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Indian Real Estate News : Chennai
A tale of one city
Source: Financial Chronicle Sep 05, 2016
There have been very few planned state capitals in independent India—only three at the turn of the century. Even though the three state capitals were mainly planned to house government offices and residential quarters for government employees, over the years they have been able to attract attention from private players, emerging as some of the fastest growing cities/urban agglomerations within the country.

The political power that emanates from the state capital ensures that the location is never devoid of economic drivers. Naya Raipur and Amaravathi are the new entrants to join the select list of greenfield state capitals in the country.

What sets both these state capitals apart from their predecessors is the fact that apart from housing the necessary elements of a state capital, Naya Raipur and Amaravathi will have ample scope for participation of the private sector in the development of these capital cities.

While Amaravathi has just been off the blocks, initiatives towards building Naya Raipur started as early as 2001. At present, the seat of the state government has shifted to the new capital and it’s only a matter of time that the envisioned infrastructure falls in place that will ultimately transform Naya Raipur into a world-class city.

New state capital

But why did the need for a new state capital come up in the first place? After the creation of the Chhattisgarh, Raipur—the largest and the most populous city in the state—was made the capital of the new state.

The new capital however, did not have the necessary infrastructure to function as the capital of the new state. The state secretariat used to function from an old hospital building in Raipur, till it finally shifted to its permanent place in Naya Raipur.

Since it was difficult to revive Raipur as the state’s seat of administration, the move to build Naya Raipur began in right earnest immediately after the creation of Chhattisgarh. Naya Raipur is not too far from Raipur and can be easily reached through two national highways—NH-6 and NH-43—that connect both the cities. The Swami Vivekananda International Airport forms the natural boundary between the two cities. The seat of state administration moved to Naya Raipur, in 2012, but what is the reality on the ground?

Ground reality

The city of Raipur has only grown in leaps and bounds after the bifurcation of the state. The city has a well-established and vibrant social infrastructure. Naya Raipur, on the other hand is also a vibrant place, only during office hours, largely due to government offices that have moved there. Not too many families have moved into the new capital, as it is very easy to commute between the two cities and live in the established infrastructure of Raipur.

Going forward, however, things will not remain the same for Naya Raipur. Once the infrastructure that has been envisioned for Naya Raipur takes shape, the first planned city of the 21st century will become a world-class facility.

From a real estate perspective, however, what is the future outlook for Naya Raipur and Raipur?

The future outlook

To get a clear picture of the impact of Naya Raipur on real estate, one needs to look at the entire influence zone, which includes Naya Raipur and select micro markets in Raipur.

The real estate market in Naya Raipur is fairly muted because the new capital city does not have the necessary social infrastructure. Given the plans in the pipeline for Naya Raipur, the future of the real estate market in the city is bright.

In the next four to five years, the real estate sector in Naya Raipur should be headed north provided that other plans for the new capital fall in place. In Raipur city, micro markets located in east, north and south Raipur will fall in the influence zone.

In fact, these micro markets have witnessed frenzied real estate development in recent years. The tempo of real estate development in these micro markets is expected to gain strength in future due to their proximity to Naya Raipur and to government offices located in Naya Raipur.

To give an example: a couple of years ago, Saddu was a small rural settlement in the outskirts of Raipur. At present this micro market is dotted with new residential projects and the area is home to one of the largest retail formats in Raipur—Ambuja City Centre—on Vidhan Sabha Road.

Conclusion

At present Naya Raipur largely looks deserted, but the city is on a growth path. Among the most prominent landmarks in Naya Raipur, apart from the state secretariat, is the Shaheed Veer Narayan Singh International Cricket Stadium.

These iconic structures of the present day are just the beginning for what is planned for Naya Raipur. The new capital will be on the country’s railway map and will have a functional international airport and BRTS corridors connecting it to Raipur. Apart from these there will be manufacturing zones, a central business district and a logistics hub. Naya Raipur will also house a number of educational institutions. The scale of these plans is huge and the impact that they will have on the real estate within the influence zone will be immense.

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