Why Elections and Politics
Won’t Impact Long Term Investments
and Real Estate in Amaravati
What happens if the current party does not come back to power
in the upcoming elections next year?
We recently concluded our 2nd leg of US roadshows for 2018 covering many major cities across East & West coasts, reaching out to over 3000 NRIs who attended our Investor Seminars / met us at major conventions & group meetings.
The response was highly encouraging & positive overall – we acquired over 60 new investors, completely sold out Starlit Suites Hyderabad (172 units) & Starlit Suites Tirupati (124 units), closed a good number of bookings for Starlit Suites Kolkata (due to its small ticket size starting at Rs.32.8 lakhs all inclusive & its location bang next to DLF Tech Park in Rajarhat, the hottest IT corridor of Kolkata & West Bengal).
And while even our flagship Amaravati projects – Alakananda Riverfront & Buckingham Enclave) – received a good number of bookings, I could sense that a few interested investors are taking time to decide on investing in the Amaravati region.
Due to all the misleading inputs from social media, over-exaggerated showcase of political situation by news channels and office rumours & gossip – which is the most misleading of all – few potential investors seem to be adopting a wait and watch approach.
Unfortunately, such investors are missing out on wonderful opportunities due to their premature conclusions based on all the above, without even having the most basic knowledge of the Amaravati masterplan, the tremendous developments taking place on ground, the current situation and the vision going forward!
Their question is, what happens if the current party does not come back to power in the upcoming elections next year?
A few investors expect a slow down in Amaravati if the current ruling party does not win the elections in 2019.
Fortunately, THIS IS COMPLETELY IRRELEVANT & NOT TRUE AT ALL as explained below.
Even if the opposition party does come to power, in the limited window of 5 years that they have to prove themselves, they will only focus on executing the current plans for Amaravati and showing visible and rapid developments– as this is the only sure-shot of way of winning the next term!
They will only take advantage of executing what the previous party has taken 5 long years of hard work and toil to formulate – instead of throwing all that away and trying to reinvent the wheel!
In the time it takes to scrap the current plans for Amaravati and then think up of something new, 5 years would have passed and there is no way they can come back to power.
There is NO POLITICAL BENEFIT for ANY party in stopping or slowing the construction of a new capital city – as in the end, even the opposition needs a capital city!
When their leaders of opposition are themselves building their homes in Amaravati, there is no question of any threat to its growth from any party as everyone has understood that the future for AP’s growth, stability and development will all depend heavily on Amaravati for the next 2 decades…
One good development we noticed in the recent trip across USA is that all NRIs have atleast understood this fact and are convinced that Amaravati is now on auto-pilot and that it is beyond the point of NO-RETURN – and that no one can undo or go back on Amaravati today, which is something a few were afraid of earlier…
Before I present a few simple & logical reasons as to why we strongly feel that Amaravati is immune to politics of the state in the long run, please keep in mind the following experiences from which you can draw a parallel to Amaravati’s future growth story :
DEMONETISATION & GST
How They Did Not Impact Prices
Post demonetisation in November 2016, people expected real estate prices to crash by as much as 40% to 50% overnight (and upto 70% in some extreme cash driven cities like Delhi NCR, Mumbai etc).
Rumours floated that the industry will take 5 to 7 years to recover from this blow and with cash being rooted out, prices will not be artificially inflated anymore and growth will be crippled.
Real estate was doomed they thought!
But nothing of that sort ever happened..
We knew that the industry was fundamentally strong in below ways :
- Most of the top-rung builders have moved away from cash dealings and the industry has become a lot more structured, regulated & mature.
- Properties in most metro cities are bought by professionals and salaried employees who invest using home loans, which again means there is no scope for cash in such transactions.
- At most, it is the agricultural lands in rural locations that would get affected due to demonetisation as these transactions are heavily cash driven.
- Top & organised builders do not depend on sales for construction cash flows and hence do not need to succumb to giving discounts, offering freebies, etc and due to their financial holding power, could continue to stay firm on prices, while continuing work even though sales did slow down for a few months.
