Indian Real Estate on an
Update & Forecast for 2018
Indian real estate has witnessed its toughest phase over the last 18 months, due to the after-effects of game changing and historic initiatives like :
- Demonetization of Nov 2016
- Implementation of RERA Act (Real Estate Regulatory Authority Act); and
- Transition to GST (Goods & Service Tax) in July this year.
As a result, many investors and even end-users went into a “wait-and-watch” mode – leading to a very cautious investor sentiment across India.
But contrary to popular expectations that real estate prices will drop drastically, prices have only stagnated in the worst case and in a few emerging markets like Hyderabad – prices have infact gone up by around 8% per annum – taking everyone by surprise, except for the outskirts where agricultural lands are the obvious victims of demonetisation.
Even the S&P BSE Realty Index (the benchmark stock market index to gauge the entire performance & growth of the entire real estate industry) is up by 109% year on year (i.e. since January 2017).
This proves that in mature & established markets like Bangalore, Hyderabad, etc., real estate prices are neither artificially high nor are they inflated by “black money” and are infact based on a healthy supply-demand gap that is only growing on a daily basis – due to the continuous influx of migrant population in such cities.
Very few Bad Apples!
Of course, there are certain markets like Gurgaon, Noida, etc that have an excess supply and hence are seeing slower absorption and stagnation of prices.
Now that the initial panic and confusion of these initiatives have subsided, India is witnessing huge foreign inflow of investment from all over the world due to renewed confidence in the government and among other things, its tax regime.
The sector has now become :
with all information available publicly including project ownership, sanctions, timelines, progress and more.
by weeding out casual builders and regulating development, funding and usage of funds
with many end users and investors returning to the market including FDI funds who are bullish on India
And now, Amaravati is set to lead the table in terms of the fastest growing / appreciating market / prices in Indian real estate – more on this later.
From here on, we expect a consistent upward movement of prices – and mostly, without the abrupt hikes / peaks & drops like before – which was due to uneven infrastructure development and an unregulated realty market so far.
Andhra Pradesh & Amaravati
Shocking developments on ground!
I recently attended the Amaravati Deep Dive @ Vijayawada – a 2 day brainstorming workshop organised by CRDA (Capital Region Development Authority) to showcase the current status and updates / progress report of on-the-ground developments in and around Amaravati.
These developments have further reinforced my own belief in Amaravati’s potential.
I was shocked myself to learn of such rapid developments, some of which I too was unaware of despite being heavily entrenched in this ecosystem and I am sure you will find the below to be surprising :
Capital Designs Finalized & Construction to begin Shortly
The govt has finalized the designs for the Assembly, High Court and other important buildings and work will begin shortly on the construction of Government Complex, spread over 1350 acres, with an aim to complete majority of the work by 2019, if not fully. – The Singapore consortium – Ascendas Sembcorp Singbridge has already been appointed as the master developer and hence timely completion can be taken for granted!
- The massive road network of Amaravati is progressing rapidly with the Minister for Urban Development physically reviewing the works every week.
- The complete road network spans 1692 kms with BRTS / Metro lanes and underground infrastructure like electricity, ICT grids, fiber optics, service ducts, etc.
- The seed access road is almost 80% complete and the pace of work has shocked and impressed even the most pessimistic non-believers!
- Some of the major road network grids are now visible on Google Maps!
AP is now a
Zero Power Deficit State
- Within 100 days of government, Andhra Pradesh has achieved the “zero power cuts” milestone – Power Surplus State (Zero Deficit) – making it one of the very few states in India to achieve 24×7 power supply with ZERO deficit.
- The World Bank has ranked the Sunrise State of Andhra Pradesh as No. 1 in the area of “Energy Efficiency Implementation Readiness” – which will be a great boon to the state in getting global recognition for further expediting the energy efficiency programmes on a fast track mode.
- AP has also become India’s largest producer of Solar Energy ahead of Rajasthan and Tamil Nadu !
#PresidentKovind inaugurates tech projects of Andhra Pradesh govt — Andhra Pradesh Fibregrid; Surveillance and Drone Project; Free Space Optical Communication system; says the state is a leading innovator in technology adoption pic.twitter.com/n5tRqU6sWP— President of India (@rashtrapatibhvn) December 27, 2017
Real Time Electronic Governance
AP govt’s excellent deployment of the Real Time Governance module and continuous monitoring of infrastructure, energy, welfare schemes, pensions, etc has received praises from all over the country including the President of India, who visited the RTG centre, posted 24 tweets describing the functioning of RTG system. Other states are now trying to emulate this model.
AP Fiber Grid
23,800 Kilometers Long!
- Inaugurated by President of India recently, this 1st of its kind 23,800 kilometer long fiber optic cable network connects about 1.3 crore households, 50,000 schools, 10,000 govt offices and 5,000 public health centres across all 13 districts of AP.
- Will provide television (350+ channels), telephone (rental free) and internet (15 to 100 Mbps) – through a SINGLE CABLE to over 1.3 crore households & businesses at a monthly affordable price of Rs 149 and Rs 999 respectively.
- It will also serve as the backbone for big data & analytics driven governance + state-wide surveillance using more than 20,000 CCTV cameras connected to 16 integrated district command control and data centres.
