If you are looking for a house in the hills, you could try your luck at Rishikesh, Uttarakhand. A dip in prices of apartments — to the extent of 20-30 per cent — will allow you to get better value for your money today than one year ago. One year ago, builder apartments in Rishikesh cost Rs 2,400 per sq ft to above Rs 4,000 sq ft. Today the rates have come down to Rs 1,700 per sq ft to Rs 4,000 per sq ft.

While prices of apartments have tumbled, those of plots have increased, chiefly on account of lack of availability. In an upmarket locality such as Veer Bhadra Road, the price ranges from Rs 10,000-20,000 per sq yd. In less upmarket areas such as Laxman Jhula and Shyampur, the price is Rs 4,000 per sq yd. A year ago, it was Rs 3,000 per sq yd.

What accounts for the current slowdown in Rishikesh’s real estate market? The most important factor is that speculation by investors had driven prices up too high. Says Gupta of Satyam Properties: “Earlier, rates of apartments had gone up too high, so a correction was bound to take place.” Stringent approval norms from the state government have also dampened sentiments. The rules say that people not domiciled in the state cannot buy more than 250 sq yd of agricultural land. As a result, developers from outside the state are finding it difficult to get approvals. Also, currently conversion of land use from agriculture to residential has come to a complete halt.

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