PM Modi Revives Amaravati Projects: A Boost for Andhra’s Capital and Real Estate Market

Prime Minister Narendra Modi on May 2 inaugurated and laid the foundation stone for ₹58,000 crore worth of infrastructure projects in Andhra Pradesh, marking a major step toward reviving the greenfield capital city of Amaravati — a long-cherished vision of Chief Minister N. Chandrababu Naidu. Real estate experts believe this revival will reignite investor confidence and catalyze growth in the region's property market.

According to PTI, the PM launched 94 projects, including new institutions in the capital city, upgrades to national highways and railways, and defence-related facilities. Notably, ₹49,000 crore is being allocated to 74 Amaravati-specific developments such as the Assembly, Secretariat, High Court, judicial quarters, and housing for 5,200 families.

“Amaravati is not just a city, it’s a dream coming true… The energy of a developed India can be seen here,” said PM Modi, underlining the symbolic and strategic importance of these developments.

Among the key highlights:

A 320-km world-class transport network with underground utilities and advanced flood management systems.

1,281 km of road infrastructure under the land pooling scheme, complete with cycle tracks, medians, and integrated services.

The Amaravati capital project, first launched by CM Naidu during his 2014–19 term, had stalled under the subsequent administration of Y.S. Jagan Mohan Reddy. Its revival under the NDA government is being viewed as a return to the original vision for a world-class administrative city located between Vijayawada and Guntur.

Real Estate Sentiment Turns Positive

Bayana Srinivasa Rao Garu, president of CREDAI Andhra Pradesh, said the revival has already lifted market sentiment. “We’ve seen a visible shift in investor mood over the past six months. With clear political backing and administrative support, confidence has returned,” he said.

He anticipates a 15–20% increase in land prices over the next six months, attributing it to improved policy clarity, government incentives, and renewed infrastructure activity.

Land and Property Prices on the Rise

GV Jagdish of Hanu Reddy Realty noted that average land prices in Amaravati range between ₹25,000–30,000 per sq yard, while built property is priced around ₹4,000 per sq ft. On the outskirts, agricultural land costs ₹2–3 crore per acre, while prime plots in the Amaravati-Guntur belt command ₹5–10 crore per acre.

He added that sustained investment would depend on the successful execution of the government’s roadmap for Amaravati.

Amaravati's Vision as Capital

Following Andhra Pradesh’s bifurcation in 2014, Amaravati was chosen as the new capital. The master plan, designed by UK-based Foster and Partners, envisions a 217.23 sq km sustainable urban hub with e-buses, metros, water taxis, and bicycle-friendly infrastructure.

The total projected budget for Amaravati's development stood at ₹64,910 crore as of 2024, with Phase 1 expected to be completed within three years. The Centre has committed ₹15,000 crore in funding, along with external support from the World Bank and Asian Development Bank (each contributing $800 million). HUDCO has pledged ₹11,000 crore, and further talks are ongoing with KfW for an additional ₹5,000 crore.

With political momentum, fresh investments, and renewed planning, Amaravati’s future as Andhra Pradesh’s capital appears back on track — and the real estate sector is poised to benefit.