Individuals with deep pockets chase Vijayawada realty

Realty dealers are cashing in and drawing people to areas far beyond central Vijayawada, which do not have amenities ideal for a capital city

The Andhra Pradesh government's decision to set up a grand capital city in Vijayawada is making people with deep pockets rush to Krishna and Guntur districts. Vijayawada falls in Krishna district and a National Highway connects it to Guntur district.

Real estate dealers are cashing in on the opportunity and drawing interested people to areas far beyond the central Vijayawada, up to 100 km, which do not have adequate amenities ideal for a capital city.

Real estate sources said a leading Telugu film producer and a TDP MP had bought 400 acres in Nuzvid--the famous mango town-- in the last four months, while those having political connections and running businesses had got around 600 acres worth of farm lands registered in the town during the same period.

It is learnt that film stars and profitable businessmen based out of Hyderabad but having roots in Andhra Pradesh are at the forefront of this property rush. The airport town of Gannavaram and Agiripally ((18 km and 30 km from Vijayawada Benz circle respectively) are the most sought-after.

Other areas falling in the range of 20-50 km, including Bandar Road, Vuyyur, Amaravati, Hanuman Junction and Mylavaram have become a favourite of software employees and NRIs.

According to online property portal 99 acres.com, a majority of listings are happening in the price of around 40 lakh for residential property sizing 1,000-1,200 sft in these locations.

However, property developers in Guntur and Vijayawada say new projects have turned unviable and the situation is resembling Hyderabad when the city was proposed to get an international airport.

Some are of the opinion Visakhapatnam holds the promise for property investment as it has all the characteristics of a cosmopolitan city. "If I had to set up a unit in AP, I will do it in Visakhapatnam as there is a huge promise in the next five years," said Kishore K Kothapalli, managing director of Hyderabad-based MRL Posnet.