BPTP sells Rs 1,600 cr worth housing projects in six months

NEW DELHI: Real estate firm BPTP has sold properties worth Rs 1,600 crore during the first half of the current fiscal from its three housing  projects in Faridabad in the national capital region.

On the back of improved sentiment in the property market, BPTP has sold nearly 7,000 units in these three projects, part of a 1,900 acre integrated township ‘BPTP Parklands’.

“All the three projects are completely sold out. We have sold more than 6,000 independent floors since April in two projects. The company has also sold about 800 premium flats,” BPTP Director Sudhanshu Tripathi said.

The company has earned revenues to the tune of Rs 1,600 crore by selling these units, he added.

Asked about investment on these three projects, Tripathi said it would be close to Rs 1,000 crore. The company would complete these projects within two years.

He said the end-user demand for affordable housing have increased over the last six months and this reflects in the number of units that company has been able to sold between April and September.

“Developing independent floors is cheaper by about 40 per cent than constructing high-rise buildings, which we passed on to the customers,” Tripathi said.

Besides, he said the Haryana government’s recent decision to allow separate registration for independent floors resulted in higher sales.

Other real estate developers, including DLF, Unitech, Jaypee Greens, have also reported robust sales in their housing projects.

Source : http://economictimes.indiatimes.com/markets/real-estate/news-/BPTP-sells-Rs-1600-cr-worth-housing-projects-in-six-months/articleshow/5136168.cms

Omaxe to launch four housing projects

NEW DELHI – With the housing market slowly picking up, realty major Omaxe Ltd is planning to launch four projects shortly, a top official said here Tuesday.

“We are planning to launch four projects in the next two to three months with an investment of about Rs.1,500 crore,” Rohtash Goel, chairman and managing director of Omaxe, told reporters on the sidelines an event here.

“The company is planning to raise about Rs.2,500 crore from these projects,” he said.

The projects will be launched in Faridabad, Indore, Allahabad and Chandigarh. The company has already acquired land for construction.

All these projects will be completed in 30-36 months, depending on clearances.

“Last year was really painful, but this year the demand is improving. Buyers are returning to the market and we are expecting good sales this Diwali,” Goel said.

http://blog.taragana.com/n/omaxe-to-launch-four-housing-projects-180596/

Affordability trap

Before the great economic doom caught up with the economy in general and the real estate sector in particular, life for developers was relatively cushy. High-priced houses were being hawked as if there was no tomorrow. But when tomorrow did come, there were many lessons to be learnt. The foremost among them being this: a residential project should appeal and target the majority to be successfully sold out. Real estate developers learnt this concept of ‘affordability’ only after a large number of their premium and luxurious residential projects failed to take off and many others had to be tweaked in order to cater to a wide spectrum of end-users.

Over the last one year, developers of all hues have announced residential projects in the affordable category. These projects, which were launched in different parts of NCR (national capital region) reported quick sales within days of their official announcement.

Consider this: DLF sold its phase-I of the Capital Greens project located in the heart of Dehi within two days of the launch, Jaypee sold its residential project Aman in Noida within a day of the official launch. BPTP reported brisk sales for its Park Floors project in Faridabad. Similar has been the case with residential projects launched by Omaxe.

The developers claim that the end users have finally come out of their hibernation. Sales figures provided ballast to their claims.

Yet doubts remains about the timely completion of projects. Many affordable projects which have been launched and successfully pre-sold, do not either have the mandatory environmental clearance or have not received orders for the change in land usage required for residential development.

“Many developers miscalculated the time lag between the soft launch, and actual delivery. Some of the projects monitored by us are already delayed by a year or so,” Ajay Dabas, director of Gurgaon-based consultancy Certes Realty, told FC Estate.

The developers do not wish to delve too much on these aspects. They concede, however, that mandatory clearances are a matter of concern for them. “A project’s delay does affect our reputation. But as these clearances are given by various governmental agencies, which take their own time, there is very little a developer can do to ensure speedy clearances,” admitted an NCR-based developer on conditions of anonymity.

However Tanuja Pradhan, national head of the global real estate consultancy Cushman & Wakefield, holds a divergent view. “The affordable projects have been launched by the same developers who have various stalled projects in their kitty. They are under pressure to complete them.” She added that it would be too early to say that the projects are being delayed: “Even if delay takes place, developers are willing to compensate with a penalty amount payable on per sq ft basis.”

In fact, a closer look reveals that similar factors lie at the roots of the present-day crisis in real estate.

Circa 2004: Project after project was being launched albeit in the premium category with a price tag of Rs 1 crore plus. ‘Income levels are increasing at a fast pace’, ‘the average age of the home buyer has come down drastically’, ‘NRIs will be our target customers’, were some of the rationales doled out while launching these projects.

This was also the time when Rs 1 crore became the base value while talking about the price of a house. Ironically this was also the time when real estate deals started happening only between reckless investors (read speculators).

These projects too did not have the mandatory clearances. People were lured to invest money in realty projects to make a fast buck. Prices were appreciating within a matter of weeks. But as this appreciation was bereft of any real buyers, be it resident or non-resident Indians, the developers soon felt the pinch. The weeks after collapse of the erstwhile Lehman Brothers saw developers of all hues being gripped by a severe financial crunch.

Intense analysis and introspection into what went wrong followed. Dwelling deeper into the causes the sector soon found the mantra of all ills, affordable housing!

Akin to the phoenix rising from ashes, developer after developer began announcing projects in the affordable category. So even as a couple of years earlier ‘premium’, ‘luxury’, ‘exclusive’ and ‘Rs 1 crore’ were the catch words, they have been replaced by ‘inclusive’, ‘affordable’ and ‘Rs 1 lakh. How times change!

The transformation and change of heart has been often been touted as a learning curve for the real estate sector. The sector has found its place and would emerge stronger in a short time, has been the argument. In fact, a recent Knight Frank survey points out that it is the average tenant households staying in their current residence for the last two-and-a-half years who are driving the demand for affordable houses. These buyers perceive Noida, Ghaziabad and Gurgaon as the most favoured destinations for living.

A large number of affordable projects have indeed been launched in these cities. Interestingly, with inevitable delays, the affordability of projects are also at risk. “Projects were launched with the popular tag of “affordable” but the hidden costs and delays would amount to over-runs for the end buyer in many cases. Coupled with the fact that many developers insisted on a lock-in period and no cancellation for 12-15 months, consumers are not very happy too,” argued Ajay Dabas.

The Knight Frank survey also revealed that the developers have to pay external and internal development charges to the government which ultimately, are passed on to the consumer thus increasing the overall cost of a house. “The EDC and IDC costs coupled with the high transaction cost and stamp duty can go as high as Rs 350-400 per sq ft which are transferred on to the end user by the developer,” says the report.

Counters Dabas: “Many developers who had priced their projects at high rates were forced to re-launch with a lower price tag. That signalled the increase in demand. ”

However, most are really not affordable owing to the many hidden costs and spiralling charges of external and internal development charges, parking etc, which constitutes nearly 25 per cent of the base price.” He further adds that there is hardly any project which has been launched in the recent past in the truly affordable gross cost of Rs 20-22 lakh.

Yet another concern which warrants attention is the diversion of funds which have been garnered from the investors for a specific project to other incomplete projects of the company. The developers remain tight-lipped over the issue of fund diversion towards completion of other projects and only say that their affordable housing projects will be completed on time.

However, a couple of years earlier, funds were diverted towards purchase of land and building land banks.

So if the developers divert the funds mopped from their ‘affordable housing’ projects towards completion of earlier projects and miss on the deadlines promised in their brochures, the sector would fall into a deeper mess than at present.

Industry body Assocham had recently mooted the idea of having an escrow account, which can ensure that payments received from the buyers is utilised towards the construction and development of the said project.

“Very few projects are funded through deposits into the escrow accounts. In its absence, the buyer would remain at the mercy of the developers, till the validity of the lock-in and payment commitments,” said Dabas. He added that payments made against project “A” can legally be used by the recipient for other purposes too, since it is legitimately accessed.

However, R Nagaraju, general manager corporate planning of Delhi-based developer Unitech, said that an escrow account for all projects will make it difficult to simultaneously manage various product portfolios of the company. He further reasoned that subsidising a low-profit project with that of high profit projects is a commonly accepted business practice.

Nitty-gritty aside, the end-user who puts in his hard-earned money into buying a house would want to move in it as promised by the developer.

Whether the delay happens due to governmental apathy or the lack of business acumen on the part of developer, the sufferer ultimately remains the end-user.

Source:http://www.mydigitalfc.com/real-estate/affordability-trap-171

Naharpar in Faridabad: The next big realty destination

Naharpar in Faridabad is new realty destination in NCR. This promises to be yet another upcoming land of dreams. Jokes apart, not too far in time,  Naharpar can be compared to places like Gurgaon and Noida considering that the overall development here is going on at a rapid pace. Realtors say it is becoming an important destination. The best thing about Naharpar is that realty prices are affordable here.

