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Realty markets are adjusting to the new normal, following the Coronavirus outbreak. Most real estate destinations have witnessed a severe growth slowdown and halt in construction activities, during the first half of the calendar year 2020. Jaipur’s property market fared no better. However, the situation was quite stable, before the COVID-19 pandemic.
Residential property market trends in Jaipur
Nikhil Madan, MD of the Mahima Group, points out that property markets witness fluctuation once in every two years. “In the year 2018, property prices fell and we then saw a jump in the year 2019-Q1 2020. Most of the localities in Jaipur, especially the suburbs, including Jagatpura, Tonk Road and Mansarovar Extension, have seen a marginal rise in prices of residential properties,” says Madan.
In Jaipur, the preference for society or gated community living, is increasing, as people demand an upgraded lifestyle. The age bracket of property seekers has shifted to 28-45 years from 45-55 years and the former shows tremendous interest in real estate. The property market has now become an end-user-driven market rather than an investor-driven market.
Property rates and key micro-locations in Jaipur’s realty market
“There are different micro-locations to buy property in Jaipur, such as the Patrakar Colony, Jagatpura, Tonk Road, Ajmer Road and Sirsi Road. Properties are available in the affordable, mid-level and luxury segments. Home buyers can easily get a property of their choice and as per their financial capacity, in Jaipur,” adds Madan.
According to experts, property rates in the emerging localities of Jaipur vary between Rs 3,500 per sq ft and Rs 4,500 per sq ft, which is the basic selling price. Many factors affect property rates, such as the type of amenities, location, infrastructure support in the locality, builder’s reputation, etc.
Check out price trends in Jaipur
Impact of COVID-19 on Jaipur’s realty market
Ashutosh Kashyap, associate director – consulting services, at Colliers International India, explains: “The COVID-19 pandemic has affected real estate markets across India and Jaipur is no exception. The impact of the pandemic on Jaipur’s real estate is more pronounced, given the fact that the city depends massively on tourism, as the major economic driver. The impact on tourism has a direct correlation with hospitality demand, organised and unorganised employment, as well as the spending on retail in the city. Since most of the real estate activity of late has been in commercial projects, with elements of retail, offices and hospitality, the city is expected to witness subdued new construction and development in these segments.”
Post-COVID-19, there is likely to be greater demand for homes with open spaces, well-lit and ventilated rooms and spacious areas. In such a scenario, villas could fulfil all the requirements of healthy living. Developers are now also coming up with projects that offer better social distancing and health and hygiene to the home buyers.
Factors that would propel Jaipur’s residential market, post-COVID-19
As Jaipur is the financial capital of Rajasthan, experts maintain that its real estate market will regain momentum in the next few months. Other factors that will boost the growth of the residential property market, include the presence of the DMIC (Delhi-Mumbai Industrial Corridor), the culture-rich tourism options that the city offers and healthcare centres like Bombay Hospital and Reliance Medicity. A high level of literacy and a good education system, will also give rise to employment in the city. The companies shifting to Jaipur will boost demand for skilled workforce, thereby, supporting the growth of the real estate sector.
Why Jaipur is a great choice for home buyers
What are the property rates in Jaipur?
As per listings on Housing.com, property prices in Jaipur range from Rs 293 per sq ft to Rs 95,000 per sq ft, with average prices at Rs 3,864 per sq ft.
What is the average cost for rental properties in Jaipur?
Average rental in Jaipur is around Rs 19,439 per month.
What is the main employment-generating sector in Jaipur?
Jaipur depends heavily on its tourism sector.