2009 first quarter report - property vertical · 2020. 5. 23. · remainder consists of commercial...

PropertyVertical.com

2009

First Quarter Reportwww.propertyvertical.com

A comprehensive analysis

of Chandigarh residential

real estate market

Visitto browse Listings and learn more about market trends.

www.propertyvertical.com

Research analysis report on Chandigarh real estateMarch 2009

PropertyVertical.comResearch analysis report on Chandigarh real estate Dec 2009

Introduction.... .......................................................2

No and type of deeds registered in Chandigarh...3

Number of deeds vis- a -vis the location in Chandigarh..3

Chandigarh Market Comparison (100-250 sq yards)...4-5

Chandigarh Market Comparison (251-1000 sq yards)...6-7

Sub-urban market comparison ...........................8

No and type of deeds registered in Rural area .......9

Rural areas real estate market comparison ........10

Chandigarh rural map ..........................................11

Summary ..............................................................12

Conclusion ...........................................................13

Sub-urban Real Estate Market Analysis

Rural Real Estate Analysis

Welcome Contents

Harsimran K. Kalra

Research Analyst Vipin Sharma

General Manager

Property Vertical is pleased to bring the First Quarter

Report on the Chandigarh residential property sales for

its readers and valued clients. This year we have been

more elaborate and comprehensive covering the rural

areas in Chandigarh along with the suburbs.

The authenticity of the data is maintained which is

sourced from the Estate Office, Chandigarh and to give it

a complete perspective, it is evaluated on the grounds of

current market scenario for the relevant periods.

Simplicity of the report has been maintained for easy

understanding and evaluation by the readers. We hope

to provide a relevant and informative report to our valued

readers.

01Visitto browse Listings and learn more about market trends.



02

Introduction

Chandigarh Reality sector assumed prime significance due to the city's strategic location. The city shares its borders with

the states of Haryana in the south and Punjab in the north. It is surrounded by Mohali and Panchkula. The boundary of

Himachal Pradesh is also not too far from it, giving a vibrant glow to its real estate sector. In real estate sector, housing

accounts for a major component and is growing at a fast pace. Remainder consists of commercial office space,

industrial space, shopping malls, hotels and hospitals.

Growing nuclear families trend and rising income levels of middle class have contributed towards soaring housing

demand. This trend ultimately leads to the rise in property prices in Chandigarh. As the trend of economics, demand is

high and so does the prices is high. Also availability of cheaper home loans makes it easier for the buyer to invest in real

estate. But, worldwide global recession resulted in the hike in interest rates and this further impacted the plans of salaried

class, who was earlier dependent on the home loans, thus, hampering their investment plans.

Indian real estate is passing from a slowdown and the global recession has tighten its claws on the reality sector

surrounding Chandigarh, whereas, prices in Chandigarh are on its climax and will remain stable throughout the year

without showing any sign of downfall. "Though the properties on the outskirts of Mohali and Panchkula have collapsed up

to 15-20% giving rise to the chances of any movement, the properties in the inner sectors have denigrated to 5-7%", says

Vipin Sharma, General Manager, .

The forthcoming Lok Sabha Elections, accompanied with the global meltdown has made investors wary of buying large

chunks. According to them, different governments make different decisions and policies about the real estate and in the

past also, it has made and marred investors. The sub-registrar offices, which register sale deeds of properties, have

reported fewer sale deeds in the recent past. They have reported a 25-35% decline in deeds on a monthly basis. May be

the swearing in of new government can revive the property market in the region.






03

Number and types of deeds registered in Chandigarh:

Number of Deeds vis- a- vis the sectors:

The highest number of sale-purchase of residential properties was in Sector 15, whereas in the last year, the sale was

recorded high in Sec 21.Sec 15 was followed by Sec 38 and 37. The reason attributed for this higher activity of sale-purchase in these sectors are :-!These sectors offer a greater quantity of residential houses of 8-12 marlas and demand for this bracket of residential

properties is the maximum which has been proved by the highest number of registries registered in the Estate Office for

this category.

