Taxiing for take off

Pradeep Sharma

After lying low for several years against the backdrop of a slowdown in property prices, the real estate market around the upcoming Chandigarh Airport — a dream project of Punjab Government in collaboration with the Haryana Government and Chandigarh Administration — is on the threshold of a revival. The expected start of international flights from the airport by mid 2015 is the main catalyst for the renewed interest in real estate projects in this area.

The state government is also in an overdrive to speed up the infrastructutre and other related development in the catchment area of the international airport. Giving information about the progress of work on the International Airport project Punjab Deputy Chief Minister Sukhbir Singh Badal had said recently,  “The first phase of the airport will be completed by March 2015. For the initial three months there will be trial runs and the first International flight should take off from this airport by the end of June 2015. The completion work at the airport is in its final stage and the government is committed to facilitating all supporting infrastructure like commercial and residential projects to coincide with the opening of the airport. All pending clearances for existing projects have been put on the fast track".

Major builders in the vicinity of the airport in Mohali are all charged up to meet the expected demand for residential and commercial property, which they argue would arise when the international flights will start bringing in passengers, especially a large number of NRIs from the region, to the area. In fact, what has given the builders a reason to cheer is the fact that the alternate route from the airport to Panchkula is on a fast track and construction work has been completed till Mc’Donalds in Zirakpur. Connectivity to the major parts of the tricity through this alternate route is going to be an added advantage for all the major projects along this particular stretch of road.

“The starting of international flights from Chandigarh will give a boost to business, specially the real estate business in Mohali and Zirakpur. The Punjab Government should remove the infrastructural bottlenecks in the area as major residential and commercial projects are coming up near the airport,” says Baldev Goel, president, Chandigarh Business Council.

Anticipating demand for residential and commercial spaces in this belt the Greater Mohali Area Development Authority (GMADA) had launched its ambitious Aerocity project in 2010. The project having around 4,000 residential plots on offer (626  of 500 sq yd size, 43 of 400 sq yd, 610 of 300 sq yd, 438 of 250 sq yd, 720 of 200 sq yd, 402 of 150 sq yd and 777 plots  of 125 sq yd size ) had caught the fancy of end users, NRIs as well as investors at that time. However, GMADA missed the 2013 deadline for handing over possession to the allottees due to slow pace of development work at the site. Slowdown in the realty sector and slow pace of development work at the Chandigarh Airport also took a toll on the real estate prices in the area, especially in Aerocity project. However, over the past couple of months work seems to have picked up pace here as well . A state government officials says, “Development of this area will complement development in other areas under GMADA like Mullanpur. To ensure uniform development of all areas adjoining Chandigarh, Punjab Urban Development Authority (PUDA) recently launched ‘Gateway City’ residential scheme in Mohali. On offer are over 400 residential plots in Sector 118, 119 on Chandigarh- Kharar NH 21 at a reserve price of Rs21,000 per square yard. The two sectors are linked by 200-ft wide airport road with air conditioned bus terminal, super specialty and multi-specialty hospitals, industrial area, etc in the vicinity”.

With the work on the international airport in the final phase, the realtors whose projects are coming up in the vicinity  seem to have increased the pace of development. Bestech, Janata Land Promoters Limted (JLPL), IREO, Waves group, Pearl Group and Acme group have major stakes in the area in the vicinity of the international airport.

While JLPL is an old name in the area, the Gurgaon-based Bestech group is coming up with Bestech Square, an integrated real estate development on 13 acres in Mohali. The project comprises residential condominiums, commercial/IT spaces, 4-star hotel by Radisson and a retail shopping mall.

According to Kamaljit Singh, Senior VP Sales Bestech, “The state government is going all out to facilitate development in the areas close to the upcoming international airport so that these are established as tourism and business hubs. The clearances are being provided without any untoward delay”. Bestech has developed 3.5 lakh sq ft premium residential apartments known as ‘Park View Apartment’, an equal footage in terms of a Mall that aims at middle and upper middle brands and a 6.5 lakh sq ft in Business Towers that has already tied up with multinational corporate and many airlines and travel agencies are in talks for taking up office space in the group’s business square. “Our group came to this area as it is conveniently approachable, is close to the railway station, airport, Mohali Cricket Stadium, Indian School of Business, etc. The group plans to hand over possession to customers soon. “We have already applied for the completion certificate which could be received anytime now”, informed Kamaljit.

"This area is fast developing as a great residential destination owing to its seamless connectivity to tricity, quality infrastructure developments and very affordable and realistic prices. Though development has been slow over the past couple of years but five years down the line this area will be the most soughtafter real estate location like Gurgaon is to Delhi today”, says Neeraj Saxena, Partner, Urban Umbrella DMC. The company along with M/s UK Infrastructure is coming up with a 25-acre Capital Greens residential project on Main Chandigarh-Zirakpur-Patiala Highway (NH 64), which will soon become 4-lane as the work is in progress to facilitate the traffic flow towards Aero City and upcoming Mohali-Chandigarh International Airport.

“With the new international airport becoming operational soon, Mohali will be seen as prospective international property investment destination, just like Chandigarh. NRIs have always had an interest in Mohali’s realty sector and with this new development the city is bound to see give a boost to the realty sector here. As it is an Intl. Airport it is expected to see good number of NRIs flying to the city with an aim to invest in a property, ” said Y.S. Bains, President at Wave Estate. The group is coming up with a 300-acre integrated township in proximity to the  having a combination of plotted development, luxury villas, premium group housings, floors and commercial areas, 

Market observers said that with the prices of residential and commercial properties in Chandigarh rising way beyond the affordable limits, property in areas around the new airport can fit into the budgets of the middle class buyers. “Affordable prices of property in the large integrated projects could be a perfect investment for the end users and investors,” said A.K Sharma, a local real estate consultant.

While JLPL is targeting the middle and lower middle classes, Bestech and Waves group are targeting NRIs and upper middle class customers for their apartments that are currently priced over Rs 1 crore a piece for a three-bedroom apartment.

Proximity to airport and alternate road are not the only USPs of the area. In fact, it has virtually been turned into an educational hub with top institutions such as ISB and NIPER in close vicinity bringing in elite clientele for the residential and commercial properties. 

 In fact, the large concentration of  educated middle class population due to the presence of several educational institutions in the area will make the area still more attractive for  investors. Since connectivity and infrastructural issues are being taken care of  by the authorities concerned, the area may well experience the boom which it had missed in the past several years as properties around major airports have always been in demand.