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Land prices in Visakhapatnam are soaring, threatening the availability of affordable housing. Notable areas like Kurmannapalem and Anandapuram have seen up to 50% increases in real estate prices. This hike, linked to the proposed executive capital relocation, is expected to negatively impact the property market. CREDAI's Bayana Srinivasa Rao fears this may deter potential middle-class buyers. To counter this, the VMRDA is developing Middle-Income Group (MIG) layouts, offering fixed-price plots allocated via lottery.
The escalating land costs in the urban and suburban regions of Visakhapatnam are painting a bleak picture for affordable housing in the city. Several parts of the city, including Kurmannapalem, Yendada, Anandapuram, Tallavalasa, Sontyam, and Ramavaram, have experienced an astonishing 50% increase in their real estate prices. This inflation extends not only to residential and agricultural lands but also to the cost of registering flats.
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Following the Andhra Pradesh government's proposal to establish Visakhapatnam as the executive capital in 2020, land values skyrocketed, especially in the suburban areas like Atchuthapuram, Bheemili, Anandapuram, Kurmannapalem, Sabbavaram, and Pendurthi. However, these soaring prices reached a standstill due to uncertainties surrounding the capital relocation.
Local real estate professionals and builders anticipate a chill in the property market due to these increased land values. They argue that the sudden price surge may deter potential buyers, especially those from middle-class backgrounds. The full impact of these new prices on Visakhapatnam's transaction volumes remains to be seen.
CREDAI AP chapter general secretary and former Vizag chapter chairman, Bayana Srinivasa Rao, explained that the Covid-19 pandemic had already dealt a heavy blow to real estate transactions in the city. "The escalating prices will only frustrate the housing aspirations of middle-class potential buyers. The steep increase in construction material prices has already made housing expensive. Now the surge in open plot and flat registration values will place additional financial burden on the common man," Rao said.
Some potential buyers, like N Madhusudhan, a college faculty member who migrated to Vizag from East Godavari, opined that housing in Visakhapatnam is becoming pricier than in the outskirts of other cities. "Urban connectivity and local infrastructure pose significant challenges when purchasing flats or plots on Visakhapatnam's periphery. At the same time, land and apartment prices in the city core are beyond the reach of the average buyer," said Madhusudhan.
In response to the mounting housing crisis, the Visakhapatnam Metropolitan Region Development Authority (VMRDA) has begun developing several Middle-Income Group (MIG) layouts within its jurisdiction, offering fixed-price plots that will be allocated through a lottery system.
In conclusion, as the land prices continue to soar in Visakhapatnam, the city's aspirations of offering affordable housing are at stake. In these challenging times, government initiatives like MIG layouts provide a glimmer of hope for those dreaming of owning a house in the city.
This story was earlier published in ET Realt
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