Reality of Jaipur Real Estate

We have taken a long time in writing this post for our readers. Being our place of origination, Jaipur deserves special attention in our analysis. Property market of Jaipur has become an unsolved puzzle for real estate experts now-a-days. Let’s see how.

Current Scenario

Right now the property market is touching skies in the capital city of Rajasthan. Land, although available in plenty, is becoming scarce partially due to the increasing investors’ population and partially due to the artificial scarcity created by the realty giants. Once famous for its beautiful bungalows & villas, Jaipur is rapidly getting covered by the high-rise buildings and apartments. The beautiful and calm city-culture of Jaipur is swiftly getting replaced with fast-paced metro-culture. Last 10 years have proven to be a game-changer for the city of Jaipur. In this post we will try to discuss some of these aspects.

Reasons for abrupt change in Jaipur

The dramatic change in Jaipur story as discussed above may be attributed to following aspects:

• Rapid urbanization
• Growth of Industrial Parks
• Development of new SEZs
• Highways & other Infrastructural advancements
• Proximity to Delhi NCR (Gurgaon-NOIDA-Faridabad)
• Immigration of several MNCs
• Investments by NRIs

All these coupled with various other factors like increased employment opportunities have paved the way for Jaipur Real Estate to experience an amoebic growth in last few years.

Creation of a Realty BUBBLE?

If someone tries to compare the Jaipur property prices of 2005 & 2014, he will undoubtedly allege Jaipur of being covered by the property bubble. But is it the reality? – The answer according to us is – NO. We couldn’t see any formation of any asset bubble or obnoxious growth of land prices. We agree that the current market rates are very high, but we believe that they are still not overpriced; rather it is their potential price level.

The kind of infrastructural facilities and standard of living that Jaipur offers, justifies its property price-levels. After all one can’t ask for all the awesome infrastructures and yet wish to keep paying the same prices for land forever!

Also, the development of inner and outer ring-roads around Jaipur has eased the commutation issues and increased the accessibility of all the corners of the city.

Where will the land prices move in future?

Although a tough-nut to crack, we trust that the land prices will continue seeing the sky route, especially after the elections which have resulted in the change in the government. History is evident that with this government, the land prices boosts automatically in Jaipur!

Closing Remarks

Although with our analysis and our intuitions we can say that Jaipur property market will boom further in coming future, we request our readers to so their own research before making any investments in this market.

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Bhiwadi – the next Gurgaon?

A lot of buzz is made around Bhiwadi as being an investor’s paradise. We thought of looking at it and share our views on the same. Here we go! We first heard about Bhiwadi from a close friend, a transport fleet owner. He proposed Bhiwadi as one of the best places to invest, about a year back. Let’s see what has been the price trend in property in last one year.

Source: www.makaan.com

The above chart depicts the trend of real estate prices for last 12 months in Bhiwadi. It shows a handsome growth of 13.72% YoY in the prices. So prima fascia our friend’s suggestion looks appropriate. Let’s now dig deeper in its details.

What is going positive for Bhiwadi?

There are several things working in favour of Bhiwadi at the moment. Some of which we could make out are:

Current Price Range	One thing to note from the above analysis by www.makaan.com is the price range, which lies comfortably between Rs. 2,200/sq.ft & Rs. 2,800/sq.ft. At this price range, it is extremely affordable and convenient for a small & medium investor to make the investment & one can expect a decent to good returns in the short term as we explained in our last post.
Strategic Geo-location	Bhiwadi is located at a small offset from NH-8, one of India’s most important National Highways. It connects New Delhi & Mumbai, the most important trade hubs in India. This location paves way for an enormous industrial growth in the region. Bhiwadi is making full out of this opportunity.
Proximity to NCR	Bhiwadi is located in Alwar district, Rajasthan at a distance of 50 kms from NCR (National Capital Region), Delhi. This proximity makes it an ideal home destination for the working middle class of NCR & Delhi.
Support by RIICO	Rajasthan Industrial Investment Corporation (RIICO) is taking every possible step to harness the growth potential that Bhiwadi is showing. New industries & corporations are being invited and SEZs are being developed in and around Bhiwadi to boost the economic growth of the region. It is a fast emerging Tier II city in Rajasthan.
Decline of Dharuheda	Dharuheda, another major industrial hub located in Haryana is just 10 minute drive from Bhiwadi. The non-cooperation by Haryana government in the development of Dharuheda is giving opportunity to Bhiwadi for development. Industries are now moving to Bhiwadi from Dharuheda where the land prices have already soared to more than 200% of that in Bhiwadi.
Positive Sentiments & Word-of-mouth Publicity	This is one aspect that is helping Bhiwadi the most in the current scenario. On every discussion forum, news articles, investors’ guides etc., Bhiwadi is getting only praises. Also the brokers and the investors favor investment in the town over any other place. This is one region that new investors are rushing to grab their piece of land in Bhiwadi.

Source: Indiatimes

Can Bhiwadi become the next Gurgaon?

If we look at the growth story of Gurgaon, it has emerged from rags to riches in a period of 15 years. The sole reason behind its success is industrial & real estate development. From what we can see in Bhiwadi, it looks like that it is also running on the same track as Gurgaon. The industries are growing like weeds and the town also lies on a node of upcoming mega development project DMIC by Government of India.

The only threat that we can see in front of Bhiwadi is the Master Plan of Gurgaon, which intends to smoothly take away the advantage from Bhiwadi. Also the now-quiet lion - Dharuheda can be a cause of trouble for Bhiwadi.

But looking through a bird’s eye view, Bhiwadi is on its way to next Gurgaon, in next 10 years & one can easily expect a property growth rate of around 15-20% per annum for next 5 years in Bhiwadi.

A NEWS article showing the potential of Bhiwadi to become a World-class city

Closing Thoughts: Bhiwadi offers an excellent investment opportunity for small investors and if you are looking forward to double your money in few years’ time, get your tickets done for Bhiwadi!

                              

                                  ------ Thanks for reading RealT Horizon :) Happy Investing ------