Pe­riph­ery bet­ter op­tion than tric­ity

Rel­a­tively low prices for big­ger­sized prop­er­ties in the pe­riph­ery and the Prad­han Mantri Awas Yo­jana – Ur­ban are the per­fect match for home buy­ers look­ing for af­ford­able hous­ing

Hindustan Times (Chandigarh) - Estates - - ESTATES - Mu­niesh­wer A Sa­gar mu­niesh­wer.sa­gar@hin­dus­tan­times.com

The af­ford­able hous­ing pol­icy of the cen­tral gov­ern­ment in the in­stance of the loan sub­si­dies to the home buy­ers gels per­fectly with the in­ven­tory avail­able in the Chandigarh tric­ity pe­riph­ery. While Chandigarh, Panchkula and SAS Na­gar, even af­ter six years of price cor­rec­tions, re­main un­af­ford­able for most home buy­ers, the pe­riph­ery at­trac­tion has steadily in­creased be­cause of rel­a­tively cheaper prices at all the prop­erty size cat­e­gories.

THE SIZE CAT­E­GORIES UN­DER CLSS

Un­der the ‘Hous­ing for All by 2022’ mis­sion, the NDA gov­ern­ment at the cen­tre sup­ports af­ford­able hous­ing through the credit linked sub­sidy scheme (CLSS) as a com­po­nent of the Prad­han Mantri Awas Yo­jana – Ur­ban (PMAY-U). The scheme cov­ers both the low in­come groups (LIG) and the mid­dle in­come groups (MIG) of home buy­ers, and pro­vides for 3% to 6.5% in­ter­est sub­sidy on home loans for dif­fer­ent in­come and prop­erty size cat­e­gories.

The home loan in­ter­est rates start from around 7%. For the LIG home buy­ers, the size cat­e­gory is 645 sq ft. For the MIG buy­ers, the gov­ern­ment re­cently tweaked the size cat­e­gories.

The car­pet area in the MIG I cat­e­gory of CLSS is was in­creased to up to 1,292 sq ft from the ex­ist­ing 969 sq ft. Car­pet area for MIG II cat­e­gory of CLSS was in­creased to up to 1,615 sq ft from the ex­ist­ing 1,184sq ft. For the MIG-I cat­e­gory, a 4% in­ter­est sub­sidy is pro­vided to the ben­e­fi­cia­ries with an an­nual in­come of ₹6 lakh to ₹12 lakh on a loan of up to ₹9 lakh.

Un­der the MIG-II cat­e­gory, the ben­e­fi­cia­ries with an an­nual in­come of ₹12 lakh to ₹18 lakh get a 3% in­ter­est sub­sidy on a loan of up to ₹12 lakh.

For eco­nom­i­cally weaker sec­tions (EWS) and LIG cov­ers ur­ban poor with in­come lev­els of ₹3 lakh and ₹6 lakh per year re­spec­tively.

Un­der CLSS (EWS/LIG), in­ter­est sub­sidy of 6.50% is be­ing pro­vided on a loan of up to ₹6.00 lakh. To­tal in­ter­est sub­sidy avail­able to each ben­e­fi­ciary un­der this com­po­nent is ₹2.30 lakh.

The gov­ern­ment also re­duced the tax bur­den on af­ford­able hous­ing in re­cent no­ti­fi­ca­tion. A re­duc­tion of 4% in the Goods and Ser­vices Tax (GST) from 12% to 8% was made ef­fec­tive on Jan­uary 25. The re­duc­tion is ap­pli­ca­ble for the CLSS for res­i­den­tial prop­er­ties up to 645 sq ft. Other home buy­ers will con­tinue to pay the ex­ist­ing 12% GST af­ter fac­tor­ing in the one-third abate­ment for land value.

The gov­ern­ment had no­ti­fied the GST on un­der-con­struc­tion real es­tate at 18% ap­pli­ca­ble on two-thirds of the value of the prop­erty. Af­ter the ad­just­ment to the land cost, the ef­fec­tive tax is 12% of the sell­ing price of a prop­erty.

LIT­TLE IN CITIES, MUCH GAIN FROM PE­RIPH­ERY

In Chandigarh, Panchkula and SAS Na­gar, even the small­er­sized prop­er­ties, say less than 1,000 sq ft, are priced over ₹40 lakh.

These are ei­ther 1-BHK apart­ments or the 2-BHK apart­ments. But these are un­af­ford­able for the buy­ers in the EWS and LIG cat­e­gories.

Sim­i­larly, for the MIG buy­ers, look­ing for a house be­tween 1,000 sq ft and 1,700 sq ft, the prices in these cities start from ₹60 lakh for such prop­er­ties and can go up to ₹2 crore and above.

