5 reason you should buy a property in Noida

After the utterly clumsy place of the capital region of India, Delhi and the densely overcrowded place for offices, Gurugram people are quite as well left with a choice of Noida. This is the reason that the residential sector of Noida Real estate is highly increasing since the past two decades. Noida is considered as a cheap and easy city to live in provided its easy connectivity to Delhi, Faridabad, Agra, and Haryana.
Noida has been considered as the most affordable place to live in given the high number of affordable flats here. There are many reasons that add to the fact but if we want to name a few we can easily do so by guiding the basic points.
The first one can be the extremely well maintained and thoughtfully built infrastructure. The infrastructure that has built the city is the basic reason for more and more citizens coming here. The excellent infrastructure makes it capable of being the next best thing in the world. The availability of lands for residential, commercial as well as infrastructural facilities is something that makes it top the list leaving Delhi and Mumbai behind.
Second reason is the reputed faces of developers who are eyeing in this place to make their new launches. Builders like Supertech, Unitech, Ansal, Emaar, MGF and now Godrej has made their new launches in Noida and Greater Noida. These flats suffice all the segments of the society and promise to be affordable with the availability of luxury.
Third and the most important reason that helps people to relax and invest in these lands is new rules against Forgery. New and quick rules have now been applied to the forgery cases of land. Earlier, the land disrupts were handled by the court’s jurisdiction which always tends to stretch such cases to a number of years, but now a sigh of relief has approached when all these cases are being handed over to the stamps jurisdiction.
The fourth best reason would be the easy connectivity of Noida to other regions like Delhi, Ghaziabad, Gurgaon, Agra. The major plus point Noida has is the rapid availability of Metro from Delhi to Noida. Also, the ongoing construction of Metro from Delhi till Greater Noida via Noida will add a golden point to all these and make it more convenient for those who travel till Greater Noida and will also decrease the traffic on roads.
The fifth point is for those who have a property in Noida or are living on rent flats in Noida. The major availability of marketplaces throughout Noida makes it very easy and accessible to live here.

Greater Noida real estate to work more on affordable housing

The Real Estate’s new Union bill spells happiness for Greater Noida homebuyers, as the recently rectified budget will give more powers to those who want to buy plots in Greater Noida and will also keep in mind the concerns of the builders to a major extent. The Real Estate Regulatory Bill directly aims at bringing transparency in the real estate sector. However, the announcements were being planned from a long time but the finance minister made the right time to announce all of it with the Union Budget of 2017. However, after demonetisation, this area has more supply for residential units and less investors but after the affordable housing schemes it is turning out to be the opposite. Most of the housing units sold in Greater Noida now have a lot of takers but have less supply. Therefore, after taking some major steps a mega plan has finally been sorted out to cater affordable housing for all till 2022.
The budget is expected to establish state level regulatory authorities RERAs with whom developers have to register projects above a certain size. If this will not be carried out, the builders will have to pay major fines. The developers will now state all facts like possession dates, construction quality facts public on their websites so as to give clearer picture. The developers will have to focus more and more on the affordable housing. They will now be providing 3bhk flats in the price of 2bhk.
All these new rules are expected to set transparency in greater Noida properties. The Big Impact is that this will prompt homebuyers to purchase property without the fear of being cheated. This will bring in more creditability to investors and the belief to invest in the real estate sector. This will also give a clear legal recourse in case of any dispute or delay in the construction.
This has helped people who were interested in buying in Greater Noida as with this law the problems of the dust made by demonetisation will settle down and more over the development which tends to cater the needs which was stalled for a long time is finally getting its breath back. This is helping the Greater Noida real estate sector to become more transparent and the work has finally resumed and the building which were left unreconstructed the last quarter, are now coming to an end to supply its consumers their dream home.

Mumbai & Delhi; Top The List Of World’s Cheapest Cities

A recent survey reports that Mumbai and Delhi are included among World’s cheapest cities. Mumbai shared the top-spot with Karachi; while Delhi stood third.

