Real estate in Punjab works differently than in other major cities of the country. The perception about lifestyle and homes changed when national developers started entering the markets here. Punjab realty saw these developers buying large land parcels and developing projects that completely changed the perception of abodes for the people of the state.
These developers promised features and world-class amenities; and they easily penetrated the market and people steadily shifted to a new trend of apartments & penthouses from an old culture of living in Kothis, bungalows & homes in colonies. Thus, the market became vibrant with the emergence of options such as group housing, sprawling shopping complexes & malls, integrated townships, office complexes, entertainment hubs, IT parks, etc.
The factor working in favor of Punjab real estate is the improvement in RERA compliance in the state. Focus on RERA compliance is improving in the state with 942 projects registered with RERA till October 15, 2020, out of which 112 are from Ludhiana and 552 from the Mohali district.
In a recent meeting, the Punjab government has decided on the development of industrial hubs in Rajpura and Ludhiana. The Greater Mohali Area Development Authority (GMADA) has decided to set up an industrial estate in Mohali and also allowed affordable housing colonies in 25 acres and above, and other residential colonies in 50 acres or above, from the existing requirement of a minimum of 100 acres. The decisions taken at the virtual meeting will boost industrial investment in the state and also generate employment.
The slew of decisions includes allowing industry in agricultural and mixed-use areas. The decisions, which were announced after a virtual meeting of the development authorities and Punjab Regional and Town Planning and Development Board (PRTPD), was headed by Chief Minister Capt Amarinder Singh and will be finalized after the government issues a public notice.
The state government’s efforts have been paying off, leading to swift growth of the real estate sector also. In 2005, Punjab had just two malls with a total gross leasable area of 2,70,000 sq. ft. and since then things have changed dramatically. Today, the state is standing on the threshold of a retail boom, and in the residential segment also, the state is performing satisfactorily with world-class housing projects doting the skylines of various cities in the state.
In fact, the state is also promoting concept of green buildings. Recently, the Chief Minister approved additional free of charge FAR of 5% for bronze and silver, 7.5% for gold and 10% for platinum certification by Griha and Leeds. Major real estate markets in Punjab include Zirakpur, Mohali, Ludhiana, Patiala, Jalandhar and Amritsar.
One of the promising regions is Tricity, which is experiencing a high as is evident from the numerous upcoming mega and small projects that are being developed in and around the city. A major factor behind this phenomenon is the establishment of numerous MNCs and top-notch universities that are heading to this region.
Besides this, the other factors that have been instrumental in setting the pace for the real estate boom in the region are fall in interest rates and the easy availability of home loans, supplemented by the willingness of the banks to lend money for housing, fiscal sops and the growth of nucleus families.
Mohali is the next IT destination of the region as it has the necessary input required by the IT-ITES companies, i.e., qualified people at considerable cost. A lot of NRIs are investing in the area, providing further impetus to the growing demand.
This demand also owes a lot to shifting demographics, the ever-increasing aspirations of the upper-middle class as well as the major initiatives by the Government in recent times. Mohali, including the peripheral towns of Zirakpur, Kharar and New Chandigarh, has emerged as the Tricity’s development hub with around 500 residential and commercial projects in the past decade.
Ready-to-move-in inventory in the Chandigarh region is around 2.5 lakh units, including flats, plots, independent floors, and villas, with 1.5 lakh units in areas such as Zirakpur, Dera Bassi, New Mullanpur, Mohali, Kharar and Kurali. These RTM properties offer a massive scope to the market as people in the post-pandemic scenario are showing interest in RTM properties or the ones that are going to be delivered within the next 24 months.
Ludhiana has also emerged as one of the strongest contenders as it is well connected to other parts of the country. A major industrial center of North India, it has seen growing investment from the manufacturing sector leading to job generation. Punjab’s and North India’s largest city (after Delhi), Ludhiana has many industries in the city, such as the hosiery and textile industry, sewing machines, and the apparel industry.
With high disposable income and home to many NRIs, the city is witnessing growth in real estate investment. The city is changing as hotels and malls are being built here, which will have an impact on the real estate prices here. Being close to Delhi, the real estate value here is likely to change soon, and hence it is the right time to invest in real estate here. The last four years’ data of Ludhiana district with the Revenue Department shows the registration of 49,795 properties in 2016 (from April 2016 to September 2016), 46,500 in 2017, 47,789 properties in 2018, and 52,363 properties in 2019.
The property market in all the regions has been witnessing unprecedented growth. The only condition that buyers and investors have is quality construction and modern facilities, which is being fulfilled by reputed developers. The time is right to buy, as prices are likely to increase soon due to many macro-economic factors.