Hope of a revival builds up

Sunit Dhawan

Rohtak has been in the headlines ever since 23-year-old Sakshi Malik won a Bronze medal for the country in Rio Olympics. Just as the city seems to be in the news for all the right reasons post Sakshi’s feat after the tragic riot and arson during the Jat agitation a few months back, the real estate market in the city also seems to be getting back on its feet after the prolonged slowdown witnessed for the past three years. The city, which is just 77km from Delhi and a part of the NCR has all the “ingredients” for being a thriving real estate destination. It is not only the hub of  educational institutions, but is also well ocnnected with the nearby cities as well as the national Capital.  Besides several ongoing infrastructure projects the city was recently shortlisted by the Haryana Urban Development Authority (HUDA) for launching new sectors. The city will have the highest number of plots in the state at 456 with the urban development authority eyeing to make a cool Rs 3,000 crore fromj the sale of these plots. 

Plots more preferred in Rohtak

One of the main reasons for the city getting such a large number of plots is the buyer preference for these. Manish Garg, a local property consultant notes that  a majority of buyers in Rohtak and its nearby areas prefer to purchase freehold plots, unlike those in Gurgaon, Faridabad and other parts of the National Capital Region (NCR), who go in for flats.

“The availability of land at reasonable price is a big factor. Wherever a buyer has the option of getting a freehold plot at a price comparable to that of a flat, he/she will go for the plot. Then,  safety and security are also big considerations, especially for nuclear families with both husband and wife working,” says Garg.

Thus, there are not many takers for the flats in the private townships developed in Rohtak town.

“If one buys an independent plot, he/she can build a single-storey house, with the option for future expansion. However, the owners of flats/floors do not have this privilege,” says S.S. Dhankhar, who has recently bought a plot in a private township.

Nonetheless, the small-ticket buyers, who have limited finances at their disposal, and want to avoid the hassles and headache of building a house on their own or those who feel safe within a gated community, do opt for flats/apartments as well.

Prem Batra, a flat-owner in a private township located on Delhi Road, says more than 500 of the 600 flats at the township are now occupied.

The authorities of Maharshi Dayanand University (MDU), Rohtak, also seem to have caught up with the trend. The university administration, which used to build independent houses for the faculty members, has recently constructed faculty flats in the format of a housing society.

“The apartments are much easier to maintain and we feel that our children are safe and secure here,” feels Dr Rajender Sharma, a resident of the MDU faculty flats.

According to the local property dealers, business has picked up in HUDA Sectors 5 and 6, where the sale-purchase of plots is at transfer stage. In these sectors, the registration of sale-deed is required as of now and cash transactions are made as per the convenience of the buyers and sellers.

HUDA Sectors 2, 3 and 4 have also shown a marginal increase in property transactions over the past few months.

Apart from these, the private townships like Suncity and Omaxe have also witnessed an upswing in sales, with many new buyers getting attracted to these.

The property market is, however, more or less saturated in the other and older colonies of the town, though some rental and sale-purchase deals are getting materialised there as well.

Garg points out that apart from the residential property, many potential investors have started evincing interest in property for construction of educational institutions, hospitals, malls and other such infrastructure.

Commercial market stable

As far as the commercial property is concerned, the rates are more or less maintained, with most of the potential investors  wishing to buy built-up property so that they can earn rental income from the very beginning.

The commercial market in the city had also suffered a setback a few months back in the wake of massive destruction of property during the Jat agitation in Haryana. However, market observers assert that the phase in which the residents as well as businessmen seemed intended to shift elsewhere has proved to be short-lived and is over now.

“The agitation is over and the feelings of apprehension and insecurity also seem to have evaporated. It was an emotional phase, and is thankfully over now. The residents may also have realised that it is not that easy to dispose of their property here and buy some other property at Delhi-NCR, Chandigarh-Panchkula-Mohali zone or in any other area they consider peaceful,” observes Sharma.

Silver lining to slowdown

The realtors, who had been keeping their fingers crossed for quite some time, are upbeat over the prospects of revival some time soon.

Thanks to the price-correction attained during the downward trend over the past few years, the end-users are considering this an opportune time to buy property.

An increasing number of members of the salaried class, especially those who are bracketed in the 30 per cent income-tax slab, are going for home-loans owing to the double-benefit of acquiring property as well as saving income-tax.

“The tax-savings, coupled with the rental income, is usually enough to pay the loan instalments. Eventually, the loan gets repaid and there is an added appreciation in the price of the property. Hence, it is a win-win situation for the buyer,” points out Narender Sharma, a Rohtak-based real-estate advisor.

Sharma maintains that the property boom witnessed a decade or so ago was artificially inflated and this bubble had to burst, and it did, but the good fall out of this is that prices have become rationalised now.

“Then, there were a plenty of outside investors who pumped money into the property market, reaped sizeable profits and vanished from the scene. Consequently, the market crashed and a long period of stagnation ensued. As of now, we are banking on the end-users who want to buy property for themselves,” he asserts.

Endorsing his views, other independent observers also feel that the current trend of upward consolidation is gradual, but firm, as it is based on actual demand.

The much needed push has also been precipitated by the recent announcement of the Seventh pay Commission that is likely to make a sizeable difference in the take-home salaries of government employees. 

Market analysts also observe that the property sector is expected to brighten up as the benefits of the Seventh Pay Commission are transferred to the government employees.

“We are pinning hopes on the government employees who want to own properties and are likely to start getting the revised salaries and arrears within a month or so,” says Manish Garg, a  local property dealer.