Apart­ments in Dera Bassi cheap but ig­nored

Dera Bassi apart­ment seg­ment has an edge in terms of rel­a­tively low prices, but loses out on poor in­fra­struc­ture

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

Dera Bassi, like Zi­rakpur, is sit­u­ated on the Chandi­garh-Am­bala na­tional high­way. Un­like Zi­rakpur, it doesn’t share bor­ders with Chandi­garh but it is only 10 min­utes (around 20 km) drive away from Zi­rakpur-Chandi­garh. But, while in Zi­rakpur apart­ment com­plexes have ex­panded very fast, in Dera Bassi apart­ment growth has been slow. “Home buy­ers and builders both have re­sponded dif­fer­ently to these two towns. While both have thronged to Zi­rakpur fu­elling its fast paced realty growth, Dera Bassi has been largely ig­nored. This has re­sulted large gap in prices in these two towns. Apart­ment prices in Dera Bassi are nearly 50% less than prices in the Zi­rakpur. “But, still buy­ers mostly ig­nored the area,” said Prakash Malik, 32, a lo­cal real es­tate con­sul­tant.

AT WHAT PRICE?

The apart­ment prices vary be­tween ₹1,500 per square feet to ₹4,500 per square feet in the sub­urb. “On an av­er­age, the price level hov­ers around ₹2,200 per square feet to ₹2,500 per square feet. Price range vary widely be­cause of few projects wherein prices are rel­a­tively high. So, while in Zi­rakpur, on an av­er­age a 1,000 square feet apart­ment is priced at around ₹35 lakh, in Dera Bassi, a buyer can get a sim­i­lar sized apart­ment even for ₹22 lakh in some of the projects,” said Vikas Nay­yar, 45, a lo­cal real es­tate con­sul­tant.

Af­ter nearly a decade of price corrections, prices sta­bi­lized in the last cou­ple of years. “A ma­jor chunk of the area came un­der le­gal dis­pute with a num­ber of apart­ment projects com­ing up in in­dus­trial zones. The le­gal cases led to sharp de­cline in prices and trad­ing in the area. This was also one of the ma­jor rea­sons for buy­ers to ig­nore the area af­ter their ini­tial en­thu­si­asm for the realty projects in the town. The im­pact of the dis­pute lasted for around a decade, which can be con­sid­ered the lost decade for the town’s realty sec­tor. This widened the gap be­tween the growth of realty sec­tor in Zi­rakpur and Dera Bassi. Al­though prices have sta­bi­lized, it is still hard to ex­ist in the realty mar­ket of Dera Bassi ex­cept for few projects, which have fared rel­a­tively well with home buy­ers, both end-users and in­vestors,” says Malik.

In ad­di­tion to the ‘lost decade’, the poor lo­cal in­fra­struc­ture also dis­cour­ages the buyer to in­vest in the town. “The rel­a­tively cheaper apart­ments here have failed to at­tract buy­ers be­cause of poor qual­ity of the lo­cal in­fra­struc­ture. Al­though Zi­rakpur has its own strug­gle with poor in­fra­struc­ture yet it fares bet­ter than the in­fra­struc­ture of Dera Bassi. The in­fra­struc­ture is sub­stan­dard even within the apart­ment com­plexes in Dera Bassi Buy­ers ex­pect bet­ter liv­able con­di­tions in the area then the present ba­sic ameni­ties even if they ig­nore the ex­tra 10 min­utes drive from Chandi­garh. So, it’s no sur­prise that peo­ple are avoid­ing pur­chase of prop­er­ties here. The need of bet­ter in­fra­struc­ture can be cor­rob­o­rated from the pop­u­lar­ity of a project be­ing de­vel­oped by a Delhi based builder. This project of­fers good in­fra­struc­ture as well as main­te­nance fa­cil­i­ties. So far this builder has de­liv­ered pos­ses­sion on ex­pected time If other build- ers start de­liv­er­ing on sim­i­lar lines than the Dera Bassi apart­ment seg­ment will surely see an up­ward trend,” said Suresh Kohli, 65, a re­tired public sec­tor em­ployee set­tled in the town.

WHAT TO LOOK FOR?

Sup­ply lev­els are rel­a­tively stag­nant here than the other parts of SAS Na­gar. No new devel­op­ers en­tered the mar­ket and only few of the older devel­op­ers added to sup­ply (time span miss­ing). A lot of ready-to-move in­ven­tory is still avail­able in the area Some of the main devel­op­ers here are Parsv­nath, Sil­ver City, Raglan, and ATS.

WHAT’S THE COM­PE­TI­TION LIKE?

Realty sec­tor is an end-user mar­ket, and the de­mand from in­vestors is neg­li­gi­ble. “The buyer dom­i­nates the mar­ket, but, the ac­tual de­mand from their side is low. The pres­sure is on the seller and not on buyer. The ac­tive en­duser can dic­tate terms to the seller on prices and other con­di­tions. But, al­ready in­vested buy­ers face the prob­lem of de­layed pos­ses­sions,” says Nay­yar.

Buy­ers in­vest­ing in the area should not ex­pect at­trac­tive re­turns in the short and medium terms, say lo­cal realty ex­perts. While the over­all in­vest­ment growth po­ten­tial is low, but, some projects in the area are still de­liv­er­ing good re­turns for the in­vestor and are in de­mand for the end-user

A ma­jor chunk of the area came un­der le­gal dis­pute with a num­ber of apart­ment projects com­ing up in in­dus­trial zones. The le­gal cases led to sharp de­cline in prices and trad­ing in the area. This was also one of the ma­jor rea­sons for buy­ers to ig­nore the area af­ter their ini­tial en­thu­si­asm for the realty projects in the town. PRAKASH MALIK, a lo­cal real es­tate con­sul­tant The rel­a­tively cheaper apart­ments here have failed to at­tract buy­ers be­cause of poor qual­ity of the lo­cal in­fra­struc­ture. Al­though Zi­rakpur has its own strug­gle with poor in­fra­struc­ture yet it fares bet­ter than the Dera Bassi. The in­fra­struc­ture is sub­stan­dard even within the apart­ment com­plexes in Dera Bassi SURESH KOHLI, a re­tired public sec­tor em­ployee set­tled in the town

HT PHOTO

The apart­ment prices vary be­tween ₹1,500 per square feet to ₹4,500 per square feet in the sub­urb.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.