Amaravati Realty heading towards development

Amaravati Realty heading towards development, The capital of Andhra Pradesh, Amaravati, is the dream capital of the people of Andhra. Since it was announced as the AP capital, discussions about real estate have been ongoing. Whether Amaravati will compete with Hyderabad in the future remains uncertain, but the planning, road map, and development discussions are certainly fueling many hopes among the people of Andhra Pradesh. However, due to chaotic decisions, the construction industry in Amaravati has been severely impacted in the past five years. No one has come forward to invest. After the change in government, what changes have occurred in the situation? Has the coalition government given a boost to the real estate sector? Are there now conditions to invest in Amaravati? How are the prices of plots and flats, and sales in the area? Which areas are expected to develop in the next ten years?

The capital region of Andhra Pradesh, Amaravati, is breathing new life. In the past decade, Amaravati has had a unique story—five years of progress followed by five years of setbacks, a tale that is exclusive to Amaravati. However, this phase is now becoming history. With the change in government, new enthusiasm has emerged for the capital of Andhra Pradesh. Amaravati is undergoing a complete transformation. The jungle clearance work within the CRDA limits has been completed, and authorities are busy finishing the pending tasks. The Andhra Pradesh government has announced that construction work for the capital will commence from the 15th of this month. The coalition government in Andhra Pradesh is determined to complete the work within a target of three years, regardless of any challenges.

Real estate flies high!

As soon as the Amaravati projects got back on track, the real estate sector there has regained its momentum. Though it may not be as grand as initially envisioned, there is a noticeable boost. In reality, the construction industry across the country has been somewhat sluggish. Despite these circumstances, the ongoing inquiries, purchases, and sales in Amaravati are something that has energised developers in the region. Moreover, investments are also flowing into the state, leading to an increase in employment and job opportunities. Therefore, experts in the real estate sector believe that the faster the official construction of the capital begins and gets completed, the quicker Amaravati’s real estate industry will be able to stamp its unique identity.

While the announcements from the government and the ongoing work on the ground seem to be filled with enthusiasm, many people still have several doubts about purchasing land in Amaravati. Will the capital construction work be finished on time this time? Will we face issues again in the future? Is it safe to buy property now? Where is the best place to buy? These are just some of the countless questions. So, is this the right time to invest in property in Amaravati? What do experts say?

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Increased rates

• Land prices have increased by 30-40% in the past 9 months
• Single window clearances
• Road width reduction in layouts
• Reduction from 12 meters to 9 meters
• Self-certification is sufficient for construction up to 5 floors

30-40% increase

There is a strong belief among everyone that once Amaravati is completed, Andhra Pradesh’s fate will surely change, especially in the real estate sector. As soon as the government changed, land prices in Amaravati and surrounding areas surged sharply. Over the past nine months, rates have increased by around 30-40%. Recently, an acre of land in Vijayawada was sold for Rs 27 crore. There are also reports of another site being purchased for 35 crore rupees, which clearly indicates the influence of Amaravati. Moreover, the government is also taking decisions that encourage the real estate sector. New policies, such as single-window permits, reducing road widths in layouts from 12 meters to 9 meters, and allowing self-certification for buildings up to 5 floors without the need for official permissions, are boosting both builders’ and buyers’ enthusiasm.

Emphasis on connectivity

For any state capital, roads are the ones that can change its direction and future. In Amaravati, immense priority has been given to connectivity and transportation. Seed access roads, greenfield roads, connectivity with national highways, inner and outer ring roads, and proposals for a metro in Vijayawada are all set to play a key role. If these plans are implemented, the real estate boom is inevitable. Experts say that price control is no longer in the hands of traders, as land prices, labour, and construction material costs have increased, which will reflect in property purchases. However, compared to other states, land prices in Amaravati are still affordable, and it is considered the right time to purchase flats in apartments or plots in layouts. Representatives from real estate companies like Naradco believe that once construction work begins in Amaravati, prices are likely to rise.

Current Rates

• 29 villages within the CRDA limits…
• Amaravati’s influence in Guntur and Krishna districts.
• Depending on the location in Amaravati:

SFT prices range from Rs 3500 to Rs 6000
In high-rise buildings: Rs 5,000 to Rs 8,000 (per sq.ft.)

Favourable for investments

As part of the master plan, Amaravati will be developed as the capital, with 9 cities being developed under 9 themes. These new cities—Government City, Justice City, Finance City, Knowledge City, Electronics City, Health City, Sports City, Media City, and Tourism City—will be integrated with the capital. Over the next ten years, the areas that are expected to develop include the 29 villages within the CRDA limits, along with Guntur, Krishna, and NTR districts. All these areas are favourable for investments.

Regarding flat prices

In locations like Tadepalli, Mangalagiri, Vijayawada, and Guntur, the price per square foot (SFt) ranges from Rs 3,500 to Rs 6,000, depending on the location. In high-rise apartments, the price per square foot ranges from Rs 5,000 to Rs 8,000. In the Amaravati region, if some of the land is allocated for real estate development, developers are ready to construct apartments and high-rise buildings, selling flats at affordable prices to the public. It can be said that this is the right time to invest in properties here.

Paruchuri Kiran Kumar, Vice President, NAREDCO AP.