Real Estate Prices in Amaravati Set to Soar as New Government Takes Charge

With the transition from YS Jagan Mohan Reddy-led YSRCP to N Chandrababu Naidu’s NDA, real estate prices in Amaravati are expected to rise significantly, spurred by renewed government activity and infrastructure development.

Amaravati, Bollywood Fever: After a five-year lull, real estate prices in Andhra Pradesh’s Amaravati region are poised to soar. The regime transition from YS Jagan Mohan Reddy-led YSRCP to N Chandrababu Naidu-helmed NDA has breathed new life into the previously stalled city project.

The Andhra Pradesh Capital Region Development Authority (APCRDA) has already issued eight tenders for jungle clearance along several roads in Amaravati. Chief Secretary Neerabh Kumar Prasad and CRDA Commissioner Vivek Yadav have visited the region to assess the situation.

YV Ramana Rao, president of the Andhra Pradesh chapter of the Confederation of Real Estate Developers Association of India (CREDAI), noted that land prices in Amaravati began inflating two months before the 2024 simultaneous Lok Sabha and Assembly polls, in anticipation of Naidu’s win. Rao highlighted that land prices, previously around ₹15,000 per sq yard, have now surged to ₹25,000 per sq yard, matching prices last seen during the previous TDP government (2014-2019).

“Real estate boom has already started. It (land prices) will keep increasing on a yearly basis and we are expecting that in 18 months the prices will double,” Rao told PTI.

The state government has commenced work on unfinished buildings, including residential quarters for bureaucrats, legislators, and judges, with up to 80% of the work already completed. Thicket clearance, illumination, and repair work have also started in Amaravati, with the area expected to become significantly more attractive within a year, provided the government cooperates.

Rao emphasized the need for infrastructure improvements from the government, such as roads, drainage systems, and power, which he believes will catalyze private investment and development. He expressed hope for a longer tenure for the TDP-led government beyond 2029 to instill investor confidence.

P Durga Prasad, a small-time real estate businessman from Undavalli village in Guntur district, expressed optimism about the real estate market’s revival in Amaravati. “In the last five years, I could not close even a single real estate deal but it will pick up now, especially from January 2025. Real estate prices will triple to compete with Bengaluru and Hyderabad. People will also buy more. Amaravati is the capital, there is no doubt about it,” Prasad claimed.

Enthused by the new government, several villagers who pooled their lands for the capital city years ago are hopeful for better times ahead. Many have called off their long-standing agitation demanding a single capital in Amaravati.

Jonnalagadda Ananda Rao from Mandadam village, who committed half an acre of land, said, “Some villagers have called off their agitation while some are still continuing.”

Sai Prasad from Thulluru, a capital region village, noted that people across the 29 villages have voluntarily started clearing thickets, using their own resources without waiting for government intervention. “We are all doing it very happily because all these five years we have suffered. So many families have been ravaged. Amidst these circumstances, these great election results came. And the new government has also assured that Amaravati will be the capital,” Sai Prasad claimed.

He further added that good times have arrived for farmers, farm laborers, and others in the capital area, and pledged full support to new CM N Chandrababu Naidu to attract investments.

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