!These sectors being the central ones, generate more demand as compared to the far-off sectors.

Sectors

Number of deeds

8 15 16 18 19 20 21 22 23 27 28 32 33 34 35 37 38 40 44 45 46 47

2 10 3 1 1 2 2 6 2 5 2 2 4 4 5 7 9 6 4 3 1 1

Sale deeds :

Gift Deed :

DoC :

Transfer deed :

The maximum number of deed registered in this quarter is the Deed of

Conveyance (DOC) i.e. 231. The effect of global recession is clearly visible in

this quarter as the number of sale deeds (108) is less than the previous quarter

where it was 140. Sale deed is the basis of sale-purchase real estate market

and open sale purchase has been noticed in the market not in blood relations

as very less gift deeds were recorded as per family transfers etc.

Number of deeds vis-a-vis the location in Chandigarh:

108

10

231

69

Type of deeds No. of deeds





04

Chandigarh Market Comparison (100-250 sq yards)

Property area Govt rate per sq yard Total Government rate Average Market Rate Registered Amount

100

105.5

120.4

120.4

120.4

130.166

130.166

150.07

150.07

169.5

175

182.9

182.9

192

201.5

201.5

215

243.5

243.5

250

250

250

24,96,000

26,33,800

30,05,000

30,05,000

30,05,000

32,48,000

32,48,000

37,45,750

37,45,750

42,18,240

43,68,000

45,65,000

45,65,000

48,04,000

50,29,400

50,29,400

53,66,400

60,77,700

60,77,700

62,40,000

62,40,000

62,40,000

24,960

24,960

24,960

24,960

24,960

24,960

24,960

24,960

24,960

24,960

24,960

24,960

24,960

24,960

24,960

24,960

24,960

24,960

24,960

24,960

24,960

24,960

65,00,000

68,57,500

78,26,000

78,26,000

78,26,000

84,60,200

84,60,200

97,54,550

97,54,550

1,10,17,500

1,13,75,000

1,18,88,500

1,18,88,500

1,24,80,000

1,30,97,500

1,30,97,500

1,39,75,000

1,58,27,000

1,58,27,000

1,62,50,000

1,62,50,000

1,62,50,000

27,43,800

21,50,000

13,16,800

33,95,000

68,00,000

20,00,000

35,28,000

25,00,000

48,00,000

44,00,000

25,00,000

51,90,000

64,00,000

53,00,000

50,00,000

84,40,000

65,25,000

22,58,000

70,00,000

20,00,000

51,50,000

68,50,000

Comparison between the registered amount, the actual average market rate and the rate fixed by the government with

relation to residential property area between 100-250 sq yards i.e 4-10 marlas.

The lowest price at which the property is registered, as shown in the graph, is for 5 marla i.e Rs. 13,16,800, whereas the

average market rate is Rs. 78,26,000 and for the same area, registered amount is Rs. 68,00,000. The highest number of

sale-purchase of residential properties was between the registered amount of Rs 20 to 30 lakhs. This proves that there is a

trend of registry at the lowest registered amount as lesser registry amount will attract lower registry charges thus, the buyer

paying the least for the sale deeds to be registered with the Estate Office.





05

100

Rate

(in

la

khs,

INR

)

0

10

20

30

40

50

60

70

80

90

110 120 130 140 150 160 170 190 200 210 220 230 240 250180

Graph representing the comparison between the registered amount, actual average market rate and the rate fixed by the Government with relation to residential property area between 100-250 sq yards .i.e 4 marlas-10 marlas.

