VISAKHAPATNAM: Land prices in and around Anandapuram have increased following the decision of the state government to locate the Indian Institute of Management-Visakhapatnam (IIM-V) at Gambheeram.
According to realty sources, residential plots in Anandapuram, which is just 2 km away from Gambheeram, are now sold for Rs 16,000 a sq yard, while earlier the price was Rs 7500 per sq yard.
Besides the IIM-V, central institutes including the Indian Institute of Packaging (IIP) have been planned in the region. Land rates have also increased in Madhurawada from Rs 20,000 per sq yard six months ago to Rs 40,000 now.
Speaking to TOI, realtor Sunil Reddy said, "There has been a huge demand for plots in Anandapuram. As of now in one of our ventures in Anandapuram is booked over 60 per cent."
Sources said that many of the projects are yet to be launched formally, but people are booking plots in advance even before the basic facilities such as roads, sewage and electricity lines are provided.
Another realtor P Narayana of Dwarakanagar said real estate dealers are now finding it difficult to take up ventures in Anandapuram due to high land rates. "Earlier, an acre was sold for Rs 80 lakh. Now it commands a price of Rs 1.5 crore. At Anandapuram junction an acre costs Rs 2.50 crore." He said prices near Madhurawada have also shot up to around Rs 40,000 per square yard near the highway.
"It's impossible to purchase a plot and build a house in the city outskirts," said PS Lokesh, who is planning to buy a plot. "For about 100 square yards, we will have to spend around Rs 15-16 lakh only on the purchase of land. Even then with so many development projects coming up here, we think that it can be a good investment option. The price is only going to increase in the coming days," he said.