ARTICLES ON BHAGALPUR REAL
ESTATE
WE THINK ABOUT BHAGALPUR REAL ESTATE.......
Content Team; www.buysellrentbhagalpur.net
How is price of residential plots in Bhagalpur determined?
(28/10/2012)
In the
current scenario of investing in apartments and villas which is
popular among prospective buyers in Bhagalpur, there is a set of
investors in Bhagalpur who opt for plotted investments in and
around Bhagalpur for the best capital returns that it offers.
Plotted investments in Bhagalpur have always been a long term
investment plan for each property investor in Bhagalpur. Likewise,
those who invest in a residential plot in Bhagalpur will have
futuristic thought of building their own dream home in later stage
of life.
In case of
buying an apartment, several factors such as credibility of the
builder, amenities, floor area and many more factors play a major
role before pricing the respective residential unit in
Bhagalpur!!
A plot bought in a growing neighborhood in Bhagalpur or in an upcoming market in Bhagalpur attracts all sectors such as commercial, residential as well as hospitality. Any infrastructural development that happens in the locality or the suburb will automatically increase the plot prices in that area in Bhagalpur. In Sabour, the property prices have risen ever since the plan for an Agricultural college was announced.
As we
are heading towards a developing society, there are much more to
come up. However, it is important to know and understand the
factors that have an impact in prices of plots before investing in
them in and around Bhagalpur. Here are the major factors that
determine the plot price in Bhagalpur.
Location
Location is
the most important and primary consideration to make while pricing
the plotted land property in Bhagalpur. Not only does villas and
apartments depend upon location, but also the plots. In a popular
locality or area where high growth is estimated, the price of the
plots will be higher when compared to those in the emerging
neighborhood.
Civic
Structure
The basic
civic amenities such as water supply, drainage system, sanitation,
electricity supply, mobile coverage and street lights and also the
developments of these amenities make a plotted investment more
appealing than those plots which lack these
amenities.
Connectivity
Connectivity
is the other major determinant of the plot price. It doesn’t just
include the presence of highways and roads, but also how well it is
connected to other parts of the city through road.
Soil Type Check for the groundwater
level and soil type before finalizing upon the land
deal.
A plot can be tagged as ‘geologically unstable’, if it is rocky or not suitable for deep digging. The main reason behind this is the non-ability of the land to support any structure. There will be negative effect upon pricing, if there is no sufficient ground water present.
Therefore, visit the plot site in Bhagalpur and understand
the pricing strategy of the property in Bhagalpur by keeping these
factors in mind before investing in plots in
Bhagalpur.
Smaller flats:- the unbeatable investment option in Bhagalpur? (17/07/2015)
In Bhagalpur, there is a huge demand for homes of all sizes. However, it makes perfect sense that the demand is highest for smaller-sized homes with sizes ranging from 750-900 square feet. Many home buyers in Bhagalpur at the beginning look for ‘starter homes’ in Bhagalpur- homes which fall within their current budgets and can be sold at a future time as their family as well as their incomes grow. As a result, the demand for smaller configuration homes is constant and dependable in Bhagalpur.
Most reputed developers in Bhagalpur provide 1 BHK and 2 BHK flats in Bhagalpur in their residential projects in Bhagalpur. In Bhagalpur, the newer townships in areas like Sabour offer excellent options. Because of the constant demand for them, property investors in Bhagalpur are also focused on smaller homes in Bhagalpur.
Apart from the fact that smaller homes are always the most affordable and the easiest to sell once they have appreciated enough, the rental demand for smaller homes is also steady in Bhagalpur. Many home seekers cannot afford to purchase homes in the costlier locations of Bhagalpur, and therefore prefer to live in rented ones. This makes compact flats an ideal investment option for property investors in Bhagalpur, both from a capital appreciation as well as rental income point of view.
The most attractive locations for investment into smaller flats are naturally the most central ones like Adampur, as these invariably offer ready access to the city's important workplace hubs. Commuting time to and from work is and will always be the primary consideration for any home buyer in Bhagalpur. These locations are also the most expensive ones, which mean that capital appreciation as well as rental income potential is highest in these areas.
