Realty boom ends in Chandigarh towns

Chandigarh, May 18 | Updated: May 19 2006, 05:30am hrs
After a boom in real estate, Chandigarhs satellite towns are witnessing a sharp decline in property prices coupled with few transactions.

In Panchkula, prices have gone down by 25-30% in old sectors and 30- 40% in new sectors. A500 sq yard residential plot in Panchkula extension quoted at Rs 1.10 crore six months ago, is available for about Rs 60 to 70 lakh.

One reason for the decline in property prices in Panchkula could be the hike in collection rates for registration of deeds, said real estate agent Jatinder Singh Mehta. The hike is from Rs 9 lakh-Rs 36 lakh for a residential plots in Panckkulas new sectors.

The realty boom began in Zirakpur, near Chandigarh. For years, builders built multi-storey flats here but there were no buyers. But IT Parks coming up at Chandigarh and Mohali led to an overnight boom.

Then Derabassi, a subdivisional town on the Chandi garh-Ambala highway, witnessed the boom. Three major real estate players launched their mega multi-storeyed projects, setting the stage for an unprecedented increase in real estate prices.

Falling Rates
In Panchkula, prices have gone down 30- 40% in new sectors
Land registration rates have increased from Rs 9 lakh-Rs 36 lakh for residential plot in Panchkula
AS Saini, real estate dealersaid financers jacked up the prices and created an artificial demand. For how long you can jack up prices without support from genuine buyers

Mr Saini asked. The administration did not hold auction of residential plots in the last two years. Every year rates go up during the auction which fuel property prices.