Within Municipal Limits Vs. Gram Panchayat Localities
by Mr. Ashwinder Raj Singh, CEO - Residential Services, JLL India
The decision of whether to purchase a property (home, flat, land) within a city's municipal limits or in one of the
gaothan / gram
panchayat localities can be a perplexing one.
There is
usually a significant cost arbitrage implied in the second option, but
it often does come with drawbacks as well. Let us examine both options.
Investing Within Municipal Limits..!
There
are definitely distinct advantages to buying a property which falls
within the city's municipal limits.
For instance, such properties
can usually depend on a more regular water supply from the
municipality. Infrastructure is another function for which the
municipality is responsible, so projects within the municipality limits
tend to enjoy better roads.
There will usually be a very decent
saturation of shopping outlets and hospitals in such localities.
Also,
the population residing within the municipal limits tends to be of a
more cosmopolitan nature, as well.
The downside is that properties
in such areas tend to cost quite a bit more, and the property tax as
well as maintenance charges are invariably also higher than in
gram panchayat areas.
Investing In A
Gaothan / Gram
Panchayat Area..!
Gram
panchayats or
gaothans
are basically village areas. Though many of them have seen rapid
development, the fact is that this development is largely opportunistic.
Developers are attracted by two aspects - the lower cost of land, which
they or the original land owners generally
get converted from agricultural to non-agricultural usage, and the
growth prospects of such areas, which can be quite considerable.
Because
of the lower land costs, the property prices also tend to be lower.
This attracts many buyers who have budget constraints and do not
mind the inherent drawbacks which projects in
gram panchayat areas often have.
To begin with, these
areas are not connected to the municipal water supply - in most cases,
developers will make their own arrangements via tankers or bore wells.
Though these provisions may suffice
for a while, especially in the case of smaller projects, they are much
less reliable.
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| Mr. Ashwinder Raj Singh, CEO - Residential Services, JLL India |
Provision of infrastructure such as roads is also vested solely in the
gram panchayat authorities, so it tends to be of a
much lower quality than in municipal areas. The population in such areas
tends to lean heavily towards the original inhabitants, which means
that the cosmopolitan flavour is usually missing.
Shopping outlets,
healthcare and schools may be of a visibly lower grade - though this is
not always the case.
Much depends on how a particular
gram panchayat is juxtaposed with better-established and therefore more upgrade localities in the municipal limits.
To sum up...!
For investors & end users, properties falling in
gram panchayats can be a very lucrative opportunity.
The initial investment is invariably lower, the growth potential can be
quite high if the locality is slated to be included within the
municipal limits in the foreseeable future. When that happens, the
quality of services will star improving rapidly and the property prices
will surge steeply upwards.
However, this is probably not a route that
end users intent on securing the highest grade
of comforts immediately should take. Investing in a home within a
city's municipal limits usually costs more, but it will usually be
preferable for those who are looking for a 'what you see is what you
get' deal.
For media contact
Mr. Arun
Chitnis
JLL
India
Level
6, Amar Avinash Corporate Plaza
Bund
Garden Road,
Pune - 411 001.
Tele: 020 3093 0441 Fax: 020 40196101
Mobile:
+91 96571 29999
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