The real estate sector in Vijayawada has seen steady demand for residential properties and selective traction in commercial space in 2025. Photo credit: GN RAO
The real estate sector in and around Vijayawada has reported gradual progress in 2025, however, industry experts consider it slightly off the mark as they expected a boom after the focus shifted to the capital region of Amaravati.
Confederation of Developers Associations of India (CREDAI), Andhra Pradesh, Secretary D. Rambabu said the sector has not met their expectations this year. Despite the government’s efforts to streamline the approval process, such as the changes in the Building Rules 2017, the introduction of the Self-Certification System (SCS) 2025 and the repeal of the NALA Act, business is slow, he said.
Explaining the reasons, Mr. Rambabu said, “The sector witnessed a temporary slowdown due to global economic uncertainty. Due to the shift in foreign policy, foreign institutional and NRI investors adopted a wait-and-see policy.”
However, the scenario is not all bleak. Land prices in areas around Amaravati have jumped 15-20% since the start of 2024, with some areas seeing up to 40% year-on-year increase in housing demand, he said, adding that the rental market in the city has seen average demand.
CREDAI Vijayawada Chapter President C. Sathish Babu agreed with Mr. Rambabu and said that while there is now clarity about the capital, the infrastructure is yet to reach Amaravati. “Investors need to feel confident. While the government is taking positive steps, we feel it may take one to two years to see results. It is a buyer’s market, not a seller’s, at present,” said Sathish Babu.
There are other issues as well, including the lingering effects of policies adopted during the previous regime, 5% GST, 7.5% registration fee, which have brought business down. Also, Vijayawada-Guntur region has many people who have settled in foreign countries. “NRI investments are contributing significantly to the market here. Global trends have influenced their role,” said Sathish Babu.
While realtors in the city feel that the capital has brought all the activity to the suburbs of Tadepalli and Vijayawada and the city itself has seen a lull in rentals, Builders Association of India, Amaravati, President Maturi Ranganath has predicted Vijayawada’s growth in the next 10 years.
Meanwhile, National Real Estate Development Council (NAREDCO) central zone president Sandeep Mandava is hopeful that business will improve next year. “While the first half of 2025 was off to a slow start, business has picked up in the second half. Currently, momentum is picking up in Tadepalli, on the airport side, in areas near the airport, including Poranki in the city. We expect this to continue,” said Mr. Sandeep Mandava.
Published – 28 Dec 2025 20:04 IST
