With slowdown pressure building up, property prices crash in city periphery
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On the Kharar-Landran road, two- or three-bedroom flats or independent floors in under-construction projects are available for Rs 25-35 lakh. The cost of plots too has come down — from Rs 18,500-20,000 per square yard to Rs 14,500-16,000 per square yard, and in some projects it is even lesser. On the Kharar-Kurali road, a builder is offering a two-bedroom flat for Rs 14 lakh. Similarly, on the Zirakpur-Derabassi Highway, flats are being sold for less than Rs 25 lakh.
Since many projects have failed to deliver the product on time, there is a trust deficit in new launches. "The buyer would rather spend on a ready-to-move-in property even if he has to pay a little more. The elusive end users are the king of the market now. For a readymade flat or house in the range of Rs 28 to 35 lakh, there are enough buyers despite the inflation and hike in the cost of living in recent years," adds Kochar.
For the builder, because of the sharp increase in construction cost, launching a new project at too low a cost is not possible and bringing down the rates too is not an option. In Zirakpur, for instance, many builders are holding on to the original rates. They are offering other attractions to bring in buyers. Gold coins, air conditioners, LED TV sets and even cars are coming free with flats here. Others are offering no EMI option till possession. In one case, a project developer claims to pay the buyer's house rent till he gives the possession.
Prateek Kumar, a property consultant handling five major projects in Zirakpur, says there has been no increase in the cost of property but there has been no crash of prices either. "It could have happened in some individual cases of builders who may or may not be able to deliver," he adds.