The current position is if you drive down to this place from Delhi, the only roadblock seems to be at the Badarpur border due to the perpetual traffic snarlups . However, as Hindustan Constructions Co Ltd (HCC) has begun work on the construction of a flyover at Badarpur border, connectivity problem will ease for sure. And, the Badarpur border flyover is not the only reason for real estate developers thronging this place. Other developments taking place in the vicinity include the Taj Expressway (near Sector 80), and a highway starting from Kalindi Kunj and running parallel to Mathura Road that will bypass the city – it will be a kind of a peripheral road around Naharpar area.

It should be noted that after the development of Gurgaon, HUDA is now focusing on the development of Faridabad, the forgotten industrial town. HUDA is also widening the existing bypass at Sector 37, which includes the construction of a flyover over it. Municipal Corporation of Faridabad (MCF) has notified Sector 79 in the area as a commercial district.

A few concerns of the buyers will be the development of sector roads in the area. Regarding this, the government has imposed Section 17(4) of Land Acquisition Act for compulsory acquisition of the land falling under sector roads. One more concern was the increase in external development charges (EDC). In Gurgaon the EDC has increased but in Faridabad, since no external development has taken place in the new sectors, the decision of a revision of EDC has been kept in abeyance.

If officials are to be believed, the greening of the place is also being taken care of. “We have reserved a whole area, Sector 52A in Gurgaon as the green area and we are also taking care of the greening of Faridabad,” says a HUDA official.

Sectors 75-78 and Sectors 80-89 have been earmarked as residential sectors in Naharpar. Though infrastructure is not in place, once that is taken care of, this is going to be a very good location. “Prices of plots, which are mostly available in resale in Naharpar sectors range between Rs 9,000 and Rs 12,000 per sqyd. For flats, the rate is approximately Rs 1,800 per sqft. The rate of an independent floor of 300 sqyd is around Rs 27 lakh. “I believe more such options will come up in this area,” says P Mishra, real estate consultant at Sainik Estates.

He says, “Once Badarpur flyover opens, the access will be more easy and the plan to get Metro here in Phase III will provide a boom for property  development. The freight corridor is also in the vicinity with the catchments area being Faridabad, and coupled with a planned HSIIDC’s commercial hub near Faridabad will further add up to the importance of the place in realty terms. With several shopping malls under construction , Faridabad is likely to have more than 40 such hotspots over the next few years.”

No doubt, while there is hardly any infrastructure here today, we can take comfort from the examples of Indirapuram and Greater Noida, which used to be neglected areas a few years ago, but are now bustling with activity.

It has been the lot of Faridabad that despite being an industrial city with nearly 300 large and 10,000 small-scale industries, it has always been underpriced.

But hopefully, the situation will change in the future if all these developments take shape. As you visit the area you will notice that Naharpar is a vast virgin tract that has opened up for development in recent times. BPTP has a major portion of land in this area, around 1,500 acres. Other developers present in the area are Omaxe, Puri, SRS, and RPS, among others.

Realtors believe that as the area gets decongested, corporates will move towards Faridabad given the high rates at Jasola. “One can get good return by investing in property here, but only in the long term. One should not invest with a short-term frame in mind. For end users it is good as prices are in the affordable range and once the development in and around the area takes place, prices will definitely go up,” adds Mishra.

Fact file of Naharpar
Residential sectors – Sectors 75-80 and 80-89 Sector 79 earmarked as commercial district All the sector roads will be 30-45 metres wide Sector 79 being 60 metres wide Internal roads in Naharpar will be 24 metres wide For Sectors 75 and 80 the state government has acquired land, HUDA will do development here Sector 81 has a notified SEZ by BPTP.

They are awaiting clearances for it BPTP has got a power station of 30MW sanctioned for Sectors 75-76 . They have applied for a 50MW substation for Sectors 82-89.

Source : http://economictimes.indiatimes.com/Markets/Real-Estate/Realty-Trends/Naharpar-in-Faridabad-The-next-big-realty-destination/articleshow/4970262.cms?curpg=2

Haryana eases building norms, makes room for cheaper homes

New Delhi:  Homebuyers can now look forward to buying homes for as low as Rs 4 lakh to Rs 16 lakh in Gurgaon, thanks to a recent policy initiative by the Haryana government. The state government’s new scheme caps the price of the homes built by developers in return for permission to builders to make more housing units of smaller sizes in the same area.

Developers say the scheme will help launch new projects and increase cashflow . “Projects under the scheme would give minimal margin. Nevertheless , developers would be encouraged to launch homes under the scheme, as there is a great demand for low-cost homes,” says Navin Raheja, chairman of Delhi-based Raheja Developers that plans to shortly launch some projects in Gurgaon under the scheme.

The incentives for developers include a relaxed density norm (from current 250 people per acre in Gurgaon to 600 people per acre) and higher ground coverage area from 35% to 50%. “The move to relax density norms will help us build smaller homes and thus make them more affordable ,” Unitech head of corporate planning R Nagraju said, adding that it was impossible to build homes of less than 1,500 sq ft on average under present density norms. Under the new scheme, a 10-acre plot will be able to house over 1,200 dwelling units as against 450 units at present, Mr Raheja estimates.
A larger ground coverage means concrete structure could occupy larger area on the ground thus lowering project costs. Construction cost is usually lower in low-rise buildings.

Under the scheme, which will be open for developers until November 20, the low-cost homes with a minimum carpet area of 25 sq mt (approx 350 sq ft) will have a maximum price tag of Rs 4 lakh all over the state. Dwelling units with a minimum 48 sq mt (approx 700 sq ft) carpet area, defined as affordable category by the government, will be sold for Rs 16 lakh in Gurgaon-Manesar urban complex, Rs 14 Lakh in Faridabad, Panchkula and Ballabhgarh complex and Rs 12.50 lakh for rest of the state.

Below poverty line (BPL) families as well as the class IV staff of the state government will be eligible for the Rs 4-lakh homes, which will be at least 15% of the total dwelling units built in a project. The allotment will be made through a draw of lots and allottees can’t sell their property before five years of possession.

Haryana government’s new scheme caps the price of the homes built by developers in return for permission to builders to make more housing units of smaller sizes in the same area

Incentives for developers include a relaxed density norm (from current 250 people per acre in Gurgaon to 600 people per acre) and higher ground coverage area from 35% to 50%

Under the new scheme, a 10-acre plot will be able to house over 1,200 dwelling units as against 450 units at present.

Source : http://content.magicbricks.com/haryana-changes-building-norms-to-make-room-for-cheaper-homes

SRS Group launches SRS Royal Hills Affordable Homes

After the unprecedented success of the SRS Pearl project in Faridabad, SRS Group, one of India’s leading real estate developers with business interests in real estate and township development, multiplex, retail and hospitality has formally announced the launch of SRS Royal Hills. Located at Sector 87, Greater Faridabad is a Group Housing project will feature affordable apartments spread across a sprawling area of 45 acres in the plush new sectors of Faridabad. All required approvals have been obtained by the company and actual construction has started at the site.

Dr. Anil Jindal, CMD, SRS Group, said, “Our core aim is delivering townships complete in all aspects for peaceful and happy living at extremely affordable prices. Our commitment reflects in every minute detail of SRS Royal Hills, be it the design, the material, the finish, the landscaping and just about everything. We have done some very serious planning by bringing together the finest architects and designers to ensure a construction that is not only aesthetic, but safe as well. We are confident that our customers will appreciate the calm and serenity that SRS Royal Hills offers them.”

The SRS Royal Hills will have apartments with two, two + one, three and three + one bedroom options, the sizes of which will range from 1025 sq ft to 1650 sq ft. These apartments are affordably priced at Rs. 19.99 Lakh onwards. The price includes one covered car parking and 1KVA power backup installation. The apartments will also have 24-hour water supply and backed up by low-cost and effective maintenance. Housing loans for SRS Royal Hills apartments are available from Union Bank and LIC Housing Finance.

SRS Group seeks to attract both investors as well as home seekers to this landmark residential complex built in harmony with acres of peace and serenity. Considering that all the earlier projects of SRS Group in Faridabad have met with phenomenal success and the last project, SRS Pearl, sold out within about a month, the location of SRS Royal Hills is once again expected to be a major draw for interested buyers because of the facts that Faridabad has the distinction of being the 6th fastest growing city in India and is the closest location to Delhi, Noida, Greater Noida in NCR.

“We are confident that the buyers will find our projects to be extremely promising because of the facts that the elevated corridor of NH-2 will be completed by 2010 and Metro Connectivity will be extended till YMCA by 2012 enabling Faridabad to emerge as the fastest growing city in the NCR in near future. Also, the upcoming International Airport in Greater Noida will prove to be a boon to the city,” Dr. Jindal further added.

