Real boom in vijayawada
Vijayawada, the second largest city in Andhra Pradesh after Visakhapatnam, is located 39.5 km from the state’s new capital city, Amaravati. Property prices in Vijayawada have been going through the roof in the last year and half; so much so, that many a non resident Indian (NRI) found that land prices in the VGTM (Vijayawada Guntur Tenali Mangalagiri) belt is more expensive than realty prices in California.
Vijayawada, also known as the Business Capital of Andhra Pradesh, is a major trading and commercial hub. In 2010 it was estimated that the city had a GDP of USD 3 billion which is likely to go up to USD 17 billion by the year 2025. The city is also a major railway junction. Vijayawada was named as a “Global City of the Future” in a report.
The Andhra Pradesh government said that the work on the proposed Metro rail project for Vijayawada would commence shortly. The estimated cost of the project is INR 6770 crore and will have two corridors which cover a distance of 26.03 km.
Amaravati, the new capital will be linked by Corridor I while the other will connect Gannavaram airport. Corridor I will start at the Pandit Nehru Bus Terminal to Penamaluru a distance of 12.76 km while Corridor II will also start at Pandit Nehru Bus Terminal to Nidamanuru, a distance of 13.27 km.
The land requirement for the metro project will be around 31 hectares, while the metro rail depot will require 11.34 hectare. Real estate sources said that once the Metro is functional, land prices will start rising, especially near the Terminal buildings.
Benz Circle is one of the busiest junctions in Vijayawada. It is also a well known landmark on Bandar Road and is called so because the Benz Company had its office there. Two national highways the NH5 and NH9 intersect at Benz Circle. Recently Benz Circle has been in the news as property prices here have been more than Hyderabad’s plush Banjara Hills.
Reports said that the most expensive areas in Hyderabad were cheaper than Benz Circle. However, the prices here have dropped and during the first quarter of 2015, the average price was INR 650 per square feet; a drop of 25% from the average price of INR 870 per square feet during the last three months of 2014.
Land prices along NH 5 from Vijayawada to Gannavaram are likely to shoot up as the airport here has been earmarked to become international within three years. Currently Air India, Air Costa and Spicejet operate from here. The government has plans to acquire an additional 470 acres for the expansion of the airport. During the first quarter of 2015, the prices have appreciated by an average of 16% for residential plots and are about INR 1500 per square feet.
Poranki is located about 6 km from the centre of Vijayawada and 8 km from Gannavaram. A large number of affordable residential projects have come up in this area. The areas which are attracting house buyers’ interest are Kanuru Road, Sanath Nagar, Telaprolu, Konduru and Gollapudi