Amaravati, the new capital of Andhra Pradesh, has the potential to become a world-class city and will usher in a new era of real estate development within the AP Capital Region and in the State, a report of property consultant Knight Frank India said today.
"The strategic location of Amaravati and proposed infrastructure developments will ensure Amaravati becomes a world-class city and influence zone," according to the report released by Knight Frank India on the state capital coming up in the Vijayawada-Guntur region.
International consultants are involved in developing the capital city. Proximity to urban centres like Vijayawada and Guntur will ensure the broader capital will provide a large talent pool and with necessary infrastructure, it will be a good option for companies to move into Andhra Pradesh, which is largely rural in character, it said.
Proposed physical infrastructure like metro rail and an international airport in Mangalagiri will boost the attractiveness of Amaravati in general and the broader capital region in particular, it said.
The proposed high speed rail corridor with Chennai, Bengaluru and Hyderabad will improve connectivity to Amaravati. Apart from road, rail network and BRTS a special 3km-long underwater tunnel in the river Krishna will connect the capital city to Vijayawada, the report said.
"Vijayawada and Guntur will be the two major urban centres that will benefit the most from Amaravati coming up in a full-fledged manner as the new state capital. Vijayawada will be promoted as the commercial capital and Guntur will be promoted as the knowledge hub of the state."
Apart from the real estate boom that is expected, there are huge investment commitments from domestic and international corporates across industries like retail, energy, education and hospital-cum-medical institutes that will have a positive impact on Amaravati's real estate in particular and of the capital region in general, it said.
Commenting on the report, Samantak Das, Chief Economist and National Director-Research, Knight Frank India, said "The proposed greenfield capital city has already generated unprecedented interest in the surrounding areas and the two urban centres of Vijayawada and Guntur are the biggest gainers of this immense interest. Both these centres are expected to grow by leaps and bounds in the future.
"There are ample examples of private companies having expressed interest in setting up facilities in and around Amaravati and we expect this momentum to build up further.
