K Raheja Corp Advances ₹2,172 Crore Mixed-Use Development at IT Hills 3, Visakhapatnam — Foundation Stone Laid, ToR Application Filed
Foundation Stone Laid for Visakhapatnam's Major IT Mixed-Use Development
K Raheja Corp has applied for Terms of Reference (ToR) approval and laid the foundation stone for a 27-acre mixed-use project at IT Hills 3 in Visakhapatnam, signalling the developer's entry into Andhra Pradesh's fast-growing technology and commercial infrastructure market. The project comprises approximately 2.9 million sq ft of Grade-A office space and premium residential units, with an estimated investment of ₹2,172 crore.
The Madhurawada location, situated within an approved IT Special Economic Zone, positions the development to capture demand from multinational and domestic tech companies relocating to or expanding in the city. The project is expected to attract major IT and multinational companies looking to establish operations in Visakhapatnam, aligning with recent regulatory and infrastructure moves in the region.
Phased Delivery Timeline and Employment Generation
K Raheja Corp plans to execute the development in two phases. Phase One targets commercial structures by 2028, with residential units following by 2030, carrying a price tag of Rs 663.42 crore and will deliver 959,000 square feet of space. Phase Two covers commercial buildings finishing by 2031, and residential units by 2035, budgeted at Rs 1,418.84 crore, adding another 1.906 million square feet.
The proposal notes that the project will generate employment for about 9,681 people, addressing a capacity gap in Visakhapatnam's IT infrastructure. The government has already provided about 6 lakh square feet of office space in the existing Millennium Tower 1 and 2 to IT giants such as TCS, Cognizant, Accenture, and others, with the Raheja project intended to meet incremental demand.
Context: Visakhapatnam's Emerging IT and Investment Landscape
Visakhapatnam has emerged as a focal point for major technology investments in South India. This move comes in the wake of Google planning an AI-based data center in Visakhapatnam, which is expected to attract a large influx of IT companies. Recent approvals by Andhra Pradesh's State Investment Promotion Board (SIPB) have signalled aggressive state-level backing for industrial and technology-driven projects in the city.
To accommodate the expected growth, additional office space is required for new entrants, a need Raheja's project aims to fulfil. The Madhurawada IT SEZ designation provides fiscal incentives and regulatory clarity for IT and ITES operations, supporting the economic viability of large-scale, long-tenure commercial developments.
Developer Background and Track Record
K Raheja Corp is a leading Indian real estate conglomerate with expertise across office spaces, residential, hospitality, malls, and retail. Founded in 1956 by Chandru Raheja, K Raheja Corp operates as the second largest commercial developer in India, with an established portfolio across Mumbai, Pune, Hyderabad, and Bengaluru.
The commercial offerings stand today as a partner of choice for 210+ domestic and foreign multinationals, with a total leasable area of 33.1 mn. sq. ft., with community-based ecosystems branded as Mindspace Business Parks, Commerzone and The Square. The portfolio comprises 26.2 mn. sq. ft. of completed area, 4.4 mn. sq. ft. of area under construction and 2.5 mn. sq. ft. of future development area.
The Visakhapatnam project aligns with K Raheja Corp's broader geographic expansion and mixed-use development strategy. The company announced a Rs 2,172 crore investment in a 2.865 million sq ft IT park in Visakhapatnam, enhancing the city's tech infrastructure through modern office facilities. The developer is simultaneously advancing other retail and hospitality initiatives in the city, including the mall business commenced construction of Inorbit Mall at Visakhapatnam.
Regulatory Approval Process
The project has cleared initial state-level gatekeeping, with the Andhra Pradesh SIPB had earlier approved the project, with 27.10 acres allotted by the state government. The filed ToR application now moves the project toward environmental and social impact clearances, a standard pre-construction compliance step for mixed-use developments of this scale in India.