Chandigarh realty softening but periphery gaining

Vibrant cities for vibrant economy-XI

By: Track2Media Intellisearch

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If only the secondary market was any indicator of real estate growth, the argument that the real estate market is turning bearish in Chandigarh would have been true. But while the prices have softened a bit in the city, the beneficiary is the periphery of Chandigarh that makes the overall property market in the city very bullish and overall economy vibrant. As a matter of fact, there is more demand for the upcoming projects in the periphery than in the main city where prices have already hit the roof.

Chandigarh’s regional boundaries have gradually increased to accommodate a number of settlements from Punjab, Haryana and Himachal Pradesh. Thus, intensive real estate development is taking place in Mohali, Panchkula, Zirakpur, Mullanpur, and Dera Bassi.

Real estate analysts maintain that the prices have started softening (varying in each micro market) in the city, but developers rue that rising input costs is making it impossible to bring the prices down for the new projects (in the periphery). Developers maintain that prices have softened in urban areas like Chandigarh, Panchkula (where mostly secondary sales happen), but they refuse to believe that the prices would come down in the periphery. Reason: the prices are “rational” in the peripheries of Chandigarh.

Rahul Mehta, Executive Director (North), DLF, maintains rising cost of borrowing moving up in the last few months (owing to RBI measures to douse inflation) impacts the borrowing costs for individuals, especially the salaried people who form the bulk of buyers for residential property in the region. “Obviously this has slowdown the pace of transactions,” he added.

A downward pricing for new projects was a difficult proposition for developers, given the higher land costs as well as increasing input costs. Value pricing will certainly happen, he adds.

Chandigarh Properties have always been on high demand. Chandigarh, the city that is more popular for its modernism and architecture is ready to jump into the technology bandwagon. The city is offering the right atmosphere to most IT companies and they are looking forward to spread their wings here. The list includes the name of some IT biggies such as IBM, Dell, Cognizant, Mphasis and Satyam. Most of them have either already taken their place in the city, or are in the process. Such a tremendous industrial growth has contributed to the escalation of residential property rates.

However, the scope of appreciation is still there in the city with the implementation of metro rail transport system. Analysts believe property prices in Chandigarh would rise sharply in the year ahead especially the commercial sector. Peripheral towns or suburbs of Chandigarh would get their real estate ranks of importance from the viewpoint that how strategically they are located on the maps of proposed metro plans.

Apart from strategic location on metro proposed plan, there seem to be innumerable good reasons to look for periphery property market like Zirakpur and Mullanpur at this moment. The property sector in Zirakpur is witnessing an unprecedented boom. Mullanpur is still young in real estate sector and hence scope of appreciation very high.

Mullanpur getting renamed as New Chandigarh, Punjab’s first planned eco city, has already started to buzz with the major real estate developers, with sizable presence in the area, starting their development work. DLF has launched Hyde Park Estate where the plots of sizes 350 and 500 sq yards were sold within days of launch in this premium township. Property consultants say the investors in the Hyde Park Estate have already benefited by almost Rs 4,000 per sq. yard since March this year when the project was launched.

Set to compliment Chandigarh in modernity and planning, being developed under a master plan approved in 2008, the New Chandigarh township, with the unobstructed views of the Shivaliks, promises to have state-of-the-art health village, knowledge village and eco-tourism related activities.

The township will also have a slew of recreational facilities like amusement park, spa village, open-air theatres, theme parks and lifestyle hub, including golf course and sports facilities around the seasonal rivulets, passing through the area. All mega projects coming up in the area will adhere to the master plan norms proposed by the consultants to the project, the Singapore based Jurong International.

There is another township and a commercial tower from Omaxe and developments of various housing societies like the IAS society. GMADA (Greater Mohali Area Development Authority) is also readying to launch the first of its urban estates in New Chandigarh.

A new cricket stadium planned by Punjab Cricket Stadium at New Chandigarh over an area of 40 acres to replace the PCA Stadium Mohali as a venue for international cricket matches is also to come up in the next two-three years. This will bring New Chandigarh on the global map.

The proposed express highway between Delhi and Chandigarh at an estimated cost of Rs 8,000 crore along the river Yamuna and plans to convert eight state roads into national highways is expected to add to the economic activity, thus appreciating the property price.

Chandigarh is also fast catching up in the taste of luxury living. The trend of penthouse is fast catching up with the upper middle-class of the Tricity and NRIs who want an exclusive and independent place to chill-out. Since Chandigarh does not have any high rise apartments and hence penthouses due to restricted building by-laws to preserve the heritage of master architecture, the enthusiastic buyers have turned their eyes in the vicinity of Tricity.

Chandigarh, no doubt, stands ti its reputation of being the hot and happening destinations .it has been nominated as ‘The Best City to live in ‘ by a popular journal. Chandigarh is well-known for its structural design,broad roads, well spaced out tracks and ambient atmosphere. The developments and extensions to a variety of areas are for all time well designed .Moreover being well connected with Delhi and NCR by the fastest means available, has led to the frenzied rush for investing in Chandigarh real estate.