Residential property prices fall by 13 pc in 2 years: Economic Surveyhttps://indianexpress.com/article/cities/chandigarh/residential-property-prices-fall-by-13-pc-in-2-years-economic-survey/

Residential property prices fall by 13 pc in 2 years: Economic Survey

Chandigarh has witnessed a fall of 13 per cent in prices of residential properties between the first quarter of 2013 and the first quarter of 2015.

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As per the latest annual Economic Survey, out of 26 cities, 20 witnessed an increase in prices.

THE CITY Beautiful has witnessed a fall of 13 per cent in prices of residential properties between the first quarter of 2013 and the first quarter of 2015.

As per the latest annual Economic Survey, out of 26 cities, 20 witnessed an increase in prices while six saw a decline with the maximum fall witnessed in Chandigarh, followed by Delhi with a fall of 6 per cent in the same period. Panchkula and Mohali have been clubbed with Chandigarh.

Sector-wise comparison
As per the National Housing Bank’s RESIDEX (index of residential prices), Sector 49 witnessed the highest fall in prices of residential properties with 35 per cent, followed by Panchkula and Mohali with a fall of 31 per cent. Sectors 34, 35 and 44 recorded a fall of 28 per cent while properties in prime sectors of 8, 9, 10, 11 and 47 witnessed a fall of 12 per cent. House prices in sectors 16 and 22 fell by 6 per cent.

There are a total of 56 sectors in Chandigarh that are further divided into four parts — A, B, C and D — by a V-4 road (meandering shopping streets) running from east to west and a V-5 (sector circulation roads) road running from north to south. There are 3,000-4,000 houses in each sector, depending upon the size of the sector. Panchkula and Mohali have 32 and 55 sectors, respectively.

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Reasons for fall
SLUMP in market and high collector rates are said to be the main reasons for the fall in prices of properties.

Suresh Aggarwal, president of Haryana State Property Dealers Association, says that the collector rates are very high in Chandigarh, Panchkula and Mohali.
The current price of a one-kanal house in the northern sectors of Chandigarh is around Rs 6 crore and the collector rate is around Rs 4 crore. The collector rate is the minimum rate at which the property is registered. The rates are determined by the administration and are revised from time to time according to market dynamics.

In addition, buyers are required to pay a stamp duty of 3 per cent on collector rates for residential properties. They are also charged Rs 1,500 per square yard as construction charges.

President of the Property Federation of Chandigarh Kamaljit Singh Panchhi says that a large number of properties in Chandigarh are on leasehold and the administration has imposed an embargo on transfer of such properties till the new rates are decided.

Earlier, the administration used to charge Rs 1,710 per square yard as conversion fee. In the city there are a total of 112 group housing societies having over 15,000 flats in sectors 48, 49, 50 and 51. Out of the total, only 35 societies have been constructed on the land allotted on a freehold basis. There are a total of 64,000 dwelling units of the Chandigarh Housing Board, of which around 40,000 have been allotted on a leasehold basis.

No auction since 2009
DUE to a slump in the market, the Chandigarh estate office has not held auctions since December 2009. The last auction saw the average price for residential sites shoot up to Rs 74,820 per square yard while the price for commercial sites went up to Rs 2.74 lakh per square yard. In 2010, the administration had planned an auction, but it was cancelled at the last moment. To gauge the response of the market, the Chandigarh estate office has decided to put a total of 40 properties, both residential and commercial, on auction on a trial basis.