SRS Royal Hills will be attractively landscaped and designed keeping in mind a typical Indian family’s needs and comforts. The most distinguishing feature of the project is that it will have 70% green coverage with landscaped podiums and will also introduce Sky Gardens, a new concept that will have well cultivated gardens on the roofs of the buildings.

SRS Royal Hills will have an earth quake resistant structure with environment friendly waste disposal and rain water harvesting systems. The project will have 100% power backup for common areas with well detailed parks for children and other areas for recreation. SRS Group also plans to have a Shopping Centre inside the complex itself. SRS Royal Hills will have restricted entry for a safe, secure and pollution free environment.

Source : http://www.webnewswire.com/node/465385

Raheja Developers plans to develop serviced apartments in Delhi, Noida and Faridabad

According to a report in The Financial Express, development of serviced apartments in major metros is the latest trend in the Rs 10000-Crore real estate sector. Top builders aim at supplying 100 per cent service apartments to attract tourists and business travellers.

Delhi-based Raheja Developers is planning to venture into the development of serviced apartments in India, for which the company is planning land deals in Delhi, Noida and Faridabad. The move coincides with the Commonwealth Games 2010.

Navin Raheja, Managing Director, Raheja Developers, said, “In the next one year, we will launch 150 units of serviced apartments in various sectors of Gurgaon to cover the huge shortage of hotel rooms and apartments for tourist and business travellers. The demand for serviced apartments is suddenly high in the National Capital Region (NCR) because of the upcoming Commonwealth Games. We would be offering 25 per cent lower room rents, an alternative option to steep hotel accommodation. The area would vary from 400 sq ft to 600 sq ft and would be extremely competitive in pricing.”

Serviced apartments are fully furnished, ready-to-use apartments, usually 300

Source : http://www.hospitalitybizindia.com/detailNews.aspx?aid=5849&sid=1

Ambuja Realty to execute Rs 4,000 cr housing projects

Ambuja Realty Development has planned to execute projects worth Rs 4,000 crore in the next five years. According to Harshvardan Neotia, company’s chairman, all options would be kept open for raising funds for the projects. The company has kept options open for divestment in the closely held company.

He informed, “IPO or any other means to raise funds would depend on several conditions like market response, project schedules, booking, bank credit and capital market conditions. If the situation demands, we are open to raise funds from the market, but there is no plan as of now.”

Gurgaon, Faridabad to be developed as green cities
The Haryana government has planned to develop Gurgaon and Faridabad as green cities.

Haryana chief minister Bhupinder Singh Hooda said that the project meet the energy challenges, reduce dependence on fossil fuel, expensive oil and gas for energy and also to promote increased use of renewable energy. “The state government would be assisted in preparation of a master plan for increasing energy efficiency and renewable energy supply in these cities, besides having in place institutional arrangements for implementation of the master plan,” Hooda said.

These will be the first cities in Haryana to be brought under the development of solar cities programme, launched by the new and renewable energy ministry.

Oakwood plans apartment with five-star facilities
Oakwood Worldwide, a leading player in the service-apartment segment, has announced plans to open 11 five-star temporary housing facilities across the country by 2012. The locations for its facilities would include Thiruvananthapuram, Chennai, New Delhi, Hyderabad and Ahmedabad. Vikas Kapai, country general manager, Oakwood Worldwide, said “These properties are under construction. Meanwhile, we have also signed 11 deals with real estate developers for the new constructions. It would come up with two more properties in Mumbai, and two in Chennai in the next one year.”

Realtor to develop vaastu-compliant township
Kolkata-based Shristi Infrastructure Development has planned to develop a mega integrated township with the name of Shristinagar at Asansol, West Bengal.

The vaastu-compliant project, with built up area of 6 million sq ft, will offer 2,400 apartments, in addition to plots, group housing structures, bungalows, row housing and premium residential apartments. Keeping options open for people who would prefer community living and yet want to develop a dream home. We will develop vaastu-compliant houses for 5,000 families at Shristinagar, spread over 90 acres,” said Hemant Kanoria, director, Shristi Infrastructure.

RICS to launch professional courses in realty sector
Royal Institution of Chartered Surveyors (RICS), the UK-headquartered organisation which trains professionals working in the land, property and construction sectors, has decided to start its professional courses in India.

Sachin Sandhir, MD, RICS India, said “We plans to start Centre of Excellence for Real Estate & Construction, for the development of specialised skills for professionals employed in the realty sector.” He said that the specialised courses in realty and construction management with durations of six months to two years.

Source : http://www.expressestates.in/full_story.php?content_id=93873

Omaxe scales New Heights

Omaxe Ltd has launched Omaxe New Heights, a residential project in Sec 78 Faridabad. Prices start from Rs 16.18 lakh and go up to Rs 25.23 lakh a unit to cater to the growing demand in the affordable housing segment, according to a press release.

Omaxe New Heights is a multi-storeyed Group Housing complex to be completed within 30 months from the commencement of construction.

Omaxe New Heights comprises of 2BHK (bedroom-hall-kitchen), 2BHK + study and 3BHK + study ranging from 850 sq.ft to 1,100 sq.ft and 1,350 sq.ft. Omaxe will offer free club membership, power back-up, and an inaugural discount to first few buyers.

Faridabad is central to Gurgaon, Noida and Delhi with the proposed metro rail connecting residents to the capital city and satellite towns, the release said.

The Royal Institution of Chartered Surveyors (RICS) has welcomed the Real Estate Regulation Bill (Promoters and Builders – Regulation and Control of Activities Act) but finds it falls short on accountability of State Government agencies involved in clearing projects.

According to a press release from the RICS, it has represented to the Ministry of Housing and Urban Poverty Alleviation that the draft real-estate regulation Bill, which is to be a ‘model’ for States to follow, is a step in the right direction. It clearly spells out the liabilities of the promoter, builders and agents and provides for suitable action for not fulfilling these liabilities and for violating clauses under the proposed legislation. It takes into account appropriate checkpoints and stages of a property transaction where regulation is most required.

The Bill will provide customers with a recourse in case of delayed deliveries, non-execution of conveyance deed, substandard quality of construction or any other deviances from the specifications agreed upon in the purchase and sale agreement.

The Bill makes the purchase and sale agreement mandatory and specifies the contents — this would remove ambiguities and make the transaction transparent and developers accountable, the release said.

While the Bill provides for stringent action against developers for any violation or delays in delivery, the State government agencies or local development authorities are, however, kept out of the purview of the proposed Act.

This could result in the developers being penalised for delays in clearances from approving authorities. The Bill ignores the accountability of local development authorities by not acknowledging the delays in project clearances; by keeping them out of the purview or regulation under this Bill and by not making appropriate provisions to make these authorities also accountable for delays.

An apex statutory or autonomous body preferably with quasi-judicial powers should oversee the functioning of the State-level bodies. The role of the regulatory body should be comprehensive to ensure that policy reforms are undertaken at the State level; the body should promote best practices, e-governance and skill development initiatives and monitor the ‘affordable housing for all’ agenda.

The regulatory body should be responsible for a wide range of activities such as improvement in regulatory framework with respect to modifications in antiquated land laws, duty rationalisation, single window clearance and computerisation of land records, setting up of minimum quality standards of registration of builders, setting up of reliable industry wide database, adoption of uniform valuation practices and improvement in accounting quality, setting standards and sharing best practices to meet housing policy objectives.

According to RICS, pending an enactment of the law by the State governments, an ombudsmen be appointed in the interim period.

RICS is a professional body in land, property and construction with over 150,000 members in more than 146 countries practicing in a wide range of specialisations. RICS is governed by a Royal Charter approved by the UK Parliament which requires it to act in public interest rather than simply advancing the interests of its members.

JLLM expands services

International real-estate consultant, Jones Lang LaSalle Meghraj, has ramped up its presence in Ahmedabad. The office was provisionally established in 2008 and is fully functional to meet business demands, according to a press release.

The office will also service the business requirements of clients in other areas of Gujarat, such as Rajkot, Bhavnagar, Vadodara and Surat. “Most retail and finance business is based in Mumbai, while Ahmedabad has the developer and investor bases,” the release said, quoting Mr Ashutosh Limaye, Associate Director – Strategic Consulting, Jones Lang LaSalle Meghraj.

This office links the two and allows JLLM to service Gujarat’s strong NRI community, the release said.

It has put strategic consulting staff in place at the Ahmedabad office as this is the first step in any real estate or infrastructure development project. There is a lot of thrust on infrastructure development in Gujarat, which is among the States that puts in infrastructure and then effects planned development.

Source : http://www.thehindubusinessline.com/iw/2009/07/26/stories/2009072650651500.htm

Omaxe launches Omaxe New Heights in Sector 78, Faridabad

Omaxe Ltd, the leading real estate developer today announced the launch of comfortable, secure, friendly & affordable homes Omaxe New Heights in Sec 78, Faridabad. Start5ing from Rs 16.18 lac, Omaxe New Heights is aimed at catering to the burgeoning demand in the affordable housing segment. Omaxe New Heights, a multi storied state-of-the-art Group Hosing Complex with a project value of Rs 70 crore (approx.) is proposed to be completed within 30 days from the commencement of construction.