- This grid will also power digital classrooms in over 4,000 government schools and offer telemedicine services at over 6,000 public health centres.
- Placed end to end, this cable network could stretch from Amaravati to New York TWICE! – making it the largest greenfield optical fiber network in India.
to be complete by end of 2018
Work is progressing rapidly on the construction of 3820 multi storied apartments and 194 bungalows for the govt officials. The country’s leading contractors – L&T, Shapoorji Pallonji and NCC – have been awarded these contracts and due to the advanced “shear wall technology” being used, all towers are set to be ready by end of 2018.
Asia’s Largest Uptime Institute TIER IV Certified Data Center
- With a 5000 rack capacity, this is one of the largest data centers in Asia, with the highest (Tier IV) certification from the Uptime Institute.
- It is the 1st Software Defined Strategic Data Center (SDDC) in the world and uses open stack virtualization framework to deliver the best-in-class computing, storage, and networking experience.
- It is being expanded further with Rs.550 crores additional investment and will provide employment to 2,000 people.
- Some of its largest customers include Power Grid, IRCTC, Mahindra Finance, Deutsche Bank, SAR Group, Yatra.com, UNIBIC, Snap Bizz, Konsole Group, Acute and Net Spider.
Rs.3000 Crores & 200 Acres
A staggering 4 lakh sft was constructed in just 5 months and few courses have already begun and 200 students are already staying full time on campus.
SRM is the 1st Private University of Amaravati and is investing Rs.3000 crores / $450 Million over the next 10 years to offer classes to 10,000 students in collaboration with with MIT & Berkeley.
The university is establishing joint research labs with Rolls Royce, Bosch & other leading firms across the world, making it one of the few institutions in India with such premier tie-ups.
HCL comes to Amaravati
Twin Campuses across 50 Acres, with 7500 Seats
- India’s fourth largest IT services company is setting up one of its largest development and training centers in the world on 50 acres in Amaravati, at an estimated cost of ₹750 crore and will provide employment to over 7500 people once complete.
- There will be 2 campuses – one near Gannavaram Airport and one in Amaravati – both of which will collectively employ close to 7500 people once complete by end of 2019.
- Many other companies are following suit and are in various stages of setting up their operations in Amaravati which has a very big advantage, which is its geographical proximity to Vijayawada and Guntur which have a vast pool of talented youth (especially in the engineering streams) and are well-connected to big cities.
Just 2km from Secretariat
To aggressively show its business friendly approach, the govt, after due process and diligence, gave all clearances and approvals in 12 hours from the time they submitted their plans!
With a massive 3 lakh Sft constructed in a record breaking 6 months, VIT University became the 1st private university to commence classes in the state of Andhra Pradesh (classes started on 26th July 2017, with 670 students have joined the 1st batch).
IUIH Medicity Amaravati
One of the world’s largest healthcare projects with an investment of Rs. 1,600 crore in Amaravati
- The Indo UK Institute of Health (IUIH) – one of the world’s largest healthcare projects – in association with King’s College Hospital, London, is setting up a MediCity in Amaravati with an investment outlay of Rs 1,600 crore.
- They target to have 250 bed hospital and diagnostic centre operational by 2020 and 1000 beds by 2022 + a medical college.
- This will also become the manufacturing site for medical equipment and implants in line with Prime Minister Narendra Modi’s Make in India programme.
Leading regional Telugu dailies in Andhra Pradesh and Telangana - Skyline, Andhra Jyothi, Andhra Prabha, Praja Shakti - have reported on IUIH beginning the construction of its Medicity in Amaravati, the new capital of Andhra Pradesh, soon pic.twitter.com/3qP0GRv1w2— IUIH (@Indo_UK_Health) December 29, 2017
AP to get India’s 1st Hyperloop!
Hyperloop Transportation Technologies (HTT), an American firm developing ultra-high-speed transportation system based on Hyperloop concept, has signed an MoU with Andhra Pradesh to conduct feasibility studies to build this Hyperloop network across various routes in AP.
A test route between the city centres of Vijayawada and Amaravati may be built in the future, which will reduce the travel time from 1 hour to just 6 minutes!
The feasibility study for this project concluded this to be “feasible” as well as “profitable”.
When this does go through, it will be a tremendous boost to Amaravati’s image as the frontier city in future technology!
Google to bring high-speed wireless internet to AP
15 Million Households to get Wireless Internet
- AP will become India’s 1st state to deploy Google’s FSOC (Free Space Optical Communications) technology that will provide high-speed wireless internet to millions of people WITHOUT LAYING A CABLE.
- This is especially for rural areas with a low population density where a wired connection is not feasible due to low subscriber numbers.
- Using this, AP wants to double the total number of internet subscribers to 30 million by end of 2019.
- Fast internet access has proven to be a key factor for rapid development of emerging countries like India and hence this will go a long way in strengthening AP’s potential as India’s key investment hubs.
Latest Updates of 2018
.Launched & In Action.
TiE launches Amaravati Chapter to Boost Startup Ecosystem
To help accelerate the growth of startup ecosystem in Amaravati, TiE Global (The Indus Entrepreneurs) – established its Amaravati chapter in Jan 2018, complementing govt’s initiatives to establish incubators & accelerators for Amaravati.
