The bomb blast at a Ludhiana theatre on Sunday night may affect flow of investment to Punjab and could trigger a fall in real estate prices say prospective investors builders, colonizers and property dealers.
Mohali, Ludhiana, Jalandhar, Phagwara, Kapurthala, Hoshiarpur, Amritisar and Ropar may be worst hit as most of the investment was coming to these cities. And also the majority of mega housing projects and shopping malls were slated to be constructed in these towns.
Subhash Sharma, a real estate agent said “The fears were already there because the sellers were expecting unreasonable prices and the incident at Ludhina will mean a burst in the bubble.”Sharma said the incident took place when Sensex had crossed 18,000 mark and was likely to fuel real estate market too as people making money from the capital market invest in several property.
If mortgage interest rates increase, as some economists expects the real estate price could decline further by as much as 15-30% and investors may flee the market. “The rise in interest means borrowers can’t afford to make the same mortgage payments. Strong indications prevail that the property bubble is going to burst soon”, said Rajesh Oberoi representing Oberoi and company.
Atul Sood, an Advocate in Corporate and Company Law said that already some of his clients who had plans to invest in Punjab had told him that they would like to give a second thought to it as Baddi in Himachal Pradesh offers a tax holiday and other concessions and a peaceful atmosphere.