Uttarakhand's real estate soars: CM announces blueprint for two new urban hubs
CM Dhami said in London at the Global Investors Summit that there is immense potential in Uttarakhand's real estate market.
Real estate in Uttarakhand: Uttarakhand Chief Minister Pushkar Singh Dhami has unveiled plans to build two new cities in the state, signaling a significant expansion in the state’s real estate market. Speaking at the Uttarakhand Global Investors Summit in London as cited by ANI, Chief Minister Dhami discussed the potential for growth in the state's real estate sector.
"The UK real estate market offers various opportunities ranging from residential development to commercial infrastructure. Cities like London and Manchester are good examples of this. There is immense potential in Uttarakhand too, and we are working on building two new cities in the state," Dhami announced during his address.
Booming real estate market in Uttarakhand
This announcement comes at a time when Uttarakhand's real estate sector is experiencing increased interest, driven by rising property prices and a growing demand for holiday homes, particularly in the Ganges River Valley, with a focus on Haridwar and Rishikesh. Recent changes to circle rates have also contributed to a positive outlook for real estate investments in the region.
Amar Kapoor, CEO, Terra Grande by Eldeco, commented on the growth of the real estate market in Uttarakhand. "The Uttarakhand real estate market is steadily growing, especially in the vacation home category. Increasing property prices and heightened buyer interest, particularly in the Haridwar and Rishikesh areas, are key drivers of this trend,” he told Republic
"The positive outlook for real estate investments in Uttarakhand is supported by recent changes to circle rates. The market is poised for growth, offering various options for different types of buyers, including those seeking a second home due to their high disposable incomes. This expansion is also fueled by the flourishing hospitality and tourism industries," Kapoor added.
Cost breakdown for various property types in Uttarakhand
According to data compiled by India Brand Equity Foundation (IBEF), a trust established by the Department of Commerce, Government of India, the estimated cost for purchasing industrial land in Uttarakhand ranges from $4 to $8.5 per square foot. In the state capital of Dehradun, the monthly rent for office space varies from $18 to $170 per square foot. On the other hand, for residential properties, a 2,000-square-foot space in Dehradun can be rented for a monthly cost ranging from $270 to $450.
Expansion plans advance
Earlier this year, Chief Minister Dhami had proposed an ambitious plan to establish eight new cities in Uttarakhand, including Chakrata, Doiwala, Kashipur, Haldwani, Paonta Sahib, Gochar airstrip, Ramnagar, and Naini Saini. While approval has been granted for the Chakrata township, Centre has given the green light for two more cities, marking a step towards urban development in the state. Uttarakhand is now set to witness the development of two new cities - one planned near Kashipur in the Kumaon division and the other near Doiwala in the Garhwal division. Preliminary approval from the Centre has been secured, and a team will soon be dispatched to inspect both locations, according to media reports.
The decision to establish a city in the Kumaon division, near Kashipur in the Udham Singh Nagar district, responds to the challenges posed by the rapidly growing population in the region. Similarly, a new city in the Dehradun district of the Garhwal division, near Doiwala, aims to address the population surge in the area. As of 2021, Udham Singh Nagar district was the most populous district in the state, with approximately 1.7 million residents, while Dehradun itself had a population of 1.7 million, reflecting the pressing need for expanded urban infrastructure.