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AP Real Estate News – State Development Plans Help Increase in Rental Rates in Vizag

Posted by luckypropertywala_sxyoj4 on December 22, 2021
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AP Real Estate News – State Development Plans Help Increase in Rental Rates in Vizag

The city of Visakhapatnam has been witnessing a steady rise in rental prices across the city as the speed of growth & development ramps up. Over the last 2 years, even through the different phases of the pandemic the number of rented apartments has increased by nearly 25%. The port city of Visakhapatnam has now become one of the fastest growing cities in India and the outer limits of the city are being extended daily. The city is relatively less populated compared to other big cities like Hyderabad, Bengaluru or Chennai.

There have been significant developments all around the city with business, IT parks and commercial sectors popping up. The current trends in the city of Visakhapatnam indicate that the development of the city will be focussed in areas between Yendada, Madhurawada, Anandapuram & Bheemili. The rental rates & apartment prices of residential units in these areas have been on the rise due to the fast pace of development and exponential future growth value of property in these areas. Many new residential housing projects are being constructed in the above-mentioned areas and the areas of Kommadi, Bakkanapalem, PM Palem, IT Park area, Visalakshinagar & other surrounding areas lying on the outskirts of the city.

These areas on the outskirts are also where the majority of demand for buying or renting houses is centered. Earlier, customers used to seek properties adjacent to the beach, sea-facing view units or situated close to the beaches of Vizag, but now brokers and realty agents say that more than half of the new customers are preferring units that lie on the outskirts or Hyderabad. As the demand for residential units increases in areas on the outskirts of Visakhapatnam, the rental prices have also increased significantly as an effect.

Earlier, 6-8 years ago, rental prices in outskirt areas like Yendada, Anandapuram, Kommadi, Sagarnagar & Midhilapuri Vuda Colony cost approximately ₹8,000 to ₹10,000 per month for a moderately sized 2BHK apartment. Currently, the rent for a moderately sized 2BHK unit in the same areas has increased by more than 2 times and can cost anywhere between ₹16,000 to ₹30,000 depending on the amenities and features that come with the apartment. The cost of raw materials essential for construction has also increased significantly in AP and this has caused slowdown or even halting of construction projects across the state.

This slowdown can cause a sharp rise in demand which will be offset by a drop in the supply i.e., there will only be a few new projects with units ready for occupation and thus the rental & apartment prices can potentially increase even further. Builders have asked the state government of Andhra Pradesh to resolve the issue of increasing cost of raw materials needed for construction purposes but the government has not responded with a potential solution yet.

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