Omaxe New Heights comprises of 2BHK, 2BHK + Study & 3BHK + Study in an area ranging from 850 sq.ft. to 1100 sq.ft. & 1350 sq.ft. respectively. These apartments are priced strategically and are starting from Rs 16.18 lac to Rs 25.23 Lac. Omaxe will be offering Free Club membership, Power Back-up and an inaugural discount to first few buyers.

Omaxe New Heights will have the facilities like Club with Gymnasium & Swimming Pool etc. 24X7 Gated security, power backup, optional car parking space, landscaped greens offering comfortable and secure ambience at an affordable prices. All the apartments will come fitted with vitrified tiles in all the bedrooms, electrical and other fittings.

Ideally located in the fast developing Sector 78 of Faridabad, Omaxe New Heights is at an extra advantageous position as Faridabad is central to the cities of Gurgaon, Noida and Delhi. This proposed Metro rail will provide faster & smoother connection to the capital city & other satellite towns around Delhi.

The elevated expressway on Badarpur border and proposed FNG expressway connecting Faridabad to Noida & Ghaziabad will surely be a boon to the Faridabad’s connectivity and will have and edge about the other NCR towns. Thus along with the better connectivity and infrastructure Faridabad will be a more decongested city with less dependence on private transport and easy approachability to neighboring cities & towns.

Source  : http://www.equitybulls.com/admin/news2006/news_det.asp?id=57194

Go and grab your dream home

A house for Mr Surinder Sharma  will now cost less with markets correcting approximately 10-30 per cent in Delhi NCR, Mumbai, Bangalore and Chennai. The next three months, say real estate watchers, are the best time to close a deal.

Where property buying goes, the buzz is that it’s no longer the worst of times. For instance, real estate worth Rs 50 lakh six months ago, will now cost 40 lakh. And with interest rates down to 8 per cent from 13-14 per cent, what the consumer shells out effectively is Rs 32 lakh. In other words, this is the best time to buy.

Indirapuram based finance  professional  Rakesh Mishra  started his search for a house four months ago.  He zeroed in on a project which was launched last month. It’s at a prime location, and comes for a good price. “With the Navratra discount, the house cost me Rs 26 lakh,” he says.

Deals like this are bringing realty back to life again. “This is the right time to do your research and consider buying a  house at the right and real price. Developers are more than willing to give in to the demands of a serious buyer,” Dr. Devender Gupta CMD, Century 21 India. Many who aren’t buying are window shopping. Average buyer interest over the last two months has risen to 30-40 per cent. Experts anticipate an upward trend in the market between May and July. With prices rationalising in many pockets across the country, the dream house is looking affordable for a significant corpus of aspiring buyers. Those who have identified a suitable property and have the financial means to take the plunge should do so now. A deferred decision, say experts, might mean passing over the best bargains.

Developers are wooing customers like never before. “The buyers, chiefly end users are back into the market. There are realistic bookings happening today,” said Alimuddin Rafi Ahmad, managing director of prestigious ILD group. PK Jain,Executive Vice President,PNB housing finance Ltd agrees. “Developers this season are seeing a lot of inquiries, the phones have started to ring again and that is very encouraging. With interest rates dropping enough to take a home loan and prices correcting by almost 10-30 per cent, it’s a good time to get back to the market.”

Even top developers DLF and Unitech who focus on luxury apartments are now coming up with affordable housing projects. Rajeev Rai,vice president, Assotech group, says that the prices have corrected by almost 30 per cent. Developers are tailoring products according to customer needs across all segments, instead of the earlier stress on high-end housing.

Moreover, as Sunil Jindal,director, SVP group points out, “Besides the interest rates and prices moving downwards, consumer fatigue has also set in. How long will a buyer wait? He may as well come forward and buy.” The market is seeing a new movement because of the pent-up demand from end users —  people who typically plan to buy a property for their children and see a future in real estate, says an executive of Cushman & Wakefield. Those with a budget of Rs 20-30 lakh should seal the deal as any further correction is unlikely, points out Jindal.

According to Chaitanya Manohar, director & COO, L.J. Hooker India, Bangalore, “We have seen increased level of activity (enquiries) across Bangalore specifically in projects that are close to completion (possession in 6-8 months). There has been tremendous interest especially in the Rs 20-45 lakh range from first-time homebuyers.” Buyers today have plenty of choice; there are properties under construction for which possession is due in the next three to nine months. “He can expect reasonable returns as the market would be up and moving when he finally gets his house,” says Anil Makhijani of Mak Realtors of South Delhi.

So does that make it a bad time to sell? Well, perhaps. Rizwan, a senior manager with a job portal, recently sold his apartment in Faridabad for the same price at which he had bought it. “I had to dispose of the Faridabad house to take possession of my house in Indirapuram. The house cost me Rs 1,690 per sq ft two years ago. I did incur a loss in terms of the EMI and the foreclosure charges I had to pay the bank,” he said.The market is not favouring the seller, but he can use it to his advantage. He may be able to sell his house to move to a better location or upgrade from a two-bedroom house to a three-bedroom at the same price. A person who bought property more than 3-4 years ago may make a profit if he sells now

http://www.mynews.in/fullstory.aspx?storyid=22058

Housing Sector to Come up with 8,000 flats in NCR

In a move expected to give a big push to the housing sector in Gurgaon and Faridabad, the Haryana Housing Board is in the process of inviting expressions of interest for building 8,000 flats in these cities and some other places in the national capital region areas. This is in addition to the 38,000 housing units, majority of them in NCR, planned in the next two years. Under the latest project, the state will enter into an agreement with real estate developers to provide affordable housing to middle and lower middle class under the public private partnership mode.

“Since we do not have land in Faridabad and Gurgaon, we will be joining hands with private colonizers whose projects have been stuck due to the (economic) slowdown. We’ll prefer those who have the licence, and then those who have enough land,’’ said S P Gupta, chief administrator of the housing board. The announcement follows chief minister Bhupinder Singh Hooda’s assurance to developers that steps will be taken to counter the slump in the real estate market. It will also fulfil his commitment of providing cheap housing to locals, especially those in NCR cities of Gurgaon and Faridabad. Among the other areas selected for the project are Bawal (in Rewari district close to Gurgaon), Badhi (Sonepat) and Karnal.

Officials claim that around 828 units would come up at Badhi, a township to the north of Delhi. While the board is still working on the number of flats to be offered in Gurgaon and Faridabad, it plans to build 400 units for the lower middle class in Bawal. The housing board will share 50% cost of the project and forego profits. “We’ll also have some guidelines as far as profits of joint venture groups are concerned,’’ Gupta added. Earlier, the state had announced that as many as 38,000 houses would be built for all sections of society by 2011. Though the exact number of houses to be constructed close to Delhi hasn’t been worked out, it’s believed that most of these units will be in NCR where the demand is the highest.

http://www.indianrealtynews.com/real-estate-india/housing-sector-to-come-up-with-8000-flats-in-ncr.html

8,000 flats coming up in Gurgaon and Faridabad

CHANDIGARH: In a move expected to give a big push to the housing sector in Gurgaon and Faridabad, the Haryana Housing Board is in the process of  inviting expressions of interest for building 8,000 flats in these cities and some other places in the national capital region areas. This is in addition to the 38,000 housing units, majority of them in NCR, planned in the next two years.

Under the latest project, the state will enter into an agreement with real estate developers to provide affordable housing to middle and lower middle class under the public private partnership mode.

“Since we do not have land in Faridabad and Gurgaon, we will be joining hands with private colonizers whose projects have been stuck due to the (economic) slowdown. We’ll prefer those who have the licence, and then those who have enough land,” said S P Gupta, chief administrator of the housing board.

The announcement follows chief minister Bhupinder Singh Hooda’s assurance to developers that steps will be taken to counter the slump in the real estate market. It will also fulfil his commitment of providing cheap housing to locals, especially those in NCR cities of Gurgaon and Faridabad. Among the other areas selected for the project are Bawal (in Rewari district close to Gurgaon), Badhi (Sonepat) and Karnal.

Officials claim that around 828 units would come up at Badhi, a township to the north of Delhi. While the board is still working on the number of flats to be offered in Gurgaon and Faridabad, it plans to build 400 units for the lower middle class in Bawal. The housing board will share 50% cost of the project and forego profits. “We’ll also have some guidelines as far as profits of joint venture groups are concerned,” Gupta added.

Earlier, the state had announced that as many as 38,000 houses would be built for all sections of society by 2011. Though the exact number of houses to be constructed close to Delhi hasn’t been worked out, it’s believed that most of these units will be in NCR where the demand is the highest.

BOX

Flats planned by 2011.

