Tuesday, March 17, 2009

Looking for Residential Property on Rent in Chandigarh?

The residential real estate market in Chandigarh is in a slowdown phase and with fewer transactions happening and values holding, the real estate action has shifted to the rental front. The rental market is especially active in Sectors like 21, 22, 34, and 35. The city is divided into self sufficient sectors and residential sectors are divided on the basis of plot sizes. “In the prime residential locations in Chandigarh, which include sectors 4 to 10, an old house with 500 sq. yard (1 Kanal) area is available at a rent of Rs 40–50,000 per month. In case of a new construction, the rent is about Rs 65,000” says Vipin Sharma, GM, PropertyVertical.com.

In the last one-and-half years, the residential rentals have seen an increase of almost 50 per cent.

The rental value in sectors like 21, 22, 34, 35, and 36 varies between Rs.10, 000-20,000 per month, depending on the size and location of the property. With developments on a fast growth rajectory, the demand for housing is expected to rise in the region. Currently, in Zirakpur price range varies between Rs.4, 000-6,000 for 2 BHK and Rs 10,000 for independent houses. Rental values in Zirakpur are 40% less than that of rents in Panchkula, which are Rs 7,000-10,000 per month for 2 BHK and Rs 15,000-18,000 for independent houses.

In Mohali rental scenario is exactly opposite as that of Chandigarh and Panchkula. Most of the rental properties are lying vacant as property owners have increased the rental values. Areas like Phase 7, 3B1 and 3B2, just like Sec 34 and 35 in Chandigarh, demands higher rental values due to its well-developed
social infrastructure, good ambience and quality of life, also these are quite in demand from corporate executives. On the other hand Sec-68 & 69 demands comparatively less rents. The rental value of a 10 Marla house varies between Rs 10,000-11,000, whereas it is Rs 8,000-10,000 of an 8 Marla house.

According to Vipin sharma, “2 & 3 BHK is the most transacted unit as rent is very reasonable and affordable. Demand for rental accommodation emanates mainly from the IT sector and other working professionals”. A lot of students also take up apartments on sharing basis especially in areas such as Sec 15, 20, 34, 35, 36 which are home to many colleges and institutes. Besides, foreigners and NRIs are also an important segment in tenants, due to the influx of many IT companies and therefore expatriates.

By Harsimran K. Kalra

Tuesday, March 10, 2009

Recession Effect: No Buzz in Shopping Malls

A mall not only offers a great shopping experience but is also a mine of business opportunities. But the pangs of recession are clearly visible on this mine of opportunities also. Fewer Footfalls, No more swanky shops, empty spaces, have snatched the sheen out of this culture. About a year back, malls were sprouting up in Chandigarh, Panchkula and Zirakpur almost on an everyday basis. Over 10 malls, shopping complexes and multiplexes were set to come up, the hottest destinations being Zirakpur Road. In 2007-2008, a whopping Rs 6,000-crore investment was estimated in construction of malls over the next two years.

A quick look in 2009 showcases a different scenario. Blame it on the economic meltdown, the festive spirit has not made shopaholics to flock malls and retail outlets in Tricity. However, Shalimar Mall, the first one to start operations, wears a deserted look. No retail outlet has started its operations as yet.

The loss of business forced the branded shops to look for solutions. Of course, not all stores concede a drop in business; whereas shop owners in other malls complain of no attract takers for the swanky shops. Even shops that have come up in such malls are awaiting buyers, forcing many to shut shops. Reasons like parking problem, expensive box office has lead to fewer footfalls in Centra Mall, giving trouble times to the shop owners.

“To attract the crowd, lucrative offers should be given to the shop owners of premium brands. Moreover, management could think over a short lease period, in order to provide the flexibility to them, so that they get ample time to establish their business. Establishing more chains like Big Bazaars and giving more opportunities to factory outlets of various brands would add a feather in the cap,” suggests Vipin Sharma, GM,PropertyVertical.com.

Senior Marketing Executive of The Bella Vista, Chetan Sood, claimed, “Around 20 brands have been finalised, which have started sprucing up their stores for launch, the recession has led to a definite slowing down of the entire process. Of the 64 shops at this mall, we are yet to find takers for around 10 shops.” Asserting that Bella Vista’s USP is “truly retail centric mall” he added, “The mall will have floors dedicated to a particular lifestyle category.” Sood added that the opening of the mall may be postponed to June or July this year.

By Harsimran K. Kalra