Wednesday, 11 December 2019

Determine Your Needs and Belt your wants before buying a house in Patna


Patna is a thin real estate market especially when it comes to buying a house in Patna. Residential plots for sale and flats for sale are relatively easier to find for home buyers in Patna.

Before one begins to search for houses for sale in Patna one needs to create a realistic list of the needs to buy a house in Patna. Looking for a home in Patna can take time; in facts sometimes more than a year; and it takes longer especially if one is not focused on what is most important in buying a house in Patna.
House in Patna
Buy House in Patna
Hunt houses in Patna with a "shopping list" in hand; it will narrow your search. One should make a “wish list" and a "must have" list and more importantly understand the difference between the two. If you do not really understand the difference between them, you might sometimes reject houses in Patna that perfectly meet your needs in search of homes that meet your wants, which in many cases can be out of your budget and unaffordable.

Real Estate In Patna


That's not to say that you shouldn't try to get what you want - you should just be able to tell the difference between what you really need and what you would like to have while buying a house in Patna.

Wednesday, 21 August 2019

WHAT IS THE MEANING OF “AFFORDABLE” FOR HOME BUYERS IN PATNA?


A  survey conducted by our company  on 100 flats’ buyers in Patna found that two out of every three homebuyer  in Patna  sank in more than 50% of his total savings into the down-payment itself for purchase of flat in PatnaFlats as investment vehicle is never attractive in Patna as rental yields are very low in Patna and property prices in Patna are elevated in many localities. The ‘ideal flat in Patna’ should provide the convenience without the compromises, be affordable and have great resale value. Since this is an elusive dream, home-buyers in Patna should focus on one or two items on their wish-list. It is important to find a good middle-ground between utility and affordability while buying property in Patna

Affordable Housing

For a middle class resident of Patna, AFFORDABLE means property in Patna under the Rs 50 lakhs bracket.  Because the AFFORDABILITY measure = Ratio of EMI to Monthly income. A middle class family in Patna earns around Rs 75000/- monthly income (earning of family) and at most can afford only 40% of the monthly income as EMI for home loan. That is about Rs. 30000. It makes him eligible for a loan of about Rs.30 lakhs for twenty years. So with 10-15 Lakhs of saving, he can go for a flat priced around Rs 45-50 Lakhs.


To truly tap into this demand, builders in Patna would need to find a way to offer quality, basic amenities and proximity to the city but at these relatively lower costs. This is a challenge developers in Patna will have to face if they want to ride the next wave that is affordable housing in Patna.

Patna Housing


Without doubt, maximum affordability lies in the sub-50 lakhs segment in Patna real estate. Moreover, the government is giving sops for affordable housing, which is a big incentive for buyers as well as developers in Patna.

Will the sun finally rise on the affordable housing segment in Patna real estate?

Wednesday, 5 June 2019

Land Prices in Patna and Patna Real Estate.

Land for sale in Patna
Buy Land in Patna

It is the rising price of land in Patna that keeps the price of real estate in Patna always increasing because the land price is the most important price factor in the real estate price in Patna. But at the same time land prices in Patna are also dependent or better say partially dependent on real estate developments in Patna. With rising real estate developments the land prices too head northwards. This very symbiotic relationship between land prices in Patna and development in Patna real estate is major cause of real estate bubbles in Patna. Yes, it is interesting to decipher whether it is high prices of houses in Patna that makes the land prices in Patna higher or is it high land prices that makes buying a house in Patna exorbitant.

The price of property in Patna is made of material cost, labour cost, intangibles like location & brand, marketing and administration costs (for builders and developers in Patna), registration & stamp duty cost, taxes, brokerages and THE LAND COST. If we look at each component of real estate price in Patna; we will find each of these have been increasing in our country.