Unlike other chapters which focus more on IT/ITES, TiE Amaravati will focus more on Agriculture & Food Processing, Fintech, Pharma/Life Sciences, Manufacturing and Women Entrepreneurship.
TiE Amaravati will also work closely with educational institutions to introduce entrepreneurship based courses in the curriculum, assist in setting up E-cells and incubators to inculcate the entrepreneurial aspirations in young minds.
Polavaram project inching closer to reality
Andhra farmers elated after seeing rapid progress of works
- Witnessing the rapid progress of works on this historic project, people of Andhra have realised the importance of TDP continuing to be in power for another term, to ensure timely & successfully completion of the Polavaram project.
- People – especially at the grass root level – are hence ready to extend their support in the upcoming elections in 2019 to ensure a 2nd term for the ruling party.
- The central govt has also reiterated that there is no shortage of funds for this prestigious national project and that it is also strongly committed to finishing this project as per schedule.
.Work Beginning Soon.
L&T to construct 1st Iconic Bridge across Krishna River
Infrastructure giant L&T has been awarded the contract to construct the 1st of 5 iconic bridges across the Krishna River at Amaravati.
This 3.2 km, six-lane iconic bridge at Ibrahimpatnam will connect Pavitra Sangamam in Vijayawada and N10 Road in Amaravati.
To help the govt show visible development before the upcoming elections, L&T has committed to finishing majority work in the next 18 months and hence we can expect rapid progress on the same.
Amazon opens 1st fulfilment centre of AP in Amaravati / Vijayawada
In what will be a big boost to both employment and local suppliers of packaging material, logistics support and security services, the world’s largest e-commerce player Amazon opened its 50th fulfilment centre of India, in Vijayawada – making it the 1st of its kind in Andhra Pradesh.
CRDA allots lands to star hotels in Amaravati
To cater to the rapidly growing number of business visitors to the new capital region, the govt has allotted 24 acres for the development of 4-star & 5-star hotels in Amaravati.
In a short span of 3 years from today (a deadline set by the govt), Novotel, Hilton Double Tree, Crown Plaza and Hilton will develop 4 star properties and GRT, Holiday Inn, Daspalla & Green Park will develop 3 star properties.
Amaravati will be built using construction material transported on the Krishna River
Muktyala / Jaggayyapeta to Amaravati / Vijayawada (National Waterway No.4)
In what is the 1st of its kind in India, the Inland Waterways Authority of India (IWAI) has begun dredging a 82 kms segment of Krishna river between Muktyala & Amaravati to facilitate transportation of construction material for Amaravati by ships from Muktyala – a major hub for cement & other important construction material.
3 Cargo terminals (at Muktyala, Ibrahimpatnam & Harishchandrapuram) + 4 Passenger terminals (at Durga Ghat, Bhavani Island, Vedadri and Amaravati) will be built by June 2019 – and help tremendously cut down road traffic + transportation cost & time by over 50%.
Besides serving the construction purposes, this waterway will eventually become a commercial route for shipping industry + also attract tourists / promote tourism once the government introduces cruise ships to pilgrim centres like Durga temple, Ibrahimpatnam, Vedadri and Muktyala.
This waterway will further extend upto Kakinada (Eluru canal & Kakinada canal) and Rajahmundry to Polavaram stretch of Godavari in 3 phases over next few years.
Dredging of the Krishna River
HUDCO & multiple banks agree to fund Rs.12,000 Crores to build Amaravati
This is the 1st time in the country that any financial institution has agreed to support such a massive scale of construction.
This has drastically reduced the cash crunch felt so far and the govt is now focussing on rapid execution of works, instead of worrying about cash flows – with an aim to complete majority of basic infrastructure by end of 2018.
The World Bank is also in the process of sanctioning a Rs.4700 crores loan which will further improve the financial outlook for the next few crucial years of the city’s formation.
.Work in Progress.
Mother of all
B-schools @ Amaravati
After setting-up the Indian School of Business (ISB) – rated No.7 among top 10 MBA courses in the world – at Hyderabad, the CM of AP is now set to outdo his own legacy by building another premier institute of excellence @ Amaravati.
LSE (London School of Economics), Harvard University, NUS (National University of Singapore) + who’s who of global corporate world + World Bank and Bill & Melinda Gates Foundation are some of the intended partners for this school.
Pramath Raj Sinha – the founding dean of ISB & co-founder of Ashoka University – is the lead advisor for this 100 acre campus which is modelled around ISB and will double up as a think-tank to cater to the knowledge needs of governments and businesses of the country.
Amaravati Bonds oversubscribed by a record 1.5 times on Bombay Stock Exchange
India’s largest bonds issue till date from any local authority.
Within 1 hour of opening on BSE, a record Rs.2000 crores worth of “Amaravati Bonds” were lapped up by institutional investors – thus demonstrating the keen interest & tremendous faith that investors have reposed in the AP Government, the Chief Minister and the future of Amaravati.
It is now very clear to people that Amaravati is now unstoppable and will be a reality irrespective of support from central govt – putting to rest once for all, the hidden fears of prospective investors all over the world.
The govt will use these funds as equity contributions to kickstart various infrastructure projects such as the high court, assembly, secretariat, all internal roads, etc.
CRISIL has assigned a rating of A+ with a stable outlook to these bonds, acknowledging the good economic management by the State.
