Visakhapatnam's real estate industry put on an 'excellent display' in 2023

By Bricksnwall | 2023-12-25

Visakhapatnam's real estate industry put on an 'excellent display' in 2023

During the year, assets worth around Rs. 1,500 crore were sold; the market value of residential, commercial, and agricultural properties increased by 50% since June 1.

Visakhapatnam's real estate industry has had a 'good' year in 2023. According to sources, business activity has been strong this year compared to 2022.

Property including flats, plots, and villas worth approximately 1,500 crore were sold this year, which realtors attribute to several factors, including the ongoing works of the Bhogapuram International Airport project, which they say raised the hopes of buyers and investors, the launch of some industries on the city's outskirts, the opening of the Infosys camp office, and the visibility of the Chief Minister's proposed camp office building at Rushikonda being completed soon.

Aside from that, the market value of residential, commercial, and agricultural assets in Visakhapatnam has increased by 50% since June 1 of this year. Since June 1, the price of a square yard of residential site in Madhurawada sub-registrar office limits has risen to between 11,000 and 60,000, according to the Andhra Pradesh Registration and Stamps Department. Until May 31, the price per square yard ranged between 6,300 and 40,000. In 2023, this is the city's most valuable market area.

The annual property expo hosted by the Confederation of Real Estate Developers' Associations of India (CREDAI), Visakhapatnam, on the other hand, has garnered a positive response. Y.V. Subba Reddy, YSRCP regional coordinator for north Andhra region, who visited the expo on December 24 (Sunday), stated Visakhapatnam has a bright future. "Like everything else, the real estate here will also grow," he went on to say.

According to S. Srinivasa Rao, the business development manager of a real estate company, the business has two key tough jobs.

"One is selling plots, and the other is selling flats." Flats are for both residential and investment uses, whereas plots are only for investment. Due to a scarcity of space, flats outnumber plots in the city. Plots for sale are mainly on the outskirts, at least 30 kilometres from the city centre. Bank cooperation and interest rates also play a role in the business," he explained.

According to bankers, interest rate changes on home loans and other loans are determined by Reserve Bank of India (RBI) standards. According to a public sector bank employee, "the interest rate for home loans fluctuated between 8% and 10% in 2023, depending on the banks and the customer's CIBIL score.

E. Ashok Kumar, honorary secretary of CREDAI, described the year 2023 as a "positive show." "This year, the real estate sector generated nearly Rs. 1500 crore in revenue." However, the first quarter of 2024 appears to be a little sluggish due to general elections. ""The business will also be dependent on the next government in the second half of 2024," he stated.