New Chandigarh: Hub for floors in tricity

STA­BLE AL­TER­NA­TIVE In the midst of gen­eral slow­down and price cor­rec­tions, the in­de­pen­dent floor seg­ment in New Chandigarh con­tin­ues to be steady, of­fer­ing mid­price seg­ment op­tions to the buyer

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

Mul­lan­pur or New Chandigarh, lo­cated in Mo­hali district, is a ma­jor hub for in­de­pen­dent floors in the tricity re­gion. The city is home to more than 3,000 floors, avail­able in dif­fer­ent sizes and prices.

EMERG­ING RE­ALTY MAR­KET

The city is planned as a low pop­u­la­tion den­sity area. The planned city is linked di­rectly to Chandigarh and Mo hali through a de­vel­oped road net­work. The city also boosts of world­class health, ed­u­ca­tional and high qual­ity life in­fra­struc­ture, though still in the early de­vel­op­ment stage.

Sev­eral gov­ern­ment plans for the area such as mak­ing it an ed­u­ca­tion hub spread over 1,500 acres con­sist­ing in­ter­na­tional uni­ver­si­ties and in­sti­tutes, a cricket sta­dium and a medic­ity, spread over 800 acres with in­ter­na­tion­als ta nd a rd health fa­cil­i­ties make it an at­trac­tive prospect for home buy­ers.

But, af­ter ini­tial fast pace ex­pan­sion and buyer in­ter­est in the post-2010 pe­riod, the city steadily lost the at­trac­tion as the re­alty slow­down hit the re­gion’s re­alty mar­ket. Be­tween 2010 and 2012, the area de­liv­ered high in­vest­ment re­turns for the re­alty in­vestor since the first of­fer­ing of res­i­den­tial plots in 2010. By 2017, plot prices de­clined plagued by pos­ses­sion de­lay san dun favourable mar­ket con­di­tions.

The city of­fers op­tions for en­dusers and in­vestors with longterm plans. Be­fore this, Mull anp ur at­tracted all sorts of in­vestors as there was gen­uine buyer in­ter­est in the lo­cal mar­ket. Many new of­fer­ing sin this mar­ket also co­in­cided with the over-all pos­i­tive sen­ti­ments.

In the pri­mary mar­ket, though prices are still sta­ble, but the sec­ondary mar­ket presents has shown price stress even in the floor seg­ment. It is the plot seg­ment, which reg­is­tered the ma­jor chunk of price cor­rec­tions.

“In the in­de­pen­dent floor seg­ment, though, the price growth was not re­placed by price cor­rec­tions but with price sta­bil­ity. The in­vestor de­mand de­clined has mar­ket sen­ti­ment turned from pos­i­tive to sub­dued but the en­duser de­mand has kept the floor seg­ment away from any ma­jor down turn ,” says Mo han Dutt ,38, a Chandigarh-based real es­tate con­sul­tant

Pos­ses­sion de­lays, slow de­vel­op­ment of in­fra­struc­ture projects and the gen­eral slow­down in the re­alty mar­ket has put off both the in­vestor and the end-user. The lo­cal re­alty mar­ket also faces com­pe­ti­tion from other de­vel­op­ing re­alty mar­kets, par­tic­u­larly from other pe­riph­eral towns in the tricity — Zi­rakpur, Dera Bassi and Kharar-Land ran road of Mo­hali district.

In th­ese lo­ca­tions, in con­trast to New Chandigarh, op­tions in the floor seg­ment are more and some­times, even cheaper.

“The cur­rent mar­ket con­di­tions are dom­i­nated by the en­duser. For most end-users, readyto-move prop­er­ties are pre­ferred more. Zirka­pur, Dera Bassi and Kharar of­fer more op­tions in the floor seg­ment both in terms of sizes and prices in the ready-to­move cat­e­gories ,” says JP Singh, 62, a Mo­hali-based real es­tate con­sul­tant. This, say re­alty ex­perts, also im­pacted the de­mand and prices of floor sin the New Chandigarh area.

AVAIL­ABIL­ITY AND PRICES

Around 3,000 in­de­pen­dent floors in vary­ing sizes – 1,100 sq ft to 2,500 sq ft – are avail­able in the New Chandigarh area The mar- ket price for floors ranges be­tween ₹2,800 per sq ft to ₹4,000 per sq ft de­pend­ing on lo­ca­tion, project and fa­cil­i­ties on of­fer. Ma­jor pri­vate play­ers include DLF and Omaxe.

“For buy­ers, the min­i­mum price for a floor is around ₹40 lakh and the most ex­pen­sive floors are priced at around ₹1.25 crore,” says Dutt.

While ar­eas like Kharar of­fers floors start­ing from ₹20 lakh, the New Chandigarh area has an edge in terms of sizes avail­able. Th­ese start from around 1,100 sq ft and can go up to 2,400 sq ft.

The in­crease in habi­ta­tion is also en­cour­ag­ing the mid-price seg­ment buyer to ex­plore the lo­cal floor seg­ment.

“The pos­ses­sion de­lay prob­lems are ev­ery­where in the pe­riph­ery, and so, New Chandigarh is not an ex­cep­tion in this re­gard. Devel­op­ers have started de­liv­er­ing pos­ses­sion, and in the last one year the habi­ta­tion in the area has con­sis­tently in­creased. This is adding to the at­trac­tion of the area,” says Dutt.

In­creased habi­ta­tion is en­cour­ag­ing the buyer to come to the area, but, for most buy­ers, the long-term po­ten­tial of the area and its con­nec­tiv­ity with Chandigarh is still the main at­trac­tion.

“Most of the in­fra­struc­ture is de­vel­oped, and even within the projects, in­fra­struc­ture is fairly de­vel­oped. Other ma­jor projects in ed­u­ca­tion, health and other sec­tors with good con­nec­tiv­ity make the long-term po­ten­tial for the area very strong. The steady de­mand for floors in the area is the re­sult of such long-term ex­pec­ta­tions,’ says Singh.

For the in­vestor, though, the re­turns aren’t still very at­trac­tive to en­ter the seg­ment. Lo­cal re­alty ex­perts ad­vise that the best op­tion for the in­vestor is to en­ter the mar­ket when the re­turns turn pos­i­tive. En­ter­ing the seg­ment now can mean exit prob­lems cou­pled with neg­a­tive re­turns

HT FILE

The city also boosts of world class health, ed­u­ca­tional and high qual­ity life in­fra­struc­ture, though still in the early de­vel­op­ment stage.

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