Connecting commercial, residential hubs a boon
In Jaipur, Jagatpura is an upcoming real estate activity hub. Its proximity to the airport and its accessibility is the primary attractive asset. Its connectivity with the commercial and residential hubs of the main city also works in its favour.
With a host of hotel projects and residential projects under development, Jagatpura has been witnessing frenetic real estate activity over the past two to three years. Commercial developments will follow over the time. Recently residential activity in terms of announcement of new projects has picked up with the main growth drivers being the proposed infrastructure projects and land availability. For these reasons more and more developers are looking to enter this market.
In Jagatpura real estate prices are still very reasonable, though over the past year they have moved up five to eight per cent y-o-y, demonstrating this region is on a growth trajectory. More particularly, rental growth has been to the tune of seven to nine per cent per annum while the capital values have increased four to six per cent annually. In Jagatpura the average capital values for residential property are currently between Rs 2,800 and Rs 3,650 a sq ft. For a 2-BHK flat the rental values are Rs 7,000-8,000 a month and for a typical 3-BHK it is Rs 8,000-12,000 a month.
Without a doubt Jagatpura is a growth corridor and impending improvements in social and physical infrastructure are likely to push this. As no good commercial projects are currently available, residential property is the only suitable investment option. In any case, as development and growth in Jagatpura’s commercial sector is likely to pick up pace slowly, the holding period for commercial property is likely to be higher. Meanwhile, residential prices offer good entry points and will offer strong returns over the long term. For optimum returns the holding period for such properties should be calibrated to between five and seven years.
Source: Business Standard
Airport, capital values, Commercial, Hotel projects, Infrastructure projects, Jagatpura, Jaipur, Residential hubs, Residential projects, Social and physical infrastructure
