Real estate prices in Amaravati surged 50-100% after the TDP, Jana Sena, and BJP alliance's election victory, reviving buyer interest. This recovery follows a sharp decline when outgoing Chief Minister Y.S. Jagan Mohan Reddy proposed three capitals in 2019. Minimal transactions are occurring as sellers await a potential statement from Prime Minister Narendra Modi supporting Amaravati at N. Chandrababu Naidu swearing-in. TDP's Nara Lokesh confirmed plans to adhere to the original master plan, aiming to complete trunk infrastructure. The anticipation of central government institutions setting up offices in Amaravati further fuels land demand and prices.
Land prices in Amaravati have risen dramatically, increasing by 50% to 100% within just three days following the election results. This spike is attributed to the overwhelming victory of the TDP, Jana Sena, and BJP alliance, which has dispelled uncertainties about the capital's future and reignited buyer interest. Despite the rising prices, actual transactions remain minimal due to a shortage of sellers. Many are awaiting a potential statement from Prime Minister Narendra Modi in support of Amaravati during N. Chandrababu Naidu's swearing-in ceremony as Chief Minister scheduled for this week in the capital region.
Farmers anticipate further price increases if Modi makes a positive statement. Land prices had previously plummeted by 60% to 75% after the outgoing Chief Minister Y.S. Jagan Mohan Reddy announced plans for three capitals in 2019, causing the initial excitement around the proposed capital city to dissipate. However, with the change in government, the real estate sector in Amaravati is experiencing a 'V' shaped recovery.
Ginjupalli Subbarao, a local farmer, noted a significant uptick in interest from prospective buyers, a stark contrast to the market conditions six months prior. He reported that land prices have rebounded to 2018 levels since the election results favoured the alliance. During the campaign, Naidu promised to revive Amaravati if elected, and TDP national general secretary Nara Lokesh confirmed there would be no changes to the master plan created before the party lost power in 2018. Lokesh emphasised that the existing master plan is the best strategy for developing the city on a self-sustaining model.
Despite INR 10,000 crore investment, the previous TDP government did not complete all essential infrastructure, including roads, drains, power, and water supply. Naidu now plans to finish these trunk infrastructure projects, providing a solid foundation for private investors and developers to commence operations.
Several central government institutions, such as the Reserve Bank of India, Comptroller and Auditor General, CPWD, and various public sector undertakings like NTPC, ONGC, Indian Bank, and State Bank of India, have already acquired land in Amaravati for regional offices. Naidu aims to expedite the establishment of these institutions to kickstart economic activities in the area.
The demand for land near these institutions and around private universities, which have already established campuses, is driving prices higher. Farmers who opposed the previous government are pleased with the renewed interest from buyers, while investors are eager to purchase land, fearing they might miss out on the booming market, as noted by Gopal Yadav, a realtor in Amaravati.
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