Real Estate: Chandigarh Rising

Chandigarh Real Estate: The Nation’s Next Big Metro

Recently, the Punjab Government instituted peripheral regulation policy changes that are bound to impact land and property prices in a big way. All of a sudden, thousands of acres of land it was illegal to construct on, is now a legitimate residential site and no one will be penalized for building on it. Soon, there will be rush of developers / builders rushing in to buy, as property and real estate dealers watch and speculate a 15 – 25% rise in land prices.

And, as a result of the new policy, Chat village residential land holdings which stood at 417 bighas have now swelled to 667 bighas. According to the village Sarpanch-cum-real estate dealer, with more land available for legal residential construction, it is certain there will be a 25% hike in land prices in the area. The positive effects of this policy will also filter down to Nayagaon, Kansal, Mullanpur on Chandigarh-Siswan road (Kharar sub-division), Derabassi sub-division villages, Daonmajra, Balongi, and Desumajra along Mohali-Kharar road where illegal construction is rampant. Owners of illegal construction can breathe easy as the spectre of razed homes fades into the distance.

Most colonies in and around Kharar developed by private builders are not expected to witness a rising price swing as they are all legal. But, land on and in the vicinity of Zirakpur – Patiala highway is set to jump from Rs. 32 – 35 lakhs per acre to Rs. 45 – 55 lakhs. Already, Pir Pushalla and Gazipur villages adjacent to Panchkula have seen a jump 10 – 15% increase in land prices, while agricultural land has gone up from Rs. 2.55-crore to Rs. 2.85 crore per acre.

The rising demand for housing has often seen Tri-city peripheries experience a real estate boom that defies logic. For example, a one-acre farmhouse that was worth Rs. 4-crore is fetching Rs. 5-crores now, and there are more buyers than sellers. All prospective buyers tracking residential land are advised to head towards Kansal rather than Nayagaon since land chunks here are larger, and it lies in close proximity to the Civil Secretariat, a further value add.

As for Mohali, clearance of the new periphery regulation policy means Chandigarh’s satellite town will, in future, have its own mini satellites. With Quark, NIPER and PCA stadium already in the city, Mohali is set to carve its own separate identity from Chandigarh. Increased land availability in Mohali will attract more people, and entry of MNCs, IT giants, international industrial players will result in residential and commercial establishments able to compete on a global scale.

Suddenly, tri-city peripheral real estate is competing with the inner cities! As more development takes place, land is only going to get more expensive. Wherever, you buy real estate, it is only a matter of time before the demand for housing escalates real estate prices!