Visakhapatnam development body will develop layouts to counter losses, Real Estate News, ET RealEstate

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VISAKHAPATNAM: The Visakhapatnam Metropolitan Region Development Authority, which suffered revenue losses for the last three months due to Covid-19, has now decided to go for layout development. The VMRDA is in the process of selecting suitable land pockets belonging to it for the sale process.

The move by the VMRDA is expected to not only help the urban development authority shore up its revenues, but also boost the real estate activity in the north coastal Andhra Pradesh region, which witnessed a subdued demand due the Covid outbreak and the subsequent lockdown.

The VMRDA always receives an overwhelming response for its open plot sale process due to the clearly defined property titles. The VMRDA itself taking up the projects had created curiosity among prospective buyers as it will leave no scope for any cheating, which often happens with some private real estate developers.

VMRDA Metropolitan Commissioner P Koteswara Rao said that the VMRDA has started identifying the land pockets of the VMRDA for the sale process. “The Covid-19 and lockdown has caused a dent in the revenue of the VMRDA. Developing some layouts in the suburbs will also help decrease the pressure on the core city,” Koteswara Rao said.

The last time the VMRDA’s lands came under the hammer was in 2019. But they were only a few land bits scattered in various parts of Vizag city and suburbs. Prior to that, VMRDA developed Fortune Hills as a joint venture in about 98 acres in Dakamarri, some 40 kilometres away from the city.

Even though the VMRDA auctioned the HIG and MIG plots in the layout, the auction of the LIG plots is still pending due to not reaching a consensus over the pricing. There are 162 LIG plots measuring about 29,480 square yards in this layout. The VMRDA initially fixed the price of Rs 6,000 per square yard for the LIG plots in this layout. But later due to the surge in the land price, the minimum price as per the revised rates by the state government in the area has gone up to Rs 9,000. This has kept the LIG plot auction process in pending.

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