Mohali was built as an extension of Chandigarh, to lessen the housing strain on it. Officially known SAS nagar named after the eldest son of Guru Gobind Singh, Sahibzada Ajit Singh. Located to the west of Chandigarh, Mohali for long was under the shadows of Chandigarh. But not anymore, Mohali has emerged strongly as a separate city with its own independent identity. Lush greenery, peaceful environment and proximity to Chandigarh have helped Mohali to become one of the favoured investment destinations.
If Gurgaon and Noida played an important role in development of real estate sector in the National Capital Region, it is Mohali that is acting as a catalyst for real estate growth in Punjab. There are many alluring reasons, such as low cost and better quality of life, for companies and individuals looking beyond metros and moving to Mohali.
As the economy is slowly healing, investor and end user sentiment is likely to encourage growth in real estate sector and tier II cities like Mohali are going to benefit the most.
Reasons for growth in Mohali
Multiplier effect of growth: Due to these investments in residential real estate is growing consistently. Social infrastructure such as public amenities, health care, education and security is constantly improving so is the physical infrastructure.
Lower real estate cost: Land and operating cost are much lower, due to which many foreign companies planning to set up operations are choosing Mohali as their favoured destination.
Living standards: Due to better quality of life, climate changes and more green spaces in Mohali there is a rising interest from NRIs and retirees.
Connectivity: The new International Airport which is under construction will further enhance Mohali`s reputation as an investment destination, the railway station in SAS Nagar connects Mohali to major cities like Delhi, Chandigarh and Ambala, there is wide network of roads including 52 kms of National Highway and 1272 kms of state highway connecting Mohali throughout the country.
Presence of Educational Institutions: Some of the premier educational institutions like Indian School of Business (ISB), Indian Institute of Science Education (IISER), Army Institute, IIPM and many leading schools are located in the region, moreover there are plans by the government to allocate 1500 acres of land to develop an education city which will cater to different disciplines like engineering, tourism, hospitality management, sports, media etc.
Healthcare: Some of the top league hospitals like IVY Hospital, Fortis Hospital and Max Super Speciality Hospital are in Mohali.
Factors Involved in Investing
Investors with a long term perspective and looking for diversification can explore opportunities for investment in Mohali, while the risk factors in Mohali as an investment destination is relatively less, as appreciation seems to be driven by fundamentals, the duration of the investment should be a longer one, minimum 5 years. One should look at growth drivers such as infrastructure, good location of the property, at what rate property appreciates? Is the project being delivered on time? Mohali is a good option if you rate them on these parameters, however since understanding of local dynamics is essential it is therefore useful to have a family member or a friend residing in Mohali to give a more detailed description of Mohali as a investment destination.
Some of the major developers like Mona Townships Pvt Ltd, Pearl Infrastructure, Ansal’s etc have some major projects under construction in Mohali.