Prices up in india's possible new state capital

Andhra Pradesh was split to form a new state in India this year. The major transformation the country's political and geographic make-up has had a significant impact upon the real estate market.

The new state, Telegana, has a population of 35 million and includes the district of Hyderabad, its capital, which has already been earmarked for property investment amid rising prices.

Now, speculation surrounding the location of Andhra Pradesh's new capital has seen attention turn to the rumoured corridor of Vijayawada-Guntur. Now, land values have soared by over 25 per cent, according to India Property, with interest driven by both foreign and domestic investors.