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