India's Emerging Real Estate Hotspots: Vizag and Tirupati Lead the Way
Vizag and Tirupati have been identified as two of the 17 high-potential real estate hotspots in India, with Visakhapatnam expected to experience accelerated growth across various asset classes.
Real EstateVisakhapatnamTirupatiIndiaInfrastructure DevelopmentReal Estate NewsJun 22, 2024
For Tirupati, the impact segments will be residential, retail, hospitality, and senior living. According to Colliers India's latest report, titled 'Equitable Growth and Emerging Real Estate Hotspots', the two cities were evaluated along with over 100 emerging cities to determine their real estate attractiveness and growth potential over the next 5-6 years.
The analysis considered social, economic, financial, and real estate-specific parameters. Industry insiders said that infrastructure growth remains a key catalyst for real estate development. Enhanced connectivity and increased manufacturing and industrial activity, driven by national infrastructure projects like the PM Gati Shakti initiative and national infrastructure pipeline, will lead to growth centers expanding beyond tier I cities.
Smaller towns are expected to benefit significantly, with increased real estate activity in warehousing and residential segments. KSRK Raju, Chairman of CREDAI Visakhapatnam chapter, said that they are seeing a positive outlook for Visakhapatnam in terms of real estate growth in the coming years.
'During our recent interactions with the newly elected representatives of Visakhapatnam, we explained how attracting a few more companies and augmenting infrastructure would boost the sector. We received a highly positive response from them,' said KSRK Raju.
After the previous government announced their plans to make Vizag the executive capital in 2019, there was an initial surge in real estate prices and business volumes in the first year in Visakhapatnam. However, as the capital plans were delayed, the market plateaued over the last two to three years.
The real estate community of the city is now expecting a revival in the coming days with projects like the Bhogapuram airport shaping up. Creating better connectivity between different areas of the city, such as Bhogapuram and Atchuthapuram, is one of the requests put forth by the real estate developers in the city to the government.
They expect that NRIs, who have stayed away due to political uncertainties in the last few years, will invest again in the properties of Visakhapatnam. The city expanding on all sides, including Pendurthi-Sabbavaram-Kothavalasa, Atchuthapuram-Anakapalli, and Anandapuram-Tagarapuvalasa-Bhogapuram will be an added advantage sector, with each of these areas having a differentiated outlook.
Information Colliers India is a leading real estate consulting firm that provides expert advice to real estate investors, developers, and occupiers.
CREDAI (Confederation of Real Estate Developers' Associations of India) is a national-level apex body of real estate developers in India, with its presence in over 200 cities and towns across the country.
Frequently Asked Questions
What are the key factors driving real estate growth in Visakhapatnam?
Infrastructure growth, enhanced connectivity, and increased manufacturing and industrial activity are the key factors driving real estate growth in Visakhapatnam.
Which are the impact segments for Tirupati?
The impact segments for Tirupati are residential, retail, hospitality, and senior living.
What is the significance of the Bhogapuram airport project for Visakhapatnam's real estate market?
The Bhogapuram airport project is expected to revive the real estate market in Visakhapatnam, which had plateaued over the last two to three years due to delayed capital plans.
What are the real estate developers in Visakhapatnam demanding from the government?
The real estate developers in Visakhapatnam are demanding better connectivity between different areas of the city, such as Bhogapuram and Atchuthapuram.
What is the outlook for Visakhapatnam's real estate market in the coming years?
Visakhapatnam's real estate market is expected to experience accelerated growth across various asset classes, including residential, warehousing, retail, and data centres, in the coming years.
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