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Hyderabad vs Amaravati

Anshuman Magazine, Chairman, CBRE

In terms of the real estate market, they have its unique features.

The administration of Andhra Pradesh has operated from Vijayawada/Amaravati for several years post-bifurcation, despite Hyderabad initially serving as the joint capital for Andhra Pradesh and Telangana as per the AP Reorganization Act.

Hyderabad, driven by IT, pharma, and other service sectors, stands as the country’s 6th largest urban agglomeration by population. It is India’s bulk drug capital, pivotal in bulk drug production and IT exports, and ranks 4th in high-net-worth individuals. Consequently, Hyderabad’s growth trajectory remains crucially tied to its own dynamics, with minimal impact expected on its real estate from state administrative shifts.

Amaravati/Capital region was conceived as a planned city between Vijayawada and Guntur, promising a greenfield development opportunity with modern concepts. Recent focus shifts to Visakhapatnam have tempered its growth potential, pending future implementation and associated challenges.

Telangana concentrates on the service sector, leveraging strengths in pharma and IT, while Andhra Pradesh explores other sectors aligned with its strengths, offering new avenues for investors in both states.

After initial enthusiasm for Amaravati as the state capital waned following the three-capital announcement, real estate activity there has been subdued over the past few years, with substantial land inventory available.

Hyderabad’s historical ties and continued investments post-bifurcation have anchored business interests, though these developments have not significantly affected Hyderabad’s real estate sector, which continues to thrive based on its inherent growth drivers.

With Amaravati reinstated as the sole state capital, short-term buzz in real estate is expected, contingent upon sustained government initiatives and policy continuity for long-term investor confidence.

The IT sector emphasizes infrastructural support for Vizag’s development as the state’s IT hub, including necessary space and high-speed connectivity, alongside calls for economic clusters near Vishakhapatnam.

Government commitment to budgetary support and infrastructure development as per earlier master plans will consolidate business and governmental infrastructure in the new capital region, fostering growth under an investor-friendly ecosystem.

The decision to decentralize development under a three-capital concept involving Vishakhapatnam, Vijayawada, and Kurnool has redirected focus from Amaravati, impacting stakeholder interest and necessitating cautious approaches to policy continuity concerns.

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