Amaravati realty market’s loss is Visakhapatnam’s gain

AP real estate experts are waiting for a real estate boom in Vizag post-elections. They are anticipating huge growth in sales irrespective of whichever party comes to power. They also expect a minor price correction in Amaravati realty market

Hyderabad: After Covid-19, the overall real estate market in Andhra Pradesh has witnessed slowdown and it picked up slowly with the luxury and mega high-rise projects in Visakhapatnam and Vijayawada urban. However, the realty market in Amaravati has been stuck due to the ambiguity created by the AP government whether it is the only capital of the State or just an administrative capital.

At the same time, the executive capital tag has helped the realty market in Visakhapatnam. Particularly, the Telugu investors from other States and countries are showing interest to purchase properties in the port city. Non-resident Indians (NRIs) and high net worth individuals (HNIs) have been enquiring about the high-end ventures in few areas like Rushikonda, Yendada and Madhurawada.

This sudden spurt in enquiries is due to a series of announcements made by Chief Minister YS Jagan Mohan Reddy to the shift the government machinery and the Chief Minister’s Office (CMO) from Amaravati to Visakhapatnam near Rushikonda Hill facing the seashore. However, the property sales are happening in slow pace as the Lok Sabha and State Assembly polls are nearing in April-May 2024.

According to the AP real estate experts, the Vizag real estate boom will be seen post-elections. They are anticipating huge growth in sales irrespective of whichever party comes to power. They also expect a minor price correction in Amaravati realty market. Else, the port city would continue to lead the property business in the State over the coming years. “Apart from the capital tag, Vizag has several advantages like beautiful beaches, IT hub, and business centre. Recently, high-rise culture has also come in to the city. All the new mega multi-floor projects starting with minimum 100 units,” said B Raja Srinivas, Joint Secretary – South Zone of Confederation of Real Estate Developers' Associations of India (Credai).

“Each branded builder has at least three ventures under development with a range of 300-2,000 residential units in a project. The new launches and supply of units in high-rise ventures increased significantly over the last few years. These units will be absorbed by the homebuyers from the beginning of next financial year,” he predicted.

The construction works of Bhogapuram International Airport are on full swing. With this, the demand for open plots and villas has increased drastically from Bhogapuram to Tagarapuvalasa. The Centre has completed six laning of National Highway (NH) - 16 (formerly NH-5). This has pushed the property sales across the entire stretch from Ranasthalam in Srikakulam district to Anakapalle district. Early this year, the Centre has announced another six-lane road from Jodugullapalem to Bhogapuram. This is likely to give a boost to the plotted development and villa projects all over the beach road.

“The Vizag real estate market has grown in leaps and bounds beyond the city limits. The NRIs and HNIs who hail from the three districts of North Andhra are seriously looking to buy properties in these land pockets. The property prices have grown almost 30-40 per cent in these areas,” says G Chakradhar, President of National Real Estate Development Council (Naredco) Andhra Pradesh Chapter.

Expressing similar views, Credai Andhra Pradesh Chapter President YV Ramana Rao reveals that the property prices have surged up across the State owing to rising land rates and construction cost. “As per the information we have, the sales enquiries are going on in Vizag. However, the buyers are in a wait-and-watch mode due to the upcoming elections,” he adds.