Saturday, 12 October 2013

Patna Real estate market: How to build Bihar's future cities

Buy Sell Rent Patna
The main reason that the Patna real estate market finds itself in trouble today is that prices have become unaffordable, even for most professionals. The underlying reason for this is an artificial scarcity of land in our cities in Bihar and particularly Patna.
There are several reasons for this: states have zoning restrictions, land-use rules and so on. This need not be a bad thing, but these rules are administered by inefficient and corrupt bodies. Clearances and permits follow a labyrinthine process and involve the greasing of many palms.
The resultant shortage of land in Patna where apartments, offices and shops can be built inflates prices. Today, as demand starts to weaken across property markets in Bihar, we need to think of ways to build really affordable real estate in Patna.
First, the government must identify tracts of land to build new urban projects in and around Patna. Once identified, the change of land use from farm or fallow land to commercial or residential must be automatic, involving no bureaucratic meddling. With conversion becoming automatic, middlemen and touts will disappear.
The price of farmland will then reflect the real value of residential or commercial property in Patna. That will be a huge incentive to sellers, who will realize much higher rates than unconverted farmland. Once land sellers buy into this model, much of Patna's current worries with land acquisition and construction will go. Property prices in Patna, too, are likely to come down to reasonable levels as the "scarcity of land" argument disappears.

Wherever possible, the government should encourage the building of high-rises, which use all resources, including land, power, water and parking facilities much more efficiently than low-rise construction. As Bihar, urbanizes, we cannot live with archaic models of land administration that encourage graft and curtail the supply of land.

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