High rate of urbanisation and growing percentage of real occupants will drive growth for the realty sector in jaipur, says anil sharma
Often referred to as India’s first planned city, Jaipur – the capital city of Rajasthan promises a great deal to real estate developers. As per the report ‘Residential Opportunities in Central India’ by Jones Lang LaSalle Meghraj, “Jaipur is located at a strategic point on NH8 (one of the vertices of the Golden Quadrilateral Corridor of the National Highways Development Project) that connects Delhi and Mumbai... Its share in the state’s urban population was 15% in 1991, which grew to 17% in 2001. Jaipur ranks first in the state with the highest urban population. The high rate of urbanisation is attributed to its administrative, trading, tourism based economic activities concentration in the state. Within the state, it is the center of education and provides one with better employment opportunities and living conditions.” Trade experts claim that the demand for land, houses and commercial property has improved lately with demand for property ranging between Rs.0.5-2 million being high. As per the Government of Rajasthan, there would be a demand for 17 lakh houses by 2021 in the state with an expected growth of 10-15%. Encashing on this opportunity, while some builders are trying to enter into affordable housing, others offering additional features (like complete wood work, modular kitchens, ACs, et al) to woo buyers. Subash Saini, Director, Guru Pragya Real Mart, a local real estate developer, says, “Around 70% of the buyers are end users and remaining small investors. Post-revival, some builders have already increased the rates of their projects and another 10% hike is expected in a month’s time.” Buyers who are presently coming to the market are from middle and lower middle class. “Long term investors who used to invest in higher end (cost) properties have still not entered the market,” says Ravindra Singh Thakkar, Director Unique Dream Builders. At the same time, demand for property, which can fetch rental income is presently high.
Investors who are presently investing are those who are looking at both rental income as well as appreciation in property price in next few years. As far as the actual selling strategy goes, builders are offering properties with new features at good locations. To lure investors and end users, builders right now are constructing properties in new developing areas and offering villas in place of flats and apartments for which demand has emerged. Better ambience along with more facilities is being offered in the townships by the builders. Lokendra Garg of Agarwal Properties says, “Builders are also offering affordable housing projects in the range of Rs.5-10 lakhs as a huge chunk of customer are from the salaried class.” Even cities like Jodhpur, Kota and Udaipur are expecting a robust growth of 15-20% this year. The state government with an aim to give a boost to the real estate sector has come out with a new affordable housing policy for the poor, low-income and economically weaker sections of society with the target of constructing 1.25 lakh dwelling units for them during the next five years. Every year 25,000 houses would be constructed in various cities of Rajasthan. As per Rajasthan’s CM, Ashok Gehlot, the policy is aimed at meeting the housing shortage for low-income groups in the state with encouragement for private sector participation. The applicants under the economically weaker and low-income categories will be allotted houses at a cost of Rs.2.40 lakh to Rs.3 lakh under the scheme. This coupled with the rapidly growing urbanisation of the state and especially Jaipur leaves a lot of untapped potential waiting to be exploited by regional players.
Often referred to as India’s first planned city, Jaipur – the capital city of Rajasthan promises a great deal to real estate developers. As per the report ‘Residential Opportunities in Central India’ by Jones Lang LaSalle Meghraj, “Jaipur is located at a strategic point on NH8 (one of the vertices of the Golden Quadrilateral Corridor of the National Highways Development Project) that connects Delhi and Mumbai... Its share in the state’s urban population was 15% in 1991, which grew to 17% in 2001. Jaipur ranks first in the state with the highest urban population. The high rate of urbanisation is attributed to its administrative, trading, tourism based economic activities concentration in the state. Within the state, it is the center of education and provides one with better employment opportunities and living conditions.” Trade experts claim that the demand for land, houses and commercial property has improved lately with demand for property ranging between Rs.0.5-2 million being high. As per the Government of Rajasthan, there would be a demand for 17 lakh houses by 2021 in the state with an expected growth of 10-15%. Encashing on this opportunity, while some builders are trying to enter into affordable housing, others offering additional features (like complete wood work, modular kitchens, ACs, et al) to woo buyers. Subash Saini, Director, Guru Pragya Real Mart, a local real estate developer, says, “Around 70% of the buyers are end users and remaining small investors. Post-revival, some builders have already increased the rates of their projects and another 10% hike is expected in a month’s time.” Buyers who are presently coming to the market are from middle and lower middle class. “Long term investors who used to invest in higher end (cost) properties have still not entered the market,” says Ravindra Singh Thakkar, Director Unique Dream Builders. At the same time, demand for property, which can fetch rental income is presently high.
Investors who are presently investing are those who are looking at both rental income as well as appreciation in property price in next few years. As far as the actual selling strategy goes, builders are offering properties with new features at good locations. To lure investors and end users, builders right now are constructing properties in new developing areas and offering villas in place of flats and apartments for which demand has emerged. Better ambience along with more facilities is being offered in the townships by the builders. Lokendra Garg of Agarwal Properties says, “Builders are also offering affordable housing projects in the range of Rs.5-10 lakhs as a huge chunk of customer are from the salaried class.” Even cities like Jodhpur, Kota and Udaipur are expecting a robust growth of 15-20% this year. The state government with an aim to give a boost to the real estate sector has come out with a new affordable housing policy for the poor, low-income and economically weaker sections of society with the target of constructing 1.25 lakh dwelling units for them during the next five years. Every year 25,000 houses would be constructed in various cities of Rajasthan. As per Rajasthan’s CM, Ashok Gehlot, the policy is aimed at meeting the housing shortage for low-income groups in the state with encouragement for private sector participation. The applicants under the economically weaker and low-income categories will be allotted houses at a cost of Rs.2.40 lakh to Rs.3 lakh under the scheme. This coupled with the rapidly growing urbanisation of the state and especially Jaipur leaves a lot of untapped potential waiting to be exploited by regional players.
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