- We hence encouraged people to invest during this time as values would be at their lowest possible levels, making it a buyer’s market!
Fast forward 2 years and the scenario today is very bright & clear :
- There was only a brief 6 month lull in the market – during which there was a minor correction in prices, mostly in the unorganised sector (i.e. projects of Grade C, unbranded developers & contractors-turned-developers, etc) and ofcourse in agriculture lands which are predominantly cash driven.
- Small, unbranded & sub-standard fly-by-night builders were wiped clean & driven-out of business in a matter of months – thus providing a much needed “cleansing” of the market, ensuring that only quality & long term branded players survive.
- As buyers started returning to the market after 6 months, GST kicked-in – leading to another 3 to 4 months of confusion and postponement of investment decisions.
- But despite these 2 major hurdles, few markets have continued doing well over the last 2 years.
- Hyderabad for example, has grown at 15% to 20 % p.a. on average and so have select markets like North Bangalore / Devanahalli and even certain volatile submarkets like Amaravati plots of farmers who got back developed plots under the Land Pooling Scheme (LPS plots) etc.
Thus, demonetisation & GST only caused a temporary dip or slowdown in transactions as people were confused with rumours and gossip but eventually returned to market while builders kept the prices stable – nothing changed!
Elections have happened every 5 years for the last 70 years in India’s history, and yet the country continues to flourish irrespective of which party is ruling – things slow down in the few months before and after each round of elections but then they get back to business as usual!
The political uncertainty & elections too will have a similar effect on Amaravati & its real estate – in that while they MAY cause a temporary slowdown, things will eventually return to normal after a few months, once people realise that none of this matters in the long run and irrespective of who is in power, the capital city will continue to grow…
Effect of STATE DIVISION on Hyderabad
And how it became India’s best performing real estate market despite the division…
Due to the division of Telangana & Andhra, Hyderabad’s real estate market was expected to be severely hit, due to ambiguity of future government’s capabilities and its dependence on migrant population & investments from the neighbouring state.
It was also rumoured that “outsiders” will be forced to leave the city due to regional sentiments.
But within 4 years form then, Hyderabad has become India’s best performing real estate market!
With global majors like Facebook, Uber, Amazon, Google, Qualcomm, Novartis and many more global giants setting up their India HQs and even IKEA opening its first Indian store, Hyderabad’s explosive growth has taken even us by surprise!
However as with any good bull run, Hyderabad’s market growth will slowdown gradually over the next few years and rates will surely not continue appreciating as rapidly as they have in the past 3 to 4 years.
Moreover, after the upcoming elections in Andhra – with Amaravati becoming the center of attraction even for even non-Telugites (i.e. many from neighbouring states of Karnataka, Tamil Nadu, Maharashtra, Madhya Pradesh & Orissa and as far as Punjab have starting investing slowly in Amaravati) – most of the money flowing into Hyderabad will slowly get diverted to Andhra (and in particular, Amaravati), further taking away from Hyderabad’s non-stop growth so far.
Keeping this vision, you have nothing to lose by investing in Amaravati TODAY and a smart investor would take advantage of this future growth that is unfolding silently, without being very visible or obvious to all at this time.
In a way, this is similar to the story of stock market investments – where most of the investors wait and watch, ignoring or failing to notice the subtle hints & trends UNTIL prices start to go up and then rush to the market, to only end up buying at a much higher price AFTER a stock has already appreciated!
You can expect the same to repeat at Amaravati – where smart investors move in right now, especially when the DOLLAR IS AT ITS HIGHEST VALUE and AMARAVATI IS AT ITS LOWEST possible value ever!
Demonetisation & GST were massive, once-in-a-lifetime shocks to the economy – and yet they did not have any long term impact, and were forgotten merely 6 to 12 months after being implemented!
Elections have been happening every few years, repeatedly over the last 70 years and yet, the country continues to grow and flourish despite these routine minor slowdowns & disturbances.
