a number of new road projects and mass rapid transit system, traffic and transportation planning will be high on the development plan for the city. SEZs and IT companies will also push demand for residential townships.

Transportation

44%

Residential

27%

Industrial

12%

Public

8%

Commercial

6%

Agricultural & water bodies

2%

Percentage share of different heads in total proposed investment in infrastructure by 2012 (Rs 14,987 crore)

 

New residential projects

Purchases for self-occupancy are increasing as new industrial and infrastructure projects become operational. Most new residential projects are campus-style developments.

BuilderProjectLocationPrice (Rs)*
Ravitej ConstNagamalli NagarSimhachalam10 lakh
Pawan BuildersMidway ResidencyGajuwaka13 lakh
Vardhani ConstVardhani ResidencySujata Nagar14 lakh
Navya ConstVijay HeightsMarripalem15 lakh
Krishna ConstVV KrishnaDuvvada17 lakh
Creative ConstCreative MadhuraMadhurawada27 lakh
Srinivas AssociatesRK TowersDabagardens35 lakh

*Average price of a 3-bedroom apartment

 

Retail space distribution by 2008

Retail dominates the commercial activity in the city. Almost all the major brands have their presence in the market while several leading retailers are vying for prime space.

Town Main Road15%
Raja Ram Mohan Rai Road12%
Dwarka Nagar Road12%
Dabagarden Road10%
Sripuram Junction10%
Hanumanthwaka Road10%
Jail Road8%
Diamond Park Road8%
Others15%
Total retail space supply by 2008: 4 million sq ft

Buying options

AreaCheapPriceExpensivePrice
CentralSagar Nagar2800Dwarka Nagar4200
NorthBheemunipatnam1500Rushikonda2200
WestLankalapelam1200Pendurti1500
SouthAppikonda1100Munagapaka1400

Prices of residential properties in Rs/sq ft

 

Price change

Average percentage price change in 2006 and 2007 (expected).

  20062007
North20%15%
West40%25%
South15%15%
Central30%20%