Land prices in Amaravati, Andhra Pradesh’s greenfield capital, have stabilized after a sharp surge following the return of the Telugu Desam Party (TDP) to power under Chandrababu Naidu in June 2024. Experts report a 6-8% year-on-year increase in property transactions, particularly involving land.

The region is poised for significant development starting in 2025, as funding from national and international agencies is set to accelerate growth. Experts predict land prices could more than double over the next two years.

Previously, real estate activity in Amaravati peaked before 2019, with land values ranging between ₹20,000 and ₹55,000 per square yard. However, during the last five years under the Jagan Reddy-led government, prices dropped by 60-70%. With the TDP’s return, current land prices have rebounded to pre-2019 levels, averaging between ₹35,000 and ₹55,000 per square yard, according to data from Anarock.

The renewed investor interest is driving Amaravati’s real estate market back into the spotlight, with expectations of further growth as the city’s development gains momentum.

 

Property Transactions Rise, Land Prices Stabilize in Amaravati: Experts

In Amaravati, the greenfield capital of Andhra Pradesh, property transactions have increased by 6-8% year-on-year, and land prices have stabilized after years of fluctuations, according to experts. Following a sharp rise in prices after the Telugu Desam Party (TDP), led by Chandrababu Naidu, won a significant majority in the June 2024 state assembly elections, the real estate market is showing renewed momentum.

Noman Ellahi, Country Head at Square Yards, noted the recent uptick in land-related transactions, while experts anticipate significant growth starting in 2025 as national and international funds for development begin to flow. G Hari Babu, National President of NAREDCO, predicts land prices could double or even exceed that over the next two years.

Amaravati’s market had previously seen high investor interest and a significant surge in property values before 2019 when the announcement of the capital city doubled land prices. However, under the previous Jagan Reddy government, a slowdown led to a 60-70% drop in values, according to Santhosh Kumar, Vice Chairman of ANAROCK Group.

Currently, land prices in Amaravati have returned to pre-2019 levels, ranging from ₹35,000 to ₹55,000 per square yard, based on data from Anarock. This resurgence has attracted renewed interest from both developers and investors, setting the stage for further growth as the city’s development accelerates.