According to a survey; recently conducted by Economist Intelligence Unit, top Indian cities Delhi and Mumbai have found place among world’s cheapest cities.

Mumbai tops the list of all least expensive cities of  the world.

Mumbai tops the list of all least expensive cities of the world.

Mumbai and Karachi; the financial capitals of India and Pakistan respectively, topped the list of the cheapest cities of the world. They were followed by the Indian Capital city New Delhi which was ranked third. Algiers, the Capital of Algeria and the Capital of Nepal Kathmandu were the other two world cities included in the top five cheapest cities of the world.

Recently Economist Intelligence Unit conducted a survey among world’s top 131 cities. The survey was based on the cost of living. The cost of living was decided on the prices of over 160 items. The list of the items included the transport-fares, utility service charges, and expenses on food and clothing.

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Real Estate Investment: Tier 2 Cities More Profitable

Real estate investors of India prefer to have real estate investment in tier two cities now. These developing cities offer higher returns for the real estate investors.
real estate investment in tier 2 cities

Real estate investment in tier 2 cities is more profitable as it offers higher returns.

The Tier two cities are more preferred by real estate investors now. These cities are noted for their faster development and this is the main factor that attracts the Indian real estate investors to these cities.

Real estate investors’ traditional approach to bigger cities such as Delhi and Mumbai shifts as they remain incapable of delivering higher returns to them. On the other hand tier two cities are emerging as better real estate destinations.

The cities with better job- opportunities are all the more preferred real estate investment destinations. Higher population inflow to the small cities like Pune and Gurgaon prompts the builders to increase the supply.

With the growth of population the commercial needs improve and so does the demand for commercial spaces. These cities better offer chances for business growth as well. All these factors have pushed up the real estate prices as there is an increased demand.

Real estate investment not in developed cities

Developed cities do not support Real estate investment as it offers only lower returns.

Leading real estate consultancy firm Jones Lang LaSalle India (JLL) reported that the cities like Bangalore and Chennai will grow along with the expansion of IT centers in the cities. The real estate consultancy firm highlighted the expansion plan of Wipro.

Wipro has recently disclosed their plan of expansion. The firm plans to expand their existing Bangalore headquarters and campus which at present has the capacity to hold 31,000 people. Another 25 lakh sq. ft. of area will be added to the current Wipro headquarters.

IT expansion is taking place in Hyderabad and Chennai as well. These areas’ growth will be dependent on the IT expansion. JLL India’s CEO Om Ahuja opined that the real estate prices in these cities will be more dynamic than in other cities. He added that trends of real estate supply will be different in these areas.

All these features tell the real estate investors to tap new and emerging markets. They can reap sizeable returns from these cities and so these cities remain hotter places to have real estate investment. In short prime real estate investments in tier 2 cities are easier way to become rich now.

Reliance PMS Launches Real Estate Oriented Fund

Reliance Capital prepares to launch its maiden real estate focused fund of र 1,000 crore by the end of the year 2012. Reliance Capital is owned by Anil Dhirubhai Ambani (ADA) Group. This maiden launch of Reliance Capital in the realty industry will be done under the surveillance of Reliance Portfolio Management Services (PMS). The new fund will aim at constructing residential properties.  The investment will be concentrated in the cities like Pune, Chennai, Bangalore, Mumbai and Delhi primarily.  Reliance selected these cities as the real estate markets of these cities are more firm and have an increasing value appreciation.

Government’s Surplus Land Selling Boosts Real Estate

The higher financial stress of the Government makes them think of selling or leasing of the surplus land. This will provide more land for construction in metropolitan cities like Delhi, Kolkata, Mumbai and other such notable cities of India.The decision will boost the real estate growth. Realty firms are sure to cast their hawk’s eye on this land and make the profit out of it. Continue reading

Delhi: Homes Sells Faster Than Mumbai

Mumbai may be second to Delhi in unsold homes, but it will take longer to sell them. Real estate developers in the financial capital must wait over three years to clear 1.13 lakh units or 120 million sq ft as high prices deter potential buyers, shows a study released by Liases Foras, a real estate rating and research consultant.

