Demand for real estate in Rajkot shoots up

Deals worth over Rs 1000 cr recorded in 12 months

After a five-year lull, the real estate market in Rajkot district has picked up.

During last 12 months, real estate transactions worth over Rs 1000 crore were logged in Rajkot district. Deals worth over Rs 600 crore were registered in Rajkot city alone. In comparison, deals worth Rs 350 crore were recorded in 2002.

For the last five years, the real estate market in the district has been inactive due to the depression in the economy and the famine. "The demand and price of real estate has shot up in and around Rajkot," said a real estate broker in Rajkot.

"The northwest parts of Rajkot city are developing fast and are the first choice for investors in realty. In areas around Kalawad Road, Raiya Road are sought after and the rates for land there vary from Rs 2,500 to Rs 7,500 per square yard. The most sophisticated residential societies are built in this area," the broker said.

Parties from Mumbai, Pune, Surat and the Saurashtra region, who had invested their surplus capital in plots, buildings and flats at Rajkot a few years back, have now got the opportunity to realise the best returns on their investments.

"Investors in real estate in the western side of Rajkot have reaped good returns. On Kalawad Road, Raiya Road and surrounding areas, people are purchasing real estate, with the price of land varying from Rs 5500 to Rs 7500 per square yard," said Madhubhai Bagdai, a leading real estate broker in the city.

In the business zone of Rajkot city "" areas like Para Bazar, Dharmendra Road, Soni Bazar, Yagnik Road "" price of land has shot up. On the main road of Soni Bazar, a plot costs Rs 80,000 per square yard. On Yagnik Road, the rate is Rs 35,000 per square yard.

Bakul Rupani, town planning officer, Rajkot Municipal Corporation said: "Every year about 2000 plans for new constructions are forwarded to us".

According to RMC records, shows registration of 2.30 lakh properties last year. About five years back, when areas around Rajkot were not brought under the RMC, the number of registered properties were just around 1.25 lakh.

During the last five years, some 40 to 50 thousand new houses were built per year. The number of water supply connections in the city stood at 1.90 lakh, according to RMC records.

With favourable rainfall and a general improvement in the economy, realty prices should stay high, brokers said. Pravinbhai Vasani, a builder in Rajkot, expects realty prices around the city to stay high for some more time.

"The price of land should stay high and may even increase in the near future. New construction were very few in the last five years. The demand for such property has shot up now," he said.

The easy access to home loans and falling interest rates has also triggered demand for real estate.