Talking to FE about the upsurge in the townships in the periphery, Mardeep Shira, chairman Shivalik group said, "Large number of people are immigrating to the region because of factors like good educational facilities, rising job opportunities, better living standards etc. Also with coming up of international airport in Mohali is likely to give fillip to the area. Since supply has not kept pace with demand, more residential societies are coming up in the region."
Meanwhile, Manoj Mittal, partner AP Shresth Colonisers said, "There is a steep increase in the prices of real estate. People have an intrinsic desire to own an accommodation of their own. Earlier when they were unable to buy a house in Chandigarh, they moved to Panchkula and Mohali. Now even these places are beyond the pockets of middle class. As compared to that, flats in the periphery are priced lower and are within their reach."
According to market experts, over the last five years, there has been a growth of about 15-20% in the real estate sector with the average price for 1,725 square feet of covered area going as high as Rs 40 lakh. Another realtor Vipul Ranchal, MD, Skynet Builders shared, "Earlier the government policies were not conducive for private builders.
It was difficult to procure licences from Punjab Urban Planning and Development Authority. Since 2005, there is a change in government's policy, now district planning officer can approve a township in his district with a maximum area of 5 acre. This step has given the much needed boost to the townships."
On being asked about the future prospects of realty sector in the region he commented, "The real estate market is over priced and is in the need for correction. The prices are likely to stabilise in the future but it will remain a lucrative investment option as the price of the property gets doubled within five years."