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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.
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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.
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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
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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.
Research analysis report on Chandigarh real estateMarch 2009
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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
Research analysis report on Chandigarh real estateMarch 2009
Property Area (in sq yards)
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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.
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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
Property Area (in sq yards)
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
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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
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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
Research analysis report on Chandigarh real estateMarch 2009
! Being adjacent to Chandigarh, these two areas effectuate more demand as compared to the far off areas.
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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
Property Area (in sq yards)
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11
Chandigarh Rural Map :
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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
Research analysis report on Chandigarh real estateMarch 2009
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Source of Information
Special Thanks
About Propertyvertical.com
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