Weak dollar makes NRIs home in on Punjab real estate
One member of every household is an NRI; Chandigarh emerges as a investor’s delight
Photo: CB Singh
REAL ESTATE investment may go up significantly in Punjab in the days to come riding on the state’s political stability and the rupee-dollar volatility.
Nearly half of the Rs 4.97 lakh crore investment in Punjab in 2011 was in the real estate sector. This is expected to grow over the next five years, with the state government keen on ensuring a congenial atmosphere to encouraging more investment in the state, especially in the real estate.
This week, India’s largest real estate company in terms of revenue, DLF Limited launched premium independent floors spread over 200 acres called Hydel Park Terraces and a housing complex called Chandigarh Royale City near Chandigarh within a gap of two days.
With nearly one member in every household in Punjab an NRI, areas around Chandigarh are attracting value investors, especially NRIs. The state government has announced a new Rent Control Act to ensure safety of investment of the NRIs in real estate.
Punjab Deputy Chief Minister Sukhbir Singh Badal said the government is looking to improve infrastructure in the state and offer better connectivity between cities with four-to six-lane-roads. He said that no illegal colonies will be allowed to flourish in the state. Investment in real estate will see a record increase over the next two years because Punjab will emerge as surplus power state, he added.
Property consultants are upbeat about the promises. Amarjeet Sethi, a real estate consultant, said that there has been a slump in the market and certainly it’s an opportune time to make investment in real estate, which will give good returns within the next two years.
He said that areas around Chandigarh have already become a hub for real estate developers.
Anant Singh Raghuvanshi, director of sales and marketing for DLF, said that NRIs were showing interest in premium houses. “We are expecting 10-20 percent NRI investment in our premium project Hydel Park Terraces, which has been designed to suit their needs and taste.”
Parveen Kansal of Chandigarh Royale Estate said that there were a lot of enquiries from NRIs. “We have already taken into account their expectations,” he said.
A recent study by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) titled Growth Agenda for Punjab noted that Punjab had 49.7 percent of total investment in real estate. In the services sector, it had 34 percent investment followed by 11.9 percent in electricity and only 4 percent in manufacturing.