The recent land auctions conducted by the Visakhapatnam Metropolitan Region Development Authority (VMRDA) have become a powerful barometer of the city's booming real estate sentiment. Held on December 17 and 18, the auctions for remaining plots in middle-income group (MIG) and regular layouts saw fierce bidding, with prices soaring significantly above the base rates. This renewed frenzy is directly attributed to massive investment announcements totalling nearly ₹2.5 lakh crore in the corridors of Anandapuram, Kapuluppada, and Rushikonda, spanning IT, data centres, and digital infrastructure.
Investment Wave Triggers Bidding Wars
The transformation in demand is most starkly visible in the Palavalasa MIG layout. Situated just three kilometres before Tarluwada village, the future home of Google's data centre, this area saw its fortunes change overnight. Seven plots with an upset price of ₹14,500 per square yard attracted intense competition. The highest bid skyrocketed to ₹23,700, marking an impressive 64% jump, while the lowest successful bid settled at ₹18,800, still about 30% above the base price. This is a dramatic shift for a layout developed nearly three years ago, where demand remained tepid until the recent investment cloud lifted.
The Kapuluppada region, poised to emerge as a major IT corridor with confirmed investments from giants like Cognizant, TCS, Accenture, Sify, Adani Data Centre, Infosys, and Raheja IT Space, followed a similar trajectory. Here, with an upset price fixed at ₹23,500 per square yard, ten plots were sold for between ₹32,000 and ₹34,500. This represents a premium of 36% to 47% above the reserve price. Market observers note that the demand surge is not solely due to IT investments. Upcoming mega projects like the luxury hotel corridor between Bheemili and Bhogapuram, the Bhogapuram airport slated for June 2026, and the airport-linked EduCity in Bheemili mandal are creating a compounded positive effect.
Affordable & Litigation-Free: The VMRDA Advantage
VMRDA Chairperson MV Pranav Gopal emphasised that the authority's mission aligns with Chief Minister Chandrababu Naidu's vision of affordable housing. "With corporate giants investing lakhs of crores in Visakhapatnam, the city is set to emerge as a mega city," he stated. Gopal highlighted that VMRDA develops layouts to offer land and apartments at prices lower than prevailing market rates. A key driver of demand is the assurance that VMRDA layouts are litigation-free and come with developed infrastructure like roads, parks, and open spaces, a significant advantage over many private ventures.
The auction results are now setting benchmarks for the entire regional real estate market. Private developers closely track VMRDA auctions to gauge sentiment and revise their own prices. For instance, plots in private layouts around Kapuluppada are currently sold at ₹25,000–₹30,000 per square yard. With VMRDA auctions touching nearly ₹35,000, this upward price pressure is expected to ripple across private developments and ultimately impact end-buyers. Notably, several plots that remained unsold in earlier auctions during subdued market conditions found eager buyers this time.
Momentum Spills Over to Neighbouring Districts
The positive momentum from Visakhapatnam's core has spilled over into neighbouring districts, indicating a wider regional optimism. All 25 plots put up for auction in the Jiyyannavalasa and Raghumanda MIG layouts in Vizianagaram district were successfully sold. Similarly, plots in Tummapala in Anakapalli district witnessed complete uptake, underscoring the broad-based recovery and confidence in the state's planned infrastructure-led growth.
This auction cycle conclusively demonstrates that strategic infrastructure and corporate investments are the primary catalysts for real estate valuation in Visakhapatnam. The VMRDA's model of providing affordable, secure, and well-planned layouts is effectively meeting the rising demand from a populace anticipating the city's transformation into a global investment destination.
