Buyers in Patna seek 2BHK units; developers build larger homes in Patna.

How often do we come across a situation wherein supply in the real estate market is not aligned with market demand? The answer may be “YES”; in most cities. A similar situation looms large on the Patna real estate market. BuysellrentPatna has found, there is a significant mismatch between demand and supply of different configurations. While 2BHK seems to be the preferred size for buyers in Patna, developers in Patna are largely building 3BHK units.

The data also shows that supply for 2BHK units has remained just above 30 per cent, while that of 3BHK has inched up slightly and settled at 45 per cent of the total supply in the real estate market in Patna during the same period. Units of 2BHK have remained the preferred category with nearly 45 per cent share of the market demand. This indicates a considerable difference of nearly 15 per cent between demand and supply of 2BHK apartments in Patna.

Buyers in Patna are price sensitive. Most of the demand in the sub-city today exists for properties in the budget range of Rs 25-35 Lakh. Projects nearing possession were launched at much lower rates as compared to what the market values are today. For instance, way back in 2010-11 the value was approximately Rs 2,500 per sq ft. Thus, it was possible to construct a 3BHK unit within a budget of Rs 25-35 Lakh. However, today the rates are around Rs 3,000-3,500 per sq ft. At this rate one can only get a 2BHK apartment within the preferred budget range. Thus, the demand existed for the particular budget of Rs 25-35 Lakh and not for 3BHK units. However, the developers in Patna have not realized this.

FSI norms and scarcity of larger chunk of land also compel the builders in Patna to construct larger homes. If builders in Patna build smaller units, the projects would become too crowded. This in turn puts strain on the resources in the society. For instance, builders would have to give more parking space, larger club houses, etc. to accommodate the larger population. Thus, builders prefer to have a particular number of larger units to maintain the balance in the project.

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