Jalandhar op­tions in the mid-price hous­ing seg­ment

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

CHANDIGARH: The Jalandhar hous­ing mar­ket is in the midst of a slow­down and it is a good time for hous­ing hunt­ing. The best price seg­ment to ex­plore for a home buyer is the mid-price seg­ment of ₹40 lakh to ₹60 lakh.

While there are prop­er­ties avail­able in all prices ranges in dif­fer­ent hous­ing cat­e­gories, but it is the mid-price seg­ment where most of the sup­ply is con­cen­trated, par­tic­u­larly in the mul­ti­storey apart­ment seg­ment.

“The Jalandhar hous­ing mar­ket is driven by the non-res­i­dent In­dian (NRI) in­vestor. But, cur­rently in the slug­gish mar­ket con­di­tions, it is the lo­cal en­duser who is driv­ing the mar­ket and gen­er­at­ing de­mand both in the pri­mary and sec­ondary mar­kets. The lo­cal end-user de­mand is mainly in the mid-price seg­ment, whether it is plots or built-up res­i­den­tial prop­er­ties,” said, RS Sandhu, 45, a lo­cal real es­tate con­sul­tant.

For buy­ers, in the plot­ted seg­ment, op­tions are avail­able in all price brack­ets, with price rang­ing widely from ₹8,000 per sq yard to ₹80,000 per sq yard. Most of the sup­ply though is con­cen­trated in the mid-price range of ₹20,000 per sq yard to ₹40,000 per sq yard. “200 sq yard to 500 sq yard is avail­able in the mid-price seg­ment. The big­ger sized plots are avail­able in the pe­riph­ery while the smaller ones are avail­able in older de­vel­oped ar­eas in

THE MID­PRICE SEG­MENT HOME BUY­ERS CAN CHOOSE FROM BOTH PLOT­TED AND APART­MENT CAT­E­GORIES IN JALANDHAR

this price range,” said Vi­nay Chugh, 56, a lo­cal re­al­tor.

Jalandhar is one of the few realty des­ti­na­tions in the state where the apart­ment cul­ture has taken roots. Both be­cause of the NRI in­flu­ence and rel­a­tively cheaper prices have al­lowed builders to at­tract buy­ers to the apart­ment seg­ment. For mid­priced seg­ment home buy­ers, apart­ment projects are also an at­trac­tion op­tion in the city.

“Apart­ments are avail­able in all price seg­ments and sizes. Cur­rently, most of the sup­ply is in the sec­ondary seg­ment, though builders also have large un­sold in­ven­tory with them,” said Sandhu.

Flats are avail­able in all price ranges start­ing from around ₹15 lakh in the mid-price seg­ment, 2-BHK (bed­room, hall, kitchen) and 3-BHK. In terms of sizes, the buyer can choose from bud­get apart­ments to pent­houses.

Sup­ply ex­pan­sion in the seg­ment slowed downed in the last cou­ple of years. The end-user de­mand is mainly in the mid­price seg­ment. The ma­jor chunk of the apart­ment sup­ply is cater­ing to this price seg­ment. Though, higher priced, su­per­lux­ury apart­ments also form part of the sup­ply cre­ation. On an av­er­age the apart­ment sizes vary be­tween around 1,200 sq ft to 6,000 sq ft. The av­er­age prices in the seg­ment vary be­tween ₹2,200 per sq ft to ₹2,500 per sq ft. Prices, cur­rently, are rel­a­tively sta­ble.

Price de­cline ranged from20% to 50% de­pend­ing on lo­ca­tion in the last six years. The ab­sence of the NRI in­vestor also im­pacted the lo­cal in­vestor sen­ti­ment. The lo­cal end-user de­mand, though con­cen­trated in the plot­ted seg­ment, isn’t enough to drive fast paced price growth, but it is keep­ing the trans­ac­tions go­ing on in the hous­ing mar­ket.

So, when the NRI in­vestor started to be­come net seller from net buyer, the lo­cal in­vestor lost op­por­tu­ni­ties to sell prop­er­ties at higher pre­mium. Th­ese mar­ket dy­nam­ics have con­sis­tently dragged down plot prices. “The mid-price seg­ment is an in­vest­ment friendly op­tion also. With rel­a­tively bet­ter end-user de­mand al­low­ing greater num­ber of trans­ac­tions, it is eas­ier to exit this seg­ment than the more ex­pen­sive seg­ments. Also, prices in this seg­ment have­proved to be more re­sis­tant mar­ket fluc­tu­a­tions than seg­ments,” said Chugh.

Lo­cal realty ex­perts, say the mar­ket is ex­pected to re­main sta­ble in com­ing months, and it is still a good time for the buyer to ex­plore the mid-price seg­ment in the city.

HT FILE

Most of the sup­ply is con­cen­trated in the multi­storey apart­ment seg­ment in Jalandhar. n

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