Amaravati certified “World’s Most Sustainable Capital” + “Platinum” in Green Cities Rating
In a boost to its global recognition as a world class capital city, Amaravati was endorsed “World’s Most Sustainable Capital” by the world’s foremost authority in this field – the “The Energy and Resources Institute (TERI) – this year.
Amaravati also received “Platinum” rating by Indian Green Building Council’s (IGBC) Green Cities Rating – the highest rating a city can obtain and making this the 1st time that a big city has been given this rating (the only other city in India to receive ‘Platinum’ was GIFT City, Gujarat – a much smaller city).
The IGBC rated Amaravati high on various parameters: city planning, heat mitigation, green buildings, public spaces and regions under green cover, environmental monitoring and others.
Amaravati scored 78 out of 100 (a city is awarded Platinum if it scores more than 76; gold for scores between 60-75; silver for scores between 50-59)
CRDA to auction land to raise funds for Amaravati
to ensure multiple sources of revenue for the next few years
Land monetisation + renting / leasing of commercial spaces will become a major source of revenue generation as land prices are expected to increase significantly after the development of trunk infrastructure in the State capital by end of 2018.
Out of the 9000 acres left out after allotment of Land Pooling Scheme (LPS) returnable plots to farmers, approx 4000 acres will be auctioned / mortgaged to raise almost Rs.50,000 crores over the next 20 years through this exercise.
AP ranked No.1 in India for “Ease of Doing Business”
…for the 2nd year in a row!
– a testament to the corruption free & transparent governance that forms the DNA of doing business in this state.
Among the reforms that propelled the State to the top spot are Single Window System (a single desk portal to take care of all investor needs & fast tracked approvals) and online processing of industrial incentives.
Other parameters considered are construction permits, labour regulation, environmental registration, access to information and land availability.
Currently 721 projects have gone into production with a committed investment of Rs.1,48,462 crores and committed employment of 2,26,305 jobs.
Proud to inform that our efforts in improving the business scenario in AP have paid off as it has been declared the No. 1 State in Ease Of Doing Business for the second time in a row. Developmental reforms made in the past few years have made AP the most investor-friendly State. pic.twitter.com/GTdC0bWWG8— N Chandrababu Naidu (@ncbn) July 10, 2018
Amaravati to get Rs 1,400-crore sports hub
As part of the 1st phase of Sports City – one of 9 thematic cities that will collectively from the Capital City of Amaravati – a multipurpose sports hub will be developed in about 20 acres of land with an estimated cost of Rs 1,400 crore.
This will not only serve the needs of residents of Amaravati but also serve as a venue for national and international events – and the govt even plans to host the Olympics in the future.
This will mainly consist of a 25,000 seater outdoor multi-sports stadium, indoor stadium, a sports academy with training centre, besides other supporting facilities and will be completed in three phases – 2022, 2024 and 2029.
This city will also have around 1000 premium apartments + Retail, entertainment and dining (RED) space of about 2.5 lakh sqft + a hospitality complex with upscale hotel and service apartments-cum-hostel of about 4.8 lakh sqft or 500-600 rooms.
Formula 1 Powerboat World Championship comes to Amaravati
+ Water Sports in 7 new locations along Krishna river
Amaravati is the next happening place in India for the world of water sports as it has been selected to host a round of the 2018 UIM F1H2O World Championship scheduled to take place from 22nd to 24th November 2018.
Also with an aim to develop new tourist destinations and drive tourism growth along the Krishna River, the govt has appointed 2 operators to set up & operate water sports at 7 new locations along the Krishna River.
This will form a high-traffic integrated river circuit – from VMC-Canal to Pavithra Sangamam, covering critical points such as Alankar Talkies, Durga ghat, Bhavani Island and Gollapudi, starting end of 2017.
A diverse range of water sports activities will be available to public – from Jetski, speed boat, kayaking, river cruise to special rides like zorbing – accessible from both Vijayawada and Amaravati.
The AP Tourism Development Corporation (APTDC) has also invited branded players to set up food courts along Krishna riverfront to encourage tourism.
This year, Andhra Pradesh will host the coveted F1H2O race. Be a part of this spectacle. Formula 1 Powerboat World Championship is international motorboat racing competition organized by UIM & promoted by H2O Racing. #F1H2OatAP #AmazingAndhra @ncbn @AndhraPradeshCM @bhuma_akhila pic.twitter.com/U8i0cC2X61— AP Tourism (@Tourism_AP) August 20, 2018
Underground Power Cable project gains steam in Amaravati
Around 230 Kms of tunneling & ducting for underground electric lines has already been completed along the trunk roads of Amaravati and another 1,000 kms of wiring will be laid along arterial and ancillary roads over the next few months.
Apart from tremendously improving aesthetics of the city, these underground lines will totally eliminate the need to constantly dig up roads for maintenance (since there is no chance of snapping of any wire), thus reducing the chances of power cuts & breakdowns (especially during bad weather) and also reduce power theft and pilferage.
Since demand for power will keep increasing with time, this project will make it easier to lay more cables as and when required without having to dig up roads & road expansion works can be taken up without worrying about constant relocation of these power utilities/ infrastructure.
.Free Public Tours.
