Vijayawada, new Andhra Pradesh capital, set to witness real estate boom

[Editor: The Real estate prices are set to skyrocket around Vijayawada following this announcement by Andhra Pradesh government. PVP Ventures Ltd (Rs.7.70) could see a sudden SPURT in its share price.The company possessed a 70-acre land parcel - popularly known as Binny Mills - in the heart of Chennai (Just 3.5 kms from Chennai central railway station)--this project will be fast tracked. The Company also owns 135 acres of land in Shamshabad, Hyderabad, through its subsidiary and affiliate companies. The company targets to line up projects aggregating to USD One billion (~Rs.6100 Cr) in the ensuing five years across South India. Its strategic partnership with Arihant, Unitech in real estate and urban infrastructure areas gives the necessary cutting-edge advantage. The Company has zero external debt--a big asset in a cash intensive business and cash starved-economy. According to a Tehelka report, Potluri purchased stake in Jagan's businesses and was later awarded land by the Andhra Pradesh government. Potluri, reportedly, bought 13,88,888 Jagati shares held through PVP Business Ventures Pvt. Ltd and was allotted disputed land in Nadergul, Ranga Reddy district. Potluri Vara Prasad, the CMD, hails from Vijayawada, Andhra Pradesh and is the co-founder of the Engineering school, Prasad V. Potluri Siddhartha Institute of Technology. He owns, PVP Energy, PVP Cinema and PVP Foundation under PVP Ventures] 

Photo: NDTV Ltd

September 4, 2014: Real estate prices are set to skyrocket around Vijayawada following announcement by Chief Minister N Chandrababu Naidu-led Andhra Pradesh government that the new capital would be located "near" the second largest city of the residuary state.

The land prices started shooting up in the region after media reports indicated that the area is "being considered" for locating the new seat of power of Andhra Pradesh which lost Hyderabad to newly-formed Telangana State.

A Siva Reddy, Vijayawada chapter President of Confederation of Real Estate Developer Associations of India, said property prices within 25km radius of the coastal city in Krishna district have doubled during the past few months.

"Ever since the division of State was announced, land prices started shooting up between Vijayawada and Guntur. Prior to the announcement, the prices used to be around Rs 1 crore per acre and now they have gone up to Rs 4 crore. Rates are expected to rise further," Reddy said.

The rush to buy land in and around Vijayawada had gone to such an extent the Government had to intervene and issue orders banning conversion of agriculture land into residential plots in part of Krishna District, said M Ramakrishna, Proprietor of Sri Gayatri Real Estates.

"With today's announcement, the land prices are set to skyrocket as most of the realty sales had been put on hold pending clarity from the Government on capital city. Now that the air has been clear, Vijayawada will witness real estate boom," Ramakrishna said.

Barring some small residential plots, no major land dealings have taken place "officially" for the past few months, he added.

However, the task of acquiring adequate land for building capital may not be easy for the government given the prices prevailing there, a senior official said.

There is no clarity yet on the quantum of government land available in the area and also the amount of real estate that needs to be acquired to build the necessary infrastructure, he added.

Courtesy: The Financial Express