Ludhiana realtors suffer as airport deals crash

From boom to doom. This has been the fate of nearly 1,000 investors of Punjab, mainly Ludhiana, who have suffered huge losses after investing in real estate in Laddowal and Halwara with hopes of making it big if a proposed international airport was built there.

However, two fairly good chances that the realtors in Ludhiana had to encash upon, proved to be short-lived.

Now, they expect a property boom in Sahnewal, the new site for the airport. However, learning from past experiences, the real estate dealers as well as land owners in Sahnewal are adopting a wait and watch policy.

The owners have not put up the land for sale, choosing to sell it at higher profits in case the airport finally comes up.

Earlier, the state government had proposed another international airport at Ladhowal, nearly 10 km from Ludhiana. But again the proposal was cancelled, as the Union aviation ministry raised objections over the feasibility.

Ladhowal is a low-lying area with threat of floods from Sutlej. However, by that time a number of people had made huge investments the land in the area with robust expectations.

At Halwara, the international airport was to be set up as an additional civil terminal of the Halwara Air Force Base.

Although at several places in the country, the civil and Air Force airports are close by, the Union defence minister raised certain objections about Halwara.

With the Shiromani Akali Dal-BJP government proposing Sahnewal as the new site, the real estate deals in Halwara have fallen through. A number of property dealers and investors said they were on the brink of distress sale.

"When the Halwara airport plan was going in full swing, there were no sellers. Now, there are no buyers. People had bought land in and around Halwara when the news of the airport plan first trickled in. The prices soared so high that people chose to wait to sell for bigger profits. Now, the same sellers are waiting for buyers," said a property dealer.

Another property dealer at Halwara said investors were paying for investing their money without complete knowledge of the deal.

"The price per acre of land was Rs 9 lakh before the airport plan. It rose to between Rs 15 to Rs 20 lakh last year. With reports that prime minister Manmohan Singh would lay the foundation stone of the airport, the prices went up to Rs 50 to Rs 90 lakh. Land near the proposed site went beyond Rs 1 crore per acre."

Now, the same sellers are willing to sell it at half the cost only. "All their hopes that the SAD-BJP government may revive the Halwara Airport plan after coming to power dashed to the ground with the announcement of Sahnewal as the new site.''