However, thriving workplace hubs have also been cropping up all over the peripheral areas of Bhagalpur. These locations (zero mile- sabour, Hawaii adda) are the focal points of new residential catchments, and while properties in these areas of Bhagalpur tend to be relatively more affordable, they tend to appreciate fast because they are driven by employment. Even in these areas, there is invariably a huge demand from smaller homes on both the purchase and rental markets. It is important to note that smaller flats in Bhagalpur available for rent in both central and workplace-driven peripheral areas tend to see a lot of demand from large banks and other corporate, since such units are ideal for use as company guesthouses. Flats given out on long-term corporate leases are an ideal source of higher and steadier rental income in Bhagalpur.
Commercial real estate in Bhagalpur: Guidelines for retail investors in Bhagalpur (21/05/2015)
Buying an office in Bhagalpur or retail space in Bhagalpur is a huge investment, which is why commercial real estate in Bhagalpur has been traditionally seen as assets class that only heavyweight HNIs could invest in Bhagalpur. That, however, is changing. Many retail investors are now getting into the office real estate game.
Bhagalpur commercial real estate markets are undergoing a dramatic and rapid change in a short span of time. The next few years will see a quantum spurt in the services and knowledge sector, opening up tremendous opportunities for the retail investor in Bhagalpur.
Many developers in Bhagalpur are offering smaller units of space (as small as 500-1000 square feet) in commercial buildings in Bhagalpur. Investors considering buying retail space in Bhagalpur can now consider a multitude of affordable options in free-standing high street outlets or shops in malls. The advantages of smaller units are two-fold:
* It is easier to find tenants for them
* The premises can also be used for business by their owners if they happen to be of an entrepreneurial bent of mind.
Today, even professionals like doctors, auditors, stock brokers and lawyers are buying commercial properties in Bhagalpur for investment and self-use. Of course, HNIs also continue to plug huge amounts of money into high-ticket commercial properties in Bhagalpur in the quest for yield.
The investor in Bhagalpur commercial property market should focus on a few carefully selected markets with a diverse economic base, deep pool of tenants and tenants who like quality buildings. While looking at under construction projects in Bhagalpur, the investor should look at developers in Bhagalpur who have a track record of delivering high quality projects on schedule.
Despite the availability of more rationally priced options in Bhagalpur, investing in commercial real estate in Bhagalpur is most definitely not child’s play. It requires forethought, research and planning:
* Investors need to establish the soundness of the location and its demand/supply dynamics. If they do not engage in sufficient research, they may end up buying into micro markets which have or will have high vacancies.
* They need to ensure that the economy, job market, future infrastructure development and population growth in the market is healthy
* They need to check the developer credentials, access to public transport and quality of property management in the project
* They need a knowledgeable real estate agent and a lawyer who can give them sound advice
* If they are investing in a retail store, they need to consider the frontage, foot-fall and the dynamics of the adjoining catchment
* Entrepreneurs who wish to buy commercial real estate in Bhagalpur for self-use should ensure that the amenities in the project that match their business needs.
If an investor is looking at an income producing office asset in Bhagalpur, he should look at:
* The break-up of cash flows
* The vacancy factor
* Expenses such as maintenance, property tax and building insurance
* Lease term, lock-in period and expiry dates
* Long term capital appreciation potential
WHY INVEST in Commercial property in Bhagalpur?
The rental yield for commercial property in Bhagalpur usually is 8-10%. In contrast, the yield for residential property is much lower at 2-3.5%. Remember, you do not only make a profit on the sale of appreciated commercial property in Bhagalpur – the rental cash flows of a well-located office or shop space are considerable in Bhagalpur. Unlike in residential property in Bhagalpur, the income that can be generated from commercial property in Bhagalpur is what determines its value. In other words, the capitalization rate is actually the measure of the demand for the property in Bhagalpur. For those who do their homework well, investing in commercial property in Bhagalpur is a high-adrenaline and high-returns game that residential real estateinvestment in Bhagalpurcannot match.
Boom in Property prices in Bhagalpur real estate market!!
13/05/2015
Property prices in Bhagalpur have put in many years of double-digit gains, helping Bhagalpur real estate to reach price levels competitive with any other real estate market in the country. The residential and commercial rentals too have followed the same footsteps. No doubt the rising property prices swell government coffers with tax receipts in form of stamp duties, etc.
