End-user can ex­plore mar­ket in Pa­tiala as the sellers are open to price cuts

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

PA­TIALA: Buy­ing agri­cul­ture land in Pa­tiala is get­ting cheaper with the land con­sis­tently los­ing its value in the past cou­ple of years. Though, prices in this seg­ment started on a down­ward trend around six years back, yet, in the past cou­ple of years, the corrections have be­come sharper, say the lo­cal real es­tate ex­perts.

“In the last two years, agri­cul­ture land has lost more than the gains made in the first half of the decade. For in­stance, two years back, an acre was worth ₹50 lakh, andi snow avail­able at ₹22 lakh to ₹25 lakh per acre. This is in a lo­ca­tion that is in prox­im­ity to the city. Land lo­cated fur­ther away from the city is avail­able at a price range of ₹10 lakh per acre to ₹15 lakh per acre,” says Gur­preet Singh, 40, a city-based real es­tate con­sul­tant.

UNATTRAC­TIVE RE­TURNS

The end-user de­mand was driven by co lo ni se rs float­ing plot­ted colonies. But in the past six years, the de­mand from both, in terms of in­vestors and end-users, for the agri­cul­ture land, has de­clined. “The builder de­mand dip co­in­cided with the over­all slow­down in the realty mar­ket. When de­mand for the res­i­den­tial and com­mer­cial units started to de­cline, de­mand for new projects and ex­pan­sion in older projects also de­clined. Builders are in no po­si­tion to add to their land banks as they are short on liq­uid­ity and strug­gling to sell their un­sold in­ven­tory ,” says N av deep SM al-ho­tra, 37, a lo­cal real es­tate ad­vi­sor.

The seg­ment, in the city and the ad­join­ing ar­eas, at­tracted in­vestor in­flows a decade back, when re­turns from the mar­ket were at­trac­tive. Cur­rently, the mar­ket sen­ti­ment is sub­dued.

“Two types of in­vestors were in­ter­ested in the lo­cal land seg­ment. Peo­ple sell­ing more ex­pen­sive land in places such as Mo hali and Lud­hi­ana were com­ing to Pa­tiala and ad­join­ing ar­eas. For in­stance, such in­vestors would sell their land for ₹1 cr ore per acre in Mo­hali, and then rein­vest the raised money in buy­ing cheaper land in prox­im­ity of Pa ti alain the price range of ₹20 lakh per acre to ₹50 lakh per acre,” says Singh.

The NRI (non-res­i­dent In­dian) realty in­vestor was also ac­tive in the area dur­ing the boom years. “When the re­turns were good from the seg­ment, the N RI in­vestor was ac­tive in the mar­ket. But, cur­rently there is a to­tal ab­sence of the N RI in flow in this seg­ment. In­stead, we are wit­ness­ing lo­cal res­i­dents in­vest­ing in places such as Aus­tralia and Dubai,” says Singh.

IM­PER­FECT FU­TURE

The gov­ern­ment pol­icy em­pha­sis and in­cen­tives to af­ford­able hous­ing is fu­elling growth in the agri­cul­ture seg­ment in some of parts of the state’s realty. But ac­cord­ingto lo­cal realty ex­perts, the land seg­ment in Pa­tiala isn’t ex­pected to gain from dif­fer­ent pol­icy ini­tia­tives and changed builder fo­cus on af­ford­able hous­ing .“Builders en­ter­ing the af­ford­able hous­ing seg­ment are us­ing their old land banks, and are not pur­chas­ing new land ,” says Mal­hot ra. Cheaper land also dis­cour­ages the builder to buy land to tap into af­ford­able hous­ing po­ten­tial.

“The home buyer can buy ₹3,000 per sq yard plot. In ₹20 lakh to ₹30 lakh, one can con­struct a 200sq yard house. So, af­ford­able hous­ing is not such a big is­sue in the city. It is un­likely to fuel de­mand for agri­cul­ture land in the city,” says Singh.

Growth in the seg­ment isn’t likely to ma­te­ri­alise in short-and medium-term. For in­vestors, the best op­tion is to de­fer in in­vest­ments in the seg­ment

HT FILE

Once a favoured des­ti­na­tion for realty in­vestors, the rel­a­tively cheaper agri­cul­ture land in and around Pa­tiala has no tak­ers and sharp price corrections are the norm.

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