Kar­nal of­fers good ROI op­tions

An im­prov­ing sec­ondary mar­ket, a va­ri­ety of hous­ing op­tions avail­able and sub­dued prop­erty prices have opened up prospects for the Kar­nal realty mar­ket

Hindustan Times (Chandigarh) - Estates - - FRONT PAGE - Mu­niesh­wer.A. Sagar mu­niesh­wer.sagar@hin­dus­tan­times.com

Lo­cated on na­tional high­way (NH-1) be­tween Chandi­garh and Delhi, the Kar­nal hous­ing mar­ket has tra­di­tion­ally at­tracted buy­ers, par­tic­u­larly in­vestors, from across the re­gion for its po­ten­tial to de­liver at­trac­tive in­vest­ment re­turns. Though growth has been slow in the lo­cal mar­ket, its long-term po­ten­tial to of­fer high re­turns on in­vest­ment is still strong, say lo­cal real es­tate ex­perts. Be­tween 2007 and 2011, the growth rate of Kar­nal’s mar­ket had been fastest in terms of price ap­pre­ci­a­tion, sup­ply and de­mand. In the last cou­ple of years, price ap­pre­ci­a­tion has de­clined and sup­ply growth has sta­bilised. De­mand is driven by lo­cal end-users.

For a buyer ex­plor­ing the lo­cal realty mar­ket, one big ad­van­tage is the num­ber of op­tions avail­able in terms of realty play­ers, hous­ing seg­ments, price en­try points, and in­fra­struc­ture qual­ity.

Mul­ti­ple play­ers: Un­like other tier-III cities in the state like Am­bala and Pa­ni­pat, lo­cated be­tween Chandi­garh and Delhi on the GT Road (Grand Trunk Road or NH-1), which have very lim­ited num­ber of de­vel­op­ers, Kar­nal has mul­ti­ple lo­cal and na­tional-level realty play­ers. The pub­lic sec­tor Haryana Ur­ban De­vel­op­ment Au­thor­ity (HUDA) is the key player in the city, re­spon­si­ble for de­vel­op­ment of the largest chunk of land in the city which has sev­eral HUDA sec­tors. The most ex­pen­sive res­i­den­tial prop­erty in the city is lo­cated in the im­prove­ment trust de­vel­oped ar­eas. Pri­vate sec­tor de­vel­op­ers such as the Al­pha G Corp, Ansal Hous­ing, Ansal API, Parsv­nath, Global Realty, CHD and oth­ers also have size­able foot­print in the lo­cal realty mar­ket. Th­ese play­ers are of­fer­ing com­mer­cial and res­i­den­tial spa­ces in more than 1,000 acres across the city, though, pri­mar­ily around the NH-1. “Realty buy­ers look­ing for at­trac­tive in­vest­ment op­tions should fo­cus on the hous­ing com­ing up around NH-1. NH-1 is the ma­jor cen­tre of realty ac­tiv­ity, with most of the pri­mary and sec­ondary mar­ket sup­ply con­cen­trated on ei­ther side. The city has ex­panded from the old city around the GT Road to the HUDA sec­tors and pri­vate de­vel­oper led projects. Six-lan­ing of the high­way is al­most com­plete ex­cept for some over-bridges and un­der­passes.

Prospects of the sec­ondary mar­ket have been im­prov­ing in the last few years as de­vel­op­ers have been de­liv­er­ing apart­ments and fam­i­lies have been mov­ing in. The pri­mary mar­ket, though, has weak­ened with very low sup­ply,” says Vikas San­gawan, a lo­cal real es­tate con­sul­tant.

Price points: In the pri­vate sec­tor, de­vel­oped ar­eas like Al­pha In­ter­na­tional City, Ansal Town, the gen­eral price range has de­clined from R15,000 per sq yard- R20,000 per sq yard to R9,000 per sq yard- R15,000 per sq yard in the last cou­ple of years. “Af­ter corrections of the last two years, prices have now sta­bilised. We can ex­pect a marginal de­cline in prices but not a re­peat of the price corrections of the last two years,” says RL Sharma, a lo­cal real es­tate con­sul­tant. Gen­er­ally, the price range varies from R6,000 per sq yard (on the out­skirts) to R 60,000 per sq yard (in the older de­vel­oped ar­eas).

Sup­ply va­ri­ety: Most of the sup­ply is lo­cated in the free­hold plot seg­ment, with HUDA sec­tors and im­prove­ment trusts de­vel­oped ar­eas only have plot­ted de­vel­op­ment. In ad­di­tion to plots, built-up kothis (bun­ga­lows) are also avail­able, but in the re­sale mar­ket and from in­di­vid­ual sellers. The apart­ment mar­ket in the city grew af­ter the en­try of na­tional-level de­vel­op­ers. Buy­ers can choose from 1-BHK (bed­room-hal­lk­itchen) apart­ments to 4-BHK pent­houses, though most of the sup­ply is in the 3-BHK apart­ment cat­e­gory. Also avail­able are built-up houses in the 2-BHK to 4-BHK vil­las cat­e­gories. Av­er­age sizes vary be­tween 380 sq ft to 4,500 sq ft.

“It is an ex­cel­lent op­por­tu­nity for an in­vestor with a long-term per­spec­tive. An in­vestor who is keen to exit quickly should not en­ter now. The sup­ply and de­mand dy­nam­ics, and the gen­eral eco­nomic con­di­tions don’t favour a quick mar­ket turn­around. How­ever, if one has pa­tience and spare funds then en­ter­ing now can de­liver ex­cel­lent re­turns in the long term. The great­est ad­van­tage for the city is its lo­ca­tion. Now, the chief min­is­ter of the state is also from the lo­cal as­sem­bly con­stituency,” says San­jeev Gau­tam, a lo­cal res­i­dent and realty ex­pert.

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