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Real Estate Trends in Vishakhapatnam

Last updated: February 25 2021
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  • Re : Real Estate Trends in Vishakhapatnam

    Outskirts of Visakhapatnam witness real estate boom

    Plots in areas beyond Visakhapatnam district towards Vizianagaram and Bhogapuram were not only more affordable, but also far closer to the area earmarked for building the executive capital. Venkatesh Bayya | TNN | January 14, 2020, 13:00 IST

    VISAKHAPATNAM: The proposal to set up the executive capital in the outskirts of Visakhapatnam has resulted in a real-estate boom towards Vizianagaram and Bhogapuram, way beyond GVMC limits and outside the district.

    Sources in CREDAI disclosed that there was a major real estate boom in these areas, even more than the outskirts of Visakhapatnam. They pointed out that plots in areas beyond Visakhapatnam district towards Vizianagaram and Bhogapuram were not only more affordable, but also far closer to the area earmarked for building the executive capital.

    Chilukuri Srinivas, vice-president, CREDAI, said, “It is quite natural for real estate boom to occur in these areas. Colonies within GVMC limits have been built choc-a-block and most of the projects are apartment projects. But beyond Tagarapuvalasa, towards Bhogapuram and Vizianagaram, there are many large gated housing site projects which are still affordable. Hence, the boom.”

    Srinivas added that the boom in these areas was touching a100% mark after the executive capital proposal was made. “ If you take the 7km stretch just beyond Tagarapuvalasa, where Visakhapatnam district ends and Vizianagaram district begins, the hike in the last one month has been 100%.

    The rate per square yard towards Bhogapuram has gone up from Rs 10,000 to Rs 15,000. However, towards Vizianagaram town, the jump is 100 per cent from close to Rs 10,000 up to Rs 20,000.” Explaining the reasons for the incredible jump in rate per square yard, Srinvas pointed that a plot of land will always have better value than an apartment, which is one of the reasons many are willing to invest in plots.

    He added that people would prefer to buy a plot of 200 square yards for Rs 20,000 per square yard, rather than a 1,000 square-feet apartment for the same price in Madhurawada area. “Vizianagaram and Bhogapuram would be far closer to the administrative area, rather than much of the present city of Visakhapatnam,” he said.

    The number of VMRDA approved layouts are also on the rise, sources in the Engineering department pointed out. There are close to 100 approved gated housing communities towards Vizianagaram and Bhogapuram.









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    • Re : Real Estate Trends in Vishakhapatnam

      Visakhapatnam: Hazy picture on CRZ norms violations

      In the last few years, several activists from the city had filed RTI queries seeking the status of constructions in the city violating CRZ norms. However, the civic body has not replied to a single RTI.Arpit Basu | TNN | January 18, 2020, 15:00 IST

      VISAKHAPATNAM: Are builders in Visakhapatnam flouting Coastal Regulation Zone norms and constructing buildings along the coastline of the Port City?

      In the last few years, several activists from the city had filed RTI queries seeking the status of constructions in the city violating CRZ norms. However, the civic body has not replied to a single RTI.

      “Along the 136-km-long coastline of Visakhapatnam district we have identified around 37 constructions violating norms. Most of them are within the city limits. There are more constructions which are under the scanner. But the civic body is not paying any heed to our RTI queries,” said Arijili Dasu, an activist protesting against illegal constructions on Beach Road.

      Activists said, the constructions include both private and government properties — hotels, residential and commercial complexes and even a temple by an international organisation.

      “The stretch from Rushikonda towards Bheemli on Beach Road is most vulnerable. A few properties violating CRZ are under construction on this stretch. The government and the local civic body should stop these projects,” said Sohan Hatangadi, an environmentalist from Visakhapatnam.

      The Supreme Court on September 27, 2019 directed the Kerala government to demolish flats built on the coastal zone of Kochi's Maradu in 138 days and to pay Rs 25 lakh interim compensation to each flat owner within four weeks. Following this, a section of activists in Visakhapatnam are also planning to move court.

      “If GVMC does not take steps against these constructions we have to think about moving court. The size of Visakhapatnam beach is shrinking by the day and this will eventually have a significant impact on the environment,” added Dasu.

