Amaravathi, the New State Capital of Andhra Pradesh Has the Potential to Become a World Class City: Knight Frank India
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Amaravathi, the new state capital of Andhra Pradesh has the potential to become a world class city: Knight Frank India ~ The upcoming state capital will usher in a new era of real estate development within the Andhra Pradesh Capital Region and in the state of Andhra Pradesh ~ Hyderabad, August 03, 2016: Knight Frank India, the leading global property consultants today released an exhaustive report on the two upcoming state capitals--Amaravathi & Naya Raipur. The Report highlights the potential of both these Greenfield capital cities, and the ripple effect that these two cities will have on the real estate development in their surrounding areas. Amaravathi’s unique positioning and proposed developments: Strategic location of Amaravathi and the proposed infrastructure developments will ensure that Amaravathi becomes a world class city and influence zone. International consultants are involved in developing the capital city. Proximity to urban centres like Vijayawada and Guntur will ensure that the broader capital will provide a large talent pool and coupled with necessary infrastructure will provide a good option for companies to move into Andhra Pradesh, which is largely rural in character. Proposed physical infrastructure like metro rail and an international airport in Mangalagiri will boost the attractiveness of Amaravathi in general and the broader capital region in particular. Proposed high speed rail corridor with Chennai, Bengaluru and Hyderabad will improve connectivity to Amaravathi. Apart from road, rail network and BRTS a special 3 km long underwater tunnel in the River Krishna will connect Amaravathi to Vijayawada. Vijayawada and Guntur will be the two major urban centres that will benefit the most from Amaravathi coming up in a full-fledged manner as the new state capital. The strengths of these urban centres will be further harnessed. For example Vijayawada will be promoted as the commercial capital and Guntur will be promoted as the knowledge hub of the state. Capital values, in emerging micro markets, of Vijayawada are in the range of INR 1,800-7,000 per sq ft. Some of these micro markets are Vuyyuru, Auto Nagar, Kannuru and Poranki. In the upcoming micro markets of Guntur like Undavalli, Manglagiri and Gorantala capital values are between INR 2,200-4,500 per sq ft. The office rentals in upmarket localities of Vijayawada are around INR 60-70 per sq ft in micro markets like Benz Circle, Bandar Road. At the lower end of the spectrum however, rentals are between INR 10-15 per sqft in Patamata, Bhavanipuram and Maruthinagar. Guntur lacks quality office spaces and the average rentals in the office market are pegged between INR 30-50 per sq ft in Brodipet and Arundalpet.and INR 10-15 per sq ft in Lalpaet and Patnam Bazar. Apart from the real estate boom that is expected, there are huge investment commitments from domestic and international corporates, across industries like retail, energy, education and hospital cum medical institutes that will have a positive impact on Amaravthi’s real estate in particular and that of the capital region in general. Few examples of private sector companies who have expressed their desire to invest in Andhra Pradesh arecompanies like Suzlon Energy, Walmart, Pepsi, Colgate- Palmolive and Amity University. Commenting on the report, Dr. Samantak Das, Chief Economist and National Director-Research, Knight Frank India shared “The state government of Andhra Pradesh is trying its best to build the new capital city, but it will be a while before it can start functioning from this permanent seat of power in the new state. The proposed Greenfield capital city has already generated unprecedented interest in the surrounding areas and the two urban centres of Vijayawada and Guntur are the biggest gainers of this immense interest. Both these centres are expected to grow by leaps and bounds in the future. There are ample examples of private companies having expressed interest in setting up facilities in and around Amaravathi and we expect this momentum to build up further.” As per Mr. Vasudevan Iyer, Director, Hyderabad said, “Amaravathi is uniquely positioned and has been able to attract large scale investment due to astute positioning and its proximity to two major cities of Andhra Pradesh namely Vijayawada and Guntur. Also, the proposed infrastructure will provide the necessary fillip to Amaravathi to become a model state capital of the 21st century. Hyderabad, which had taken a backseat to some extent before the bifurcation of the state, is set to grow stronger in future as it has the necessary infrastructure, talent pool and conducive business environment to remain attractive for companies, especially in the medium to long term. While Amaravathi will come up as a potential power centre, Hyderabad will continue to enjoy its growth curve”. About Knight Frank Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank has more than 13,000 people operating from over 400 offices across 58 countries. These figures include Newmark Grubb Knight Frank in the Americas, and Douglas Elliman Fine Homes in the USA. The Group advises clients ranging from individual owners and buyers to major developers, investors and corporate tenants. In India, Knight Frank is headquartered in Mumbai and has more than 1,000 experts across Bengaluru, Delhi NCR, Pune, Hyderabad, Chennai, Kolkata and Ahmedabad. Backed by strong research and analytics, our experts offer a comprehensive range of real estate services across advisory, valuation and consulting, transactions (residential, commercial, retail, hospitality, land & capitals), facilities management and project management. For more information, visit http://www.knightfrank.co.in/ For futher information please contact: Abanti Banik (Knight Frank) Manager – PR & Branding, South +91 9972998403 [email protected] .