Vishakapatnam: From Port City to Smart City
As the port city of Vishakapatnam gets ready to don the mantle of a ‘smart city’, real estate is set to be one of the direct beneficiaries of its planned development. Smart Cities are the integration of information technology, telecommunications, urban planning, smart infrastructure and operations in an environment geared to maximize the quality of life for a city’s population. Moreover, Andhra Pradesh’s Chief Minister N Chandrababu Naidu’s has promised to develop Vishakapatnam into the state’s IT, industrial, tourism and financial hub.
India and the US have decided to set up a task force for jointly developing Vishakhapatnam, Allahabad and Ajmer as Smart Cities with a mandate of preparing the roadmap within three months. The task force comprising officials from the Centre, state governments and USTDA will be constituted for three cities.
Growth Drivers
The pharma and IT sectors in Vishakapatnam have been driving demand in and around the city. Madhurawada, located in the North-East of the city along NH-5, is already developed as an IT hub, with information technology firms having been allocated land in this area to develop and start their operations. The South-West part of Visakhapatnam is home to Jawaharlal Nehru Pharma City (JNPC), the only pharmaceutical SEZ in India. Industrial developments such as the steel and power plants are located towards the South.
The city’s two ports – Vizag Port and Gangavaram Port (the deepest port in India) – are on the South-East of the city.
Visakhapatnam is now emerging as a major healthcare hub, with Manipal Hospitals, Apollo Hospitals and Narayana Hrudayalaya planning to expand further in the city. It also has potential to develop on the film and tourism industry, given its scenic beauty.
Experts claim that the turning point for realty in the city has been the state bifurcation. Investments initially flowed into Vijayawada and the neighbouring areas as it was touted as the new capital. But prices there have reached a saturation level and now the focus is turning to Vishakapatnam because of recent developments – especially the `smart city’ announcement.
From an infrastructure perspective, the Vizag-Kakinada stretch is expected to receive a major boost under the ‘Sagar Mala’ initiative, which would witness a major turnaround for five ports, including two ports at Nakapalle and another one at Kakinada.
Vishakapatnam will soon be home to premier educational institutes of the country. The foundation stone for Indian Institute of Management (IIM) has been laid at Gambeeram village near the city. Birla Institute of Technology and Science, Pilani, (BITS), would be setting up its campus on over 40 acres in the district with an investment of around Rs 50 crore.
Smart Initiatives
Ironically, it was the unprecedented and massive devastation wrought by Cyclone Hudhud that has set Visakhapatnam on the path to be developed as one of the country’s most modern cities. Most of the city’s infrastructure will go underground. There will be no cables hanging, nor will there be poles. Power, cable TV and landline telephone lines will go underground. LPG cylinders will be replaced with piped gas. Only mobile towers will remain as surface communication infrastructure.
To add to this, the city’s greenery – most of which has been washed away by the cyclone — will triple. Strong buildings will come up to withstand 300 kmph gales.
To fast track the smart city initiative, the Union ministry of urban development has directed state government agencies such as the Greater Visakhapatnam Municipal Corporation (GVMC), Visakhapatnam Urban Development Authority (VUDA) and the district administration to develop a common website to feature all departments. At the same time, joint secretary from the Union urban development ministry, Praveen Prakash, has asked GVMC to identify free Wi-Fi zones within its limits to take the smart city initiative forward.
Price Appreciation
The buzz around these smart initiatives has set the tone for real estate market development in Vishakapatnam. Real estate prices around the city have increased 30-80 per cent over the last few weeks, driven by proposed projects like Smart City, metro rail, tourism hub, Signature Tower and a railway zone.
“Visakhapatnam is the second home investment location of choice for Hyderabad dwellers. Its USPs include relatively affordable property rates, decent appreciation potential, pleasant weather and the fact that it is a coastal region with many sea-facing property options available.
Bungalows are the preferred second home configuration in Vizag, and these can be picked up from anywhere between Rs. 45 lakh to Rs. 90 lakh. Plots for residential development are priced between Rs. 5 lakh to Rs. 1 crore,” says Sandip Patnaik, Managing Director – Hyderabad, JLL India.
In Bhogapuram area, which is about 40 km from the city, a well-developed layout was quoting Rs 6,000 per yard four months ago and now this has increased to Rs 10,000 per yard. Uppada, which is located close to a beach, has seen prices of plots increase from Rs 5,000-6,000 per square yard to Rs 10,000-12,000 in the last four-five months. Achutapuram surroundings, where major industries are expected to come up including the PCPIR (Petroleum Chemicals and Petrochemicals Investment Region), house sites in VUDA-approved layouts have increased 80 per cent.
Prices in Madhurawada, which is the most sough-after for residential purpose, have increased by Rs 2,000-3,000 per square yard over the last few weeks. According to brokers, the IT special economic zone located here and the recently inaugurated IT start-up village and the proposed IT Signature Tower have led to increased interest. In Dhorathota, prices in VUDA-approved layouts have increased by Rs 2,000-3,000 per square yard on the back of the proposed IIM in this area.