      When TOI contacted builders in the port city, they said they had all necessary clearances from authorities concerned. “We don’t want to comment on the issue. We are not doing anything illegal and we have required clearances from authorities for whatever it is that we are doing,” said a builder from Visakhapatnam.

      GVMC officials claim they are not giving any ‘fresh’ permission for construction on Beach Road. “We have roped in a private agency from Chennai and they would soon submit a status report on what we can do along the coastline,” a GVMC official added.













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      • Re : Real Estate Trends in Vishakhapatnam

        Sharp rise in residential rents in Visakhapatnam

        While the average appreciation rate for flat rents in Visakhapatnam is 8-10 per cent, in the last two months rents have increased by as much as 15-20 per cent in some localities.Arpit Basu | TNN | February 16, 2020, 12:30 IST

        VISAKHAPATNAM: With Visakhapatnam set to become the state’s executive capital and the metro rail project getting underway, residential rentals in localities along NH-16 are witnessing a steep appreciation. While the average appreciation rate for flat rents in Visakhapatnam is 8-10 per cent, in the last two months rents have increased by as much as 15-20 per cent in some localities.

        “In January last year, I had taken a two-bedroom flat on rent on the Madhurwada highway for a monthly rent of Rs 9,000. This year the owner has suddenly increased the rent to Rs 15,000. After a massive search I managed to find a two-bedroom flat for Rs 12,000, but it’s about a kilometre away from the highway,” said KV Prasad, who works with a private insurance company.

        As per Greater Visakhapatnam Municipal Corporation (GVMC) estimates, around one lakh people from other areas of AP and other states migrate to Vizag every year, primarily for work and education. Most of these families look for rental accommodation. Many have even made Vizag their permanent home and have been living here for decades.

        Experts said the increase in rents has come much earlier than expected. They say they expected the increase only in November or December 2020, but flat owners in some localities in the city have already started increasing the rent anticipating a rise in demand. “In fact, to some extent you can blame the tenants for this demand. Whoever is looking to rent a house on a long-term basis is eyeing localities close to the proposed metro rail stretch. The idea is to take a house on rent early while the rents are still low and extend the contract so that the rent appreciation is low even after five-six years,” said DK Raju, a property broker.

        It seems even owners have caught on to this and many are reluctant to sign fresh agreements with the present tenant. The reasoning behind this move is simple. With the old tenant, the rent can only be increased by 10%, while for a new one it can be much higher.

        “I had purchased my second flat on loan and am spending Rs 10,000 per month as EMI. Till now, whatever I was getting as rent, I used that to pay the EMIs. I see no problem in hiking the rent if I can save some amount for myself after paying the EMI,” said K Pravakar, who owns a flat in Carshed area.









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        • Re : Real Estate Trends in Vishakhapatnam

          Land prices go up by nearly 20% on outskirts of Visakhapatnam

          The boom is having an impact all around from Anandapuram mandal in Visakhapatnam to beyond Bhogapuram in Vizianagaram district where the previous government had acquired land for the Greenfield international airport. Siva G | TNN | February 19, 2020, 10:00 IST

          VISAKHAPATNAM: Outskirts of the Port City as well as borders of Vizianagaram district are feeling the real estate boom in the area following a proposal being tabled to make Visakhapatnam the executive capital of Andhra Pradesh. Scouting land to set up government establishments has also begun.

          The boom is having an impact all around from Anandapuram mandal in Visakhapatnam to beyond Bhogapuram in Vizianagaram district where the previous government had acquired land for the Greenfield international airport.

          The price of land in and around Bhogapuram, Anandapuram, Padmanabham, Tagarpuvalasa and areas bordering Vizianagaram has gone up by 20% to 25% since November, 2019, said sources. Prices have increased by Rs 10,000 to Rs 20,000 per square yard. Realtors are also trying to cash in the situation by selling unsold plots in layouts.

          Talluri Sivaji, a realtor told TOI that the marked has picked up momentum and people are currently choosing open plots over flats. “Plots 30km to 35km around Madhurawada towards the Vizianagaram Srikakulam road is most sought after,” he added.

          Sources said that the plots that were lying unsold for a long time in various layouts on the Visakhapatnam-Vizianagaram-Srikakulam route have all sold out. “Many plots in those ventures which were not selling have now been sold following the executive capital proposal. Plots in 1,000 to 2,000 acre layouts have been sold in the last two and half months,” said a realtor who is part of a large association of builders.

