DIS­MAL YEAR

Com­mer­cial realty in Pun­jab

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

The slow­down was the norm in both res­i­den­tial and com­mer­cial seg­ments this year. Though the res­i­den­tial seg­ment saw end-user-driven de­mand cre­ation and the builders cre­at­ing sup­ply in the bud­get and af­ford­able seg­ments, the com­mer­cial seg­ment strug­gled to at­tract both the end-user and in­vestor-led de­mand.

Price cor­rec­tions and low de­mand marked the com­mer­cial realty seg­ment in the state this year. In all com­mer­cial cat­e­gories such as of­fice spa­ces, and com­mer­cial spa­ces in shop­ping malls couldn’t gen­er­ate any de­mand.

On the sup­ply side, there were no ma­jor project of­fer­ings in the com­mer­cial seg­ment. Builders strug­gled with large un­sold in­ven­to­ries. There were at­tempts to change the busi­ness mod­els. For in­stance, builders fail­ing to at­tract realty buyers to shop­ping malls moved to­ward the newer con­cept of high street shop­ping places. But even these failed to fuel growth in this seg­ment across the state.

For in­vestors, the en­try in the seg­ment was unattrac­tive as it couldn’t de­liver any pos­i­tive in­vest­ment re­turns to them. At the same time, those al­ready in­vested in the mar­ket strug­gled to exit. “Though the com­mer­cial seg­ment is in the midst of a slow­down for five years, this year can be termed as the worst year so far. Prices in the seg­ment across the state fell by 20% to 50% as there were no tak­ers for the prop­erty in the seg­ment. This was the case in both the pri­mary and sec­ondary mar­kets, though, in the pri­mary mar­ket the de­mand lev­els were lower than the sec­ondary mar­ket. The only ex­cep­tion to the trend of price cor­rec­tions were older mar­kets in cities and prop­er­ties around re­li­gious places such as Golden Tem­ple in Amritsar, which con­tin­ued to see de­mand and sta­ble prices,” says Ra­jiv Man­chanda, 48, a Lud­hi­an­abased real es­tate con­sul­tant.

Bathinda: The com­mer­cial seg­ment in the city reg­is­tered price cor­rec­tions be­tween 20% and 50% de­pend­ing on the prop­erty’s lo­ca­tion. Va­cancy rates were high as un­sold in­ven­tory with builders

con­tin­ued to in­crease with per­sis­tent low de­mand lev­els. Both end-user and in­vestor de­mand were low. Rentals were a bright spot for the city’s oth­er­wise gloomy com­mer­cial seg­ment. The rentals re­mained sta­ble, and de­mand lev­els were also healthy, say lo­cal realty con­sul­tants.

Lud­hi­ana: The in­dus­trial and com­mer­cial cap­i­tal of the state, Lud­hi­ana, also saw sharp de­cline in de­mand and prices in the seg­ment. The city recorded a neg­a­tive trend in the rental in­come from com­mer­cial prop­er­ties. Prices and rentals in most lo­ca­tions fell by 20%, ex­cept for older mar­kets such as Mal­har Road and Sarabha Na­gar, where the two were sta­ble. There were high va­cancy rates in the pe­riph­ery, up­com­ing ar­eas such as Ferozepur Road and shop­ping malls, say lo­cal realty ex­perts.

Pa­tiala: Com­mer­cial prop­erty prices and rentals in the city fell by 20% to 25% this year. Like other cities in the state, the pe­riph­ery per­formed worse than the in­ter­nal and older de­vel­oped mar­kets. The low de­mand in both the cap­i­tal and rental seg­ments pulled down growth. With lim­ited sup­ply ex­pan­sion this year, the va­cancy rates were rel­a­tively low here than other cities, say lo­cal realty ex­perts. The city’s in­te­rior mar­kets such as Bhupin­dra Road and Leela Bhawan were ex­cep­tions to the neg­a­tive mar­ket trend.

Amritsar: Like the rest of the ma­jor cities in the state, Amritsar also wit­nessed price cor­rec­tions, but sev­eral lo­ca­tions fetched pos­i­tive in­vest­ment re­turns. In a num­ber of lo­ca­tions, the rental in­comes de­clined. With ex­pan­sion in sup­ply and fall­ing de­mand for rental prop­er­ties, rentals de­clined by 30% this year. Ex­cept for in­ter­nal ar­eas of the old city, the de­mand for com­mer­cial prop­er­ties for rentals di­min­ished. In more de­vel­oped ar­eas such as Ran­jit Av­enue, Model Town, and Lawrence Road, rentals de­clined, say lo­cal realty ex­perts.

Ja­land­har: The com­mer­cial prop­erty prices in the city fell by 20% to 35% this year. The rentals were rel­a­tively sta­ble across the city. The main com­mer­cial hubs of the city such as Model Town, BMC Chowk and Ma­havir Marg were ex­cep­tions to the trend of price cor­rec­tions. The NRI (non­res­i­dent In­dian) realty in­vestor, a dom­i­nant fac­tor in the lo­cal realty mar­ket, was also ab­sent this year.

AAnn oovveer­rvvi­ieew ooff BBaatth­hi­in­nd­daa

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