Of course, there is more at stake in Amaravati.
Where It Stands Today
Shocking developments on ground!
While we have made a very detailed post on the latest developments at Amaravati over the last 2 years (link to which is given further below) given below is a summary of what all has happened so far, which clearly shows that Amaravati cannot be stopped or undone now as NONE OF THESE developments can be reversed anymore!
Amaravati is a Capital City, and hence a basic requirement for ANY political party
Notwithstanding numerous regional / caste sentiments, a capital city is a basic necessity for any state.
There is no political mileage for any political party, in stopping or slowing down the development of a capital city.
Hence irrespective of who comes to power next year, Amaravati WILL remain the default capital and development will continue, even if there is a brief slowdown in between.
.Basic Infra almost Ready.
80% of Core Infrastructure Already Complete
The Grid Pattern Road Network at Amaravati visible on Google Maps!
80% of road works are complete and underground drainages, electrical and water connections are being laid right now.
23,800 kms of fiber optic cables have been laid to provide internet, telephony and television connectivity to over 30,000 villages across the state; and much more…
– Over 4000 homes for govt staff will be ready by mid of 2019
– Construction of Temporary High Court (permanent City Civil Court) is complete
– Construction of Secretariat has begun
– Tenders are being called for Assembly building
No one can or would be foolish to throw all of this away and dream of shifting entire capital o another location – it is physically, strategically and financially impossible!
.Businesses Coming to Amaravati.
Major Institutes & Companies already Operating out of Amaravati
Numerous renowned private and govt bodies like SRM University, VIT University, AIIMS, HCL, Pi Amaravati (South Asia’s largest data center), Amazon, etc have already invested 1000s of crores to get their Amaravati campuses up and running and none of them will now move all of this to a new location!
These existing companies will attract other companies to come in and set-up, leading to a vibrant ecosystem over the next 5 to 10 years for sure.
Pi Amaravati @ Mangalagiri is Asia’s largest Uptime Institute Tier-IV Certified Data Center. Yet very few know of its existence and also of many more large corporations like this which have already set-up base in Amaravati in the last 2 years!
Rs.2000 crores were raised via listing of “Amaravati Bonds” on the Bombay Stock Exchange – making it India’s largest bonds issue till date from any local authority. The offer was oversubscribed 1.5 times and given a rating of “A+” by CRISIL – acknowledging the good economic management by the State.
Adequate Funds Lined-Up for next 2 years of works…
No more cash crunch as Rs.12,000 crores has been lined-up from multiple sources such as HUDCO, World Bank, Amaravati Bonds, etc.
This has drastically reduced the cash crunch felt so far and the govt is now focussing on rapid execution of works, with an aim to complete majority of basic infrastructure by early 2019.
It is now very clear to people that Amaravati is now unstoppable and will be a reality irrespective of support from central govt – putting to rest once for all, the hidden fears of prospective investors all over the world.
The govt will use these funds as equity contributions to kickstart various infrastructure projects such as high court, assembly, secretariat, internal roads, etc.
.Massive Tracts of Lands Sold & Allotted.
Pooled by Govt, developed & already Resold!
33,000 acres of land in Amaravati have been acquired from farmers, developed and already returned back to them (under LPS – Land Pooling Scheme) and these have in turn been sold off to various institutions & companies who are setting shop in Amaravati.
All these transactions cannot be simply undone now and hence development will continue taking place here as no party can change this and companies that have bought or been allotted land will continue establishing themselves further & further in Amaravati!
.In Final Stages.
Over 3000 Government Residences
being handed over by March 2019
Work is progressing rapidly on the construction of 3820 multi storied apartments and 194 bungalows for the govt officials. The country’s leading contractors – L&T, Shapoorji Pallonji and NCC – have been awarded these contracts and due to the advanced “shear wall technology” being used, all towers are set to be ready by mid of 2019.
.Work Beginning Soon.
Construction of Iconic Bridge Begins!
