Affordable homes increasingly out of reach for Vizag’s middle class
Buying a home is becoming harder for middle-class families in Visakhapatnam as land prices, construction costs and demand for homes in well-connected areas continue to rise.
The city remains more affordable than many major metropolitan centres, but buyers say it is becoming difficult to find homes at reasonable prices with good connectivity and access to basic facilities.
“The EMI should not consume most of our monthly income. We are finding affordable flats only when we look towards the outskirts,” said a salaried homebuyer.
Property prices vary across the city. Developing areas offer cheaper homes, while established neighbourhoods and premium residential corridors command higher prices. Buyers must also pay registration charges, parking fees, maintenance deposits and other expenses, adding to the overall cost of a property.
Developers say higher land prices are a key reason for the rise in property costs. Large land parcels are becoming scarce in established areas. As a result, builders are turning to high-rise projects to spread land costs across more housing units.
“Land and construction costs have increased substantially. Buyers continue to look for homes within a limited budget, but reducing prices without compromising on quality and amenities is becoming increasingly difficult,” said a city-based developer.
The shift towards apartment living is visible along corridors such as Madhurawada-Kapuluppada, Anandapuram-Kommadi and Bhogapuram-Bheemili.
As prices rise in established areas, many buyers are looking towards Anandapuram, Bheemili, Kothavalasa and other developing locations. Land and housing costs are lower in these areas, but buyers may have to spend more time travelling to workplaces and schools.
“For a middle-class family, affordability also means being able to reach the workplace and schools without spending hours on the road,” said another prospective buyer.
Developers expect housing demand to grow as new infrastructure opens up areas along the city’s northern growth corridor.
The Visakhapatnam Metropolitan Region Development Authority (VMRDA) has announced plans to develop about 25,000 plots in middle-income group layouts in 2026.
It has also proposed gated apartment projects at Midhilapuri and Vepagunta through a public-private partnership. The projects are expected to offer 2BHK, 2.5BHK and 3BHK homes for middle-income families.
For buyers, the cost of a home is not limited to its sale price. The EMI, location and daily travel costs also determine whether a property fits within a family’s budget.
“Owning a home is still a priority, but the price, EMI and location all have to make sense. A house should not come at the cost of the rest of the family budget,” said a prospective buyer.
As Visakhapatnam expands, the challenge for developers and public agencies will be to provide homes that middle-class families can afford without pushing them too far from workplaces, schools and other essential services.