The study covers units in Mumbai Metropolitan Region (MMR) — including Mumbai city, Thane, Kalyan and Navi Mumbai — National Capital Region in Delhi, Pune, Hyderabad, Bangalore and Chennai. NCR, with 232.57 million square feet or 1.60 lakh units of unsold homes — roughly double Mumbai’s —will likely sell homes much faster, in 23 months.

“The NCR market is primarily an investor market and has very little comparison with Mumbai,” says Om Ahuja, chief executive officer (residential services) at Jones Lang LaSalle India. “The real estate market in areas like Gurgaon or Noida attracts a lot of money from neighbouring states like Punjab, UP and Delhi as people invest in residential properties.” Among the six metros, Pune homes will be sold the fastest, taking just 14 months to sell its 43.06 m sq ft at the current pace of buying. A steep rise in interest rates in the last 18 months was seen as the key reason for low sales as buyers try to avoid high home loan instalments.

The Reserve Bank of India cut key rates by 50 basis points last month, forcing lenders to lower their retail lending rates which could push sales.

 

 

Two Indian Real Estate Deals in Asian Top Ten list.

Two real estate deals in India — the sale of Leela Kempinski Kovalam and Noida’s deal with Wave Mega City Centre – have been ranked among the top ten in their categories across Asia according to a recently published study by Real Capital. Both deals took place in August 2011.

Real Capital tracks and analyses real estate deals worth over $10 million across apartments, hotels, retail, industrial, office and development projects over the world. The Purchase of Leela Kovalam by Saudi Arabia-based industrialist Ravi Pillai, which was pegged at about Rs 500 crore ranked 10th in Asia-list of largest hotel sellers.

Bangalore and Mumbai have been named among the most active Asian markets in the office space.

Delhi was ranked sixth and Mumbai eighth in the most active Asian apartment markets. Tokyo tops the list followed by Singapore, Hong Kong, Osaka and Beijing. While Chennai comes in at eighth position among active hotel markets, India did not rank in the big league when it comes to retail deals.

“India is a top focus for Realty Moghul” says Trump Scion.

Trump’s eponymous real estate group expects to sign multiple deals for Indian residential projects and hotel contracts over the next five years, despite a market riddled by regulatory uncertainty and bureaucratic red tape.

“India, among other emerging markets, is the biggest push for our organisation,” Donald Trump Jr, an executive vice president of The Trump Organization, said on Wednesday.

Trump, whose portfolio includes projects in South Korea and Turkey, in addition to hotels and skyscrapers in the United States, is close to signing a couple of deals with Indian developers, the younger Trump said without providing details.

“Equity investment will depend on individual projects and partnerships but first we would like to form relationships which allow us to understand the processes and spectrum better,” the 34-year-old said on the side-lines of a hotel conference.

The developer entered India last year with a joint venture partnership with Rohan Lifescapes to build a 45-storey luxury residential tower in Mumbai.

However, work on the tower, which will bear the Trump name but involves no equity from the U.S. developer, has been halted for about nine months since authorities said it lacked the necessary permits, a common problem in an industry wrapped in red tape.

Indian developers are often hit by changing regulations. In Mumbai, for example, the scrapping of a rule granting extra floor space in exchange for providing public parking facilities has meant many projects must reapply for clearances.

But Trump, whose father is worth an estimated $2.9 billion, according to Forbes, says the lure of an emerging India outweighs the regulatory headaches.

“The Indian market is starved for a good luxury product and it needs a brand like ours,” he said.

“I like the regulatory changes I am seeing. It may slow things down a bit but will create a level playing field and will help in eliminating the unknown for an outside investor coming in,” he said.

The company plans to focus expansion in the country on luxury residences and hotels, and would look at cities including Mumbai, Delhi, Bangalore and the state of Goa.

Some local players such as privately held Lodha Developers and Godrej Properties are emerging as strong brands in India’s luxury housing space, but the market remains fragmented.

