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

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

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.

HT FILE

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.

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