Projects in Greater Mohali - Buyers disappearing

Projects in Greater Mohali - Buyers disappearing Reality sector in Greater Mohali is facing problems in development as the cost of land is continuously rising and expected returns are very poor on the investments. This situation is experienced by many developers on the KHARAR-LANDRAN road. The land prices have been increased manifold in the last six years in this region, thus increased the cost of the projects making it impossible to find buyers and investors for the plots and flats offered for selling in these developments. The high cost factor has made many projects remain non-runner. Though there are megacities that have already initiated their development work, for example sewerage is laid down; road carpeting is completed, and have started construction, no buyers still or there is a consistent struggle to find them. The other significant factor is that when the projects were launched in year 2006-2008, the reality sector was experiencing boom, and the ruling government then was also proactively supporting development of the region and taken initiatives in allocating sectors to megacities, many investors jumped in the bandwagon thinking good returns on the investments. According to real estate analysts, it was a boom then, the reality market saw hurricane of buyers, response was substantial, the buyers were looking for affordable dwellings and the land rates on the KHARAR-LANDRAN were low as compared to neighboring regions like property in Chandigarh and Mohali. Only six years ago, the land prices offered to developers were approximately Rs 25-40 lakhs per acre and now it has risen up to Rs 2 crore and above. The farmers are asking for higher rates as the state government itself acquiring property in zirakpur at Rs 1.5 crore an acre. Proportionately, the developers have increased their selling prices thrice more in these years compared to what was offered in the initial years. According to the real estate experts, the reality market in this region would soon witness huge boom as the developers are coming with better payment plans, better quality construction, competing Mullanpur (New Chandigarh) is offering expensive living plus other factors like the market here is still from long. A common man who is thinking of owning a small residential house in this region is hit badly by the hiked collector rates. Imagine, before April 1st, 2011, owning a small six Marla (150 sq yards) plot could be accomplished with the payment of Rs 75,000 (as collector rates) as compared to Rs 1,35,000 today for the same. The buyer will have to also pay Rs 45,000 for getting approval for building plan.