I was always of the opinion that real estate in Chandigarh was immensely overpriced as all the ratios went through the roof when one considered Chandigarh properties.

E.g. a 2 Bedroom flat in some place in Pune would cost Rs 30-35 Lakh but would fetch monthly rent of Rs 10,000 giving a monthly rent to property price ratio of 300 - 350. However in Chandigarh a property giving a rent of 10,000 may cost over 70 Lakh or more which is a ratio of 700. This clearly indicated a highly over prices real estate market. However to my surprise it still kept on going up for quite sometime.

However now it seems that the Chandigarh bubble is finally deflating.
The Tribune, Chandigarh, India - Chandigarh Stories

I personally expect it to go down much more in coming years.
What do you guys think?
Read more
Reply
12 Replies
Sort by :Filter by :
  • Yes. it is highly overpriced. And it is bound to come down specifically in the city area (Chandigarh, Mohali & Panchkukla). This article is about property in main city area.

    But even then a middle class family man like me would not be able to afford as far as city area is concerned. Correction of 5%-10% in Rs. 2 crore house in chandigarh would not make me affordable. I would have to look outskirt area, even then we can not expect more than 5%-10%..

    The question is how would it effect a middle class person ? For him, it is always better to buy as early as possible. What will he do once he misses the bus.
    CommentQuote
  • Originally Posted by Eshtyle_Raja
    Yes. it is highly overpriced. And it is bound to come down specifically in the city area (Chandigarh, Mohali & Panchkukla). This article is about property in main city area.

    But even then a middle class family man like me would not be able to afford as far as city area is concerned. Correction of 5%-10% in Rs. 2 crore house in chandigarh would not make me affordable. I would have to look outskirt area, even then we can not expect more than 5%-10%..

    The question is how would it effect a middle class person ? For him, it is always better to buy as early as possible. What will he do once he misses the bus.


    I think this is just the beginning. I would expect overall correction to be around 25 - 30 % over 2 - 3 years and then prices being stagnant for another few years. It may not make it affordable for a common man but prices going down in Chandigarh would mean that prices would go down in surrounding areas as well. So it would make the surrounding areas affordable. Core Chandigarh would never become affordable for a common man I think.
    CommentQuote
  • Originally Posted by AnkurPune
    I think this is just the beginning. I would expect overall correction to be around 25 - 30 % over 2 - 3 years and then prices being stagnant for another few years. It may not make it affordable for a common man but prices going down in Chandigarh would mean that prices would go down in surrounding areas as well. So it would make the surrounding areas affordable. Core Chandigarh would never become affordable for a common man I think.


    25-30% correction in real estate is dream in India. I hope it happens, I will have another plot. ha ha.. I just bought one few days back at market price. :bab (22):
    CommentQuote
  • Prices will not go down in outskirt and upcoming areas. As the city areas remain out of reach of the common middle and even upper middle class, they don't have any option but to look for surrounding areas. There will always be demand in the outer areas and the prices will keep on rising.

    There are many who are looking for first home/dream home and can afford only such areas (even if they have well paying jobs).

    The city outskirts will witness more of apartments and flat culture which is kind of alien to Tricity residents as of now. Let us see how things go.
    CommentQuote
  • Originally Posted by Eshtyle_Raja
    25-30% correction in real estate is dream in India. I hope it happens, I will have another plot. ha ha.. I just bought one few days back at market price. :bab (22):



    National Housing Bank

    If you look at Jaipur, there has been a reduction of about 33% in property value as compared to its price in 2007. E.g. On average 10 Lakh flat purchased in 2007 is now worth 6.7 Lakh only.
    Similarly in Bangalore there has been a 12 % reduction compared to 2007.

    I think this will catch up with other cities as well.
    CommentQuote
  • Originally Posted by chdguy
    Prices will not go down in outskirt and upcoming areas. As the city areas remain out of reach of the common middle and even upper middle class, they don't have any option but to look for surrounding areas. There will always be demand in the outer areas and the prices will keep on rising.

    There are many who are looking for first home/dream home and can afford only such areas (even if they have well paying jobs).

    The city outskirts will witness more of apartments and flat culture which is kind of alien to Tricity residents as of now. Let us see how things go.


    Hi Chdguy,
    In my opinion prices will go down in outskirts as well. If you go to Zirakur VIP Road etc., you can see thousands of flats ready with very few people staying there. In addition lot of projects are going to give possession in 2012 / 13. I think there is going to be a massive oversupply in surrounding areas very soon and prices will have to go down because of that.

    I don't think it can happen that prices go down in Chandigarh and go up in Zirakpur. Overall both of them should either go up or down.
    CommentQuote
  • Originally Posted by AnkurPune
    Hi Chdguy,
    In my opinion prices will go down in outskirts as well. If you go to Zirakur VIP Road etc., you can see thousands of flats ready with very few people staying there. In addition lot of projects are going to give possession in 2012 / 13. I think there is going to be a massive oversupply in surrounding areas very soon and prices will have to go down because of that.

