Ban on GPA to deepen slump in city real estate market

Ramkrishan Upadhyay

Tribune News Service

Chandigarh, January 14

The decision to ban the transfer of property by the Chandigarh Administration through the general power of attorney (GPA) will adversely affect the real estate market in the city, which has already been facing a slump for long.

Experts in the property business feel that the decision will result in reduction of prices of the leasehold property. On the other hand, the price of freehold property may shoot up slightly.

A majority of commercial and industrial property in the city is on the leasehold basis. Arun Mahajan, an industrialist, said the decision would further cause hardships to plot owners of the Industrial Area, who bought property on the GPA.

He said many industrialists had purchased plots on the GPA, for who the decision had come a a rude shock. YK Mahajan, another industrialist, said it would increase litigation and create problems.

Kanwaljit Singh Panchi, a property dealer, said with the ban, people would have to think twice before buying property from GPA holders, resulting in reduction in prices. He, however, said the freehold property might see some increase in prices.

Rajat Malhotra, a city resident, said the decision would also create problems for thousands of residents living in rehabilitation colonies. In most colonies, owners of the property do not have a clear title, which they can transfer through a sale deed. In order to complete the transaction on sale deed, one needs to have a clear title of property. Many flats in cooperative housing societies are also sold through the GPA. Now, if the societies have a completion certificate and the original buyer has cleared all dues, these properties can be transferred from the GPA.

JD Gupta, another property dealer, said buyers had already started shifting to neighboring states due to wrong policies of the Administration. He said the decision would further hit the property market in the city.

Hit hard

• Experts in the property  business feel that the decision will  result in reduction of prices of the leasehold property. On the other hand, the price of freehold property may shoot up slightly. 
• Rajat Malhotra, a city resident, said  the decision would also  create problems for thousands of residents living in rehabilitation colonies. In most colonies, owners of the property do not have a clear title, which they can transfer through a sale deed.   
• Many flats in cooperative housing societies in Chandigarh are also sold through the GPA.