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The realty market in Chandigarh is subdued even after the 25 basis points rate cut announced by the Reserve Bank of India last week.
Real estate entities in Chandigarh were expecting a boost in business after the Reserve Bank of India (RBI) announced its first rate cut last week, after almost 20 months.
Chandigarh tricity, which includes union territory of Chandigarh, and Mohali (Punjab) and Panchkula (Haryana) had been facing lackluster demand for housing and increasing inventories.
The proliferation of group housing societies in the suburbs of Chandigarh by the local builders created a glut in the market and slowdown in demand-effected the realty sector.
Anil Chopra, Chairman, CREDAI Punjab, said prices were at rock-bottom-level. "There has been a correction of 30 per cent to 40 per cent in the residential property in the tri-city in the past one year. Despite huge discounts, sales have decreased to 20 per cent of what it was three years back", he said.
"A 25 basis point rate cut is a drop in the ocean. We are hoping to get more such announcements by RBI to revive the sentiments," said Chopra.
According to Mangat Rai, the director and partner of Subhash Mangat and company, "Genuine buyer has always been there but the investors are missing. The demand for Budget housing has not been less-effected but a substantial dent in overall demand has been there."
The big players with the national presence have been able to sail through as they have a better marketing strength but the local builders are waiting for more rate cuts to boost the sales.
CORRECTION
Earlier version described Anil Chopra as the promoter of Sushma Build Tech. This changes Chopra's designation to Chairman CREDAI Punjab.
