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Realtors anticipate boost in next few months post elections

Siva G / TNN / Apr 11, 2024, 21:12 IST

The real estate sector in Visakhapatnam experienced a slowdown in the 2023-24 financial year. However, realtors anticipate a boost in the coming months after the elections conclude in June.
The stamps and registrations department also fell short of its targets, achieving only 69% of its goal. The department earned Rs 1050 crore through nine sub-registrar offices in the district, compared to the target of Rs. 1517 crore. Only the Gajuwaka, Pedagantyada, and Dwaraka Nagar sub-registrar offices performed well.

According to K Srinivasa Rao, a builder, several factors contributed to the slowdown in the real estate sector. These include the majority of builders joining hands and allegedly increasing prices, as well as rising costs of iron, cement, sand, and daily wages for construction workers. “If we did not enhance the price, we will get losses. Even second-sale flats also go at around 80% to 90% when compared with the new flats. Now, the market trend is like that,” Rao said.

Square foot prices have increased to Rs 8000 and Rs 9000 in some main areas of the city, while even small builders constructing 10 to 20 flats have raised prices to Rs 6000 per square foot. N Satyanarayana, a real estate representative, believes that the sector will experience a boost by August of this year, after the elections are completed and the government makes strong decisions towards development.

Many ventures on the outskirts of the city, such as Madhurawada, Pendurthi, Naiduthota, Sujathanagar, Vepagunta, PM Palem, Kommadi, and other areas like Gajuwaka, Narava, and BHPV, remain incomplete due to financial difficulties faced by builders. A double-bedroom flat in these areas now costs more than Rs 50 lakhs, compared to just over Rs 33 lakhs five years ago. Most people in Visakhapatnam are salaried middle-income groups who are not purchasing properties for investment purposes, but rather for their own residence.

Despite the current challenges, real estate developers and financial institutions remain optimistic about the sector’s growth in the coming months. According to sources, more than 4000 flats are currently under construction in the city, including major ventures by MVV, Skyline Vaisakhi, MK Gold, and others. However, more than 1500 new flats are already lying vacant in the city, which has a population of 27 lakhs.


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