Property In Patna : Investment Ideas

 Real estate in Patna in the last five years has proved beyond doubt that property valuations have taken a turn for the better and one hope in time to come the trend will continue if the GSDP of Bihar continues to grow at the rate above 10%. The real estate in Patna is definitely on the rise, with the growth thrust being provided by important factors such as demographics, interest rates, location and the state of the economy, which affect the prices of property in Patna, employment opportunity in the state, investment by NRBs (non-resident Biharis).

Correct insights in regards to the right time for purchase of property in Patna, price escalations, and recessions in the real estate Patna and other indicators like law and order, urban development and infrastructure, help in making valuable purchase decisions. So, what are these factors which drive and would keep playing an important role in real estate prices in Patna?

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Location of property in Patna

Buildings, real estate and properties in Patna, located in commercial and market areas, hold higher value than their counterparts in the residential areas. And therefore for the new buyers of property in Patna it is essential to note that now this type of opportunity lies in Western Patna if one is planning for future. It is common to find a higher price for buildings in well developed and approved colonies and areas in Patna as against those in the lesser developed and upcoming areas in Patna. We also need to remember that buildings which are constructed on freehold land tend to command a higher valuation than those on leasehold plots.

Amenities in Patna

The valuation of properties in Patna with better infrastructural capabilities and modern amenities are costlier than those which fail to provide proper electric connections, telephone lines, water sewerage facilities and all other infrastructure such as community centers, children parks, swimming pools, gymnasiums, parking lots or general stores. Valuation of property in Patna in coming days will be clearly based on the availability of necessities and facilities connected with comfortable housing in Patna.

Infrastructure in Patna

Infrastructural development is one of the most important factors which influence real estate prices in Patna. The presence of roads, airports, flyovers, malls and bus terminals and other facilities in the vicinity of the property in Patna, helps in value escalation of the real estate in Patna. An example in this regard has been the area around Shaguna More in Patna.

It is a known fact that connectivity is one of the most important requirements for investors looking towards purchasing land or property in Patna. This leads to the concept which explains a rise in the property rates in Patna which is well connected to entertainment hubs, medical facilities, educational institutions, retail markets and business centers, along with other day to day facilities.

Commercial Real Estate

With the opening of Malls in Patna, the advent of commercial real estate in Patna has started in Patna. Though Patna has a long way to go in commercial real estate to catch up with developments in areas like Noida and Gurgaon in India and much more to catch with Dubai and Singapore.

The development of malls, IT offices and Special Economic Zones near residential areas help in cutting down the time and energy wasted in commuting to workplaces and increase the price of property in the area in Patna.

Disposable Income

IT or information technology has being a game changer in Real estate industry in India. The same is expected in real estate Patna too. Properties which are located in agricultural areas or those dominated by manufacturing units attract a lower price than those situated near the IT hubs. The valuation of property is in direct proportion to the quantum of disposable income in the hands of the purchaser or the majority of population in that area. Therefore look out for the plans of major IT players planning to come to Patna and the areas where they establish there foot hold will give a dream investment in Patna real estate

Availability of land

In places where there is ample land available for residential purposes in Patna or development of real estate, the graph reflecting the rates of property in Patna shows a slower rise than in areas where land is comparatively scarce. Land is scarce in Patna, not an iota of doubt about it.

Demand and Supply

Demand for real estate in Patna in a particular area is inversely proportional to its supply. As the supply or availability of real estate Patna decreases, the price of property in Patna increases. Changes in population are the key drivers for demand. Along with an increase in the number of people inhabiting a particular area, the popularity of a particular locality in terms of people wanting to be a part of the locality also increases its price. Again we would say watch out for Western Patna and even Bihta.

Affordability

Affordability refers to the cost incurred by the owner in the process of enjoying or retaining a property in Patna. In layman’s term, it is the term which establishes a relationship between interest rates, property prices and wages. If any of above three variables reach their maximum level in a particular area in Patna, then the inhabitants start looking towards a better lifestyle elsewhere. Eastern and central Patna is an example.

Structure

The valuation of property in Patna in times to come will become dependent on the specifications of materials used, layout, design, durability and life cycle of the building or township in Patna. The quality and cost of materials during construction, size, current rates of labor, frontage and other physical attributes such as roof covering, height of the building, type of foundation , waterproofing and plinth level, will also affect the price of a property in Patna.

Customization

The cost of real estate in Patna becomes higher in the event of builders undertaking customization of residential space on the lines of the purchaser’s requirements. For example, some investors may want landscaped terraces or verandahs connected with their apartments, upgraded kitchens, specifically designed internal stairways in duplex apartments, higher quality paint and flooring, or other user defined changes. This leads to an escalation in the ultimate price charged to the buyer in Patna.

Before making their real estate purchase decisions, investors should conduct an analysis of these drivers to get a fair valuation of the property in Patna that interests them. Careful investigation and homework can lead to better returns, easy liquidity and more lucrative investments in Patna.