Negative sentiments have created bearish conditions in the real estate market in Bhopal. Even after the recent announcement of a cut in housing loan rates, the dull market conditions in the market have not improved.
The prices are stagnant since Bhopal is not an investor’s market. The builders play with low margins and cannot offer heavy discounts which are offered in the metros. “In a commercial area like Maharana Pratap Nagar, commercial space is available in range of Rs 8,000-10,000 per sq feet,” Manoj Meek, a real estate player, said. He is planning to develop a new residential complex in a premium area where he has plans to offer a three-bedroom house in range of Rs 29 lakh-Rs 50 lakh.
Although developers do not expect the market to remain dull for a longer period, buyers prefer to wait and watch. They expect the rates to go down further as they think that margins are still high and prices exorbitant.
“Negative sentiments have created sluggish conditions. The market is down by 20 per cent vis-à-vis last year. The rate cut has not impacted much as buyers expect them to go down further,” Kamlesh Kumar, promoter of a posh residential complex in the town. He also says there is no let-up in soaring commercial or residential land prices which according to him hovers around Rs 5,000 sq per feet in MP Nagar area.
According to him, Bhopal is still cheaper than any other state capital as land rates are as low as Rs 300 per sq feet on its outskirts and Rs 1,200 per sq feet in posh areas like E-8 Area Colony extension. On an average, the city developers receive 20-25 inquiries a day but prices are again beyond affordable limit.
“Does it make any sense to invest Rs 30 lakh for a two-bedroom flat in Bhopal where prime commercial locality like MP Nagar does not have even have a green-grocer’s shop? The prices are notional and exorbitant,” said Manoj Agrawal, who wants to buy a three-bedroom flat at a locality from where he can stay connected to his media management office.
The bullish trend started taking its grip on Bhopal since the division of the state. The town has yet to dot its sky with shopping malls, sky-scrappers, high rises, clubs and good quality hotels.
But it will take long time since buyers market like Bhopal does not promise hefty and handsome profit for businessmen and real estate is no exception.