Bhubaneswar - investment prospects

hema · 01-02-2007

My family have relocated outside Orissa due to job grounds. But we have lately heard a lot about the growth of cities like Bhubaneswar. Can anybody help me out to know the latest property investment prospects in my home state Orissa, specially Bhubaneswar.

thanks

Hema

suruchi · 01-02-2007

Orissa, and especially Bhubaneswar is in the recent times emerging as one of the hotspots for real estate investments. With a population of approximately 0.6 million, this small city is in a headway in industrial, retail and real estate development.

Much of its propect factor can be bestowed on the educational and job opportunitiies Bhubaneswar has been providing so far. Investors are finding this Tier III city a much better option to invest in when it comes to low property cost (compared to other similar status cities) and availibility of workforce.

Read this to have a clearer picture of the investment prospects that lies ahead in Orissa

Quote:

Orissa's First IT Special Economic Zone

Government of Orissa signed an agreement with real estate developer DLF Limited to set up Orissa’s first Special Economic Zone (SEZ) dedicated to Information Technology (IT).

The lease-cum-development agreement was signed between Orissa Industrial Infrastructure Development Corporation (IDCO) and DLF for developing 54 acres of land opposite InfoCity in Chandaka Industrial Estate. The project envisages construction of 4.12 million square feet of built up space of which a minimum of 60 percent would be dedicated to IT.

The land would be made available to the company on 70 years lease basis at a consideration amount of Rs 44 crore, approximately Rs 81 lakh per acre. The project cost inclusive of land acquisition would be about Rs 1000 crore.

Mr. Naveen Patnaik (CM) said that the project would give a boost to the growth of IT and ITES services in Orissa creating direct employment opportunities for about 25,000 software professionals.

DLF said that Bhubaneswar city would fulfill the requirements that IT companies look for when deciding on off-shoring locations, e.g. availability and cost of labour and infrastructure.

abhi · 01-02-2007

As far as investment in Bhubaneshwar property is concerned, Chandrashekharpur, Bhubaneshwar–Cuttack Highway is believed to be the best bets for the year 2007. Also, I have come across the news that Bhubaneswar is set to become the favourite Tier-II destination of IT companies.

Look to Chandrasekharpur of Patia at Bhubaneswar. Here Simplex, duplex, and Apartment is very popular. One duplex about 1815 square ft. building area contains a price tag of around Rs 20 lakhs.

Likewise, the cost of one Simplex is around 12 lakhs where the building area is 980 square ft. This phase of development is taking place at Marutivilla by Maruti builders. Talking about the 2 bed room Flat in Harihar apartment at Vir surendra Sai Nagar, it will cost around a whopping amount of Rs 10 lakhs. This location is 20 kilometers from the Air port and 4 kilometer from Railway station.

Club Town at CS pur near Infosys, jadukul Enclave Bamra Nagar at Surya Nagar Also going on by private developers. Although from the Govt side there is Bhubaneswar development Authority (BDA) to look after Constructions. But it did not have done any project for long time. Now it has planned Netajee Subash Chandra Bose residential and shopping Complex for medium and lower income groups.

ladu · 04-15-2008

Believe me there is a lot of hype on the real estate market in BBSR. Tell me what is it there in BBSR that a simple 1200 sft flat would cost you 20 - 22 lakh which is simillar in cities like Hyderabad and Bangalore. Moreover buying that would not yield you that much profit whic you can easily make in a city like Hyderabad & Bangalore.

Regarding Land - There are again a lot of hype about this. Lot many companies coming and taking land from Orissa Govt stating their ventures, but how many have really come to implement them. These are the things making builders sell the land and earn easy money but the real purchaser had to wait a long to get profit on the land. Similar things had happened with one of my relative who had bought a land near to the AIIMS site but where is AIIMS?? I am sure that in another 10 years also they would not come because we lack good poltical representation to bring things to orissa and when we have good poltical represenation then we do lack good leaders to represent our cause.

Anyway I am not discouraging anyone to buy property in Orissa but want to ensure that you do a clear calculation before you buy.

Regards
Ladu

**ssamantray** · 04-24-2008

I agree to your views to some extent. There is a hype certainly, and the most alarming thing is that the rise in real estate prices in certain pockets is more on speculations rather than real time demand. When you see at advertisements for sale of plots of land, you see the landmarks as AIIMS, Cultural University, Colleges, 5 Star Hotels etc etc, but once you reach the ground zero, you see barren patches of land, far away from civilization. All of the instituitions seem to be proposed ones, and as far as the timeline when they will actually be constructed (or whether they will be constrcuted there at all or not), nobody knows.
As far as apartments are concerned, costs of flats have increased, and that is understandable, known the fact that government is sitting idly on 70% of the city's land and builders have to content themselves with whatever remaining land private property owners have to offer. If you want a flat within city limits (which gets more difficult by the day), then be ready to pay a premium my dear! There is no other way round. Otherwise, buy some plot or some apartment in distant suburb and then wait enlessly for the infrastructure to be developed by the government!
Moreover, you cant expect property rates to remain low all the way. They are bound to increase in any developing city, leave alone BBSR. Scarcity is a major reason as I said.
In Hyderabad and Bangalore, you can no more expect 1200 sq ft apartment in 20-22 lakhs (if you still know, do let me know

). They must have risen in prices also. Every minute the rates are increasing. I myself bought a flat of 1100 sq ft on Cuttack Road in BBSR in 2006 at 1050/sq ft and the latest I heard that there are premium housing apartments being sold at 2000/sq ft and above bang across my apartment. And my flat in almost in middle of the city.

