Built-up in Pa­tiala: The miss­ing buyer op­tions

For home buy­ers, Pa­tiala res­i­den­tial realty of­fers lim­ited al­ter­na­tives

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

The Pa­tiala hous­ing mar­ket, like other cities in the state, is in the midst of a slow­down. The sup­ply is more than the de­mand, and only need-based end-user is ac­tive at present. Prices in most places are stag­nant and trad­ing vol­umes low.

The built-up seg­ment hasn’t de­vel­oped like in other cities. Most of the buyer fo­cus is on buy­ing plots and con­struct­ing a house on their own. In the sec­ondary mar­ket, built-up houses in the form of tra­di­tional kothi type con­struc­tions are avail­able across the city.

“Un­like Ludhiana, Jalandhar and Am­rit­sar, in­de­pen­dent floors failed to at­tract both builders and buy­ers. Sim­i­lar is the sit­u­a­tion with apart­ments. Low de­mand and rel­a­tively cheaper plots within the city and in the pe­riph­ery of the city means al­ter­na­tives are not con­sid­ered much by the home buyer ” says Manin­der Singh 43, a lo­cal real­tor.

PRICE FAC­TOR

The last price ap­pre­ci­a­tion in the city took place be­tween 2010 and 11. At the time, end-user de­mand was driv­ing realty growth. The boom hap­pened way back in 2003-06 and prices more than dou­bled dur­ing the pe­riod. Trad­ing vol­ume lev­els were high and it was all spec­u­la­tion driven. The in­vestor was at the cen­tre of this realty growth.

In five years, plot prices in the city and ad­join­ing ar­eas de­creased by 35% to 40%, de­pend­ing on lo­ca­tions, and at present, there is price stag­na­tion in most ar­eas and projects, say lo­cal real es­tate ex­perts. The preva­lent price sta­bil­ity is mainly at­trib­uted to low trad­ing vol­umes in the seg­ment.

At present, prices of plots range from Rs 10,000 to Rs 40,000 per square yard.

In older de­vel­oped ar­eas, the av­er­age price is about Rs 25,000 per sq yard. The city is a tier III city and hous­ing in the bud­get and af­ford­able seg­ments is eas­ily avail­able. It is not only the pe­riph­ery but even within the city a buyer can eas­ily find a plot for about Rs 20,000 per square yard. Though in the more de­vel­oped and older ar­eas, the price may go up to Rs 50,000-Rs 60,000 per square yard. But most of the sup­ply is in the Rs 20,000 per square yard to Rs 30,000 per square yard bracket and in the pe­riph­ery, it is a lot cheaper, say lo­cal real es­tate ex­perts.

The built-up smaller-sized houses is one of the seg­ments that have gained as builder fo­cus started to shift to­wards af­ford­able hous­ing. Built-up houses in 1-BHK (bed­room, hall, kitchen) and 2-BHK for­mats are reg­is­ter­ing a steady in­crease in sup­ply and de­mand. “Prices of such prop­er­ties start from Rs 10 lakh and ex­tend to Rs 30 lakh. It is a seg­ment dom­i­nated by the lo­cal builder who con­structs one or two houses at a time and then sells it. These prop­er­ties are mainly avail­able in the pe­riph­eral ar­eas and new colo- nies,” says Singh.

Du­plex units gen­er­ally con­sist of a ground and first floor. The ground floor com­prises a room, kitchen and small guest area, and the first floor has two small bed­rooms and a bath­room. Prices in the seg­ment start from Rs 10 lakh to Rs 15 lakh, de­pend­ing on size and lo­ca­tion. Big­ger built-up houses are also avail­able in the tra­di­tional kothi style in the sec­ondary mar­ket across the city. The smaller built-up units are avail­able in prices start­ing from Rs 20 lakh in the pe­riph­ery. The price can go higher than Rs 1 crore for kothis in the older, de­vel­oped parts of the city.

Prices in the built-up seg­ments are sta­ble for the past one year. Ear­lier, the city realty, like the rest of the re­gion, reg­is­tered sharp price cor­rec­tions. The ab­sence of de­mand from the in­vestor and lim­ited de­mand from the end-user, in fact, helped sta­bilise prices in the res­i­den­tial seg­ment in the city, say lo­cal realty ex­perts

Prices in the built­up seg­ments are sta­ble for the past one year.

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