The Andhra Pradesh government’s decision of making Vijayawada as the next capital had hit the government first than any others. Majority of government offices in Vijayawada are housed do not have own buildings and are housed in private properties till now. With the capital announcement, the real estate prices in the city shot up and the impact is seen in the rentals of existing properties.
Recently the Andhra Pradesh government has decided to operate temporarily from Vijayawada. Subsequently several departments have shifted their base to Vijayawada and now the property owners have served notices to vacate or shell the extra money. The problem is not confined only to Vijayawada, there is an appreciation in the rents of nearby Guntur district too as government intends to develop the entire zone between Vijayawada and Guntur. Chandra Babu Naidu is expected to review the entire situation in Vijayawada and Guntur in the next week.
