Andhra Pradesh Real Estate Sector Shows Promising Signs of Recovery
After a prolonged period of stagnation, the real estate sector in Andhra Pradesh is experiencing a resurgence. Increased land transactions and a 46% growth in revenue from stamps and registrations indicate a positive trend, particularly in districts like Krishna, Guntur, and Palnadu.
Real EstateRecoveryAndhra PradeshLand TransactionsGovernment PoliciesReal Estate NewsAug 16, 2025
The increase in revenue from stamps and registrations is a strong indicator of the sector's momentum. The stamps and registrations department registered a 46% growth in revenue during 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 decent recovery for the real estate sector. This positive trend has been further bolstered by the launch of works worth Rs 50,552 crore in Amaravati, which has brought clarity and confidence back to the market.
The first quarter data suggests that Amaravati is a key driver of the realty sector, with Krishna, Guntur, and Palnadu topping the list of districts in terms of the number of transactions and revenue earned. Despite a spike in land prices in and around the capital, investors who were previously in a wait-and-watch mode are now showing renewed interest. Sunil Nutakki, a realtor from Vijayawada, noted that transactions slowed down due to a sudden increase in land prices after the 2024 elections. However, developers and investors are now exploring areas with more affordable prices and better future prospects.
Beyond Amaravati, there has been a notable increase in the number of transactions in cities like Guntur, Nellore, Tirupati, Visakhapatnam, and Kurnool. Areas where new projects have been announced are also gaining popularity, as buyers are showing renewed interest even in rural areas. The steps taken by the state government to boost demand in the realty sector are also contributing to the growth. A Vishnu Vardan, another realtor, highlighted that the easing of many rules regarding layouts and buildings by the state government has played a significant role in the sector's recovery.
Once the government's decision to abolish the NALA conversion fee comes into effect, there is expected to be a further increase in the number of transactions. This move is anticipated to make property investments more attractive and accessible to a broader range of buyers, thereby driving the real estate market forward.
Frequently Asked Questions
What is the current state of the real estate sector in Andhra Pradesh?
The real estate sector in Andhra Pradesh is showing signs of recovery after a period of stagnation, with increased land transactions and a 46% growth in revenue from stamps and registrations.
Which cities in Andhra Pradesh are seeing the most real estate activity?
Cities like Krishna, Guntur, Palnadu, Nellore, Tirupati, Visakhapatnam, and Kurnool are experiencing a significant increase in real estate transactions.
How has the government contributed to the real estate sector's recovery?
The government has taken steps to ease rules regarding layouts and buildings, and is planning to abolish the NALA conversion fee, which are expected to boost the real estate market.
What impact has the launch of works in Amaravati had on the real estate sector?
The launch of works worth Rs 50,552 crore in Amaravati has brought clarity and confidence back to the market, driving increased interest from investors and buyers.
What factors are influencing the increase in land transactions?
Several factors, including the launch of new projects, easing of government regulations, and the abolition of the NALA conversion fee, are contributing to the increase in land transactions.
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