Roads in Bihar and real estate prices in Patna….

Source: RBI, Ministry of Roads, JLL REIS

The correlation between building road infrastructure and restricting house prices to moderate levels in Indian metros is shown in the above graph.

Length of road construction is known to have a direct bearing on real estate anywhere in the world and our Patna is no exception. But what is the correlation of Roads and prices in Patna real estate market? Does road building check property prices in Patna or they help them to rise?

As road lengths increase and there quality improves , connectivity improves across a wider geography – thereby attracting new project launches at lower price points away from the centre of Patna. An example is the connectivity of Bihta with Patna through the road. Another example is the flyover built above the Raza Bazaar area; it has made western Patna, Danapur, Khagaul, and Shaguna Mode more accessible as residential property market option. This has reduced or better say checked prices in central Patna. This would also help increase affordable housing projects near Patna in areas like Sampatchak, Bihta and Phulwarisharif.

This holds for intra city connectivity but what about roads built to connect Patna with other areas of Bihar?

If more roads are constructed to connect the state capital, Patna, with other parts of Bihar, property prices rise in Patna as the demand for property in Patna increases from people all over Bihar. The very best example has been the construction of Gandhi Setu in 1980s. It led to introduction of APARTMENT culture in Patna.

Currently, the only solution to the problem of urban housing shortage in Patna is building new infrastructure to connect more outer areas to the city centre. We at BuySellRentPatna.in feel that when new roads are constructed across rural and urban areas in Patna, the spread of development happens over a wider geography. These potentially bring down the premium that certain urban centres in Patna command for having better connectivity. This is particularly true for our infrastructure-starved city, Patna.

Fortunately, road infrastructure has emerged as a key focus area for the current state government. The young Deputy CM of Bihar, is keen on improving connectivity in and around Patna at a greater pace. According to media reports earlier this year, he has an ambitious plan to connect Patna with the most distant part of Bihar within Five hours. This is expected to improve freight movement, ease traffic bottlenecks and improve inter-city connectivity in the state. It will be interesting to watch residential property price movements in the coming years in Patna after completion of a number of road highways and bridges in and around Patna. We say so because as soon as roads are laid the adjacent land owners start demanding prices in multiples of previous price, and real estate prices in Patna are driven therefore more so by land component than construction and other soft costs. Strict restriction in land usage in Master Plans with no change permitted later would help set right the property prices in Patna.

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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