Wednesday, 12 December 2012

Education and its impact on Patna`s property market

T
he Oxford of the East was the  title that once was used for our Patna University.This very well tell us the standard of education we had in Patna not long ago. Then came 25 years of decline to almost zero levels. We can now talk of revival since 2005 in Education in Bihar. Therefore we are counting on the hope that we retain the title of "oxford of the east" once more. It is possible in context with Patna if the number of reputed schools, colleges and management, engineering and medical institutions in the city grows. No doubt the numbers are growing but there is a long way to go and the emphasis needs to be on both numbers and Quality. Apart from the real estate spaces required for the many educational institutions seeking to make an entry or to expand in Patna, this fact will also served to drive demand for residential real estate.


Growing Education in Patna


Many families prefer living in Patna because of the variety of schools and colleges available within easily commutable distances. Reputable developers make it a point to source plots in areas that have ready access to these institutes by private and public transport. Large schools too have responded by ensuring that their own school bus services reach all parts of the city.

In fact, access to schools and colleges is an important criterion for families who are looking for homes in Patna. For that reason, property prices also tend to be higher in locations which are close to established educational institutions. Nevertheless, the marginal premium that home buyers pay for this convenience is still far lower than it is in cities like Mumbai, Bangalore and Delhi. Nor does proximity to schools and colleges necessarily carry the same market clout in all cities. But In Bihar and therefore in Patna the clout of education is far greater than many other Indian states and therefore the proximity of an area to educational institution would mean a lot in Patna.

In metro cities in India, home buyers are primarily concerned with buying flats that allow them to travel to and from work. In smaller cities like Patna, reaching work is not as serious a challenge. The public transport system may not be cutting-edge, but most families find that their personal vehicles suffice for most commuting purposes. Nor is shopping anywhere as perilous in a town like Patna as it is in the larger metros, where few people can hope to access anything better than a 'kirana' store for their daily needs.

With a number of other home buying considerations taken care of in many of Patna's established and upcoming areas, proximity to schools continues to be high on priority list of property buyers. This is why, from a property investment point of view, buying a home in Patna which is close to one or more established educational institutions is an important hedge against real estate market variations.

A cursory study of pricing trends certainly indicates that residential properties which are near to a couple of good secondary schools appreciate better than others. Savvy property investors know that even in a recessionary market, a city's social dynamics do not vary far from the norm. With shopping, healthcare and workplace access not necessarily serious constraints, families in Patna nevertheless give utmost importance to the needs of their children. It is not without reason that developers in Patna whose project locations justify such claims highlight proximity to schools in their promotions.

Most families in Patna see such proximity both as a cost-saving advantage, as well as a source of peace of mind. Thanks to the fact that prestigious and established educational institutions are not transient by nature, these advantages are locked into a location over many years. It is therefore also much easier to sell such properties later on. This is an important investment factor that everyone considering the purchase of a home in Patna should take into consideration.