Even in so called developed countries the ratio of land price to real estate price vary from 30% to 50%. In Patna, if we buy one kattha (1361 sq.ft) of land where we can build our house immediately, it will cost us at least Rs.40 lakhs. So the land cost per square feet comes to be Rs.2939/- If we construct a house of 2000 sq feet on it ( we have taken two floors only because housing by-laws in Patna do not permit for more than 2000 sq.ft constructed area in one kattha of land), 1000 in ground floor and 1000 in second floor; the construction cost will be around Rs.1500 per sq.ft. Therefore, whereas the construction cost is Rs.1500/sq.ft the land cost is Rs.2939/sq.ft in Patna. The ratio is almost double. Therefore, if we calculate the land cost as percentage of total cost of real estate in Patna it comes to 2939/(2939+1500)  equal to 66%. And therefore in Patna people say “If one is able to buy land in Patna then he will be able to build a house in Patna.” This percentage is comparable to Singapore, South Korea and Japan. In Japan it touches to 90% in some pockets. But in Beijing, China it is only 35%.

buy house in Patna
Buy House In Patna

So at almost 66% of the total property price in Patna no doubt it is the land price that influence the property rates in Patna the most. Though we have established land prices as most important internal factor in a property price in Patna but “Consumption Story “ in our state Bihar which is clocking double digit growth year on year too spurs the demand and hikes prices of land in Patna. With increase in income people in Patna can go for home loans and purchase property in Patna. So we do not undermine the influence of interest rates and income on property prices as well as land prices in Patna.

Thursday, 11 April 2019

Patna to Patliputra once more!!!




Patna needs to be promoted as poverty fighter and engine of economic growth of Bihar. Patna needs to choose local economic development (LED) indicators and tools that can be used to collect and analyse data and assess the overall competitiveness of the local economy. Local priorities include identifying ways to improve the Patna’s overall economic performance and efficiency, promote competitiveness of the city in national and international contexts, and develop a broad-based job creation plan that includes the informal sector.



Overall success will come from involving all types of businesses (from microenterprises through larger private sector firms) in crafting the local development strategy, securing their involvement and investment, and defining the supportive role of the central government. A successful city development strategy (CDS) for Patna requires to be based on a careful assessment of the local economy components on which effective development strategies can be built.

A thorough knowledge and assessment of local conditions in Patna is required to implement city development strategies (CDSs). Therefore, effective LED strategies must be closely tailored to fit the specific local economic conditions and potential sources of competitive advantage in Patna. This can be achieved by making a thorough assessment of the city’s competitiveness, the starting point of any economic strategy. Only with a strong understanding of the Patna’s current economic structure, capacity, strengths, and weaknesses is it possible for Patna to put opportunities and challenges into context, develop a clear development vision, and prioritize strategic activities for growth. The effective local economy assessment that follows will help to ensure a better city strategy that creates jobs, spurs economic growth, and fosters social development.



The lead actors in Patna’s economy assessment need to be fundamentally local— and are those with a clear responsibility for and a commitment to improving the city’s development prospects. Political leadership and support at the city level is more important than top-down support from either regional or national governments.

The prosperity and welfare of Patna depends on the capacity to take advantage of opportunities for sustained employment growth and minimize the challenges of global economic integration and population growth in Patna. Therefore, the quality of economic development planning and city management is extremely important.

Developing sound local economic development (LED) strategies at the city level is critical to both good city management and economic performance. For Patna, understanding the local economy also includes assessing the informal economy and harnessing it to create sustainable sources of income for their urban poor. For Patna, it involves not only understanding the economic foundations of slums and deprived communities, but also finding opportunities for slum upgrading.



Patna real estate will play a major role in developing Patna. Sound local economic development will also help in keeping property prices in Patna in a range affordable and sustainable for all stakeholders.

To harness full potential of Patna and making it a world class city, economic strategy based on local advantages and urbanization with Patna real estate leading from front are must.



Tuesday, 5 February 2019

Warehouses in Patna

BuySellRent Patna

Warehouses form a crucial link - between manufacturers and us, the buyers from the local retailer. The turnaround time, or the time taken to deliver since ordered by either the consumer or the retailer is important for any company be it ITCs, the Unilevers, or the consumer durable companies such as Samsung and Whirlpool. They all manufacture their wares, ship out, and during various stages of transportation, store the products in strategic locations so it can be delivered in quick time, whenever they see demand. In the case of e-commerce (flipkart, amazon), the warehouses also ensure that the parcel the customer receives has the correct product ordered, that it hasn't been tampered, and safe.

