Chandigarhs residential market has been witnessing subdued activities over the last quarter owing to poor market sentiments. The second quarter of 2013 witnessed subdued demand for residential real estate across most of the micro markets in Tri-City as cautious sentiments were witnessed among both investors and end-users. Also,the new residential projects launched during the second quarter of the year were priced at par with the last quarters market average. As a result,the capital values remained consistent over the previous quarter. The new projects launched in the mid-end segment were mainly concentrated in Mohali micro market whilst no new launches were witnessed in Mullanpur and Dera Bassi micro markets.
Capital values remained consistent during the second quarter of 2013 for ready residential properties in high-end and mid-end segment in Tri-City over the quarter. This is mainly due to the sluggish demand for ready residential properties resulting in low transaction activity.
Currently Sectors 2,4,6,7,8,9 and 15 in Panchkula and Sectors 114,115 and 127 in Mohali are key locations for developments in the high-end segment,while Sector 20 is an upcoming location for mid-segment developments.
The demand for new residential launches in 2Q 2013 remained sluggish and the total number of units launched was noted at approximately 280 units. Most of the new launches in the quarter were mainly in the mid- ranged segment. Also,unlike the previous quarter which witnessed launches in the housing market in the form of plots and independent floors,the second quarter of the year witnessed launches mainly in the form of apartments in mid-end segment to attract both end-users and investors.
The Punjab Government has approved the renaming of Mullanpur as New Chandigarh and plans to develop it as a model city with a new master plan for the location. This would result in better infrastructure facilities in the peripheral areas of Tri-City,which would help in boosting demand for real estate in the location in the long term. However,in the upcoming quarter the residential capital values are expected to remain unchanged owing to limited supply and demand.
The author is Executive Director Residential Services,Cushman & Wakefield