Puri, known all over the world as an important centre of pilgrimage with an enchanting beach, is all set to witness an exponential growth in the real estate sector with decks cleared for the much hyped Rs 15,000 crore Vedanta University and the proposed Shamuka Beach project spanning over some 3500 acre for high-end tourists.  Over the last couple of years, much of the growth in Puri’s housing segment happened in the central city and seafront which constitutes nearly 60% of Puri’s overall population. Since the growth in housing and population is expected to continue, information trickling in suggests that the city needs to provide some 30,000 additional dwellings and shelter to around one lakh people by 2011.  Puri Konark Development Authority has approved plans to build some 1,400 flats of which 600 flats have come up so far. It is developing a fivestoried complex christened Nandighose Enclave with 112 flats behind Loknath Temple in the public private partnership (PPP) model. The flats will be sold for Rs 2,000 per square feet (sq ft) including the maintenance cost. If private players decide to develop residential complexes independently on the same road, the per sq.ft price of flats would be slightly higher compared to those built under the PPP model.

Incidentally, the two-room flats in Srikhetra Bhakta Nivas housing complex on Bada Danda near the residence of Puri King Dibyasingh Dev developed by Utkal Builders were sold at Rs 2000 per sq ft in the pre slowdown. Real estate prices in these prime areas is now hovering around Rs 3,000 per sq ft plus.

    Says Puri Konark Development Authority (PKDA) town planner & former secretary P K Patnaik: “The holy city currently faces shortage of residential houses as well as quality hotel rooms. Clearly, there is a demandsupply mismatch.”

    Confederation of Real Estate Developer Association (CREDAI) general secretary D S Tripathy seconds Patnaik’s emotion. “Although demand for apartments is huge, builders are hesitant to take up new projects because of lack of clean land titles and litigation which engulfs the land. Besides, the approval process is lengthy,” he adds.

    In line with the city’s potential, union government has included Puri city in its Jawaharlal Nehru National Urban Renewal Mission (JNNURM) programme. The state government in association with City Managers’ Association Orissa had, sometime in 2006, prepared a city development plan for the city entailing a total investment of about Rs 1,828 crore at current rates. Recently, the government entrusted Ahmedabad based Centre for Environmental Planning and Technology to prepare a comprehensive development plan so that they can avail of the JNNURM funds.

It may be mentioned Puri has two distinct portions — the proper town or the western part of the town and the Balukhanda, the sandy tract along the sea or the eastern part of the town. The town proper consists of the Jagannath Temple. It is completely unplanned. As in the case of old towns elsewhere in the country, developments in this city are restricted along the main roads and bylanes with the rear portions remaining vacant. However, residential areas within the municipal boundary have increased. New planned residential complexes are coming up in the periphery of the city. There has been a considerable increase in commercial activities along the Bada Danda stretch as well as on roads along the sea beach due to heavy influx of tourists and pilgrims. Outright sale rates of commercial spaces are currently range bound between Rs 2,000-3,000 per sq.ft.

“Demand for hotel rooms too has been steadily rising. We recently cleared 10 proposals for building apartments and hotels. About 36 applications with proposals are awaiting clearances. Since project clearances by various authorities

    take time, several housing and hotel projects have been gathering dust,” PKDA secretary P K Sahoo clarifies.

    Puri already has some 314 hotels, 400 holiday homes, 387 Mathas, 10 Dharamshalas and scores of Ashrams collectively offering some 18,000 rooms and 55,000 beds, PKDA officials point out. All this notwithstanding, lack of a good five star hotel has compelled the state government to undertake the development of Shamuka Beach project on the lines of Pattaya in Thailand. Some 700 acres of land has already been acquired by the government for the proposed project which will be developed in the PPP model.

    Realty circles claim the city’s property turf will witness frenzied activity and its prices, inch forward provided the state government addresses the problems developers face during land acquisitions