Should You Invest in Punjab Real Estate

Published: 01st September 2007
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Where else can we get a more healthy real estate scenario than the state of Punjab, which enjoys one of the highest per capita incomes in India for the past several years...?



Not just the state leads in agricultural and business activities in the country it also holds distinction of having a massive NRI population mainly residing in the developed countries of Canada, England and America.



Real estate is definitely the ultimate beneficiary of all these factors working in favor of Punjab's economy, at large.



So what is happening in the residential property segment in Punjab? Should you invest there or not? Let's take a look on the ongoing property trends in the major cities of Punjab and decide thereafter.



Real Estate Chandigarh

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Owing to the decent demand levels and low availability, the residential properties from sector 4 to 10 have reached the staggering levels of Rs 5,000 to Rs 7,750 psft.



Similar is the case with plots as well. Residential plots at Zirakpur are treading in the range between Rs 2,200 and Rs 2,700 psft.



Keeping with the trends, the home rentals in Chandigarh have also picked up across the city, however rental values for luxury apartments in Chandigarh have remained stable in the meantime.



Ludhiana



Unlike the other cities of Punjab, rentals for housing property in Ludhiana, including flats and apartments have not increased much in the past couple of years. Reason: the construction boom resulting in enough availability of rental property.



Monthly rent at areas of Vikas Nagar, Gurdev Nagar, Dugri, and Haibowal are stable between Rs 4,200 and Rs 7,800 with minuscule hikes.



As for the capital prices, plots in the prime residential locations of Saracha Nagar, Gurdev Nagar and Civil Lines are available for Rs 2,200-Rs 3,200 psft. Apartments in the newly-constructed multi-storey buildings are offered in price between Rs 1,400 and Rs 2,000 psft.

Jalandhar

Prices of residential property in Jalandhar , especially plots have doubled in the past 18-36 months. Although the industry experts assert that capital prices between Rs 1,500 and Rs 4,500 psft for residential houses and apartments in Jalandhar in major locations like Ludhiana Road and central part of the city are quite reasonable vis-à-vis the present scenario.

As per the estimates, the prices are likely to go up by more than 150 per cent in the next 6-8 months.

Overall the real estate market of Jalandhar is set to sustain the on-going positive trends. It's great time ahead for those looking for buying property in Jalandhar as an investment option.

Amritsar



Property in Amritsar has been under a temporary setback after a spell of Sikh 'Dera Saccha Sauda' conflicts. As per the reports, the land prices have slid by 5-15 per cent, owing to the disturbances.



Take Ajnala Road, for instance, where residential plot rates have come down from Rs 20,000 per sq. yard to Rs 17,000 per sq. yard.



However, capital prices and home rents of apartments and independent houses in areas near sacred Golden Temple and Durgiana Temple remain unaffected. Meanwhile, no big real estate deals are taking place in the city and perhaps the investors can take advantage of the reduced prices.



Mid term Outlook



As far as investing in real estate in Punjab is concerned, the environment is quite conducive at present. Residents and NRIs, who have an investment horizon of +3 years, can pump investments in the suitable properties of Punjab cities and expect fair degrees of returns over a period of time.



About the Author:



The author is an associated editor to the website http://www.indianground.com Indianground is dedicated to explaining all your related queries on real estate India and Property in India, with the latest news updates. Your feedback and comments will be highly appreciated at "krmangalam@gmail.com".


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