With slowdown pressure building up, property prices crash in city periphery

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Many builders are offering gold coins, ACs, LED TV sets and even cars to woo buyers Many builders are offering gold coins, ACs, LED TV sets and even cars to woo buyers
SummaryFor the first time in the past 18 months, the real estate market in Chandigarh’s periphery is showing signs of a downturn.

For the first time in the past 18 months, the real estate market in Chandigarh’s periphery is showing signs of a downturn. Having stuck to their prices in the hope of a revival in the realty market, property investors and dealers are now buckling under pressure and have slashed their prices. In some cases, the reduction is upto 30 per cent.

While there seems to be no hope for a boom for the investor who had picked up large quantities of property during the upswing, the time to buy is now for the end user who waited for the prices to come down.

“The rates crashed because the investor’s market did not pick up after the Assembly elections as was being hoped. The majority of the builders have not been impacted much because they had launched their projects more than a year ago and their entire lot was picked up during soft launches. Investors with deep pockets are hanging on to the lot but others are selling out at lower rates,” says J S Kochar, managing director, KBKinfra.in, a property web portal.

In Mullanpur, currently the hot spot for investment, a spacious apartment floor is available for anything between Rs 27 lakh and Rs 33 lakh. In fact, here the rates for a property of this kind in resale is lower than booking a fresh property from a builder or a project promoter. And yet there are not many buyers.

“The glut of projects has made available over 75,000 flats in the periphery in various stages of launch and construction, most of which have been sold out by the builders but held on to by investors. The supply is simply not matching up to the demand of the end user,” adds Amit Joshi, president of the Shimla Hills Cooperative Housing Society.

On the Kharar-Landran road, two- or three-bedroom flats or independent floors in under-construction projects are available for Rs 25-35 lakh. The cost of plots too has come down — from Rs 18,500-20,000 per square yard to Rs 14,500-16,000 per square yard, and in some projects it is even lesser. On the Kharar-Kurali road, a builder is offering a two-bedroom flat for Rs 14 lakh. Similarly, on the Zirakpur-Derabassi Highway, flats are being sold for less than Rs 25 lakh.

Since many projects have failed to deliver the product on time, there is a trust deficit in new launches. “The buyer would rather spend on a

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