Mohali Loosing its Shine as an Investment Destination
November 19, 2014 - Uncategorized
by Nitin Saxena
Mohali, the city,has come to symbolize development in Northern part of India all thanks to the sheen of its neighbor, Chandigarh. Mohali can be termed a rich city as job opportunities are abundant here, all thanks to a thriving IT sector. It is due to the job opportunities that initially brought people to the place, many brokers says due to efforts by the then Chief Minister Captain Amrinder Sigh also, but since the job market in Mohali was not fickle, hence, real estate developers saw it as an opportunity and offered deals at reasonable prices that caught the imagination of the investors.
Mohali has made huge strides in development in just about a decade or so. The connectivity with Mohali is good as roads are wide and Chandigarh is also near, but this city has no airport or a train station of its own and no direct connection to Delhi. The market is currently looking up to several projects that have been launched here keeping in mind its present stature and some of the notable ones are Aerocity, IT City or Knowledge Park, Kajouli Water Works and the Knowledge City.
Slow Down in Market- recent pessimism
Mohali is not immune to the overall slow down in real estate market, and its the average slowdown is more than what we witnessed in many cities of India even Delhi NCR also. The Housing Index released by National Housing Bank (NHB), in its latest release Index, has shown that the index for the quarter April to June 2014 has come down to 165 from 170 recorded in previous quarter.
I had discussions with property dealers( Mohali, Greater Mohali ( Landara ) and Chandigarh) and some officials in PUDA, as well as filed visit in some on going projects and their view are summarized below:
As per survey, there is no sale-purchase activity in Mohali; investors are coming only to sell their property, but not to buy, visited many brokers office like M/s Gillz property consultant office at Kharar–Landran, M/s Dashmesh Property, M/s Oberoi Enterprises, M/s Jeevan Property etc etc…..
There are several builders who sold their projects in financial year 2008-2009, but none has been able to complete till date; construction giant like Ansals, Unitech, Janta land, TDI, Pearl City, Wave City, MGF,etc etc are very much there; even some unknown(s) ran away with consumer money & FiR are lodgd against them by the local police..
Against the big builders like Unitech and MGF,local police has registered an FIR for covering canal and making a park on the canal, just to attract the investors. There is no road, no electricity, no sewer connection; builder like Unitech has not paid government fees to the authorities, but has taken full money from their investors in the name of development.
Many investors are NRI and some are Government servants and public sectors employees .
- The price of Unitech plot is Rs 17,000/ per sq yds
- The price of TDI plot is Rs 19,000/ per sq yds
- The price of Pear City plot is Rs 20,000/ per sq yds
- The price of JLPL plot is Rs 38,000/ per sq yds
- The price of MGF plot is Rs 21,000/ per sq yds
- The price of Ansal plot is Rs 20,000/ per sq yds
- The price of Wave City plot is Rs 36,000/ per sq yds
At these prices also, there are not much interest among buyers in Greater Mohali market; investors / buyers are only approaching MAHADA / PUDA for safe and better investment in property.
But still I will say it is. Not so bad, may be after change of Government it may improve the current situation of a real estate market of Mohali.
Recently, some positives news has stated pouring and it is felt that property market in the tricity and its periphery is coming back to life with fresh transactions and possessions being handed over in some of the existing projects.
Future – Looking Good
The real estate market scenario for both residential and commercial properties in Mohali and Greater Mohali is positive. The market is bullish on Mohali, with more and more people are waiting for investing in the city as Chandigarh is facing a space crunch and is mostly driven by NRIs. The prominent localities of Mohali and Greater Mohali with high builder and investor activities are Sector 127, 125, 113, 106, 97 Zikarpur and Kharar-Landran Road but still it is better to say that the entire city may witness intense activities in new future as land is becoming dearer and investors are becoming more inclined to come here.
I think Mohali real estate will be a favored sector for investments from international as well as private investors at a present price. In the upcoming years, the residential as well as commercial segments of the city is set for major growth.Excise duty reduction on cement and steel will lower project costs and expansion of the interest subsidy on loans will boost developers' interest in this segment. Moreover, tax measures such as increasing the limit of interest deduction on home loans will provide necessary motivation to consumers to increase buying activity and revive demand in the value and affordable segment. Further, demand for space from sectors such as education and healthcare has opened up ample opportunities in the real estate sector.