RP Malhotra from Dee Ess Estates, Zirakpur (Punjab) said, The realty sector in North has seen a boom this year with the end users coming to the fore. The speculators and the short term investors remained absent from the market. The residential prices have moved up by 45-50% and there has been a rise of 55-75% in plots and independent property. The prices were also pushed up in Chandigarh due to various policy changes including increased Floor Area Ratio (FAR) which is now 2 for a 10 marla plot where earlier it was 1.5. The ground coverage has also increased from 50% to 70%.
He added, Punjab has been proactive in realty sector with a shot up supply and hence prices surged. Where a two bedroom flat was available for Rs 2,000-2,200 per sq ft last year, now it is available for over Rs 3,000 per sq ft.
The industrial town of Baddi in Himachal Pradesh also saw an upward trend in the prices. Ruchit Mahajan, marketing manager with the Hill View Group, Baddi said, There has been around 10% increase in the prices of apartments in this region and about 7% in rentals on an average. Two bedroom apartment is now available for Rs 1,500-1,800 per sq ft, up from Rs 1,200-1,400 per sq ft last year. The rentals for two bedroom apartment have also gone up to Rs 8,500 per month from around Rs 7,000 per month. The developers have been focusing on budget housing here and we expect that next year the prices will further rise by 10-12%.
Making observation about the market Manoj Kashyap from Jones Lang LeSalle Chandigarh commented, Overall the market has been positive in the region. The pricing in the residential sector became hard for the consumers. Though few towns like Ludhiana, Chandigarh, Amritsar fared well in terms of new projects and growth but overall there was no breakthrough for any developer as some of them were still in the recovery mode. We also saw the developers making a shift towards the luxury housing segment unlike last year where the focus was on affordable housing projects,.