Boom in Visakhapatnam Real Estate

Visakhapatnam, widely known as Vizag is situated in Andhra Pradesh on the Eastern shore of India. This port city is soon becoming an industrial hub of the east coast of India. Visakhapatnam is a beautiful city with majestic hills, valleys and golden beaches along the Bay of Bengal coastline.

The large-scale real estate developments in Hyderabad, the city of nawabs is almost on the verge of completion. Next in line for real estate boom is Visakhapatnam popularly called ‘The Jewel of the East Coast’. It is the home of the Eastern Naval Command of the Indian Navy and has been thus, the best port in the country. Vizag is carving its position as the next IT hub of Andhra Pradesh after Hyderabad at a fast pace.

Today is the time of development for tier-III and tier-IV cities as metros are congested and tier-II cities are almost choked too. Visakhapatnam has become an important upcoming city for the Eastern India as IT industries are now swiftly entering in the city. Vizag offers easy availability of skilled labor, infrastructure and cost-effective real estate making it all the more attractive for industrial setups.

The boom in property building and the consequent hike in property prices have made this city a favorite with real estate developers. The sky rocketing prices of real estate in Hyderabad and lack of land for further expansion shifted the attention of realty developers to this port city of Andhra Pradesh. Not only this, the growth of technology sector i.e. coming up of software companies and SEZs in the city further spiraled up the interest of property investors. Various other projects by leading developers are adding to the boost in Visakhapatnam property. Some of the other reasons are:

The declaration of property projects by Encore India and Tata Consultancy triggered a hike in real estate prices while encouraging the interests of property investors in Vizag real estate. VUDA has launched mega housing projects that would incorporate average and large sized apartments in collaboration with Singapore based promoters at a cost of Rs. 120 crores.

Construction of individual houses and bungalows in the city are competing with high rise apartments in Vizag. These high quality residential developments are fostering the demand and supply of real estate in the city. Leading hospitality chains are also coming up with luxury hotels to address the need for expansion of hospitality sector.

Mega Chemical Industrial Estate (MCIE), a mega chemical complex is also proposed in Vizag in collaboration with the Indian Institute of Chemical Technology, Hyderabad. Other residential constructions include a duplex homes project by Maurya Developers, Green Valley Township in Murali Nagar, an integrated township named Sunray Village by Sunray Properties, etc.

Visakhapatnam is witnessing an unprecedented growth due to all the above factors. It has been welcoming this quick appreciation of land rates from more than last five years. The growing NRI investments in luxury villas, apartments and farmhouses in the green environs of the city are also adding further to the growing real estate prices.

Even the retail sector is advancing with the setting up of large number of malls in the city. Few more shopping complexes are under construction and are expected to complete in next 6 months. It will soon see the prevalent entertainment culture with more hanging-out spots being planned for the city.

The real estate in Vizag, especially in residential sector is multiplying and so are the investments. It is just the right time to invest in property in Visakhapatnam as this upcoming IT hub on the east coast of the country.

Luxury Apartments – The Next Big Boom

The unpredictable nature of the real estate business has seen a lot of highs and lows in the sale of properties. While many believe the real estate industry is in a bit of a slump across the nation, certain cities have been able to defy odds and post positive results.

In India, the city Kolkata witnessed an increase in the sale of housing units in the last quarter. The city saw a 32% rise in units sold when compared to Q2 in the year 2015, based on data collected from a realty research agency.

Other reports suggested that the real estate market saw a 17% rise in the sale of properties in all the eight metros combined. Researchers stated the reason for the growth in sales over the last quarter has been due to a drop in prices of projects.

Can luxury apartments be the game changer?

While real estate marketers have tried their best to build projects which cater to most, there are a range of projects coming up which target only a handful of clients. Luxury apartments and complexes are being built by real estate developers and these projects are extremely expensive compared to the other projects but with good reason.

Real estate marketers are bringing in top designers and architects from across the world to help design and execute these projects. Most complexes falling under the luxury category feature large sized apartments and duplex flats along with a range of great amenities.

Although expensive, luxury projects are seen as a jewel in the crown for real estate developers, something that can help them stand out from the competition and hopefully bring in a lot of revenue from sales.

Kolkata is also seeing its fair share of luxury projects being constructed. These projects are changing the landscape of the city thanks to its artistic designs. Even though the luxury market hasn’t been the bestselling segment in the city, there are high hopes for the projects.

Most regular apartment complexes feature 2 BHK and 3 BHK flats but luxury projects feature larger flats having 4 BHKs and a lot more to offer to prospective buyers. These flats, depending on the city, cost anywhere between 2 crores to 50 or 60 crores and take longer to sell than non-luxury apartments. Even a single flat sold brings in a large amount of money for the real estate developer.

While residents get the best facilities and cherish the grandeur of living in these luxury apartments, it still is a risk for the real estate developer – the flats can stay unsold for long periods of time. In an industry which has so many projects coming up, the need to have a project that gives the developer a unique identity is of the utmost importance. Since the rewards for building a luxury project outweigh the risks involved, it should lead to an even greater number of such projects coming up in the future.