Total no : 38,000

EWS : 15,340

LIG : 7,800

MIG : 7,100

HIG : 4,800

Others: 3,000

Source : http://timesofindia.indiatimes.com/NEWS-City-Delhi-8000-flats-coming-up-in-Gurgaon-and-Faridabad/articleshow/4786929.cms

Indian cities should make space for low-cost housing

In the next six years, urban India needs to build at least 10.5 million houses to meet the demand for housing that accompanies rising levels of urbanization. With the financial crisis bringing affordable housing back on the radar of promoters and builders, it is worthwhile to estimate the extent of unmet demand for low-cost houses.

As much as 65% of the demand in India’s top 112 cities is for houses measuring less than 1,000 sq. ft. This translates into approximately 6.8 million new homes. Interestingly, about 70% of the demand would be for houses with two rooms or less. This means 7.4 million new houses need to meet these specifications. This is because 90% of the urban households have incomes under Rs5 lakh per annum.

Thus, the demand for majority of the urban housing would be in this category. The rising slum and squatter settlements in cities is a clear sign that this demand is not being met through formal housing stock.

Greater housing demand originates from two sources—those who have arrived earlier and residing in makeshift tenements, shacks and slums, and those who are expected to migrate into these areas. The requirements are different. Typically recent in-migrants require smaller areas, but as they stay on, their families join them and expand, and their incomes and wealth also increase. This translates into requirements for marginally larger carpet areas.

The cities that have the largest requirement for such housing are those that attract migrants—Mumbai and New Delhi and their surrounding areas, Bangalore, Pune, Surat, Coimbatore, etc. These cities either saw large migration in the recent past but are slowly stagnating (for instance, Mumbai), or continue to have great levels of in-migration (New Delhi, Surat and Pune, for example). Either way, these cities are already bursting at their seams.

The need to expand opportunities in other cities is paramount, as is the need to get a better grip on land utilization within these cities. Typically, government bodies have almost monopolistic control over land, and this is a serious problem as land management is riddled with bureaucracy and poor governance. What is needed is a much more aggressive and forward-looking approach that looks at the requirements for each city specifically. Ensuring there is regular availability of land for low-cost housing within a city is among the first and foremost steps.

The supply side constraints for provision of low-cost housing are well known and these problems have been made worse due to the rapid increase in real estate values.

As a result, the largest action in urban housing has been in suburban areas surrounding the large cities— rural Bangalore, Ranga Reddy near Hyderabad, the Gurgaon, Noida, Faridabad and Ghaziabad quadrilateral surrounding New Delhi, and Howrah and North and South 24 Parganas near Kolkata are well-known examples. The bulk of new housing is occurring on converted agriculture land around these cities.

This need not have been the case, had local governments been more responsive to emerging requirements. Unfortunately, unplanned and unstructured development is a hallmark of urban India and is unlikely to change very soon. Demand Curve is a weekly column by research firm Indicus Analytics Pvt. Ltd on consumer trends and markets.

Source: http://www.livemint.com

Realtors cash in on the great Indian affordable home rush

A fortnight ago, Jaypee Greens started bookings for its housing project — Aman — at the 70-acre residential township on the Greater Noida Expresssway. All the 3,000 flats, priced at Rs 2,100 a sq ft, were sold out by the first day. Exactly a year ago, the Jaypee Group company was offering flats along the same expressway for Rs 4,500-6,000 a sq ft.

Two days later, another Delhi-based developer, BPTP, announced that it had received bookings nearly four times more than its offer of 1,000 flats at its 1,500-acre township at Faridabad.

Welcome to the great Indian home rush at a time when the glitter of the premium segment has faded. Real estate companies are now going to the other extreme and falling over each other to offer affordable housing at a price range of Rs 5 lakh to Rs 50 lakh.

The varied pricing is a function of affordability being a relative term, depending on the location. For instance, a Rs 50 lakh apartment in Mumbai is considered affordable housing. In a city like Nagpur, the same price will qualify for premium housing. There is no confusion, however, with the huge target consumer base: 23 million Indians earning at least Rs 5,000 a month who do not own a house but aspire to do so, according to a study by Asish Karamchandani, CEO of Monitor India, a management consultancy firm.

That’s a good enough reason for Unitech’s GM (Corporate Planning) R Nagaraju to say the company would be “churning out affordable flats just like a factory produces goods”.

The country’s second-largest developer has shelved all premium housing projects for now. Poor response from buyers also prompted the company to recently convert its luxury project, Unitech Grande in Noida, to a mid-income project.

If Jaypee and BPTP hit the jackpot in the National Capital Region, others weren’t far behind. The Lodha Group, for example, has broken the sub-Rs 2,000 per sq ft price barrier in Mumbai by launching a 6,500 unit affordable home project at Dombivli at Rs 1,998 a sq ft. The integrated township will be spread over 125 acres with 3,500 houses.

The scene is the same elsewhere in the country. Bangalore-based CSC Constructions has launched three projects in the IT city, offering 2,000 apartments at Rs 5-13 lakh. Encouraged by the response, CSC has six more such projects in the pipeline.

Chennai hasn’t escaped the low-cost housing bug either. A subsidiary of Puravankara Projects, for example, sold 2,500 such homes in the Tamil Nadu capital within days and is now planning to develop 60 million sq ft of such properties over five years across five cities.

There are no firm estimate of the total number of such affordable flats on offer, but back-of-the-envelope calculations show top developers such as DLF, Unitech, HDIL and others are planning over 55 million sq ft of new launches this financial year, around 90 per cent of their total number of new projects.

According to a study by PropEquity Research, 74 per cent of residential apartment sales in Mumbai in the first quarter of 2009 came from the low-cost segment. The trend was the same in Gurgaon and Chennai, too, where the corresponding numbers were 60 and 58 per cent. In all these cases, the apartment sizes were reduced and the average prices corrected 15-25 per cent, PropEquity data show.

This shift towards low-cost or affordable housing started after home sales fell up to 70 per cent in the early part of this calendar year from their peak in 2007-08. “People were earlier going for aspirational houses, as their salaries were going by 20 to 25 per cent every year. But now they have realised that salaries are not going to go up any time soon and those who have reached the top levels have already bought houses,” said Anshul Jain, chief executive officer, India, DTZ International Property Advisors.

Source : http://www.business-standard.com/india/news/realtors-cash-inthe-great-indian-affordable-home-rush/360492/

In real estate slump, developers pin hope on service apartments

Chandigarh After being launched in cities like Delhi, Bangalore and Pune, service apartments will soon be a reality in Tier II and III cities.

Considering the growing number of corporate honchos visiting the tri-city, Ludhiana and Amritsar, real estate developers will soon introduce service apartments in these cities.

Another reason that has evoked developers’ interest in service apartments is the slump in the real estate industry.

The negligible sale of apartments in the tri-city has forced them to convert these into service apartments.

Service apartments, which are fully-furnished with all facilities, are an alternative to five-star hotels. Unlike a normal apartment, a service apartment is given only on lease or rent and is a good option for travelling professionals and nuclear families.

Soon, Omaxe will launch a few limited service apartments in Omaxe Royal Residency on Pakhowal Road, Ludhiana. These apartments, with an area of 650 square feet each, will be launched in July.

“Ludhiana has marked its presence in India as a commercial city. It has many industries, which result in a number of corporate heads visiting this city. These apartments will offer them a nice and cheaper accommodation compared to hotels,” Avneet Soni, director of Omaxe Limited, said.

Manoj Kashyap, regional director of JLL Meghraj, added: “As there is no movement in the real estate market for the last many months, developers are trying various options keeping in mind the demand. The firm is working on the modalities and research on behalf of several national developers eager to launch service apartments in the region.”

Developers plan to launch service apartments in other cities in the region too. “The company is in the process of launching these apartments in Chandigarh, Faridabad and a few other cities in the near future,” Soni said.

Real estate experts feel since there is a demand, the concept of service apartments will soon be adopted by other developers.

“Many nuclear families like mine would prefer to stay in a serviced apartment while looking for a house in a new city,” Sanjay Rai, manager in an IT company in Chandigarh Technology Park, said. “They are good for those seeking transit accommodation as they have all facilities. And it feels much like living at home.”

Omaxe has, meanwhile, tied up with a leading hospitality management company in the National Capital Region to maintain these apartments.

Explained Service apartments
* A service apartment is given only on lease or rent
* Like hotel rooms, these apartments are fully-furnished and come with a host of ready facilities and services
* These apartments are maintained by hospitality management companies
* They are a better and cheaper alterative to five-star hotels

Realty rates will fall by 35% over 3 years: Report

Real estate prices are set to fall the same way they went up over the past few years.

Residential property prices have already corrected by over 25 per cent in the last eight months but have failed to enthuse buyers. This will pull prices down further.

Property prices in key Indian cities will decline by another 35 per cent in the next three years, a report by brokerage firm Edelweiss Capital noted. “Property prices increased sharply over the past six to seven years, rising 3.4 times in normal term (quoted price) and 2.5 times in real term (transaction price) over 2001 prices. We expect a price correction of 48 per cent in normal term and 58 per cent in real term,” the report said.

