Vertical housing takes over Vizag’s skyline

Vertical housing seems to be taking over Visakhapatnam’s skyline. The surge in land prices as a consequence of shrinking availability of urban parcels has pushed Visakhapatnam into a ‘vertical-first’ era. Under the newly enacted Andhra Pradesh Building Rules, 2025-26, the threshold for high-rise classification has been raised from 18 meters to 24 meters. This strategic shift allows developers to build taller mid-rise projects without the immediate and often-delayed requirement of a Fire NOC for the lower floors, significantly speeding up construction timelines.

An acre can accommodate about 31 two-bedroom apartments at Floor Space Index (FSI) 1.0, but 126 at FSI 4.0, optimising the city’s limited coastal land. Horizontal layouts, on the other hand, yield only 8-14 villas, depending on plot size.

“The economics now demand height,” says E. Ashok Kumar, president of CREDAI-Visakhapatnam. “With land values peaking, horizontal projects are becoming a luxury of the past. High-rise development is the only way to spread the acquisition cost while providing the security and amenities modern buyers demand.”

Developers can now obtain initial approval for projects up to 24 meters, with structural designs vetted for the full proposed height from Day One.

Following national trends, where 63% of sales are now in the premium segment (above ₹1 crore), Vizag’s high-rises are increasingly catering to the high-income IT and industrial workforce in corridors like Madhurawada–Kapuluppada and the Bhogapuram–Bheemili stretches.

Beyond efficiency, these clusters are redefining the city’s urban character, aligning with the “Smart City” vision of reduced per-capita infrastructure costs and enhanced public transport connectivity.

While Visakhapatnam is growing rapidly, the trend has already set in some States. Maharashtra remains the undisputed leader in vertical housing in India. This is driven primarily by the Mumbai Metropolitan Region (MMR) and Pune.

Extreme land scarcity and high Floor Space Index (FSI) allowances in Mumbai have led to the highest concentration of skyscrapers in the country. Maharashtra hosts over 300 skyscrapers and thousands of high-rise buildings (defined as 35m+ or 12+ floors). Mumbai is not just the leader in India but a global contender for vertical density, said Mr. Ashok Kumar.

While cities like Hyderabad (which has no ceiling on FSI) and Noida are building taller, Mumbai’s sheer volume of vertical residential units remains unmatched. “Homebuyers now prioritise security, organised parking and shared amenities, which vertical housing delivers more effectively,” Mr. Ashok Kumar said.

“With well-located land becoming scarce, vertical growth offers advantages in amenities, maintenance, safety and accessibility. Horizontal projects largely appeal to those seeking larger spaces and greater independence,” said K. Srinivasa Rao, another builder.