Chandigarh realty booms under Himachal impact

Real estate in Chandigarh is gaining from the industry-friendly policy of the government of Himachal Pradesh. A residential plot of one kanal (500 square yards), which was registered for Rs 2 lakh two months ago, is now being registered for Rs 4 lakh by the Chandigarh Administration.

This leap in the value of properties has been attributed mainly to the demand created by company executives arriving in Chandigarh who have their units in Parwanoo, Baddi, and Barotiwala. They prefer to commute from Chandigarh because of its amenities.

Mangat Rai, a property consultant in Chandigarh, told Business Standard the prices of property had increased 60""90 per cent in the past six months, and in some upmarket areas they have doubled.

"Some companies ask for five to six houses in the same locality for their executives. This level of demand has jacked up prices and multinationals with deep pockets pay up without negotiation," Rai said.

Increase in demand from highly paid professionals, coupled with falling interest rates and the liberalisation of the Chandigarh land market because of the Apartment Act, has created an upswing in the business of property dealers.

Besides, the Chandigarh administration has been promoting the IT sector in a big way. Many internationally acclaimed firms like Infosys will set up office in the coming months, generating good employment. The real estate pundits anticipate a further surge in the demand once this happens.

Quark has set up its only office in India in Mohali. This also has contributed to the appreciation in the face value of property in Chandigarh.

"The mindset of people has also changed," says Tinku Shangari, a leading builder of Chandigarh. "Now they prefer to buy flats, rather than paying rent year after year," he added.

Dwindling returns on fixed deposits and the appreciation in the value of property have also motivated people to invest in commercial space. So the prices of commercial properties also have increased manfold.

There is a consensus among buyers and sellers that the biggest attraction of Chandigarh is the ambience and quality of life.

Those who have lived in Chandigarh face adjustment problems in any other city, customers say. So the investment in real estate in Chandigarh promises to go up.