          Real estate agent Birlangi Umamaheshwara Rao said, “The price of each square yard has gone up by Rs 500 to Rs 1,000 in old layouts. People had anticipated an increase in prices in Vizag and the outskirts. But price of land has increased in Vizianagaram and parts of Srikakulam as well.”














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          • Re : Real Estate Trends in Vishakhapatnam

            BSNL to lease out vacant land, buildings in Visakhapatnam

            William said uninterrupted customer services would continue even though a majority of employees had taken voluntary retirement. TNN | February 21, 2020, 16:00 IST

            VISAKHAPATNAM: General manager of BSNL-Visakhapatnam, Paul William said that the telecom company plans to lease out its vacant quarters and buildings to other organisations and had called for an expression of interest (EOI).

            William said uninterrupted customer services would continue even though a majority of employees had taken voluntary retirement. The department, he said, has taken measures to maintain services by requesting staff who have opted for the voluntary retirement scheme (VRS) to work till an alternative arrangement was made.

            Addressing the media here on Thursday, William said that 576 staff members, including 495 non-executives and 81 executives, had opted for VRS in the district. Services of some subcontractors would also be utilised at the sub-divisional level.

            “We are going for e-tendering in external plant network and door (OD) maintenance and cell tower maintenance. All the tenders are in process and would be made effective from April 1. The present staff and the retired staff (VRS) are working hard in maintaining OD network in an uninterrupted manner,” William said.

            Staff are taking care of leased circuits for banks, state and central government offices, besides business establishments, William said.












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            • Re : Real Estate Trends in Vishakhapatnam

              Visakhapatnam development body picks seven mandals to develop 1-cent houses

              Officials have identified about 2,867 acres in seven mandals out of the pooled land to develop the housing sites for 1.54 lakh beneficiaries.Umamaheswara Rao | TNN | February 27, 2020, 15:00 IST

              VISAKHAPATNAM: Visakhapatnam Metropolitan Region Development Authority (VMRDA) is racing against time to prepare one-cent layouts for distribution to the homeless in Vizag city starting this Ugadi.

              Even though the land pooling exercise is being carried out in 10 mandals in the district for nearly 6,100 acres, officials have identified about 2,867 acres in seven mandals out of the pooled land to develop the housing sites for 1.54 lakh beneficiaries.

              About 58,861 beneficiaries will be given one-cent plots in Sabbavaram mandal alone, including Gollapalem village (15,108 plots), Nanginarapadu (11,936), Yerukunaidupalem (3,363), Pydiwada (9,953) and Gangavaram (18,501). Housing sites will be allocated to nearly 38,000 families in Thangudubilli, Gandigundam and Ramavaram villages in Anandapuram mandal.

              About 20,187 plots will be provided to the homeless in Mudapaka mandal. Nearly 13,000 housing sites will be developed in various villages of Parawada mandal. Other layouts will come up in Gajuwaka, Anakapalli and Pedagantyada mandal.

              Visakhapatnam Metropolitan Region Development Authority estimates that basic infrastructural development works, including jungle clearance, site levelling, total station survey and peg marking with stones for the one cent plots, would cost the exchequer about Rs 57 crore. VMRDA called for tenders for the same two days ago. Civil works at these layouts are expected to begin around March 10 after finalising bidders. Visakhapatnam Metropolitan Region Development Authority metropolitan commissioner P Koteswara Rao said VMRDA engineering officials will prepare a daily report on the ongoing works at various layouts.

              “VMRDA officials were asked to work in a coordinated manner to complete the works within the stipulated deadline to facilitate distribution of the housing sites to the poor,” said Koteswara Rao. VMRDA will get nearly 900 acres as its share out of the pooled land in compensation for the development of these one-cent layouts. The farmers (assignees/encroachers) will also be provided developed plots. But the size of the plots will be based on the legitimacy of possession and tenure.

              While the development of one-cent layouts is estimated to cost about Rs 2 lakh per acre, expenditure on the layout development towards farmers’ share as well as VMRDA’s share is likely to hover around Rs 50 lakh per acre.











