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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.
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 pan- Projects within the municipality limits tend to enjoy better infrastructure
The downside is that properties in such areas tend to cost quite a bit more Property tax and maintenance charges are invariably also higher than in gram panchayat areas
chayat is juxtaposed with better- established and therefore more upgrade localities in the municipal limits.
To sum up...
For investors and 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 future. When that happens, the quality of services Development in these areas is largely opportunistic Developers are attracted by the lower cost of land and the growth potential
The initial investment is lower but the growth prospects can be high if the locality is to be included within municipal limits
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.
When compared to gram panchayats, investing in a property located in a municipality area is expensive due to better amenities (above) and maintenance charges