After relative stagnation for around five years from 2015 to 2020, real estate sector in Bhubaneswar is beaming with activities.
Industry insiders said two things have majorly contributed to the situation. The government made policy changes in 2020 to promote vertical development by relaxing floor area ratio (FAR) or the maximum permissible area that can be utilized for construction on a plot to seven from 2.75 earlier.
The Odisha Development Authorities (Planning and Building Standards) Rules 2020 has encouraged builders to more aggressively plan residential properties here. Change of rules in 2020 is visible now after the covid situation improved.
Secondly, Odisha natives working outside the state are increasingly looking for a house closer home in Bhubaneswar, especially after the pandemic. Around 3000 housing units with an investment of an estimated Rs 1500 crore are in various stages constructions by the private players and would be ready for possession within the next two to three years.
Housing and urban development secretary G. Mathi Vathanan said Odisha’s FAR is among the highest in the country now. “While markets have control over prices of cement, iron and other construction material, the government has done careful intervention to make more construction area available,” he said.
Prashant Barik, a native of Bargarh who has been working a pharmaceutical company in Hyderbad, said he changed his mind to buy a house in Hyderabad for Bhubaneswar. “I have still been working from home and vacated my rented accommodation there. I booked a 3 BHK flat in Bhubaneswar because I can always stay closer home in times of uncertainty or after I retire,” said the 44-year-old.
Umesh Patnaik, secretary of Credai Odisha, an association of real estate developers, said the relaxation in FAR has been a game-changer in Odisha. It will help create more housing properties though factors such as rising cost of cement and steel will have impact on housing prices. Though the new policy is for entire Odisha, Bhubaneswar being the nerve centre of activities will benefit the most, he said.
Patnaik said prolonged work from home has prompted state natives working in cities such as Delhi, Bengaluru and Hyderabad to buy housing properties in Bhubaneswar. “They see greater utility of buying houses here as they have not been going to their work places. People from all parts of Odisha see Bhubaneswar as the best bet from the point of view of accessing education for children and healthcare for family,” he said.
Realtors said there is greater trust of people now on the real estate sector because of regulatory changes. After the Real Estate Regulatory Authority was formed in 2017, people can now check project details online. This has brought confidence in them that their investments would be safe. This has helped non-resident Odias to enter into real estate deals here.
