Property prices shooting up in Amritsar

There's been an unprecedented property boom in Amritsar for two reasons: The Punjab government's decision to set up an SEZ in about 1,000 acres (one acre is 4,840 square yards), and the anticipation that in the near future trade through the Wagah border will flourish, particularly after the start of the bus service between Amritsar and Lahore.

That real estate is booming is clearly evident from the recent auction of the 10,000 square yard plot on Mall Road at an unprecedented price of Rs 78,500 per square yard. The municipal corporation has earned Rs 78.5 crore from the auction.

With this all-time high transaction, real estate experts are expecting a further increase in prices of properties not just commercial but also residential.

Punjab Chief Minister Amarinder Singh recently said steep prices had prevented the government from procuring land for the proposed SEZ, announced by Prime Minister Manmohan Singh. Property dealers say the entry of real estate developers from Delhi like Advance India Projects Ltd and financiers had fuelled the real estate markets.

Land prices have appreciated by 50-60 per cent in "civil areas" in the past two years while on the outskirts they have almost doubled. In posh localities like Ranjit Avenue, Medical Enclave, Green Avenue, and Rose Avenue, prices have risen to Rs 25,000 per square yard, while in these areas the commercial rates for property are Rs 40,000-80,000 per square yard.

On Main GT Road, land prices have gone up from Rs 40 lakh per acre to Rs 1.5 crore per acre in a year. In other residential areas also, the increase has been from Rs 10,000 per square yard to Rs 18,000 per square yard, also in a year.

In commercial areas like Lawrence Road, Mall Road and Court Road, prices have increased to over Rs 50,000 per square yard.

With talks on opening the Wagah land route for trade with Pakistan gaining momentum, land prices on the 28-km stretch between Amritsar and Wagah varied from Rs 10 lakh to Rs 15 lakh per acre around six months ago, but are now around Rs 50 lakh per acre.

According to realty sources, around 2,500 acres of land is under development in Amritsar, of which 650 acres of land is being developed by the Punjab Urban Development Authority (PUDA), 394 acres by the Amritsar Improvement Trust, and the rest by private developers and builders.

A major development is taking place along the National Highway no.1. Property dealers say the proposed upgrade of NH I, connecting Amritsar with Jalandhar, will give a major boost to the ongoing property boom.

Talking to Business Standard, the director, Heritage City Developers and Builders Private Ltd, Kapil Mehra, said, "Urbanisation is one of the prominent factors in fuelling property prices.

With Amritsar, equipped with an international airport, emerging as a tourist hub, the real estate scenario looks impressive."