As various software companies like Encore India, Satyam Computers and Tata Consultancy declared their plans for development projects in the city, speculation triggered a hike in real estate prices in Vizag. NRIs investing in Vizag property further contributed to this appreciation.

VUDA, which plays a crucial role in the city’s development, has launched mega housing projects at Madhurawada and Rushikonda in collaboration with Singapore based promoters at a cost of Rs. 120 crore. The project would incorporate average and large sized apartments.

Individual houses and bungalows are competing with high rise apartments in Vizag. Flats in Madhurawada carry a price tag of Rs.1,200 to Rs.1,300 per sq. ft. Home buyers in Vizag would be able to locate a well-appointed apartment in the Rs. 20 to Rs.25 lakh range, though properties along the beach would be a notch higher.

As investments pour into the city, the need for augmenting hotel rooms has been addressed by leading hospitality chains who would be promoting 4 luxury hotels in Visakhapatnam.

A mega chemical complex, the Mega Chemical Industrial Estate (MCIE) has been proposed in close working collaboration with the Indian Institute of Chemical Technology, Hyderabad. It supports India’s first Greenfield port at Gangavaram, 15 kms away through the proposed coastal corridor

Appreciation

Visakhapatnam has seen unprecedented growth of 23.36% in real estate since December 2006, recording the highest in Andhra Pradesh after Rangareddy and Hyderabad districts.

Property transactions in Vizag were close to Rs. 6,000 crore during 2006-07, with the Stamps and Registration Department collecting a whopping Rs. 210 crore on the deals. The quick appreciation of land rates in Visakhapatnam has led the department to review the figures once in six months.

Commercial properties in Visakhapatnam around the Aslimetta junction have been pegged at Rs.28, 000 per sq. yard, as against Rs. 22,500 per sq. yard a couple of months ago. The table below gives a fair idea of the march of property prices in Visakhapatnam:

Location	Property prices before February 2007 (Rs. per sq. yard)	Property prices after February 2007 (Rs. per sq. yard)
Seethammadhara	11,600	14,500
MVP Colony	10,000	13,000
CBM Compound	12,200	15,000
Siripuram Junction	20,500	26,000
Daba Gardens	21,800	26,000
Dwarkanagar Main Road	18,000	26,300
Madhurawada	4,000	6,000
Kapulauppada	2,200	4,000

Madhurawada and Rushikonda are witnessing faster escalation as compared to other neighbourhoods.

NRI Real Estate Trends

Luxury villas, apartments and farmhouses are what NRIs can look forward to in the green environs of Rushikonda and Kapulauppada. There has been a marked increase in NRI investment over the last few years in these upcoming locations where NRI-specific projects are being developed.

Singapore-based Jurong (India) Constructions is attracting attention from investors for their project in Madhurawada, while Maurya Developers has a strategically located residential project coming up on the highway at Kommadi. Duplex homes in this project would be available in the range of Rs. 30 lakh.

A Green Valley township is expected in Murali Nagar, sporting 3 bedroom apartments priced around Rs. 25 lakhs. SunRay village by SunRay Properties is another integrated township under construction in Boghapuram, offering 1000 sq. yard farmhouses equipped with contemporary facilities.

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