The Business of Affordable Housing in Patna

The definition of affordable means different for different people depending on the socio-economic class, income levels etc. The term applies most pertinently to housing created for the EWS (Economically Weaker Section) of society so that they, like the middle class, can also benefit from the financial and emotional security of home ownership.

We are looking at an interesting new phase in Patna real estate where affordable housing in Patna will get preferred rather than 'poor cousin' status it has hold till now. The slump in Patna property market has clearly showed its stakeholders that is the best hedge. An interesting and important fact related to Patna real estate is that affordable housing projects have the fastest absorption rates. In other words, the creation of more affordable housing makes sense not only from a socio-economic point of view but also in terms of the real estate business. The demand in terms of units is phenomenal, and developers in Patna who have been focused on affordable homes from the start (or who are getting into this segment now) can build and sell their projects for years to come. Though affordable housing has not seen the kind of growth that Patna requires in this segment, it is in fact the most sustainable business model for real estate developers in Patna. Developers who concentrate on this segment of housing are completely insulated from recession or sentiment-induced market slowdowns.

Affordable luxury

In fact, genuinely affordable housing - projects wherein units are priced around Rs. 20 lakh - are completely recession proof since demand is not only steady but in fact constantly growing. As a direct effect of this dynamic, affordable housing is now also the most preferred asset class for property investors. There has been a huge supply in mid-income and high-end properties in Patna, but a marked lack of willingness among buyers to pay the high rates for residential spaces. As a result, we are seeing more and more investors focusing on budget homes.

Clearly, affordable housing is a business vertical that has stood the test of time when larger format housing has failed to attract buyers and investors in Patna. Today, larger developers in Patna who previously focused only on mid-income and high-end housing projects are seriously looking at building up their presence in affordable housing, as well. Their rationale is that the higher-volume/lower-margins affordable housing segment is a reliable hedge against the market slowdown in costlier housing, and also because budget housing is a new means for reputed developers to leverage their brand value.

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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