Posh properties in Bhubaneswar have suddenly become rare commodity, thanks to soaring prices.
Prafulla Mishra and his family have been hunting for an apartment or a plot in the state capital for the last five years. But all his efforts went up smoke, the prohibitive costs of landed property in Bhubaneswar have put everything out of Mishra’s reach. With four years left for his superannunation, the law professor at Utkal University is gradually realising that a small garden house at Bhubaneswar where he can spend his twilight years is almost impossible. "I am losing hope. I don’t think I can afford it. The prices are becoming exorbitant,"regrets Mishra.
Mishra is just a case in point. Rapid urbanisation coupled with positive developments in sunrise sectors like information technology and biotechnology have jacked up property prices at the state capital. A 1200 square feet apartment in an up market area, for instance, now costs between Rs 15 lakh to Rs 18 lakh. This could still be termed as ’cheap’ by metro standards, but for Orissa’s state capital, which was all these years considered a ’pensioner’s’ city’, it is nothing sort of a boom for realtors and builders.
Real estate prices, according to market sources, have spiralled during the last two years, with builders creating a panic-buying situation. "A couple of years back, a 1200 square feet apartment was available for around Rs 10 lakh. But now it has increased by 40 to 60 per cent depending on the locality besides the look, fittings and et al," says builder Basant Sahu of Mahanagar Services and Constructions. The rates range between Rs 1100 to Rs 1800 per sq feet. So, for a 1200sq ft apartment the cost would be about Rs 16 lakh, including registration charges," he pointed out. "There is a sense of urgency as availability of land is on the down slide. No builder wants to lose out on a good patch, hence willing to pay heavy amounts for a suitable plot. Moreover, integrated projects, better furnishing and amenities have added to the costs," points out Sambit Kar of Manorama Properties. "
The price rise is not restricted to residential complexes alone. More and more brands are hunting for space to set up shop in Bhubaneswar. This is a new trend. A decade back leading brands did not have their outlets here, but now almost all are available or are about to enter the market. The concept of shopping malls, too, has been introduced through Forum Mart and it is now catching up. Ergo, commercial space, be it for offices or retail units, has become costlier with the price hovering around Rs 3000 for each sq ft compared to around Rs 2200 two years back," disclosed another builder, preferring anonymity. Recently, an eight-storey condominium in posh Sahid Nagar area was sold for Rs 1800 per sq ft, industry sources said. "The city is growing fast and requires10,000 to 12,000 houses a year," states chairman of Orissa Chamber ofHousing Developers Association R N Kar.
Paucity of suitable land within the city as well as Bhubaneswar Development Authority’s restrictions on construction of multi-storey buildings has added to customers’ woes. "Anybody and everybody in Orissa who can afford seem keen to invest in Bhubaneswar. Some, obviously, want property for residence purposes, but the majority is doing it for investment. Many non-resident Oriyas (NROs) are buying apartments or plots in the state capital. So also are affluent families hailing from smaller towns in Orissa," revealed G C Biswal, marketing manager of a city-based property dealer.
Crore-plus deals, which are commonplace in metros, are however still a far cry for Bhubaneswar. "Duplexs are selling for up to Rs 35 lakh. But standard housing plots (2400 sq ft) or apartments are available for much less. In future, Bhubaneswar will certainly witness crore-plus transactions," hopes Sahu. The real estate industry in Bhubaneswar is dominated mostly by home-bred proprietors.
But, of late, Sahara has made forays and started developing a big patch for housing along the Bhubaneswar-Cuttack road.Kolkata-based Bhabani Constructions, also, has started constructing a big shopping complex in Sahid Nagar area, while talk of the Ambuja group entering the market through a tie-up with state-owned Orissa State Housing Board has been doing the rounds for quite sometime. With the boom already evident, entry of the big players could only take the real estate prices higher up.
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