Realty sector on a roll in Chandigarh
Property transactions increase by 15% in first five months of current financial year in comparison to last year.
The real estate sector that witnessed a slowdown in financial 2016-17 and 2017-18 is on an upswing this financial year.
There was a drop of 37% in property sale deed registrations (both residential and commercial) from 2,884 in 2016-17 to 1,816 in 2017-18. But, in the first five months of the current financial year, transactions increased from last year’s 667 to 783, an increase of 15%.
“In November 2016, the realty sector tanked due to demonetisation. Even though home prices dipped, transactions fell sharply because of the paucity of liquidity. Now, the genuine home buyer is active again,” said Kamal Gupta, president, property consultants association Chandigarh.
In April 2016-17, a total of 348 properties were sold in the city, and the number fell to 122 in April 2017-18.
In a turnaround, property registrations increased in April this year by 51% in comparison to April last year. The pattern is similar for May, June, and August as well.
Most expensive residential properties are in northern sectors. Since April, three properties in Sector 9 were registered at more than Rs 10 crore, two in Sector 8 and one in Sector 27.
A 2,000 sq yard (4 kanal) house in Sector 9 was the most expensive with registration price of Rs 16.70 crore in June. Market price of the said property, as quoted by different realty consultants, on an average, is around Rs 24 crore.
A 997 sq yard (around 2 kanal) house in Sector 8 was sold for Rs 15 crore in April as per the price quoted in its sale deed. In areas beyond the northern sectors, only one residential property in Sector 27 was registered at more than Rs 10 crore. A 1,333 sq yard house was registered for Rs 11.11 crore.
Central sectors most sought-after
While the northern sectors have most expensive houses, central sectors (sectors 14 to 37) top in number of transactions. Since April, more than half (51%) of the property registrations (excluding rural areas) took place in the central sectors. Only 33 sale deeds were registered in northern sectors, but, 252 properties exchanged hands in sectors 14 to 37. Sanjiv Sharma, a Chandigarh-based realtor, said, “Availability and variety in terms of size in central sectors is better than northern sectors. Prices are also relatively low in central sectors.”
Smaller plots more in demand
Smaller properties, with relatively low price tags, were most sought-after among the residential properties. In the first five months of the current financial year, nearly 74% of total transactions took place for plots smaller than 150 sq yards (this includes rural area also). There were 326 sale deeds registered for houses smaller than 150 sq yards, while 18 properties were registered having size of 500 sq yards to 1,000 sq yards, and only 9 properties were registered for plots between 1,000 sq yards to 3,000 sq yards. Rajesh Walia, ex-president Chandigarh Property Dealer Association, said, “Affordability and availability are major factors for such a trend.”
First Published: Sep 11, 2018 12:21:52