Famously known as the “Blue city of India,” Jodhpur is the second largest city of Rajasthan. One of the most gorgeous cities in the country, Jodhpur has come a long way since its origins centuries ago.
Here, in this blog, we show you why investing in property in Jodhpur is a great choice for investors and home buyers.
A Quick Introduction to Jodhpur’s History
Jodhpur was founded by Rao Jodha, a chief of the famous Rathore clan, way back in 1459. The city was earlier known as Marwar. Later, the name was changed to Jodhpur, in honour of its founder. It’s the second largest metropolitan city in Rajasthan and is divided into two main areas – the old city and the new city.
The old city is separated from the rest of Jodhpur, with a 10 km long wall that surrounds its perimeter. Eight gates lead in and out from the old city. The old city is mainly a tourist destination with some iconic tourist hotspots within the walls.
The new city is the modern metropolis that grew around the old city and contains the recent developments in Jodhpur.
Top 3 Reasons why Jodhpur makes an Excellent Choice for Property Investments
1. Booming Tourism and Handicrafts Industry
Jodhpur is a very popular tourist destination, not just in Rajasthan but all over the country. Thousands of tourists, both domestic and international, visit the city every year to enjoy its scenic landscape and mesmerizing heritage buildings, forts and other tourist spots.
Jodhpur is home to many historical palaces and forts like the famous Mehrangarh Fort, Umaid Bhavan Palace, Jaswant Thada, Rai ka Bag Palace to name a few. Other charms of the city include the beautiful Umed Garden and the extensive Government museum.
With a large number of tourists visiting the city all through the year, Jodhpur has seen plenty of infrastructure development in recent years to accommodate the growing number of visitors. From 5-star heritage hotels to budget hostels, AirBnBs and rented apartments – Jodhpur has a wide array of accommodations to suit all travellers.
Apart from hotels, Jodhpur has also seen a significant increase in the number of restaurants and cafes, giving the city a modern vibe. Apart from sightseeing and tourism, Jodhpur is also a hotspot for destination weddings. The majestic forts and palaces make Jodhpur a great choice for those looking for a royal wedding.
Apart from tourism, handicrafts are the other biggest contributor to Jodhpur’s economy. In recent years, the local handicrafts industry has seen a huge surge in market share. Metal utensils, ink, textiles, bicycles, sporting goods are some of the items manufactured here. Furthermore, handmade goods like cutlery, glass bangles, marble products, and carpets also are hugely popular in Jodhpur and are exported worldwide. The EPCH (Export Promotion Council of Handicrafts) the national body that oversees the export of handicrafts has a regional office in Jodhpur, to handle exports of the locally produced craft items.
All this has contributed to the significant rise in the value of real-estate in Jodhpur. Residential and commercial properties are in high demand, with prices predicted to increase further, making Jodhpur a great choice for real-estate investors.
2. Jodhpur is Witnessing Fast Economic Growth
Real-estate experts state that tier-II and tier-III cities in India like Jodhpur are growth engines for the future. With property prices sky-high in tier-I cities and a growth saturation, most multinational companies are considering relocating to smaller cities to cut down on costs.
Availability of skilled labour at low-cost and vast areas of land for commercial development has made several leading companies consider Jodhpur and its nearby areas for their new projects. Furthermore, the state government of Rajasthan is actively working to bring in investors to its second largest city and has even proposed the development of a Special Economic Zone (SEZ) in Jodhpur, in the next few years.
Here are some of the notable infrastructure developments already in place in the city.
• CAZRI (Central Arid Zone Research Institute), one of the biggest research institutes under the ICAR (Indian Council of Agricultural Research) operates in Jodhpur and works towards the welfare of farmers and development of agriculture.
• Barmer Refinery and Petrochemical Complex with an estimated investment of $6.8 billion is planned to be set up in the Barmer district of Rajasthan. The refinery is a JV between< HPCL (74%) and the Govt of Rajasthan (26%). When completed the project will employ thousands of people and increase revenues. The refineries headquarters is to be set up in central Jodhpur. This upcoming refinery is expected to transform the industrial scene of Jodhpur drastically. Apart from crude oil refining, the 120 by-products manufactured in the process will provide economic opportunities for new industries to be set up in and around Jodhpur.
• The Marwar Junction one of the nine freight loading points of the DMIC (Delhi – Mumbai Industrial Corridor Project, India’s most ambitious large scale industrial development project worth over USD 100 billion) is just 100 kilometres away from Jodhpur. Jodhpur and the neighbouring Pali districts come under the zones that will be transformed as a manufacturing hub under the DMIC and comprise the Jodhpur Pali Marwar Industrial Area.
• Several state and central government offices and the district high courts are in Jodhpur.
• Maulana Azad University, Agricultural University, Jodhpur National University, National Law University, Dr. Sarvepalli Radhakrishnan Rajasthan Ayurved University, Sardar Patel University of Police, Security and Criminal Justice, IIT Jodhpur and several other private engineering colleges impart world-class education in the city. Delhi Public School, St. Patrick’s Vidya Bhawan, St. Paul’s School, Kendriya Vidyalayas are some of the famous schools in the city.
3. Lower Initial Property Prices and High Property Price Appreciation
One of the biggest benefits of buying property in Jodhpur is that prices are lower compared to national levels. According to data supplied by Makaan, the average property price in Jodhpur for 2019 is 51.75 lakhs INR. This is far lower, when compared with the average property prices in other metros like Delhi (3.46 crores INR), Gurgaon (90 – 99 lakhs INR).
Recently, the Rajasthan government announced that it is cutting down the DLC (District Lease Committee) rates, which in turn will bring property prices down all over the state. With favourable taxation rules, real-estate investors in Rajasthan see lower tax burdens compared to other nearby states of Delhi, Haryana, Punjab, and others. Also, the revised GST rates on under-construction housing properties have been revised down from 12% to 5%.
On the other hand, property price appreciation in Jodhpur has seen a huge upward trend in the last few years. For instance, take the case of Ashiana Amarbagh villas in New Pali Road. These villas were sold at around 23 lakhs in 2008. Today, they are sold on the resale market for a whopping 75 – 80 lakhs, illustrating the huge property price appreciation in the city.
According to Analysis by the NHB (National Housing Bank) Residex data tracked from 2007 to now, shows that property prices in tier-II cities like Jodhpur have seen huge price appreciation (45 to 120%) in recent years, compared to metros where property prices have been stagnant (or have even declined) in the last few years.
Jodhpur – A Fast-growing city with Huge Potential
Jodhpur is one of the fast-growing tier-II cities in India, with huge growth potential. The city has seen plenty of infrastructure development in recent years. Whether you are looking for high-rise apartments, flats in Jodhpur or individual villas, Jodhpur has an array of properties to suit all budgets.
With renowned educational institutions offering world-class education like NLU, IIT, and NIFT coming up around the city, young families from the rest of the state and the rest of India are looking to move to Jodhpur. Conducive government policies like cutting down the DLC and lower tax burden, along with thrust on infrastructure development likebuilding new roads are fuelling growth in Jodhpur, making it a prime real-estate destination in the country.
Invest in Jodhpur now, and enjoy high-returns for your real-estate investments in the city, a few years down the line.
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