Visakhapatnam, June 7, 2023: The real estate market in Visakhapatnam is expected to face a surge in housing costs following the revision of land prices by nearly 30% in various parts of the city. The hike in registration values has also been extended to flats and agricultural lands, causing concerns among realtors and builders.
The prices have witnessed a significant increase of over 50% in certain areas such as Kurmannapalem, Yendada, Anandapuram, Tallavalasa, Sontyam, and Ramavaram. This price revision comes after the state government’s proposal to establish Vizag as the executive capital in 2020, which initially led to a sharp rise in land values, especially in suburban regions like Atchuthapuram, Bheemili, Anandapuram, Kurmannapalem, Sabbavaram, and Pendurthi.
Realtors and builders foresee potential negative effects on the real estate market, especially in the initial months, as the revised land values might discourage prospective buyers, particularly those from the middle-class segment. The ongoing uncertainty regarding the shifting of the executive capital has already caused a stagnation in the market, with prices remaining relatively stable for some time.
The Covid-19 pandemic has further impacted transaction volumes in the real estate space, resulting in a challenging period for the industry. The recent increase in construction material prices has already contributed to the rising cost of housing. The additional surge in open plot and flat registration values is expected to further burden the common man.
Prospective buyers have expressed concerns about the affordability of housing in Visakhapatnam, with prices in the city surpassing those in the suburbs of other cities. Factors such as connectivity to the city and limited local infrastructure have led buyers to seek properties in the core city, where flats are being sold at rates between ₹7,000 and ₹10,000 per square foot, and plot prices exceeding ₹1 lakh per square yard in several areas.
While the long-term impact of the revised prices on transaction volumes remains uncertain, the real estate market in Visakhapatnam is bracing for potential challenges ahead.