Prices hit a new low in the hill state

Bhanu P Lohumi

The realty sector which was gradually recovering from the impact of demonitisation in Himachal has received a severe blow following scrapping of retention policy by the High Court and ban imposed by the National Green Tribunal (NGT) on construction in core areas and along the National Highways in Shimla. As a result of this the value of plots in the state capital has crashed by 30 to 40 per cent. Further, the orders of the High Court to close down the hotels being run illegally at Manali, Kasauli, Kangra and other places also came as a blow to the real estate sector in the state in 2017.

The NGT orders, however, have come as relief for builders who had already constructed the flats but were not getting buyers. As construction of new flats would not be a lucrative proposition due to restriction of height of buildings to two storeys and an attic, the prices of already existing flats are set to go up, said a builder, whose flats are under construction.

During past one year only six licenses have been issued in Shimla Planning area by Town and Country Planning Department. A modern satellite township is coming up at Jatia Devi near Jubbar Hatti airport (Shimla) over 388 bighas and state public undertaking, Himachal Urban Development Agency (HIMUDA) has signed a memorandum of understanding (MoU) with the Singapore government to build a modern township aimed at decongesting the capital city. The process of preparation of Detailed Project Report (DPR) is in process, sources said.

The government’s Homestay scheme  has come as a saviour for the large number of vacant properties in Shimla and Solan districts.  

There has been a drastic impact on real estate business post demonetisation in the Kullu and Manali area also. Prices of plots in the suburbs were badly affected as theere was a drop of over 30 per cent.