In the last few years, real estate market has gone through macro vital reforms which have affected real estate market in India. Bhopal is not an exception. Beside demonetization, RERA & GST, demand & supply gap has also played a major role in real estate market dynamics in Bhopal. Over supply an average inventory in excess of 5 to 6 years downsized the overall real estate sales at India level as well as in Bhopal.
Fundamental shift in demand patterns:-
Despite of after effects of reforms & excess inventory which has affected majorly in primary market, secondary market (resale property) has been constant in past 3 years post reforms, which can be substantiated by registrar office data analysis. Real estate is still most preferred investment option in the minds of Indian buyer, the major difference is now real estate buyer has become more intelligent & making smarter decision while buying properties. An investment oriented buyer understands that this is the best time to invest in real estate to get benefit of real low price points.
Investors are now exploring more pre–leased properties on base on annual ROI calculation. Pre-leased property buying is a new trend slowly catching up in Bhopal too.
Residential properties are not a major focus for investors in Bhopal. Residential properties are mainly explored by end users, resale property buying in Bhopal has seen a constant buying trend in past few years due to high GST implications, but now most of builders are offering reduction of GST benefit to new home buyers & best price offers is slowly improving sales of developers’ inventories. A slow upward trend in primary market is visible now.
Bhopal residential buyers with average budget from 40 lakh & more are generally duplex/Row house lovers but in the recent years high end apartment demand is also catching up. Generally NRI families & Metro city returned clients are constantly looking for high rise luxury apartments with high level of secured campus.
Affordable housing, which is a nationwide new trend due to new Govt focus area, is yet to be explored by Bhopal real estate developers community.
If we look at commercial real estate segment. Commercial leasing demand can be constantly seen in market. Big commercial projects & commercial space buying is less due to overall economical recession, but small size offices buying demand from 500 to 1000 sqft average is constantly seen in market. Besides office spaces, commercial small shops demand in prime commercial areas of M.P Nagar, New Market, 10 Number Market and in Bittan Market localities is constantly moving upward.
Festive season of Diwali
Diwali is considered an auspicious time for buying properties in India and especially in Bhopal. New home buyers are constantly exploring options in both primary sector & secondary sector. Hoshangabad Road, Bawaria kalan, E-8, Ayodhya bypass is having a constant demand.Besides this Shapura extension, Kolar Road, Danish Kunj, Katara Hills are also considered as preferred locations for newly constructed houses.
We are expecting a rise in demand during this festive season as reform after effects has settled down. Prices of properties are at genuine level. GST has come down from 12% to 5% .Housing loan are supporting to buyers. RERA act is more assuring security to buyers interests & hard earned money. More professional RERA registered real estate advisers are available in market to provide professional advice post proper need analyses of any buying demands.
I wish a very happy real estate buying to all Real estate buyers & investors in this festive season of Diwali.
Author is Proprietor of Ekta Realty Solutions and Honorary Secretary, Association Of Bhopal Realtors; and member National Association of Realtors-India Views expressed in this article are of her own.