Amaravati Real Estate Surges as Development Resumes Under Naidu Government

With the Andhra Pradesh government led by Chandrababu Naidu kick-starting construction in Amaravati, the real estate market is reviving in the Vijayawada-Guntur region. Developers hope for fresh growth due to infrastructure which reflects in increasing demand after a long standstill over the past years due to Andhra’s previous YSR Congress Party (YSRCP) regime.

A Resurgence After Years of Unrest:

It is also not the case that developers and real estate agents saw this coming – Naidu’s previous tenure (2014-2019) saw developers pouring money into the Amaravati capital region with the expectation of an economic boom. But the projects have faced hurdles after the Jagan Mohan Reddy government scrapped Amaravati’s capital city scheme and proposed a three-capital model. Many investors shifted their attention to Hyderabad, especially the western part, including Narsingi, Kokapet and Gandipet which saw a real estate boom. Many also turned to Visakhapatnam, designated the executive capital, but legal uncertainties impeded growth.

Increased Activity and Rising Land Values:

And now, after Amaravati’s development gained traction once again, the real estate activity has picked up to a great extent. Land prices in the Amaravati region have already doubled in the past six months, according to YV Ramana Rao, President of the Andhra Pradesh chapter of the Construction Developers’ Association, CREDAI. Land that had plummeted below ₹20,000 a square yard IS now selling at a premium while stalled projects are taking in buyers.

With land prices skyrocketing to ₹40,000–₹60,000 per square yard in Tadepalli, Undavalli and Mangalagiri, the trend is also seen here. Some developers expect these rates to reach ₹1 lakh per square yard in a year.

Increase in Confidence as Government Initiatives:

The Naidu government is pivotal in this renaissance considering that it quickened capital development and pumped in massive labour and resources. “The state has completed tenders to the tune of ₹20,000 crore and intends to float tenders for another ₹20,000-₹30,000 crores in the coming months,” added Ramana Rao.

The government also increased land registration charges from February 1, except for Amaravati. The hike has not curbed real estate activity either, demonstrating high investor confidence.

A Mega Metropolis In The Making:

In the future, the centre plans to create a “mega metropolis” by merging Vijayawada, Amaravati, Mangalagiri and Guntur over the next 20 years. State minister P Narayana suggested that the AP Capital Region Development Authority should be given more powers to shape the vision.

As new developments keep coming up, real estate professionals predict that the Mangalagiri-Guntur belt bodes well for stakeholders. If momentum remains positive, Amaravati will soon retrieve its lost glory as one of the prime real estate and economic hubs in South India.