Why builders in Patna would like to forget 2013 in a hurry!!!

Buy sell rent Patna

The real estate industry in Patna would want to forget 2013. The year saw builders stuck with lifetime high unsold inventories, thanks to the step taken by the High Court of Patna against illegal construction and Patna Municipal Corporation’s inefficiency to bring the house in order even though nine months have passed. Developers in Patna held back launches, refrained from sharp price cuts and pegged all their hopes on freebies and promotions. The home buyers stayed away from the real estate industry in Patna due to the mess and indecision of the governing bodies.

The home buyers in Patna expect a steep fall in prices of property in Patna. It is not to take place. We can call it a vicious cycle, but cash-strapped builders in Patna say they cannot cut prices given the high trajectory of inflation and borrowing costs, whereas buyers say they will stay away until there is a sharp price correction as buying a 2/3 bhk flat in Patna has become unaffordable. A bit of hope and glimmer of yester years was seen only in affordable housing segment where the cost of 2/3 bhk flats in Patna are below 25 lakhs rupees.

 A surest bang for the buck for Patnaites has been the real estate market, but the year that went by was an unusual one. 2013 closed with several key events changing the property game in Patna. These severely impacted all real estate segments in Patna -- retail, commercial and residential in that order. The worst hit was retail business. Poor revenue models, exorbitant rentals, a lack of specialty outlets, low brand pull and last but not the least sheer mismanagement, all of this have to be blamed for Patna’s glitzy malls losing their sheen. Vacancy levels are alarming high in corporate buildings in Patna, prompting developers in Patna to defer mall openings in Patna.

Rental values in Patna showed no signs of correction leading to sky-high vacancy levels in commercial spaces in Patna. No doubt Patna has a big gap between amenities and rental when it comes to office space. In a prime location for about 6000 square feet office space even 15 car parking is not allowed in Patna and the expected rent is about Rs. 75 and even higher per square feet.  Poor macroeconomic conditions and skyrocketing inflation in the Nation make consumers wary of spending leading to a stark decline in residential units demand.

The question now is will 2014 bring in some good news with developers chopping rates for home buyers waiting at the fence.