Vijayawada: As 2025 draws to a close, the real estate sector in Andhra Pradesh’s capital region Amaravati is showing strong signs of revival, with developers, investors, and homebuyers increasingly optimistic about 2026. After years of policy uncertainty and stagnation, the capital region is once again emerging as an investment hotspot, driven by accelerated infrastructure development, improved policy clarity and visible execution on the ground.Large-scale government buildings, arterial roads, housing projects and utility infrastructure are progressing steadily, restoring confidence among market players. Unlike earlier phases, industry representatives say the current momentum is backed by tangible development rather than promises.“Amaravati is finally moving beyond announcements. What investors are seeing today is real construction activity,” said M Rama Rao, a representative of Capital Region Builders Association (CRBA).The revival follows a prolonged slump during the previous regime, when proposals for decentralisation of the capital and shifting of administrative functions to Visakhapatnam created widespread confusion. Land prices fell sharply, projects were stalled, and investor sentiment remained weak for several years.Second Phase Of Land PoolingThe announcement of the second phase of land pooling further boosted sentiment, triggering a sudden spike in activity in nine additional villages brought under the capital development framework. Realtors report increased inquiries from long-term investors and high-net-worth individuals who believe the capital region is firmly back on track.“There is renewed interest from serious investors, especially in areas proposed under the second phase,” said Sonti Ramu, a real estate consultant operating in the Amaravati-Tadepalli corridor.ORR Approval Triggered RevivalThe Centre’s approval of the Amaravati Outer Ring Road (ORR) project emerged as a major catalyst for the real estate revival. Planned as a 190-kilometre, six-lane access-controlled expressway with service roads on both sides, the ORR will be longer than Hyderabad’s 158-kilometre ring road. The mega project will pass through 121 villages across 23 mandals in five districts, at an estimated cost of ₹24,791 crore.Even before the project’s execution, the ORR has triggered sharp appreciation in land values, with market estimates indicating a nearly 35 percent rise along the proposed corridor over the past year. Several large developers have already begun land aggregation and preliminary works near the ORR layout.“The ORR has completely altered market perception,” said Chinta Jayaram Kumar, a Hyderabad-based developer who is developing a venture at Adavinekkalam in Eluru district. “Demand is high because current prices are still lower than core city markets.”Vijayawada-Guntur Corridor Vijayawada and Guntur continue to strengthen their status as the main gateways to Amaravati. One of the most active micro-markets is the West Bypass Road in Vijayawada, which provides direct connectivity to the capital. Nearly 20 major and minor ventures are currently under development along and around the bypass.Land prices in the West Bypass belt have increased by around 30 percent, reflecting strong investor confidence. “This corridor has emerged as a preferred investment destination due to its excellent connectivity and future growth potential,” noted P Hanumanta Rao, a member of CREDAI AP.Affordability A Big ConcernDespite the positive momentum, affordability remains a key concern. Industry observers note that several big developers are sharply escalating prices in the name of the ‘capital boom’, making it difficult for middle-class buyers to enter the market.“There is significant scope for affordable housing, but large players are focusing more on premium segments,” said Puppala Venkateswara Rao, a realtor from Vijayawada. “Only smaller developers are targeting budget housing, and they need more policy support.”A prospective buyer, Alapati Suresh Kumar from Vijayawada, echoed this view. “I want to buy a house near Amaravati, but prices have increased very fast. Affordable projects would attract many end-users like me,” he said.Realtors Seek Policy SupportWhile strict scrutiny by the Andhra Pradesh Capital Region Development Authority (APCRDA) has helped ensure planned development, developers say the approval process remains time-consuming. The authority examines multiple aspects, including road width, drainage and zoning, before granting layout permissions. “Regulation brings assurance, but delays hurt project timelines,” said Ch Udhaya Bhaskar, a realtor from Vijayawada.The stakeholders feel that 2026 could mark a turning point for Amaravati’s real estate sector, but developers stress that sustained growth will depend on faster approvals and a single-window clearance system to address issues across multiple departments. At the same time, end-users and common buyers are hoping for a greater focus on affordable housing projects to make home ownership in the capital region more accessible.CAPITAL MATTERSLand Pooling Scale | Amaravati’s first phase of land pooling covered nearly 33,000 acres, while the second phase proposes 16,552 acres, significantly expanding the capital development footprintFarmers Await Returns | Thousands of farmers who contributed land in the first phase of land pooling are eagerly awaiting full-scale development of their reconstituted layouts, hoping 2026 will finally deliver long-promised growthMulti-District Boom | The real estate surge is visible across NTR, Krishna, Guntur, and Palnadu districts, with spillover demand extending into parts of Eluru district.Project-Led Growth | Industry experts say the grounding of even one marquee project in Amaravati could dramatically accelerate demand and confidence in the real estate sectorOutside Investors | Investors from Hyderabad and Bengaluru are closely tracking Amaravati’s progress and have begun steady investments, viewing the capital region as a long-term growth destination
