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Real Estate Trends in Vishakhapatnam

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Real Estate Trends in Vishakhapatnam

Last updated: October 20 2021
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  • #61


    Re : Real Estate Trends in Vishakhapatnam

    Where's the money for smart cities?

    VISAKHAPATNAM: At a time when the BJP-led NDA government is about to celebrate its first anniversary later this month, its plans for developing 100 smart cities in the country is yet to kick off.

    Even cities such as Vizag, Allahabad and Ajmer, which were selected for development during Prime Minister Narendra Modi's US visit in October last year, are yet to receive any allotment as the Centre is yet to finalise the smart city scheme, as per an RTI reply issued by the Union ministry of urban development (MoUD) on April 28 this year.

    Replying to RTI queries posed by TOI, the MoUD has stated: "The scheme of developing smart cities is

    at the formulation stage. The cities will be selected only after the scheme design is complete."

    At the same time, replying to a query on funds for the scheme, the MoUD said, "In the financial year of 2014-15, a combined allocation of Rs 2 crore for a new mission, including development of smart cities, along with an allocation of Rs 6,273.77 crore for development of 100 smart cities and JNNURM was made by the government."

    Incidentally, the allocation for smart cities is nearly Rs 786 crore lesser than what was announced by Union finance minister Arun Jaitley in the 2014-15 Union budget. While Jaitley had announced Rs 7,060 crore for 2014-15, the ministry, in its reply, has quoted Rs 6,273.77 crore.

    Further, the MoUD said, "In the current financial year (2015-16), an allocation of Rs 2,000 crore has been made for the smart cities scheme."

    However, no funds have been released by the MoUD for the project as yet. "It is stated that since the scheme of developing smart cities is at the formulation stage, no fund has been sanctioned/released out of the allocated fund."

    Incidentally, the smart city scheme also does not appear to have any particular time frame for development. The RTI reply also failed to provide a list of smart cities that have been identified under the scheme.

    The smart sting

    * Allocation of Rs 6,273.77 crore in 2014-15, Rs 2,000 crore in 2015-16

    * No funds sanctioned or released for smart cities so far

    * Scheme at the formulation stage, says MoUD

    * List of cities to be selected only after the scheme design is complete

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    • #62


      Re : Real Estate Trends in Vishakhapatnam

      ‘Denotification of land will strip city of green cover further’

      VISAKHAPATNAM: The government should stop de-notification of 3,000 acres of forest land on the hills of the Port City as it will spell doom for whatever green cover is left after cyclone Hudhud wreaked havoc in the city last year, said former deputy mayor K Dorababu.

      Speaking to media persons here on Wednesday, he suggested that instead of de-notifying the hills for the benefit a few individuals and institutions, the government should initiate plantation in the areas to restore the lost greenery.

      "Environmentalists had already expressed concern over the reduction of green cover in the Port City from 43% to 23% after cyclone Hudhud last year. The absence of trees has also led to an increase in temperatures and pollution levels," the former deputy mayor said.

      He alleged that the government was de-notifying forest land to convert the city into a concrete jungle. "The people's representatives should keep their selfish interests aside and work for the people. They should not force public servants to fulfill their motives but encourage them to focus on issues like enhancing green cover and providing proper drinking water," Dorababu said.

      The Visakhapatnam Urban Development (Vuda) had already called for tenders to prepare a detailed project report (DPR) to develop the hills of Errakonda, Seetakonda, Nadupur and Narava for tourism, residential and commercial purposes.

      Dorababu alleged that the decision by ministers and officials would destroy the city's ecology. "Any change in the master plan and land use should be done only after considering public opinion. Calling for tenders and de-notification of reserve forests is a clear violation of laws," he alleged.

      Dorababu lashed out at Vuda for trying to violate the laws regarding CRZ regulations and said that the development authority was reprimanded by the courts of law in the past for violating the laws.

      He pointed out that the state government had proposed plantation over 5,640 hectares of alternate lands for the de-notified forest land in 2012 but nothing has been done so far. The CAG report also states that out of 11,033 hectares that was supposed to be afforested across the country, Andhra Pradesh alone accounts for 51%. Moreover, the state tops the list of non-utilisation of Compensatory Afforestation Fund Management and Planning Authority (CAFMPA) funds. At present, the government has allocated 6,000 acres for afforestation for de-notification of 3,000 acres in Vizag, Dorababu said.