100

110

120


Property Area (in sq yards)




06

Chandigarh Market Comparison (251-1000 sq yards)

253.5

253.5

256.7

256.7

254

300.5

315.5

338.5

338.5

338.5

338.5

500.5

528.5

528.5

555

578.5

633.5

1000

63,27,360

63,27,360

64,04,700

64,04,700

65,89,400

75,00,400

78,74,800

84,48,900

84,48,900

84,48,900

84,48,900

1,24,92,500

1,31,82,000

1,31,82,000

1,38,52,800

1,44,39,300

1,58,18,400

2,49,60,000

1,64,77,500

1,64,77,500

1,66,85,500

1,66,85,500

1,71,60,000

1,95,32,500

2,05,07,500

2,20,02,500

2,20,02,500

2,20,02,500

2,20,02,500

3,25,32,500

3,43,52,500

3,43,52,500

3,60,75,000

3,76,02,500

4,11,93,750

6,50,00,000

70,00,000

80,00,000

37,00,000

70,00,000

70,91,000

82,38,000

84,44,000

36,00,000

94,50,000

1,93,00,000

2,00,00,000

1,45,00,000

1,38,00,000

1,75,00,000

2,16,00,000

1,60,00,000

1,70,00,000

4,24,00,000

Property Area Govt Rate Per Sq yard Total Government Rate Average Market Rate Registered Amount

24,960

24,960

24,960

24,960

24,960

24,960

24,960

24,960

24,960

24,960

24,960

24,960

24,960

24,960

24,960

24,960

24,960

24,960

Comparison between the registered amount, the actual market average rate and the rate fixed by the Government with

relation to residential property area between 251-1000 sq yards i.e 10 marlas and 2 kanal. The lowest price at which

the property is registered, as shown in the graph, is for 14 marla i.e Rs. 36,00,000, whereas the average market rate is

Rs. 2,20,02,500 and for the same area, registered amount is Rs. 2,00,00,000. The highest number of sale-purchase of

residential properties was recorded in less than 1crore of the registered amount. The lowest number was in the

bracket of Rs 25-30 lakhs and 70-80 lakhs.





07

Graph representing the comparison between registered amount, actual market average rate and the rate fixed by the

government with relation to the residential property area between 250-1000 sq yards i.e 10 marlas- 2 kanal.

250


Rate

(in

la

khs,

INR

)

0

20

40

60

80

100

120

140

160

180

200

220

240

260

280

300

320

340

360

460

560

260 270 280 290 300 350 400 500 520 540 560 1000450





08

Comparative Analysis of the rates of 1st quarter 2009 with 4th quarter 2008:

Location Property area

Chandigarh

Mohali

Panchkula

Zirakpur

Kharar

65,000/ per sq yard

35,000/ per sq yard

35,000/per sq yard

12,000/ per sq yard

8,000/ per sq yard

1st Qtr 2009 4th Qtr 2008 1st Qtr 2009 4th Qtr 2008 1st Qtr 2008 4th Qtr 2008

65,000/ per sq yard

40,000/ per sq yard

40,000/ per sq yard

10,000/ per sq yard

10,000/ per sq yard

72,000/ per sq yard

32,000/ per sq yard

28,000/ per sq yard

10,000/ per sq yard

10,000/ per sq yard

6 marla 10 marla 1 kanal

60,000/ per sq yard

35,000/ per sq yard

35,000/per sq yard

12,000/ per sq yard

8,000/ per sq yard

65,000/ per sq yard

40,000/ per sq yard

40,000/ per sq yard

10,000/ per sq yard

10,000/ per sq yard

72,000/ per sq yard

32,000/ per sq yard

28,000/ per sq yard

10,000/ per sq yard

10,000/ per sq yard

Sub-urban Market Comparison:

The impact of economic slow down is now visible on Real Estate sector as the residential property rates in the sub-urban areas have

declined within this quarter. The rates of properties like 1 kanal has been affected to a greater extent as the rates have come down from

90,000 per sq yard to 72,000 per sq yard in Chandigarh. Evaluating the rates of 4th quarter-2008 with 3rd quarter, it has been noticed

that the rates had declined from 15% to 20% thus showing downtrend in the graph.

