Mega Property deals in AP before new capital announcement
The hunt for the new capital of Andhra Pradesh is in full swing! In this backdrop, many mega property deals have already been carried about. Reportedly, a few mega property deals are in the process of being finalized in the Vijayawada, Guntur, Tenali and Mangalagiri (VGTM) region. The expected cost of the deals is over Rs 1,300 crore. With the location for the new capital expected to be selected from this region, speculations are rife with regards to the various mega deals that would be carried out once the official announcement is made.
Mega Theme park based deal
Besides, there are various other multi-crore property deals that are being finalized in the region. This includes a high-investment property deal with regards to setting up of a family entertainment theme park called Haailand Resorts which is owned by the Agrigold Group and is located between Vijayawada and Guntur. The Group was intending to take a loan of about Rs 800 crore for the construction of the theme park. However, as per latest reports, talks with regards to the sale of the resort are on the anvil with the deal price expected to be in the region of approximately Rs 1,025 crore. However, when quizzed about the impending deal, a senior official with Agrigold revealed that the Group was not intending to sell the resort. Instead it was planning to develop the theme park by availing of a loan.
GO issued
In view of the official announcement regarding the location of the new capital of Andhra Pradesh, the State government has issued a Government Order (GO) that constitutes a nine-member advisory committee. The committee which is headed by the Municipal Administration minister as the chairman as also four industrialists. It will examine the nuances of constructing a capital city for Andhra Pradesh and also suggest an action plan with regards to its development.
Impact on Realty market
These mega deals that are expected to be fixed in anticipation of the official announcement of the new capital is expected to have a major impact on the prices of property in the region. Large-scale developmental activities are likely to be initiated, with focus on infrastructure development. Large land parcels in the region belonging to private parties are expected to be purchased at exorbitant prices. Moreover, realty developers are also likely to embark on many mega residential projects to cash in on the demand that can be expected in future. With property prices in the region expected to increase considerably in future, this is the appropriate time for residential buyers to invest in residential property, before prices spiral beyond their expectation. Investors who have invested in land here can expect healthy returns if they sell their land at the opportune time.