01-02-2007	#1
hema Member Join Date: Oct 2006 Posts: 25	Bhubaneswar - investment prospects My family have relocated outside Orissa due to job grounds. But we have lately heard a lot about the growth of cities like Bhubaneswar. Can anybody help me out to know the latest property investment prospects in my home state Orissa, specially Bhubaneswar. thanks Hema

01-02-2007	#3
abhi Member Join Date: Oct 2006 Posts: 23	Investment in Bhubaneshwar Property As far as investment in Bhubaneshwar property is concerned, Chandrashekharpur, Bhubaneshwar–Cuttack Highway is believed to be the best bets for the year 2007. Also, I have come across the news that Bhubaneswar is set to become the favourite Tier-II destination of IT companies. Look to Chandrasekharpur of Patia at Bhubaneswar. Here Simplex, duplex, and Apartment is very popular. One duplex about 1815 square ft. building area contains a price tag of around Rs 20 lakhs. Likewise, the cost of one Simplex is around 12 lakhs where the building area is 980 square ft. This phase of development is taking place at Marutivilla by Maruti builders. Talking about the 2 bed room Flat in Harihar apartment at Vir surendra Sai Nagar, it will cost around a whopping amount of Rs 10 lakhs. This location is 20 kilometers from the Air port and 4 kilometer from Railway station. Club Town at CS pur near Infosys, jadukul Enclave Bamra Nagar at Surya Nagar Also going on by private developers. Although from the Govt side there is Bhubaneswar development Authority (BDA) to look after Constructions. But it did not have done any project for long time. Now it has planned Netajee Subash Chandra Bose residential and shopping Complex for medium and lower income groups.

04-15-2008	#4
ladu Junior Member Join Date: Apr 2008 Posts: 1	Unnecessary hype at BBSR Believe me there is a lot of hype on the real estate market in BBSR. Tell me what is it there in BBSR that a simple 1200 sft flat would cost you 20 - 22 lakh which is simillar in cities like Hyderabad and Bangalore. Moreover buying that would not yield you that much profit whic you can easily make in a city like Hyderabad & Bangalore. Regarding Land - There are again a lot of hype about this. Lot many companies coming and taking land from Orissa Govt stating their ventures, but how many have really come to implement them. These are the things making builders sell the land and earn easy money but the real purchaser had to wait a long to get profit on the land. Similar things had happened with one of my relative who had bought a land near to the AIIMS site but where is AIIMS?? I am sure that in another 10 years also they would not come because we lack good poltical representation to bring things to orissa and when we have good poltical represenation then we do lack good leaders to represent our cause. Anyway I am not discouraging anyone to buy property in Orissa but want to ensure that you do a clear calculation before you buy. Regards Ladu

04-24-2008	#5
ssamantray Banned Join Date: Apr 2007 Posts: 18	Agreed, so some extent! I agree to your views to some extent. There is a hype certainly, and the most alarming thing is that the rise in real estate prices in certain pockets is more on speculations rather than real time demand. When you see at advertisements for sale of plots of land, you see the landmarks as AIIMS, Cultural University, Colleges, 5 Star Hotels etc etc, but once you reach the ground zero, you see barren patches of land, far away from civilization. All of the instituitions seem to be proposed ones, and as far as the timeline when they will actually be constructed (or whether they will be constrcuted there at all or not), nobody knows. As far as apartments are concerned, costs of flats have increased, and that is understandable, known the fact that government is sitting idly on 70% of the city's land and builders have to content themselves with whatever remaining land private property owners have to offer. If you want a flat within city limits (which gets more difficult by the day), then be ready to pay a premium my dear! There is no other way round. Otherwise, buy some plot or some apartment in distant suburb and then wait enlessly for the infrastructure to be developed by the government! Moreover, you cant expect property rates to remain low all the way. They are bound to increase in any developing city, leave alone BBSR. Scarcity is a major reason as I said. In Hyderabad and Bangalore, you can no more expect 1200 sq ft apartment in 20-22 lakhs (if you still know, do let me know ). They must have risen in prices also. Every minute the rates are increasing. I myself bought a flat of 1100 sq ft on Cuttack Road in BBSR in 2006 at 1050/sq ft and the latest I heard that there are premium housing apartments being sold at 2000/sq ft and above bang across my apartment. And my flat in almost in middle of the city.

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