Land prices soar in Amaravati, Real Estate News, ET RealEstate
VIJAYWADA: Real estate prices zoomed in Amaravati witnessing anywhere between 50% and 100% increase in just three days after the election results are out. The massive victory of the TDP, Jana Sena and BJP alliance has cleared the uncertainties over the capital, renewing the buyers’ interest.
However, minimal transactions are taking place as there are hardly any sellers in the capital region now. Everyone is expecting a statement from Prime Minister Narendra Modi in favour of Amaravati during N Chandrababu Naidu‘s swearing-in ceremony as CM to be held on June 12 near the All India Institute of Medical Sciences (AIIMS) in the capital region.
Farmers expect further increase in land price if PM makes positive statement
Farmers are expecting a further increase of land prices in case of a positive statement by Modi.
Land prices came down anywhere between 60% and 75% after outgoing chief minister Y S Jagan Mohan Reddy announced his plans of three capitals in 2019. All euphoria created around the proposed futuristic capital city vanished. After five years, with govt change, the realty sector in Amaravati is witnessing a ‘V’ shaped recovery in terms of prices.
Ginjupalli Subbarao, a farmer from Amaravati, said that he is getting many calls from prospective buyers. “There were no takers till six months ago but the sentiment has slowly started to change with people sensing change,” he said. “With the election results in favour of the alliance, land prices have come back to 2018 levels.”
During the election campaign, Naidu had said that Amaravati would be revived soon after coming to power.
Speaking to TOI, TDP national general secretary Nara Lokesh gave more clarity saying his party did not have any plans to change the master plan for Amaravati prepared before they lost power in 2018. He said there was no better alternative to the existing masterplan, and they would stick to the original strategy of developing the city on a self-sustaining model.
Despite spending about Rs 10,000 crore, the then TDP govt could not complete all trunk infrastructure works which included laying roads and drains along with giving power and water supply. Sources said Naidu is now planning to complete the trunk infrastructure works which will give enough thrust for private investors and developers to start their businesses.
Several central government institutions like Reserve Bank of India, Comptroller and Auditor General (CAG), CPWD, Public Sector Undertakings like NTPC, ONGC, Indian Bank, State Bank of India and others have purchased lands to set up their regional offices in Amaravati. Sources said that Naidu is looking to bring all these institutions to Amaravati as soon as possible so that the economic activity will start rolling.
Naturally, the demand for lands near these institutions is pushing the prices in these areas further up. Lands around private universities which have already opened campuses are also in high demand.
While the farmers, who put up a valiant fight against YSRC govt, are happy with the renewed buyer interest, the investors are chasing the prices with FOMO (fear of missing out), said Gopal Yadav, a realtor from Amaravati.