The prices are a result of demand supply equilibrium. Due to legal and regulatory tangles the last two years witnessed a supply deficient real estate market in Bhagalpur. It is a blessing in disguise because the national scenario tells us that the last two years were not good harvest for real estate sector as whole. Bhagalpur property market has been able to maintain its price levels and rentals.
The year 2015 will mark again a turning point in real estate Bhagalpur. The new master plan, the building byelaws, election at the end of the year, lowering interest rates and completion of many infrastructural projects will bring in new supply and demand. To usher the second round of double digit growth the property market in Bhagalpur need to tackle the PRICE elasticity. How the stake holders of Bhagalpur real estate sectors balance the price will determine the growth of the sector in coming years.
The price in Bhagalpur real estate sector is directly proportional to quality, affordability and location. The appeal of quality of construction and environment (landscape) is a must for the asset to attract buyers. At the same time the affordable limits on the mark up is crucial along with the location of the offering. The process entangles many co-ordinates of Bhagalpur social, economic and political aspects.
The demand for commercial real estate in the first phase of growth goes well for the real estate sector. The residential demand following it is a more sustainable model in an economy like Bihar. Unfortunately, Bhagalpur real estate is yet to see large commercial demands. It was thought that a number of MALLS will mark Bhagalpur real estate market but in vain as the e- commerce is really threatening the very basis of affordability of Mall model. Bihar missed the IT bandwagon which many states in our country enjoyed and therefore the IT/ITES industry too is not a driver in our market. We are not an “enterprising” society as such, which stops the demand from SME segment. Bhagalpur surprisingly even does not have a five star hotel even though the tourism is growing in the state. The commercial demand therefore is wide open in its nascent stage and the government policies will drive it in earlier phase.
The main deterrent to any such policy and commercial growth is the high prices of land in Bhagalpur itself. How surprising, the price index which reflects a buoyant real estate market of Bhagalpur is at the same time also its bottleneck in driving its growth. The growth of real estate Bhagalpur is dependent on the growth of many sectors in Bihar. The high land prices steal the “affordability” out of the growth equation. And one interpretation of this divergence between the economy and property market is that the high land-prices clearly starts crowding out wider economic activity.
It is only favorable cost which will attract an IT company or a large Hotel group to Bihar, apart from basic infrastructure like roads, electricity, regulatory benefits. An IT company in India if decides for expansion it will choose Bihar only when we offer the best competitive cost for its establishment along with other sops. Even a large Hotel will look for the same, because the gestation period for a 5 star hotel is almost 15 years from the start of the operations. Hotel industry represents a high potential sunrise sector of our state; Tourism. Therefore the price is a double edged sword of Bhagalpur real estate market growth story and also of many other sectors required to write the growth of Bihar economy. It also means that to set the ball rolling the state government will have to play the GOD FATHER’S role in the earlier phase of the second round of growth of real estate in Bhagalpur. Although, few expect this phenomenon will be enough to lead to a policy change because the state government finances are so reliant on the easy cash of taxing a property bubble. But the situation warns that leaders might have no choice but to find new growth drivers for Bihar’s economy, as some of the fortuitous external forces (grants from central government) that supported the state’s economy are set to reverse. For example, the state government should focus on building new tourist attractions, reviving old ones and constructing more transport infrastructure in the state.
Once the ball starts to roll the private real estate players need to keep their margins in check, otherwise it will be like the classic story of Golden Goose. The only way it can take place is raising the ENTRY BARRIER in Bhagalpur real estate market. The shift from value to volume will have to be the mantra of success. Otherwise Bhagalpur property bull market could come to an end, taking with it a key pillar of the economy of Bihar.
Vikramshila Setu and Bhagalpur Real Estate
(03/03/2015)
Vikramshila Setu is the bridge across the Ganga, near Bhagalpur, opened in 2001.Vikramshila Setu is 3rd longest bridge in India .The 4.7 km long bridge serves as a link between NH 80 and NH 31 running on the opposite sides of the Ganga. It runs from Barari Ghat on the Bhagalpur side on the south bank of the Ganga to Naugachia on the north bank. It also connects Bhagalpur to Purnia and Kathiar. This has reduced considerably the road travel distance between Bhagalpur and places across the Ganga.
