With Visakhapatnam all set to become the Executive capital of the State, rents of apartments and individual houses are likely to witness a spike in the coming months.
Especially the houses located near National Highway-16, Anandapuram, Madhurawada, Yendada, PM Palem, Kommadi and a few other areas close to beach road including MVP Colony, Kirlampudi Layout are likely to be increased in case of shifting of CMO and other departments at Rushikonda Special Economic Zone (SEZ), as speculated.
Already, a few houses have started to increase rents from the beginning of the year after the three-capital debate kickstarted during Dec 2019. Since there was no clear announcement regarding the capital, many residents returned back to the city due to COVID-19 impact, there was no rise in rentals during the beginning of financial year. However after Governor giving his approval for the bill and speculations of State level I-Day celebrations to be hosted in the coastal city, some owners whose houses have been vacant feel this is the right time to make a move.
“Earlier, we used to give our two-BHK for ₹7,500. The house is vacant now and we have decided to give it for ₹9,000. In future, we may increase further keeping in the view of demand and how other apartments have increased the rentals,” K Prasad, a resident of Madhurawada.
However, some owners feel that it is too early to decide about increase the rents and they are still under discussions. Some say that families have been impacted financially due to COVID-19 and it is not at all the time to take advantage.
With the availability of Public Sector Units (PSUs), educational institutions, private business establishments, a large number of people have migrated to Vizag and have been residing since many years. These residents especially middle-class employees, students fear over increase in the rents in the coming months which could cause additional financial burden.
“This may be too early to increase the rents. But definitely there could be a hike once government departments start to shift, may be by Dec 2020. Most of the people want to stay nearby office, NH-16 or beach road, which increases the demand so as rent. However the hike may be seen only in some areas, not all parts,” said S Raju, a rental broker from the city.
Vice President of AP Federation of Resident Welfare Association (APFERWAS), KSR Murthy said that even before COVID-19, rents of apartments and individual houses in core areas of Visakhapatnam is high due to similar to cities like Hyderabad. “Definitely there could be increase in prices in Northern part of the district, especially Zone I since administrative blocks likely to house near Rushikonda,” he said.