AP Govt plans to arrange tours for public to showcase developments at Amaravati
Buoyed by the success of its recent initiative of taking visitors to the Polavaram project site to see work progress, the State government is now planning to arrange free trips by bus coaches from the headquarters of all the districts across the State, to Amaravati – for them to witness history in the making of AP’s new capital city.
Starting this winter, these free tours will help generate much needed awareness of the tremendous developments taking place on ground as many are ignorant even today and falsely assume that nothing much is happening or that Amaravati is only a dream project and will never materialise etc.
People will get to see :
- the construction works of 3,840 homes for Govt employees (set to be completed by end of 2018)
- seed access road & numerous arterial roads already laid
- underground electricity & drainage pipelines / ducts & cable network, gas pipelines + landscaping along main roads
- SRM & VIT campuses & Pi Amaravati data center (biggest of its kind in Asia)
- Temporary Secretariat at Velagapudi
and much more…
The Grid Pattern Road Network at Amaravati visible on Google Maps!
.1st of its Kind.
Amaravati to have India’s 1st Grid Pattern Road Network
Considered to be the most efficient way to layout a city
This pattern is also easier to construct and maintain, has good aesthetics and the road geometry is predictable & easier to understand – making navigation very easy, even for those who are new to the city.
Redundancy : If one street is blocked, traffic can easily reroute to the next street without any downtime / traffic jams, etc.
Flexibility : it’s easy to add or subtract a length of street in the existing grid without affecting the overall organization.
Excellent Green Cover : This road network will also have a green belt of trees on either side of roads, along with bicycle tracks for pollution-free commuting.
Amaravati to have 120 Acre Professional Grade Golf Course
With the guidance of Kapil Dev
Legendary Indian cricketer Kapil Dev has agreed to play a crucial role in designing and developing a professional grade golf course in Mulapadu (Krishna District) near Ibrahimpatnam (at the entrance to Vijayawada as you come from Hyderabad.
A majority of foreign investors & visitors to Amaravati – most of whom are going to be from Japan, Korea and other Asian countries – are avid golfers and hence this course will be a big attraction, especially for high-profile employees who would flock to the region as more industries are set-up over the next few years.
To conserve water & be more sustainable, Poly-synthetic surface will be used as these require less water than conventional courses. It will have 9 holes to begin with which will later get extended to 18 holes, with driveways and putting greens.
Anantapur to Amaravati Expressway accorded National Status
The Govt of India has declared the Amaravati-Anantapur expressway as National Expressway – making it one of the only 3 such expressways in India.
This access-controlled, 6 & 4 lane 393 kms expressway will become the longest in India, with very few turns or curves and long straight stretches, allowing speeds of upto 140 kms per hour, safely.
This will reduce travel time between these 2 locations from 500 kms to 394 kms and travel time from 9 hours to just 5 hours or less.
This will start from Ananthapur, going through Kurnool, Kadapa, Prakasam, Guntur and terminate at Amaravati’s Outer / Radial Ring Road.
Separate highways radiating towards Chennai and Hyderabad + feeder roads connecting Kadapa and Kurnool towns to the expressway will also be laid.
DGP Office @ Mangalagiri
Marking another major milestone for the state, the AP Police Headquarters building complex constructed on the NH-5 in the AP Sixth Battalion premises was inaugurated in August 2017 and is now home to the DGP & CID branches of AP.
.1st Phase to be completed by March 2019.
AIIMS @ Mangalagiri
250 Acre Campus (Rs.1600 Crores)
Construction on the All India Institute of Medical Sciences has been expedited with 11 buildings already at ground floor slab level and is expected to be completed and operational by end of 2018. Admissions have already begun for the 2018-19 batch.
Out-Patient (OP) services are set to begin by March 2019 as this will start attracting both senior doctors and students to the – with the medical college set to be fully functional by 2020.
Govt Machinery Shifts to Velagapudi Secretariat
Interim Govt Complex
Most of the govt machinery has already started functioning out of the massive 49 acre (6,00,000 sft) temporary secretariat at Amaravati, which was completed in a record time of just 7 months.
This was crucial in creating a mindset shift in the people of Andhra Pradesh who now consider Amaravati to be their ONLY capital, even though technically, Hyderabad is still the joint capital till 2024.
.On a Lighter Note….
AP’s 1st Jaguar Land Rover Showroom
While it took 20 years for Hyderabad to get its first Jaguar showroom, Amaravati has one even before the city takes shape!
Citywide Building Information Modeling (BIM) Systems
Single integrated blueprint / 3D model of the entire city
The Govt of AP is creating a city-wide BIM (Building Information Modelling) system of Amaravati to have a single integrated blueprint / 3D model of the entire city, including all buildings, service ducts, maintenance & MEP (Mechanical, Electrical & Plumbing)points and more.
The rich data collected through this system will help in easy and preventive maintenance, sustainable consumption of power and water and predicting problems like gas leaks, short circuits, etc even at a single home level.
The CRDA now asks all developers to upload a 3D BIM of their projects during the approval process itself, so that data is available and monitored right from the conception of each and every building.
Amaravati Land Records to be on Blockchain Technology
Blockchain to fight land ownership fraud
- After successful implementation of blockchain technology in the road transport and registrations departments as a pilot project, the AP govt has also started building a blockchain infrastructure for land records of Amaravati, starting with digitisation of existing land records.
