Punjab on cusp of revival : The Tribune India

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Real Talk - Inder Raj Singh- Director, Bridge Solutions 4U Realtors Pvt Ltd.

Punjab on cusp of revival

Change has been the buzzword for the realty sector in Punjab in 2017. With a new government in saddle and RERA and GST norms making inroads, the property market in the state has been dealing with change at all levels.

Punjab on cusp of revival


Change has been the buzzword for the realty sector in Punjab in 2017. With a new government in saddle and RERA and GST norms making inroads, the property market in the state has been dealing with change at all levels. Giving an overview on the current scenario in Punjab Inder Raj Singh, Director of Ludhiana-based Bridge Solutions 4U Realtors Pvt Ltd., says that the Rs 40-50 lakh segment is the most demand intensive segment in the state at present and is likely to remain so over the next couple of years. “This segment is likely to see an appreciation of around 35 per cent over the next 18 months”, he adds. Excerpts from an interview: 

Is there any reason to cheer this festive season?

Though at first glance one can say there is not much to cheer about as the buyers are still not active in the numbers that would give some significant thrust to the market. The developers, on their part have been slow in offering festival discounts and the usual heightened activity associated with the festive season is missing this time except in a couple of major centres. But the positive thing is that the trust level is slowly building up due to the RERA regulations. Along with that the iron grip of unauthorised developments all over the state is now slackening. This is a good sign for organised players as well as for buyers looking to get best value for their money. Considering these points this festive season is not completely dismal. Also, it would be too early to write off the festive season completely as things are likely to look up by the year-end.

What has been the impact of RERA and GST on Punjab real estate market?

The effect of RERA is most visible in the unauthorised and illegal colonies that had come up all over the state over the years. The existence of these colonies had posed huge problems for the buyers as well as the government in the state as fly-by-nightplayers fleeced gullible buyers by offering properties at low rates and then leaving them  to get electricity,  water and sewerage connections for their homes on their own. In spite of not having proper facilities such properties got sold because of the price factor. 

But now things are set to change as with RERA in place no one will be able to sell a project without complying with different norms of the new law. The developers will have to reveal the details of their projects as well all the approvals attained on specific websites before going ahead with selling these. Thus, the state is now set to have well-planned developments and the buyers will no longer be apprehensive about getting cheated.

As for GST, lack of clarity about rates and payment schedules at present is a bit unnerving and has adversely affected real estate market in Punjab. Hopefully, things will become clear over the next few months and order will prevail.  

As end users are in the driver's seat now, will prices be rationalised?

While stagnation and price correction had sucked out investors from the real estate market in the state over the past few years, the winds of change currently sweeping the realty landscape have made it primarily an end user market. The conditions are favourable for the end users as real estate law will rein in rogue players in the market, the developers will be more accountable regarding completion of the projects and interest rates on housing loans are set to drop in near future. All this will bolster the demand in the Rs 40 to Rs 50 lakh segment which is dominated by end users. As for the price factor, this is the right time to invest as further bottoming out of prices is not likely. The prices have rationalised over the past couple of years and GST and RERA stipulations are likely to add on to the pricing of the new projects now.

What will be the role of NRIs as well as government policies in revival of the market?

NRIs have traditionally been the key market drivers in the state. However, now apart from NRIs settled in UK, USA and Canada, those from countries like Thailand, Australia, Middle East etc are also making investments here. This opening of a new corridor of investors is a positive thing as poor returns had virtually dried investments from UK and Canada over the past few years. These new investments will play a major role in ringing in a revival. Along with this policies like subsidy on stamp duty, regularisation of colonies and strict implementation of RERA will surely boost buyers’ trust leading to investments.

Which are some of the high potential realty markets in the state?

Main growth areas are Mohali, Ludhiana and Patiala and even some of the Tier III cities like Moga, Pathankot etc. 

What are the key market drivers in Punjab?

The state is moving sturdily on a growth path with a number of new industrial projects, road expansion, setting up of malls and commercial centres development of smart cities etc. All these are going to be beneficial for  the realty sector.  

— As told to Geetu Vaid

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