Reducing distance from Hyderabad to Amaravati by over 45 Kms / 60 Minutes
The CM laid the foundation stone on 12th Jan 2019 – christening it the Kuchipudi Iconic Bridge, with India’s tallest pylon (L&T aims to complete this in just 24 months from now).
This 3.2 km, six-lane iconic bridge at Ibrahimpatnam will connect Hyderabad DIRECTLY to Amaravati – saving almost 2 hours for all those coming in from Hyderabad as they will no longer have to travel via Vijayawada (which is the only way to reach Amaravati as of now).
This will kickstart massive developments & real estate growth / spurt in prices on the Vijayawada Hyderabad NH65 as this bridge brings that entire stretch – Ibrahimpatnam to Jaggayyapeta, within 5 mins to 45 mins of the Core Capital, increasing capital values of lands in that region aggressively.
Proud to inform that our efforts in improving the business scenario in AP have paid off as it has been declared the No. 1 State in Ease Of Doing Business for the second time in a row. Developmental reforms made in the past few years have made AP the most investor-friendly State. pic.twitter.com/GTdC0bWWG8— N Chandrababu Naidu (@ncbn) July 10, 2018
All this clearly indicates that
AMARAVATI is IRREVERSIBLE
and on Auto-Pilot…
meaning it will continue to develop irrespective of which party is in power.
Funnily, all this information is available publicly in multiple places including YouTube, but unfortunately, positive news doesn’t get around as fast as rumours / gossip and false political propaganda.
Keeping all this in mind, below are the 2 possible outcomes of the elections next year and how they will impact Amaravati and its growth story – and please note that we are not endorsing or promoting any party here, only giving you our perspective since have the benefit of being on the ground everyday and have a front-seat access to all the rapid developments at the minutest level…
Current Party Continues in Power
With all the progress being witnessed across the state (not just in Amaravati alone!); widespread appreciation by all for the Polavaram project which is nearing completion; multiple awards being won by the state (No.1 in Ease of Doing Business, Most Sustainable Capital City of the World, Best Quality of Life, etc and much more), there is a good chance of current party continue for another term.
And when this happens, Amaravati’s real estate will virtually take-off overnight! (much like the Gachibowli story).
This overnight explosion will make it out of reach for many within a few months and this is why we have repeatedly stressed that this is the right time to buy, before prices start to rise abruptly next year.
Opposition Party Comes to Power
There will be confusion for 3 to 6 months as experienced with demonetisation and GST – because some will want to wait and see how the new government takes over and their vision & plans for the capital city and rest of the state.
But as explained previously, even the opposition will have no choice but to develop Amaravati, for them to stand a chance of winning another term and establishing their political track record.
Hence after the brief lull for 3 to 6 months post elections, as people begin to realise that nothing much will change and business will resume as before, investors will return to the market and prices will once again begin to rise!
Since Amaravati is already on autopilot, growth will continue and market will start picking-up as more and more companies like HCL, IT centric SMEs, hospitals like BRS Medi City, AIIMS, tourism attractions like the Marina, MICE Hub and Singapore’s 1600 acre Start Up Area come up over the next 5 to 10 years.
Of course, there is a chance that growth may be slower than expected – but even then, it will still outperform other mature / saturated markets in India.
Knowing all the above and based on our 14 years of experience (having been through the 2008 & 09 recession which was the worst ever in Indian real estate’s history so far), I can confidently say that Amaravati is at its lowest point now and you stand to gain the most by investing at these levels, before the general public starts waking-up to the shocking progress and development, purely due to lack of unbiased information like this!
This is the Best Time
to Invest in Amaravati!
A Multi Pronged, New Age and
Future Proof Economy
How high can prices in Amaravati go?
Amaravati is being built from scratch, on a fresh drawing board, with the advantage of providing the highest quality of life in India.
Unlike Hyderabad, Bangalore, Pune & Gurgaon which have grown mostly based on IT/ITES, Amaravati’s economy is focused on new age industries like Big Data & Analytics, Fintech, Artificial Intelligence, Cloud Computing, Smart City solutions and few evergreen industries like Medical Tourism, Education & R&D.
