VISAKHAPATNAM: Real estate traders in Visakhapatnam city and surrounding areas are hopeful of a recovery in demand for residential and office space from June (post election results) onwards. However, experts said the economic slowdown is not going to ease anytime soon and demand will pick up only in the medium term after the economy recovers. Most of the real estate traders and real estate investors in the city and other parts of the state are waiting for the election results to be announced on June 4. Real estate traders have said that if YSRCP wins the elections, they will make Visakhapatnam the state capital and if the TDP-BJP-JSP alliance wins, they will develop Amaravati as the state capital. However, many feel that the growth of the real estate sector will depend on many factors. The real estate sector has faced tough times in Visakhapatnam and surrounding areas in 2023 due to various factors including soaring house prices, rising interest rates and difficulty in buying a home. “We had hoped that the Chief Minister’s Office (CMO) and other key departments of the state government would be relocated to Visakhapatnam city (announced as the administrative capital of the state by the YSRCP government) in a phased manner by 2023 to boost the real estate sector in Visakhapatnam city. But nothing has been done. Non-Resident Indian (NRI) investment in real estate has declined,” they added. “There is currently a big challenge due to the slowdown in the real estate sector in the city and surrounding areas. We strongly feel that no matter which party comes to power, the new government can confidently take strong policy measures to create jobs through the IT or manufacturing sector to show its seriousness in promoting the real estate sector,” said E Ashok Kumar of Heritage Developers. “A vibrant economy is key to the development of any region as it provides a lot of opportunities, safe and healthy localities and supports financing of key infrastructure and services. “The Vizag region has not had a vibrant economy for the last few years,” said a real estate industry expert. “Some real estate players are increasing the prices of properties (flats and plots) in the city citing various reasons. But a majority of Vizag residents (salary earners) cannot afford to buy property, leading to a slump in the real estate sector. For example, a 1,300 sq ft apartment in Vizag city costs around Rs 1 crore. We are not convinced that the new government will have any impact on the real estate sector,” the expert added.
