Rajasthan

Rajasthan is the largest state in India. This state is located in the western part of India and has a dry climate. The neighboring states of Rajasthan are Punjab, Uttar Pradesh, Madhya Pradesh, Gujarat and Haryana. In the West, Rajasthan shares a common border with Pakistan. Jaipur, the Pink city is the capital of Rajasthan. Other important cities of Rajasthan are Udaipur, Jaisalmer, Ajmer, Alwar, Jodhpur, Bhiwadi, Sikar, Hanumangarh etc.

Real Estate Scenario
The booming phase of real estate, which is being witnessed across the whole country, has also influenced Rajasthan to a large extent. Many recent changes have been noticed in the real estate scenario of this state. In all three sectors of real estate, the state has been developing significantly.

Residential Real Estate
As Rajasthan is a very big state , with cultural diversity, so the investors can choose from different cities while investing in property. The residential spaces, which are available in the market of Rajasthan are fairly priced and also located conveniently. These two factors, namely fair pricing and convenient location, have made the residential spaces lucrative for different buyers. Usually, Rajasthanies have the tendency of not spending big amount for residential property, but recently it has been noticed that they are willingly ready to spend large amount in return of qualitative residential spaces.

Jaipur, the capital city of Rajasthan, has a long history of cultural and historical values. The city has all the basic amenities , which should be there for an ideal residential area. Similar conditions are also prevailing in some other cities like Udaipur, Jaisalmer, Ajmer, Alwar, Bhiwadi, Sikar, Kota, Jodhpur, Hanumangarh etc. The business potential of the major cities of Rajasthan is also very good. This thing attracts many people to come and buy properties in Rajasthan. Therefore, there is a huge opportunity for the real estate players to construct new residential areas and sell them to the people. According to a recent study done by Jaipur Development Authority (JDA), only in Jaipur and its suburbs, the total investment in residential and commercial real estate sector will jump to Rs.4.8 lakh crore by year 2011 from present investment limit of Rs.19 lakh crore. Some of the residential complexes, which have been constructed in Jaipur and other big cities of Rajasthan are Platinum Green, Elite Residency, Garden City, Mehandipur Residency, Green Height, Holiday Home, Okplus Residency, Pearl Residency, Kanak Height etc.

Industrial Real Estate
In different places of Rajasthan, Special Economic Zones are being set up by the government. This is encouraging the development of multi-product based industries in different categories. These industries require proper infrastructural facilities. All these have made a favorable environment for flushing investment in Industrial real estate. Recently, the Rajasthan state government has given approval on a proposed policy in the direction of private investment in real estate industry. As a result of this approval, a Delhi based real estate company has come forward for investing in a multi based industry at Neemrana. The estimated cost of this investment is about Rs.6,553 crore and the area, which will be required for this project will be around 2,500 acres. The state government has also promised to revive the present tax structure on real estate industry, so that more investors can get ready to come forward and invest money in industrial real estate sector.

Commercial Real Estate
As common as other states, the evolution of separate commercial space for different type of commercial activities, has induced the commercial real estate sector. Big shopping malls, commercial complexes, display outlets, showrooms, seminar halls, conference rooms, multi star hotels, shopping complexes and galleries and many more other things have been constructed in all major towns of Rajasthan state. Various real estate companies, like Suncity Builders, Panchasheel Builders, Omaxe Limited, Melange, Era Group and Ansal Builders are prominent players in this sector. The Orchid Central hotel will become an addition in the list of Rajasthan's eminent hotels along with Shiv Vilas hotel and Bharat hotel in Jaipur. In 2007, the state government has also proposed to built a Science City in Jaipur along with a "Mini India" theme park.

Due to the government's active support, the commercial real estate boom along with other sectors of real estate is sustaining for a longer period of time. As long as this condition will prevail in Rajasthan, the price of commercial properties, residential properties and industrial properties will maintain their fast upward trend.

Future Trend of Real Estate
Currently, the famous real estate construction company, the Ansal API has presented two future real estate proposals. For completion of these two projects, the company has acquired about 8.6 lake sq ft. area at the heart of Rajasthan Industrial belt. These two proposed projects are located at a distance of 50 km from the NCR. Both these two project are related to residential complex and the total cost of these two complexes will be around 120 crore.

Another giant construction company in the field of real estate, Vatika Group has declared that it is going to build an IT city in Jaipur, after getting huge success in Gurgaon in both residential and commercial construction. The project will require in total of 800 acres area on Ajmer road. This city will be called as Vatika Infotech City and it will consist of a five star hotel, a shopping complex, a health club and all other modern facilities. In Jamdoli, a Rs.1900 crore project of film-city is going to be constructed and the blue-print of this project has already been prepared.

Recently two mega construction company, the Era Group and Omaxe Limited have shown their interest in setting up a mega residential project in Ajmer. The Jaipur highway is gradually converting into a commercial hub and various commercial activities related to real estate have been taking place in the surrounding areas of the highway. The prospects of property appreciation on this stretch are very bright.

Ansal has entered into the market of commercial real estate with a mega commercial project, i.e Ansal Plaza. This project will be built up on the proposed 6 lane Expressway between Ajmer Collectorate and Kishan Garh. The entire project will be spread-up over 3 lakh sq.ft area and there will have an amusement park, a hotel in the premises of this project.

Role of NRI's in Real Estate in Rajasthan
NRIs show more interest to invest in real estate rather than any other investment option. High return is the underlying reason for such investment. The law firms, which are directly associated with real estate investment companies, get 5-6 calls every week from the NRIs. The NRIs are really interested to park their money in the booming real estate sector of India. Rajasthan is one of the dream destinations for such NRIs, because the conditions in this state are favorable in every aspect. The Rajasthan State Development Board has announced certain norms and conditions, which have made the conditions more convenient and attractive for such NRIs.

Every year Rajasthan state gets a lion share of the total NRIs investment in Indian in real estate. The average real estate investment from NRIs clan, the worth of which is in between of $10-25 million, comes in India. The tier2 and tier3 cities and towns of Rajasthan are receiving a handsome part from the investment made by the NRIs in real estate. Jaipur, Udaipur, Kota, Ajmer, Jaisalmer, Jodhpur are the main towns of Rajasthan, which are receiving a healthy portion of this investment. Due to this inflow of foreign investment from the NRIs, the real estate development process is growing intensively in all major towns and cities in Rajasthan. According to Rajasthan Associated Chamber and Commerce, the NRIs are showing more willingness to invest in the residential real estate property rather than commercial real estate and industrial real estate.