AP capital shift may lead to spurt in rental values in Vizag

Visakhapatnam: The opening of transit camp offices and residences for top dignitaries, including the Chief Minister, Ministers, Chief Secretary, Secretaries, and Heads of Departments, in Visakhapatnam within the next few days is expected to increase demand for rental private properties.

Sources in the real estate market indicate that there will be increase in rentals after the government vide a recent GO identified properties belonging to various departments admeasuring 2.28 lakh sqft for top functionaries and 1.75 lakh sqft in Millennium Tower A and B at Rushikonda hills. The space identified for offices and residences by the high-power committee set up by Chief Minister YS Jagan Mohan Reddy is not enough, the authorities may look for newly built apartment complexes and other buildings on a lease. This has necessitated following the decision of the Chief Minister to relocate his residence to Visakhapatnam.

All the three GOs issued by the General Administration Department regarding shifting to Visakhapatnam have not spoken about developing Visakhapatnam as the executive capital due to apparent reasons. The case regarding trifurcation of the capital is pending before the apex court. The GOs have elaborately mentioned about backwardness of North Coastal Andhra necessitating frequent review meetings and the need of top dignitaries to be present in Visakhapatnam and nearby areas to take part in the meetings and monitor the progress of implementation of various welfare schemes.

“This is a political decision to gain some mileage as elections are just a few months away and the present government has failed to develop even a single capital, forget about having three capitals during the past four and half years,” TDP State president and former Minister K Atchan Naidu, alleged.

The blocking of available space at Millennium Tower-A, where four floors have been leased to an IT company and the Millennium Tower-B for housing various departments, has created confusion among the IT community, who have their offices at Rushikonda. Rushikonda is also home to IT Special Economic Zone and major players like Infosys. IT employees feel that it may lead to imposition of security restrictions. “The purpose of constructing the twin towers was to provide space to IT and ITES investors, mostly small and medium players from the region with plug and play facilities. Now housing the government offices will negate the objective,” CEO of an IT company, said on condition of anonymity.

Though the latest GO has not made any mention about housing the CM’s camp office at the resorts developed by AP Tourism Development Corporation by spending crores of rupees by demolishing the hold cottages with a panoramic view of the blues waters of the Bay of Bengal, the government had earlier stated that the resorts was the best place for the CMO due to security and availability of adequate parking space. Sources told Bizz Buzz that interior work on spacious rooms and the banquet hall is now at an advanced stage. The Chief Minister has already made it public that he will relocate to Visakhapatnam from December. It is speculated that he will stay three nights in the city and remain at Tadepalli suggesting that he will not wind up his camp office at Amaravati.