Warehouses have always existed in Patna. GOL GHAR, the famous monument of Patna was built as warehouse in Patna in British period. Therefore what's new is the way; Patna stores its ware especially after GST. It is changing; from Godowns to warehouses.

Third party logistics players are making a mark in warehousing in Patna.  They are planning to buy huge parcels of land to develop logistics parks in Patna. It is a Patna real estate play, after all. Cold storage, agri-storage, and container storage too are the part of pie.

Patna’s warehouses, particularly, in the unorganized sector, were not really warehouses in Patna - they were godowns in Patna; in terrible shape. In monsoons, the roof leaked. When temperatures rose in the summers, it could damage electronic items. The floor quality, the heart of the warehouse because the throughput depends on it, was in poor shape as well.

Concrete or low quality steel godowns in Patna are now being replaced by steel structures, which are pre-engineered in factories and then assembled at the location. Modern warehouses in Patna are water proof, have good ventilation, and insulation to reduce the temperature inside that make it comfortable for those working. Every inch is covered by CCTV camera to avoid theft. Outside, planned wide roads ensure trucks come in and leave without a traffic jam.

The way Patna will store is going to change, particularly, after GST was enforced in 2017.
BuySellRent Patna


Fast moving consumer goods (FMCG) companies, consumer durable and other manufacturing firms are consolidating smaller warehouses across multiple states, set up to be tax efficient, into a few strategic but large ones considering India is now a single tax country. Patna with its strategic geo-location will be a gainer.

⏩⏩⏩For any requirement of warehouse in Patna CONTACT US

Wednesday, 30 January 2019

Forecast for the Patna Real Estate in 2019

2019 and Patna real estate


Post a series of initiatives by the government like RERA, DE-MONETISATION and GST the confidence of the home buyers in Patna has increased with a clear understanding of the property market in Patna and a regulator (RERA BIHAR) to look into their interest. 2019 will remain a buyer’s market in Patna dominated by end users plus affordable segment and investors still will keep away from residential segment in Patna property market. The builders in Patna, on the other hand have also witnessed a new regulatory business process in Patna real estate. 2019 will see them coming to terms to new demands of the sector and playing by new rules set up for REAL ESTATE. With the ongoing changes in the real estate market in Patna, builders in Patna should pay more heed to the end user's preferences in terms of social infrastructure, price, construction quality, location, and unit size. Residential projects in Patna which come under affordable range and are located at strategic locations will be more in demand. A number of new commercial projects will take off in western Patna around Saguna Mor and especially on road from Saguna Mor to Khagaul railway station.

Commercial real estate in Patna to boom

In 2019, there will be a huge surge of launches in Patna for the commercial real estate due to the widening of road from Saguna Mor to Danapur (Khagaul) railway station. It is almost a 3 km stretch.  On both sides of this road, MALLS and Office Spaces would spring up. A number of commercial cum residential properties too will start on this road. A large number of schools and colleges are already nested in this locality of Patna. Rentals in commercial realty in Patna will become an epitome of growth, as the investors tend to rent a commercial space rather than buying it.  Also, the increase in educational institutions in this area will drive student housing, which is a huge demand in Patna real estate

Warehousing to get a major boost

Another rising sector for Patna Real Estate in 2019 is going to be warehousing. There has already been a sharp increase in the demand for organized warehousing in Patna due to the advancements in e-commerce and implementation of GST. The demand for warehousing industry in Patna is expected to escalate more in 2019. 
The electronic and white goods segment is expected to be another key driver for growth in warehousing in Patna. The retailers entering Patna market in 2019 will require large warehousing spaces in Patna. By-Pass and Patna-Gaya road up to BELDARICHAK will see the main warehousing activities. One can expect an increased warehousing demand on Shivala- Bihta main road too in 2019.

