Andhra Pradesh

Andhra Pradesh is another southern state of India and it is located at the coast of Bay of Bengal. Hyderabad is the capital city of this state. This city is the second largest IT hub of India next after Bangalore. Although, Andhra Pradesh is basically an agricultural state, but from last one and half decade, it has drastically improved in the industrial field. The other important cities and towns of this state are Secendrabad, Guntur, Karimnagar, Adilabad, Nellore, Vijaywada, Visakhapatnam etc.

Real Estate Scenario
Presently, the IT revolution is sweeping India and Andhra Pradesh is one of a shining stars among other states including Karnataka. The reform process of industry was incepted in Andhra Pradesh in the year 1990, and since then bulk drug industries, IT industries, engineering industries, leather goods, textile, agro-processing and many other industries have been set-up in different parts of this state. Along with this enormous industrialization process, the industrial, commercial and residential real estate have been flourishing simultaneously in this state. Residential and commercial property is receiving a thrust from the Apparel Park, Export Promotion Industrial Park, Growth Center, Bobbilli, Visakhapatnam Export Processing Zone etc. The value of FDI in real estate sector in Andhra Pradesh was 4,412.8 crore in September 2006. Almost all the major cities in Andhra Pradesh are well connected to different parts of India through all the three means, i.e. air ways, rail ways and road ways. This also facilitates the investors to come and invest in real estate sector of this state. All the three segments of real estate are passing through the booming stage in Andhra Pradesh.

The entire real estate development process of Andhra Pradesh is divided into three different segments. These are:

Residential Real Estate
The residential property of some selective big cities in Andhra Pradesh has increased by 7-8 folds with in last couple of years. The demand of residential spaces is more than the supply. In cities like Hyderabad, Secunderabad, Karnool etc, the people are facing real scarcity of residential space. Different real estate players are competing with one another in order to provide better quality of space to the residents in the urban areas. To induce the residential real estate of the state, the state government has also approved 25 new residential projects in 2007 for urban development. The total cost of all these projects is Rs. 908.10 crore. The towns included in these projects are Visakhapatnam, Hyderabad and Vijaywada. Another 23 projects have also been approved for developing small and medium scale towns in different areas of Andhra Pradesh.

Role of NRIs in Real Estate
Many NRIs have started to show their interest in buying residential spaces in different towns of Andhra Pradesh. This tendency has zoomed the property cost of residential areas in these respective cities. Few selective NRI groups have entered into the collaborative projects with the state government to develop some specific residential town ships and commercial estates in the suburbs of Hyderabad. Gradually, the passion of investing in the real estate industry has been increasing more and more among a large number of NRIs.

Commercial Real Estate
The Hyderabad city has become the silicon city of India. Many IT players are opening their corporate head offices either in Hyderabad or Secundrabad. The head office of Satyam technology is the burning example of this statement, the head office of which is located in Secundrabad. Different tourism spots have also been opening in different places in Andhra Pradesh with the cooperation of Andhra Pradesh Tourism Department. The prevailing environmental conditions of Andhra Pradesh are favorable for establishing new businesses and this lucrative fact is drawing the attention of different MNCs to open their corporate offices, showrooms, outlets etc in this state. This signifies the flourishing commercial real estate of Andhra Pradesh. Different Growth Centers and Export Processing Zones, which have been established in Andhra Pradesh, are hiking the cost of the commercial spaces of this state. From Singapore, a consortium of real estate developers from Jurong International and another Australian developer, Springfield land will invest their fund for developing a Science City between Ammadiguda in Anantpur and Odicheruvu. The expected space which will be required for this project is 65,000 acres. This project will also provide employment of 2.5 million people.

Industrial Real Estate
The infrastructural undertakings which have been either approved by the government or waiting for desire approval, have brought a new paradigm in the industrial real estate of this state. In Samshabad, a new ferry project is under construction having the capacity of 40 million passengers per annum. Different type of infrastructural projects which are in different stages of completion, have started a new chapter of industrial real estate of Andhra Pradesh. These undertakings are pulling huge amount of investments from different sources and make the entire investment structure of real estate in a sound position. In addition of these, other industries like small scale industries, biotechnology, heavy scale industries are other pulling factors of foreign as well as domestic investments in the real estate sector of this state. The concept of new "millennium" of the Andhra government in the tourism field is another encouraging factor for industrial real estate.

The Future Trend of Real Estate
The future trend of Andra Pradesh real estate is very good and there is a large potential of future growth in the real estate industry of this state. To catch more and more investment, the state government has announced to make several Special Economic Zones (SEZs) with in the state. The existing SEZs are also the big factors for future boom in the real estate sector. Some of the important proposed projects in real estate industry in Andhra Pradesh are as follows:

• West Godavari District - Whitefield Paper Mills in Tallapudi Mandal
• Krishna District - APIIC in Kesarapall.
• Nellore District - Apache SEZ in Mandal Tada.
• Madhapur - K.Raheja IT Park, Satyam Computers.
• Visakhapatnam - Divi's Laboratories in Chippada, Hetro Infrastructure in Narsapuram, APIIC in Madhurawada.
• FAB City SPV, Srinagar.
• Another Construction company, Salarpuria is constructing a retail Market City having a area of 1.4 sq ft. in Hyderabad.