Visakhapatnam: The residential real estate market in Visakhapatnam witnessed a mixed performance between 2019–20 and 2023–24, with an 8% decline in new residential supply, according to PropEquity’s ‘Tier II Residential Overview’ report. The city recorded an average annual supply of 4,977 units, ranking 8th among the top 10 tier-II cities in terms of new supply.
The decline in new supply is attributed to saturation in key residential zones, economic fluctuations, delays in project approvals, and uncertainty over the state’s capital location. While Visakhapatnam initially saw a surge in demand following the 2019 executive capital announcement, growth slowed in the last two years leading up to the 2024 elections.
Despite the slowdown, Visakhapatnam ranked 10th in absorption growth with a 63% increase from FY2020 to FY2024, outperforming Vijayawada and Guntur, which ranked 24th and 25th, respectively. CREDAI Visakhapatnam chairman KSRK Raju noted a decline in NRI investment, though upcoming projects from TCS and Google could revive market momentum.
PropEquity ranked cities based on market grade, price appreciation, absorption rate, supply changes, market size, and project completion rates. Ahmedabad, Bhubaneswar, and Vadodara emerged as top-performing tier-II cities.
