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Jagatpura is an upcoming real estate activity hub in Jaipur. It is attractive primarily by virtue of its proximity to the airport and its accessibility. Its connectivity with the commercial and residential hubs of the main city also work in its favour.
Jagatpura has been witnessing frenetic real estate activity over the past two to three years, with a host of hotel projects and residential projects under development. Over time, commercial developments will follow. Residential activity in terms of announcement of new projects has picked up recently, with the proposed infrastructure projects and land availability the main growth drivers. More and more developers are looking to enter this market for these reasons.
Real estate prices in Jagatpura are still very reasonable, though they have moved up five to eight per cent y-o-y over the past year, indicating this region is on a growth trajectory. More specifically, capital values have increased four to six per cent annually, while rental growth has been to the tune of seven to nine per cent per annum. The average capital values for residential property in Jagatpura are currently between Rs 2,800 and Rs 3,650 a sq ft. The rental values for a 2-BHK flat are Rs 7,000-8,000 a month and for a typical 3-BHK, Rs 8,000-12,000 a month.
Jagatpura is doubtless a growth corridor and upcoming improvements in social and physical infrastructure are likely to drive this. Residential property is the only suitable investment option, as no good commercial projects are currently available. In any case, the holding period for commercial property is likely to be higher, as development and growth in Jagatpura's commercial sector is likely to pick up pace slowly. Meanwhile, residential prices offer good entry points and will offer healthy returns over the long term. The holding period for such properties should be calibrated to between five and seven years for optimum returns.
The writer is senior manager, research & REIS, Jones Lang LaSalle India
