Reviving Vizag's Real Estate: Builders Pin Hopes on IT, Metro, and Infrastructure Development
Builders in Visakhapatnam are seeking investments in IT, early completion of the Bhogapuram International Airport, and initiation of Metro Rail to boost real estate activity in the city.
Real EstateVisakhapatnamInfrastructure DevelopmentIt SectorMetro RailReal EstateJun 27, 2024
The builders believe that Chief Minister Nara Chandrababu Naidu, known for his entrepreneurial qualities, will formulate policies to boost construction activity in Visakhapatnam, the commercial hub of Andhra Pradesh. When the previous government announced plans to set up the administrative capital in Visakhapatnam, the city witnessed a surge in building activities. However, the initiatives stalled, leaving over 15,000 flats unsold. To mitigate their losses, builders started offering incentives for flat purchases to cover their interest on capital investment.
According to B Srinivas, president of CREDAI (Confederation of Real Estate Developers' Associations of India), Visakhapatnam chapter, the builders are not seeking concessions but want to contribute to the state's revenue. They believe that infrastructure development will drive growth in the real estate sector. Srinivas noted that the airport works are expected to be completed in August 2026.
Visakhapatnam's pleasant atmosphere, scenic beauty, and adequate green cover make it an attractive destination for people. The construction activities in the city have been dull for the past five years, including the Covid pandemic years. Builders are now focusing on affordable housing, considering the low income levels of the urban middle class in Visakhapatnam. The average income in the city remains around ₹25,000 to ₹35,000, making it difficult for people to afford houses costing more than ₹50 lakh.
Currently, construction is underway in areas like Yendada, Sagarnagar, Madhurawada, Anandapuram, and some parts of Bheemili. Vacant land is scarce in the main areas of the city, and builders are looking to the government to provide a booster shot to the real estate sector.
Frequently Asked Questions
What is the current state of the real estate sector in Visakhapatnam?
The real estate sector in Visakhapatnam is currently dull, with over 15,000 flats remaining unsold.
What are the demands of the builders in Visakhapatnam?
The builders in Visakhapatnam are seeking investments in the IT sector, early completion of the Bhogapuram International Airport, construction of flyovers, and initiation of Metro Rail.
Why are builders offering incentives for flat purchases?
Builders are offering incentives to cover their interest on capital investment, as the real estate sector has been slow for the past five years.
What is the average income of the urban middle class in Visakhapatnam?
The average income of the urban middle class in Visakhapatnam remains around ₹25,000 to ₹35,000.
What kind of houses are builders focusing on in Visakhapatnam?
Builders in Visakhapatnam are focusing on affordable housing, considering the low income levels of the urban middle class.
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