Amaravati’s Real Estate Revival
The recent electoral victory of the Telugu Desam Party (TDP) has renewed interest in Amaravati’s real estate market. Chandrababu Naidu, the newly elected Chief Minister, is known for transforming Hyderabad into a major IT-ITeS and industrial hub. Experts are optimistic that he will bring similar growth to Amaravati.
Impact of Political Changes on Hyderabad
Since the bifurcation of Telangana and Andhra Pradesh, Hyderabad has solidified its position as one of India’s top real estate markets. However, Naidu’s renewed focus on developing Amaravati might shift some investors and businesses from Hyderabad to Andhra Pradesh. This shift could lead to a 10-15% temporary correction in Hyderabad’s real estate prices and affect the commercial real estate market.
Potential Benefits for the Region
Research by ANAROCK, a real estate consultancy, suggests that while Andhra Pradesh’s growth could present challenges for Hyderabad, the overall impact is likely to be positive. Naidu’s announcement that Amaravati will be the sole capital of Andhra Pradesh highlights his commitment to developing the city, which could stimulate regional economic growth.
Also Read: Amaravati: Why Select Amaravati Upcoming AP Capital 2024?
Naidu’s Previous Plans for Amaravati
During his tenure from 2014 to 2019, Naidu initiated significant plans for Amaravati, acquiring over 33,000 acres from farmers. Halted in 2019 when the YSR Congress Party took power, causing a sharp decline in real estate prices. With Naidu back in office, interest in Amaravati is rekindling, and property prices are beginning to rise again.
Hyderabad’s Resilient Real Estate Market
Experts like Prashant Thakur from ANAROCK emphasize that Hyderabad’s real estate market remains strong, supported by its diverse economy and significant NRI investments. Some businesses and residents may move to Andhra Pradesh, but Hyderabad’s long-term growth prospects are still positive.
Renewed Investments in Amaravati
Businesses with existing investments in Hyderabad might consider renewed investments in Amaravati as it develops into a new commercial hub. Companies like Brigade Enterprises and Godrej Properties have shown interest in exploring opportunities in Andhra Pradesh, depending on the state’s economic development and job creation.
Conclusion
The development of Amaravati under Naidu’s leadership is expected to lead to short-term fluctuations in Hyderabad’s real estate market. However, the long-term outlook for both cities is promising. Andhra Pradesh’s economic growth could create a ripple effect, benefiting the broader region and sustaining demand in Hyderabad’s real estate sector.
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