When it comes to real estate, no doubt Patna has its own “Unique” way……but still national trends do sway over the mindsets of stakeholders in Patna Realty Market. Real estate and infrastructure growth are economic drivers as well as job creators. It is more critical for Bihar as the state does not have any manufacturing sector or Information Technology sector to talk about. Bihar still is predominantly agriculture (largest population still depends on it in the state) dependent and least urbanized state of India.
Sentiments among real estate sector’s stakeholders in Patna can be best described by the word “pessimistic” and one can see very few new launches of residential projects in Patna in the festive season of 2019.
Real estate in Patna is directly proportional to infra development and job creation in services and manufacturing sectors in Bihar. Unfortunately both these parameters have slowed down in last five years in Bihar. They have their spiral effects like returns on investments in Patna’s residential real estate have dropped. The simple reason with less of jobs there are less new home buyers in Patna property market. Now with low returns investors in Patna are looking away from real estate sector for investment and investors need to be in driver’s seat for Patna realty market to revive. That is why it is called spiral; interdependencies that are linear as well as non-linear.
The number of fence seaters have increased manifold in anticipation of price corrections, further lowering of interest rates and sops in form of reduction of taxes and rebates. The economic uncertainty prolongs decision making. The fact that housing prices in Patna have already bottomed out does not register since the sector is widely perceived to be in such turmoil that further price corrections seem inevitable.
A very simple dynamic perpetuates the vicious cycle of the overall slowdown in Patna real estate – home-buyers in Patna are averse to investing in under-construction homes, projects get delayed because of lack of funding, and slow or no construction progress further dampens buyer sentiment and prolongs revival.
Each and every stakeholder in Patna real estate needs to understand that the revival of property market in Patna is possible only and only when people in Patna will buy property in Patna and
However, given the goal of the Modi government the country is vouching to achieve the $5-trillion mark by 2024. Real estate is one of the key parameters to measure the economy across the globe. Estimates suggest that the Indian real estate sector has the potential to reach $650 billion by 2025. This substantial transformation is projected to elevate the GDP from the present 7 per cent to 13 per cent, thus being a significant participant in shaping the aforementioned vision. However, it is essential to understand the growth factors of the real estate industry and conduct structural changes in order to propel performance. It is the need of the hour to enable liquidity flow in the hands of common man to empower the purchasing capacity of the masses. Contrastingly, the banks are trying to strengthen their balance sheets and hence, the end home buyers are not able to reap the benefit of the slashed repo rates by the RBI.
1) Majorly driven by the ecommerce sector, warehousing and logistics have gained prime momentum.
2) Looking at the rising value of affordability, affordable housing is on the verge of evolving from a sub-sector to mainstream housing in India.
3) Budding sub-sectors like co-living, student housing and senior living are rapidly flourishing across major cities and Patna will soon follow the trend in coming years.
It’s all part of a bottom-up transformation that real estate is undergoing. The rules of the game are being rewritten, often at considerable pain for the present players in Patna real estate. Hopefully, a leaner, execution-focused property market in Patna will emerge out of this, one that works for buyers, sellers and investors in Patna.
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