And despite a slew of interest rate hikes that have cooled India’s overall property market and hit luxury developers particularly hard, Trump is bullish.

 

ICICI Bank and Sahara eye Parsvnath’s prime land in Delhi.

Real estate major Parsvnath Developers may soon be able to reduce a significant chunk of its debt, thanks to certain corporate giants showing interest in buying a prime piece of property it owns in the national capital.

The Sahara Group is engaged in discussions with Parsvnath to buy its commercial land near Connaught Place in New Delhi, according to sources. ICICI Bank is also among the contenders for the piece of land, it is learnt.

The 1.18-acre plot at Kasturba Gandhi Marg was bought by Parsvnath in 2008 for about Rs 200 crore, with the aim of constructing a retail-cum-office complex. But the realtor is now looking to sell it to cut mounting debt, currently at Rs 1,300 crore.

Although the Parsvnath management is looking for a price of Rs 700 crore, the interested parties are ready to sign a deal at Rs 600 crore, sources said. Property consultant Jones Lang LaSalle is advising Parsvnath on the deal.

Pradeep Jain, chairman, Parsvnath Developers, did not respond to repeated calls and e-mails. Mails to Sahara spokespersons did not elicit any response.

An ICICI Bank spokesperson said, “ICICI Bank has no plans to acquire this property.”

According to sources, ICICI is exploring the possibility of constructing a corporate house in the locality in partnership with Parsvnath, without acquiring the land.

Earlier, as part of its fundraising exercise, the company had entered into various deals with private equity funds.

In January 2011, Parsvnath signed an agreement with SUN-Apollo India Real Estate Fund LLC for an investment of Rs 100 crore in its premium residential project at Ghaziabad—Parsvnath Exotica. SUN-Apollo had acquired 49.9 per cent stake in the project SPV.

Then, the company sold a minority stake in Delhi-based residential project Parsvnath La Tropicana to JP Morgan for about Rs 150 crore. Through the deal, the previous investor, Red Fort Capital, made an exit. The company had plans to construct an office complex at Connaught Place along with the PE firm.

According to realty experts, demand for land at prime localities has risen as corporate houses look to move their headquarters to such locations.

Anuj Nangpal, director-investment advisory, DTZ India, a real estate consultancy, said, “Organisations are increasingly signaling their arrival or resurgence by moving their presence into the centre of metros. The branding benefit of such ownership of prime real estate far outweighs the costs. Further, employees are also increasingly assessing their jobs and future basis of their office infrastructure and the pride in occupying prime real estate clearly impacts long-term retention.”

Earlier, Business Standard had reported on the discussions being held by textiles major Alok Industries with various large corporate groups to sell its property at Peninsula Business Park in central Mumbai. Alok was looking at a deal in the range of Rs 900-1,000 crore.

Leela Kovalam, Noida, one of the top high-value sellers in Asia.

The sale of Leela Kempinski Kovalam was among the top 10 hotel deals in Asia during the past one year, shows data from the US-based research firm Real Capital Analytics.

Real Capital, which tracks and analyses real estate deals worth over $10 million across apartments, hotels, retail, industrial, office and development projects over the world, has also named Noida as a top site for sales in the development site category for a deal with the Wave Group for a mega mixed-use project. Mumbai and Bangalore also figure among the active office markets in Asia. In apartments, Delhi and Mumbai are part of the top league in the year ended March 31, 2012.

The Leela Kovalam deal, pegged at about Rs 500 crore, was the 10th in the Asia-list of largest hotel sellers during the one-year period. The Kovalam beach property was sold to Saudi Arabia-based industrialist Ravi Pillai last August.

The other big hotel players in Asia which sold properties at high value include Japan Hotel, LaSalle, Kingdom Holding, Hines and Shui On Group.

Even as Indian entities don’t figure anywhere in the top 10 global list vis-à-vis high value real estate deals in the financial year that just gone by, many of them have made it to the Asian hall of fame.

