Political Clarity Matures Vijayawada’s Realty Sector Excessively

After the separation of Telangana from AP (Andhra Pradesh), the realty focus seems to be shifting from Hyderabad to other cities like Vijayawada and Visakhapatnam. Prices have already started to witness and upswing and while Hyderabad still serves as the capital, the prospective chance of finding a central place around Vijayawada makes this city a realty hotspot.

Situated about 270 kilometers away from Hyderabad, Vijayawada sits on the bank of river Krishna. Cited to be a major business and trading hub, real estate in Vijayawad is currently undergoing a major face-lift. Reputed real estate developers and builders are cashing on this boom and are purchasing land in large parcels only to build residential and commercial spaces. The scramble to purchase plots has reached to such extremes that the government had to arbitrate and issue a ban on the conversion of agricultural plots into residential land in the whole region of the Krishna District.

With a change in buyer’s sentiments, locals and migrants are now moving away from making investments in Hyderabad. Potential home buyers and property seekers are showing a keen interest in owning properties in Vijayawada due to its high ROI (Return on Investment). The sudden spurt in housing demand has pushed property prices to soar. For instance a 2 BHK home that costed an average of Rs 20 lakhs in they year 2009 is cited to cost and average of Rs 35 lakh or above today.

In a bid to woo home buyers to make investments in Vijayawada, local and national builders are tapping into the growing demand and are coming up with an array of housing options ranging from being affordable to uber luxurious. According to recent data complied by price trends page of IndiaProperty.com, property values of home in Vijayawada have witnessed an escalation of 70 percent- making the city a hotspot for realty investment. Apart from the growing infrastructure, connectivity too has played an important role in strengthening the realty sector of the city. Projects to widen National Highway 5 linking Chennai to Kolkata has resulted in many developments.

While the city might be witnessing a ripple effect, the growing housing demand is resulting in escalation of property prices. Some of the active residential catchment areas include Gannavaram, Benz Circle and Kankipadu. Homes in these localities are expected to hover anywhere between the price bracket of Rs 3,500 and Rd 12,300 per square feet, depending on the amenities and facilities offered by the builder. So before zeroing down on a particular locality, know more about the neighbourhood by visiting IndiaProperty.com’s locality information page.

If you are thinking the growth is restrictive towards only residential properties, think again, capital values of commercial land too is being quoted at a much higher prices. Recent reports suggested that a land that initially priced at Rs 17 per square feet today is priced at Rs 50 per square feet. The steadily growing infrastructure is cited to be a major driver.

Ranjitha is a freelance writer and blogger, following the Houses for sale in Bangalore and real estate sector closely for many years.