The sluggish trend of the real estate market in Punjab continues due to the state assembly elections, Rai Umraopati Ray reports
With assembly elections in Punjab on the anvil, property prices have further dipped by 5 to 15 per cent in the state --- continuing the sluggish trend of the real estate market. Thanks to the verbal clash between the two major political parties about different real estate projects and policies, buyers and investors are quite apprehensive and would rather not go in for any deals at this point in time. The market therefore, reflects an absolute 'no-buyer condition'. According to realty sources prices have depreciated in almost all districts including Mohali, Jalandhar, Bathinda, Ludhiana, Amritsar, Zirakpur and Dera Bassi. But the expected resurgence --- sometime in the beginning of the new financial year --- is dependent on the results of the elections.
Sanjay Arora of Yours Property Consultant in Chandigarh averred, “Property prices have depreciated by 5 to 10 per cent in the periphery areas of Chandigarh due to the state assembly elections and the present condition of over supply. Prices have gone down by nearly 15 and 10 per cent in Zirakpur and Mohali respectively. The affect can be seen in Kharar and Dera Bassi too where rates have climbed down by 7 to 8 per cent. A change of government will definitely affect the real estate market in the state and prices could go down further.”
Being a rather volatile market, realty prices are usually affected during the elections. But this time round, it is strong reservations (by a major political party) against some of the state's mega projects that have made buyers and investors sceptical about putting money into any real estate projects for time being. Says Virendra Tiwari, a resident of Ludhiana, “We have postponed the decision to buy a plot in a residential project because of the state assembly elections. If the government changes, policies and regulations regarding real estate could change the fate of various projects of the region.” In Ludhiana itself, prices have dropped by more than Rs. 4000 to Rs. 5500 per square yard in and around Shaheed Bhagat Singh (SBS) Nagar. According to realty sources the prices of residential plots nose-dived with a 1000 square yard plot seeing its rates falling by a few lakhs in the last four to five months. "Residential plots do not have many takers for now. Buyers are waiting for the new government to form and announce their policies," said a property consultant who has been in the real estate business for the past seven years.
Likewise, in Jalandhar, property prices have crashed by six to seven per cent in the last six months. Real estate prices have depreciated in developed areas like Green Model Town, Urban Estate Phase-II, Gurmeet Nagar, Ramnik Nagar, Cheema Nagar, Vasant Avenue, BMS Nagar and Indira Park as well. As per market reports, rates have also climbed down on Bathinda-Mansa Road, Bathinda-Dabwali Road and Bathinda-Barnala Road where numerous residential projects are being offered for sale. The Director of a residential project in Bathinda, on the condition of anonymity, revealed that the number of transactions have considerably decreased in the last two months. Even the number of queries has reduced to just one or two a day.
The situation is no different in the Holy City of Amritsar where rates have gone down on the Jalandhar-Amritsar Highway, GT Road and Mall Road. According to market sources the real estate scenario in the city has been affected due to the political upheaval over the last 40 days. Investors and end-users are waiting for this phase to end and for the political uncertainties to settle down.
R.P. Malhotra, CEO, DeeEss Estates disagrees with the points of view put forward, “The market is in a correction phase and the elections have little or negligible impact on the realty market. But regime change in the state would definitely create hurdles for any mega projects because of the main opposition party’s constant outbursts against mega projects approved by the ruling party in the name of development.” However, M.S. Chadha, Director, Chadha Group, who is developing a large project, WestEnd Estate, in Mohali is confident that “good projects which are legally placed and have not used shortcuts will have no trouble.”
The market may be dispirited at this point in time but irrespective of which political party comes to power, real estate is going to prosper as it is synonymous with development.
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