Post bifurcation of Andhra Pradesh, real estate business has zoomed in the coastal Andhra region. East-West Godavaris', Krishna, Guntur districts have witnessed a never before increase of real estate business but one major city and district is behind in this. It is Visakhapatnam.

Ironically the realty in Vizag, Vizianagaram and Srikakulam districts has dropped significantly even though Andhra Pradesh chief minister Chandrababu Naidu has promised to convert Vizag into an IT hub. Many people thought Vizag could be the capital city of Andhra Pradesh which would have encouraged the realty but the government changed its mind and is stressing on Krishna – Guntur region for capital and eventually developers as well as public were not keen on Vizag.

There are hundreds of layouts on Visakhapatnam-Srikakulam and Visakhapatnam-Vizianagaram routes and currently the realtors are focusing on disposing the layouts they have in hand. There has been a drop in the transaction last month but the registrations in Vizag have gone up by 25 to 30 percent. The  prices have been constant despite increase in registrations however the realtors are also expecting an increase of Rs 200- Rs 300 per square feet which could hike the business by a bit.

Revenue Collections

The revenue collections of Vizag neighbour districts, Srikakulam and Vizianagaram have not been that encouraging as expectations did not meet the estimates. According to the officials the revenue of Vizianagaram district is Rs. 75.54 crore when compared to the target of Rs. 151.82 crore in last fiscal, while in Srikakulam, the collections stood at Rs. 46.88 crore against the target of Rs. 93.04 crore. Nevertheless,  the developers are in a ray of hope about the growth.

The Revenue department kept a target of Rs.151.82 crore for Vizianagaram and Rs.102.48 core for Srikakulam district for the fiscal year 2014-15. If the real estate business really picks up in vital areas like Vizag, the Andhra Pradesh government can expect some income.

(AW: Vamshi)