Ranchi, once the summer capital of unified Bihar, is still a favourite destination of many people, especially those in search of peace of mind. The city, with a population of over 15 lakh, still attracts people because of its comparatively pleasant climate and good schools. It has all the indicators of a modern city but it has not lost its traditional flavour, and that is where lies its charm.
The city has seen a phenomenal growth in real estate sector ever since it became the capital of Jharkhand in 2000. There is huge gap in demand and supply, primarily because of unavailability of land in the city area. “Ranchi witnessed huge influx of people from outside after becoming the capital. Many big companies started setting up offices here. All this resulted in a boom in the real estate sector — both residential and commercial,” says S N Singh, president of Jharkhand unit of Confederation of Real Estate Developers Association of India (CREDAI).
The city is also witnessing a retail boom. Big companies like Spencer, Reliance Fresh, Big Bazaar have already opened outlets. Reliance Hypermart will also be ready soon. Besides there are offices of most of the big companies and multinational banks. One multiplex has opened and another four are in the pipeline. This has resulted in a sudden growth in the sector. A few five-star hotels are also coming up in the city.
However, the basic demand comes from sectors like banking, insurance, finance, telecom, coaching institutes etc. According to an estimate, more than 10 million sq ft structure is being created to meet the demand. Also, there is not much scope for speculators as the buyers are those who want to purchase for self use or want to settle in future.
According to a government official, a new capital township — Greater Ranchi — is to be developed for which a global tender ha been invited. “Ranchi has also been selected as one of the Millennium cities, to be developed under the Jawaharlal Nehru National Urban Renewable Mission (JNNURM). All this is expected to give a fillip to the real estate,” he added.
With the state government announcing its rehabilitation and resettlement (R&R) policy, Jharkhand is poised for a big industrial boom. More than 60 companies, including ArcelorMittal, Tata Steel, Jindal Steel, Ispat Industries and Hindalco, have signed MoUs with the state government for setting up steel and power plants. Most of them have set up their offices in Ranchi while the rest are in the process of doing so. This has brightened the hope of developers.
“A majority of the development is taking place within the city. Unlike other cities, people here generally tend to avoid satellite areas because of poor connectivity in terms or road and public transport,” says Mr Singh. At present the concentration of development is in areas like Mahatma Gandhi Road, Circular Road, Ashok Nagar, Bariatu, Ratu Road and Kanke Road, where it is really difficult to get land. A majority of the projects are being carried out in joint venture or collaboration. “But we hope that once the Ring Road project, which is in the execution stage, is complete, the city will have a more defined area. In that scenario, connectivity of peripheral areas will also improve leading to further boom in the sector,” he adds.
According to Singh, the Chotanagpur Tenancy Act which prohibits sale of tribal land to non-tribals has been a major hurdle in the growth of real estate sector. “Due to the Act, we often find it hard to buy land for a project, despite being available in the municipal area. As a result, land prices are high but plots are less. The government must abolish this Act, at least in the urban areas, to facilitate real estate growth,” he adds.
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1 comment:
But the president rule is not the solution here.
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