With the demand for residential apartments on the rise, the festive season has brought cheer to the Covid beleaguered realty sector, which is finally showing signs of recovery.
Peripheral areas such as Zirakpur, Kharar and New Chandigarh have emerged as the tricity’s property hubs. GMADA’s IT City and AeroCity projects, Airport Road have become some of the tricity’s highly sought-after addresses for both investors and those looking to build a home.
Asserting that demand for properties on Airport Road was at an “all-time high,” Greater Mohali Area Development Authority (GMADA) chief administrator Amandeep Bansal said, “Investors from not only from Punjab, but also Chandigarh, Himachal Pradesh, Haryana and the National Capital Region (RCR) have shown a keen interest in buying properties, especially apartments in the area.”
“In the last three auctions, GMADA earned nearly ₹1,500 crore. Another auction for both residential and commercial properties is due in a month’s time and we are confident of garnering a positive response,” says Bansal.
The realty market had last witnessed a boost in August, collectively raking in ₹126 crore in stamp duty (registration fee). “The stamp duty collection reflects the investors are showing a renewed interest in GMADA properties,” he added.
The district had in 2021-22 earned ₹1,300 crore in stamp duty, a marked increase from ₹822 crore in 2020-21. Mohali city registered the highest collection at ₹614 crore for 2021-22 against ₹375 crore in 2020-21. Realtors say the ₹20,000-crore fund created by the Centre for real estate projects has helped boost the sector.
What the future holds?
Asked for how long sales are likely to remain robust, Tarninder Singh, chairperson, Manohar Infrastructure, New Chandigarh, says, “The real estate sector has appreciated considerably in the tricity. The demand has remained robust despite increasing input costs. It is slowing down a bit, which is natural. It may rally again around Diwali as people have a tendency to invest in real estate at the time. After an almost decade-long slump, the sector is now entering a three to five year up cycle.”
On the reason for the surge in demand, Prateek Mittal, executive director of the Sushma Buildtech, which is building residential and commercial projects in Zirakpur and on Airport Road says, “Post-pandemic, the real estate segment has made a strong comeback as people are looking to purchase home. Buying homes is viewed as dependable asset accumulation that will bring returns in the future.”
Apartment prices up by 20%
The rise in demand for apartments has led to a 20% increase in price. A three-bedroom flat, which cost around ₹65 lakh prior to the pandemic is now being sold for around ₹80 lakh. Prices for the luxury segment has touched ₹1 crore. Two-bedroom flats that were being sold for around ₹45 lakh, are now going for around ₹65 lakh each.
Builders say queries are pouring in from prospective buyers and end-users are mostly looking for ready-to-move properties. There are around 200 private housing societies in Mohali.
What buyers want?
So, what are buyers looking for? “People are increasing going for eco-friendly apartments. For the past few months, the real estate market has been on a fast-lane in Mohali, and people from the NCR are also investing in our residential building project on Airport Road,” says Amit Mittal, director, Green Lotus Utsav.
“Independent floors, luxury homes, and holiday homes are regarded as top-selling real estate classes backed by healthy demand from customers. Even Non Resident Indians (NRIs) and high net-worth individuals (HNIs) have emerged as choosers and buyers of Indian real estate properties, especially luxury,” says Mittal.
On whether an increase in the rate of home loans has affected the sales of luxury flats, Harish Gupta, managing director, Trishla Builders And Developers, says, “There has been no effect on the sale of luxury flats. Over the past two years, no new residential projects have come to Zirakpur , leaving buyers with a limited inventory of luxury flats.”
Besides, many people, who had been renting properties, are looking to move to posh areas,” he says.