Why Investment In Vijayawada Real Estate Is A Good Idea?

Ever since the formation of the new state of Telangana, fortunes of Vijayawada have changed for the better. The government of Andhra Pradesh announced that post Hyderabad, the new capital will be located close to Vijayawada, which has led to a mad rush in investments and a steep increase in the property prices in the city. Such has been the rise that in the last year alone, Vijaywada real estate prices have gone up by as much as 25%.

Impressive Property Prices 

The prices have shot up so much they are actually comparable to property prices in California. If we contrast the prices, a stretch in Livemore in California will fetch around Rs. 5.5 crore; the same stretch beside Bandar Road, which is on the outskirts of Vijayawada, will cost Rs 24 crore and over Rs 20 crore at places close to Gannavaram airport, and in excess of Rs 15 crore near Mangalagiri. The figures speak for themselves.

Rising NRI Investment in Vijayawada

A big reason for the increase in prices has been the involvement of Non-Resident Indians (NRI), as well as big investments from rich local financiers and owners of transport companies, and some malpractices of real estate companies that function under the jurisdiction of Vijayawada-Guntur-Mangalargiri-Tenali Urban Development Authority. Due to the recent slowdown and high inflation, many real estate markets have been dull and seen fewer investments. However, NRI investments saw an upward trend in Vijayawada real estate, amounting to Rs 125 crore every month. Though investments by NRIs have gradually decreased, it is still about Rs 40 crore each month. NRIs are buying of farm lands and almost 600 acres have been bought by NRIs around Vijayawada.

Rising Demand of Land in Vijaywada 

The contributions of NRIs, along with investments of local financiers and transport companies, have pushed the prices of real estate in Vijayawada by a huge 27% in just a year. Buying an acre of land for less than Rs 10 crore has become difficult in the city. Prices have almost doubled in the last fiscal year by up to Rs 1.3 lakh per sq. yard. Plots in prime areas of Guntur and Vijayawada are being sold like hot cakes, with investment pegged at Rs 12 lakh for a 200-yard plot. Meanwhile, plots along the Vijayawada-Mangalagiri-Guntur highway are available in the range of Rs 50, 000 to Rs 1.50 lakh. Properties located on the outskirts of Vijayawada are priced in the range of Rs 2,500-3,500 per sq. ft.

Government Initiatives to Push Vijayawada Real Estate

This sudden surge in prices has led the government to intervene, as escalating prices can hamper its plan to effectively build Vijayawada as a capital city. Steps such as banning of converting agriculture land to villas in Vijawayada and naming hundreds of illegal layouts have been undertaken in some districts. To avoid unscrupulous investors from causing inconvenience, the Andhra Pradesh government has made it mandatory for companies to register their plots beforehand, and has put in place regulations making it essential for buyers to be present at the time of registration. The current situation is reminiscent of real estate scenario in Hyderabad in the early 2000s when many people became millionaires overnight.  That being said, it is a golden period for investors who can make easy millions by investing in Vijayawada real estate projects.