BUY sell RENT Patna


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Despite high returns, Patna real estate crawls !!!! (15/08/2014)

The capital city of Patna boasts of being the commercial centre of Bihar. Being strategically located at a juncture of three rivers, the city is also a dream educational and career destination for many who migrate from the remote parts of Bihar.

However, over the years, the real estate market of Patna has witnessed spurts of high and low demand despite a good return on proprty investment in Patna in many cases. Still, since a few years, the number of Patnaites migrating and investing in the metropolitan cities, such asDelhi, Mumbai, Bangalore and Chennai are increasing day by day.

Here’s why -

It seems that with more opportunities of education and jobs available in different Indian cities, the upper-middle class Patnaite is no longer interested in sending his or her ward to local prestigious college; where apart from prestige there is nothing left. The higher education in Bihar is non existent.

Till four years back,Patna real estate used to receive enquiries and property was purchased by the IITians and medicos in   Patna, who wanted to gift their parents a flat in Patna. However, in the most recent times, even this population has shifted focus to other cities in India.

With the big developers from Noida coming to Patna, the local builders have witnessed a drop in the number of their clients. The investors are now interested in the areas such as Noida in the anticipation of better returns at almost the same cost. The SGDP growth of Bihar previously was a two-digit number and the real estate sector was the second largest contributor after agriculture. But with the flow of developers and builders from outside the state of Bihar and the number of bookings they are able to manage, even the local developers are switching to Noida to start their business there as there is a long list of real estate biggies who have left Patna for good.

The overall urban planning in Patna and civic sense among people should be looked into. These two make Patna one of the dirtiest state capitals in the country. With all the funds being mismanaged, Patna has been gradually put in a spot. Most of the money that goes in for the various government yojanas passes through a channel of babus’ pockets. While these people are investing in Patna, the average Patnaite might feel that it is better to invest in a city where the politics is comparatively cleaner. Daily the Mayor and the nagar aayukt fights in PMC and no one works in PMC. For many who have invested in Patna already, their choice of second home is always elsewhere, in Delhi, Noida, Gurgaon or Bangalore.

Price perspective

The prime locations in Patna command prices close to Rs 6000 per sq ft to Rs 7000 per sq ft for residential projects and launch rates might go up to even Rs 1 Crore a unit as is the case with a new project unveiled in Boring Canal Road.  For the investors, still the returns might be close to 30 per cent if not more, in these prime locations in Patna. In the areas, such as Danapur, the average price would be close to Rs 3000 per sq ft.

Even the rental markets are high with localities like Boring Road, Boring Canal Road and Nageshwar Colony garnering close to Rs 20,000 to Rs 25,000 per month per unit for a decent 3 bhk accommodation.

Home buyers also feel that with the money that they put in a  home in Patna, they could afford a better accommodation in other cities.

Despite odds, there have been many instances of locals and non-locals investing in Patna and the region is gradually emerging. After all, for many of the locals, the sentimental attachment to the hometown and slow but steady development of the city has made them invest in the city, the prices or the scope taking a backseat.

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