2014-11-21



Do you wish to invest in Jharkhand properties? If you do, then the next question would be in which city? Jharkhand has a number of well developed cities such as Jamshedpur, Ranchi, Dhanbad and Bokaro Steel City. These cities have been in the forefront of the industrial revolution in India and have been credited with a number of firsts such as the first iron and steel factory at Jamshedpur,  the largest open cast mines in Dhanbad and Godda districts in Asia, the biggest explosives factory at Gomia, Bokaro, the Bokaro steel plant, which is the largest in Asia and India’s first methane gas well at Parbatpur, Bokaro. In addition to this, India’s first coal washery is at Ghato in Ramgarh district.

Jharkhand, one of the states in the east of India, was carved out of the southern part of Bihar. The state shares borders with Bihar on the north, West Bengal to the east, Odisha to the south and Chhattisgarh and Uttar Pradesh to the west. More than 40% of the mineral resources in India are in Jharkhand.

The state has a very high per capita income, especially in cities such as Dhanbad and Jamshedpur.  Ranchi is the capital while Dumka is the sub capital of Jharkhand. Jamshedpur is the largest and most industrialized city while Dhanbad, famous for its coal mines, has the second highest population in the state.

One of the most popular cities where people buy homes in Jharkhand is Ranchi. The city is located 600 m above sea level, on the southern part of the Chotta Nagpur Plateau; a location to which its pleasant climate is attributed. This is one of the main reasons why people decide to buy apartments in Ranchi and also why it was the summer capital of undivided Bihar. Another reason is that the city has a large number of excellent educational institutions; so people from the Hindi belt move to Ranchi for their children’s education. In addition to this, there is no major metro within a 100 km radius of Ranchi. Finally, many of the major public sector undertakings are headquartered in the city and people working here often stay back in Ranchi.

Most of the investment into Jharkhand properties is in the cities such as Ranchi, Jamshedpur, Bokaro and Dhanbad. The price of land in Jharkhand had started to rise since 2008-09. This increase in the price of Jharkhand properties has continued, except for a slight price correction in 2012.

Similar to other parts of the country, home buyers investing into apartments in Jharkhand cities are also looking for high end amenities. Home buyers are now very picky about the quality of construction, one builder said. Facilities such as swimming pools, children’s play areas, gyms, gardens, common party areas and 24/7 security services are now a must. The demand for gated communities is also on the rise.

People are now buying properties in Ranchi on the outskirts of the city mainly because of the Ring Road which provides better connectivity. New projects are now coming up in places such as Kanke (rural), Ormanjhi, Booty More and Khunti Road among others.

Builders who wish to develop Jharkhand properties are faced with the problem of land acquisition. Real estate development has to be only on non-tribal land. The Chota Nagpur Tenancy Act and the Santhal Pargana Tenancy Act stipulate that tribal land should be sold only to a tribal. This means that only 11 to 12% of land, apart from government land and lease hold land, in the state can be sold to builders and developers. Builders said that the need of the hour is that the government opens up more land for development by amending these two acts.

Like many other Indian cities, there is a huge demand for apartments in Jharkhand, as many people want to invest in homes here. According to reports, only 15% of the market has been exploited and there is a lot of room for growth.

Image: ”Ranchi 9239″ by Biswarup Ganguly – Own work. Licensed under Creative Commons Attribution 3.0 via Wikimedia Commons – http://commons.wikimedia.org/wiki/File:Ranchi_9239.JPG#mediaviewer/File:Ranchi_9239.JPG

Nina Varghese for IndiaProperty.com

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