The twin cities of Bhopal & Indore are the emerging hot spots for the local real estate developers, By raju kumar
Demographic and economic fundamentals continue to favour smaller residential markets in India. No wonder, the financial tsunami and the resultant slowdown that struck the the real estate sector in particular did not have an adverse impact on the real estate market in Madhya Pradesh. These days the twin cities of Bhopal & Indore are the darlings of the real estate players. But there are some stark differences between the two cities. While Indore is a city for the business class, Bhopal is known for its salaried class. Where on one hand, Indore is expanding at a stupendous rate (both horizontally & vertically), Bhopal’s realty growth is restricted within the boundaries of the city, thereby leaving scope for a lot of growth. And that’s why developers are more optimistic about this capital city. Even though the average cost of an independent house in Bhopal is around Rs.3 million, however keeping in mind the growing requirements of big industrialists, politicians & professionals, bungalows in the range of Rs.8 million to one crore are also being developed, which is less compared to the prices in big cities.
“Independent houses & flats cost less in Bhopal, as land rates are less compared to the big cities. Here mostly people buy homes for the purpose of living rather than for investment and this creates a pressure on us to build houses within the financial capacity of the consumer,” says Dharampal Singh, Director, Indus Builders. Dilip Suryavanshi, Chairman, MP Builders Association asserts, “The market here has been built on realities and that’s why the market did not face any negative impact of the slowdown.” Last year in comparison to the big cities the business was booming in Bhopal & Indore and in the times to come the real estate business in the two cities is expected to flourish. States Kishore Biyani, Director, Finance, Ackruti Builders, “Developers charge high prices in big cities by creating artificial scarcity. We develop projects keeping in mind the requirements of 80% of customers.”
Vijay Gandhi, Director, Kalindi Group, says, “Those who bought property from the investment point of view are out of market these days. There are more of real occupants who are willing to buy independent houses within the price range of Rs.2-2.5 million.” States Kulbhushan Mittal, CMD, Gyansheel Developers, “We launched low range flats. This fulfilled the dreams of a lot of mid-income segment people of owning their own houses.”
As there is vast abundance of land available in and around Bhopal & Indore, the markets in the two cities are growing keeping in mind the ground realities and as a result in the years to come the real estate market here will remain more or less stable. Even the state government believes that real estate sector is an area where there is a scope of a lot of investment opportunities. Many builders have already bought land from villagers that are adjacent to the big cities and are waiting with bated breath for the expansion of the city, so that they can leverage on their investments.
Demographic and economic fundamentals continue to favour smaller residential markets in India. No wonder, the financial tsunami and the resultant slowdown that struck the the real estate sector in particular did not have an adverse impact on the real estate market in Madhya Pradesh. These days the twin cities of Bhopal & Indore are the darlings of the real estate players. But there are some stark differences between the two cities. While Indore is a city for the business class, Bhopal is known for its salaried class. Where on one hand, Indore is expanding at a stupendous rate (both horizontally & vertically), Bhopal’s realty growth is restricted within the boundaries of the city, thereby leaving scope for a lot of growth. And that’s why developers are more optimistic about this capital city. Even though the average cost of an independent house in Bhopal is around Rs.3 million, however keeping in mind the growing requirements of big industrialists, politicians & professionals, bungalows in the range of Rs.8 million to one crore are also being developed, which is less compared to the prices in big cities.
“Independent houses & flats cost less in Bhopal, as land rates are less compared to the big cities. Here mostly people buy homes for the purpose of living rather than for investment and this creates a pressure on us to build houses within the financial capacity of the consumer,” says Dharampal Singh, Director, Indus Builders. Dilip Suryavanshi, Chairman, MP Builders Association asserts, “The market here has been built on realities and that’s why the market did not face any negative impact of the slowdown.” Last year in comparison to the big cities the business was booming in Bhopal & Indore and in the times to come the real estate business in the two cities is expected to flourish. States Kishore Biyani, Director, Finance, Ackruti Builders, “Developers charge high prices in big cities by creating artificial scarcity. We develop projects keeping in mind the requirements of 80% of customers.”
Vijay Gandhi, Director, Kalindi Group, says, “Those who bought property from the investment point of view are out of market these days. There are more of real occupants who are willing to buy independent houses within the price range of Rs.2-2.5 million.” States Kulbhushan Mittal, CMD, Gyansheel Developers, “We launched low range flats. This fulfilled the dreams of a lot of mid-income segment people of owning their own houses.”
As there is vast abundance of land available in and around Bhopal & Indore, the markets in the two cities are growing keeping in mind the ground realities and as a result in the years to come the real estate market here will remain more or less stable. Even the state government believes that real estate sector is an area where there is a scope of a lot of investment opportunities. Many builders have already bought land from villagers that are adjacent to the big cities and are waiting with bated breath for the expansion of the city, so that they can leverage on their investments.
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