Varanasi: The New Hotspot on India’s Realty Map
Varanasi, the religious centre for most Hindus across the country, was not much in news till the 2014 general elections. Since then, the city has been consistently in the media, starting from being a constituency of the present Prime Minister, Narendra Modi, to being dubbed as a smart city as well as a heritage centre. As a result, the city has emerged as one of the major realty hotspots in the country.
Key growth drivers
Varanasi is considered a tier II city in the country’s real estate sector. Till recent, the city’s real estate was growing at a slow pace. But, a series of events have completely changed the face of the real estate market in the country.
1. Varanasi’s real estate started growing due to its political significance during this year’s general elections. Later, the new government that was formed at the centre announced Varanasi as a smart city, which further boosted the real estate sector. The recent announcement of Mr Modi to turn Varanasi into an important heritage centre similar to Kyoto in Japan, acted as a crown jewel for the city’s hospitality and real estate sector.
2. There are a series of measures being taken by the Varanasi Nagar Nigam and other local authorities that are giving a boost to the realty market here. The Varanasi Mahayojana 2031, the city’s master plan created by Varanasi Development Authority, has laid out a detailed plan to develop the city. The prime minister’s initiative to clean up the Ganga ghats has become another driver for realty growth.
3. There are several infrastructure projects in the pipeline. The Varanasi-Lucknow Highway (NH-56) is being widened into a four lane road. The Varanasi-Aurangabad section of NH-2 is being widened into a six lane road. The infrastructure along the Varanasi Ring Road is undergoing rapid development. All these infrastructure projects are driving the real estate market.
4. An important growth driver for the city’s realty are its tourism and hospitality industries. Varanasi has a thriving tourism industry since it is an important cultural centre. In his recent visit to Japan, Mr Modi signed a partnership agreement with the Japan’s prime minister, which focuses on preserving the heritage of the city, while developing it as a smart city. This is further expected to boost the hospitality and tourism industries here and consequently, the real estate market.
Areas witnessing growth in Varanasi
There are several areas in Varanasi witnessing a rapid growth. According to Ranjana of CMP Infrastructure, a local developer, “some of the areas witnessing high real estate activity include Mahmoorganj and the BHU areas.”
According to another local realtor, Shree Sai Baba Infra Projects Pvt Ltd, “any peripheral area within 10km radius of the city is a good bet, as the areas within the city have already gone beyond the affordable range. Some of these peripheral areas include Shivpur, Sarnath and Kesaripur. The city is currently attracting a good number of investors from all over the country who are looking to invest in residential plots as well as apartments.”
Real estate trends
The real estate activity is on the upward trajectory in Varanasi. According to local developers and agents, realty prices have witnessed a sudden spike in one year. “Properties in several prime localities that would cost about Rs 7,000 per sq. ft. one to two years back are suddenly costing about Rs 13,000 per sq. ft.,” states Ranjana. According to Amit of Shree Sai Baba Infra Projects Pvt Ltd, property prices within the city limits have gone beyond the affordable range.
While a 2BHK apartment costs about Rs 30-50 lakh in the outskirts, it costs about Rs 70 lakh within the city limits. A duplex house in the city costs about Rs 1-1.5 crore. Areas offering luxury housing include Mahmoorganj, Birdopur, Sigra and Khajuri. Areas offering affordable housing include Parav, Shivpur and Paharia. One may find a good number of residential plots in the peripheral areas for a budget of Rs 6-20 lakh.
Varanasi is experiencing a good appreciation in property values. Amit states that, “one may expect a short term appreciation of 100 per cent within two years in several areas. Long term returns also look good in the city.”
To conclude, Varanasi definitely has become a realty hotspot in the country owing to various factors in recent times. However, sustenance of this growth on a longer term depends on how fast and efficiently the planned infrastructure projects are implemented in the city.
