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Indore leads Madhya Pradesh real estate with 40% share while 25 districts see minimal growth

#Taxation & Finance News#India#Madhya Pradesh#Indore

Last Updated : 1st Jan, 1970

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Synopsis

Madhya Pradesh's real estate sector shows stark disparities, with Indore dominating 40% of the state's registered projects in 2023-24, while 25 districts recorded fewer than ten projects each. Bhopal contributed only 8% of total registrations, lagging behind cities like Dewas and Jabalpur. Experts cite challenges such as high collector guideline rates and lack of urban planning as barriers to growth. Developers also face bureaucratic hurdles, leading to unauthorized projects in smaller towns. Industry leaders urge policy reforms, streamlined approvals, and infrastructure improvements to boost development across underperforming districts and create a balanced real estate market.

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The real estate landscape in Madhya Pradesh is marked by significant disparities, with many districts lacking substantial development. Recent data reveals that at least 25 districts have seen minimal activity, with fewer than ten projects registered in each over the past year. In some areas, such as Jhabua and Alirajpur, only one or two projects were recorded, emphasizing the uneven growth across the state.

Indore remains the clear leader in real estate development, accounting for approximately 40% of all registered projects in the state for the 2023-24 period. In contrast, Bhopal, despite being the capital, only contributed to 8% of the total projects, highlighting a stark difference in growth rates between these two cities. Other cities like Dewas, Ratlam, and Jabalpur also showed better performance compared to Bhopal, with registrations of 34, 33, and 31 projects, respectively.

The data from the Real Estate Regulatory Authority indicates that several districts, including Mandla, Chhatarpur, and Guna, had only one registered project each. Meanwhile, more active districts like Seoni, Sehore, and Gwalior managed to record up to eight projects each. This uneven development raises questions about the factors contributing to such disparities.

Industry experts, including Manoj Singh Meek, president of the Confederation of Real Estate Developers' Associations of India (CREDAI) Bhopal chapter, point to several challenges facing the real estate sector in Madhya Pradesh. He cites a lack of proper urban planning and high collector guideline rates as significant barriers to growth. Meek emphasised that without a comprehensive master plan, it becomes difficult to achieve effective city development. He urged the government to revise collector guideline rates and create an environment favorable for real estate growth..

Moreover, builders have expressed concerns that lower project registrations do not necessarily reflect a lack of activity in smaller towns. Many projects are initiated without the required permissions due to bureaucratic hurdles. As a result, only those developers who adhere to the regulatory framework face the challenges of compliance and associated costs. This situation creates a paradox where organized developers are at a disadvantage compared to those who bypass regulations.

To address these issues, experts suggest that the government should consider implementing streamlined processes for project approvals and revising outdated guidelines. Enhancing infrastructure in underdeveloped districts could also attract investment and spur growth. Additionally, promoting awareness about the benefits of formal project registration could encourage more developers to comply with regulations, leading to a healthier real estate market across the state.

In conclusion, while Indore continues to thrive as a real estate hub, many districts in Madhya Pradesh remain stagnant. By addressing the underlying issues and fostering an environment that supports growth, the state can work towards more balanced real estate development, benefiting both urban and rural areas.

Next (RBI reports 3.1% rise in India�s housing prices with Kolkata in the lead)