The mall bug bites Jalandhar too

drives to this Punjabi city and finds that it's getting a makeover. Plenty of real-estate development is underway.

My cab driver in Jalandhar pointed out a huge mansion and proudly told me, "This is where Hansraj Hans stays." Hansraj who? "The famous folk singer," he replied, astonished that I didn't know. But the mansion (behind the Police Lines area) was just a reflection of the changing real estate picture of the city.

A large number of mansions and upcoming townships fuelled with a lot of commercial development, what with an increasing number of malls opening in the city, are rapidly changing the skyline of this city. And while going to Jalandhar via Ludhiana, I couldn't help but notice the hectic pace of construction that was taking place in the city.

For one, areas like Adarsh Nagar, Model Town, Nakodar Road, GTB Nagar and Defence Colony are getting a quick makeover with a lot of mall construction taking place. However, the narrow lanes of area such as Mahiran Gate and Basti Number Nau still manage to retain the old city charm.

Compared to Amritsar and Ludhiana, the real estate growth in Jalandhar has been fairly slow. But that's changing now. Unlike Ludhiana, which is seeing a mix of commercial as well as residential activities, in Jalandhar it is commercial development that's catching up fast.

DLF, for instance, is building a mall called Galleria on Nakdoar Road which spreads across 1.6 lakh sq ft. But the end of 2008, Jalandhar will, in all probability, have three exclusive malls in operation including one built by Collage Group.

Says Amit Khaneja, vice president, Collage Group, "The market in Jalandhar offers a greater scope for retailers to make a massive presence for themselves."

While Collage is building a mall on GT Road, covering a space of about 4.5 million sq ft, Star City Builders are also building a multiplex-cum-mall on Amritsar Road.

Unlike other cities, where malls are mushrooming all over but attract more footfalls than actual sales, realtors are confident that the trend would be reversed in Jalandhar.

"People in Jalandhar spend a lot of money and with foreign money coming in big time, we expect more serious buyers here as compared to other cities," says Khaneja. More malls are being planned in Jalandhar and about 8-10 malls are being constructed in the city now.

And though these are positive signs for the city, Maninder Singh Bawa, a local real estate developer, warns, "The problem with Punjab as a state is that major cities like Ludhiana and Amritsar are close to Jalandhar and after some years there might not be too much land available on the outskirts."

What Bawa is saying is that land scarcity for real estate development might just be a problem for real estate developers in the future.

Luckily, for now, Khambra (also on the outskirts of Jalandhar), is seeing real estate development especially after Star City Builders decided to build a state-of-the-art township equipped with modern facilities there.

But the real demand for residential colonies is both investment- and residential-driven. The prices in areas such as Model Town are in the Rs 5,000 per sq ft bracket. Big players like DLF and Ansals have entered the market and are planning townships in the city as well. Commercial development in Jalandhar is commanding high rental values and these could vary from Rs 150 per sq ft, per month.

Not many apartments are being constructed in the Jalandhar but there are a lot of integrated townships coming up in the city. A majority of local players believe that NRI money is driving the growth in the city.

Harmeet Singh Dhillon, another local real estate agent, says, "The biggest factor fuelling real estate development is the large contribution of NRIs in all of Punjab."

As compared to metros, prices in Jalandhar still look very tempting. The price for a three-bedroom, independent bungalow, for instance, will fall in the price range of Rs 25 lakh.

Nitishree Builders are currently building a massive township called Shorya Greens near the cantonment area of Jalandhar. The township is expected to have independent bungalows, plots and villas.

The project basically aims to cater to the demanding residential requirements of NRIs and is expected to be completed by 2009. For now, Jalandhar is offering large chunks of land to private developers for introducing more and more townships.

With money flowing in from foreign shores, palatial houses in Adarsh Nagar area reflect the spending power of the residents. Landscaped gardens, mansions lined by boundary walls, sprawling gardens and driveways complete with swanky SUVs and Merc convertibles are not too unusual to spot.

The latest trend here is to own a farmhouse. A trip to Kapurthala road affirms this, especially as experts suggest that 100 small and big farmhouses have come up during the past year-and-a-half in and around the city.

It is the latest symbol to flaunt and usually the area of farmhouses varies between one to five acres. And since land prices are moving northwards, people are also building farmhouses near Hoshiarpur.

A majority of owners here are NRIs who have established their farmhouses with an area ranging between 15 and 30 acres. Even Hansraj Hans owns a farmhouse here, I'm told. For now, everyone investing in Jalandhar is humming a real estate tune.