The real estate in Bhagalpur, the second largest city of Bihar got wings with Vikramshila Setu. In fact Bhagalpur Real estate gained real momentum after the completion of Vikramshila Setu only. The bridge also brought in the flavor of APARTMENTS in the property market of Bhagalpur. The property prices in Bhagalpur have swelled manifolds since 2001 when the bridge was inaugurated.
The bridge opened Bhagalpur real estate for people of Naugachia, Purnia and Kathiar. Therefore a large number of investments in real estate in Bhagalpur took place in the first decade of the twenty first century. The market of Bhagalpur became more significant for a larger population. The residents of a village called Gosain Gaon near Naugachia now carry their marketing in Bhagalpur rather than in the local market of Naugachia. The story is true about many other villages too. Nevertheless, the flourishing trading market of Naugachia got reduced to a local Bazaar. Neither the real estate in Naugachia which is about 8 kms away from Bhagalpur zero mile got any boost.
The next round of real estate influx will therefore come from more infrastructures being laid down in Bhagalpur. A BY PASS is long due for the city and therefore the real estate along this route will get boost. The second major development could be the development of Ganga River front. Bhagalpur needs both horizontal and vertical spread to secure decongestion and grow tall and beautiful.
Price of plots in Bhagalpur.
(14/02/2015)
It is a known fact that land market value keeps on appreciating in Bhagalpur, and that has always been a plus point for investors in Bhagalpur real estate. Even though people are interested in buying flats in Bhagalpur, investing in land in Bhagalpur will give potentially higher returns to the investor in Bhagalpur in the long run.
Buying land in Bhagalpur can be a rewarding experience, particularly in a city that is struggling for space and where the real estate value is sky-rocketing. Although the culture of buying apartments in Bhagalpur has spread, still people are interested in buying plots and they look for plots for sale to create their dream house. When purchasing land in Bhagalpur, it is very important to know the factors that decide the price of plots in Bhagalpur. Let’s take a look at them:
Location
This is the first and foremost important factor which determines the price of land in Bhagalpur. One has to check whether the land is near a main road or any other important landmark. The closer the land to such population centers, the higher the value. The most desirable location for buying a land in Bhagalpur for investment is where one can find thick population and good infrastructural development, resulting in higher prices.
Use of land
Depending upon the use of land, the land value can drastically increase. If the land is vacant for some time and then it is utilized to build an institution, office space or for commercial purpose, it enhances the value of the land much more than if it is used for residential purpose. A commercial piece of land is always more valuable than the residential one. Agricultural land has the lowest price still in Bhagalpur.
Amenities and facilities
The government bodies play a significant role in enhancing the value of land in Bhagalpur. If a road is build or any other structure of importance springs up in the locality; the value of land increases manifold. The facilities can be anything like roads, communication, transport, water supply, electricity, power, sanitation, street lights, highways, etc.
Surroundings
The
term means those things that border the plot that have a vital
effect on its value. The residential plot which is surrounded by
lavish greenery will definitely have a high price even if the
residential plot in Bhagalpur is far from city
center. A residential plot in front of 8 feet road in city center
will not appreciate
Speculation
Speculation also affects the land value. Generally, when the demand is higher than the supply, this gives space for speculation. For instance, in Bhagalpur when there is rapid development and population growth it results in migratory movement of people from rural areas of Bihar to Bhagalpur. It augments demand for land in Bhagalpur and results in ever rising price of land in Bhagalpur. We saw this phenomenon just five- seven years back.
Floor area ratio or floor space index
The floor area ratio is often restricted by the zoning code and may have an imperative influence on the land value. The land in Adampur colony in Bhagalpur is still available at a price of Rs. 50 lakhs per kattha and the land on main Bhagalpur Banka road is fetching Rs 30 lakhs per kattha. Adampur cannot have multistoried buildings whereas Bhagalpur- Banka road has turned into commercial cum residential hub. FAR is used as a measure the floor size on the piece of land on which the building is built. If the planning authority increases the floor area ratio, then the market value of the land or plot increases. To be precise, this ratio controls the land value. The land owners have no contribution to it, but they gain benefit if the floor area ratio increases.
