Capital-in-Waiting? Land Prices Soar in Amaravati

Capital-in-Waiting? Land Prices Soar in Amaravati

Amaravati, Andhra Pradesh: As Amaravati gears up to become the capital of Andhra Pradesh, land prices in the region have witnessed a meteoric rise.

Since the announcement of Amaravati as the state capital in 2015, land values have surged by over 400% in some areas. According to data from real estate consultancy firm Knight Frank India, the average land price in Amaravati has increased from around Rs. 40 lakhs per acre in 2015 to Rs. 2 crore per acre today.

This surge in land prices is primarily driven by the anticipation of increased infrastructure development and economic activity in the area. The state government has already invested heavily in infrastructure projects, including the construction of a new international airport, roads, and bridges.

“Amaravati is poised to become a major economic hub in the coming years. The government’s plans for the city are ambitious, and this is reflected in the rising land prices,” said Mr. Sandeep Kothapalli, Managing Director of Knight Frank India.

The development of Amaravati is also attracting investors from outside the state. Several multinational companies have expressed interest in setting up offices or industrial units in the area. This has further fueled the demand for land and pushed up prices.

However, some experts caution that the rapid rise in land prices may not be sustainable in the long run. “There is a risk of a bubble forming in the Amaravati real estate market,” said Mr. Chandrababu Naidu, President of the Amaravati Development Corporation.

The Andhra Pradesh government is taking steps to mitigate this risk by regulating land sales and ensuring that prices remain within reasonable limits. “We are committed to making Amaravati affordable for everyone, while also ensuring that the city has the infrastructure and facilities it needs to thrive,” said Mr. Naidu.