Source: Hindustan Times
Punjab Real Estate: Despite, Price Correction, Buyers Stay Away
Zirakpur witnessing a real estate boom, encouraged many builders /developers and even buyers to invest in this sector, however, today the scenario is one of steady decline. Over supply, as well as, the recent cancellation of various residential projects CLU by the Punjab Pollution Control Board (PPCB) have been the major factors responsible for falling Zirakpur
real estate prices.
With nearly, 10,000 flats expected to come up in the different parts in Zirakpur, barely 10-km from Chandigarh, the prices of flats here have climbed down by 20 to 30%.
Despite, price correction, buyers seem to be missing from the market, a fact that has seen developers undergoing tough times. People have stopped investing in this sector, while they wait for the newly formed Punjab government to come up with a clear real estate policy.
As per market experts: “Flat price which was around Rs. 2,000 - 2,500 per sq. ft. about a year ago, has now dropped to Rs. 1,600 - 2,100-per sq. ft. Mutely, builders are dropping prices and are also ready to bargain with customers.”
Real estate experts feel only those builders who have established themselves in good locations will survive under the present conditions. That apart, nearly 10,000 flats are under construction, of which 30 - 35% have been completed and have a 50 to 60% occupancy rate.
Earlier, soaring real estate prices in Chandigarh discouraged buyers, who saw Zirakpur as a hot destination for residential houses. However, lack of infrastructure and high property prices in Zirakpur, began to
keep them away.
N.K. Sharma, Municipal Corporation President and Senior Vice President of Punjab Colonisers and Builders association says: “During the real estate boom many property dealers and
real estate developers bought the property for investment purposes. But, now the worst hit are small-scale developers, who have no buyers and many of whom have had to stop further construction of the flats. Those developers who have invested heavily in the property are not ready to lower prices, while buyers are not ready to pay them. At present, there are hardly any transaction taking place.”
This has led to the builders, who wish to launch projects, bide their time till the markets go up. Rajesh Bhasin and Sunil Bandha, Directors - ONS Developers and Promoters say: “We are waiting for the rise in realestate market again to launch our project, and have already applied for the Punjab government’s approval and are hopeful that we will get it.”
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