The development of Tier I cities such as Mumbai, Kolkata, Delhi and other similar areas have also led to the development of Tier II cities. For example, Patna, the state capital of Bihar is on the path of development in recent times. Patna’s amenities now can match that of Pune, Mumbai or Delhi because of the large malls in the city. Multiplexes such as Cine Polish and Fun Cinema are there in the city to provide its residents ready sources of entertainment. Retail sectors too are developing in various areas of Patna and so are fast food brands. Some areas of Patna such as the Sugna More can be compared to that of Noida’s well developed sectors.
In terms of civic infrastructure too, Patna is getting its own metro railway by 2016-17. The phases and routes of development have been decided. Sensing the growth possibilities, developers too have started up their own projects in the luxury and economical type. Some of the best universities of India have a campus in the city such as AIIMS, IIT, and NIT etc. Since these campuses have been newly developed, they are equipped with all the amenities that one can desire in an institute. Another phase of development would be that of the New Patna World by the Ganga, which would be similar to Dubai. Proposals have been placed for expansion of Patna into Greater Patna by 2021, through the Final Master Plan. IT companies would find space in the Greater Patna area. TCS has already expressed interest in the plan.
When it comes to housing in Patna, the prices are quite steep, much more than other Tier II cities of India. In some areas, the prices are comparable to that of the NCR Delhi area. Bihar has one of the largest populations of immigrants. These immigrants too are looking forward to investing in their home land. As Patna offers good scope of returns and the “son of the soil” argument, more people are inclined to invest in Patna than areas such as Pune, Mumbai or Bangalore. Prices of real estate in Bihar were shooting up for quite some time, but they seem to have stabilized now and are going for a decrease all together.
In a list of 26 cities, Patna is among the 22 prominent ones that are undergoing a reduction in residential property price. The index is steadily falling for Patna and in recent times, the fall has been estimated at 5 points or so. When it comes to percentage terms, there has been a reduction of almost 3.30 percent. A lot of people consider this fall to be only marginal. However, what is more concerning for both builders and buyers is that will this fall in property price be a continuing trend or is it only momentary? When it comes to housing prices in different areas of Patna, then the story becomes a little grimmer. For the analysis, the National Housing Board segmented the area into 5 different zones. Some of the areas are the up-market areas of West and East Boring Canal Road, RK Bhattacharya Road etc. The price of properties in these areas has dropped radically, by almost 30 points within 2-3 years. In fact, almost 10 points of the decline happened within a period of 3 months. This has been quite alarming for investors and builders.
For areas such as Kidwaipuri Krishna Nagar, Patliputra Colony and Buddha Colony, which are a main part of zone 3, have come down by 9 points on the housing index scale within 3 months, from 148 points to 139 points. The housing index for properties such as the Gola Road and New Bailey Road have fallen from 191 points to 182 points within a quarter. These areas are coming up with their own development projects. These two areas have been merged with Patna’s Phulwari and Kankarbagh areas.
All is not lost for properties in Patna. Some areas of Zone 2 such as Patel Nagar, Shivpuri, Anandpuri and Nehru Nagar have shown an increase of 8 points almost from 130 to 138 in this same quarter. The only area of Zone 4 which has not shown a change is that of Akashwani. The rising inventory of unsold property in Patna along with the steadily increasing housing interest rates, tightening of liquidity and an overall slowdown of the economy is what is affecting the land housing project of Patna. The investment that is made by end-users is mostly affecting this trend. Buyers are rethinking their decisions of investment because the PMC has also cracked down on architects and builders on a large scale. These moves have made buyers rethink their purchasing decision. Most buyers are losing faith on property in Patna and instead investing in Delhi NCR because of the plush amenities and the 40 percent discount rate almost. If most buyers start thinking like this, then the Government would have to rethink its decision of boosting an economy based on construction. Buyers being indifferent on these kinds of properties also indicate that there is a possibility of money being withdrawn from the property in Patna market and instead being pumped into real estate markets that offer better living conditions and facilities and have larger open spaces at the value for money prices.
Patna City builders are mostly keeping fingers crossed about the recessionary trend and hoping that it would end. Most of them consider the problem to be temporary only and should reverse once their situation improves. However, what remains a point of concern that do investors of Patna have enough financial clout for weathering the storm that is brewing a demand slowdown in the economy.
