Andhra Pradesh, once seen as a promising investment hub, is now witnessing a major slowdown in its real estate growth — largely driven by fear, politics and caste equations.
While many communities have a presence in the state, two continue to dominate in politics and business: the Reddy and Kamma communities.
Though not every member of these groups is wealthy, those holding power and influence often come from the rich segments of these two castes.
During Jagan Mohan Reddy’s rule, many wealthy Kamma investors reportedly held back, fearing unfavorable treatment from the ruling party side. That led to a slump in real estate, even when the rest of the country saw a boom.
Now, with the TDP government back in power, the tables have turned — the Reddy community is stepping back.
An NRI investor, Ramesh Chowdary, explains the dilemma, “I would like to invest in Amaravati, but we never know when Jagan will come back. This is the most unpredictable market. Investing in Hyderabad is safer as there are no caste politics there.”
Even those aligned with the TDP are hesitant. The fear is long-term; what if the government changes again after four years? Many investors don’t want to risk being targeted in future political shifts.
Srinivasa Sharma, a banker, adds another angle, “I never thought of buying property in AP. Everyone is leaving AP towns for Hyderabad, Bengaluru, or abroad. Only retirees come back. How will real estate grow without new settlers?”
This flight of youth and business, combined with fears of political revenge, is choking AP’s real estate sector. Global economic slowdown only makes matters worse. Confidence is low, transactions are rare, and development is on pause.
Girish Reddy, a businessman, sums up the sentiment, “I thought of buying land during Jagan’s rule but delayed. I’m glad I didn’t. I'd have landed in trouble. I never regret not buying in Andhra.”
Well, one may ask if the real estate of AP is in decline, is it only because of Reddys and Chowdarys, and not others? But certainly, distancing any influential community always causes a butterfly effect.
Relying more on investors from other states or multinational sources is not easy — geographically and infrastructure-wise, Amaravati or most places in AP (except Visakhapatnam) are not very appealing.
So, naturally, wealthy native communities contribute significantly to the state's development. But the current situation is discouraging to the rich individuals from these two dominant communities.
The key question now, Who will rebuild investor confidence in AP? Until a stable, trust-worthy, and politically neutral climate is established, the real estate sector may continue to suffer.
Kiran Sharma
