Andhra Pradesh Real Estate Sector Shows Signs of Recovery
After a five-year lull, the real estate sector in Andhra Pradesh is showing promising signs of recovery, with increased land transactions and revenue from stamps and registrations.
Real EstateRecoveryAndhra PradeshAmaravatiLand TransactionsReal EstateAug 17, 2025
The increase in revenue from stamps and registrations indicates that the realty sector is gaining momentum. The stamps and registrations department registered a 46% growth in revenue during the first quarter of the current financial year, when compared to the corresponding period of 2024. The year-to-date growth also stands at 39%, indicating a decent recovery for the real estate sector. As clarity emerged on Amaravati with the launch of works worth Rs 50,552 crore, investors, who were in a wait-and-watch mode, have started showing interest in the capital.
The first quarter data suggests that Amaravati is driving the realty sector as Krishna, Guntur, and Palnadu top the list of districts in terms of the number of transactions and revenue earned. This comes even after a spike in land prices in and around the capital Amaravati. Sunil Nutakki, a realtor from Vijayawada, said the transactions slowed down because of a sudden increase in land prices after the 2024 elections. Though prices in Amaravati continue to be on the higher side, developers and investors are exploring areas where prices are affordable with better prospects in the future.
Besides Amaravati, there has been an increase in the number of transactions in cities like Guntur, Nellore, Tirupati, Visakhapatnam, and Kurnool. Areas where new projects were announced are also in demand, as buyers are showing renewed interest even in rural areas. The steps taken by the state government to increase demand in the realty sector are also contributing to the growth, said A Vishnu Vardan, another realtor, adding that the easing of many rules regarding layouts and buildings by the state government has also contributed to the growth.
Once the government's decision to abolish NALA conversion fee comes into effect, there will be a further increase in the number of transactions, he added.
Frequently Asked Questions
What is driving the recovery in the real estate sector in Andhra Pradesh?
The recovery is being driven by increased land transactions, growth in revenue from stamps and registrations, and the launch of works worth Rs 50,552 crore in Amaravati.
Which districts in Andhra Pradesh are leading in real estate transactions?
Krishna, Guntur, and Palnadu are leading in terms of the number of transactions and revenue earned.
How have land prices in Amaravati affected transactions?
Land prices in Amaravati have increased, causing a slowdown in transactions. However, investors are now exploring affordable areas with better future prospects.
What steps has the state government taken to boost the real estate sector?
The state government has eased rules regarding layouts and buildings and is planning to abolish the NALA conversion fee to further increase transactions.
What other cities in Andhra Pradesh are seeing an increase in real estate transactions?
Cities like Guntur, Nellore, Tirupati, Visakhapatnam, and Kurnool are also experiencing an increase in transactions.
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