Jalandhar options in the mid-price housing segment
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 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 from 20% 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 have proved 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.
THE MIDPRICE SEGMENT HOME BUYERS CAN CHOOSE FROM BOTH PLOTTED AND APARTMENT CATEGORIES IN JALANDHAR