Reconsideration among realtors due to recent floods?
Will the real estate sector face difficulties without flood control measures?
The situation in Andhra Pradesh’s capital Amaravati has become perplexing. After the state’s bifurcation, the Chandrababu government declared Amaravati as the capital and began its development. However, the subsequent Jagan government moved forward with the idea of three capitals, causing the real estate sector in Amaravati, which had previously seen some growth during Chandrababu’s tenure, to collapse with the announcement of the three capitals by Jagan.
Just as property prices had risen with Amaravati’s capital announcement, they have similarly dropped with Jagan’s announcement. With Chandrababu becoming Chief Minister again in the recent elections, there was renewed optimism among realtors about the restoration of Amaravati’s former glory. As a result, real estate inquiries in Amaravati have increased, leading to a rise in property prices.
Despite arguments that this development might negatively impact Hyderabad’s real estate sector, experts assert that Hyderabad will demonstrate its resilience and potential. They argue that land prices in Amaravati are lower compared to Hyderabad, suggesting that investors might prefer Amaravati for its lower investment cost and potential profits, which should not pose significant problems for Hyderabad’s real estate sector.
However, with recent floods inundating Vijayawada, there are concerns about the safety of investments in Amaravati. The situation in Vijayawada is currently dire, leading realtors to question the security of their investments in Amaravati. The capital-level infrastructure is still under development in Amaravati, and adverse climatic conditions persist. Experts indicate that this presents a major challenge for the coalition government led by Chandrababu.
To attract investors, it is essential to provide world-class amenities and ensure resilience against disasters like floods. Therefore, it is suggested to further improve the drainage system and construct retaining walls along the Krishna Riverbank adjacent to Amaravati. If Chandrababu can provide assurances and confidence that floods will not impact the area in the future, investors are likely to consider Amaravati.
