K Raheja Corp announces ₹2,172-crore mixed-use IT and residential project in Visakhapatnam's Madhurawada

Project Overview

K Raheja Corp is developing commercial and residential complexes tailored to the needs of IT companies in Visakhapatnam. The project spans 27 acres with a built-up area of 2.9 million sq ft and will feature premium office spaces and residential towers. The company has requested the state government to allocate 27.10 acres in Madhurawada IT SEZ Hill No 3.

Phased Development Plan

Phase One is scheduled for completion by 2028 for commercial buildings and 2030 for residential complexes, with an investment of ₹663.42 crore and 9.59 lakh sq ft of space. Phase Two features commercial buildings completing by 2031 and residential complexes by 2035, with an investment of ₹1,418.84 crore and 19.06 lakh sq ft of office and residential space.

Locality Context: Madhurawada IT Growth Corridor

Madhurawada is a major business and residential area of Visakhapatnam located on National Highway 16, approximately 16 km from the city center. This region is famous for its Visakhapatnam IT Special Economic Zone, located in the proposed digitally-enabled smart urban city. The area is dotted with corporate offices, IT parks, and commercial complexes, attracting businesses from various sectors and contributing to economic growth and employment opportunities.

The project comes in the wake of Google planning an AI-based data center in Visakhapatnam, and the government has already provided about 6 lakh square feet of office space in Millennium Tower 1 and 2 to IT giants such as TCS, Cognizant, and Accenture. Additional office space is required for new entrants, a need Raheja's project aims to fulfil.

Infrastructure in Madhurawada includes wide roads, well-maintained parks, and excellent connectivity to other parts of the city. Situated in the northern part of Visakhapatnam, the locality enjoys excellent connectivity to key areas with easy access to major transportation hubs such as Visakhapatnam International Airport and Visakhapatnam Railway Station.

Developer Profile

K Raheja Corp is a property developer with interests in commercial and residential projects, malls and hospitality across multiple cities in India. It owns the brands Mindspace, Commerzone, Crossword Bookstores and Shoppers Stop, and is the second largest commercial developer in India. K Raheja Corp Homes has developed around 10 million sq ft of high-quality residential area across 30+ projects, creating homes for 8,500+ families.

Market Drivers and Employment Potential

The proposal notes that the project will generate employment for about 9,681 people. Upcoming infrastructure initiatives like Bhogapuram International Airport, JSW MSME Park, and the Adani Enterprises Data Center in Madhurawada are aimed to induce significant direct and indirect employment. The suburb is emerging as a major IT hub near the Visakhapatnam Special Economic Zone, which has led to an increase in demand for properties in the neighbourhood.