Demand for affordable floors in Ludhiana housing sector is increasing
Independent floor segment in Ludhiana housing sector is an underdeveloped category even though demand has consistently risen for it
Ludhiana housing sector has always been driven by the local demand. In boom periods, the local investors were fueling fast-paced growth.
Now, the end-user demand is driving the housing sector in the city. Most of the end-user demand is concentrated in the budget and affordable housing segments.
Plots are the most popular category in the city and its periphery and prices have increased fastest in this category. Most of the demand is concentrated in the 50 sq yard to 100 sq yard, say local realty experts. This demand is being catered by local builders, and the periphery is the major supply hub. Such relatively small duplex units consist of a ground and first floor.
The ground floor comprises of a room, kitchen and small guest area, and the first floor has two small bedrooms and a bathroom.
In addition to the smaller sized duplexes, independent floors are also available in affordable and budget segments. Buyers and developers now are starting to get attracted to the floor-wise construction in three types–G +1, G +2 and G +3 (ground plus one/two/three floors) categories. For the developer, it is more cost effective, and for the buyer it is more affordable and goes well with the traditional preference for a plot.
Higher priced floors can also be purchased in the city. These are available in township projects. “Prices for independent floors range between ₹15 lakh to ₹75 lakh.
Floor plot size vary between 100 sq yard and 350sq yard. With most real estate activity and development in the city taking place primarily around five areas - Pakhowal Road, Ferozepur Road, Chandigarh Road, Canal Road and GT Road, most of the floor supply is also available in these areas,” says Dushyant Garg, 42, a local real estate consultant.
The main supply generators in the segment are the local builders. Only a few of the national and international developers have successfully launched their products in the city.
“The local developer has better knowledge of the market and has delivered floors more successfully. They are tailoring the product in tune with the buyer needs, particularly, in terms of pricing They are not launching big sized projects, but, are concentrating on constructing couple of units at a time. If market demand changes in the pricing and configurations, they quickly respond to it,” says Jagveer Singh, 56, a local builder.
In the city, ready-to-move floors are faring better than the under-construction properties. “This is one of the reasons that the smaller local builder are doing well. They concentrate on one or two units and complete construction quickly and then offer these to the buyers. In contrast, the bigger builder takes a lot of time to start and finish a project,” says Singh.
Most of the new supply is coming up within the municipal limits. These have to contend with relatively relaxed building codes. With lack of stringent controls over the development and selling of floors, the segment struggles with problems like parking and other related infrastructure.
“Builders are offering stilt parking with floors but such cases are very rare. This has lead to parking issues in these localities,” says Singh.
Though, the segment is attracting home buyers, yet, the supply is yet to catch with the demand quantum and nature. “Both quality and quantity are the issues. With builders struggling with liquidity crunch and large unsold inventory in other segments, it is very difficult for them to expand their footprint in this segment. They are concentrating on completing and delivering their older projects than launch newer ones,” says Garg.
In the short-term the supply, conditions will remain stable, and the increase is expected only in the medium and longer terms.
“The builder also looks at the market sentiment. At present, the market sentiment is subdued. The investor is still absent from the market. If the investor enters the segment then the builder response will also increase,” says Singh.
Local realty experts say, being a hub of several small and medium scale industries, the city requires lots of housing in the affordable and budget segments. The floor segment fits in very well with these requirements.
“Both the state and union governments are focusing on the growth of affordable housing. The potential demand in the segment is already very strong. All that is needed for fast growth in the segment is the positive builder response. In the coming months, we will see more and more builders offering floors in a more organised and large scale manner,” says Garg
Higher priced floors can also be purchased in Ludhiana. These are available in township projects.