There has been a steep rise in real estate prices in Vizag, especially in areas like Madhurawada, Kapuluppada, Yendada, and Sagar Nagar.
Published Sep 22, 2022 | 5:51 PM ⚊ Updated Sep 22, 2022 | 5:57 PM
Andhra Pradesh reforms real estate norms to boost stagnant sector (Wikimedia Commons)
Visakhapatnam or Vizag, often called the Jewel of the East Coast for its pristine, golden beaches, has probably never been in the news as much in its long history as it has been in the last two-and-a-half years.
After Andhra Pradesh Chief Minister YS Jagan Mohan Reddy had announced that Vizag would be one of the three capitals of the state and house the important executive wing — in other words, become the seat of power — euphoria has been in the air in the beach city.
Along with euphoria, however, Vizag has also earned the tag of an unaffordable and expensive city.
Real estate prices have gone up so high that it’s not so easy for a middle-class family to own a house. A report by real estate research company Liases Foras termed Vizag the most unaffordable place among the 32 cities it analysed across the country.
A recent SBI research report on emerging trends in housing in India showed that housing prices in Vizag had increased from 4.9 percent year-on-year (YoY) growth in March 2019 to 11.3 percent at the end of March 2022.
Liases Foras, in its report “Ranking housing affordability of major Indian cities”, said Vizag is the most expensive city in India.
“As for the most expensive cities in the country, Vizag is ranked first because the rental yield is relatively the lowest among the 32 cities considered. Rental per sqft in Vizag changes from ₹8/sq ft to ₹14/sq ft and sale price changes from ₹5,000/sq ft to ₹7,000/sq ft. Because the maximum travel distance in Vizag is 30.3 km, each distance band is of 6.1 km.”
Vizag beach road (Wikimedia Commons)
“With how many months of rent will an individual be able to purchase the same home that he is renting?” This is how the most affordable cities ranking was calculated, the report says.
Real estate prices have always been high in Vizag compared to other cities in Andhra Pradesh due to the coastal and cosmopolitan charms it possesses. But the rates have gone up manifold as demand rose after Jagan’s announcement that the city would be the executive capital.
There has been a steep rise in real estate prices, especially in areas like Madhurawada, Kapuluppada, Yendada, and Sagar Nagar.
Madhurawada region is the most sought-after area in Vizag and the market value of an acre now stands at ₹10–12 crore. It was around ₹2–4 crore until a few years ago.
Kapuluppada, where it is speculated that the secretariat and other important government buildings will be located, is close to Madhurawada.
The residential and commercial property demand in Madhurawada and Kapuluppada areas is expected to soar once the executive capital functioning begins in Vizag.
“The prices of both land and houses have increased manifold over the last two years. Especially after the chief minister’s announcement, there has been a greater focus on Vizag from even some corporate real estate giants from other parts of the country,” RRK Varma, managing partner of a real estate firm DR Projects, told South First.
Locals have jacked up prices. If a builder purchases land at a high cost to develop a residential property, obviously he puts a premium price on every unit he intends to sell. Once the court hurdles are cleared and the executive capital function begins from here, Vizag for sure will go out of bounds,” he added.
Vizag city (Wikimedia Commons)
Vizag, with thriving major and minor ports, an international airport, industries, good educational institutions, and a good climate, has always caught the eye of big realty firms.
Real estate firms such as Indiabulls, Aditya HIDCO, and Berggruen have bagged the most valuable lands in and around Madhurawada, Yedada, and Paradesipalem during the bulk land auction of the Visakhapatnam Urban Development Authority (VUDA) — now Visakhapatnam Metropolitan Region Development Authority (VMRDA) — in 2008.
Shriram Panorama Hills in Madhurawada, which is the flagship project of Shriram Properties in Vizag, is the first multi-crore housing project taken up by any corporate real estate giant in the city. Several phases of the project have been finished and almost all the flats and villas have been sold.
