Real estate prices set to soar in Amaravati with fillip from new govt

Land prices in Amaravati started inflating two months before the 2024 simultaneous Lok Sabha and Assembly polls, anticipating Naidu's win

By Newsmeter Network  Published on  16 Jun 2024 6:20 AM GMT
Real estate prices set to soar in Amaravati with fillip from new govt

Amaravati: After a lull of five years, real estate prices in Andhra Pradesh's Amaravati region are set to soar with several land dealings expected to close as the regime in the state transitioned from YS Jagan Mohan Reddy-led YSRCP to N Chandrababu Naidu-helmed NDA, breathed new life into the hitherto abandoned city project.

The Andhra Pradesh Capital Region Development Authority has already notified eight tenders, calling for jungle clearance along several roads in Amaravati even as Chief Secretary Neerabh Kumar Prasad, accompanied by other key officials such as CRDA Commissioner Vivek Yadav, has already visited the region to take stock of the situation.

YV Ramana Rao, president, Andhra Pradesh chapter, Confederation of Real Estate Developers Association of India (CREDAI) claimed that land prices in Amaravati started inflating two months before the 2024 simultaneous Lok Sabha and Assembly polls, anticipating Naidu's win.

According to the CREDAI office-bearer, up to 50,000 acres of land inventory is available in and around Amaravati, including government and private lands.

From trending around Rs 15,000 per sq yard, Rao said they are commanding a price of Rs 25,000 per sq yard now, pointing out that they have touched the prices last seen during the erstwhile TDP government between 2014 and 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.

He noted that the state government has already started working on some unfinished buildings in which up to 80 per cent work was completed such as residential quarters for bureaucrats, legislators and judges.

Observing that thicket clearance work, illumination and repair work have already begun in Amaravati, Rao said in a year's time the area will become very beautiful but called for government cooperation.

"What we need is infrastructure from the government like roads, drainage systems and power. These are the main things. Once the government provides these three things then we cannot catch the prices," said Rao, noting that these will catalyse private investment and development.

Highlighting that real estate businessmen will embrace this opportunity, Rao also wished for a longer tenure for the TDP-led government beyond 2029 as it 'will instill investor confidence in them.'

P Durga Prasad, 55, a small-time real estate businessman from Undavalli village in Guntur district is gung-ho, expecting the real estate landscape to rise like a phoenix in Amaravati area.

"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," Durga Prasad claimed.

Meanwhile, enthused by the new government taking over several villagers who pooled their lands for the capital city many years ago are hoping for happier times ahead.

Reportedly, several of them have also called off their years-long agitation, demanding the installation of a single capital in Amaravati, with renewed hope in the new government.

Jonnalagadda Ananda Rao, 36, 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, said people from all sections across the 29 villages have voluntarily started thicket clearance, deploying earthmovers using their own meagre resources without waiting for the government to step in.

"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 said good times have arrived for farmers in the capital area, farm labourers and others and vowed to extend full support to the new CM N Chandrababu Naidu, for attracting investments.

Inputs from PTI

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