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              • Re : Real Estate Trends in Vishakhapatnam

                Visakhapatnam civic body banks on BPS as town planning revenue dips

                While the city’s civic body has been able to realise just around Rs 90 crore through the town planning wing by giving permissions for construction as of Friday, the building penalisation scheme has fetched GVMC around Rs 50 crore.Umamaheswara Rao | TNN | Updated: March 01, 2020, 13:22 IST

                VISAKHAPATNAM: At a time when the Greater Visakhapatnam Municipal Corporation (GVMC) is struggling to reach its target revenue, the civic body’s building penalisation scheme (BPS) has come as a blessing in disguise.

                While the city’s civic body has been able to realise just around Rs 90 crore through the town planning wing by giving permissions for construction as of Friday, the building penalisation scheme has fetched GVMC around Rs 50 crore.

                Revenue from town planning wing permissions has come down significantly. In the 2018-19 fiscal, GVMC had earned Rs 163 crore and in 2017-18, the civic body had earned Rs 146 crore by giving permissions for construction plans of housing and commercial complexes.

                GVMC officials attribute this drop in revenue to increased issuance of TDRs (transferable development rights) as compensation to landowners over the last two years and the consequent utilisation of TDRs. Thus, it is the BPS scheme that is helping GVMC’s town planning wing to compensate for the decreased revenue in building plans.

                According to GVMC, the civic body received 6,166 applications under BPS when the scheme made a comeback in 2019. GVMC had disposed 3,800 applications till 6pm Saturday— the last day to process BPS applications— to generate revenue of nearly Rs 50 crore. The municipal corporation has sent intimation letters for payment of balance amounts in documents to around 1,400 applicants.

                Now, if the state government does not extend the deadline again as it has done in the past, the processing of applications may end on Saturday midnight.

                Through BPS, GVMC regularised constructed buildings that had deviations from the sanctioned plan or completely unauthorised structures. Building owners whose applications have been processed and approved will be issued occupancy certificates.The scheme however is not applicable for buildings constructed on government land or on prohibited areas under CRZ (coastal regulation zone) norms.














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                • Re : Real Estate Trends in Vishakhapatnam

                  Encroachments & illegal buildings ignore Visakhapatnam civic body's fiat

                  Such unauthorised constructions include additional floors, sheds, stairwells and other structures encroaching upon public land.Umamaheswara Rao | TNN | March 02, 2020, 15:00 IST


                  VISAKHAPATNAM: In order to make Visakhapatnam grow in a planned manner, the Greater Visakhapatnam Municipal Corporation (GVMC) has attended to nearly 2,600 unauthorised constructions over the last two years.

                  Such unauthorised constructions include additional floors, sheds, stairwells and other structures encroaching upon public land. The civic body acts against such encroachments upon receiving complaints from the public as well as on the basis of its own field inspections.

                  Over the last two years, GVMC has cracked the whip on nearly 1,100 encroachments. The civic body also identified 51 deviations from approved plans and cleared them out. A total of 133 extra floors, which had been constructed against building norms, were pulled down. The municipal corporation has removed 167 structures in total and has taken action against 11 parking violations.

                  Meanwhile, with property rates skyrocketing in the city, encroachments or additional unapproved floors are coming up indiscriminately. Cases are also being reported of people converting cellars into commercial spaces. There are reports of stairwells being constructed and compound walls being put up by encroaching upon public land.

                  Sometime ago, the city’s municipal corporation had taken up a special drive taking action against illegal structures. During the drive, the civic body removed nearly 100 unauthorised structures in a week. The drive had created a flutter in the city after it was found that the civic body had identified buildings belonging to senior politicians.

                  Environmentalists and the city’s larger civil society have been requesting GVMC to take strict action against illegal structures and encroachments.

                  Their focus has mainly been on buildings that have sprung on the beach roads in violation of CRZ (coastal regulation zone) norms.

                  City residents attribute this spurt in unauthorised constructions to the GVMC’s building penalisation scheme (BPS). The scheme, which has been reintroduced by successive governments at regular intervals, allows people to regularise unplanned structures retroactively. Therefore, illegal structures are first built and subsequently regularised through BPS.

                  Speaking to TOI, an official of the town planning wing of GVMC said that identification and razing of illegal structures is a continuous process and that field-level officials have been instructed to report illegal structures promptly.










