Guwahati’s Property market

Guwahati is considered as the gateway to the northeastern states of India. The capital of Assam has been the hub for the oil industry and tea plantations and home to important tea auctions. Guwahati is witnessing significant migration of population from within the state and also from the neighbouring states as it is economic center of the region. Besides the movement of the people, the city has seen a considerable population growth of over 40% within a decade. According to leading global property consultancy firm Knight Frank, this extensive growth in population has been responsible for bringing upon a considerable change in the real estate market in Guwahati.



Current Scenario

The city's property market has grown on a gradual note. Although builders in the city had undertaken construction of a number of commercial and residential projects earlier, these developments were halted due to government policies regarding Floor Area Ratio (FAR). Despite these hiccups, a number of multinational companies, predominantly in the banking sector, have come up with their zonal head offices in the city. Financial institutions including ICICI Bank and HDFC Bank, have occupied office space along the GS Road.



One of the most noticeable developments in the city is 'organised retail'. While the city boasts of a number of food and beverage chains like Café Coffee day, Barista and Baskin Robbins, others like McDonald's are still struggling for large-scale retail space to set up their flagship store. As per industry sources, Pantaloon Retail is scheduled to foray into the market with its Big Bazaar brand of retail format in some time. At present, retail space developments are mainly taking place on GS Road, right from Paltan Bazaar to Six-mile, mostly in the form of stand-alone stores. The upmarket residential developments in the vicinity provide the requisite catchment.



Some of the noticeable large format retail developments in the city include Vishal Megamart (40,000 sq.ft.) at Paltan Bazar and Hub (40,000 sq.ft.) at Bhangagarh, both of them operational since 2005. These megastores are attracting huge crowds and are enjoying incredible footfalls.



Another important retail development is the 0.3 million sq ft Dona Planet, which is like a new-age multiplex in the region.



Besides these commercial/office/retail developments, the city is also witnessing an increased demand for housing in prime locations. Though central locations of the city have reached saturation level in terms of requisite vacant land for residential developments, there is a noticeable shift of such developments to the periphery of the city. Areas like Zoo-Narengi Road, Khanapara, Beltola and Basistha are developing as alternative residential destinations. These locations will witness development of a number of multistoried residential apartments in the coming time.

Noteworth residential developments in the city include, the Guwahati Metropolitan Development Authority (GMDA) that has come up with a Games Village at Sarusajai along the NH-37, consisting of 700 residential units and totaling up to approximately 0.78 mn.sq.ft. of built up space. Another large scale residential development by Brahmaputra Constructions, comprising 150 apartments, is coming up on RG Baruah Road.



Rental and Capital Values

In the last few years, Guwahati real estate has seen considerable increase in real estate prices as per industry reports. The average rental price for Grade-A office space developments in Guwahati are estimated at Rs.50/sq.ft. per month.



There has been a very significant growth in the residential market of the city. The residential developments in the city witnessed prices increasing by around 60% as compared to last year. At present, the prices of prime residential projects in the city range between Rs.1,500-2,200/sq.ft. The main reason for this high price range of residential developments in the city is the high cost of construction, amongst various others. Developers in the north eastern region also have to take in to account the fact that the city is in an earthquake prone zone and the have to provide all adequate safety measures to the project which they are developing.



In this city, buying of retail space completely is a general practice. However, with the coming of new malls, the concept of leasing retail space is gradually picking up in the city. Currently, the rentals charged by retail space developers on the GS Road stretch are Rs.40-70/sq.ft. per month. Capital values for all such projects are Rs.3,000-6,000/sq.ft.



So, besides its beauty, the city has a lot to offer to buyers, investors and developers.



Sukhpreet Kaur writes on behalf of 99acres.com, which is an internet portal dedicated to meet every aspect of the consumers needs in the real estate industry. It is a forum where buyers, sellers and brokers can exchange information. At 99 acres, you can advertise a property, search for a property, browse through Guwahati Real Estate and Properties.