In India, Andhra Pradesh is well known for the Information Technology breakthrough that was also responsible for making India a hot spot in the global map. The real estate sector of Andhra Pradesh grew due to the Export Processing Zones and Industrial Parks. Over the years, foreign direct investments have also grown significantly. The major cities of Andhra Pradesh have airports while Hyderabad has a large airport. The government has also developed the rail lines and roadways well, while some other projects are still underway. These factors attract good investments for the state. The state has also managed to develop large industries and smaller industries.
It was during the ‘90s, that economic reforms swept the state. After that, the state managed to attract large IT corporations which paved way for the need of office space and residential areas in addition to attracting employees from other states and abroad. Since, many of them wanted to purchase homes instead of spending a huge amount every month for rentals, there was a demand for numerous new homes.
The Andhra Pradesh government was pro-active and pushed growth in the real estate sector. There were plans for building offices. Thus, Information Technology parks and newer ‘Export Processing Zones’ (SEZ) came into existence. Eventually, the state went on to attract foreign direct investments. There are already some plans for building a Science City and it is planned such that it spreads across several thousand acres of land. This will be a big push for the realty sector. It will also offer employment for a large number of people, since large-scale projects consume a significant amount of time before taking final shape. Science City is planned for accommodating the needs of emerging sectors and the infrastructure is planned to be the best that can be offered.
In addition to large-scale projects, the ‘Ministry of Urban Development’ has decided to extend support to numerous projects related to urban development. The Ministry is also helping the growth of smaller towns by setting aside money in the budget. Whenever major industrial and commercial zones sprung up, the surrounding areas become hot property areas because of demand. In addition to the prevalent Special Economic Zones at select regions of the state, the state has planned to add more zones in the future.
The Project related to building several thousand state-of-art homes has been planned. The project will be developed with the partnership between some private and public undertakings after attracting sufficient foreign investment. The corridor connecting major cities of Andhra Pradesh is being developed for advancing industrial growth. There are also plans for boosting the infrastructure and massive industrial centers. These centers will tap the strengths associated with the nearby areas.
Andhra Pradesh has obtained the reputation of being a good contributor to India’s economy. It has also been successful in attracting large investments that help the state’s growth. In the recent times, there is a growing need for cheap housing. Therefore, the state government has planned integrated townships for catering to growing needs. This comes at a time when the real estate segment is awaiting the bill for regulating the sector. The bill is expected to increase the transparency of the operations of the sector.
Hyderabad is booming since there are plans underway to construct several thousand residential flats around and inside the city. Several flats will be constructed in all parts of the state too. The reason for this is the increasing demand among the urban employed people to own a house. Since the state and India at large is filled with people who fall in the middle-income category, the housing sector is seeing an expansive growth.
The state’s department of housing had also devised plans for constructing homes for poor people. These houses will be built at selected urban and rural regions. The project has progressed well and a portion of the project has been already implemented. The housing sector is trying to reduce the price but the main obstacles are the land cost and cost of raw materials that are used for building houses; tax is the other contributor to the overall cost, in fact, it contributes to a third of the cost.
