Land prices in Punjab fall

The Punjab government's sudden decision to withdraw the change of land-use of mega housing projects and the litigation that followed are adversely affecting plots being sold by small, medium and mega real estate builders in the district. This is causing a fall in land prices to the tune of 15-20 per cent.

The decision of the government was announced on April 2, which makes the Rs 1,500 crore investment in realty in the state uncertain.

Ashish Sehgal, General Manager, Marketing, Heritage Group, said not only sale of plots but prices of land have also fallen following the decision of the state government.

The local builders are of the view that according to hints they received from the government, several rules regarding real estate projects, small and big, would be changed. The government may tinker with the proportion of saleable and non-saleable land.

According to the existent norms in the small projects 55 per cent is for sale while 45 per cent non-saleable while in mega projects proportion of saleable and non-saleable land remains 50 per cent. Non-saleable land is mandatory to be used for roads and parks in a real estate project.

Following withdrawal of change of land-use of mega housing projects, three local residential projects came under its ambit. They are Global City, promoted by Tewari Gangahar Infrastructure, Satish Estates, promoted by Satish Aggarwal and Met Calf.

According to real estate developers, they have put on hold on new projects and are waiting for the situation to become clear.

Uncertainty proved a deterrent to customers to drop their decision of buying plots in the residential housing projects dotting by-passes of the city with eye-catching gates.