      "If the new Land Acquisition Act comes into force, acquisition of 6,000 acres would become a herculean task for the government," he said.

      ‘Denotification of land will strip city of green cover further’ - The Times of India
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      • #63


        Re : Real Estate Trends in Vishakhapatnam

        Police arrest five land grabbers in Visakhapatnam

        VISAKHAPATNAM: The PM Palem and Bheemili police arrested five land grabbers, including a woman, in two separate cases in the city on Tuesday.

        In the first case, the PM Palem cops arrested three for allegedly using forged general power of attorney (GPA) documents and occupying a 90 sq yd house site of a physically challenged person who has been missing since 1995. The accused were identified as Tanneru Uma Maheswara Rao (57) of Vikalangula Colony of Madhurawada, his wife T Venkata Ramana (53) and Kondeti Rama Krishna (25) of Seetammadhara.

        According to deputy commissioner of police (law and order zone-I) CM Trivikram Varma, the government had allotted plot number 92 to Koppala Srinivasa Rao in survey number 336 at Vikalangula Colony in 1991. The handicapped person constructed a hut on the site, but went missing in 1995. His mother K Sarada recently discovered that K Ramakrishna was constructing a house on that site. On enquiring, Ramakrishna said he had purchased the site from Uma Maheswara Rao and his wife on March 31, 2012. Cops found that Uma Maheswara Rao had grabbed the land by creating false GPA documents.

        In the second case, Bheemili cops arrested two persons for grabbing 5.18 acres in Sommanapalem village of Kapuluppada panchayat on Tuesday. The accused were identified as Marupalli Rama Rao (33) and Marupalli Rajendra Prasad of K Nagarapalem village.

        Police arrest five land grabbers in Visakhapatnam - The Times of India
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        • #64


          Re : Real Estate Trends in Vishakhapatnam

          Greater Visakhapatnam Municipal Corporation to select consultancy firm for ‘smart city’ bid

          VISAKHAPATNAM: The Greater Visakhapatnam Municipal Corporation (GVMC) will zero in on a suitable consultancy firm by September 10 for preparing the 'smart city' proposal to compete with 97 other cities and get shortlisted for the first phase of the project in which only 20 cities will be selected.

          The selected consultancy is likely to begin work on the proposal from September 15 and complete the task within 100 days from the date of work order. A specially appointed committee comprising officials from the department of municipal administration and urban development (MA&UD) and AP Urban Finance and Infrastructure Development Corporation (APUFIDC) will select the firm from 11 consultants shortlisted on the basis of their Request for Proposal (RFPs), on September 10. The estimated cost of the assignment is Rs 40 lakh.

          The 11 shortlisted consultants include Darashaw and Co Pvt Ltd, Lea Associates South Asia Pvt Ltd, IIDC Limited in association with Urban Mass Transit Company Ltd, Egis India Consulting Engineers Pvt Ltd in association with IAU idF France and Egis EAU, CRISIL Risk and Infrastructure Solutions Ltd, Mott MacDonald Private Ltd, Srei Infrastructure Finance Ltd, AECOM India Pvt Ltd, Knight Frank (India) Pvt Ltd, Infosys Limited and CRP Risk Management Ltd.

          Meanwhile, speaking to reporters here on Tuesday, GVMC commissioner Pravin Kumar, who is one of the members of the selection committee, said the 'smart city' proposal will be submitted to the Union urban development ministry through the state government.

          The Union government will allocate Rs 2 crore to each of the 98 selected cities for preparing the 'smart city' proposal, Pravin Kumar said.

          Greater Visakhapatnam Municipal Corporation to select consultancy firm for ‘smart city’ bid - The Times of India
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          • #65


            Re : Real Estate Trends in Vishakhapatnam

            VPT mulls developing land in city into commercial assets

            VISAKHAPATNAM: With land within the GVMC limits becoming a prized asset, the Visakhapatnam Port Trust (VPT) is now looking to rake in additional revenue by making the most of its unused lands by developing them as commercial centres and may also consider developing space for IT towers subject to feasibility in Harbour Park or Salagramapuram in the city.

            According to senior VPT officials, the major port has nearly 12 acres lying unused at Harbour Park and around 40 acres at Salagramapuram near Narasimhanagar in the city. With both these parcels of land located in prime areas of the city, the VPT has now decided to rope in consultants to prepare a plan in order to optimally utilise the vacant land in its fold.

