Demand drops, prices rise: Real-estate sector slows down in Vizag in 2022

Incidentally, the growth in the real-estate segment has been a little dull in the Vizag region. Some big developers managed to do some business whereas the small and medium developers witnessed slow progress in the trade in 2022.

By Newsmeter Network  Published on  31 Dec 2022 5:30 AM GMT
Demand drops, prices rise:  Real-estate sector slows down in Vizag in 2022

Vizag real estate sector witnessed a slowdown in 2022.

Experts said will it will take some months for the sector to gain momentum. On the other hand, the housing prices in Vizag and surrounding areas continue to grow.

Incidentally, the growth in the real-estate segment has been a little dull in the Vizag region. Some big developers managed to do some business whereas the small and medium developers witnessed slow progress in the trade in 2022.

The real-estate sector witnessed mixed response in the Vizag region in 2022. The growth of gated community apartments is steady as greater living standards have fuelled a strong desire for spacious flats and a better living environment without sacrificing safety, security, and amenities.

"The demand for the normal flats was lukewarm in the Vizag region. We sold over 60 percent of the total 800 units (flats) at the MK-1 Project at Yendada in Vizag city in 2022. We are expecting a little slow down of the real-estate sector in 2023 as recession and Covid-19 fears grow and the number of new projects may decrease," said Petli Ganesh, Manager-Sales and Marketing, MK Builders and Developers.

E Ashok Kumar, Hon Secretary of CREDAI, Visakhapatnam, said there were several factors for the slowdown of the real-estate sector. Though the AP government has announced Vizag as the executive capital of Andhra Pradesh, nothing has been done so far.

The AP government has failed to create employment in the state. As a result, the sale of flats did not take off as expected. The NRI investments in properties have declined by over 50 percent in the state, he added.

"We are witnessing a typical period in the real-estate sector in Vizag city. The flat prices have increased by over 30 percent within a span of a few years and the demand for housing has declined in 2022. The flat prices are ranging in between Rs5,000 and Rs6,000 per sft in the outskirts and most of the middle-class sector are not able to buy a flat," said members of CREDAI.

The stamps and registration department in Vizag region has achieved over 70 percent target till November. "It seems that people will buy flats to reside in instead of investing in the coming days. The 2023 year may witness mixed results like in 2022," the realtors added.

GFX

The price of affordable housing should be decided based on the income of middle-class families.

The EMI should not exceed 25 percent of the homebuyer's salary

The real-estate sector sees down in Vizag city with flats out of reach for the middle-class sector

Vizag's real-estate sector growing in the north direction-Madhurawada, Kommadi

The average income of a middle-class person is Rs 25,000 per month whereas the affordable flat cost over Rs 50 lakh

The price of the flats purely depends on various aspects like amenities and various in-cost construction

The land prices have increased abnormally and there was no land in the core areas of the city

The interest rate on home loans increased from 8.6 percent to 9.45 percent

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