News & Views on Indian Real Estate

Friday, June 13, 2008

Visakhapatnam - Upcoming Real Estate Destination

In Indian real estate today, the only constant is change. Hot destinations of the last year are not assuredly the best options this year, and the next year brings its unique set of emerging investment destinations with it. Forget about the survival of the fittest. When it comes to real estate, the thumb-rule is simple — survival beyond saturation. The idea is that once a tier-one city’s emergency light goes red (indicating overload), start spreading into nearby tier-two cities. While north India has already witnessed this phenomenon, it is now the south’s turn to spring up architectural delights in the shape of housing projects which promise an entire city within a city. Topping the list of development and for investment, say experts, are Visakhapatnam (Vizag), Kochi, Mysore and Coimbatore. Visakhapatnam, one of the fast-emerging tier III cities of India is expected to be one of the next growth drivers over the decade, according to Jones Lang LaSalle Meghraj (JLLM). The city is witnessing fast growth in the residential sector. Large residential projects are being developed in areas such as Madhurawada and Rishikonda. These include KSR-Jurong Sunny Isles comprising 54 villas and another integrated township project with villas and apartments in Yendana. On the retail front, there are no operational malls in the city currently, but there are six malls under various stages of construction expected to be operational by 2010.

Rajani said...

Due to hike in rate of realty in metro cities and tier I cities, tier II and tier III cities are getting more attention.

Anonymous said...

The global economic meltdown has taken its toll on almost all the industries across the globe. Developing countries like India badly suffered in the wake of inflation and recession. Business, that was coming in from the developed countries particularly in the field of IT dropped down drastically triggering off a series of reactions in related industries. Along with business travelers, the number of leisure tourists also dwindled partly because of the sagging economy and partly because of the horrifying attacks of 26/11 in Mumbai. Places of cultural and historical importance like Vishakhapatnam that tourists used to frequent, saw a crucial drop in the number of leisure travelers recently and the occupancy rate of the hotels also went down. Even the start up hotels in Vishakhapatnam, in spite of lowering their rates are witnessing a low occupancy rate. The occupancy rate of the budget hotels in Vishakhapatnam as with the rest of the country has seen as high as a 30% fall in the occupancy rates. Known as the “Jewel of the East Coast” Vishakhapatnam is a very important industrial hub apart from being a tourist destination. In addition, it is very well connected to the capital of Andhra Pradesh, Hyderabad which is one of fastest growing IT hubs of the country. It is only natural therefore that there are quite a many top class business hotels in Vishakhapatnam. However, the current economic condition has changed the complete scenario and has affected the hospitality industry also.

Anonymous said...

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Plz share more about India real estate growth in this ression