carbideman

Bhubaneswar is very dear to my heart given that I belong to Orissa and studied in Bhubaneswar. I became a globe trotter with my job after my studies. I had a dream to settle in Bhubaneswar after my service (long way to go). I had seen the city in a state when Vanivihar square had only three small stalls (pan, chai and bus ticket booking) and I am talking about year 2000. In 10 years the city has gained as well as lost its sheen.

This December it took me 45 minutes to reach Vanivihar from Baramunda square in a Car. I was actually looking buy a land/house. I do not know what has happened to this city, it has become costlier than Mumbai and Delhi now.

Since Naveen Patnaik took over, Orissa got a face lift and I do not remember if it continues to be the second from bottom when it comes to poor state. Industries are still to flourish, tourism has not made its dent, Education has become a good business and people became arrogant.

Real estate became chaotic. One of my friends (now in Helsinki) lost 8.5 lac trying to buy a land, in a “khosla-ka-ghosla” situation while another friend is not sure about possession after 4.5 years of payment. No established or reliable real estate agency and no control over such land and building problems.

No more vomiting of frustrations.

I have few questions to fellow members:
(1)Who are the reliable real estate agencies with proven track records in Bhubaneswar?
(2)Is there any system to verify the reputation or genuineness of the deals?
(3)Is there any website to publish the real-estate news after verification?
(4)What are the duties and regulations in buying RE?
(5)How can I cross check the prices of land, house or flat?
Any suggestion solicited……….

satya_samantray

I can fully understand your apathy. Real estate is really unorganized in Bhubaneswar and prices have shot through the roof apparently due to speculation and for no big reason. What reason do we have which makes the prices comparable/or even more than that of Bangalore, Mumbai or Delhi? Do we have the infrastructure, do we have the necessary industries, do we have the jobs?? Builders go on increasing prices one aftre the other based on pure speculation. You cannot touch properties around Patia. See the mushrooming plotting schemes and prices around the proposed Infocity 2. Nobody knows when it will come up or whether it will come up at all, but the prices are increasing in pure speculation. And mind, it there is absolutely no infrastructure there.
And no reputed builder is coming up with plotting schemes. Big builders, if any, are only bringing up residential apartments and duplex schemes in main areas which are extremely costly. Flats in range of 35-40 lakhs and above and duplexes above 50-60 are the norm. Still, you can check with Kanchenjunga Builders (zestates.in), Metro Builders Orissa etc which are old and renowned builders in Orissa. As of others, while somebody praises, somebody else has bitter experience with them. If you have somebody in BDA who can find out current relevant official prices in areas for you, then it would be great. Since you are aggresively into finding out details, it would be great if you share your experiences with the group.

kanhu

Now a days it's very easy to verify the land records through ]http://bhulekh.ori.nic.in/[/URL]. Thanks for the egovernance. let me know if any one needs any help on it.

shreedas

I too paid 3.5 Lac for a land 3 years back and never got that. We have taken the matter to BBSR court and let's see how that goes. I am still looking for a right value land and so far not successful with this. If anyone knows any good source, honest, trustworthy realestate builder, can pass to me. Thanks!

carbideman

thank you Satya for the response and suggestions....

I had seen the organised real estate industry in many countries. The permanence of the structure (if as per standards) is considered mamimum of 30 years. In few countries the flats are calculated on a typical PV method where the calculation broadly like this:

Fixed Cost : Inflation adjusted cost of land / number of dwelling units
Variable Cost: Present rental value X (360- structure age in no.of months)
Other Cost : Cost of free amenities (to be declared)

Let us take a case example. If 18 flats are built on a land costing 18 lacs with an ongoing rental value of 5000 pm. If the amenities values about a lac, each unit should cost 20 lacs ie land (1 lac)+variable(360X5000)+amenities(1 lac). If the same flat is 5 years old then the cost will go up or down on the basis of the rental value/inflation adjusted proportionate land cost etc.

In any standards the quality of construction at Bhubaneswar be guaranteed for 30 years and the land cost is not subject to any audit. How can the flats be valued so much when the rentals are still squat.

Bubble is going to burst for sure...........

carbideman

Kanhu

I did not know the site http://bhulekh.ori.nic.in/ earlier. Its a great reference, though I am yet to browse it utterly.
thank you so much

suhani

I absolutely agree with carbideman.Guys this is your hard earned money...please donot just invest in any project before having all the analysis done.Bhubaneswar as such has lost all its charm now..and this realestate boom..rather bomb just adds to it.I fully agree bhubaneswar is developing..but the rates of housing and plots have just crossed the mark.It has just increased 50 times or more.The worst part is there is a section of people who are buying it aswell!!!!There needs to be a system in place for this.Rates need to be at par with the faciklities provided.If I compare bhubaneswra to any other metro..it still needs to grow a lot.If Bangalore could have a corection in real estate price,why not bhubaneswar.I really feel there needs to be a price correction to happen.This can only happen if we customers are aware enough..how these builders are exploiting us...

sandipswain

There will never be a system. You need to put effort before buying a plot.
Most people think that they can buy a plot remotely in bhubaneswar. which is not possible. You have to deal with this kuji tauter so called broker.
The first thing is never give them any money. First ask for paper then verify by a reputed lawer. Check who is the actual owner of plot in the registrar office. You may have to give few 100 bucks in the registrar office to the babus for verification. Then you can meet the owner and bargain.

Before giving any advance write down all the aggrement in a stamp paper.
Don't be afraid of this tauter (specially old age people) they only have the guts to eat a beetal leaf and ride a 2 wheeler.

Go a buy a plot it will take 1 month or so. One more thing oriyas generally have the habit of buying plots and flats with friends (2-3 friends) because they feel insecure themself. If 2-3 friends are buying then there is more chances that the deal will never be successful.

carbideman

Sandip Swain
Could not understand your statement clearly. Do you want to say it is riskier to go for such deals. I feel atleast it gives you a comfort to jointly initiate action (legal or otherwise) in case of any trouble, if you are in a group.

You mentioned few very relevant tips. However I feel those basic checks like EC, Ownership, etc. are adhered by all when they plan to buy plot or flat. I think Odias are conservative also in this matter, which is good.

The basis question is valuation, reputation, POA holder selling to multiple buyers or finding a genuine broker. I am sure all the guys visiting this section of the website are looking for acquiring a house in some form. You seem to have good experience in this. Could you share some more thought.

sandipswain

There is a govt website for the land records. You can check there if you finalize a plot. Generally the private plots are very venurable to fraud. So try for BDA plots or you can buy core house also.

I have done some analysis and feel that the Tomando area will be good investment in next 5 years. Donot go far till Janla or Khurda if you have 5 yr horizon. Janla and khurda are for 10-15 yrs or say 20 yrs prespective. Try in tomanda patrapada region. They are the hot place for investment in my opinion.