VIJAYAWADA: After a five-year stagnation, the real estate sector in Andhra Pradesh appears to be experiencing new growth. There has been an uptick in land transactions throughout the state, reflecting a renewed interest from buyers in real estate investments. The increase in revenue from stamp duties and registrations further indicates a recovery in the market.
The stamps and registrations department reported a 46% revenue growth in the first quarter of the current financial year compared to the same period in 2024. The year-to-date growth stands at 39%, signaling a positive shift for the sector.
Following the launch of projects worth ₹50,552 crore in Amaravati, investors who had been hesitant are now showing renewed interest. The data for the first quarter suggests that Amaravati is a key driver of the real estate market, with Krishna, Guntur, and Palnadu leading in transaction volume and revenue generation.
This uptake in transactions occurs despite rising land prices around Amaravati. According to realtor Sunil Nutakki from Vijayawada, the surge in transactions was hindered by sudden price hikes following the 2024 elections. Though prices in Amaravati remain high, developers and investors are now looking at more affordable areas with promising future potential.
In addition to Amaravati, there has been a notable increase in transactions in cities such as Guntur, Nellore, Tirupati, Visakhapatnam, and Kurnool. New project announcements have spurred interest even in rural areas. Realtor A. Vishnu Vardan noted that the state’s efforts to stimulate demand, including easing regulations on layouts and buildings, are also contributing to this growth. He anticipates further increases in transactions once the government’s decision to eliminate the NALA conversion fee is implemented.
