Peer Much­hala is one of the emerg­ing hubs in the Chandi­garh tric­ity for bud­get and af­ford­able hous­ing op­tions

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

Peer Much­hala grew as de­vel­op­ers at­tempted to make most of its prox­im­ity with Sec­tor 20, Panchkula, even though it is lo­cated in neigh­bour­ing Pun­jab. In the ini­tial years, the ad­van­tage was clear, res­i­den­tial prices were al­most one-tenth of Sec­tor 20. Peo­ple who couldn’t af­ford to own an apart­ment in Panchkula opted for it. Con­se­quently, the sup­ply ex­panded. It is a semi- ur­ban area and has de­vel­oped around the older Peer Much­hala vil­lage. Multi-storeyed apart­ment com­plexes are sur­rounded by agri­cul­ture fields and vil­lage by­lanes run through the new de­vel­op­ments.

Most of the hous­ing sup­ply avail­able in the town is in the apart­ment seg­ment. Lim­ited sup­ply of smaller plots and in­de­pen­dent floors is also avail­able. Floors are gen­er­ally du­plexes hav­ing ground plus two floors.

In its ini­tial years, prices in the area reg­is­tered a sharp growth but for the past five years, prices have seen a con­sis­tent fall. Lo­cal real­tors claim price de­cline by al­most 35% to 45% in five years. In ad­di­tion to the slow­down in the re­gion’s re­alty mar­ket, lo­cal fac­tors con­trib­uted to the de­cline. Pos­ses­sion de­lays, de­vel­op­ers leav­ing projects in­com­plete, and slow in­fra­struc­ture de­vel­op­ment con­trib­uted to buy­ers opt­ing out of the lo­cal re­alty mar­ket, say prop­erty con­sul­tants.

The re­cent de­mon­eti­sa­tion dented prices and trad­ing vol­umes in the area. “Be­fore de­mon­eti­sa­tion, the av­er­age plot price hov­ered from 30,000 per sq yard. Apart­ment and floors were priced at per sq ft. At present, it is dif­fi­cult to know the ex­act mar­ket prices as af­ter de­mon­e­ti­za­tion, the sale and pur­chase of prop­erty has come to a stand­still,” says Manak Gupta, 37, a lo­cal res­i­dent work­ing with a pri­vate sec­tor bank.

The rentals are rel­a­tively sta­ble. Rentals for 2-BHK apart- ments varies be­tween and Rs 10,000 per month. For a 3-BHK apart­ment and floor, the monthly rent ranges from to Ren­tal de­mand is con­cen­trated in apart­ments in de­vel­oped group hous­ing so­ci­eties.

Mak­ing re­alty sense

Lo­cal re­alty ex­perts say the area has failed to live up to ex­pec­ta­tions. The end-user in­ter­est de­clined over the years as de­vel­op­ers failed to de­liver timely pos­ses­sion and promised

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