Rising land prices push Vizag toward vertical housing
Land values have climbed to levels where low-rise developments are becoming difficult to sustain in prime areas, Says credai chief E Ashok Kumar
Developers note that rising land costs are prompting changes in planning strategies. High-rise projects allow more efficient use of limited urban land while spreading acquisition costs across a larger number of housing units
Visakhapatnam: Escalating land prices and the shrinking availability of large, well-located plots are reshaping Visakhapatnam’s residential market, with developers increasingly turning to vertical housing projects.
“Land values have climbed to levels where low-rise developments are becoming difficult to sustain in prime areas,” said E Ashok Kumar, president of Credai Visakhapatnam chapter. “Vertical construction offers a practical way to optimise land use while maintaining project viability.”
Developers note that rising land costs are prompting changes in planning strategies. High-rise projects allow more efficient use of limited urban land while spreading acquisition costs across a larger number of housing units. The shift also reflects evolving buyer preferences.
“Vertical housing helps balance rising land costs with market demand,” Kumar said. “Homebuyers today expect features such as security, dedicated parking and shared amenities.”
Industry observers attribute sustained housing demand partly to employment growth driven by the IT sector and allied industries, particularly in areas close to emerging business hubs.
Several micro-markets are witnessing increased activity in vertical residential launches, including the Madhurawada–Kapuluppada corridor, Anandapuram–Kommadi, the Bhogapuram–Bheemili stretch, and the Yendada–Rushikonda coastal belt. Developers link this trend to road expansions, infrastructure upgrades and improved connectivity. “High-rise developments in these growth corridors can support demand while enabling planned urban density,” Kumar added. “Vertical growth is the future of Visakhapatnam, given the city’s land constraints and evolving urban needs.”
He emphasised that vertical expansion, when supported by adequate civic infrastructure, can enhance land-use efficiency.
Kumar also highlighted the need for regulatory clarity and faster approvals to keep projects on schedule and manage costs. With land prices expected to remain firm, industry stakeholders believe vertical housing will continue to dominate new launches, shaping the city’s future residential pattern.
