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AFFORDABLE HOMES MAKE FOR GOOD INVESTMENT IN PATNA  (01/06/2013)




The concept of affordable housing in Patna real estate or property circles in Patna is a gift of the downturn in 2008 in the global economy. While at no time is an economic downturn useful or welcome by anyone in the world and Patna, the 2008 global recession gave those looking for homes in Patna in the Rs 20 to Rs 30 Lakh segment something to cheer about. The lack of activity of home buyers in Patna in the midrange segment led many developers in Patna to venture into the affordable homes market in  Patna and Bihar. The result is a concept called “affordable housing in Patna” which is here to stay in Patna real estate.


Affordable homes in Patna typically combine the best of both worlds to the extent possible for a flat buyer in Patna. The carpet area is relatively smaller but many of the other basic amenities are offered at par with mid range segment in Patna real estate. This is possible due to the relatively lower land costs at locations these projects are developed in Patna–invariably in the suburbs. Land forms a large chunk of an apartment’s cost in Patna and when this cost is low, the apartment in Patna can be sold for a much lower price tag. This is also the reason why an apartment in Patna in the core city areas is expensive even if the carpet area is lesser too.


 


The largest buyer base for affordable homes in Patna is the salaried segment (the new joined) and the individual entrepreneurs running small business setups. As the number of nuclear families increases, the demand for affordable homes in Patna too goes up. Though a new phenomenon in the Patna real estate, affordable housing market segment; has already indicated that it holds huge potential for developers in Patna as well as investors in Patna.


 


Location and connectivity; a unique aspect of an affordable homes project is its relative price advantage in the near term. As connectivity improves thanks to the many road development projects in  Patna or the upcoming Metro Rail project in Patna, the neighborhoods in Patna will have more residential and commercial projects being developed. This in turn will lead to a market for social infrastructure in Patna. It will then not be long before the locality turns into a self sufficient neighborhood and prices escalate with more demand for property in Patna. Then, the erstwhile affordable homes project in Patna will command a much higher price. Those who, in this context, buy an affordable home in Patna early, are holding a good investment in Patna, that will earn them handsome capital gains in a matter of time.


 


Affordable homes in Patna serve as good investment options for property investors in Patna who don’t have a large budget. It is easy to find a tenant as the rental will also be relatively lower. The capital appreciation, especially in emerging localities in Patna, will be sharp.



        

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