The recent change of government in Andhra Pradesh has led to fall in real estate prices in Amaravathi.
Then TDP government created realty boom in Amaravathi with its decision to build a new world-class capital city for Andhra Pradesh known as Amaravathi.
The government has identified several villages around Guntur for building capital city. Agriculture land in these villages have been acquired.
With this, the Guntur and surrounding villages witnessed unprecedented realty boom on par with Hyderabad during IT boom.
The lands that once fetched less than Rs 10 lakh per acre in villages surrounding Guntur suddenly skyrocketed to crores.
Several realy ventures like apartments, villas came up to cash in on the demand
However, the defeat of TDP in recent Assembly polls and YSRCP coming to power reversed the situation all of a sudden.
This is because AP CM Jagan as Leader of Opposition in previous term strongly opposed construction of new capital in Amaravathi.
Though Jagan did not make any announcements or comments on Amaravathi after becoming CM nearly two weeks ago, the prices fell due to speculations over Jagan may shift the capital, though it not possible to shift the capital at this stage.
With this realtors stopped purchasing lands. There are no buyers for lands or apartments or villas. Only those who are in dire need of apartments to reside are purchasing.
Those who want to purchase apartments, villas as investments are shying away from doing so after Jagan became CM.
With this, the prices crashed. The plot which fetched Rs 30,000 per sq.yard in the capital region has now come down to Rs 20,000.
The cost of an acre land fetched Rs 1 crore to Rs 1.50 crore earlier. It has now come down to Rs 75 lakh to Rs 1 crore.
Despite this, there are hardly any buyers. Realtors expect the same trend to continue till the next six months.
They say the prices will pick up only if Jagan gives a clarity on Amaravathi capital city.
But this slowdown has made middle class happy. They are trying to purchase plots at this level which they could not afford earlier.
