Realty prices shoot through the roof in Punjab

Written by Swarleen Kaur | Chandigarh, Aug 20 | Updated: Aug 21 2008, 05:30am hrs
Real estate prices are upswing in agrarian state of Punjab and experts have observed that the prices of prime locations have shot up by 40-55% in the last two years. The cash-strapped state, which desperately needs to push the growth of industrialisation is facing shortage of land, which has pushed the prices upwards.

The realty can be gauged from a fact that recently the state government acquired 300 acres for the proposed Mohali international airport for which the government paid compensation of Rs 1.5 crore per acre to farmers whose land was possessed. This was the highest ever compensation paid for acquisition by the state government to farmers which has certainly set a benchmark.

Lately Greater Mohali Area Development Authority (GMADA), a one kanal seven marla plot in sector 69 fetched a whopping Rs 3.11 crore against its reserve price of Rs 2.3 crore. The reason this plot went for such high prices could be that Mohali is all set to develop a state-of-the-art town centre in Sector 62, which is near Sector 69. Real estate experts have projected that with the upcoming international airport, Knowledge City and the rapid development in Mohali will keep the reality prices upward only.

Apart from this, the much-talked Trident group's land acquisition deal was settled only when the group paid 102 cheques of worth Rs 8 crore of the enhanced 70 % price to the original cost to the farmers of the three villages of Sanghera, Dhaula and Fatehgarh Channa in Barnala. It may be recalled the group had acquired 376 acres for expansion plans.

Property prices in Mohali, Jalandhar, Bathinda, Amritsar, Ludhiana are scaling new heights. We have been fetching more price than the reserved cost from our previous auctions. A maximum price has been fetched from Ludhiana as it is an industrial belt. Now we have kept a reserve price of Rs 165 crore for the forthcoming auction of a 5 acre site scheduled to be held on August 26 in Amritsar, chief administrator, Punjab Urban Development Authority (PUDA), Som Parkash told FE.

Punjab has basically a fertile land and in the previous past various examples have been set where the land has been sold at exorbitant prices, said president of Punjab Builders and Coloiniser Association, Kulwant Singh. Farmers always try to cash in on opportunities and sell land at a very high price. Since last year, land prices for residential purposes have shot up by 20-30% even in villages and in peripheral areas. Even the prices of land for industrial use have witnessed the increase of 15-20%. Though there has been a stagnancy in the real estate sector in recent time but it has failed to bring down the cost of land, said Kulwant Singh.