AREA WATCH

Kharar res­i­den­tial

Hindustan Times (Chandigarh) - Estates - - FRONT PAGE - HT Es­tates Cor­re­spon­dent ht­es­tates@hin­dus­tan­times.com

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.

Mar­ket dy­nam­ics

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.

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