Varanasi: The New Hotspot

On Indias Realty Map

Varanasi, the religious centre for most
Hindus across the country, was not much
in news till the 2014 general elections.
Since then, the city has been
consistently in the media, starting from
being a constituency of the present
Prime Minister, Narendra Modi, to being
dubbed as a smart city as well as a
heritage centre. As a result, the city has
emerged as one of the major realty
hotspots in the country.
Key growth drivers
Varanasi is considered a tier city in the country!s real estate sector. "ill recent, the
city!s real estate was growing at a slow pace. #ut, a series of e$ents ha$e
completely changed the face of the real estate mar%et in the country.
&. Varanasis real estate started growing due to its political significance during
this year!s general elections. 'ater, the new go$ernment that was formed at the
centre announced Varanasi as a smart city, which further boosted the real estate
sector. "he recent announcement of Mr Modi to turn Varanasi into an important
heritage centre similar to Kyoto in Japan, acted as a crown jewel for the city!s
hospitality and real estate sector.
(. "here are a series of measures being ta%en by the Varanasi Nagar Nigam and
other local authorities that are gi$ing a boost to the realty mar%et here. "he
Varanasi Mahayojana ()*&, the city!s master plan created by Varanasi +e$elopment
Authority, has laid out a detailed plan to de$elop the city. "he prime minister!s
initiati$e to clean up the ,anga ghats has become another dri$er for realty growth.
*. "here are se$eral infrastructure projects in the pipeline. "he Varanasi-Lucknow
Highway NH-!"# is being widened into a four lane road. "he
Varanasi-$uranga%a& section of NH-( is being widened into a si. lane road. "he
infrastructure along the Varanasi /ing /oad is undergoing rapid de$elopment. All
these infrastructure projects are dri$ing the real estate mar%et.
0. An important growth dri$er for the city!s realty are its tourism and hospitality
industries. Varanasi has a thri$ing tourism industry since it is an important cultural
centre. n his recent $isit to 1apan, 'r 'o&i signe& a partnership agreement
with the Japans prime minister, which focuses on preser$ing the heritage of the
city, while de$eloping it as a smart city. "his is further e.pected to boost the
hospitality and tourism industries here and conse2uently, the real estate mar%et.
Areas witnessing growth in Varanasi
"here are se$eral areas in Varanasi witnessing a rapid growth. According to /anjana
of 3MP nfrastructure, a local de$eloper, 4some of the areas witnessing high real
estate acti$ity include 'ahmoorgan( and the )H* areas.5
According to another local realtor, Shree Sai #aba nfra Projects P$t 'td, 4any
peripheral area within &)%m radius of the city is a good bet, as the areas within the
city ha$e already gone beyond the affordable range. Some of these peripheral areas
include Shi$pur, Sarnath and 6esaripur. "he city is currently attracting a good
number of in$estors from all o$er the country who are loo%ing to in$est in
residential plots as well as apartments.5
Real estate trends
"he real estate acti$ity is on the upward trajectory in Varanasi. According to local
de$elopers and agents, realty prices ha$e witnessed a sudden spi%e in one year.
4Properties in se$eral prime localities that would cost about /s 7,))) per s2. ft. one
to two years bac% are suddenly costing about /s &*,))) per s2. ft.,5 states /anjana.
According to Amit of Shree Sai #aba nfra Projects P$t 'td, property prices within the
city limits ha$e gone beyond the affordable range.
8hile a 2)HK apartment costs about /s *)-9) la%h in the outs%irts, it costs about
/s 7) la%h within the city limits. A duple. house in the city costs about /s &-&.9
crore. Areas offering lu.ury housing include Mahmoorganj, #irdopur, Sigra and
6hajuri. Areas offering affordable housing include Para$, Shi$pur and Paharia. :ne
may find a good number of residential plots in the peripheral areas for a budget of
/s ;-() la%h.
Varanasi is e.periencing a good appreciation in property $alues. Amit states that,
4one may e.pect a short term appreciation of &)) per cent within two years in
se$eral areas. 'ong term returns also loo% good in the city.5
"o conclude, Varanasi definitely has become a realty hotspot in the country owing to
$arious factors in recent times. Howe$er, sustenance of this growth on a longer
term depends on how fast and efficiently the planned infrastructure projects are
implemented in the city.
Soure< 3ommon=loor.com
=or 'atest >pdates on /eal ?state >pdates, Property News and 3ities
nfrastructure +e$elopments Visit< http<@@www.commonfloor.com@guide
3opyright A ())7-&0 3ommon=loor.com. All rights reser$ed.