As per the latest NHB Residex news, there is an increase in prices for smaller units of Tier II type cities as compared to Tier I cities. An initiative of the National Housing Bank – NHB Residex, the report explains that the residential units sized usually between 60-100 sq m in Tier II cities have witnessed the maximum price increase in the last quarter of the year. Vijayawada, Vishakhapatnam, Bhubaneshwar, etc. are cities studied among 50 cities of India.
Vijayawada is among the top five cities, which has seen an annualized price rise in the range of 8-10 per cent in the (ready to occupy) residential real estate property market.
Vijayawada is also known as the "City of Victory" is located on the banks of the Krishna River, is about 257 kilometres from Hyderabad. In recent times, the city is witnessing a high rate of growth in all its economic sectors including commercial and industrial sectors.
1.Residential Real Estate Property in Vijayawada
The current residential Real Estate property segment in Vijayawada is growing both in terms of quality and quantity. The government’s emphasis and developmental policies on real estate constructions and infrastructure have been the main attributes for the speedy development of Vijayawada. The city is rapidly adopting new concepts in real estate constructions, like as residential townships, in which all modern day facilities are provided- Gymnasium, swimming pools, clubhouse, tennis courts and much more in its own boundary, at very affordable price.
The governmental organization is also taking initiatives in some areas to build strong and high-quality houses as the old houses are of low quality. The Vijayawada Development Authority Guntur Tenali Mangalagiri (VGTM-UDA) plans to build more than 76,000 houses in Vijayawada and Tenali under the Rajiv Swagruha scheme. The UDA will also step to facilitate the development of a Special Economic Zone for Information Technology (SEZ) for employment generation.
2.Commercial Real Estate Property in Vijayawada
Vijayawada real estate property market has emerged as one of the most attractive investment destinations among Tier-II cities in India. With the type of capital floating in the market, investors have a strong idea with regard to Vijayawada to become the financial capital of Andhra Pradesh, in the coming years. As the government has relaxed the rules for FDI in the Indian real estate market and SEBI has given the assent for real estate mutual fund investments, the Vijayawada real estate market has seen a lot of stability.
With large investments flowing freely in Vijayawada city, the property sector has eventually become a seller’s market, leading to unprecedented price surges in most of its projects. It has seen a jump of about 30 percent over the last 2 years and is likely to see at least 40-60 percent increase over the next year and a half.
3.Retail market in Vijayawada
As such, Bejawada retail market is moving at a snail's pace but can be seen to reach the required pace in the future with the expected entry of brands like Shoppers Stop and Big Bazaar among the big names of shopping centers.
To give an advantage to the retail industry in Vijayawada, the City Municipal Corporation has proposed a multiplex to come over on an area of 2 acres of land near the Vidhya dharapuram bypass.
The project plans to serve as a hospitality and entertainment center, which will be executed on the basis of the public-private partnership. It is likely that the corporation will obtain 25% financing from the Center to implement the plans for the proposed center, which will involve an investment of Rs 40 crore. Big Bazaar has already rented an open site and started construction on Bandar Road. Shoppers Stop and Lifestyle are looking for suitable spaces along the city’s Ring Road.
These upcoming mega shopping centers are definitely going to give an impetus to improve the overall retail profile of Vijayawada and contribute to making it a modern city.
4.Upcoming Real Estate Projects in Vijayawada
IT Park: There is an IT park in the pipeline for Vijayawada city. The project will emerge at the 32-acre site at Kesarapalli across from Gannavaram Airport. Software Park: The District Administration is considering the construction of a software park in the whole land belonging to the Polytechnic College of the Government and ITI in the city.
Township: A notable project like Vigneshwara Enclave and Sri Akshita Oaks, are among the most exclusive real estate residential projects in Vijayawada. Also with an investment of Rs 650 crore, the municipality proposes to include approximately 4.6 million square feet of a residential and commercial complex. It is to connect the Guntur road located 12 km from Vijayawada.
The corridor between Hyderabad-Vijayawada: The state government has proposed building a high-speed corridor that will reduce the distance between Hyderabad and Vijayawada to just 2 hours. It is estimated that the project will cost 3,000 rupees.
The government of Andhra Pradesh wants to build a Vijayawada city on the lines of Singapore. It has better road connectivity through its bridges, flyovers and NH5 & NH9 connected with other major cities of Telangana and AP. Biggest Railway junction of status A1, an International airport, biggest bus station in Asia and sufficient water supplies all round the year. All these factors have made Vijayawada as one of the favorites and top real estate investment destination for both locals and NRIs.
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