Ranchi- Emerging Real Estate Destination

January 4, 2009	(Be the first to rate this story!)  Loading ...
Print This Story   Email This Story Subscribe Newsletter

Jharkhand’s capital, Ranchi—which has derived its name from a Nagpuri word `Archi,’ meaning bamboo forest—stands out as perhaps the only city in eastern India that has a unique blend of contemporary urban culture along with resplendent, serene and picturesque warmth of nature’s beauty, besides of course a pleasant climate. The undulating hills surrounding Ranchi criss-crosses with little streams, tranquil lakes and brooks, presenting an awesome sight. The city may be rushing towards all the indicators of a modern city, but it has not lost its traditional touch. The total area covered by Ranchi - municipal area is about 110 square kilometers and the average elevation of the city is 2,140 feet above sea level. Earlier known only for its top-class mental asylums, Ranchi is now identified as Mahendra Singh Dhoni’s home town. It is a city of waterfalls, with a multiplex and a charming countryside, besides of course, a rich tribal culture.

No wonder, the erstwhile summer capital of unified Bihar, Ranchi is a beautiful city with tremendous potential to set itself on the trajectory of rollicking growth. The city has already registered a phenomenal growth in real estate sector ever since it became the capital of Jharkhand in 2000. “With many big companies having set up offices here, there is a boom in the real estate sector—both residential and commercial. But, land prices are high but plots are less,” says S.N. Singh, president of Jharkhand unit of Confederation of Real Estate Developers Association of India (CREDAI). Ranchi on the trajectory of rollicking growth. Photo: India Today. Simultaneously, Ranchi is also going gaga in terms of a retail boom. Biggies like Spencer, Reliance Fresh, Reliance Hypermart and Big Bazaar have already opened outlets in the city. One multiplex has opened and others are in the pipeline. A few five-star hotels are also set to come up in the city. Clearly, the average Ranchi resident living standard is bursting out of survival, and into consumption. No wonder, the income tax department also finds Ranchi as city with huge growth for generating revenues, which has multiplied three times since it became the capital.

The income tax department collects close to Rs 650 crore annually from this region, which includes Simdega, Gumla, Daltonganj and Latehar. This figure is better than those of many other state capitals. Ranchi is also catching up with bigger cities in terms of entertainment industry as well. The city already has its first multiplex opened, and with this the after-hours have started rocking. The twin screens of the state-of-the-art Eyelex are usually full till night shows. The 160-seat multiplex is the place to be, helping Ranchi to finally shed its uncomfortable past with long queues, dingy auditoriums, broken chairs and poor acoustics. With top FM channels migrating to tier-II and tier-III towns, Ranchi too has got three private FM channels. In terms of employment, there’s a whole new wave of opportunity opening up for radio jockeys. “But, all this progress appears to have failed to match the desired pace, as there is huge gap in demand and supply, primarily because of unavailability of land in the city area,” said Pratul Shahdeo, the executive member of Federation of Jharkhand Chambers of Commerce and Industries.

Indeed, land acquisition has been one trouble spot across the state. And the state government’s new rehabilitation and resettlement (R&R) policy too has failed to cut much ice. The land holders of the state, especially those in the Jharkhand’s outback are extremely reticent to sell land. This is one reason why Jharkhand—which is poised for a big industrial push with more than 60 companies, including ArcelorMittal, Tata Steel, Jindal Steel, Ispat Industries and Hindalco having signed MoUs with the state government for setting up steel and power plants—is forced to take only tiny steps on the path of development. Shahdeo believes that the Chotanagpur Tenancy Act, which prohibits sale of tribal land to non-tribals, has been a major hurdle in the growth of real estate sector in Ranchi. “This is one reason why despite availability in the municipal area, finding land for new projects are hard to come by due to this act. Besides, the state of law and order in Ranchi has also left a lot to be desired,” Shahdeo said. The demographics of Ranchi suggest the course the capital city of Jharkhand is charting. According to the India census report of 2001, the population of Ranchi was 2,785,064. The ratio of Ranchi male population to Ranchi female population is 53:47. The number of households in Ranchi counts to 5, 05,508 with 9,77, 821 being the urban population. The population density in Ranchi is 362 per square kilometre.

“According to the current estimates, the population of the city is now 13 lakh having witnessed an influx of people after the formation of Jharkhand state on November 15, 2000. Owing to the rising employment opportunities and opening of numerous regional and state level offices, banks, and private organisations, Ranchi has also seen a constant influx of migrants,” said Ganesh Reddy, researcher and social worker from Citizen Foundation, a noted non-governmental organisation. “The per capita income in Jharkhand too has increased and the percentage of population below poverty line has reduced since 2003,” Reddy added. In real estate sector alone, there is a huge demand of space in sectors like banking, insurance, education, finance and telecom. According to an estimate, more than 10 million sq ft structure is being created to meet the demand.

This paucity of space in fact is a huge indicator of infrastructural bottlenecks the city is currently grappling. “We just do not have space. The roads—that were drawn when Ranchi was just a district township—are reeling under the capital’s traffic requirements,” said SN Singh. At present the concentration of development within the city limits—where it is really difficult to get land. According to Reddy, the residents have pinned huge hopes on the Ring Road project, which is in the execution stage, to help Ranchi have a more defined area. “Then the connectivity of peripheral areas will also improve,” he said. The state government too has decided to develop a new capital township—Greater Ranchi—to meet the growing demand of rapid urbanisation. Besides, Ranchi has also been selected as one of the Millennium cities, to be developed under the Jawaharlal Nehru National Urban Renewable Mission (JNNURM). Ranchi also requires a bunch of flyovers to canalise the traffic movements.

News Published Under:   Real Estate Developers |

Comments