            The consultant is expected to prepare a feasibility report to identify the market potential and strategy to be followed by VPT along with a business plan, technical and commercial viability. The consultant is also expected to identify the most suitable business plan for the project with an objective to maximize the return on investment to the project and identify the various infrastructure components for the project along with proposed development time schedules (project phasing) for the infrastructure components based on the demand projections. The consulant will also provide cost estimates for infrastructure development and indicative layout drawings for the proposed project.

            "VPT wants to see what kind of demand is there for the land that it holds in the city. We want to see if it can be developed either for IT towers or any other commercial centre, which makes business sense to the port. The plan is to go for the PPP mode of development depending on the returns that VPT will get," said a VPT official. "The consultant will study the revenue model and areas or sectors which can provide good returns for the port," he added.

            "The advantage of these land parcels is that they are located right in the heart of the city and if the IT sector starts to grow in Vizag, then developing these can be a profitable proposition for the port. Instead of leaving the land idle, we are hoping that it can bring in additional revenue for the port. At least we will be able to get a few crores of rupees per year by putting the land to productive use," said another official.

            VPT mulls developing land in city into commercial assets - The Times of India
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            • #66


              Re : Real Estate Trends in Vishakhapatnam

              DMRC to build Vizag metro rail project

              Vijayawada: The Delhi Metro Rail Corporation (DMRC) will execute the Visakhapatnam metro rail project at an estimated cost of Rs 13,488 crore. It is expected to be completed in a period of four years.

              The Centre's decision to entrust the project to DMRC was announced by union minister for urban development M Venkaiah Naidu in the midst of submission of a detailed project (DPR) to chief minister N Chandrababu Naidu at a press conference here on Saturday. The CM said that the DPR would be placed before the cabinet shortly for approval.

              The DPR has proposed to fix fare at Rs 10 for a distance from 0 km to 5 km, Rs 20 from 5-10 km and Rs 30 beyond 10 km. As per the DPR, it is executed in four corridors — NDA Junction to Kommadi Junction (Madhurawada) for a distance of 22.8 km, Gurudwara to Old Post Office (5.26 km), Thatichetlapalem to China Waltair (East Point Colony) (6.91 km) and NDA Junction to Gajuwaka (8.1 km), a total distance of 42.55 km.

              Initially, it was proposed to build the rail project in three corridors. The corridor between NAD Junction to Gajuwaka Junction was recently added following a request from the locals. Venkaiah Naidu said private players did not show interest to take up the project under build-operate-transfer (BOT) system in view of low FIRR (financial internal rate of returns) in the order of 2.08 and 2.059 per cent, forcing the government to ask the DMRC to take it up.

              The public-private partnerships (PPP) or BOT modes would succeed only when the returns would be not less than 16 per cent, he explained. Therefore, it will be implemented as a government initiative jointly by the state government and the Centre on the lines of Bangalore, Chennai and Delhi metros.

              Venkaiah Naidu expressed hope that Vizag could meet the norms given its population growth of 2.5 lakh every year. The total population of Vizag is registered at 17.30 lakh as per the latest census.

              The Union minister said that the Centre has approached Japanese International Cooperation Agency (JICA) for financial assistance for the project. The proposed funding pattern under SPV model is as follows according to the DPR: equity by central government 1,504 crore (14.17 per cent), state government 1,504 crore (14.17 per cent), JICA loan (1.4 per cent) and another 8.5 per cent of funds to be raised in the form of market borrowings (tax free bonds on roll over basis).

              DMRC to build Vizag metro rail project - The Times of India
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              • #67


                Re : Real Estate Trends in Vishakhapatnam

                'Vizag has immense potential, will continue to witness steady growth'

                Hailing from an agrarian family of West Godavari district, he is a first generation builder from his family. Having studied at the AU Centre in Kakinada, he moved to the Port City nearly two decades ago and has, as the managing partner of MK Builders and Developers, been involved in construction of various housing projects in the city over the past 17 years. In an interview with Manish of TOI, K Rama Krishna Rao, chairman of the Confederation of Real Estate Developers Association of India (Credai)'s Visakhapatnam zone, takes a reality check on Vizag's realty scenario.

                After bifurcation, has there been any growth in Vizag?

                We are in a much better position now. Even though Vizag is not the capital, it is the biggest city in AP and has its own importance. New employment and migration to the city has yet to take place on a large scale, but in the coming years it will increase as the manufacturing and IT sector begin to grow in the city. The metro rail project is also going to give a boost to the city's infrastructure.

