With the capital buzz generating a lot of heat, flat owners in the city are expecting a steep rise in the rental income.
Till recently, it was a problem of plenty for them. Due to boom in the construction of apartments, several flats, including those in the gated communities, were lying idle. The water problem during summer further complicated the problem, and many flat owners found it difficult to get tenants.
With the market experiencing a prolonged slump following economic slowdown, the realtors stayed away from taking up new ventures. But those already owning ready-to-occupy flats were at their wits’ end as most of them had been lying idle.
“With the proposal to set up the Executive capital in the city, somewhere near the Bhimili area, the sector is witnessing a boom, particularly in the areas such as Madhurawada, Kommadi, Anandapuram and Tagarapuvalasa,” CREDAI city chapter president B. Srinivas told The Hindu.
Speculation is rife that the process to shift the Secretariat and other important offices to Visakhapatnam will commence after the Assembly session on January 20.
The Millennium Towers, the Incubation Tower (erstwhile Startup Village) and the vacant buildings of IT companies at Rushikonda will be used to locate the HoD and other offices, government sources say.
“Amid hectic speculation, sites have unofficially been identified for allotment of plots to the Secretariat and other government employees at Mudasarlova, Simhachalam, Madhurawada and Anandapuram. This will lead to a spurt in house rents,” says Laxman Reddy, a builder who has taken up several middle income group (MIG) apartment ventures.
Flats vacant
There are about 1,500 to 2,000 vacant flats at Rushikonda, Yendada, Madhurawada and Kommadi, which will be close to the Secretariat and other offices if the Executive capital is established in the city.
Besides the VMRDA row houses and Harita apartments, many gated communities have several ready-to-occupy flats.
“Negotiations have already started, albeit unofficially, to book flats in bulk on lease. Owners of flats at the Lakeview Layout in Madhurawada, who found it difficult to get ₹10,000 per month for 3BHK, are now expecting ₹25,000 per month,” says a flat owner.
“Incidentally, the surge in demand for flats for employees and others after the Executive capital decision is taken may lead to shortage of housing for the IT employees in the vicinity,” says Rushikonda IT Park Association vice-president O. Naresh Kumar.
