News: Indian realty players strike it big in 'new' states
(TNN 08/06/2006) Mumbai - Big money lapping up chunks of land and growing migration to less disturbed destinations have triggered a realty boom in Uttaranchal, Chhatisgarh and Jharkhand. Business houses like Bajaj, Polar and Jindal Steel are stepping into these states, while more and more residents of Uttaranchal are moving to locations which are safer, offer more healthcare facilities and have more schools.
In Jharkhand, many early inhabitants are moving out of Naxalite-infested villages to cities.
In ’00, the regions were carved out of Uttar Pradesh, Madhya Pradesh and Bihar and given the status of independent states. “The property cost in Uttaranchal has shot up 10 times after it became a state. In ’00, a square ft of land in Dehradun cost Rs 12.04. In ’06, the same is for Rs 120.4/sq ft,” says Ramesh Dobhal, a Dehradun-based real estate consultant.
In Ranchi, the capital of Jharkhand, the property cost in the mid ’90s was Rs 500-600 per sq ft; it’s now up to Rs 1,200-1,500. People have moved to Ranchi from villages fearing Naxalites attacks, and have bought land in cities like Dhanbad and Ramgarh.”
“The property price in prime locations of Ranchi was around Rs 2,777.8 per sq ft, during the Jharkhand dispute. Now the same land costs about Rs 8,333.3 per sq ft,” says Rajkumar Tibrewal, manager, Ranchi Enterprises and Properties. Chhattisgarh is not far behind. Here, property prices have shot almost 400-500%, particularly after the BJP took over the reins. During the CLP regime, there were 61 villages under the Capital Area Development Authority (CADA), under which, a ban was imposed on property transactions.
After the BJP came to power, the ban was lifted, though construction of residential/commercial property is still prohibited. In Raipur and its outskirts, the property cost was Rs 40 sq ft in ’99. Now this is about Rs 400-500 sq ft. In posh localities, the going rate is about Rs 1,000-1,500 sq ft. Soon after the ban was lifted, prices soared and land changed several hands. Such multiple land deals, better known as the palti system, has destroyed many speculators, says Shailesh Verma, director, Partivi Constructions, Raipur.
In Uttaranchal, Rishikesh and Haridwar are costlier than the capital city Dehradun. “There is a rush to own land along the Ganges... so much so, that the river front up to Badrinath has been sold out. In Rishikesh, a 2 BHK flat near Lakshman Jhula is being sold at around Rs 70 lakh,” adds Mr Dobhal. In Ranchi, the property prices are higher than that in Bangalore. In Jharkhand, the rates have hit the roof and the government is doing little to check the price, says Mr Tibrewal.
In Chhattisgarh, land prices in Raipur and Raigarh have jumped with private investments in steel and mining. “In the absence of a refined realty policy, illegal constructions are proliferating. Also, ‘ashray shulk’, a shelter tax, has been imposed on the builders at the rate of Rs 200 per sq metre for any residential construction,” says Mr Verma. Thanks to this, the buyer will have to fork out much more.
In Jharkhand, many early inhabitants are moving out of Naxalite-infested villages to cities.
In ’00, the regions were carved out of Uttar Pradesh, Madhya Pradesh and Bihar and given the status of independent states. “The property cost in Uttaranchal has shot up 10 times after it became a state. In ’00, a square ft of land in Dehradun cost Rs 12.04. In ’06, the same is for Rs 120.4/sq ft,” says Ramesh Dobhal, a Dehradun-based real estate consultant.
In Ranchi, the capital of Jharkhand, the property cost in the mid ’90s was Rs 500-600 per sq ft; it’s now up to Rs 1,200-1,500. People have moved to Ranchi from villages fearing Naxalites attacks, and have bought land in cities like Dhanbad and Ramgarh.”
“The property price in prime locations of Ranchi was around Rs 2,777.8 per sq ft, during the Jharkhand dispute. Now the same land costs about Rs 8,333.3 per sq ft,” says Rajkumar Tibrewal, manager, Ranchi Enterprises and Properties. Chhattisgarh is not far behind. Here, property prices have shot almost 400-500%, particularly after the BJP took over the reins. During the CLP regime, there were 61 villages under the Capital Area Development Authority (CADA), under which, a ban was imposed on property transactions.
After the BJP came to power, the ban was lifted, though construction of residential/commercial property is still prohibited. In Raipur and its outskirts, the property cost was Rs 40 sq ft in ’99. Now this is about Rs 400-500 sq ft. In posh localities, the going rate is about Rs 1,000-1,500 sq ft. Soon after the ban was lifted, prices soared and land changed several hands. Such multiple land deals, better known as the palti system, has destroyed many speculators, says Shailesh Verma, director, Partivi Constructions, Raipur.
In Uttaranchal, Rishikesh and Haridwar are costlier than the capital city Dehradun. “There is a rush to own land along the Ganges... so much so, that the river front up to Badrinath has been sold out. In Rishikesh, a 2 BHK flat near Lakshman Jhula is being sold at around Rs 70 lakh,” adds Mr Dobhal. In Ranchi, the property prices are higher than that in Bangalore. In Jharkhand, the rates have hit the roof and the government is doing little to check the price, says Mr Tibrewal.
In Chhattisgarh, land prices in Raipur and Raigarh have jumped with private investments in steel and mining. “In the absence of a refined realty policy, illegal constructions are proliferating. Also, ‘ashray shulk’, a shelter tax, has been imposed on the builders at the rate of Rs 200 per sq metre for any residential construction,” says Mr Verma. Thanks to this, the buyer will have to fork out much more.
posted by InCar Group Press Room at 11:52
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