Dip in real estate prices in Tricity
Despite the real estate sector showing signs of improvement all over the country, the property prices in Chandigarh continue to tumble, reveals recently-released report of Economic Survey.
The report which was tabled in Parliament on Monday, Chandigarh is among the top tier-2 cities which have recorded a significant fall.
The report has quoted data of NHB RESIDEX — official housing price index undertaken on the directions of the union finance ministry. The housing price index showed increasing annual trend in 36 cities during April-June in 2017 out of 50 major cities across the country. Vizag recorded the highest increase of 15.7 per cent followed by Delhi with rise of 8.1 per cent while Noida recording the nadir increase of 0.9 per cent. The highest decline was recorded in Bhiwadi (10.6 per cent), among the 13 cities witnessing a fall in price, followed by Coimbatore (6.6 per cent) and Chandigarh (5.9 per cent).
The NHB RESIDEX data reveals that the carpet area price of properties measuring up to 646 square feet has come down to Rs 3,876 per square feet in June 2017 from being at Rs 4,886 per square feet in June 2015. Carpet area cost of real estates between the 646 square feet 1,184 square feet bracket came down to Rs 3,801 in June 2017 from being Rs 3,901 per square feet in June 2015. The price of properties measuring above 1,184 square feet has also seen a stark fall. The properties which were quoted at Rs 4,374 per square feet were later available for Rs 4,129 per square feet. Maximum fall in price has been recorded in sectors 8, 9, 10, 11, 16, 22, 34, 35, 44 and 47.
High collector rates and conversion charges are touted to be the primary reasons for few buyers in the market. The collector rate is the lowest rate at which a property is registered. It is fixed by the administration and the prices are revised every year. The existing collector rate in Chandigarh is higher than Panchkula and Mohali.
At present, collector rates in many areas of the city are disproportionately higher than the actual property rates. Recently, the administration had lifted the embargo imposed on transfer of leasehold to freehold residential properties and increased the conversion rates by manifold.BOX: MC auction failed.