In what may come as a sentiment dampener for fence sitters, home prices are unlikely to come down in the near future as the Patna real estate market is already at its lowest point as far as prices matter.
“Prices have either seen marginal increment or have actually being at the same level since last year, shows a latest Patna real estate price trend report by www.buysellrentpatna.in. The report further says that there has been an implicit price correction as on average, properties in Patna today cost the same as two years earlier. The capital values therefore have stagnated in Patna reality market and the inflation is negated.
The central Patna has witnessed the largest drop in prices of around 15% over the last two years. Areas like Sampatchak seemed to have seen a double digit growth of 12%, but the increment is nullified, after adjustment for inflation. Kankarbagh and Rajendra Nagar have registered a price increase of 7.6%. Boring road and the adjoining areas have seen a drop of 4.7%. The surprise gainer is the area of Shivpuri, it has gained around 12%.The area of Ashiana is net gainer due to spurt in prices and rental after the double lane got under its way in this area. And if we consider inflation, the greatest looser is the western Patna, areas around Shaguna More, Khagaul, Gola Road and adjoining areas. Though now it seems that they are at a break point for new highs with major infrastructural developments gaining grounds in this area.
The other remarkable point is that the high capital value is not the only reason holding back consumers in Patna realty market. If this had been the case, it does not explain the large unsold inventory in the lower budget segments in areas like Ram Krishna Nagar, Beur, By Pass and more. With few exceptions, the prices in lowest budget segments across many areas of Patna have not even seen 10% growth over last two years.
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Additionally, the large unsold inventory being talked about by everyone in Patna real estate market is not homogenous. Projects are in different state of completion now, since the festive season. Consumers are likely to opt for projects with visibility of completion or by developers with good track record. And therefore such projects/developers in Patna have no incentive to reduce prices. And even if deep discount is available in projects in early to intermediate stages of construction, a consumer might not opt for the same if he is not sure of delivery timeline or reputation of the developer in Patna. Add to this the increasing demand of the land owners in Patna, which leaves little room for builders in Patna to offer any reduction in prices.