For a long time, the demand in the real estate sector in Andhra Pradesh (AP) was mainly because of non-resident Indians (NRIs).
However, for the first time in decades, many NRIs are stepping away from investing in AP, said realtors, adding that Hyderabad is now their new favourite investment destination.
Hyderabad Emerges as the Preferred Investment Destination
Andhra Pradesh is one of the top five states in the country with a large portion of its population living abroad. Many NRIs have invested in residential and commercial properties in the state. For a long time, the demand in many urban pockets of AP was higher than in the neighbouring Telangana.
The NRI demand has been particularly high in areas like Guntur, Visakhapatnam and Vijayawada. But now investments are not exceeding more than 20%, said Builders' Association of India's general secretary, Tummala Vamshi Krishna.
In 2018, AP received Rs 19,320 crore in foreign transfers and a large share was invested in real estate. However, things have changed over the past two years. NRI demand for real estate in AP is on the decline as investors turn away from the state.
Vamshi Krishna confirmed that NRI investments have recently dropped because of the uncertainty over the capital. The value of properties already invested in has fallen by almost 50-60%. The investors are heading for Hyderabad, where the real estate market is attractive and wealth grows faster.