Visakhapatnam Real Estate Soars on Technology Boom
Visakhapatnam’s real estate market has witnessed a sharp uptick in land and plot prices, following substantial investments in information technology, data centres, and digital infrastructure. Recent auctions conducted by the Visakhapatnam Metropolitan Region Development Authority (VMRDA) have recorded price escalations of up to 60 per cent, signalling renewed confidence among investors and prospective homeowners in the city’s growth trajectory.
The December 2025 auctions, covering both middle-income group (MIG) and general layouts, revealed heightened demand in key zones such as Palavalasa, Kapuluppada, and Rushikonda. Analysts attribute the surge primarily to investment announcements totalling nearly ₹2.5 lakh crore in the past year, aimed at creating IT parks, global data centres, and digital infrastructure hubs. These developments position Visakhapatnam as an emerging technology destination on India’s eastern coast, attracting long-term urban and economic interest. In Palavalasa MIG Layout, located near a proposed Google data centre, plots originally priced at ₹14,500 per square yard fetched bids as high as ₹23,700, reflecting a 64 per cent jump. Even the lowest accepted bid was ₹18,800 per square yard, marking a 29 per cent premium. Similarly, Kapuluppada, earmarked as a major IT hub hosting firms like TCS, Cognizant, Infosys, and Adani Data Centre, saw plots garnering bids 36–47 per cent above base rates. This surge illustrates a clear market response to technology-led infrastructure initiatives.
Urban planners highlight that IT investment is not the sole driver of price growth. Ancillary projects, including upscale hotels along the Bheemili–Bhogapuram corridor, the upcoming Bhogapuram International Airport slated for mid-2026, and the EduCity initiative linked to the new airport, have increased the strategic value of these locations. Experts note that VMRDA’s structured, litigation-free layouts—with proper internal roads, parks, and open spaces—enhance appeal for genuine end-users and institutional investors alike. Industry observers stress that public auction outcomes often guide pricing in private real estate developments. Current trends show private plots in Kapuluppada trading at ₹25,000–₹30,000 per square yard, whereas VMRDA auction rates have approached ₹35,000, indicating a benchmark-setting effect. The movement has also influenced peripheral areas, signalling broad-based urban expansion across the Visakhapatnam metropolitan region.
VMRDA officials emphasise that the authority’s approach balances urbanisation with accessibility, offering plots at competitive rates while ensuring essential civic infrastructure. The auctions not only reflect investor optimism but also provide a foundation for sustainable, technology-integrated urban growth, aligning with the city’s vision to emerge as a metropolitan and innovation hub over the next decade.