“Appetite for real estate has diminished significantly with foreign investors; developers are highly leveraged and their inability to serve the debt obligation raises a threat,” it said.

“Prices have fallen 25-30 per cent and have bottomed out in most places,” said Anuj Puri, chairman, Jones Lang LaSalle Meghraj. “Over the next 12 months, expect another 10-15 per cent drop in markets where there’s excess supply and where prices are too high.”

“Prices have corrected by 10-25 per cent,” said Aditi Vijayakar, executive director (residential services), Cushman & Wakefield India. “In high-end properties, it would correct by another 5 per cent and by 5-10 per cent in suburban markets over the next 12 months.”

Property brokers are feeling pessimistic. Gurgaon has seen a drop of 25 per cent in prices of ready-to-move properties and brokers say there’s no demand for under-construction properties either. It’s no better in Delhi, Noida and Faridabad.

Source : http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName=Cricket&id=5319baf0-89d2-4f94-825f-b9a414552c78&Headline=Property+rates+going+south%2c+slowly

Slowdown force developers to look for affordable housing

To beat slowdown in the economy, which has affected the demand for premium segment houses, developers have shifted focus to affordable apartments in  the range of Rs 16 lakh to Rs 30 lakh in the National Capital Region of Delhi. This, combined with fall in interest rates, has lowered the cost of ownership of a house considerably.

The current trend has given a good opportunity to middle-income endusers to buy a house. Developers have also launched a number of projects in the affordable price range in areas like Indirapuram, Vasundhara, Vaishali, Crossings Republik on National Highway 24, Raj Nagar Extension on NH-58 in Ghaziabad, Nahar Paar area in Faridabad, Greater Noida and Gurgaon.

In Raj Nagar Extension on NH-58, in particular, condominiums have been launched where two-bedrooms apartment of 1,000 sq ft are being offered in the price range of Rs 16 to Rs 20 lakh. At the current home loan rate of 8%, the EMI on a loan of Rs 15 lakh for 20 years will work out to Rs 12,500.

Similarly, in other areas also, apartments are being offered at Rs 2,000 to Rs 2,500 per sq ft. To make houses affordable, developers are now building two-bedroom apartments of the size of 800 sq ft to 1,000 sq ft. Until some time ago, the base model of a two-bedroom apartment used to be of 1,200 sq ft to 1,500 sq ft floor area.

The reduction in size of the apartment led to substantial fall in the cost. In fact, the net cost of a two-bedroom has declined by almost 50% because of the combined effect of reduction in per sq ft price and the size of the apartment. Earlier, the cost of entrylevel two-bedroom apartment of 1,200 sq ft at Rs 2,800 per sq ft used to be around Rs 33 lakh. But, now, a similar apartment is available for Rs 16 lakh.

Till the first half of 2008, builders used to sell two-bedroom apartments on the outskirts of NCR in the price range of Rs 2,800 per sq ft to Rs 3,500 per sq ft. The prices of new projects in the same area have fallen to Rs 1,800 per sq ft to Rs 2,500 per sq ft.

At the same time, as interest rates have also fallen from 11% to 8%, the EMI on similar apartments, which could be taken as cost of ownership, has come down from Rs 34,000 to Rs 13,400 only. However, new apartments will certainly not have similar specifications like marble flooring and modular kitchens, which were being offered in the earlier apartments.

But, the reduction in the specification has improved the affordability of a buyer. Experts say such specifications could be added in the apartments later also, when one can afford them easily.

Apart from this, many builders have offered special schemes to improve the affordability of buyers. A number of developers are asking for only 15% to 20% as down payment and asking the buyer to pay the rest of the amount after two years when possession of the house will be given. Such schemes save buyers from simultaneously paying rentals of their existing houses and EMIs for their new houses.
Many people are still not buying houses because of the uncertainty in job market. Because of the slowdown, many companies are resorting to job cuts. This has worsened the situation. Developers are trying to address this problem also. To counter this, some real estate companies have offered to pay EMI for six months to buyers, if the buyer or his/her spouse were to lose his/her job. The logic for this is that within that period the buyer/spouse may get another job.

As inflation slips down further, the chances of interest rates too falling further are high. Besides, to revive the demand in economy, government is determined to bring down interest rates in the system.

In fact, interest rates have fallen to an all-time low in developed economies. The trend is likely to continue for some more time. Therefore, it is advisable for a buyer to go for floating rate interest rates to benefit from the fall in interest rates in future. However, they should remain alerts and as soon as interest rates start to firm up, they should shift to fixed rate of interest rates.

In the present scenario, consultants say the endusers instead of waiting to buy at the lowest level, should take a plunge if they get a good bargain. Instead of waiting for the so called ‘right time to buy’, which is almost impossible to catch, buyers should bargain for a ‘right choice’.

Source : http://economictimes.indiatimes.com/Markets/Real-Estate/News-/Slowdown-force-developers-to-look-for-affordable-housing/articleshow/4328263.cms

Price rise options open for realtors

Hit by vanishing sales, developers may be cutting property prices – but they are leaving a window open to hike the rates later.

Despite guaranteeing ‘ escalation- free’ prices, most developers are working in a weasel clause which gives them the right to hike prices at any point till the final installment is paid and the property actually handed over.

Buyers are often forced to pay an increased amount before the receiving possession of the property. The escape clause is worded more or less similarly in all purchase agreements, and is usually tucked away in the fine print towards the end of the contract.

Mail Today has copies of the agreement forms issued by several builders like BPTP, KLJ and Jaypee. The clause states that the basic sale value is ” subject to revision/ withdrawal, without notice at the sole discretion of the company, if there is an increase in the prices of raw materials like steel, cement etc or any other cost or any other charges etc.” This effectively gives the builder to increase the price at any time, using any pretext like a rise in input costs etc.

However, the real aim is to be free to charge more in case the market recovers and prices start moving up again.

BPTP and KLJ are developing residential projects, Parklands and KLJ Greens, respectively in Faridabad while Jaypee Group is coming up with its massive integrated township Jaypee Greens in Noida.

In all agreements, this clause is loaded in favour of the developer.

The clause also says the company’s decision is “final, conclusive and binding on the intending allottee(s).” There is no mention of how input prices are calculated, and which particular price shall be used for purposes of calculating the socalled escalation.

Amit Raj Jain, vice- president marketing- BPTP Limited, tried to play down the significance, saying that it was just legalese. “This kind of clause in the application is just mentioned and is not enforceable under any circumstances. It never actually happens. But in general if a developer raises the basic sale price, it is increased by two to three per cent stating various reasons like escalation in the input costs.” But builders are using it to hike prices post- sale. One such escalation has been observed in Wembley Estate, a premium residential project located Guragon- Sohna Road in the Rosewood City being developed by Eros Group. The company has sent letters to allottees demanding more money saying that there is an increase in the input cost.

An allottee of Wembley Estate who received such a letter from Eros Group said, “The project has been delayed by eight to nine months. The company was supposed to hand over the possession by March 2008. But then, the company issued a letter asking to pay more.” Commenting on the plight of such applicants, a Noidabased realtor said, “Actual users are not in a position to fight legal case with the developer, as they fear of losing the money spent on the property till date. Developer on the other hand escalates his prices when the project is in the final phase of completion. By this time, the project’s reputation in the market improves. The project sells because the structure is ready and can be seen.”

Source : http://businesstoday.digitaltoday.in/index.php?option=com_content&task=view&id=9910&sectionid=4&issueid=48&Itemid=1

RBI’s measures can boost demand for property

The slew of measures announced by the Reserve Bank of India (RBI) last week have brought some relief for the cash-strapped real estate sector. A cut More Pictures of 100 basis points (bps) in both repo and reverse repo rates and restructuring of commercial loans have come as steps which can boost demand.

In fact, it is felt that government giving priority to housing loans up to Rs 20 lakh will bring affordable housing into focus once again. But in what way will these benefits be passed on to consumers? And how much will these measures help in reviving the realty growth?

Sachin Sandhir, MD & country head, Royal Institution of Chartered Surveyors (RICS) India, feels that the RBI’s move will help reposition the sector as a priority one and bring it on par with other sectors.

“The across-the-board rate cuts by the RBI is expected to bring in more liquidity into the system by reducing the cost of borrowing for both corporates and retail consumers. Overall, this is a positive move as it signals the easing of interest rates, thereby increasing demand. This will infuse more liquidity into the system and lead to reduction in interest rates, eventually helping the market to expand and diversify.”

What also comes as a positive measure is that housing loans below Rs 20 lakh will be categorised as a priority sector. This means that consumers can now get double benefit in terms of a reduced interest rate as well as more affordable pricing. Hence, properties in the range of Rs 25-30 lakh will become more accessible for the end-user.

