Ranchi like many other real estate markets in the Tier II cities have been facing the perils of a very slow moving real estate market. There are not too many takers and developments have been stagnated for various diplomatic and practical reasons in the city. The capital of the state of Jharkhand, Ranchi is an important real estate destination. Properties in Ranchi hold a lot of real estate significance. But for now the market seems down and the year 2014 seems to have not gone very well with the realtors and builders in Ranchi.
One of the prime reasons for such a hard slump in the market is the rising cost of construction. The rising cost has led to builders increasing the price of apartments in Ranchi. Although the demand for housing mostly lingers around low cost and mid segment housing. This has not been resonating in the sentiments of the builders. They have been charging a premium price because of the increase in cost. But this hasn't gone to well with the end users. Consumers in the Ranchi market mostly comprise of the middle income group and price rise hasn't appealed to them. Additionally builders have been facing land acquisition issues in the city and consumers are troubled with high interest rate for home loans.
Kumud Jha, president of Credai Jharkhand, says to the Times of India that: "The city is going through a 'correction phase'. This means that whenever there is a price hike, growth rate becomes sluggish. The spiraling costs put a psychological limit on buyers. But it doesn't last beyond a few months. The city has huge potential for development. Kanke Road, Ratu Road, Main Road, Bariyatu, Hinoo, Argora, Morabadi, Dipatoli, Ashok Nagar, Kokar, BIT, Kathal More, Booty More, Piska More, Pithoria have seen an explosion of development and will see more growth in the coming years. Builders have complained that there is also very limited land bank available in the city to work on.
There are many restrictions and certain tribal areas that are out of reach for development. With a limited land bank one must make the most of the available space and invest in properties in Ranchi. This has also resulted in the hike in pricing. The rental market in the city is thriving, with a number of educational institutions situated here and demand for rental apartments in Ranchi constantly growing. Students and working places people migrate to Ranchi being the capital of the state. Most of the commercial, retail activity and office space market is centered on Ranchi. Mostly importantly the Hindi heartland prefers migration to cities like Ranchi. The place is a preferred retirement destination being the hub for a number of public sector companies like Mecon, SAIL, CCL, CMPDI and RDCIS.
However 2015 is what will see if the end users open up to invest in the market where the base price keeps rising. With many different schemes and deals charted out by realtors, might just encourage invest activity in the region.
One of the prime reasons for such a hard slump in the market is the rising cost of construction. The rising cost has led to builders increasing the price of apartments in Ranchi. Although the demand for housing mostly lingers around low cost and mid segment housing. This has not been resonating in the sentiments of the builders. They have been charging a premium price because of the increase in cost. But this hasn't gone to well with the end users. Consumers in the Ranchi market mostly comprise of the middle income group and price rise hasn't appealed to them. Additionally builders have been facing land acquisition issues in the city and consumers are troubled with high interest rate for home loans.
Kumud Jha, president of Credai Jharkhand, says to the Times of India that: "The city is going through a 'correction phase'. This means that whenever there is a price hike, growth rate becomes sluggish. The spiraling costs put a psychological limit on buyers. But it doesn't last beyond a few months. The city has huge potential for development. Kanke Road, Ratu Road, Main Road, Bariyatu, Hinoo, Argora, Morabadi, Dipatoli, Ashok Nagar, Kokar, BIT, Kathal More, Booty More, Piska More, Pithoria have seen an explosion of development and will see more growth in the coming years. Builders have complained that there is also very limited land bank available in the city to work on.
There are many restrictions and certain tribal areas that are out of reach for development. With a limited land bank one must make the most of the available space and invest in properties in Ranchi. This has also resulted in the hike in pricing. The rental market in the city is thriving, with a number of educational institutions situated here and demand for rental apartments in Ranchi constantly growing. Students and working places people migrate to Ranchi being the capital of the state. Most of the commercial, retail activity and office space market is centered on Ranchi. Mostly importantly the Hindi heartland prefers migration to cities like Ranchi. The place is a preferred retirement destination being the hub for a number of public sector companies like Mecon, SAIL, CCL, CMPDI and RDCIS.
However 2015 is what will see if the end users open up to invest in the market where the base price keeps rising. With many different schemes and deals charted out by realtors, might just encourage invest activity in the region.