Following Chandrababu Naidu's return as Chief Minister of Andhra Pradesh, Amaravati's real estate market has experienced a significant surge, with property prices rising dramatically. Naidu's vision to transform Amaravati into a world-class capital city, which stalled after his 2019 electoral loss, is now being revived. This includes ambitious infrastructure projects and sustainable urban planning. The renewed development has spurred increased real estate activity and investor confidence. However, challenges such as financial resource management and pending litigation with local farmers remain. Overall, Naidu's leadership is reigniting hopes for Amaravati's growth and development.
The real estate market in Amaravati has seen a rise in property prices following the election of TDP leader Chandrababu Naidu as the Chief Minister of Andhra Pradesh for the fourth time. Property prices in the city have skyrocketed from INR 10-15,000 per square yard to INR 40-50,000 per square yard in just a few days. This price hike is a reflection of renewed investor confidence and optimism about Amaravati's future as the state capital.
Chandrababu Naidu's vision for Amaravati began in 2014, following the split of Andhra Pradesh to form Telangana. Naidu announced Amaravati as the future capital and committed over INR 50,000 crore to its development. The city, designed by a consortium of Singapore firms, including Surbana Jurong, was envisioned as a greenfield project spanning 217 square kilometres, featuring sustainable urban planning, wide roads, and advanced infrastructure. However, development stalled after Naidu lost the 2019 elections, leaving Amaravati in a state of limbo.
With Naidu's return, there is a renewed focus on completing the unfinished projects in Amaravati. Engineers and contractors have been instructed to resume work on key infrastructure developments. The ambitious plans include building a world-class capital city with facilities and services rivalling those of Singapore. The master plan includes wide roads, flyovers, underpasses, an international airport, and sustainable transportation options such as e-buses, water taxis, metros, and bicycles. Over a dozen urban plazas powered by renewable energy are also part of the blueprint.
The announcement of Amaravati's revival has led to a surge in real estate activity. Local real estate brokers report a significant increase in demand for both commercial and residential properties. Areas like Velgapudi, Kondampalem, and localities near educational institutions such as VIT and Amrutha have seen notable interest. According to the Andhra Pradesh Capital Region Development Authority, plot registrations in Amaravati have surged, with 43,669 plots registered and 21,095 pending registration in recent months.
Naidu's track record of transforming Hyderabad into a global IT hub has boosted the confidence of real estate developers and investors. They anticipate significant infrastructure development in the coming years, which has been on hold. The real estate sector also expects the new government to revise land 'circle' rates, which were last updated in 2022 following the formation of new districts.
The state government plans to acquire about 12,000 acres of land for sale, with prices reaching INR 30,000 per square yard. This move is expected to generate significant revenue, helping to fund the city's development. However, several challenges remain, including resolving pending litigations with farmers in the Guntur district and managing the state's financial resources. The estimated cost to build infrastructure and government buildings in Amaravati has escalated to nearly INR 40,000 crore, doubling the initial estimate of INR 21,000 crore.
In conclusion, Chandrababu Naidu's return as Chief Minister has breathed new life into the vision of Amaravati as a world-class capital city. While challenges remain, the renewed focus on development and the surge in property prices signal a promising future for Amaravati's real estate market. Investors and developers are hopeful that Naidu's leadership will drive the city's growth and transform it into a thriving urban centre.
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