Noida, the industrial development area next to Delhi, is fifth in the development site sellers’ list in Asia. This was for a deal with industrialist Ponty Chadha-promoted Wave Group for the mixed-use project, Wave Mega City Centre, at an estimated price of $1.4 billion (about Rs 7,140 crore at the current forex rate), according to Doug Murphy, director (analytics) at Real Capital.

In the office space, Bangalore and Mumbai have been named among the most active Asian markets. “There were a number of locations for office sales in Bangalore and Mumbai, the largest being the Embassy Manyata Business Park transaction in Bangalore for about $537 million (Rs 2,738 crore) and Citibank building in Mumbai for about $224 million (Rs 1,142 crore),” Murphy said. Both transactions took place in August 2011.

Delhi and Mumbai are part of the most active Asian apartment markets. While Delhi is ranked sixth, Mumbai is eighth. Tokyo tops the list in high value apartment deals, followed by Singapore, Hong Kong, Osaka, Beijing, Delhi, Fukuoka, Mumbai, Nagoya and Kuala Lumpur.

India is nowhere in the retail top league where deals in Asia are concerned. Among hotels, Chennai is seen as an active market in the eighth position. Singapore leads as the most active hotel market in Asia, followed by Hong Kong, Shanghai, Tokyo, Beijing, Seoul, Osaka, Chennai, Kuala Lumpur and Suzhou.

Real Estate Sector in Bangalore may see 25 per cent growth.

The real estate sector in Bangalore has grown to a large extent in the past one year. In the year ahead, the city’s realty is expected to grow by 25 per cent, estimates the Karnataka Chapter of the Consortium of Real Estate Developers’ Associations of India (CREDAI).

“We are expecting the realty to grow by 25 per cent in the coming year. Last year too we have witnessed a similar growth,” said Sushil Mantri, president, CREDAI Karnataka.

As per studies conducted last year, the city is likely to absorb about 7.1 million sq. ft. of office space against a supply of 7 million sq. ft. While demand for office and commercial sales in the city saw a rise, residential sales remained slow.

Experts said that the city witnessed a great strength in high street leasing and rent, and capital value has increased nominally in a few sub-markets. Also, there was a rise in rental value as demand by retailers remained strong.

With commercial office space developers offering favourable options, predictions for 2012 are that several IT companies in the city will look at pre-leasing office space.

However, analysts opine that office space supply will outweigh demand.

“FDI in multibrand real estate is expected to catalyse a lot of demand from international retailers. International luxury brands will restrict their growth plans to Mumbai, Delhi and Bangalore,” states a projected report by Jones Lang LaSalle India, Realty Intelligence firm.

The report states that the mid-end and affordable housing segments will record healthy appreciation in capital value in short term from a low base.

 

Real estate may Feel Connectivity Pinch

Metro connectivity and property rates in the capital goes hand in hand , its just like they run on parallel tracks as right from the announcement of new metro connections , property rates follows an upward swing.

With Delhi metro gearing up for the Phase III construction that will cover areas like Vasant Vihar, Dhaula Kuan, Munirka , Kalka Ji , lajpat Nagar , Botonical Garden (Noida) , real estate prices are expected to see a major rise in the prices. Metro certainly affectes real estate as it is a major factor to provide a safe and comfortable mode of transport. People prefers homes situated near the metro stations. How ever since the prices have already increased so much that it will be difficult to say how much impact the new lines will have now. Consultants further says that properties which are located near the Metro stations will have the maximum increase in the real estate price.

The entire scenario can be explained in terms of a U curve where in right from the announcement of the projects the price tends to go upwards and then it declines when the construction is underway and again goes up when the project is complete. On an average , a property may see 20-30% increase in price over three years. Proximity to the station may also effects an increase of 35-40%. Due to increase in the rates of properties which are near to Metro stations , the Municipal Valuation committee constituted by Delhi Government has also adviced that the residential colonies within half a KM radius of Metro line would be upgraded  by one level since they have witnessed the maximum amount of Infrastructure development.

