Built-up in Patiala: The missing buyer options
For home buyers, Patiala residential realty offers limited alternatives
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.
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.