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- Originally Posted by ATLGUYAgain - If someone can afford - Those are best place to live currently from every point of view .
Appreciation would be steady( read - Lower pace) not at the same pace as 2004 -2010 was boom everywhere but keep in mind one has to pay premium if you want to stay in core sectors. I still see 15 % appreciation for more few years to come...but again you don't keep a "price tag" on home you live in...
Investment - Totally different story - Go for Mullanpur, Aerocity, ecocity, ABCXXXX city ( yet to come) where habitation will take 5 -10 yrs for sure.
I completely agree with you when you say that these are the best places to live atleast in India. I have lived in many cities in India but the kind of comfort I feel living in Panchkula does not match anything else. I think it is closest you can get to foreign cities.
However I am happy living on rent here at a much lower cost than to buy it. I may be proved completely wrong if the 2.5 Crore house turns out to 5 crores after 5-7 years but I will be very surprised if that happens.CommentQuote0Flag
- Current rates
Friends, can anyone tell the current rates in sector 28, pkl.
- I have been visiting houses in developed sectors of panchkula and I was about to finalize a deal yesterday until I met one of local residents, a property consultant known to my brother, who completely changed my mind. He said property prices have come down 25% and will fall further. I said I am ready to bear another 10 to 15% fall but wouldn't want to miss the bus this time around. He said prices are not justified there is no demand in the market. He enumerated few points that I find really convincing.
-POA in not legal anymore since october. Transaction costs have to be paid for each transaction(not good for intermediaries)
- Circle rates have gone up and will increase further again from Apr 2012 which implies that white portion has increased.(good for end users but not so good for investors having black money).
-Huge inventorty. Even Govt working people own 2 -3 property in tricity. Can imagine about financers and speculators.
- Employment (specially IT and higher income groups ) story looks bleak.
- Again over suppy in tricity- Panchkula sec 20 group housing, Mohali, Kharar-landran, Mullanpur, Aerocity, Panchkula extension, Huda's new sectors coming up beyond sec 28 etc.
-Old sectors have huge problems of parking place, specially 10 marla kothis(If I may call) and under in all sectors.
Any comments/suggestion/contradiction are most welcome. I would love to have your insight on this.CommentQuote1Flag
- That sound like a perfect reasoning. I think your property dealer friend has made some very valid points. Overall all these factors are making things more resonably priced for the common man and it is high time that happened. I would suggest you to wait for sometime and if you are an NRI, put your money into FD and watch it grow at almost 10% tax free which equates to almost 13% taxed amount ----- the safest bet for the moment.CommentQuote0Flag
- AnkurPune- "However I am happy living on rent here at a much lower cost than to buy it"
In your case it make more sense to rent it and enjoy the rest of funds with more % return.
I've been to 2 -3 auctions as i happened to be there- Joint families are splitting up for xyz reason and they want to live next to family. I've seen where they sold 1 Kanal and bought 2 10 marlas plot next to each other --- People who are already settled in PKL - they like to stay there by paying more premiums.
I concur with you - Being around the world, I still believe Tricity has best infrastructure for now.CommentQuote0Flag
- marsbabu - Can you share what was your deal like ? What was the rate per sq yard and in which sector - that will give all good understanding of current scenario.CommentQuote0Flag
- Well this is true for of all major/minor cities..
the good developed core area of any city is always very expensive and that’s what pushes the city to expand further and also set the prices of outskirts..
Now 3, 4 crores is definitely high price for many of us but a guy who has 7-8 croes (and in India these days there are many) is not a big deal... he can happily spend that money on his choice of location...transactions of these kind of properties are handful, and most of the time it’s for living purpose not investment..
Undoubtedly few sectors of Chd/Pkl/Mohali are the best for living but over the time definition of BEST has changed now ppl prefer pool, club house/gym, security, parking space, greener area, mall, reputed school, well connectivity and rest..
We may see price correction in these sectors in near future but definitely not more than 15-25% b’coz most of the properties are old and owned by ppl for several years they don’t have to pay any EMI, maintenance/club/power bkp cost each month.
- Originally Posted by AnkurPuneHi Altguy, Jatinderchd,
In my opinion it is just too high a premium to pay for staying in the best place in north India.
You can get an independent 10 marla house on rent in some sectors of Panchkula for 15K per month. If you want to buy you would have to shell out 2.5 crores or more. I guess EMI would work out to 2.5 Lakh per month which is many many time the monthly rent.
If Emi would have been even 3-4 times monthly rent, I could have considered buying but at current ratio I would never. Only reason one would buy is if you are sure that property prices are going to keep on going up which I seriously doubt, atleast in the core sectors.
Anyhow that is my personal opinion.