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                  • Re : Real Estate Trends in Vishakhapatnam

                    Hike in steel, cement prices hurting realtors in Visakhapatnam

                    While a 50kg bag of cement cost Rs 225 in January, the price went up to Rs 325 per bag in mid-February. Now, the price has gone up to Rs 400 per bag.Arpit Basu | TNN | March 09, 2020, 14:00 IST

                    At a time when Visakhapatnam is preparing itself to host the executive capital of Andhra Pradesh, the realty sector of the region was anticipating a boom. However, the spike in prices of steel and cement has significantly affected the sector’s optimism.

                    Realtors are of the opinion that if the prices continue to go up, they will be compelled to stop under-construction projects and wait for the prices to go down.

                    Speaking to TOI, Koteswara Rao, a city-based realtor said, “2019 was a bad year for us. With the new government implementing a fresh sand policy, the supply of sand went down and the price of sand increased in the black market. Many projects got stalled. But finally, when sand prices came down, the price of steel and cement is affecting our business.

                    While a 50kg bag of cement cost Rs 225 in January, the price went up to Rs 325 per bag in mid-February. Now, the price has gone up to Rs 400 per bag. Similarly, the price of steel has increased by nearly 60 per cent over the last six months, of which, a 30 per cent hike has occurred over the last three months.

                    “Generally, this is the peak season for construction business. The price of cement and steel remains competitive during this time of the year. But this year is an exception and manufacturers are hiking the price of steel and cement,” Rao added.

                    Suppliers claimed that the price hike for steel is due to rise in prices in the international market. “As far as we are aware, steel prices have gone up globally and it has had an effect on Indian steel prices also. Owing to a lack of demand, steel prices reduced from April to September last year. Now, the demand has increased and prices of steel have also gone up,” said N Nagendra Rao, a wholesaler.

                    On the rising price of cement, experts said while prices were stable in southern states till the end of 2019, the price in Visakhapatnam rose this year due to high real estate demand.

                    “Due to the new sand policy of the state government there was shortage of sand supply and owing to this many projects were stalled in the city. As supply of sand normalised in November, realtors restarted stalled projects and demand increased by leaps and bounds,” said Nagendra Rao.

                    Currently, more than 5,000 flats in large complexes and 2,000 in smaller complexes are up for sale in the city and its outskirts. Many of these are still under construction.

                    Realtors feel that while the price of real estate is increasing in Visakhapatnam with the executive capital proposal on the table, the increase in prices might actually lessen demand, thereby damaging the hopes for a realty sector boom.











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                    • Re : Real Estate Trends in Vishakhapatnam

                      Visakhapatnam: Construction workers on brink of unemployment

                      Around three lakh daily wage labourers are on the brink of unemployment following most businesses being shut down and construction work being suspended as precautionary measure against Covid-19. File photo

                      VISAKHAPATNAM: The coronavirus outbreak has added insult to injury for daily wage labourers, especially construction workers, in the Port City, who have been recovering from the aftershocks of sand crisis.

                      Around three lakh daily wage labourers are on the brink of unemployment following most businesses being shut down and construction work being suspended as precautionary measure against Covid-19.

                      There are allegations that GVMC staff have been closing down shops, including eateries, as against the higher officials’ instruction to only shut shopping malls and multiplexes. Moreover rumours have only compounded the problem.

                      A large section of the three lakh daily wagers are from neighbouring districts of Srikakulam and Vizianagaram. Many of them stay at Allipuram, Jnanapuram, Thatichetlapalem, Kailasapuram, Isukathota, Venkojipalem, Arilova, Chinnagadili, Thotagaruvu, Madhurawada, Akkayyapalem and One Town areas.

                      But since the coronavirus positive case was reported in the city, people are hesitating commissioning work.

                      “My employer told me that till March 31, there will be no work as the virus threat is looming large. We came from Palasa in Srikakulam district to Vizag for livelihood eight years ago. We can survive if we do not have work for one or two days, beyond that we will not manage,” said a construction worker K Ramunaidu of Isukathota area said.

                      Men usually earn Rs 400 to Rs 450, while women get Rs 300 to Rs 350 per day. “Although there is no instruction to suspend construction work, we have decided not to take risks. So we will slow down our work till March 31,” a builder, on condition of anonymity, said.

                      Speaking to TOI, district joint collector Venugopala Reddy told TOI that there are no instruction to close small shops and eateries. “We are urging people to minimise their routine travel and practice social distancing as part of precautionary measures against COVID 19,” he said.











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