Sun Jan 18 13:44:32 UTC 2026: ### Headline: IT Investments Fuel Real Estate Boom in Visakhapatnam

The Story:
A fresh wave of major IT investments is driving significant growth in Visakhapatnam’s real estate market. Developers and property consultants are reporting faster housing absorption, firmer rentals, and rising enquiries, particularly in areas surrounding the city’s IT corridors. Announcements from major IT players like Tata Consultancy Services, Cognizant, Infosys, and Accenture, along with growing interest in data centres and Artificial Intelligence infrastructure, are being seen as long-term demand drivers for both residential and commercial real estate.

CREDAI representatives emphasize that this combination of IT growth, improved connectivity, and planned urban expansion could trigger a phase of structured development in the city, shifting the market towards an end-user, salaried home buyer demographic. This trend promises steady sales, improved financing prospects, and encourages new launches, impacting not only housing but also Grade A office spaces, co-working centres, and retail segments.

Key Points:

  • Tata Consultancy Services is setting up a ₹1,370-crore campus at IT Hills, Rushikonda, on 21.16 acres, expected to generate up to 12,000 jobs.
  • Cognizant has announced a ₹1,583-crore investment for an 8,000-seater campus at Kapuluppada.
  • Infosys is expected to establish a permanent campus in the Madhurawada–Yendada corridor.
  • Accenture has proposed a new facility in the city.
  • Increased demand is noted for 2 BHK and 3 BHK homes, especially in gated communities, in Rushikonda, Kapuluppada, Madhurawada, and Yendada.

Key Takeaways:

  • Major IT investments are acting as catalysts for real estate growth in Visakhapatnam.
  • The city is shifting towards an end-user market driven by salaried home buyers, stabilizing rentals and improving financing prospects.
  • The growth extends beyond residential real estate, impacting commercial spaces and retail sectors.
  • Data centres and AI infrastructure are poised to further strengthen Visakhapatnam’s position as a digital investment destination.

Impact Analysis:

The influx of IT investments and the subsequent real estate boom in Visakhapatnam are likely to have long-term implications for the city’s economy and infrastructure. The shift towards an end-user market indicates a more sustainable and stable real estate sector, less vulnerable to speculative bubbles. The increased demand for housing and commercial spaces will necessitate further infrastructure development, including improved transportation, utilities, and public services. The growth of the IT sector and related industries will also create a higher demand for skilled labor, potentially driving educational and training initiatives in the region. Furthermore, Visakhapatnam’s emergence as a digital investment destination could attract further foreign investment and strengthen its position as a major economic hub in Andhra Pradesh.

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