(Visakhapatnam, India) – Visakhapatnam’s real estate market witnessed a remarkable surge in 2023, with property sales exceeding Rs. 1,500 crore, a significant increase compared to 2022. This upswing can be attributed to several factors, including the ongoing development of the Bhogapuram International Airport, the emergence of new industries in the city’s periphery, and the opening of Infosys’ camp office.
Booming Prices and Hotspots
Residential, commercial, and agricultural property values across the city climbed by 50% since June 1, 2023. Madhurawada, a previously lesser-known area, has become a prominent hotspot, with residential plot prices skyrocketing from Rs. 6,300-40,000 per square yard to a staggering Rs. 11,000-60,000 per square yard.
Industry Buzz and Optimism
The ongoing development of the Bhogapuram International Airport and the burgeoning industrial activity on the city’s outskirts have fueled immense investor interest. The opening of Infosys’ temporary office and the proposed construction of the Chief Minister’s camp office at Rushikonda further bolstered confidence in the city’s future prospects.
CREDAI Expo Highlights Growth
The annual property expo organized by CREDAI Visakhapatnam was a resounding success, attracting significant interest from buyers and investors. YSRCP regional coordinator Y.V. Subba Reddy, who inaugurated the event, expressed optimism about the city’s real estate potential.
Challenges and Future Outlook
While the market enjoys momentum, challenges remain. Selling plots, as opposed to flats, can be more challenging due to space constraints within the city center. Additionally, bank cooperation and interest rates for home loans play a crucial role in influencing buyer decisions. Home loan rates in Visakhapatnam varied between 8% and 10% in 2023, affecting affordability for some buyers.
Despite these challenges, CREDAI’s honorary secretary, E. Ashok Kumar, remains optimistic about the Visakhapatnam real estate market, praising the 2023 performance and anticipating continued growth. However, the upcoming general elections in the first quarter of 2024 may temporarily dampen the market. The latter half of 2024 and beyond will largely depend on the policies and initiatives implemented by the newly elected government.
Overall, Visakhapatnam’s real estate market has experienced a spectacular boom in 2023, driven by infrastructure development, economic growth, and investor confidence. While challenges remain, the city’s long-term growth trajectory appears promising, making it a potential hotspot for both aspiring homeowners and savvy investors.
(Source: thehindu)
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