Battered and battered by the pandemic, Tricity’s property market is finally starting to rebound, with Mohali gaining the most traction.
It has come a long way since October 2020 – after the first wave receded – when the Greater Mohali Area Development Authority (GMADA) managed to win only ₹417 crores by selling almost half of its 113 properties in total.
There was a slight improvement in October 2021 when the regulator won ₹520 crore across two auctions.
But as the virus subsided, fortunes turned. At an auction held in January this year, GMADA pocketed a huge ₹808 crore by selling nine of its main commercial properties.
The district also saw a major increase in stamp duty – the tax levied on property registration – in 2021-22, when revenues were at ₹1,300 crore. In 2020-21, stamp duty revenue was just a mere ₹822 crores. Mohali town had the largest collection of ₹614 crore in 2021-22. In 2020-21, the amount was nearly half to ₹375 crores. (see box)
The most searched addresses
Outlying areas such as Zirakpur, Kharar and New Chandigarh have become the new real estate hub of tricity. Thanks to the IT City and Aero City projects led by GMADA, Airport Road has become the most sought after address for investors and home seekers – offers for commercial and residential units are attracting record amounts here. There are about 200 private housing companies in Mohali.
Hot properties on airport road
The high value of Airport Road and the prospect of good returns attract investors not only from Punjab but also from Chandigarh, Himachal Pradesh, Haryana and the NCR region.
At the auction held in January this year, a six-acre commercial site in Aerocity was awarded ₹281 crore against the reserve price of ₹207 crore which means the cost of one acre was around ₹47 crore. A 12.60 acre multi-family housing site in Sector 67 has been ₹294 crore against the reserve price of ₹283 crores. At the auction held in October last year, five acres of a commercial site at Aerocity were ₹192 crore against the reserve price of ₹152 crores. In addition, a 4.6 acre site for a housing project in Sector 77 on Airport Road has been ₹100 crore against the reserve price of ₹68 crore.
Demand is exploding despite rising prices. A three-bedroom apartment, priced at ₹60-65 lakh during the peak of the pandemic, costs now ₹85-90 lakh.
Builders are also optimistic as home loan interest rates are at their lowest in nearly two decades. They predict a shift from renting to owning, fueling demand. Builders say buyer queries are increasing and end users are looking for move-in-ready properties. the ₹A 20,000 crore fund set up by the Center for Real Estate Projects has helped boost the sector.
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Over the past 3 auctions, we have been able to sell most of our larger sites and have earned close to ₹1,500 crores. This and the fact that stamp duty collections are rising show that the real estate market is rebounding after an 18-month lull.
Mankanwal Singh Chahal, Realtor, GMADA
The pandemic has brought about a major shift in people’s financial habits. Instead of saving, they are now in investment mode. In addition, they spend more time at home. In addition, tenants began to aspire to have their own property.
Harish Gupta, President, Builders Association of Zirakpur
Mohali is experiencing a property boom and as per the trend, most NCR investors are considering Airport Road projects. Even though prices are rising, investors are enthusiastic. At the height of the pandemic, the cost of 2 BHK on Airport Road was ₹45-50 lakh, now it’s ₹60-65 lakh.
Amit Mittal, Managing Director, Green Lotus Utsav, residential project on Airport Road
Demand for commercial and residential properties has increased post-pandemic as people believe investing in real estate will provide the best returns. Despite rising rates, people are investing their money in real estate, especially in areas under GMADA
LC Mittal, Director, Motia Group, Residential and Commercial Project, Airport Road
Rising phase in the market
The real estate sector has rebounded with huge sales consistently reported in the post-Covid era. After a decade of market collapse, the sector is now entering a 3-5 year growth phase, where demand is robust even with rising commodity prices and costs. Tier 2 cities see a larger increase due to reverse migration.
Prateek Mittal, Executive Director, Sushma Buildtech, Residential and Commercial Projects at Zirkapur and Airport road