The future prospects in tier 2 city like Visakhapatnam look promising with sustained economic growth, and increased demand for real estate, said Jerry Kingsley, India Head- Valuation & Advisory, JLL Property Consultants (India) Pvt Ltd. 

Delivering theme address during Conclave on Economic Growth Drivers & Real Estate Development organised by the CII Visakhapatnam with JLL as knowledge partner, Mr. Jerry Kingsley, India Head- Valuation & Advisory, JLL Property Consultants (India) Pvt Ltd.  said factors such as government initiatives like “Smart City” projects, improving connectivity, and favorable investment policies, contribute to their growth potential.  

He said upcoming Bhogapuram international Airport is likely to be a big game changer for the city, which would boost economic activities in the region in areas like MRO, Logistics, Industrial, Tourism, Hospitality and real Estate. Upcoming Integrated Data Center and Business Park by Adani Group at Madhurawada and Kapulappada is likely to attract other players into the market, which will boost the demand for real estate in the region in the long term.

Mr Manomay Rai, CEO of GMR Visakhapatnam International Airport Ltd, said that airports act as an economic multiplier for the areas in their vicinity and beyond. Studies conducted by NCAER for Delhi and Hyderabad airports corroborate the same. Industries like construction, real estate, logistics, hospitality, tourism, etc benefit directly from increased connectivity leading to new trade and investment opportunities.

Sharing his valuable insights on growth areas and opportunities in Visakhapatnam region, M Nanda Kishore, MD, Ramky Estates & Farms Ltd said the city is witnessing transformation on all fronts. The city offers a combination of affordability, quality, growth and potential that is hard to find in tier 1 cities. 

However, one should carefully assess the risks and challenges associated with investing in Tier 2 cities and conduct thorough research before making investment decisions. One should do due diligence and research before investing in these cities, taking into account the location, demand, supply, price, returns, risks and future prospects of the property, he added.

Mr V Prabhu Kishore, Chairman & Founder of Varun group said granting of speedy approvals from the government’s side is enabling of completion of the tourism and hospitality projects for driving economic prosperity in this region.

 Mr Rajesh Grandhi, Vice Chairman, CII Visakhapatnam in his welcome address said, the Real Estate Sector in India has come a long way by becoming one of the fastest growing markets in the world. India continues to be one of the world’s fastest growing major economies and it is expected to reach US$ 1 trillion in market size by 2030.

 Further Mr Grandhi mentioned that the Indian Real Estate & Housing Sector plays a vital role in the economic development of the country. It is the second-highest employment generator, and it is estimated that the overall employment generation in the economy due to additional investments in the housing / construction sector will lead to approximately eight times employment through backward & forward linkages with nearly 50% of India’s GDP being linked to the domestic real estate sector.

 The sector is also among the largest recipients of foreign direct investment with institutional investments in Indian real estate remaining strong during the first quarter of 2023, totaling USD 1.7 billion, led by the office sector, lending an optimistic outlook for the year said Mr Grandhi.

 Mr. Mahesh Varma, ED Avanthi Warehousing Services Pvt Ltd said the demand for warehousing and logistics in the city has recently increased due to the e-commerce industry and 3PL providers that serve manufacturing and retail firms. The Gajuwaka-AutoNagar and Madhurawada clusters, which encompass the northern and port-adjacent portions of the city respectively, are the two most important warehousing clusters. In addition, there are tiny pockets of warehousing in the Atchutapuram Special Economic Zone, Parawada, and Vuda Colony-Mindi industrial regions (SEZ). 

 Mr. R Kanaka Rao, Director of JSW Ltd said an economic ecosystem linking two major economic centres, an industrial corridor, invigorates economic activity along the transportation corridor. It harbours clusters of industrial production and manufacturing catering to local as well as global demands. By linking infrastructure and industry, they leverage the interdependence among different sectors. 

Dwelling on the next wave of retail growth, Mr Sharat Belavadi, Center Head-Hyderabad & Visakhapatnam, Inorbit Mall (I) Pvt Ltd, said Changing consumer preference coupled with emerging trends like ‘seamless’ retail, next-gen stores, personalization, the rise of mega ecosystems, and emerging revenue models are likely to shape the retail landscape in India. He also shared innovative practices adopted by global retailers and the key emerging trends.

Planning officer of VMRDA Mr. B Srinivas Murthy spoke about VMRDA Master Planning 2041 and outlined the vision of the development and its planning framework for the future, including strategies, development plans, and transportation plans. 

 On the sidelines of the conclave CII and JLL India have jointly come out with a white paper titled “Visakhapatnam Real Estate – Decoding growth opportunities”, a complete snapshot of key industries, city infrastructure, connectivity (air, port, road and rail) and real estate overview.  

Mr K Leela Prasad, Chair, IGBC, Visakhapatnam Chapter and Mr Pankaj Kumar, Deputy General Manager, SBI, and Indukuri Raja, MD, Sunray Village Resort also spoke on the occasion.