Bhopal Real Estate Goes Modern

Bhopal, the capital of Madhya Pradesh, is primarily known for its industry economy which is dominated by the heavy electrical major BHEL. Services and administration are the other major occupations in the city.

Commercial Real Estate in Bhopal

Strategic location of Bhopal is attracting several government and semi government agencies. Also, there is already a multitude of such organizations mostly located in the Area Hills, MP Nagar, TT Nagar.

The capital rates in major commercial market of Bhopal hover between Rs 1200-1800 per sq ft. It includes the areas such as TT Nagar, Bairagarh, MP Nagar, Mantralaya (government offices), New Market, and TT Nagar. There is a high trend of lending the commercial property on lease here. The lease rates vary from Rs 15-20 per sq ft per month.

Metro Plaza near Vitthal Market is fetching around Rs 1,900 per sq ft which is believed to be the highest capital price as compared to prices of other commercial markets in Bhopal.

Center Point is another prominent commercial market in Bhopal. Touted as A-class building in commercial area, its lease rate is Rs 14 per sq ft per month. Agencies or companies in search of commercial spaces in Bhopal can look forward to locations like City Center and MP Nagar. Since there has been no growth in IT and ITes sector in Bhopal for the past few years, absorption rate of commercial developments in the city has been limited to 30-40%.

Residential Real Estate in Bhopal

The residential areas of Bhopal are mainly divided into three categories: Congested old residential colonies in the main city, planned development in newly developed areas, and the development along Hoshangabad Road and Ayodhya By-pass.

Prices of residential property in old city start from Rs 2,500. Several colonies have developed in and around Bhopal in the past decade. These are the known areas in the city including Tulsi Nagar, Shivaji Nagar, Area Colony, Shahpura, Shakti Nagar, Saket Nagar, Rachna Nagar, Kasturba Nagar, and Sonagiri.

Rates for properties in the emerging areas hover around Rs 800- Rs 1200 per sq ft along Hoshangabad Road. The going rates in the area along Airport Road are Rs 500- Rs 700 per sq ft and Rs 2000- Rs 3000 along Kolar Road.

There are independent house (duplexes and bungalows) in Bhopal which accounts for 88% of the residential segment. Its absorption rate is low at 35-40%. A new concept of ‘triplex’ is fast taking shape in Bhopal. It has shown a high absorption rate of 73%.

Retail Market in Bhopal

Retailing in Bhopal is of high street type. Since the mall culture has not entered here yet, there is no operational shopping mall in the city but the major retail areas are MP Nagar and New Market where the capital rates averages between Rs 10,000- Rs 15,000 per sq ft. Bairagarh, Vitthal Market, and Barkheda are the acknowledged community centers. Lease rates in prime retail areas of Bhopal vary from Rs 60-Rs 80 per sq ft per month.

Retail spaces in Bhopal are easily available for outright space. The average absorption rate of development in Bhopal retail sector is far better than the commercial property which is 30-40%.

Upcoming Real Estate Projects in Bhopal

Residential Project: Kanchal Group is coming up with a housing project ‘Vishal Estate’ a colony of independent villas at New Jail By-Pass Road in Bhopal.

IT Parks: The By-Pass Road area in Bhopal is making rapid strides in terms of real estate where the cost is fast shooting up due to upcoming International airport and IT Parks.

Residential Project by Sahara Housing: The Company is developing Sahara States, one of the largest planned townships. To come up at Misrod Road, the project will come up over an area of 57.07 acre and feature 1,117 dwelling units.

TT Nagar Re-densification Project: Prime residential and commercial area of TT Nagar will be converted into a Central Business District with an investment of Rs. 600-crore.