When Andhra Pradesh and Telangana were split into two new states, there were fears that Telangana's real estate market would crash, and expectations that AP's real estate market would take off. However, seven years post bi-furcation, the opposite is occurring. In AP, the real estate sector is at a lowest ebb.
The rise in land registrations in Telangana and the drop in land deals in Andhra Pradesh provide evidence of this. Land registrations are expected to bring in much to Rs.10,000 crores to the TS government this year. Telangana received Rs.7759 crores in revenue in the first week of January alone. The income in December was Rs.1118 crores. Experts in the real estate industry predict that income will only rise from here.
The political situation in AP, on the other hand, is proving to be the greatest deterrent. Realtors are moving their focus away from AP as the situation in Telangana improves. The uncertainty regarding the money has also played a significant role in the AP real estate crash. The demand for agricultural lands in Telangana is also increasing. Weekend farming is becoming more popular among IT workers, which is beneficial to the real estate industry.
Agricultural land registrations earned Rs.617 crores in April last year, but due to the Covid19 crisis, they only generated in Rs.148 crores in May 2021. However, beginning in June, revenue began to increase. According to sources, the rulers of AP must take actions to prevent the capital's flight to the state and boost real estate development in the state. After all, Andhra’s primary source of revenue is real estate.