|BUY SELL RENT|
The real estate of Patna has hit a road block in last two and half years. The policy and regulatory log jams seems to be never ending. No new residential or commercial projects in Patna have seen the light of the day in last two years. The main culprit for this scenario is ban on passing any design maps by the government body. The mayhem created by the stakeholders of Patna real estate has one beneficiary though. The re-sale property market is the only saving grace of Patna Real estate in last two years.
The re-sale property market always exits in any real estate market side by side. It is always a shadow. What is striking in Patna Real Estate market in last two years that the Re-sale has assumed the main role. Even what is sold in Patna as new is actually the “hold-ups” by builders in Patna of the inventory in the good old days or the leftovers. The reasons are easy to guess; as no new maps have seen the light of the day therefore no new construction began in last two years in Patna. Secondly, a lot of under construction projects were stopped due to enquiries being set up on them for illegal constructions in part or more.
The home buyers in Patna were therefore left with little choices. The end users therefore began looking towards the existing flats which were not very old. A major crisis in Patna real estate is the maintenance of the Apartments in Patna. The less we say about it, the better. Apartments therefore which looked maintained, naturally attracted more takers. They also command a premium of 5 to 10 percent.
The location always is a major factor in the re-sale of flats in Patna. The areas like Boring Road, Kankarbagh, and Rajendra Nagar lead the location pack, with Ashiana, Jagdeopath, Raza Bazaar and Patel Nagar following closely. The surprise is the lack of demand in areas like Fraser road, Exhibition road, Dak Bungalow, S P Verma Road and adjoining areas of Gandhi Maidan. One reason is that the flats in these areas are much older; they are now facing congestion and the advantage that these areas were the business hub is now decimating with Patna spreading towards west.
The prices of property in the central Patna seems to have capped. In many cases it is moving downwards even, in central Patna. A price above Rs.6000/SQ FT all inclusive in the resale property market of Patna for any flat is an exception and it is hard to find takers. This price is applicable to flats which are less than three years old otherwise the price moves down to Rs.5500/SQ FT. The volume is equally distributed in the range of 30 lakhs- 50 lakhs and 50 lakhs and 70 lakhs but anything above it is a challenge. Therefore, even for a new flat at say Boring Road crossing one should not pay anything above Rs. 6000/SQ FT all inclusive. One other factor that has changed in Patna is the increasing difference between SBA and carpet area. It adds to the price one is paying for.
In fact our surveys and research point out that it is not advisable to bet more than Rs.5000-5500 per SQ FT for any residential property in Patna, New or re-sale. If you are an end user and you have a dream location in Patna in your mind you can pay a premium of near about 10% to the above mentioned price level. Any builder or developer and re-seller in Patna asking for more than Rs.5500 per SQ FT in their residential project anywhere in Patna is arrogant. Our advise, avoid them, you will get a lot of options. The good thing about buyers in Patna is that they need not pay Brand Premium, as Patna has no Real estate brand as yet. Though some arrogant builders feel they are number one but then there are many builders in Patna who feels so. The “BRAND” is missing from Patna real estate, which is unfortunate but a reality. Patna real estate therefore has one single premium called location and rest everything should be measured on direct value for money.
Another factor that plays an important role in Patna’s re-sale flats is the “society.” Yes, one is advised to query about the type of people residing in the society and their relationships. Do all of them pay for maintenance on time? Is there any infighting among the members? All these are important because you have to LIVE there and with them. Many societies in Patna will not qualify for these questions in positive. Therefore enquire in detail.
No doubt, Re-sale property market in Patna entails more search and research but the labour could be rewarding for lifetime.