Vijayawada Realty prices skyrocket, outbeats Hyderabad Vijayawada is set for a surge in land prices following the declaration by the government awarding the capital status to the city. In fact, prices started increasing in and around the city since the bifurcation of Andhra and Telangana about three months back in anticipation of the city being declared the capital. With the official declaration, prices are set to increase further with many areas in and around the city touching abnormally high rates of appreciation. However, the government may consider developing the capital city along the fringes of Vijayawada due to the availability of large parcels of government land in pockets at strategic locations. These land parcels are mostly along the vicinity of the proposed Outer Ring Road (ORR). Guntur is one of the areas where there are large vacant government land parcels. Incidentally, the Guntur district administration has already identified about 21,596 acres of vacant government land around the proposed ORR. Land prices soar With the government planning to develop the new capital in areas along the Vijayawada-Guntur stretch, land prices along this stretch are expected to rise exponentially. Vijayawada has usurped the status that Hyderabad formerly held in terms of land prices even during peak price periods. Prices has touched such a high that you will have to pay upwards of 10 crore for an acre of land within a radius of about 15 km from the heart of the city. Land in the heart of the city costs about 1.3 lakh per sq.yard, which is double the price compared to that which was in Q4 2013. Formerly, land in most parts of Vijayawada was available for as low as Rs 5-10 lakh per acre. But currently, it is impossible to find land anywhere in Vijayawada or its outskirts for less than Rs 5 crore per acre. Developers comment CommonFloor contacted prominent developers in the region to get insights into the realty scenario prevailing in terms of land availability and prices. Most of them were of the opinion that even though the government was
considering developing the capital city between Vijayawada and Guntur this was not entirely feasible. This was due to the non-availability of large land parcels of government land along this stretch. Moreover, most of the land available along this stretch was agricultural land renowned for its fertility. Hence, acquiring such land would mean compromising on the interests of farmers and depriving them of their livelihood. Besides, acquiring large land parcels along this stretch would be a herculean task for the government in terms of financial burden. However, Real estate brokers in the city are of the opinion that there are certain pockets within as well as on the fringes of the city where there is tremendous prospect of residential realty development. Gannavaram, where the Vijayawada Airport is located is one prominent area where you can find many residential plots. Besides, areas surrounding Gannavaram are also renowned for the availability as well as future prospects in terms of healthy returns for investors. However, given the potential that the area possesses, land prices in the area have hit the roof. Prices of land in and around Gannavaram which were about Rs 900 per sq. ft. in Q4 2013 have soared substantially in the subsequent period. Currently, land prices are touching about Rs 4,600 per sq. ft. For residential plots measuring about 180 sq. yard to 200 sq. yard, the prices are between Rs 13,000-15,000 per sq. yard. This is expected to increase to about 20,000 per sq. yard in about a year’s time. Another area which is expected to have high land appreciation is Nuzividu, located on the northern fringe of the city. Prices which were about Rs 4,000 per sq. yard a few months back have doubled now. However, developers are wary of purchasing large land parcels at exorbitant prices as they feel that the current prices are based primarily on speculation and may even out later on. Land brokers are of the opinion that as an investor if you are looking for healthy returns, you will need to be patient. Since the development of the capital will take its time, you cannot expect sudden increases in prices. It is advisable to wait for at least five years if you are looking for considerable returns on your investment. In case of residential apartments besides Gannavaram some of the prominent areas where major residential projects are coming up are along MG Road as well as in Poranki and Tadigadapa. Prices of apartments along MG Road have frog leaped to about 25,00030,000 per sq. yard in recent times. However, in Poranki and Tadigadapa, apartments are comparatively affordable at Rs 17,000-20,000 per sq. yard. Based on current land prices apartment prices in fringe areas would not be available for less that Rs 4,500 per sq. ft.
Source: CommonFloor.com
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