Vizag's realty bites: Demand high, sector down
However, the existing demand has not helped in providing an impetus that is needed in Vizag’s real estate market.
VISAKHAPATNAM: Owning a beachfront home or one with a view of the sea is a dream many people have in common. To wake up to the soothing sound of waves crashing on the beach and a glimpse of the rising sun glinting off the sea continues to entice city dwellers. With remote working becoming the new norm, realtors are looking at a trend where more upper-crust homebuyers are considering buying properties by the seaside.
The upcoming projects, including the tourism plan along the coastal stretch among others, have been a shot in the arm for the realty market as many realtors and homebuyers are considering the City of Destiny as an ideal living destination. However, the existing demand has not helped in providing an impetus that is needed in Vizag’s real estate market.
Referring to their latest survey, CREDAI General Secretary Subhash Chandra Bose told TNIE that despite the existing demand for beach view houses, the sector in general has been stagnant for the past few months, owing to a hike in raw materials of up to 35-40 per cent.
Bose explained, “The stretch between Visakhapatnam and Bheemili as well as RK Beach Road have seen an uptick in demand from homebuyers post the pandemic. At present, the base prices per square foot are around Rs 6,500 along RK Beach Road. These prices can go up to Rs 9,000, depending on various aspects like amenities, and variations in cost of construction.”
While a few buyers are looking at investing in beachfront properties as a safe bet for good rental returns, those who want to permanently move to the aquatic-view abodes have an early return on investment advantage to tick off their checklist, if they ever plan on selling it off.
In comparison to property prices in 2019, Bose noted that there has been a 30 per cent increase in price/sq ft in all major areas with stretches of the beach. Rents, too, have seen a significant spike. One has to pay around Rs 50,000 to take a house for rent on the beach road while a 2 BHK is priced anywhere between Rs 25,000 and Rs 30,000. In case, one wants to buy a 3 BHK on the beach road, he/she would have to shell out up to Rs 1 crore. Referring to the current market trends, the Bose explained remarked that a first-time buyer can anticipate a decent return on investment or rent in four years down the lane.
Realtors also believe that Vizag has become the preferred destination for realty investments after it was announced to be made the executive capital of that State and also with several IT mulling over establishing their offices in the Port city. Besides the rising air traffic and the upcoming Bhogapuram Airport are some other factors that are giving the real estate market in the city that much-needed stimulus.
“The constant urge of the younger generation to upgrade their lifestyle, a sense of security which comes from owning a house, multiple new neighbourhoods emerging and housing options appealing to both the budget and high-end buyers across the city can make the overall market pick up again in terms of demand in the coming days, if raw-material prices come down,” the CREDAI general secretary opined.
3BHK on Beach Rd to cost Rs 1 cr
If one wants to buy a 3 BHK on the Beach Road, they will have to shell out at least Rs 1 crore. One has to pay around Rs 50,000 to take on rent a 3 BHK on beach road. The rent would have been Rs 35K 3 years ago