Baddi realtors still reeling under slump
The Financial Express, September 8, 2009, Page 19
Preeti Parashar, Chandigarh
Even though the realty market is bouncing back in various cities across the country, the demand continues to be slow in Baddi, Himachal Pradesh. Keeping in mind the ongoing slump, the developers too are in a wait and watch mode. As per information available majority of realtors have been able to complete only 30-40% construction work of their projects.
“The demand here has not picked up since the slowdown started last year. We have developed about 50% of the total 720 apartments in the first phase but the bookings are quite slow. We are waiting for the market to pick up and then we will start our second phase construction,” an official from Omaxe Construction in Baddi told FE. Omaxe is offering one, two and three bedroom flats ranging between Rs 10 lakh to Rs 24 lakh in Baddi and so far has got about 20-30% bookings.
Lack of infrastructural in Baddi is considered to be the biggest impediment in the way of growth of the realty market. Buyers are kept at bay due to absence of sources of entertainment, good schools, colleges, hospitals etc. Many players like Omaxe, Amaravati, Hill View, Shakun Infrastructure, Mount View group and Suncity projects developing residential colonies in Baddi and suburbs are facing the brunt of slump in demand. To tackle the situation, some developers have decided to delay the completion of their projects whereas others are opting to rent out the apartments to the corporate sector.
But assured rental schemes offered by some developers have also failed to pump up the sales so far. “Though the rentals in Baddi are high as compared to Chandigarh or Panchkula but there are very few takers. Where a two bedroom flat can be rented out at Rs 7,000 to Rs 9,000 in Chandigarh, the same parameters are offered in the range of Rs 12,000-Rs 14,000 in Baddi. Apart from the companies taking apartments on rent, individual buyers are very few,” said Ankush Garg from Mountview group. He further added, “In our project—Naina Apartments—we developed 128 units, out of which only 30 units have been given the possession so far. Though we have the approvals to build over 300 apartments we are waiting for the response to pick up.”
Few realtors are also planning to venture into affordable housing segment in Baddi region. SK Bajaj from Prestine hotels and resorts said, “We are coming up with a new colony- Silver city on Baddi-Nalagarh road where one and two bedroom apartments will be developed.”
The Financial Express, September 8, 2009, Page 19
Preeti Parashar, Chandigarh
Even though the realty market is bouncing back in various cities across the country, the demand continues to be slow in Baddi, Himachal Pradesh. Keeping in mind the ongoing slump, the developers too are in a wait and watch mode. As per information available majority of realtors have been able to complete only 30-40% construction work of their projects.
“The demand here has not picked up since the slowdown started last year. We have developed about 50% of the total 720 apartments in the first phase but the bookings are quite slow. We are waiting for the market to pick up and then we will start our second phase construction,” an official from Omaxe Construction in Baddi told FE. Omaxe is offering one, two and three bedroom flats ranging between Rs 10 lakh to Rs 24 lakh in Baddi and so far has got about 20-30% bookings.
Lack of infrastructural in Baddi is considered to be the biggest impediment in the way of growth of the realty market. Buyers are kept at bay due to absence of sources of entertainment, good schools, colleges, hospitals etc. Many players like Omaxe, Amaravati, Hill View, Shakun Infrastructure, Mount View group and Suncity projects developing residential colonies in Baddi and suburbs are facing the brunt of slump in demand. To tackle the situation, some developers have decided to delay the completion of their projects whereas others are opting to rent out the apartments to the corporate sector.
But assured rental schemes offered by some developers have also failed to pump up the sales so far. “Though the rentals in Baddi are high as compared to Chandigarh or Panchkula but there are very few takers. Where a two bedroom flat can be rented out at Rs 7,000 to Rs 9,000 in Chandigarh, the same parameters are offered in the range of Rs 12,000-Rs 14,000 in Baddi. Apart from the companies taking apartments on rent, individual buyers are very few,” said Ankush Garg from Mountview group. He further added, “In our project—Naina Apartments—we developed 128 units, out of which only 30 units have been given the possession so far. Though we have the approvals to build over 300 apartments we are waiting for the response to pick up.”
Few realtors are also planning to venture into affordable housing segment in Baddi region. SK Bajaj from Prestine hotels and resorts said, “We are coming up with a new colony- Silver city on Baddi-Nalagarh road where one and two bedroom apartments will be developed.”
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