Indian Real Estate: Chandigarh Beckons
Chandigarh Real Estate: Call of the Siren
NEO-IT, a US based agency ranks Chandigarh amongst the top six
destinations in India for investment in the IT sector, a city
whose name also features amid the top six Indian States, who are
leaders in e-Readiness and e-Governance. In an unexpected
surprise movement, it is fast emerging as a favoured destination
for top-ranked IT firms along with Bangalore, Hyderabad, and
Gurgaon. The reason behind Chandigarh's attraction lies in not
only in its high quality of life, but also due to the
availability of requisite human resources to support and sustain
a burgeoning industry.
A 250 km. optical fibre cable network, international bandwidth,
single window facility for companies and quality manpower has
proved to be the siren call for IT giant Infosys, an Indian
stalwart inveigled into setting up a software development
centre, the first phase of which has been completed with work
begun on the second. According to Vivek Attray, IT Director,
Chandigarh Administration: "The IT Park integrates an open and
green area with modern infrastructure. It comprises of a ready
built space, a 30-acre Infosys campus, sub-anchor and
built-to-suit sites, entrepreneur development centre, dedicated
power station, a huge retail space and earth station." And,
Infosys has been followed by IBM, Wipro and others wishing to
establish their presence in a city that has what it takes to
meet the most exacting of business demands.
With the Chandigarh Administration planning a Technology
Habitat, a 250-acre mini township is scheduled to come up
adjacent to the Rajeev Gandhi Chandigarh Technology Park
(RGCTP). "The Habitat will project the planned face of modern
development, assisted by modern technology to serve the modern
needs of the industry and those employed by the technology
companies. It will also comprise residential complexes,
institutional areas, commercial areas, sporting areas, and ample
green belts." according to Vivek Attray.
Already, DLF, a Delhi-based real estate development firm has
joined hands with the Chandigarh Administration in setting up
ready-built office space at RGCTP offering 8-lakh sq. ft. of
prime workspace to IT firms. And, in order to upgrade
suitability and sustainability of human resources for the IT /
IT-enabled services (ITeS) and Business Process Outsourcing
(BPO), Chandigarh Administration has set up a soft skills
training programme in the city. With a population of 1-million
and a literacy rate of 82%, Chandigarh offers a huge talent pool
for IT / ITeS / BPO companies that invest here.
According to Chandigarh Administration, 42-Indian and foreign
firms e.g. Amadeus, Century Technologies - California, KMG
Infotech, UK's Index Computer Systems, Virsa Systems among
others have applied for the six built-to-suit sites covering
10-acres. Ever since RGCTP was declared a Special Economic Zone
(SEZ), Chandigarh's tech park has attracted a lot interest with
companies from USA, Great Britain, Finland and across the globe
applying for the six built-to-suit sites.
Expecting a huge deluge of IT professionals and those wishing to
work in the BPO sector, prices of residential property near the
park have sky-rocketed. With an expected 25,000 jobs generated
by a fully functional IT Park, the housing sector could face a
immense pressure, a fact that has created boom like conditions
for real estate in Chandigarh and its surrounding areas. Even
Mansa Devi, a small, sleepy little rural colony in the vicinity
of the IT Park has experienced a rise in real estate prices.
Three bedroomed flats that a few years back could be bought for
Rs. 15 to 16-lakhs in Sectors 4 and 5 of Mansa Devi are now
going for Rs. 30 to 35-lakhs, as property dealers pin their
hopes on and wait for the IT Park to fulfil their dreams of an
unexpected bonanza. It is not only property prices that have
been affected but rents have doubled and tripled with the
opening of the park in September 2005, and residential plot
prices have jumped from Rs. 350 - 400/- to Rs. 700 - 750/-, all
due to the opening of park.
In a domino effect, the cost of real estate in and around
Chandigarh, from Mohali, Panchkula, and surrounding areas is
getting more expensive by the day, with multi-nationals and
Indian IT / BPO giants coming to stake a claim in the city. As
the UT administration works on making Chandigarh a tourist
destination, it is only a matter of time before it joins the big
league of Tier I cities in attracting foreign direct investment
(FDI) on a large scale.
A chain of events has been set in motion with the opening up of
Chandigarh's IT Park, and the Punjab Government's desire to
progress beyond the Green Revolution will ensure that Chandigarh
remains the prime destination of choice for FDI. With everything
going according to plan, real estate in Chandigarh remains the
best form of investment, both for the short and the long-term,
premium real estate, unmatched by any other Indian city. And,
the Punjabi Diaspora, no longer happy to live in the villages
and rural towns they left behind are setting the real estate
prices in the city aflame by going on a real estate shopping
binge with their hard-earned dollars.
The curve of Chandigarh's real estate prices is on an upward
trajectory, never to be the same again!
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