As Chandrababu Naidu clinches victory in Andhra Pradesh and pledges to reinstate Amaravati as the state capital, the local property market is now experiencing a resurgence.
· The latest developments in the region have sparked optimism and enthusiasm, heralding a new era of growth and prosperity for Amaravati’s real estate sector.
· With the recent change in government Amaravati is experiencing a remarkable ‘V-shaped’ recovery, with property prices surging to Rs 40,000-50,000 per square yard.
· Property Consultants anticipates a shift in investor focus from Hyderabad to Amaravati, with prices expected to escalate by another 10-15% following the government’s formal announcement on the new capital.
· Anticipation is now mounting for Prime Minister Narendra Modi’s forthcoming endorsement of Amaravati during N. Chandrababu Naidu’s upcoming swearing-in ceremony as Chief Minister.
As Chandrababu Naidu clinches victory in Andhra Pradesh and pledges to reinstate Amaravati as the state capital, the local property market, once teetering on uncertainty, is now experiencing a resurgence, attracting investors and developers alike. The latest developments in the region have sparked optimism and enthusiasm, heralding a new era of growth and prosperity for Amaravati’s real estate sector.
Since the announcement of Naidu’s triumph, Amaravati’s land prices have witnessed a staggering 100% surge, while existing projects have marked up prices by 10-20%, according to industry insiders. Gaddipati Hari Babu, Lahari Infrastructure’s Chairman and President of Naredco National, predicts a further 50% increase in land prices over the next year, reflecting the renewed confidence in the market.
Recalling the past, Babu notes the significant fluctuations in land prices—from a peak of Rs 40,000 per square yard during Naidu’s initial plans for Amaravati to a low of Rs 13,000-14,000 after Jagan Mohan Reddy assumed power and abandoned the capital project. However, with Naidu’s return, the trajectory seems poised for an upward climb once again.
Gummi Ram Reddy, Secretary at Credai, echoes Babu’s sentiments, projecting a short-term rise of 20-50% and eventual doubling of property prices in Amaravati. Mudit Gupta, City Lead at Anarock Property Consultants, anticipates a shift in investor focus from Hyderabad to Amaravati, with prices expected to escalate by another 10-15% following the government’s formal announcement on the new capital.
The dramatic surge in Amaravati’s real estate market, coupled with the overwhelming victory of the TDP-led alliance, has dispelled uncertainties surrounding the city’s future, reigniting buyer interest and invigorating the local economy. However, despite the spike in demand, actual transactions remain subdued due to limited sellers in the market, highlighting the need for further policy support and infrastructure development.
Anticipation is now mounting for Prime Minister Narendra Modi’s forthcoming endorsement of Amaravati during N. Chandrababu Naidu’s upcoming swearing-in ceremony as Chief Minister on June 12. Modi’s backing is expected to bolster investor confidence and catalyze further growth in the region.
Reflecting on past setbacks, Amaravati’s real estate market endured a tumultuous period, witnessing a sharp decline of 60% to 75% in property values after Jagan Mohan Reddy proposed a plan for three separate capitals in 2019. This proposal cast a shadow of uncertainty over Amaravati’s prospects, dampening investor sentiment and stalling development initiatives.
However, with the recent change in government and Naidu’s resumption of leadership, Amaravati is experiencing a remarkable ‘V-shaped’ recovery, with property prices surging to Rs 40,000-50,000 per square yard, up from Rs 10,000-15,000 before the elections. Naidu’s ambitious vision for Amaravati as a greenfield capital, coupled with international pledges of support, promises to reignite the city’s development momentum and position it as a beacon of growth in the region.
In light of these developments, Amaravati’s real estate sector stands poised for unprecedented growth and prosperity, offering lucrative opportunities for investors and developers keen to capitalize on the city’s resurgence under Naidu’s leadership.
(With inputs from agencies)