    I don't think it can happen that prices go down in Chandigarh and go up in Zirakpur. Overall both of them should either go up or down.


    That is the reason I didnt go for flat. There is already oversupply. But I am not worried as far as plots are concerned. The moment price of plots comes down, it would be bought over instantly. If not by enduser, then by investors/dealers. Also as chdguy has said, no effective reduction expected in surrounding area's price.

    Reason :- Number of aspirants within the city would always lesser than aspirant around the city. I mean people like me are in big numbers who can only afford outskirt... If reduction happens, it would be less relatively to what happens within city. This is true that flats are already in oversupply. But again these are in hands of investors holding black money. They dont even bother if their money stuck for 2 years.
    CommentQuote
  • Originally Posted by Eshtyle_Raja
    That is the reason I didnt go for flat. There is already oversupply. But I am not worried as far as plots are concerned. The moment price of plots comes down, it would be bought over instantly. If not by enduser, then by investors/dealers. Also as chdguy has said, no effective reduction expected in surrounding area's price.

    Reason :- Number of aspirants within the city would always lesser than aspirant around the city. I mean people like me are in big numbers who can only afford outskirt... If reduction happens, it would be less relatively to what happens within city. This is true that flats are already in oversupply. But again these are in hands of investors holding black money. They dont even bother if their money stuck for 2 years.


    I do agree that the price reduction in Chandigarh would be greater than the surroundings. However prices in surrounding areas will stagnate if not go down. I would not mind buying a resale flat at the same price which was there 4 years back.
    CommentQuote
  • Oversupply will be an issue if sellers are in need of money and do distress sale. There people have bought for investment and they can hold on without much issue. Moreover the new projects which come up will launch at higher prices only because cost of land is high, cost of construction/labor is high and they will be forced to sell at higher prices. This will result in the delivered projects also to appreciate.

    On VIP Road area, the psf rate was 1700 or so about 3 years back, last year it was 2000-2100 and now it is already 2400-2500. With the inflation and higher costs, don't expect it to come down at all.

    Originally Posted by AnkurPune
    Hi Chdguy,
    In my opinion prices will go down in outskirts as well. If you go to Zirakur VIP Road etc., you can see thousands of flats ready with very few people staying there. In addition lot of projects are going to give possession in 2012 / 13. I think there is going to be a massive oversupply in surrounding areas very soon and prices will have to go down because of that.

    I don't think it can happen that prices go down in Chandigarh and go up in Zirakpur. Overall both of them should either go up or down.
    CommentQuote
  • Got one call from a broker who claimed there are sudden availability of plots in main shiwalik city and he could arrange price between 17K to 18K. Nothing was available there below 20K few days back. Could be a panic reaction from any investor due to todays market fall...:bab (6):
    CommentQuote
  • Originally Posted by Eshtyle_Raja
    Got one call from a broker who claimed there are sudden availability of plots in main shiwalik city and he could arrange price between 17K to 18K. Nothing was available there below 20K few days back. Could be a panic reaction from any investor due to todays market fall...:bab (6):


    Is Shivalik City in Mohali?
    CommentQuote
  • Chances of price reduction in and around Chd

    You got a call from the broker because there is announcement from GMADA (expected any time) where plots would be sold in Mullanpur and Sec 123/124 for which land is being secretly acquired (i am being forced to sell my land). All this has to be done before election notification from Punjab govt is issued (expectation of Congress coming into power and Akalis out). There is a huge rush to make money so there will be a release of lots of plots in next 3-4 months.

    With regards to price reduction it was expected in Chd city but outside there is a surge. I bought a plot at almost 25K/sq yard from EMAAR MGF on 28th July (almost all sold out) and within 2 weeks it has increased to 28K. The affordability is still there with lot of development expected like: City centre, IT park in Seneta, Transport nagar, EMAAR MGF mall (ready in next 3 months), Metro line (thought long term), express way etc. People are looking to sell a family owned house to buy separate properties for children and being part of the new era. Prices may stabilise/rise or crash depending upon world sentiments or how India performs not much on local factors any more. It would happen eventually like it did in UK (where i am from last 10 years), USA (where i was), Spain and Portugal (where i saw it happening) and Dubai (we all saw what happened). Everything that goes up has to come down and then go back up again. People who buy low "laugh", people who buy high "stress" but still hold on to it. Eventually there will be stabilization with 5-10% all the time.......which i see another 2/3 years away. Right now is the time to make the most of it with India rising sentiments. That is what all the big MNC's are doing with launching new cars/projects etc. Good luck!!
    CommentQuote