Far from recovery
Low demand for plotted properties keeps rates in check in Ambala
CHANDIGARH: For checking the real estate investment potential of a property, the maxim, ‘location, location and location’ holds true irrespective of the market.
But, in case of Ambala, only 45km away from state capital Chandigarh, which is on the junction of four national highways (NH 1, NH 22, NH 65 and NH 72) and a major railway junction, the strategic location isn’t bringing investment optimism.
Even though, for the investment purposes the plotted segment remains unattractive, for the end-user the prospects of getting a good bargain are high in this tier-iii realty city. High investment return-yielding potential of plots has ebbed in last six-seven years.
Between 2007 and 2012, plot segment delivered handsome returns to investors. Most of the plot price appreciation was taking place on account of speculation and high trading volumes. Most of the transactions were taking place only on the basis of booking amount.
The situation changed after 2012, and since demonetisation the market fortune of investors has nosedived.
In the period after 2012, prices fell by at least 20% to 60% depending on location. During the boom years, plot prices had even doubled in some areas within a span a few of years.
“Currently, some stability has returned to plot prices but still there is hope for a price recovery or attractive investment returns in the near future,” said Ashok Goel, 53, a local real estate broker.
Prices for residential plots vary from ₹5,000 per sq yard to ₹60,000 per sq yard depending on the location of the property. Plots in most locations are available between ₹10,000 per sq yard to ₹30,000 per sq yard.
In the periphery, prices are lowest while in the Haryana
› National builders are conspicuous by their absence. Even during boom years, no major national developers sought to bring new products. Most of their investment went to the nearby Mohali. ASHOK GOEL, real estate broker
Shehri Vikas Pradhikaran (HSVP) developed sectors, located plots fetch relatively higher prices.
“It is a question of reliability and quality of infrastructure that determines the plot value in these sectors. Most of the transactions currently taking place are for the plots in the HSVP sectors,” said Ramesh Narang, 45, a local real estate consultant.
While prices remain stagnant and the end-user is in a good position to negotiate with the seller, yet, there are limited options available to him in terms of supply.
“Either there are HSVP sectors or older developed colonies where there is limited supply. Most of the supply is in new areas but therein the quality of infrastructure is questionable. National builders are conspicuous by their absence. Even during the boom years, no major national developers sought create supply or bring new products to the local market. Most of their investment went to the nearby Mohali. As a result, only unregulated colonies grew in wake of the property boom years. Now, for the end-user, finding a good property is hard and as a consequence, the buyer stands on the sidelines,” said Goel.
Entering the plot segment can also be beneficial for the investor if he can hold on to the property in long-term. For an end-user, this is the best time buy a plot, say local real estate experts.