Amaravati ORR Project Fuels Real Estate Boom in Andhra Pradesh
The Amaravati Outer Ring Road (ORR) project has sparked a significant real estate boom in regions surrounding the capital, with property prices surging as land acquisition and gazette notifications gain momentum.
Amaravati OrrReal Estate BoomProperty PricesLand AcquisitionAndhra PradeshReal EstateNov 20, 2025
The rise is particularly steep in areas such as Kanchikacherla (NTR district), Agiripalli–Pottipadu (Eluru and Krishna districts), and localities around Kankipadu, where real estate firms are aggressively scouting for ventures. Locals say land values in several pockets have shot up by nearly 35% within weeks. Residents attribute the escalation to confirmation that the ORR will pass close to their villages.
"Big companies are showing interest in setting up ventures. We hope the ORR will bring development to our area," said N. Ramana of Gopalapuram village in Agiripalli mandal. Farmers, who earlier struggled with pest attacks on mango orchards, are now entering agreements with realtors, expecting better returns than agriculture.
Planned as a 190-km, six-lane expressway with two service roads on each side, the Amaravati ORR will be longer than Hyderabad's 158-km ORR. The mega project spans 121 villages across 23 mandals in five districts, costing ₹24,791 crore. It will be executed in 12 phases, with the Andhra Pradesh government contributing ₹3,117 crore for land acquisition and related infrastructure.
The Detailed Project Report (DPR) has been sent to the National Highways Authority of India (NHAI). Meanwhile, the Centre has begun releasing district-wise Gazette Notification 3A, starting with Palnadu, listing villages, survey numbers, and affected farmers. Notifications for other districts are expected soon.
The momentum has further fuelled speculation, with areas along Agiripalli and Idara Road near Vijayawada witnessing intense developer activity. Regions around Kankipadu are also emerging as new hotspots, anticipating ORR-linked infrastructure growth. Additionally, the near-completion of the Vijayawada West Bypass has doubled land prices in Gollapudi and Jakkampudi (Mylavaram constituency). Land that recently sold at ₹10,000 per yard is now touching ₹20,000, reflecting the region's soaring demand.
The Amaravati ORR project is expected to not only boost real estate but also drive economic growth and infrastructure development in the surrounding areas. With the government's commitment and the enthusiastic participation of real estate firms, the future looks promising for these regions.
Frequently Asked Questions
What is the Amaravati Outer Ring Road (ORR) project?
The Amaravati Outer Ring Road (ORR) project is a 190-km, six-lane expressway planned to be built around Amaravati, the capital city of Andhra Pradesh. It includes two service roads on each side and is expected to span 121 villages across 23 mandals in five districts.
How has the Amaravati ORR project affected property prices?
The project has significantly increased property prices in areas surrounding the proposed alignment. Land values in several pockets have surged by nearly 35% within weeks, particularly in regions like Kanchikacherla, Agiripalli–Pottipadu, and Kankipadu.
What is the expected cost of the Amaravati ORR project?
The total cost of the Amaravati ORR project is ₹24,791 crore. The Andhra Pradesh government will contribute ₹3,117 crore for land acquisition and related infrastructure, with the project being executed in 12 phases.
Which areas are seeing the most significant real estate activity due to the ORR project?
Areas such as Kanchikacherla, Agiripalli–Pottipadu, and Kankipadu are witnessing intense developer activity. Additionally, regions around Agiripalli and Idara Road near Vijayawada are emerging as new hotspots.
How is the completion of the Vijayawada West Bypass impacting land prices?
The near-completion of the Vijayawada West Bypass has doubled land prices in areas like Gollapudi and Jakkampudi (Mylavaram constituency). Land that recently sold at ₹10,000 per yard is now touching ₹20,000, reflecting the region's soaring demand.
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