BUY sell RENT Patna

residential/commercial

 

Patna Real Estate in the year 2016


 

The Patna real estate sector has been facing strong headwinds over the past couple of years on numerous counts.  The clear air on bye-laws and master plan still elude the Patna realty market. Customers are adopting a wait and watch approach hoping for prices to come down.  While prices have corrected somewhat in most localities across Patna, the combined effect of cost increase and reduced prices along with the increased finance cost on account of the slow sales has left developers in Patna with no head room to lower prices any further.

 

Patna has witnessed large unsold inventory figures in last few years. Another worrying part is that almost 30% of such inventory is under construction and is located in the parts that are currently inhabitable in Patna! The sales have dwindled, new launches decreased or say no new launch as the maps are tucked in government regulations, prices came down to certain extent and the overall sentiment nosedived in the last few years in Patna realty market.

 

The primary reason has been a slowing regulation process involving local bodies over the years as well as sky-rocketing prices. The buyers were waiting for prices to come down where as the investors who bought properties in Patna in the previous boom cycle of 2009-10 didn’t want to put more money with no clear returns. With liquidity crisis for the developers due to high unsold inventories, they found a novel way out by offering freebies, discounts and all kinds of schemes to lure the buyers. The impact has been the stable prices over the previous year, yet it has been insufficient to create a demand boom. In other words, the way the realty market favored developers in Patna in the period around 2010, now it is in favour of buyers, but the prices are still unaffordable for most of them.

 

Despite massive challenges in the way, the future remains positive and full of hopes. The state government has woken up to the fact that real estate sector needs real help and it will result in the favorable policy decisions. For a city like Patna that needs only a small amount of stimulus to get up and running, the winds of change are in air. It may not happen immediately, but within 2016 there will be visible positive changes on the ground. For those who are looking for good deals now is the time to invest their hard earned money in lucrative projects in Patna. A year down the line, prices may shoot up again catering to a selected category of buyers only, the way it has been in past boom time.

 

 “Looking forward to 2016 we hope that home buyers will realize the benefits of investing their money currently being paid towards rent for their equity in their home instead. There is talk of improving the approval processes at all government levels in the state.  This will lead to an improvement in the overall supply there by keeping prices in check such that we do not anticipate any run away price increases as we have seen in the past. On an overall basis we expect the market to be mildly positive to flat but do not see much room for further price correction barring some pockets of some individually stressed developers; says Sanjeev Ghosh transaction head of www.buysellrentpatna.in

 

Experts also believe that the rate cut of 50 basis points by the RBI in its September monetary policy review and the seventh pay Commission released by the government panel will boost the real estate sector in Patna in terms of increased demand and supply. More so, as Patna property market still is a high end user market. Realty experts believe that the year 2016 will begin on a positive note for the sector and may witness a pick- up in sales as there is of late a steep rise in inquiries in Patna realty market. The pick- up in enquiries and therefore resultant sales in 2016  may be attributed to factors such as stagnant growth in prices, lower ticket size of apartments (also resulting from smaller unit sizes), consistent fall in interest rates through 2015 – and, more broadly, an overall improvement in macroeconomic factors. Given these factors at play, 2016 could witness a more balanced demand-supply equation that should bring down unsold inventories across Patna to a more sustainable level. Price growth could remain subdued, although pick-up in sales is anticipated in 2016.

 

Developers are paying more attention to the requirements of buyers and have started supplying a higher proportion of mid-segment apartments in Patna. High demand for ready-to-move in projects and increased focus on project completion will set the contours for the realty sector outlook in Patna in 2016. Prospective home buyers, who wish to buy a house for self-use, will look at property that is ready for possession within months.

 

“Number of new launches has declined, as per our research. On the positive side, this trend highlights the fact that developers in Patna are focusing more on completing their existing projects and clearing their unsold inventory” says CRM head Manoj Kumar Singh of www.buysellrentpatna.in.  Therefore, completion of existing projects is expected to be the prime focus of developers in Patna for some more time.

 

The future looks promising for Patna. All you have to do is be prepared and ready for a joyride!  There could be good realty bets in the year 2016 in Patna realty market.