Vizag’s Real Estate in Freefall SALES CRASH BY 37%!
Is this a wake-up call or a once-in-a-decade buying opportunity?
Visakhapatnam, which was once the jewel in the crown of Andhra Pradesh’s real estate boom, is currently making headlines everywhere. According to the most recent data from PropEquity, home sales in Q1 2025 fell by an astounding 37%, making it India’s worst-performing Tier-2 city.
The twist is that developers have severely curtailed new launches, not because consumers are retreating. Is There a Supply Crunch or a Demand Collapse?
Unexpectedly, demand isn’t the primary problem. Despite a decline in sales, prices are still rising throughout India, indicating that buyers are interested in upscale, roomy homes. Who is the true criminal in Vizag? a serious scarcity of supplies. While the rest of the nation accelerates, the city is stuck in neutral due to a lack of new launches and slow inventory.
Double Trouble: Vizag Experiences Declines in Volume and Value
Vizag’s real estate market is suffering even though many Tier-2 cities are expanding:
Volume of Sales: decreases by 37%
Value of Sales: decreases by 35%
Buyers, builders, and investors are all being impacted by this downturn, which is more than just a dip.
Tier-2 Cities Performance Snapshot
| City | Sales Growth / Drop |
| Lucknow | +25% |
| Coimbatore | +21% (Sales Value +52%) |
| Gandhinagar | +18% |
| Jaipur | -32% |
| Bhopal | -31% |
| Visakhapatnam | -37% (-35% Value) |
Why Are Prices Going Up Elsewhere?
The pattern is evident throughout India: fewer but larger sales. Luxury, lifestyle, and long-term investment properties are in high demand. Vizag, however, defies the trend; both sales and prices are declining, indicating a lack of momentum and a misalignment of expectations.
RBI Rate Cut: Will It Help Vizag?
Home loans became even more affordable after the RBI cut repo rates by 50 basis points. If developers seize the opportunity and begin releasing pertinent projects at competitive prices, that might rekindle demand.
Golden Ticket or Red Flag?
This is a moment of truth, not merely a market fad.
This might be the ideal moment for homebuyers to take a calculated risk.
It’s an opportunity for investors to take advantage of cheap opportunities.
It’s time for developers to change or risk falling behind.
Vizag can recover, but only if the market shifts to reflect what modern consumers actually desire.
