The global research agency CRISIL has termed Jaipur as a goldmine for the real estate investment. It also says that despite of rising interest rate, one should not postpone property purchase since prices will only go up in future.
The report titled ‘Real(i)ty Next: Beyond the Top 10 Cities of India’ shows that property rates in Jaipur have increased by 11-12% during the period 2009 to April 2011.
But, that is not the only reason why buying property in Jaipur right now makes a sense. Jaipur also offers the best growth prospects among the 10 smaller cities studied by CRISIL Research.
Price appreciation is not the sole determinant of long-term attractiveness for investment. Potential for demand growth, price stability, quality of infrastructure,” said Prasad Koparkar, head of industry and customized research at CRISIL Research.
The number of units sold in Jaipur in 2010 was the highest among the 10 small cities and second largest in terms of value of houses sold.
Rajasthan's flagship programme of affordable housing has resonated in the Centre with the UPA government urging all states to ape the model. The centre's recommendation comes after the project was discussed during the annual convention of the National Real Estate Development Council in New Delhi.
Our policy was well taken in the conference. Many states showed a keen interest in the project and want to replicate it.
India has 18 million homeless people, and Rajasthan shares nearly 10% of this burden. The state is also witnessing a major rise in slums. In a recent survey conducted by a government agency, slums were seen to have increased from 2 lakhs to 4 lakhs in less than seven years. In 2009 the Rajasthan government had drafted a policy for constructing 1 lakh homes and later scaled it up to 5 lakhs homes in next five years. To achieve the target, the government initially fixed the quota of 18,000 homes for housing board, 10,000 for urban improvement trust and 5,000 for private players. "We have several models for implementation of the policy. Earlier, the focus was only on government bodies to develop housing. But now private parties too have been included. For this, five different models have been developed. They are chalked out in a way that neither the private developer suffers a loss nor at the same time the applicants can afford it," Sandhu added.
However, the ambitious programme of the government seems to be unrealistic given the challenges that have delayed construction. Banking finance to the applicants has not gone beyond 20%. The delay in declaring transfer development rates and stay on section 90B for land conversion have proved to be the biggest hurdles. |
