The real estate market in Amaravati has experienced a dramatic surge in prices, ranging from 50% to 100% in just three days following the election results. The overwhelming victory of the alliance comprising the Telugu Desam Party (TDP), Jana Sena, and the BJP has dispelled uncertainties about Amaravati’s future as the state capital, reigniting buyer interest in the area.
Despite this renewed interest, actual transactions are minimal because there are very few sellers in the market. Anticipation is high for Prime Minister Narendra Modi to make a supportive statement regarding Amaravati during N. Chandrababu Naidu’s swearing-in ceremony as Chief Minister, scheduled for June 12 near the All India Institute of Medical Sciences (AIIMS) in the capital region.
Real estate values in Amaravati had plummeted by 60% to 75% after the outgoing Chief Minister, Y.S. Jagan Mohan Reddy proposed a plan for three separate capitals in 2019. This proposal dampened the enthusiasm and halted the momentum of what was once touted as a futuristic capital city. However, with the recent change in government, the realty sector in Amaravati is witnessing a rapid ‘V-shaped’ recovery in terms of prices.
Currently, land prices in Amaravati have surged to Rs 40,000-50,000 per square yard, up from Rs 10,000-15,000 per square yard just before the elections, according to reports.
Chandrababu Naidu, during his previous tenure as Chief Minister, envisioned Amaravati as a greenfield capital, with plans for an investment exceeding Rs 50,000 crore. His vision included developing nine theme cities and 27 townships, which had sparked a significant construction boom.
The Master Plan for Amaravati attracted pledges of $300 million from the World Bank and $200 million from the Asian Infrastructure Investment Bank. However, these plans stalled after the TDP lost the 2019 assembly elections, and the YSRCP came to power under Jagan Mohan Reddy. This shift in leadership brought development in Amaravati to a halt, effectively turning the area into a ghost town.
Now, with Naidu is set to take the reins as Chief Minister again, there is renewed optimism and a sharp uptick in real estate activity and prices in Amaravati.
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Will Modi mention Amaravati at Naidu’s swearing-in? Land prices zoom in anticipation
