Over the last decade, affordability to own properties in Patna have reduced 50 per cent, as the income growth has lagged behind the growth in property prices in Patna. Residential property in Patna currently accounts for over 85 per cent of the real estate industry in Patna and touches the lives of every one of us.
Real estate as the asset class spells hope, social status and a definite return on the investment, intended or unintended. Houses are the only asset class that the consumer purchases for self-use but benefits from value appreciation. A home in Patna is a product that is continuously usable from Day 1, continues to appreciate in value and gets the buyer the status of an asset owner. However, when the user turns seller he or she is often confused as to the final value since benchmark property rates in Patna have traditionally not been available. (See property rates inPatna).
Patna holds a strong potential for residential property market growth as there would be a significant property price appreciation in Patna over the next decade, with property market fundamental drivers, such as the SGDP, urbanization, income growth, savings rate, mortgage growth and affordability, expected to improve going forward in Bihar.
There are a few areas that still need attention from the policymakers to restrict uneven/unplanned growth in the property market in Patna, which puts pressure on the available resources and infrastructure —thereby impacting the property prices and affordability of houses in Patna.
Real estate developers in Patna have become more cautious. They have started aligning their business strategies with the changing dynamics of the industry. For example, the new residential supply has been controlled cautiously owing to headwinds in the real estate over the past two–three years. Further, the ticket sizes of housing units in Patna have been reduced in order to make housing units more affordable.
A majority of the demand lies in affordable and mid segment housing in Patna and potential buyers falling under this category usually depend on home loans/mortgage to buy their homes. Hence, increase in loan disbursement support the demand for real estate Patna which will lead to the growth in Patna property market.
Property prices have witnessed moderate or negligible growth after inventory overhang reached 24-30months in Patna during Kuldeep Narayan Era. Micro-markets, such as Gola Road which have limited number of residential projects, have though continued to witness high inventory overhang without any corresponding impact on property rates.