If you feel that the real estate boom is a phenomenon linked primarily with metropolitan cities, think again. Properties in Bhopal, the city of lakes, are getting hot like never before. And the real estate sector of the city, earlier dominated by a handful of local players, has now emerged as a fertile field for national realty majors like DLF, Sahara and Ansal.
At a time when properties at commercial hubs like Delhi, Mumbai, Bangalore and Hyderabad command prices ranging from Rs 2,000 psf to as high as Rs 40,000 psf, firmly indicating saturation, land prices in Bhopal’s most prime locations, moving between Rs 750 and Rs 7,000, are certainly attractive enough.
Besides, the Business Process Outsourcing (BPO) major Genpact has got clearance for setting up a Special Economic Zone (SEZ) at an estimated cost of Rs 150 crores and three other SEZ proposals, including one from Bhopal-based Netlink Software, are under official consideration.
So the overall environment for corporate investments is now healthy and stimulating. However, since all the projects are to come up close to the airport belt of Gandhinagar and Karond, only the top companies have the ability to procure land. In the adjoining rural areas during the early years of this decade, the prices of land used to range between Rs 1 lakh and Rs. 5 lakhs an acre. Currently, this is more than Rs 1 crore.
Consequent to the influx of fresh money in the market, the commercial spaces of TT Nagar comprising New Market, Mata Mandir, MP Nagar, Arera Colony and Bairagarh are in the bloom.
The development of commercial buildings in Bhopal is dominated by the state government agency, Madhya Pradesh Housing Board (MPHB) and local developers. One can simply observe construction activities, almost on a war footing, undergoing within the city in the aforementioned areas. Although the mall culture has not yet entered Bhopal, MoUs have been pouring in for establishing them. Take the Rs. 600-crore TT Nagar Re-densification Project aimed at converting the prime residential and commercial area of TT Nagar into a Central Business District.
Under III, a facility created by Infrastructure Development and Finance Company and Feedback Ventures, the project would be based on public private partnership (PPP) model. “Interestingly, the state government will not be bearing any cost of the project owing to the innovative strategy of the programme,” said Shailesh Pathak, head of IDFC’s PPP initiative.
‘Complete transformation.’ These are the two words that fully describe the kind of sea change Bhopal’s residential sector has witnessed in the past five years.
Nevertheless, it is the only genre where infrastructure mammoths like Sahara Housing and Ansal Housing and Construction Limited have forayed into the field dominated by MPHB, Bhopal Development Authority (BDA), and local players like Maxworth and Akriti Builders. Even real estate major DLF Limited has announced mega plans to invest Rs. 8,000 crores in projects in Madhya Pradesh, including Bhopal. The planned projects include housing, SEZs, IT Parks, hotels and convention centres.
That is why the land prices in Sun City and Data Colony have shot up astronomically from Rs 10 psf to Rs 500-750 psf in the past 8-years. More than 75 per cent land here belongs to BDA and Army while the rest is under individual ownership. To cash in on the opportunity, two local players, Dainik Bhaskar and Lakeland Builders, have managed to launch their townships in the region.
Sahara Housing is developing Sahara States, one of the largest planned townships. Located at Misrod Road, about 15 kilometers from Habibgang railway station and spread over an area of 57.07 acre, this ISO:9001-accredited township will have 1,117 dwelling units. Already about 150 families have been given possession, an official source informed.
With hectic property developments taking place in Bhopal, and with respect to its story of growth backed by strong economic indicators, the real estate sector here has all the makings of attaining higher growth rates in both commercial and residential asset class.
Yes, but I don't understand reason for this sudden hike. If you look at ground, nothing much has changed. No big industry / company came to Bhopal, IT also is grabbed by Indore so nothing to come to Bhopal. Is this hike because of black money of Govt officials working in mantralaya or politicians?