Your analysis regarding the ROI and the Rent returns is spot on but i would like to bring forward a few points regarding quite a few other prominent reasons of the rise of real estate in the tricity area:
1. The real estate prices in tricity are driven much more by sentiment and cult image of Chandigarh than by any other factor. Let me quote you an example. Take any young/medium punjabi/himachali/a few harnyavis living and working in their own states(having a may be option of moving out) and ask him that whats his dream city. The answer would be Canada/UK and Chandigarh for atleast 80% of your sample data(please note that they would already be having sufficient property in the first tier cities in their state but they still think chandigarh to be a Cult city).
2. I am not sure if you are from IT industry or not but if you find anyone from punjab in IT sector near you then do ask this question "Where do you want to settle down in life" if he is not already settled. The answer will invariably be Chandigarh if he has a choice !!
3. The reason i already gave about infrastructure, the peaceful life etc.
4. The chances of chandigarh getting developed in northern region after NCR are much more than any other city around !!
Considering all the above, I dont think that a price tag of 1-1.5L psy is a bad deal in pkl/mohali/chd core sectors. Although i would agree that now this price is going to stable down for atleast couple of years and the returns would be slower but this price is never going to fall IMHO !!
BTW, this price rise in core sectors happened somewhere around 2006/07. I say this because I have seen deals happening for 90L for one canal kothi in 2004 in mohali and panchkula which now a days goes upto 4-5 Cr. I do sense a bit of planned jacking up by the dealer association during that time to sell over the zkp/greater mohali area but i have no data to support that !!CommentQuote0Flag
- "Being around the world, I still believe Tricity has best infrastructure for now."
I disagree, Chandigarh or India has a long way to go. Yes within India probably the best. But if you look at western economies they are far ahead of us, even more importantly 4-5 crores is like a 1 Million US, you can actually get an amazing house in most US cities. Just search on "realtor.com" website see the kind of place you can get for 1 million.
Also I strongly believe that while I agree the prices are in certain range you never come to know what was the actual transaction price. What I mean is that there is so much black component and on top of that even the black component is all hearsay in terms what was paid. No one really knows what happened unless you were the person who paid the money. In short price is what dealer/brokers want you to believe and there is no way to contest it. I also wouldn't be surprised that seller is told one price and buyer is told one and the broker in the middle takes his cutCommentQuote0Flag
" Being around the world, I still believe Tricity has best infrastructure for now."
Do to comparison i.e cities with-in India
If you start comparing Chandigarh with any US city - you are off in comparison
I can buy 4000 Sqft house on 1 acre land in good suburb of cities like Chicago, Atlanta for 300k USD
i cannot even buy 4000 SqFT of Plot for that in chd/Pkl so thats not the comparison.
In India - Chd/Pkl/Mohali has good infrastructure for end-user but prices are out of reach for many for xyz reasonsCommentQuote0Flag
Maybe I misread your response, I think that is what I was also indicating that the prices are way to inflated when compared to other developed economies that have much better infrastructure.
Anyway based on my research I am still sticking to my earlier point that there is a correction bound to happen. I just wish the process was more transparent for real end users to make a more informed decision.CommentQuote0Flag
- Hi All,
I see the prices are cracking to some extent.
I haven't seen such a thing in tricity, panchkula in particular, because that is where i have been concentrating since few years. As I said earlier in my previous post that I have been searching to buy somethig since few years but couldn't buy because I always thought these prices were not justified.
Simple calculation, EMI 10 times the rental value of the property never convinced me. May be because I am not in india but here we see that as one of the measures to valuate a property. Then, met some people(brokers) in india and they explained me "sir jee this formula works abroad but not in india as market in india is mostly driven by sentiments and "black" money, jyada mat soocho bas le lo". Agreed to some extent and decided to take a plunge but always had at the back of my mind that formula. Luckily did not get into buying this time around because there were clear signs that property prices will remain stable for at least a year or 2 if not coming down.
Since few weeks I have been receiving calls from sellers/brokers to ask if I am still interested in X or Y property. So many proposals that I have never seen in so many year. Today ,I received a call from a broker where he was offering me a property 20% less than what he offered me a month ago. I wouldn't call it a desperation but I can clearly see some signs of it there in the market.
Guys,It is my personal opinion so please don't take it otherwise but would love to have your opinion/comments.CommentQuote1Flag
- Its becoming buyer market where buyer has more choices then before- Price are stagnant for last 1 year. I do see that it will be stagnant for some more time . There might be for 10%-15% change ( depend upon desperate seller) Other then that there is nothing much to worry - If you have money to buy and you are getting your choice of property ( Read- HUDA ones) - i don't see any reason- why notCommentQuote0Flag
- Well, a 10Cr property going to 7-8Cr does not indicate any fall. It just indicates that was over overpriced, now its overpriced .. :)CommentQuote0Flag
- Assume, if somebody purchased property in 25 lacs around 2008, wanted to sell it in one crore (may be - also got offer of 85 lacs) in 2011, but he is getting offer of 80 lacs now in 2012, will you call it a fall in price?CommentQuote0Flag