DDA Relaxes Norms for Installing Lifts

If you live on second or third floor in a DDA flat, then climbing those stairs is no more a back-breaking experience anymore. The DDA has eased the norms for installing lifts in its apartment blocks. The country’s biggest land development agency has been catering to Delhi’s housing needs for more than 40 years. Since, DDA structures have only 04 floors they do not have lifts.

Although flat-owners had so far been allowed to install lifts later on their buildings on their own, the procedure of getting permission was burdensome.  All the owners of an individual block, with eight to sixteen flats, have to agree to the proposal.

The new norm stipulates that lifts can be installed once most flat owners of the block agree. The consent of the ground floor owners is not required any longer. The cost of installing a lift is Rs 10-15 lakhs, which the flat owners would have to bear. The flat owners will have to apply for NOC to DDA for arrears. While applying for NOC, flat-owners will have to attain structural stability certificate from the registered architect.

Buying a House During Monsoon is Beneficial

The monsoon is usually considered as a lean season in terms of sales for the developers. It’s not just the weather that affects the purchase of property, but also because it is considered inauspicious to buy anything for about two weeks during this period (because of shraadh or pitrapaksh). Buyers prefer to wait till the festival season to buy real estate. So, in order to increase sales, developers are willing to offer ‘monsoon discounts’.

Many people postpone buying a house during these months. This adds to the existing inventory of the real estate developer. The builder, on their part, wants to get relieved from it so he can start a new project in the upcoming festival season. Also, they would need some liquid cash in hand for the new projects.

While only a handful of developers advertise it as a ‘monsoon discount’, most are willing to offer lower rates to serious buyers. The significant of discount varies for different cities, depending on how badly it is affected by the monsoon. So, in Mumbai and Kolkata the quantum of discount is likely to be higher than that in Delhi and Chennai. In Mumbai, a buyer can expect discounts ranging from 10-20%,  a Mumbai-based real estate marketing company.

Besides the entice of discounted property prices, buyers can also avail of the monsoon special offers on home loans by banks.

Brokers Hunt for Jobs as Slump Hits Realty Sales

NEW DELHI | BANGALORE: Broker in Bangalore bylane has just opened a stationery shop. He has named it ‘Smart Shop’, borrowing the name from the realty brokerage firm that he ran from the same premises until about two months ago. He switched to retail after his property business hit a rough patch following a slump in home sales. About 03-quarters of his revenues came from sale of apartments, the remaining from renting.

“With home sales dropping, it doesn’t make business sense anymore,” he says. It’s the same story in other big cities. In Mumbai, a mid-size broker has set up a small fast food joint to make ends meet. In Nagpur, a real estater has quit the real estate business and set up an ice-cream parlour. Their worries are not unfounded. While the large and established players in the property business have managed to stay, even during the slump, thousands of smaller players like brokers and agents are being forced to look for other jobs.

It also hit lakhs of people employed with such small outfits – each of which hires 5-15 people.With many brokers closing shops or reducing size, these people are out in the market, looking for jobs in sectors such as retail, banking, insurance and call centres. The real estate industry employs about 10 lakh people across the country, the majority in the unorganised sector.

In the first quarter of 2011, home sales dropped 17 per cent in Mumbai, 14 percent in Bangalore and 15 percent in Hyderabad. According to consultant Jones Lang La-Salle, unsold residential units in projects that are complete or are nearing completion in 6-12 months in Mumbai and Delhi-NCR are as high as 25 percent and 16 percent, respectively. In other big cities, including Bangalore, Chennai and Kolkata, the numbers range between 12 percent and 19 percent. Sales in tier-II and tier-III cities are steady, though there is some panic due to the increase in interest rates, which have climbed to about 11 percent from 8.25 percent a year ago.

“For smaller brokers, the impact of the current market factors is a lot more compared to the larger brokers,” says the president of the National Association of Realtors India . “Even for our members – who are fairly well-off – business is down 40 percent compared to 2009-10. But the smaller guys are in trouble and are setting up businesses that move on a daily basis. Many I know have asked their employees to look out” Ravindra Bramhe, chairman of the Maharashtra Property Brokers’ Association, says.

