The recession in the sale of the apartments notwithstanding, freehold commercial property is still plotting a success story on Chandigarh's periphery. With the apartment culture of the metros yet to take a foothold in the periphery, freehold property - commercial and residential -continues to catch the fancy of the investors and the end-users.
In fact, the freehold property transactions are keeping the real estate market going since the onset of the recession, which virtually played havoc with big builders and investors.
Even as stress weighs heavily on the minds of big players - suicide by realtor Vikas Singhal is a case in point - small builders and property dealers dealing in freehold property continue to rake in substantial amounts by way of profits and commissions.
'Genuine investors and end users with spare money prefer to invest in freehold property, particularly residential plots in colonies situated in municipal limits since they offer good returns in medium term,' Dera Bassi-based property consultant Bhupinder Saini, who is yet to venture into apartment business, claims.
The reasons why the freehold property remains popular with the general public are not far to seek. 'Traditionally, a house is considered to be a roof over the head and this Indian mindset is yet to change,' says BL Sharma, who settled for a six-marla plot in Zirakpur after surveying 'state-of-the-art' three-bedroom apartment for almost four months.
And when the three-bedroom apartment is as costly as constructing a six marla house, the charm of having an independent house is doubled, he quips. Moreover, after the completion of the construction I will live in a house where, besides the house, I will also own the chat (roof), he argues.
For G.S. Sohal, a retired PSU official, owning three-storeyed eight marla house in Kharar has inherent advantages. One, the first and second floors give the elderly couple enough return to pay their monthly home loan instalment. Second, having tenants gives them a sense of security as both sons are settled abroad.
Property observers point out with new areas being incorporated into the municipal limits at regular intervals, there is enough land for independent plots. Though owning independent plot may be costlier in the initial stage yet its resale value is much more than that of an apartment for which finding a buyer can be an uphill task.
Since the townships are bursting at seams, commercial property will always be needed to cater to different needs of the population. In fact, even for investors, commercial property gives better results, a builder says. In the recession period, persons with enough money to spare can really land good deals, he asserts.
Surinder Singh, an upcoming architect, best sums up the craze for independent residential and commercial property. 'You construct a house once in a lifetime and it should conform to the taste and ulility.'
'Constructing a house yourself gives independence to cater to the present and plan for the future. This is possible only when you construct a house on an independent plot. Ditto for the commercial property,' he says.
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