“Buyers now have the advantage of getting better prices for their dream homes. Locations in Delhi NCR such as Ghaziabad, Faridabad, Manesar, Sonepat and others will be conducive. Also, developments surrounding tier II & III cities such as Mohali and Zirakpur and all outlying areas of Hyderabad, Bangalore, Kolkata and Pune will be viable locations,” says Rohit Malhotra, CEO, Realtech Group.

Targeting tier II and III towns as well as NCR are locations where you could look to avail of the loan advantage, feels Vijay Jindal, CMD, SVP Builders India. “End users were waiting for a reprieve in home loan interest rates. The measures announced by the RBI will be a big help. The benefits will clearly be passed on to the consumer as developers have already started targeting the affordable bracket for the end-user and will further step up their efforts now,” says Jindal.

Clearly, the consumer stands to gain in the wake of the recent RBI measures. So what should be the buyers’ outlook now? Experts say the disadvantage of waiting too long is that one could lose out on best properties as well as on lower rates which will not hold once the market regains equilibrium.

“The reality is that a reduction in interest rates along with a 20-25% correction in property rates is an ideal situation and the prospective home buyer should take advantage of this situation as the resulting EMI will be a lot more affordable,” adds Sandhir.

In fact, people familiar with the trends feel that the present situation is ideal for a buyer looking at a value buy. “The situation today is More Pictures buyer-friendly, especially for the end-user group. Developers are keen to sell their projects and hence are offering the best value deals.

Banks are also supportive in lending and extending various long-term schemes. The market is good for projects which are ready-for-possession. One can get attractive deals at best locations as the developers want to sell their unsold stock,” asserts Punit Beriwala, MD, Vipul.

However, even though end-users have incentives right now to buy, real estate players still have challenges to face. For most realty firms facing an acute credit crunch, the recent initiatives mean a limited impact. Rohtas Goel, CMD, Omaxe, feels that the current move will solve some of the current liquidity crisis for many real estate companies.

“Restructuring of loans will alleviate the liquidity problem for the moment. That I think is a positive development for many of the struggling real estate companies today. It is a small point but it is a significant point.”

Beriwala, too, is cautious and feels the benefit to the real estate sector is yet to be seen. “Much depends on the banks to announce a policy change to ensure that this extra money is pumped into the realty sector by making funds easily available to developers. We also look forward to banks reducing the home loan rates which will bring the customers back to the market.”

The housing sector is one of the most significant sectors in the economy. These steps, no doubt, will offer some relief to those looking at value-for-money buys. With the latest RBI initiatives, the market is in all likelihood expected to see a revival of demand in the near future.

Source : http://economictimes.indiatimes.com/Features/The_Sunday_ET/Property/RBIs_measures_can_boost_demand_for_property/articleshow/3834335.cms

600 yard plots in Dharuhera and Bhiwadi

Delhi
Recently, many new options have opened for a person scouting the market with a budget of Rs 80 lakh. A few years ago, you could buy two houses in the suburbs like Indirapuram and Vaishali. However, with the arrival of the occupation dates for these properties, quite a few large properties here fit this budget. You can get four-bedroom ready-to-move-in apartments for a little more than Rs 75 lakh, and some of the projects that are to be delivered two years from now would even offer you penthouses for this budget.

In Gurgaon, you need to look at the projects coming up in the new residential sectors. This budget can offer you independent bungalows (not row houses) as well as penthouses. Even in existing sectors, Rs 80 lakh is a good budget to buy on the Gurgaon Sohna Road.

For investors, the Nahar Par area of Faridabad is still open where this budget can buy 2/3bedroom apartments. Though the delivery of these flats is still two to three years away, with the level of infrastructure development taking place here, this area should integrate very well with Delhi and Gurgaon.

For those interested in plots, Dharuhera and Bhiwadi offer some excellent options. Land rates here are hovering between Rs 9,000 and Rs 15,000 per sq yd. So, plots ranging from 600 to 800 sq yd are fair game for this budget. But if you do want to be in Delhi, fully-furnished HIG, DDA would be on your menu.

Mumbai
The amount can get you a 1 BHK flat in city and 3 BHK flat in the suburban zones. The areas in between will get you on an average 2 BHK flat. South gives you the least options as it is expensive and as you go north, space increases keeping the amount constant. The reason is the proximity and infrastructure. Even at this price, many localities in south Mumbai are out of reach despite slow down. A few suburban pockets on western line are also in that club.

“One would get 1 BHK flat in all upper middle class localities in the southern parts of the city such as Sikka Nagar, Prarthana Samaj, Dhobi Talao, Agripada, Tardev etc. However, the golden triangle zone will be out of reach at this budget.” says Shridhar Malwe, a local estate agent. “One can get 2 BHK flat in southern Mumbai if one is ready to compromise on neighborhood, location etc.” adds Shridhar.

The areas in central Mumbai where one can find 2 BHK flats at this price are Chikhalwadi, Grant road, Bombay Central, Clare Road, some pockets of Mazgaon and Byculla etc. These flats would be usually in middle class localities. Recently, property prices in most of the stretch from Kala Chowky to Elphinstone Road, have gone up as high rises are replacing the old chawls here. One would get only 1 BHK flat at this budget in these towers but in other older buildings, one may get up to 2 BHK flat.

The areas such as Dadar, Matunga, Sion, Mahim etc in North-Central City would get spacious 1 BHK flat in decent pockets while interiors may fetch 2 BHK flat. Going further north, Chembur and Powai may get you 2 BHK flat. However, in some of the newer projects at both these places, one will have to settle with 1 BHK flats.

Source : www.expressestates.in

Realty bitten by slowdown bug

How has the meltdown impacted one of the country’s hottest realty destinations?

Going by the steep downturn in the applications for residential and commercial projects in 2008, the countdown seems to have begun.

Against applications received for 3,038 acres for group housing in Gurgaon in 2007, the figure is a mere 403 acres in 2008. Against applications for 1,016 acres for commercial projects in 2007, the number this year has plunged to 363 acres.

While it has also to do with area available for high-rise group housing, and commercial projects under the new Gurgaon-Manesar master plan nearing their earmarked limits and most of the prime land having been taken, the spell of hectic construction activity in Gurgaon is likely to continue in the years to come.

In fact, the number of licences granted for group housing, plotted colonies, IT parks and commercial projects in the Gurgoan-Manesar belt this year itself is a whopping 134, even as some out of a total of 237 licences issued ever since the realty highpoint of 2005 have still to come on ground.

However, the demand slowdown and liquidity crisis has resulted in developers not being in a hurry to get layout and building plans approved and being content at holding on to their land banks.

“Developers are adopting a wait-and-watch approach. The projects may take off once the liquidity and demand scenario seems favourable,” says S.S. Dhillon, Director, Haryana Town and Country Planning Department, adding that the real impact of the slowdown will only manifest itself once there is no progress in projects which have been granted licences. Also, against the norm earlier, when there were a large number of smaller players in fray, it is now only the bigger ones with some resilience.

In the case of Faridabad, Haryana’s next realty hotspot, the boom has finally gone bust. Against 180 applications for group housing in 2007, the figure this year is just 43, while in the case of commercial projects, the number has plunged from 75 in 2007 to nil in 2008. Even in case of plotted colonies, the applications received are a mere 40 against 468 last year. Even the fate of many out of the 62 projects (group housing, plotted colonies, IT parks and commercial projects) granted licences in Faridabad since 2005, including 13 projects this year, now seems uncertain.

Says Rajeev Talwar, group CEO of DLF, “The situation is a wake-up call and the government needs to do a lot more than what it has done so far.” He recommends a two-pronged approach for alleviating the current downturn in real estate. “The home loan buyer has to be empowered by lowering the interest rates and the real estate developers have to be given a level playing field. All projects should at least be judged on the basis of merit.”

Source : www.expressindia.com

REALTY BITTEN BY SLOWDOWN BUG

How has the meltdown impacted one of country’s hottest realty destinations, the great Gurgoan? Going by the steep fall in the number of applications from developers in the year 2008, one could say the countdown may well have begun. Against 3,038 applications received for group housing in Gurgaon in the year 2007, the figure is a mere 403 in 2008. Also, against 1,016 applications for commercial projects in 2007, the number this year has plunged to 363, according to figures of the Haryana Country and Town Planning Department.

While it has also to do with area available for high-rise group housing and commercial projects under the new Gurgoan-Manesar master plan nearing their earmarked limits, the spell of hectic construction activity in Gurgaon is likely to continue in the years to come. In fact, the number of licenses granted for group housing, plotted colonies, information technology parks and commercial projects in the Gurgoan-Manesar belt this year itself is a whopping 134 even as some out of a total of 237 licenses issued ever since the realty highpoint of 2005 have still to come on ground.

The slowdown
However, the demand slowdown and liquidity crisis has resulted in developers not being in a hurry to get layout and building plans approved and being content at holding on to their land banks.

“Developers are adopting a wait-and-watch approach. The projects may take off once the liquidity and demand scenario seems favourable,” says S S Dhillon, director, Haryana Town and Country Planning Department. dhillon adds that the real impact of the slowdown will only manifest itself once there is no progress in projects which have been granted licenses.

