Chandigarh real estate prices flare up to touch sky

The scarcity of land coupled with the spurt in demand for retail space has jacked up price of commercial properties by over 40 per cent in the last six-months in Chandigarh. The hike has come as a windfall for the upcoming multiplex projects and a string of industrial and traditional movie theatres are lined up to turn into commercial complexes.

The city has come shoulder to shoulder with metros in terms of going rentals as that rentals are brimming Rs 600 per square feet at the prime locations. The realtors are seeing the place as the retail goldmine as the city leads in terms of per head earning and spending in the country. And most brands are ready to pay hefty rentals as the price of commercial properties is expected to remain firm in future as well.

The hike is attributed to aggressive retail expansion by majors like Reliance Retail, Subhiksha and the 'sought after brands' that are jostling to acquire additional retail space here. While most retailers are looking to lease the space, Reliance Retail is believed to be on hunt for outright purchase of space to avoid the high rentals. Some renowned hospitality groups are also believed to be on prowl to buy few properties here to launch hospitality projects here.

Sources in the UT Administration informed that the around 30 industrial units have already applied under the conversion policy and are altering into commercial businesses. Sources claimed that a number of industrial and commercial units in industrial area in Chandigarh are likely to benefit under the change of land use policy introduced by UT Administration due to warm response to on going projects.

Sources said that the tremendous response of denizens to the first multiplex in the city , Fun Republic, have interested many private developers who are more than ready to take up such projects in the city.

Sources informed that leasing price of the premier locations in the multiplex varies from Rs 550 per square feet to Rs 150 per square feet.

Apart from the two malls-cum-multiplexes are likely to come up an integrated housing cum commercial project being undertaken by Parsvnath, most of the traditional movie theatre owners are set to change to multiplexes, sources in UT Administration revealed.

Meanwhile experts in the real estate business feel that UT Administration needs to release more land for commercial activities as the commercial sectors (17 and 34 sectors) are already facing congestion.

Administration needs to relax the bylaws under the apartment policy for commercial activities as in case of multiplexes to tackle the problem of scarcity of land," JD Gupta, President Chandigarh property dealers Association said.
Source:punjabnewsline