by THO
Land prices in Andhra Pradesh’s greenfield capital city of Amaravati, which recorded a sharp surge when Chandrababu Naidu-led Telugu Desam Party returned to power with a thumping majority in the state assembly polls in June 2024, have now stabilised and transactions have increased in the region, according to experts who spoke to HT.com.
“Property transactions in Amaravati, largely land-related, have risen by 6-8% year-on-year in recent times,” said Noman Ellahi, Country Head, Square Yards.
Furthermore, with the region expected to see large-scale developmental activity starting 2025 as funds allocated by national and international agencies begin to flow in, prices are set to grow further, said experts.
“Land prices doubled when the current government was formed, and they’re likely to double or more than double further over the next 24 months,” said G Hari Babu, national president of NAREDCO.
With Amaravati back in the limelight, the region is receiving renewed interest from both developers and investors, others said.
“Prior to the Jagan Reddy-led government, the market here witnessed heightened real estate activity and evoked high investor interest. The announcement of the capital city then led to a two-fold rise in property values. However, there was a visible slowdown, and demand became tepid in the last few years with the change in guard. This also impacted prices with many areas seeing a dip in land prices,” explained Santhosh Kumar, Vice Chairman, ANAROCK Group.
Land prices in Amaravati
“At the boom time before 2019, the land values in Amaravati hovered anywhere between ₹20,000 – 55,000 per square yard but came down by at least 60-70% in the last five years. However, with the new government at the helm we have seen a substantial increase in prices – similar to what they were before 2019,” Kumar added.
Also Read: With Amaravati back in focus after Naidu as CM, what happens to Hyderabad real estate prices?
Currently, the average land prices in Amravati have reached anywhere between ₹35,000 and ₹55,000 square yard, as per data sourced from Anarock. It is similar to what it was in 2019 during the previous stint of the Naidu government, the consultant said.