- The govt is working with Swedish startup ChromaWay to build a Blockchain-powered solution for a smart and secure way of recording land transactions / registrations. ChromaWay has already implemented this in Sweden and is implementing it in Dubai, Georgia and other countries with success.
- This will help in eliminating paperwork, greatly minimising fraud, accelerating transactions and saving a lot of money for the state – in addition to tremendously improving transparency and safety for investors’ money.
This will help in eliminating paperwork, greatly minimising fraud and accelerating transactions – in addition to tremendously improving transparency & safety of investors’ money.
Other Statewide Developments
In addition to the tremendous developments in and around Amaravati and Vijayawada, the AP government has also focussed on other strong hubs such as Vizag, Tirupati and Anathapur…
KIA Motors, Anantapur
Set to change the landscape of drought hit region
- Work is progressing rapidly on the construction of one of AP Govt’s most successful endeavours – a $2 billion manufacturing ecosystem in Anantapur spread over 536 acres (or 2,30,00,000 Sft) that will make 300,000 cars annually, starting from Sep 2019.
- This plant will provide direct and indirect employment to over 11,000 people around Anantapur, kickstarting the drought hit local economy in a big way.
- Anantapur already has one of the world’s largest solar power parks with a capacity of 1000 MW spread over 8000 acres and is also going to expand further. AP has beaten Rajasthan to become the largest producer of solar power in India.
Vizag – the Fintech Capital of India
Vizag is being heavily promoted by the AP Govt as the Financial Technology hub or the “FinTech Valley” of India
- The Andhra government become the 1st state of India to set-up an incubator to support Fintech startups, in partnership with NASSCOM and banks like SBI, ICICI and Mahindra Finance.
- The state government even hosted India’s first and only Blockchain conference in Vizag in October 2017. KPMG is acting as the knowledge partner for this Fintech Valley initiative.
- The AP Govt is the ONLY government member of the Ethereum Enterprise Alliance – a consortium of 50 companies like Accenture, Intel, Cisco, Infosys and others that are researching on the future of Blockchain.
- All this will set Vizag apart from the other cities in India that focus either on traditional financial services or pure IT development / outsourcing, by being the only city in India that aggressively promotes Financial Technology which is one of the fastest growing fields across the world.
- Click here to read an extensive coverage by Forbes Magazine on how Vizag is pioneering the rapid growth and adoption of FinTech initiatives across India.
Tirupati – Knowledge & Electronics Hub
Much more than just a Temple Town!
The temple town, Tirupati, is in for a giant leap in progress with premier institutes and industrial majors setting up their units in the Tirupati-Chittoor-Nellore hub, giving a tremendous boost to employment in this region.
- The state has established a new 149 acre IT park at Renigunta (outskirts of Tirupati), very close to the Tirupati International Airport – making it attractive for companies to set up shop here.
- An IT incubation centre called “INQ” is already operational, to make it easy for firms to setup their operations in the city.
- Adjacent to IT Park, the state has also developed a 504 acre “Electronic Hardware Manufacturing Cluster (EHMC)” near the Tirupati (Renigunta) International airport – andland has already been allotted to leading electronic component manufacturers and is set to change the face of the city into an IT and electronic hub.
- Mobile company Celkon had started production in 2017 and Micromax, Karbonn, Lava and two more mobile companies from China will also start their factories shortly, as part of the Rs.2000 crore Mobile Technology Park.
- The state has also developed a ceramic ware manufacturing zone near Srikalahasti where many leading ceramic manufacturers like Kajaria have been allotted land to setup their units.
- 2 wheeler giant Hero MotoCorp has set up its Rs 800 crore unit and is planning to start production in December 2018.
- ZOHO – the CRM software company is in the process of setting up a development center in Tirupati.
- AECOM-Deloitte has been appointed as the Project Management Consultant (PMC) to implement the “Smart City” rollout for Tirupati – which is among the top 100 cities shortlisted by the central government to be upgraded as a Smart City.
- Tirupati International Airport is all set to operate international services from 2018 – resulting in both a significant reduction in travel time & a big boost to pilgrim tourism in this area. From 2015-16 to 2016-17, traffic through Tirupati airport has increased by 48% (over 5,00,000 people used the airport in 2017) – showing the immense potential for growth.
- Premier institutes like the Indian Institute of Technology (IIT) and Indian Institute of Science and Education Research (IISER) are already underway in Tirupati to provide highly skilled manpower to the industries in the surrounding belts.
- The coexistence of such prestigious educational institutes and industrial biggies has formed a “forward and backward linkage’, – a winning combination that is very rarely possible in India, the benefits of which Tirupati is set to enjoy over the next few decades.
Tirupati International Airport
Tirupati turning into a “Smart City“
Reliance Industries setting up mobile & LED TV manufacturing unit in Tirupati
Tirupati emerging as an IT Hub
Xiaomi’s manufacturing plant at SriCity, near Tirupati
Invest in Amaravati
A Multi Pronged, New Age and
Future Proof Economy
As you have seen by now, Amaravati is no longer a DREAM PROJECT, as work has already begun and will infact pickup pace in the coming years.
With planning being complete, the state is now aggressively pushing towards implementation of works at breakneck speed.
Amaravati is now beyond the point of no return and growth and development is hence unstoppable & inevitable.
