Himachal witnesses drastic fall in property prices
Shimla- The prices of properties in Himachal Pradesh have fell by up to 30 percent in the past year, said real estate experts.
A 2 BHK flat in Shimla, Kasauli and Solan towns is now available at approximately Rs 25 lakh, a 3 BHK is available for Rs 35 lakh to Rs 45 lakh and a cottage costs anywhere between Rs 60 lakh to Rs 80 lakh.
Builders are allowed to develop and sell flats and cottages in the state as per the Himachal Pradesh Apartment and Property Regulation Act of 2005. There is a confusion in the state over the replacement of a law relating to apartment ownership.
According to the Revenue Minister Kaul Singh, a ban on the registration of new flats was imposed by the previous BJP government to monitor realtors. But the former town and country planning minister Mohinder Singh alleges that the ban could not be implemented due to judicial intervention.
The Revenue Minister claimed that the former town and country planning minister asked the assembly in August 2012 that to cancel the Apartment and Property Regulation Act and form a new comprehensive legislation in this regard. He had also told that new registrations of flats would not be done until the new act is implemented. but ironically, the minister had given permission to five or six realtors to build flats, said Kaul Singh.
Some builders approached the Himachal Pradesh High Court against freezing flat registrations. The court allowed the registration process till the new act came into force, said Mohinder Singh.
Some of the real estate experts say that the market witnessed a slump following the minister’s announcement. In more than a decade, the real estate sales have dropped by 25 percent. Buyers who had planned to buy or invest in the residential real estate in the state are very confused. They are hesitating to invest in luxury cottages at prime destinations too.
Shimla, Kasauli, Dharamsala and Palampur towns, which had once been the most-sought after locations for investors, have also observed severe great fall.
Some of the proposed real estate projects in the state have been stalled while some investors are desperate to sell and recover their money.
A bill is likely to be introduced in this or the next assembly session to end the existing act and by incorporating it with the Town and Country Planning Act. Regulating construction by realtors may rest on the Himachal Pradesh Urban Development Authority (HIMUDA).
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