Villas in Amritsar: Stuck up in the foundation
NASCENT STAGE The villa segment in Amritsar is still in the early development stage with limited supply options and low demand
Like in the rest of the state, Amritsar housing sector also is struggling with a slowdown for the past seven years. Demand is low and the prices are either in correction mode or stagnant. Diversity in product options such as apartments, villas and floors, which expanded fast at the start of the decade has consistently declined in the past six years.
In Amritsar, the trend of new product launches has diminished. One of the segments, which is still in the early stages of development is villas. These have failed to develop beyond the foundational stage. After witnessing the developers offering a number of villa products, the city is now seeing a constriction in supply.
“The slowdown has impacted all segments, more so the villa segment. The demand consistently fell in the past few years, with the developer incentive in expanding supply in the segment. There were signs of recovery in the second half of 2016, but then the market was affected by the demonetisation policy. Since the market is again in slump, builders are struggling with cash crunch, and demands have dipped further. There is no trading, sale and purchase in the segment. Investor had withdrawn from the segment long back. The end-user demand has also dipped,” says Harjinder Singh, an Amritsar-based real estate advisor.
SUPPLY OPTIONS ON GT ROAD, BATALAROAD
“Limited supply available in the city in concentrated in a few areas and the sizes generally vary between 100 sq yard to 500 sq yard. These are built-up residential units and the prices vary between ₹20 lakh to ₹2 crore. The prices depend on the land price and location of the villa. In areas with relatively expensive land, there prices of villas are more as compared to the other areas,” says BS Chauhan, a local real estate consultant.
Traditionally, the concept of villas indicates an architectural style, imitating the Mediterranean villas or other exotic styles, but in the city, even normal built-up houses are marketed as villas.
“If we go with the traditional definition of a villa, then only one project is offering them. The project is located on the GT Road. These villas were launched more than five years back, and it was the last true villa project in Amritsar. The prices of these vary from ₹1 crore to ₹2 crore per unit. These are available on 300sq yard and 500sq yard plots, and are duplexes. Thus, most builders are offering villas in the form of built-up units, which are in fact, simple kothis,” says Gurjot Ahluwalia, a city-based realtor.
From the end-user perspective, it is a good time to enter the market, but with limited options, the segment is not attractive enough for the buyers. “The enduser can buy his own land and construct a built-up house of his choice and design. Therearealso expandable villas being offered by some builders. In which the builder constructs the ground floor, and the buyer can expand it on the first and second floor,” says Singh.
For the investor, the segment lost value when the market slump started. Investors were mainly investing in plotted properties, but this segment was not even favoured during the boom years, say the local real estate experts.
Investors looking to explore the segment due to subdued prices and sentiment, should have long-term plans.
In the short- and mediumterm plans, the segment isn’t expected to generate attractive returns.
The investors entering this product segment will find it hard to exit the market at the time of their choosing, “as the demand is low, and options in the form of plots are many, which is the traditional choice of end-users in the city,” says Singh.
In Amritsar, the trend of new product launches has diminished. One of the segments, which is still in the early stages of development is villas.