And while IT / ITeS will be a big driver for the economy (like how they developed Bangalore & Hyderabad), it will NOT be the mainstay of Amaravati’s economy, as this new city will grow on the backbone of upcoming technologies like blockchain, smart cities, artificial intelligence, big data and underserved industries like medical tourism, MICE infrastructure, world class tourism infrastructure and much more.
And this is EXACTLY WHY you are SAFE investing in Amaravati – as the state has purposely built foundations for a variety of industries to flourish – making it a highly diverse metropolis that is NOT dependent on a SINGLE industry or sector for its growth and development.
This is what makes AMARAVATI a SAFE & DIVERSE BET for your money & NOT just for Telugites but for all Indians for sure !
We are glad to see that already some of the Tamilians / Kannadigas / Malyalees / Maharashtrians / Delhiites have started investing in our Amaravati projects.
False Notion of Real Estate in Amaravati being Too Expensive
Now that a lot of development is VISIBLE to people across the world, an increasing number of them want to invest in Amaravati.
Yet some of the potential investors have been holding back, knowing very well that prices are at the lowest level now – as they are still circumspect about the political leadership in the near future.
But this is surely the right time to get started as with all above developments, we notice that there is some movement in the market already which is expected to pick up slowly and steadily and take off abruptly by this year end or about.
Definitely the fear psychosis of what will happen has more or less vanished, and the fact that active trading of allotted plots in the core capital is going on is an indication that things have settled down and hence this is the right time to evaluate and get started.
Just for your idea, land trading in and around core capital has already started and plots are being traded in the price range of Rs.14,000 to Rs.22,000/sq yard in residential category and Rs.17,500 to Rs.26,000/sq yard in commercial category, depending on the location and that too just based on 4 boundary stones with no clue at all as to what will come up in their neighbourhood / who is their neighbour.
This only shows that the expectations of all speculators and farmers, when the capital was announced, that allocated land will be valued at Rs.40,000 to Rs.50,000/sq yard will come true, as end users will come in at that price point to buy these traded plots.
At above rates, your investment is less profitable compared to peripheral areas which are also more futuristic in terms of importance for residential developments and located near Outer Ring Road and bridges on Krishna river integrating the Vijayawada Hyderabad highway corridor. At these places, approved plots are available between Rs.6000 to Rs.13,000/sq yard which means the logical implications are as below
- Investments can triple in equally good peripheral zones by the time properties double in and around the core capital.
- Capital required for investment in core areas is very high compared to the peripheral areas. For example, a good 500 sq yds plot in and around core capital will cost anywhere between 80 lakhs to 1.2 crores depending on the location. The same area (500 sqyds) in the peripheral areas will cost just 28 to 45 lakhs.
- Further, most of the investors want to invest in the range of 20 to 40 lakhs which is out of question in the core capital.
- While you can buy in huge gated communities in the peripheral areas where one is clear about their neighbourhood and the amenities expected, the same can never be visualised in the core capital with certainty at this point in time.
So, invest in peripheral areas versus core areas (say in 15 to 45 minute radius from the core capital), where prices are much lower – in the range of Rs.6000 to 13,000/sq yard – such properties will be easy to sell even when they double or triple in few years – while also having supporting infrastructure and access to Amaravati through ring roads and bridges on the Krishna river, giving you faster & easier returns.
Keeping in mind the above scenario which is in line with the CRDA declared master plan for Outer Ring Road, Inner Ring Road and bridges on the Krishna river connecting the Hyderabad – Vijayawada Highway, you are better off investing in such rapidly developing peripheral areas such as Kanchikacherla / Nandigama (where the Outer Ring Road cuts through the Hyderabad to Vijayawada NH), Muktyala / Jaggayyapeta (the logistics hub for all material required to build Amaravati and future industrial hub of Amaravati as that is the only stretch having sufficient land and same time easily accessible to all Hyderabad industrialists), etc.
While you may always have options through your circle suiting above scenario, given below are 2 best opportunities in those growth hubs where you can invest / get started as less as Rs.19 lakhs onwards (approx $30,000). What more, by taking a pre approved bank loan through us, you can get started with as low investment as Rs.4.5 to 7 lakhs depending on the size of the plot.
Where can you invest in Amaravati for high ROI?
At the expense of sounding like a sales pitch, I am happy to share that we have identified such under-valued growth areas over the last 2 years and are now developing projects, which are set to become the best of their respective categories in these fast growing micro-markets, as shown below :
A Rare 300 Acre Integrated Township on the Banks of Krishna River near Vijayawada / Amaravati
A number of important developments shown below have resulted in Alakananda RiverFront coming into a sudden limelight.
Investors from both Andhra and Telangana are investing in this with equal enthusiasm and excitement, due to :
RIGHT ON THE STATE BORDER
Located bang on the AP & Telangana state border, Alakananda Riverfront is positioned very primely between Hyderabad (current capital) and Amaravati / Vijayawada (future capital) – which are the top 2 economic engines of the combined states of Telangana and AP.
INLAND WATERWAY TERMINAL
RIGHT NEXT TO ALAKANANDA
The Vice President of India Mr.Venkaiah Naidu laid the foundation stone for the construction of a cruise terminal right next to Alakananda, which will facilitate movement of both passengers and cargo (cement, steel and sand) for the construction of Amaravati core capital.
