It’s known that Andhra Pradesh Chief Minister Chandrababu Naidu announced Amaravati as the state capital and Visakhapatnam (Vizag) as the financial capital. However, concerns that Amaravati’s development will negatively impact Hyderabad’s real estate market are unfounded.
Here’s why:
Hyderabad did not develop overnight. Particularly in the IT sector, the city’s growth is the result of decisions made over 25 years—during Chandrababu Naidu’s tenure as Chief Minister of undivided Andhra Pradesh, followed by ten years of Congress rule, and another ten years under the BRS government. These collective efforts have led to significant IT sector growth in Hyderabad, attracting national and international companies to set up operations directly in the city. Such IT infrastructure is not yet available in Amaravati.
Furthermore, Hyderabad’s environment is widely appreciated. It boasts better law and order, friendly residents, and a modern lifestyle with amenities like shopping malls, multiplex theaters, restaurants, clubs, and pubs that appeal to those seeking a contemporary lifestyle.
Amaravati will take some time to develop these amenities. Therefore, the establishment of Amaravati does not pose an immediate threat to Hyderabad. Builders who faced losses in Amaravati over the past five years might recover now that the TDP is back in power, leading to new residential projects. Developers are planning to complete these projects within five years.
In conclusion, the real estate sector hopes that Amaravati’s development as the capital is completed as quickly as possible.