Also, against the norm earlier, when there were a large number of smaller players in fray, it is now only the bigger ones with some resilience.

Rajeev Talwar, group executive director of DLF, marks this as the worst financial crisis to hit India which is “affecting every sector in the country, not just real estate”.

“This situation is a wake-up call and the government needs to do a lot more than what it has done so far. Mere cuts in SLR and repo rates are not going to lessen the threat of massive closures and huge layoffs.” He proposes two ways of alleviating the current downturn in real estate. “Empower the home loan buyer by lowering interest rates and give real estate level a level playing field. All projects should at least be judged on the basis of merit,” he said.

Faridabad
In the case of Faridabad, Haryana’s next realty hotspot, the boom has finally gone bust. Against 180 applications for group housing in 2007, the figure this year is just 43 while in the case of commercial projects, the number has plunged from 75 in 2007 to nil in 2008. Even in case of plotted colonies, the applications received are a mere 40 against 468 last year. Even the fate of many out of the 62 projects (group housing, plotted colonies, IT parks and commercial projects) granted licenses in Faridabad since 2005, including 13 projects this year, now seems uncertain.

Chandigarh
While land prices in Chandigarh have been recording a new high with every government auction the huge number of private luxury housing projects that have come up in and around the city in the last three years, are finding few takers.

The most hyped luxury project, Pride Asia, a joint venture luxury project of Parsvnath Developers and the Chandigarh Housing Board, is also in trouble with no jump in its sales figure in the last few months and just over 10 per cent of its total dwelling units have been sold so far.

Aimed to cash in on the information technology industry (it is in the IT Habitat area of Chandigarh) and rich Punjabi diaspora, its luxury Rs 6-crore villas and Rs 4-crore penthouses have failed to attract buyers while its one/ two/ three/ four and five-bedroom apartments in the price band of Rs 52 lakh to Rs 3.8 crore are the only ones to be sold off.

Uppal’s high-end Rs 1.6 crore to 1.75 crore luxury flats in Chandigarh have also got a lukewarm response, while big names such as Emaar MGF, TDI, Unitech, Pearls Infrastructure, Ansals and Westend Group which have rolled out high-end projects in Mohali are all been hit by slowdown in demand.

The worst hit, however, are small developers with projects in the periphery areas of Chandigarh such as Zirakpur, Dera Bassi and Kharar. From distress sale of flats to defaults forcing banks to recover property, the crisis has hit both builders and buyers alike in these areas. Many projects are running behind schedule and deadlines for handing over of flats are being extended.

“Many had booked as many as five flats to cash in on the realty boom of 2005-06 but now flats in these areas are available even below their cost to the builder in these areas now,” says the Punjab Builders and Colonizers Association.

“In case of Zirakpur and Kharar and the new sectors of Mohali, there were more investors than end users. Since investors try to wriggle out when real estate markets crash or liquidity crisis worsens, prices of flats crash too. The meltdown has just begun and not only buyers but also many end users may sell off their properties due to high bank interest rates and salary and job cuts,” says Sanjay Arora of Chandigarh-based property portal 123yards.com.

But amid the lows and ups, property prices within Chandigarh have been able to weather the storm. “Chandigarh property prices have not been hit by the recession due to limited availability of land and the good withholding power of its people. They will not sell property till the price is good. Also, those purchasing property here are mostly end users willing to shell out the market price knowing its not going to fall anytime soon, maybe just get higher,” adds Arora.

Source : www.expressestates.in

Real-Estate Major Piyush Group Forays into Construction Business

Piyush Group, a leading real-estate developer has announced the launch of its latest venture Piyush Developers Ltd; thus marking the foray of the company into construction business.

Piyush Group, a leading real-estate developer has announced the launch of its latest venture Piyush Developers Ltd; thus marking the foray of the company into construction business. Through this enterprise, Piyush Group will be addressing the real-estate industry’s need to improve delivery timelines and quality of the building construction in house.

“Construction is a viable sector, now and for the foreseeable future and the launch of Piyush Developers fits perfectly well with our diversification and investment plan. We have decided to create our own construction company because it will allow us to better control the cost and quality of a project.” said Brig. D Satyanarayana (Retd.), Executive Vice President – Projects, Piyush Group.

In the initial stages of its operation, Piyush Developers will handle prestigious projects worth several crores including Piyush City in Bhiwadi, Global i in Faridabad and Piyush Heights in Faridabad. “We have acquired state-of-the-art batch mixing plants and machinery like transit mixers, concrete pumps, etc. for construction related processes. We also have the right kind of expertise which would enable us to fulfill the desired requirements of other companies as well.” Brig. Satyanarayan said.
Recently, Piyush Group has also formed a company named PCL Concrete Pvt. Ltd. with the aim of achieving fifty ready-mix concrete plants in the NCR region in near future. The company has already set up two such plants which are presently fulfilling the needs of several projects undertaken by Piyush Developers. According to Brig. Satyanarayan, “Within five years, Piyush Developers plans to achieve tenders for big infrastructure projects such as flyovers and airports.”

About Piyush Group
Piyush Group is one of India’s young & fastest growing companies with a significant presence in real estate development, infrastructure, hospitality, entertainment construction and financial services. The company, which has a projected turnover of US $ 400 million, aims to develop world-class Integrated Townships, infrastructure projects and commercial establishments to suite the tastes of all cultures across all strata of society and eventually help to improve the lives and aspiration of people. They have successfully implemented projects like Piyush City in Bhiwadi and Piyush Heights in Faridabad. The company has also laid the foundation for its commercial IT project, Global i, in Faridabad.

Sourece : Newswiretoday.com

IT project from Piyush

Piyush Group has announced the launch of its commercial IT project Global i in Faridabad. Spread over 3 lakh square feet area, the net worth of this ambitious project is Rs 210 crore. It is expected to be ready by 2010. The company has received the letter of intent and sanction of the construction plan for the project. Apart from the services and facilities, the complex will have five well-equipped service rooms. Interestingly to attract more investors for this project, the company is also promising a 12 per cent return on investment assured for 9 years.

Real-Estate major Piyush Group launches Rs. 210-crore IT project in Faridabad

Leading real estate developer Piyush Group is about to announce the launch of its commercial IT unit named ‘Global i’ in Faridabad. The net worth of this ambitious project, spread over 3 lakh square feet area, is Rs. 210 crores and it is expected to be ready by 2010.

Following the procurement of the Letter of Intent and sanction of the construction plan, work has commenced on this project.

“Faridabad is a relatively untapped commercial market and its easy accessibility from Delhi makes it a lucrative investment option for domestic as well as multinational companies. The tremendous initial response that Global i has garnered shows that this hitherto unknown city is on its way to become a major IT hub of NCR. Two floors of this six-storied park have been sold-out even before construction started.” said Mr. Anil Goel, Chairman, Piyush Group.

Designed by renowned architect Hafeez Contractor, Piyush Group’s ‘Global i’ has been designed on an eco-friendly pattern and provides for an infrastructure platform that is customized to meet all the needs of the IT industry. Apart from state-of-the-art offices, this IT unit of Piyush Group also boasts a 3 level basement parking system, a spacious cafeteria as well as a health club and spa.

“We are also planning to set-up five well-equipped Service Rooms within the park so that visiting guests of the tenant companies have a comfortable place to stay.” Mr. Goel added. A 12% return on investment has also been assured for 9 years to attract more investors for this project.

‘Leander Sports’ ties up with Omaxe

Ace tennis player Leander Paes today joined hands with real estate developer Omaxe Ltd to design and manage fitness centers in latter’s five townships in North India.

‘Leander Sports’, the company promoted by Paes, today signed a memorandum of understanding to provide the concept and design of health clubs, spas, meditation centers, yoga cells, gyms, sports complexes in the upcoming five townships of the developer.

“This is an extension of my new career, where I will provide my expertise to design this health centers and sports fields for hockey, golf and tennis courts. It will help in providing the next generation an opportunity to keep fit and healthy,” Paes told reporters here.

According to the MoU, ‘Leander Sports’ would design and manage the health and sport centers in Omaxe’s integrated townships coming up at Ludhiana, Indore, Yamuna Nagar, Noida and Faridabad.

It is not a revenue sharing tie-up, but ‘Leander Sports’ would only charge a consolidated fee for all the five projects, the ace tennis player added.

“This partnership would help us in providing healthy living designs to our residents. Though we have tied up only for five projects, but we are looking forward to other projects also,” Omaxe Chairman and Managing Director Rohtas Goel said.

When asked if both the companies would have an exclusive tie ups for Omaxe’s all townships, Goel said: “We definitely want to extend this association with Leander to all our 50 township projects.”

Besides, ‘Leander Sports’ is also constructing two sports centers- one at Bangalore in 20 acres of land and the other at a 20-acre area in Pune, Paes said.