DREDGING OF KRISHNA RIVER
IN ADVANCED STAGE
The Inland Waterways Authority of India (IWAI) has awarded contracts & work has begun on dredging the 80 kms segment of Krishna river between Muktyala & Amaravati (part of National Waterway 4) to facilitate transportation of construction material for Amaravati, from Muktyala / Jaggayyapeta – a major hub for construction material (cement, iron, bricks & granite).
TREMENDOUS BOOST TO TOURISM
Besides serving the construction purposes, this waterway will eventually become a commercial route for shipping industry + also attract tourists / promote tourism once the government introduces cruise ships to pilgrim centres like Durga temple, Ibrahimpatnam, Vedadri and Muktyala.
KRISHNA RIVER TO HAVE WATER
365 DAYS A YEAR
Once works are completed by end of 2018, this segment will hold water 365 days a year, which means you will enjoy the best ever riverfront ambient lifestyle forever, throughout all seasons of the year.
With the combined advantage of being the starting point for this waterway as well as access to the bridge network over Krishna river, this region – Muktyala / Jaggayyapeta – will become the gateway to Amaravati…
SOFT LAUNCH IN INDIA
- EXCEEDED SOFT LAUNCH QUOTA
Happy to share that we have stopped taking bookings of 1000 and 500 sq yard plots at Alakananda as we exceed the initially planned pre-launch quota.
- We are now offering only 400, 300 and 266 sq yard plots at a very special price of Rs.6950/Sq yard – before we open it up to public at a much higher price of Rs.8000 or more per Sq yard in 4 to 5 months from now.
- This means by investing now, you still enjoy a clean 15% discount / advantage over public launch price and can expect to double your money in 4 to 5 years time, even on a conservative note.
- Tremendous amount of work has already been completed and Phase 1 of 120 acres will be ready for move-in by 1st half of 2019.
Click Here for Project Details of Alakananda
Click Here for Latest Site Work Progress Photos
An 80 Acre Gated Community of Villa Plots
CRDA Approved Villa Plots at Keesara / near proposed Outer Ring Road and bridge over Krishna River near Kanchikacherla / Chevitikallu
20 minutes from Amaravati
CRDA Approved – LP No.31/2016
With the elections just 1 year away, the state govt is now working overtime to kickstart work on the proposed Outer Ring Road + Inner Ring Road and the bridges over Krishna River – all of which are crucial for any other development to take place in Amaravati. Tenders for the bridges at Kanchikacherla and Ibrahimpatnam are being finalised.
Land acquisition for both the rings roads is in advanced stages and work is expected to begin soon (you would have noticed in the latest media reports that NHAI authorities have already given their approval for the Outer Ring Road and before that, Inner Ring Road has been cleared by the CRDA) – which will surely lead to a rapid run up of prices in and around the areas connected by these ring roads.
To take advantage of this, we have developed an 80 acre gated community of CRDA approved villa plots just 2.9 kms off the Hyderabad-Vijaywada Highway and just 3 kms to the Outer Ring Road + one of the 5 bridges over Krishna River at Kanchikacherla / Chevitikallu.
Works are 90% complete (good enough for you to move in and start constructing your home right now), we are offering few plots at pre-launch price of Rs.8950/Sq Yard before launching the same to public at Rs.10,500/Sq yard or higher in 4 to 5 months from now.
You can expect to double your money in 3 to 4 years time.
Click Here for Project Details of Alankrita
Our most awaited launch which is expected to set a benchmark in Amaravati / Vijayawada
In our recent newsletter, we offered just 1% of the stock as a goodwill offer at a rock bottom price of Rs.2950/sft compared to Rs.4600 to Rs.5100/Sft for comparable projects in the neighbouring areas.
I am glad to share that the stock of 11 apartments was SOLD OUT in just 43 hours of having sent out the newsletter!
Once we receive final approvals in the next 2 to 3 months, we will announce a pre-launch offer to our patrons at a special price (you will also have the option of choosing a good unit), before opening up to the public at a higher price.
The Varadhi to Mangalagiri stretch, as mentioned by me before, is already the hottest growth corridor of Amaravati with the AP Police HQ becoming operational last month, Jaguar showroom and many other high end retail and commercial developments in progress, including the 250 acre All India Institute of Medical Sciences campus under construction (admissions for the 2018 MBBS batch have already begun) just 1.2 kms from Buckingham Enclave.
Buckingham Enclave is going to set a benchmark for Vijayawada / Amaravati through its competetive pricing and a rare & unique masterplan – our central courtyard for example is larger than the ENTIRE PROJECT of other top brands in this area!
In case you missed to take note of our earlier mail exclusively on the Buckingham Enclave offer against 100% down payment, you may see the full offer document at the below link :
Click Here for Full Offer Document
Once again, I encourage you to invest in Amaravati’s growth story and keeping all the above developments and many more in the pipeline, this is the right time for you to get in and ride the wave over the next 3 to 4 decades of non-stop growth in what is set to be India’s leading technopolis – as proclaimed by the President of India, with the highest standards of living !
I wish you all the best and look forward to having you as an important part of our rapid growth in Amaravati as one of AP’s leading developers and wealth creators!
+91 9980380000 / +1 845 248 0012
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