For in­stance, the sav­ings in terms of in­ter­est sub­sidy ac­crued in re­la­tion to the to­tal quan­tum of loan of ₹1 crore for a prop­erty sized 1,500 sq ft in the cities are too in­signif­i­cant for the loa­nee.

But, in the pe­riph­ery, most of the prop­er­ties, de­pend­ing on the in­come cat­e­gories, be­come af­ford­able as the price level is much less than the cities. Prop­er­ties start from as low as ₹10 lakh in the pe­riph­ery.

EX­PLOR­ING THE PE­RIPH­ERY

In the Chandigarh tric­ity, the pe­riph­ery of­fers sev­eral op­tions to the home buy­ers in terms of con­fig­u­ra­tion, seg­ments and builders. Ar­eas fall­ing un­der the Mo­hali dis­trict like Kharar-Ba­nur-Lan­dran road axis and Zi­rakpur are the hubs for prop­er­ties for af­ford­able hous­ing.

Plot prices on Kharar-Lan­dran road, which in­cludes new sec­tors com­ing up in SAS Na­gar and towns like Kharar, start at around Rs 16,000-Rs 17,000 per sq yard. A buyer can ex­plore plots of sizes vary­ing up to 300350 sq yard. Built-up in­de­pen­dent du­plexes, sized 90 sq yard to 100 sq yard can be ex­plored at price range of ₹ 35 lakh to ₹40 lakh. In this area, 2BHK (bed­room-hall-kitchen) apart­ments are gen­er­ally priced be­tween ₹25 lakh to ₹35 lakh. In the new sec­tors of Greater Mo­hali area, apart­ments with 1,100 sq to 2,000 sq ft area are avail­able in ₹50 lakh to ₹60 lakh. In the new sec­tors 1,200 – 1,700 sq ft sized floors are avail­able in ei­ther G+2 or G+3 (ground plus 2 or 3) con­fig­u­ra­tions. In the Kharar-Lan­dran road area, 90 sq yard to 150 sq yard built-up houses are avail­able.

In Zi­rakpur, buy­ers can ex­plore plots rang­ing from 50 sq yard to 200 sq yard plots in the price range of ₹20 lakh to ₹40 lakh. Plot prices on an av­er­age vary be­tween ₹20,000 per sq yard to ₹35,000 per sq yard de­pend­ing on lo­ca­tion. Buy­ers can get smaller sized apart­ments 2BHK start­ing from around ₹20 lakh. The av­er­age price range in Zi­rakpur varies from ₹2,200 per sq ft to ₹5,500 per sq ft. Though, most of the sup­ply in this area is in the price bracket above ₹50 lakh.

Ar­eas like Peer Much­hala and VIP Road in Zi­rakpur have the main con­cen­tra­tion of floors. In ₹50 lakh to ₹60 lakh, the av­er­age size of a floor hov­ers around 1,500 sq ft. Most floors avail­able in this area are bare shells. A buyer, gen­er­ally, has to do work on the in­te­ri­ors, etc. In this bud­get, apart­ments of sizes 1,200 sq ft to 1,500 sq ft are avail­able. Most of the new sup­ply is lo­cated on the VIP Road, Peer Much­hala, and on the Chandigarh-Am­bala na­tional high­way. In Zi­rakpur, 100 sq yard du­plex are avail­able in ₹50 lakh to ₹60 lakh range.

Dera Bassi of­fers still big­ger plot sizes in the af­ford­able price seg­ment – plot prices range from ₹10,000 to ₹20,000 per sq yard. In this bud­get, 200 sq yard to 400 sq yard plots are avail­able in the town.

It is a good place for a buyer to start his search for built-up house in this price bracket. A buyer can ex­pect to get built-up du­plex houses con­structed on plot sizes of 100 sq yard to 125 sq yard.

These are gen­er­ally priced in the range of ₹30 lakh to ₹45 lakh. Apart­ment prices range from ₹1,500 per sq ft to ₹5,000 per sq ft, though most of the sup­ply is avail­able in the lower end price bracket. Apart­ment sizes vary from 1,250 sq ft to 2,000 sq ft sized flats in this price range.

The in­fra­struc­ture qual­ity and ba­sic ameni­ties in the pe­riph­ery have much scope to im­prove but when it comes to af­ford­able hous­ing and avail­ing the ben­e­fits of the in­ter­est sub­sidy schemes then the pe­riph­ery is much bet­ter op­tion than the tric­ity.

HT FILE

In Chandigarh, Panchkula and SAS Na­gar, even the smaller­sized prop­er­ties are priced over ₹40 lakh.

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