Increasing demand for affordable properties is changing the face of satellite villages near Vijayawada in the real estate sector. 

The Villages such as Poranki, Tadigadapa, Yanamalakuduru, Penamaluru, Gosala, and Nidamanuru, once relatively quiet, are now buzzing with economic activity that is mainly around the real estate market.

With home buyers now searching for affordable houses following the economic effects of the pandemic, there is an increase in demand for realtors with projects in these regions. Before the Covid-19 outbreak following the expansion of National Highway (NH) 65, the momentum had started to pick up in these areas.

Infrastructure Developments

The widening of the highway not only improved traffic flow, but it also paved the way for new commercial enterprises, as most buildings have to be built because old buildings have been demolished for expansion. The pandemic, however, dealt a blow to the real estate sector in the capital area, which faced capital uncertainties. Demand for houses had plunged as the economic activity as a result of the lockdown had come to a near halt.

Satellite villages are now among the first areas to see an increase in demand for real estate, with activity beginning to pick up following the unlocking guidelines. Ch Subbarao, a Poranki builder, said they are seeing more inquiries now than they had been before Covid. Many of these enquiries, according to the builder, are also translated into transactions. Realtors said that a decline in rates has also driven up demand for houses in these areas.

Price of the projects has come down to all-time lows due to the unexpected pandemic, according to a real estate agent. Since most builders had to deploy their entire capital in ongoing projects, even after demand started to pick up, prices did not go up. 

With the price ranging from Rs 5 lakhs to Rs 10 lakhs, the price gap between areas in the city and satellite villages has led many home buyers to choose this. Many are pushed towards these satellite villages with commercial establishments such as supermarkets, branded clothing stores, home appliance stores and gyms setting up shop in these areas, as it means they do not have to drive all the way to the city for their needs.

By: Shailaja K