With real estate players in Punjab finding it difficult to reduce the prices of their projects, buyers have put their plans on hold till the market sees further correction.
Speaking to Business Standard, PPR Group managing director Rajan Chopra said, "Most of the housing projects in Jalandhar are coming up on the outskirts of Nakodar, Kapurthala and Hoshiarpur road. Residential plots in these areas vary from Rs 5,000 per square yard to Rs 12,000 per sq yard. However, since last year, there has been no change in the price in these areas. Flats which cost between Rs 15 lakh (Rs 1.5 million) and Rs 25 lakh (Rs 2.5 million) are only in demand."
The situation is no different in Ludhiana. Local property dealers here maintain that the residential sales in Ludhiana have been adversely impacted with the downturn in the real estate market. Buyers here expect the prices to decline 25-30 per cent. While plots in the unauthorised colonies start from Rs 7,000 per sq yard, those in authorised colonies quote 1.5-2 times higher.
In the absence of buyers, projects have either slowed down or have been delayed. Punjab Colonisers and Builders Association finance secretary HS Lamba said people in Ludhiana are bottom fishing and awaiting further correction in prices.
"Though prices of construction material like steel and cement have come down, builders are unable to reduce the price owing to the high land costs," Lamba said. Most of the builders in Ludhiana have purchased land at exorbitant costs and now are finding it difficult to slash prices as they would have to incur losses.
The situation in Amritsar too is no better. "In the last few months, we have seen a correction of 5-10 per cent for residential plots with prices ranging from Rs 4,000 per sq yard to Rs 10,000 per sq yard," said Kapil Mehra, director, Heritage City Developers & Builders.