Residential Buying in Patna Real Estate Market

Residential Buying in Patna Real Estate Market – Next Six Months

Developers in Patna would be expecting increased traction during the festive season though, the demand in most part of the city remained lack lustre last year in 2014. And not to forget the state elections too will influence decision making of the home buyers in Patna.

Interestingly, despite lower demand, developers in Patna do not seem to reduce their base selling prices but are offering various innovative payment plans, such as possession linked plans where one has to pay only 10 to 30% up front and the rest can be paid at the time of possession. This shows that Patna real estate market is definitely facing the heat due to unsold inventory. In the secondary market, a substantial discount is available on under-construction properties in Patna. The primary reason of this lower transaction volume is unaffordability. Residential real estate prices in Patna have traversed the affordability levels in Patna property market due to various reasons such as escalation in input costs, high interest rates and burgeoning land prices.

In residential segment while absorption in the luxury segment is expected to remain under pressure due to high price points, the launches in the mid-end and low-end segments will continue to have traction at the introductory prices in Patna property market. What middle income home buyer in Patna actually wants is project with basic amenities with the price point which he can afford. It has been observed that even during challenging times, residential projects in Patna with right price point witnessed high absorption level. Overall, capital values are expected to remain stable in most of the real estate market in Patna in short to medium term due to ample stock availability in both primary and secondary markets.

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Naubatpur; an ace investment destination for land buyers in Patna

If you want to put your money somewhere and forget about it, buying land in suburbs of Patna like Naubatpur could be the investment vehicle you’re looking for. Think about it: land is a long-term, tangible asset that doesn’t wear out and doesn’t depreciate. If you go into investing in land with the intent of holding the right property for the long-term , it can make a lot more profits than any other investment asset class out there. Buildings can be replaced and demolished, whereas land is a valuable and finite resource , with only limited quantities available. And Bihar has a population of 15 Crores and per capita income of Biharis are increasing in double digits. Land investing is for the patient, smart investor, someone who is willing to hold for the long-term or pass it on as a legacy. It’s for the investor who is looking ahead for 10 – 15 years. Land is a smart long-term hold, allowing you to win the benefits of rising values. Especially if you buy in an area like Naubat

Land Prices in Patna and Patna Real Estate.

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, tax

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 s ank in more than 50% of his total savings into the down-payment itself for purchase of flat in Patna . Flats 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 . 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 ( ear

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