The increasing retail, commercial and industrial development in Patna combined with the social and civic infrastructure should encourage more people to opt for investments in the market. End users have ample of reasons to rejoice with the price of properties falling, thereby making it easier for them to invest. This would be the right time to invest for end users as there is no predicting when prices would rise.
In terms of civic infrastructure too, Patna is getting its own metro railway by 2016-17. The phases and routes of development have been decided. Sensing the growth possibilities, developers too have started up their own projects in the luxury and economical type. Some of the best universities of India have a campus in the city such as AIIMS, IIT, and NIT etc. Since these campuses have been newly developed, they are equipped with all the amenities that one can desire in an institute. Another phase of development would be that of the New Patna World by the Ganga, which would be similar to Dubai. Proposals have been placed for expansion of Patna into Greater Patna by 2021, through the Final Master Plan. IT companies would find space in the Greater Patna area. TCS has already expressed interest in the plan. When it comes to housing in Patna, the prices are quite steep, much more than other Tier II cities of India. In some areas, the prices are comparable to that of the NCR Delhi area. Bihar has one of the largest populations of immigrants. These immigrants too are looking forward to investing in their home land. As Patna offers good scope of returns and the “son of the soil” argument, more people are inclined to invest in Patna than areas such as Pune, Mumbai or Bangalore. Prices of real estate in Bihar were shooting up for quite some time, but they seem to have stabilized now and are going for a decrease all together.
In a list of 26 cities, Patna is among the 22 prominent ones that are undergoing a reduction in residential property price. The index is steadily falling for Patna and in recent times, the fall has been estimated at 5 points or so. When it comes to percentage terms, there has been a reduction of almost 3.30 percent. A lot of people consider this fall to be only marginal. However, what is more concerning for both builders and buyers is that will this fall in property price be a continuing trend or is it only momentary? When it comes to housing prices in different areas of Patna, then the story becomes a little grimmer. For the analysis, the National Housing Board segmented the area into 5 different zones. Some of the areas are the up-market areas of West and East Boring Canal Road, RK Bhattacharya Road etc. The price of properties in these areas has dropped radically, by almost 30 points within 2-3 years. In fact, almost 10 points of the decline happened within a period of 3 months. This has been quite alarming for investors and builders.
For areas such as Kidwaipuri Krishna Nagar, Patliputra Colony and Buddha Colony, which are a main part of zone 3, have come down by 9 points on the housing index scale within 3 months, from 148 points to 139 points. The housing index for properties such as the Gola Road and New Bailey Road have fallen from 191 points to 182 points within a quarter. These areas are coming up with their own development projects. These two areas have been merged with Patna’s Phulwari and Kankarbagh areas.
All is not lost for properties in Patna. Some areas of Zone 2 such as Patel Nagar, Shivpuri, Anandpuri and Nehru Nagar have shown an increase of 8 points almost from 130 to 138 in this same quarter. The only area of Zone 4 which has not shown a change is that of Akashwani. The rising inventory of unsold property in Patna along with the steadily increasing housing interest rates, tightening of liquidity and an overall slowdown of the economy is what is affecting the land housing project of Patna. The investment that is made by end-users is mostly affecting this trend. Buyers are rethinking their decisions of investment because the PMC has also cracked down on architects and builders on a large scale. These moves have made buyers rethink their purchasing decision. Most buyers are losing faith on property in Patna and instead investing in Delhi NCR because of the plush amenities and the 40 percent discount rate almost. If most buyers start thinking like this, then the Government would have to rethink its decision of boosting an economy based on construction. Buyers being indifferent on these kinds of properties also indicate that there is a possibility of money being withdrawn from the property in Patna market and instead being pumped into real estate markets that offer better living conditions and facilities and have larger open spaces at the value for money prices.
Patna City builders are mostly keeping fingers crossed about the recessionary trend and hoping that it would end. Most of them consider the problem to be temporary only and should reverse once their situation improves. However, what remains a point of concern that do investors of Patna have enough financial clout for weathering the storm that is brewing a demand slowdown in the economy.
The increasing retail, commercial and industrial development in Patna combined with the social and civic infrastructure should encourage more people to opt for investments in the market. End users have ample of reasons to rejoice with the price of properties falling, thereby making it easier for them to invest. This would be the right time to invest for end users as there is no predicting when prices would rise.
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