Visakhapatnam’s real estate sector has taken a significant hit, recording a 37% drop in home sales during the first quarter of 2025 — the steepest decline among all tier-2 cities in India. This sharp downturn has raised concerns among developers, investors, and homebuyers alike, signaling a slowdown in what was once a steadily growing market.

Industry analysts attribute this slump to a combination of rising interest rates and increasing property prices, which have made home ownership less affordable for many middle-class buyers. With bank loan EMIs climbing and disposable incomes shrinking, the demand for residential properties has weakened considerably.

Additionally, delays in project completions, higher registration fees, and cautious buyer sentiment have further contributed to the declining sales figures. While Visakhapatnam continues to be an attractive city due to its coastal charm and infrastructural developments, affordability has emerged as a key challenge in the current market climate.

Real estate experts suggest that unless corrective measures are taken—such as price rationalization, financial incentives, or reduced interest rates—the market may take longer to recover. Developers are being urged to adopt flexible pricing strategies and offer buyer-friendly schemes to stimulate demand.