                Which areas are the potential realty hotspots in the city?

                Madhurawada, Vepagunta and Kurmannapalem are the areas of the future. Madhurawada is located between the Bhogapuram airport and Vizag city and due to plans of developing the metrol rail is going to be the hottest destination in Vizag. Vepagunta also holds tremendous promise due to the BRTS project and is finding its place among middle-income group employees. Kurmannapalem is growing due to demand from central government organisations such as Vizag Steel Plant, HPCL and pharma companies at Parawada.

                For long, IT was touted to be the growth driver for Vizag but has failed to take off. Do you see this changing now?

                Until AP was bifurcated, all the focus was on Hyderabad. But now times are changing and there is no doubt that IT still has the strength to drive markets in Vizag. Ours is already the biggest and most ideal city for IT and the government has also said that it will promote IT in Vizag, so it will develop much faster. Also, with two ports increasing their capacities, port-led development will be another driver for the city.

                Apart from the metro rail that is being planned, what else do we need as part of infrastructure development?

                When you consider infrastructure related to the housing sector, the most important aspect is connectivity. If connectivity is provided, then people will come to new areas. It's a good move by the central and state governments to plan for a new airport at Bhogapuram as it will bridge the gap between Vizag and Vizianagaram. The road connectivity will improve further and the proposed metro connection along with air connectivity will offer a big boost to infrastructure.

                Will Vizag continue to witness an increase in prices of plots and flats?

                The AP market as a whole and Vizag are completely different in the sense that Vizag always has witnessed a steady growth, unlike other cities in the state. Even after bifurcation, there was no increase in prices due to speculation unlike in Vijayawada, where too much hype was created, causing difficulty for builders as well as people. The prices in Vizag market will witness a steady growth.

                Is housing getting out of the reach of the common man due to increasing land prices?

                Land availability is an issue. If land is available, then housing can be provided to everybody. Nowadays, a salaried employee can't buy flats in the city due to which they are moving to suburbs like Madhurawada. Even in Madhurawada, we are not able to get flats for less than Rs 20 lakh. If that has to happen, then government has to provide land at affordable rates, which is not being done. Nearly 500 builders are successfully undertaking projects in joint venture mode with private land owners. But, the same thing is not happening with government. If the government gives land, then it can resolve the issue of housing without spending anything. The same thing is being done in Malaysia, where the government gives specification to builders and construction is taken up. Why can't it be replicated here?

                What is the burning issue being faced by builders in the city?

                Raw materials and availability of skilled labour. The main problem we are facing is with sand, which is very difficult to procure. The DRDA office last month had stopped issuing sand for about 20 days and even now we are facing some problems with sand. Why is it happening? We are not against government giving sand reaches to Dwcra groups, but transportation shouldn't be linked to it as it is a 24-hour activity. Government has to make it easy for even common people to purchase sand. Skilled labour is another nation-wide problem. Government has identified that skill development is needed and realized that training has to be given to upgrade skills. Builders will pay a worker only when he turns up for work at the site otherwise we won't be in a position to do so. So if a worker goes for training, why will we pay? Government has to fill this gap so that worker gets some remuneration as an incentive for the training he undergoes.

                Many of the apartments in Madhurawada are still vacant. Is it a case of excess supply?

                In Madhurawada, the minimum infrastructure needed for people to live has not been created. Builders have constructed apartments, but there is no road and in some cases even streetlights are not there, which have to be provided by civic bodies. People are afraid to go there, because minimum social infrastructure such as departmental stores or city bus services or hospitals are not there.

                Several big realty players are making investments in Vizag. Is it an advantage to the city?

                Once big players come, it gives a nationwide focus to the city. Until now only local players were there, but the arrival big players goes to prove that Vizag has immense potential for growth.

                'Vizag has immense potential, will continue to witness steady growth' - The Times of India
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                • #68


                  Re : Real Estate Trends in Vishakhapatnam

                  Builders threaten to bring construction to halt in city

                  VISAKHAPATNAM: Demanding that the AP government immediately look into the shortage of sand in the district, representatives of the Confederation of Real Estate Developers Association of India (Credai)'s Vizag zone threatened the government that builders will stop all civil works in the city from September 21 unless it does something to resolve the issue. The association urged chief minister N Chandrababu Naidu to intervene in the matter.

