Rising land prices push Vizag towards vertical housing

Visakhapatnam: Rising land prices and a dwindling supply of well-situated plots have accelerated a shift in the city's residential market. Developers are increasingly prioritizing vertical housing — 40 to 50-storey complexes — over low-rise formats of 5 to 15 floors. With new investments announced in Vizag, land values in prime locations have climbed to levels where low-rise projects are often unviable. Vertical housing benefits buyers with lower per-square-foot costs (₹1,000–₹1,500 less) and enhanced facilities compared to standalone complexes.High-rise construction improves land-use efficiency and keeps projects financially viable. Developers attribute the trend to the need to spread steep land acquisition costs across more units, while evolving buyer expectations also play a role. Shared amenities and construction efficiencies further enhance value.
The Indian Navy's 10-storey complexes at the Naval Coast Battery once set the benchmark for Vizag housing. Now, the Navy has initiated a 41-storey sailors' block at Nau Sena Bagh, poised to be the tallest building in the city. Currently, a 35-storey complex in Seethammadhara holds the record in Vizag and north Andhra."Vertical housing offers a tangible cost advantage for homebuyers," said E Ashok Kumar, President of CREDAI Visakhapatnam. "Sharing high land costs across many apartments keeps ticket sizes accessible compared to low-density villa projects." He noted that demand patterns reflect preferences for security, organized parking, and integrated amenities.Urban planners highlight stark differences in land utilization: one acre yields about 31 two-bedroom apartments at an FSI of 1.0, rising to nearly 126 units at an FSI of 4.0. By contrast, horizontal layouts accommodate only 8–14 villas.Housing demand remains steady, driven by IT and allied sector growth along emerging corridors. Vertical development is gaining traction in micro-markets such as Madhurawada–Kapuluppada, Anandapuram–Kommadi, Bhogapuram–Bheemili, and Yendada–Rushikonda, aided by road expansion and infrastructure upgrades.Parts of Anandapuram and Bheemili, 20–30 km from Vizag, have seen sharp land price hikes after Google and other IT firms announced investments. One-acre plots that cost ₹2.5–3.5 crore a few months ago now command ₹5–6 crore.Standalone complexes currently sell at ₹6,000–6,500 per sq ft, while high-rise units range between ₹4,000–4,500 per sq ft, with added amenities like pools, gyms, and clubhouses.Planners emphasize that regulated vertical growth aligned with civic capacity can conserve land, lower service costs, and reinforce public transport. Developers urge sustainability measures such as mandatory sewage treatment plants and rooftop solar installations. Clearer regulations and faster approvals, they add, will protect timelines and shape a skyline that reflects Vizag's evolving urban profile.