The four-day auctions of residential plots conducted by the Visakhapatnam Urban Development Authority VUDA, which concluded here on Wednesday, clearly show that there has been spurt in real estate within the city in recent months and that even in some of the areas on the outskirts prices have gone up considerably.

The VUDA auctioned off residential plots in the city and on the outskirts and also those in Vizianagaram town in layouts developed on its own and also those developed in association with private companies.

In the auctions, the VUDA put on auction 195 plots and 178 of them were sold for Rs 43 crore in Vizag and Vizianagaram.

It may be premature to predict a boom on the basis of VUDA auctions, but they certainly indicate that realty sector in the city has gathered steam of late.

A plot in the Muvvalavanipalem Colony MVP, a well-developed and coveted area in the city, fetched a record Rs 50,000/sq yard.

The other plot in the colony fetched Rs 48,000/ square yard. The minimum bidding price set by the VUDA for these plots was Rs 21,000.

Residential plots at Kurmannapalem in the vicinity of Visakhapatnam steel plant also fetched high prices. The highest bid was for Rs 38,000/square yard. Only the plots at Kapulauppada on the Vizag-Bheemli stretch fetched Rs 6,000-Rs 8,000/sq yard.

The minimum price set by the VUDA for these plots was Rs 6,000 a sq yard. The maximum bidding price touched only Rs 9,000/sq yard in the layout jointly developed by the VUDA and a private company. As such, only the plots at Kapulauppada were within the reach of the middle classes.

Criticism

The VUDA has come in for criticism for acting like a private developer and encouraging speculation. It is said that the prices, especially at Kurmannapalem in the vicinity of the Vizag steel plant, do reflect the market position. The maximum bid was Rs 38,000/ sq yard in the area.