Visakhapatnam: Land scams in Vizag city seems to have resulted in real-estate boom in neighbouring Vizianagaram town in north coastal Andhra.

Investors hesitate to purchase plots and big tracts of land at Madhurawada, Kommadi, P.M. Palem, and Pendurthi in Vizag fearing that they might land in the soup.

VUDA has received very less number of applications for layouts in Vizag city, while the number increased in Vizianagaram.

“A few months ago, Madhurawada and Kommadi areas were the most preferable location for long-term investment. Now, people think twice before investing in properties in the two areas. Both areas have turned into epicentres of land scams in the city,” a realtor B. Sunil Kumar said.

Under the AP Urban Areas (Development) Act 1975, it is mandatory to obtain layout approval from the urban development corporations.

VUDA officials said that they have received 92 applications in 2015 and 109 applications in 2016 from Vizag region for layout approval.

“In 2017, VUDA received only 19 applications. However, the number of applications for layout approval from Vizi-anagaram region has increased from 51 in 2015 to 79 in 2017,” an official said.

There was some uncertainty due to various reasons. We hope that the image of Vizag will be restored at the earliest, a VUDA official said.

The civic body officials said that apart land scams, the increase in land prices in the city outskirts is also one of the reason for realty slump in the city.

“As Vizianagaram is near Vizag, investors evince interest in purchasing land here though it is a small town,” CREDAI members told this correspondent.