In Visakhapatnam, middle-income homebuyers are increasingly vocal about the urgent need for policy reforms to tackle the escalating property costs in urban areas. As housing prices soar, many prospective buyers express frustration over their inability to purchase homes within city limits. This sentiment is echoed by GVS Prabhakar, an accountant with a take-home salary of ₹80,000, who highlights the challenges of being priced out of the market. He emphasizes that a lack of efficient urban transport systems further complicates the situation, making distant properties less appealing.
The President of the Confederation of Real Estate Developers’ Associations of India (CREDAI) Visakhapatnam chapter, E. Ashok Kumar, has called upon the government to implement a transparent and clear affordable housing framework. He argues that the rising property prices in the Greater Visakhapatnam Municipal Corporation area have made homeownership increasingly unattainable for salaried families. With apartment prices varying significantly across different locations, Kumar insists that a well-defined affordable housing policy is essential not only for homebuyers but also to promote stable growth within the housing sector.
In India, affordable housing is typically defined as properties priced at or below ₹45 lakh, with size restrictions of approximately 60 square meters in metropolitan areas and 90 square meters in non-metros. These criteria aim to assist the Economically Weaker Section (EWS), Low Income Group (LIG), and segments of the Middle-Income Group (MIG), often qualifying for government schemes such as the Pradhan Mantri Awas Yojana. However, Kumar points out that in rapidly developing cities like Visakhapatnam, the existing thresholds for affordable housing are increasingly misaligned with current market realities. The rise in land and construction costs necessitates a reevaluation of these limits to ensure they remain relevant and accessible.
Kumar further notes that while demand for housing persists, affordability poses a significant challenge, with many first-time buyers being excluded from the formal housing market. He explains that the prevailing definition of affordable housing fails to capture the economic pressures faced by potential homeowners in expanding urban centers. High land prices, increased material costs, and regulatory charges have inflated project costs, pushing many middle-segment developments beyond the reach of policy benefits. To address these issues, Kumar suggests that developers are eager to collaborate with the government on initiatives such as expedited approvals, reduced stamp duty, and streamlined GST. By enhancing infrastructure in emerging residential corridors, project costs could be lowered, thereby making homeownership more attainable for middle-income families.