Kharar has expanded exponentially from a semiurban area to a full-fledged urban destination, housing multi-storeyed apartments, villas, multi-retail arcades, and residential colonies. Its proximity to Chandigarh and SAS Nagar – as it’s 12km from Chandigarh – and affordable prices have fuelled realty growth in the area. A number of residential clusters have come up around the city, including Model Town, Shivalik Enclave, Sunny Enclave and Gillco Valley. The town comprises two major parts – the older town, and the new expansions, which include GMADA (Greater Mohali Area Development Authority) sectors.
The town offers multiple options to the home buyer – plots, apartments, floors, and villas. Plot sizes vary between 50 and 500 sq yard though most of the supply and demand are restricted to plot sizes varying from 150 sq yard to 250 sq yard. “All colonies that have come up in the area offer plots. Plots are the most favoured option among the home buyers here. Apartments, villas, and floors are only recent developments. Plot prices are one-tenth of the prices in Chandigarh. Plot prices in the older parts are R12,000 per sq yard. In the newer sectors, plot prices may even go up to R35,000 per sq yard,” says Varun Jain, 33, a local real estate consultant. With plot prices rising, and other options coming up in the area, the demand pressure in the segment has subsided considerably. Also, the supply has consistently increased with a number of realty players offering the option.
Kharar is also home to budget housing in the apartment segment. Most of the supply in the segment is in the 2-BHK (bedroom-hall-kitchen) and 3-BHK categories. The size of 2-BHK generally ranges from 900 sq ft to 1,300 sq ft. For the 3-BHK apartments, the average size varies from 1,400 sq ft to 2,100 sq ft. The average price of apartments range from R25 lakh to R65 lakh.
“Though prices here are relatively cheaper than Zirakpur and Mullanpur, the quality is comparable in most cases. Both national and local developers are active and offer options in the budget segment and mid-price segments. Infrastructural development lags far behind Chandigarh, SAS Nagar and even New Chandigarh,” says Mohit Aggarwal, 42, who lives on rent in Chandigarh and is exploring the realty market to buy a flat in Kharar.
Over the years, the demand and supply of independent floors has widened in the area. Floors are available in 2-BHK and 3-BHK for mats. Sizes generally start f rom 1,000 sq ft, and may go up to 2,000 sq ft. Prices, on an average, vary between R20 lakh and
R40 lakh. The latest entrant in the residential segment is the villa category. These are built-up plotted development available in sizes 100 sq yard to 250 sq yard. Prices vary from
R35 lakh to 90 lakh depending on location and builder offers. “Most of these are either duplexes or expandable villas. In four years, at a time when market conditions were very sluggish, this segment fared relatively better with the enduser than the other segments. Local builders were at the forefront of creating supply in this segment,” says Rajveer Singh, 47, a local real estate consultant.
For four years, the local market is struggling with price corrections and low demand. “At present, the market only has end-users. The investor left the market at the end of 2012. The last price appreciations were from 2011-12. Since then, the slowdown has impacted both demand and prices. Even supply expansion has slowed down in the past few years,” says Jain. The area recently got a boost with the completion of the airport road and the starting of work on the widening of National Highway 21.
The recent central gover nment decision of demonetising higher value currency notes have dented market growth, particularly demand and prices. According to experts, the realty transaction fell after demonetisation was announced. “The immediate impact was the sharp decline in realty deals. Buyers and sellers are uncertain about the future trajectory of the realty market and are adopting a wait and watch approach,” says Singh. The realty prices in the area are expected to fall sharply in the aftermath of demonetisation since the gap between collector rates and market property prices is relatively large. “Most sellers, at present, are reluctant to sell their properties fearing they would have to cut on prices. In fact, some are even quoting higher prices after adding the increased tax burden on them. But few buyers are responding positively to such seller behaviour,” says Jain.
The price fluctuations in the area in the wake of demonetisation are unlikely to change the tag of affordable destination for the local housing sector. The area will continue to offer cheaper housing options.