                  Addressing a media conference in the city on Tuesday, Credai Vizag zone chairman K Ramakrishna Rao said that builders are deeply worried about the shortage of sand, which is hurting construction activities in the city. He said there is no supply of sand by DRDA, which is the sole sand distributing agency of the state government.

                  He said that the non-availability of sand is only being witnessed in the Port City and its surrounding areas. The DRDA authorities of the districts adjoining Visakhapatnam, where plenty of sand is available, are not encouraging supply to Vizag, he added.

                  Against the earlier availability of one truckload of quality sand (six units) at around Rs 18,000, the price now is at Rs 50,000 due to cess and transportation charges. The high sand prices and now its non-availability has affected construction activities and also impacted housing projects (pushing up costs) and infrastructure projects in Vizag city, he added.

                  Credai members said that there has been a shortage of nearly 70% as against the demand of 1,000 truckloads a day in Vizag.

                  Credai Vizag secretary B Srinivasa Rao said that though Visakhapatnam district officials are expressing their helplessness sand is illegally available in the market at a higher rate.

                  Credai Vizag zone members pointed out that stoppage of civil works will cause loss of employment to lakhs of contract labourers and skilled workers, who are dependent on construction activity and will also bring to a standstill all kinds of supplies and commercial activities.

                  Builders threaten to bring construction to halt in city - The Times of India
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                  • #69


                    Re : Real Estate Trends in Vishakhapatnam

                    PWD Building: Withstanding the test of time

                    VISAKHAPATNAM: A magnificent cut stone structure built just after World War I, the district engineering office, which is now known as the public works department, is a typical example of colonial architecture.

                    Built on an elevated sand hill next to the zilla parishad, the PWD building is a two-winged structure with a central staircase. The design has all the elements of necessity and simplicity and yet has the ability to inspire awe.

                    The staircase is exquisitely carved out of Burma teak as is the case with most public and private colonial period buildings in Visakhapatnam and leads to the first floor, which had originally boasted of a high-beamed tiled roof but has now been replaced with an RCC roof.

                    The doorways are gently arched (brick inlaid arches) with every room leading to the enclosed verandahs and boasting of rectangular ventilators and typical wood and steel reinforced windows. The pillars are rectangular columns with each being 3-ft wide and the building is surrounded by an encompassing pillared verandah that boasts of around 60 such mighty pillars.

                    "The structure is said to have a 6-ft deep foundation and is perfectly balanced on all sides. More importantly, it is not just purely functional but also provides those who work inside with a cool, well-ventilated and breezy office space," said history buff B S Mahesh.

                    Speaking about the size of the building, architect PRK Sarma said, "It is a 14-room building with an area of around 6,500 sq ft. But if one were to calculate the size of the entire building, the elevated roof must also be taken into consideration."

                    Regarding the ground floor, the architect said, "The ground floor roof is Madras terrace, with Burma teak beams interlaced with steel beams imported from England supporting the roof."

                    An old resident of Maharanipeta, PVN Murthy said, "I'm 80 years old and the building's looks have not changed a bit. My parents, who moved from the Old Town to Maharanipeta in the late 1950's, had told me that the building was built in the early 1920s."

                    PWD Building: Withstanding the test of time - The Times of India
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                    • #70


                      Re : Real Estate Trends in Vishakhapatnam

                      Housing project at Suryateja Nagar slum to begin soon

                      VISAKHAPATNAM: The Greater Visakhapatnam Municipal Corporation (GVMC) will start the housing project under the centrally-funded Rajiv Awas Yojana (RAY) at Suryateja Nagar slum for its dwellers soon.

                      GVMC commissioner Pravin Kumar visited the area on Friday and instructed the officials concerned to initiate construction of a temporary transit housing complex in the same area for the slum-dwellers as an alternative accommodation.

                      GVMC superintending engineer (projects) S Mariyanna said, "As many as 204 houses will be built under the project at an estimated cost of Rs 6.33 crore. Each beneficiary will have to contribute Rs 90,000 for which the GVMC will help them by sanctioning bank loans. The remaining balance will be borne by the Centre. The corporation will also provide basic amenities at the project site."

                      Speaking about the temporary accommodation, he said, "GVMC will spend nearly Rs 1 crore to set up the complex near the slum. The temporary accommodation is likely to be completed in the next two months. Once the temporary shelter is ready, the housing department will start constructing the houses. The project will be completed in one year."

                      Housing project at Suryateja Nagar slum to begin soon - The Times of India
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