Chandiarh’ 1st Qt 09

Mohali’ 1st Qt 09

Panchkula’1st Qt 09Zirakpur’ 1st Qt 09

Kharar’ 1st Qt 09

Chandiarh’ 4th Qt 08 Zirakpur’ 4th Qt 08

Kharar’ 4th Qt 08Mohali’ 4th Qt 08

Panchkula’ 4th Qt 08

0

^ 6 Marla

Rate

(in

lakhs,

INR

)

5000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

55,000

60,000

65,000

70,000

75,000

^ 10 Marla ^ 1 Kanal




09

Number and types of deeds registerd in Rural area :

Number of Deeds vis a vis the sectors:

Location Number of deeds

ManiMajra

HalloMajra

DaduMajra

Burail

Dhanas

Mauli jagran

9

8

1

3

1

1

! The reason attributed to this is the higher magnitude of availability of residential flats in cheaper rates compared to the other suburbs.

! Proximity to Punjab, Haryana and Himachal Pradesh adds another reason for its high sale deeds.

! Manimajra is very close to Chandigarh as well as IT Park, which adds another feather in its cap.

The highest number of sale-purchase of residential properties was in Manimajra:

Manimajra was followed by Hallomajra. The reasons for higher activity of sale purchase in these two areas are:

0

Nu

mb

er

of d

eed

s

01

02

03

04

05

06

07

08

09

10

ManiMajra

DaduMajra

Burail DhanasMauliJagran

Area ( Location)

11

12

HalloMajra


! Being adjacent to Chandigarh, these two areas effectuate more demand as compared to the far off areas.




10

Rural Market Comparison (100-500 sq yards)

100

100

110

120

125

140

150

175

240

Property area

3,12,000

3,12,000

3,43,400

3,74,000

3,90,000

4,36,800

4,68,000

5,46,000

7,48,800

5,50,000

5,50,000

6,05,500

6,40,500

6,87,500

7,70,000

8,25,000

9,62,500

13,20,000

11,75,000

3,12,000

5,50,000

29,75,000

16,00,000

16,88,600

5,00,000

19,22,000

9,00,000

Total Government

rate

Average Market

Rate

Registered

Amount

Comparison between the registered amount, the actual

average market rate and the rate fixed by the Government with

relation to residential property area between 100-500 sq

yards.i.e 4 marlas-1 kanal.

The lowest price at which the property is registered, as shown

in the graph, is for 4 marla i.e Rs. 3, 12,000, whereas the

average market rate is Rs. 5,50,000.The number of sale deeds

have been declined in this quarter. A number of residential

buyers have followed the wait-and-watch policy and are

waiting a price correction before buying a property as the

global economy faces turmoil and an improbable future.

This has affected the demand of the real estate space, which

is already at a very low level and further, this could also affect

development plans of builders.

5

10

15

20

25

30

35

40

45

50

60

Rate

(in

lakhs,

INR

)

0

100 110 120 130 140 150 160 170 200 220 240 260180






11

Chandigarh Rural Map :





12

The residential property rates in the sub-urban areas have remained same within this quarter. The rate of properties in

Chandigarh has not moved in any direction and is stable through out the quarter. Sentiments are down and affordability

has been hit the most. Mortgage rates have come down in the last three months. The price correction is still not enough to

make housing affordable and the property market is not going to crash as dramatically as it happened in the US. In India, the unaccounted money plays a dominant role in controlling the realty market dynamics. In Chandigarh, for

instance, the gap between the government collector rates and the actual market is bridged mainly by this unaccounted

money. This allows grater margins and lesser dependence on bank loans.

Though the present slowdown in the real estate sector is transitory in nature and will soon revert to its growth path, in the

long run Indian real estate remains attractive.

Like the rest of the country, the demand for housing in the region is always strong. The real force that determines the

direction and quantum of trade in the sector is the nature of supply. The demand is primarily for the smaller housing and

the supply, both from the private as well as the public sector has failed to match up to it.

Summary






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2009 first quarter report - property vertical · 2020. 5. 23. · remainder consists of commercial...

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