VIJAYAWADA: As 2025 approaches its end, the real estate market in Amaravati, the capital of Andhra Pradesh, is experiencing a significant revival. Developers, investors, and homebuyers are growing increasingly optimistic about the opportunities that 2026 will bring.
After enduring years of policy ambiguity and stagnation, Amaravati is once again emerging as an attractive investment location, thanks to accelerated infrastructure development, clear policy frameworks, and on-the-ground execution.
Ongoing large-scale projects including government buildings, roads, housing developments, and utility infrastructure are steadily progressing, instilling renewed confidence among stakeholders. Unlike previous phases marked by mere announcements, this current momentum is firmly rooted in actual progress.
“Amaravati is finally moving beyond announcements. What investors are witnessing today is real construction activity,” said M. Rama Rao, a representative from the Capital Region Builders Association (CRBA).
The revitalization follows a prolonged downturn during the prior administration, which sowed confusion with proposals to decentralize the capital and relocate administrative functions to Visakhapatnam, resulting in plummeting land prices and stalled projects.
Second Phase of Land Pooling
The introduction of the second phase of land pooling has further stimulated interest, leading to increased activity across nine new villages included in the capital development framework. Realtors are reporting a surge in inquiries from long-term investors and high-net-worth individuals confident in Amaravati’s rebound.
“We’ve seen renewed interest from serious investors, especially in the areas outlined in the second phase,” said Sonti Ramu, a real estate consultant in the Amaravati-Tadepalli corridor.
ORR Approval Sparks Revival
The Central Government’s approval of the Amaravati Outer Ring Road (ORR) project has become a key catalyst for the real estate resurgence. The project entails a 190-kilometre, six-lane expressway complete with service roads, surpassing Hyderabad’s own ring road. Slated to traverse 121 villages across five districts, the ORR carries an estimated cost of ₹24,791 crore.
Even prior to its implementation, the ORR has led to a significant appreciation in land values, with estimates suggesting a nearly 35% increase along the proposed corridor over the last year. Numerous large developers have initiated land aggregation efforts near the ORR layout.
“The ORR has completely transformed market perceptions,” explained Chinta Jayaram Kumar, a developer from Hyderabad with projects in Eluru district. “Demand is robust as prices remain competitively lower than in core city markets.”
Vijayawada-Guntur Corridor
Vijayawada and Guntur are reinforcing their roles as key access points to Amaravati, with the West Bypass Road in Vijayawada emerging as a bustling micro-market, providing direct connectivity to the capital. Currently, around 20 significant and minor ventures are under development along this corridor.
Land prices in the West Bypass area have surged by approximately 30%, demonstrating strong investor confidence. “This corridor has become a preferred destination for investment due to its excellent connectivity and potential for growth,” stated P. Hanumanta Rao, a member of CREDAI AP.
Affordability Remains a Concern
Despite the positive developments, affordability remains a pressing issue. Experts observe that many prominent developers are raising prices significantly under the guise of a ‘capital boom,’ making entry into the market difficult for middle-class buyers.
“There is ample scope for affordable housing, but larger players are focusing primarily on high-end segments,” commented Puppala Venkateswara Rao, a realtor in Vijayawada. “Only smaller developers are catering to budget housing, and they require additional policy support.”
A prospective buyer, Alapati Suresh Kumar, from Vijayawada echoed this sentiment: “I want to purchase a house close to Amaravati, but prices have risen dramatically. Affordable projects would attract many end-users like myself,” he remarked.
Realtors Call for Policy Support
While rigorous oversight from the Andhra Pradesh Capital Region Development Authority (APCRDA) has ensured planned growth, developers express concern over the lengthy approval processes. The authority evaluates multiple factors, such as road width, drainage, and zoning, before granting project permissions.
“Regulation provides assurance, but delays can impede project timelines,” noted Ch. Udhaya Bhaskar, a realtor from Vijayawada.
Stakeholders believe that 2026 could serve as a watershed year for Amaravati’s real estate sector, although developers emphasize that continued growth will hinge on expedited approvals and a streamlined clearance system to navigate inter-departmental issues. At the same time, potential homebuyers hope for increased focus on affordable housing initiatives to make ownership more attainable in the capital region.