Home buyers sentiment in Patna to shift: Affordable & Mid-market housing to see maximum traction

2019 is going to be a bright year for both the developers in Patna and home buyers in Patna, as mid-market and affordable housing in Patna will be a huge opportunity to invest in Patna. Home buying sentiments will shift towards the homes with compelling price over luxurious spaces because of the additional charges that the luxury properties come with. Hence, properties in Patna consisting of amenities and features of a premium project which are also affordable to a larger segment of the population, will be in huge demand in 2019. 

Millennials to bring a demographic shift in Patna real estate 

The real estate companies in Patna, since long, have been hearing about the rise of Millennials for a demographic shift in the market; however the impact has not been seen. 2019 is expected to be the year where Millennials will start impacting Patna real estate. The preferences and the needs of millennial buyers, like - residential projects with basic amenities, urban connectivity, and public infrastructure in a liberal neighbourhood, are likely to have a healthy traction in the Patna real estate market in the upcoming years. 

Co-working and Proptech to be a game changer

The numerous facets of Proptech and Co-working will be a major driving force for Patna real estate. The technological developments of digital tools combating the challenges of real estate industry by creating virtual and augmented experiences for the buyers, will add a futuristic scope to the sector. Also, the advents of chat bots, BIM, drones and next-gen innovations will further prove to be highly efficient and beneficial in making construction faster and safer for everyone in Patna.
Start-up eco system will further gain momentum in Patna and with it usher demand for Co-working spaces in Patna real estate. The new office culture of modern age will be on doors of Patna real estate in 2019.
2019 overall will set up new trends in Patna market which will set the ball rolling for years to come.

SOURCE:- This post first appeared on our website www.buysellrentpatna.in)


Friday, 31 August 2018

7 Factors That Affect Property Prices In Patna

Property prices in Patna
Property Rates Patna

What are the reasons that Property prices in Patna rises? Patna is a unique market as the demand comes from all around Bihar and even abroad from NRBs (non-resident Biharis). We have factored in few reasons in this write up.

1.     1. Growth  in household income


When household income in Patna grows, property prices too display a rise. The extra income is used to buy property in Patna as most end users buy property in Patna with
 home loans. As household income increases it eases out the payment of EMIs.

1.    

   2. Stamp duty and Circle rate of property 


State government from time to time revises the circle rate of different localities of Patna. An increase in circle rate means more payment of stamp duty, as stamp duty is a certain percentage of circle rates. The circle-rate increase directly hikes the property rates in Patna.

3.     Property investment can be hit by the impact of overseas buyers.


A recent example was crisis in Gulf. Property prices in Patna went up as buying from Biharis in Gulf countries increased back home. Similarly when Rupee falls against dollar, the Biharis abroad find properties in Patna cheaper and they start purchasing back home resulting in rise of prices. Do not forget that Biharis migrate in herds for opportunities away from Bihar. Overseas buyers involve themselves with new properties in Patna generally and so the increase in prices is more obvious.

1.     4. Real estate prices may be determined by urbanisation


If you take a look at the modernisation trends of the previous decade in Patna, you will notice that certain areas have urbanised faster than the others. Example is GOLA ROAD. Because people migrating to such places seek comforts like the modern lifestyle, smooth transport, various modern day amenities and facilities, the builders in Patna in these areas have to factor in all these aspects into their final prices. And the prices head north.

1.     5. Rental yields effect Property prices in Patna


Once a region in Patna starts getting tenants and vacancies decrease in new properties; the prices of property in that area of Patna rise. The tenants come in any area of Patna were amenities like school and hospitals are available. Retail shops too are a requirement these days.

1    6. Property prices may be affected by Infrastructural developments


A new road or a flyover can increase and sometimes decrease (flyovers) the property prices in Patna. If the property comes below the flyover the value of the property decreases immediately in Patna. New roads increase the prices many times.


1.   7.  New developed areas may result in decrease in Prices in older areas.


Areas in Patna like Exhibition road have witnessed fall in property prices due to many better options available in Patna, especially western Patna. These areas are cramped for spaces and parking is horror. People in search of comfortable lifestyle are moving to better spacious areas of Patna.


Property Prices Patna