The above powerful combination of industries is unique to Amaravati – giving it an edge that no other city in India has been able to leverage due to their dated dated & over-stressed infrastructure that does not support growth of new technologies.
And with people migrating from Chennai to Bangalore first and then to Hyderabad in search of better quality of life and infrastructure, it is clear that when the right atmosphere & ecosystem is created, businesses & people will come!
Hence, it is very much possible that in the long run (say 10+ years), with the best infrastructure and best quality of life in India, Amaravati will become home to highly qualified professionals from all over India, becoming a cosmopolitan city – and real estate prices will match & then exceed most other metro cities, making it a hotbed for investment.
In conclusion, as per our knowledge and judgement – and similar opinions advocated by many leading business houses & industrialists – Amaravati will be almost a 50 year non-stop growth story and this is the best time ever for you to get started in India’s most modern, brand new capital city!
Where can you invest in Amaravati for high ROI?
Here are 2 handpicked investment opportunities for you in some of the fastest growing & yet very affordable stretches of Amaravati’s growth zone – and these are set to become the best of their respective categories as shown below :
Villa Plots in a Rare 300 Acre Integrated Township on the Banks of Krishna River near Vijayawada / Amaravati
Only One of Its Kind in India
MasterPlan by multi-award winning Bangalore & Canadian Architects
Drone Shot of Actual Work Progress at Site (Shot in Oct 2018)
Pre-Launch Offer : Invest in Villa Plots starting from Rs.19 Lakhs
Plots ranging from 266 to 1000 Sq Yards
(Immediate registration possible)
CRDA Approved 80 Acre Gated Community of Villa Plots near Keesara / Kanchikacherla
(very close to upcoming Outer Ring Road + bridge + Vaikuntapuram Barrage over Krishna River)
20 minutes from Amaravati
CRDA Approved – LP No.31/2016
Phase 1 – 90% complete
Pre-Launch Offer : Invest in Villa Plots starting from Rs.19 Lakhs
Plots ranging from 220 to 400 Sq Yards
(Immediate registration possible)
Our most awaited launch which is expected to set a benchmark in Amaravati / Vijayawada
In our recent newsletter, we offered just 1% of the stock as a goodwill offer at a deep-discounted rock bottom price compared to Rs.4900 to Rs.5600/Sft being charged for comparable projects in the neighbouring areas.
I am glad to share that the stock of 11 apartments was SOLD OUT in just 43 hours of having sent out the newsletter!
Once we receive final approvals in the next 2 to 3 months, we will announce a pre-launch offer to our patrons at a special price (you will also have the option of choosing a good unit), before opening up to the public at a higher price.
The Varadhi to Mangalagiri stretch, as mentioned by me before, is already the hottest growth corridor of Amaravati with the AP Police HQ becoming operational last month, Jaguar showroom and many other high end retail and commercial developments in progress, including the 250 acre All India Institute of Medical Sciences campus under construction (admissions for the 2018 MBBS batch have already begun) just 1.2 kms from Buckingham Enclave.
Buckingham Enclave is going to set a benchmark for Vijayawada / Amaravati through its competitive pricing and a rare & unique masterplan – our central courtyard for example is larger than the ENTIRE PROJECT of other top brands in this area!
In case you missed to take note of our earlier mail exclusively on the Buckingham Enclave offer against 100% down payment, you may see the full offer document at the below link :
Once again, I encourage you to invest in Amaravati’s growth story and keeping all the above developments and many more in the pipeline, this is the right time for you to get in and ride the wave over the next 3 to 4 decades of non-stop growth in what is set to be India’s leading technopolis – as proclaimed by the President of India, with the highest standards of living!
I wish you all the best and look forward to having you as an important part of our rapid growth in Amaravati as one of AP’s leading developers and wealth creators!
+91 9980380000 / +1 845 248 0012
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