Jalandhar, September 21
The record rise in stock market has pushed up real estate prices in major cities of Punjab by an unprecedented 15 per cent during the past two days.

Though the prices now hover between five to 15 per cent at different places in the state, real estate experts say the hike could touch 20 per cent in the next few days if the Sensex continues to rise. However, some other property dealers contend that the hike is “a bubble which could burst anytime,” adding that the price hike was “a mere coincidence.”

But information collected by The Tribune reveals that the Sensex’s upward spiral has indeed made a big impact on real estate. According to sources, after earning huge profits, a large number of investors have started buying land which is considered a safe investment.

The rush for real estate is also evident from the sudden spurt in insertion of advertisements by buyers in vernacular and other dailies. These advertisements have doubled over the last couple of weeks when the Sensex started its bull run.

“Yes, I feel that there has been over 10 per cent hike in property prices in the Doaba region only during past two days and it could be linked to the shooting Sensex,” said Mr Charanjit Singh Channi, a major real estate dealer in Jalandhar.

Otherwise too, the prices have been going up in the past two months, not only in major cities like Amritsar, Ludhiana, Jalandhar, Bathinda and Patiala, but also in smaller cities of Doaba like Phagwara, Banga, Phillaur and Hoshiarpur due to investments by NRIs, he added.

According to Mr Shital Vij, a leading exporter and a businessman having interests in real estate, both commercial and non-commercial prices have jumped between 10 to 15 per cent. “I have never seen such a sharp rise in the past one decade in any part of Punjab or Haryana. In Lajpat Nagar itself, residential plots have seen a hike of nearly 15 per cent and I feel this is linked to Sensex.”

However, Dr Balraj Gupta, another real estate player here, had a slightly different opinion. He maintained that linking the sudden Sensex spurt and land prices was “beyond comprehension”.

“There are no major advancements except in IT and exports. Power sector infrastructure is bad. So, the Sensex jump in any such circumstance could prove to be dangerous, particularly if there is a sudden fall of 200-400 points,” he added.

He said that more than the Sensex factor, increased foreign investments may actually have fuelled the rising prices in real estate.