Policy change boosts real estate market | Bhubaneswar News
Industry insiders said two things largely contributed to the situation. The government has made policy changes in 2020 to promote vertical development by relaxing the floor area ratio (FAR) or the maximum allowable area that can be used for construction on a plot to seven from 2.75 previously.
The Odisha Development Authority’s 2020 Rules (Planning and Building Standards) have encouraged builders to plan residential properties here more aggressively. The rule change in 2020 is visible now after the covid situation improves.
Second, Odisha natives working out of state are increasingly looking for a home closer to home in Bhubaneswar, especially after the pandemic. Around 3,000 homes with an estimated investment of Rs 1,500 crore are in various stages of construction by the private players and would be ready for ownership in the next two to three years.
Housing and Urban Development Secretary G. Mathi Vathanan said Odisha’s FAR is currently one of the highest in the country. “As markets control the prices of cement, iron and other construction materials, the government has made a cautious intervention to make more construction zones available,” he said.
Prashant Barik, a Bargarh native who worked in a pharmaceutical company in Hyderbad, said he changed his mind to buy a house in Hyderabad for Bhubaneswar. “I am still working from home and have left my accommodation there. I have booked a 3 BHK flat in Bhubaneswar because I can always stay closer to home in times of uncertainty or after retirement,” said the 44-year-old.
Umesh Patnaik, secretary of Credai Odisha, an association of property developers, said the détente in the FAR had been a game-changer in Odisha. This will help create more housing, although factors such as the rising cost of cement and steel will impact housing prices. Although the new policy is for the whole of Odisha, Bhubaneswar being the hub of activities will benefit the most, he said.
Patnaik said extended work from home has prompted state natives working in cities such as Delhi, Bengaluru and Hyderabad to buy homes in Bhubaneswar. “They see more value in buying houses here because they haven’t been to their place of work. People from all parts of Odisha see Bhubaneswar as the best bet in terms of access to education for children and health care for the family,” he said.
Estate agents said there was now more people’s confidence in the real estate industry due to regulatory changes. After the Real Estate Regulatory Authority was established in 2017, people can now check project details online. This gave them confidence in the security of their investments. This has helped non-resident Odias to complete real estate transactions here, said Pradipta Kumar Biswasroy, a developer.
Tapan Mohanty, also a promoter, said that with a bigger RAF government, consideration should now be given to expanding some of the main thoroughfares in Bhubaneswar, such as the one connecting Raj Mahal Square in Bhubaneswar to the High Court in Orissa in Cuttack.