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

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

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.

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