February 26, 2009 1:20:30 am
The tricity,once considered as the most sought after destination for real estate prospects,is now finding it hard to maintain its sheen. The stagnation and economic slowdown in the real estate industry has badly hit the region .
Six months ago,what was seen as a rapid development of projects in the areas of Mohali,Kharar,Zirakpur and Dera Bassi has gradually experienced a massive slowdown.
The housing and township projects in Mohali and Kharar Landran road have been hit by the slowdown in the real estate industry. The development rate has reduced to a mere 20 to 30 per cent with some projects like the Ansals,World One,Unitech and TDI in Kharar showing no development on the ground, says Brig Inderjit Singh of Home-n-Home Consultants in Mohali.
On some projects,work has not started even after two to three years of their launch. One such example is the Pearl Infrastructure Ltd in Sector 100 and 104,Mohali. Even with all the plots sold within a year of its launch in 2006,no construction has taken place.
The Emmar MGFs Mohali Hills in Sectors 105,108 and 109 in Mohali also reflect a similar picture. Officially launched in 2007,the construction came to a standstill following a controversy involving the construction company Leighton India Construction Private Limited.
Projects by Taneja Developers and Infrastructures Ltd (TDI) in Mohali,Parsvnath Developers Limited in Chandigarh and Bollywood Heights in Panchkula have also reportedly been mired in controversies. The companies express optimism that the situation will improve soon.
Interestingly,even as overall prices of the various projects have fallen by nearly 15 per cent,takers for the projects are hard to find.
Also,the lack of funds has brought construction on the projects to a standstill.
I booked a flat in Ansals project in Mohali over a year ago. While I paid the first and second installments,nothing has been done on ground so far. I have applied for cancelling of my booking, said one of the buyers from Mohali.
The share values of DLF,Parsvnath Developers and Unitech have fallen from Rs 1,225,Rs 598 and Rs 546 (in January 2008) to Rs 157,Rs 55 and Rs 28 respectively.
Work on major projects hits a standstill
Possession delayed by months
Most of the projects mired in controversies
Investors cancelling their bookings
Realty shares plummet courtesy recession
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