For whatever business is left in the market, there are hundreds of agents in queue. For instance, there are pockets on the Noida Expressway, near large projects, where real estate brokers can be seen sitting inside small tents, under the sweltering sun, waiting for business. Those who can’t afford to set up these tents can be seen on the roadside, running after every car that passes by, with brochures and flyers of projects in hand. Industry refers to them as the broker mandi. “All my friends and colleagues are now looking outside real estate before things get worse,” says Chaudhary. Many have returned to the insurance industry and others have found jobs with small call centres. A few have found employment with retail stores.

Realty Prices Peaking, Time to Sell Your House and a Correction in the Rancid

As property prices exceeds the 2008 peak levels, realty experts believe that a correction is possible in the next couple of quarters, especially in cities like Delhi and Mumbai where prices have grown up fast. This offers an opportunity to real estate investors to gain profits.

A Navi Mumbai-based marketing executive, Parvinder Singh Sidhu, agrees. Five years ago, he had bought a second home of 750-sq-ft flat at Belapur in Navi Mumbai for about Inr13 lakh. At present, the price of the flat is Inr35-40 lakh. However, with the talk of correction in the Mumbai property market, Sidhu is planning to sell this house and earn profits now. “I have a house to stay, so I can think of selling this one. If property rates come down in the future, I could buy a similar property at a lower price,” he says.

Is it really a good time to cash in on your real estate investment? Yashwant Dalal , president of the (EAAI) Estate Agents Association of India, says that property prices in many markets have begun to show signs of correction. ” Where the rates have peaked, we expect the prices to go down by 25-40% in metro cities. If you had bought a house previously just as an investment, I would suggest that you sell as soon as you can and buy a similar property at cheaper price later,” says Dalal. According to him, property bought even 03 years ago may have appreciated nearly 100-150 percent in some areas, so it may be a good time to book profits.

Real estate prices fly in Delhi, NCR

NEW DELHI: Real estate prices in some areas of the NCR glided high by 20 to 27%  in the first quarter of the current financial year as compared to the subsequent period of 2010-1. “Property prices for Delhi have seen boom if we compare per square feet prices of Q1-11 over Q1-10. Certain key areas like Sarita Vihar and Rohini have seen 27% and 20% growth respectivly in prices compared to prices over Q1-10”.

According to a report, the upward price sentiment would continue as the prices on average are hiking up by 15%. The South Delhi locality Sarita Vihar’s PSF prices rise by 27.60% at INR 8,110 as compared to Inr6,356 in the period of 2010-11, while north Delhi-based Rohini’s PSF prices increased by 25%. This is followed by Patparganj at a PSF price appreciation of 21.68%. Other localities like southwest Delhi-based Dwarka sub city’s PSF price also increased by 28 % in sector-11 and sector-2.

Realty prices in suburban NCR like Noida and Gurgaon also increased because of metro rail services came into operation. Prices per square feet in sector 110 and sector 93 of Noida also moved up by 16 %  and 11 % respectively,  as compared to prices in the corresponding period of last financial year. “Gurgaon witnessed an upgoing trend in property prices. Properties located on the Sohna Road and DLF City phase IV have seen the highest growth in prices by 46 % and 42 %, respectively, in Q1-11 over Q1-10”.

 

GMR Declared Net Loss of Rs1,006.7 crore for 4th Quarter

GMR Infrastructure on Tuesday declared a consolidated net loss of Rs 1,006.7 crore for the fourth quarter ended March 31, on account of a one-time loss from its dissociate of power company InterGen NV and losses from its Delhi airport.

Losses from the Delhi airport stood at INR 214 crore for the quarter on higher capacity costs, including interest charges and depreciation, with Terminal-3 becoming operational during the financial year. GMR’s net revenue during the quarter increased 74% to INR1,962 crore over INR1,125 crore in the corresponding period last year. The growth was assisted by revenue from its Male airport, the increase in traffic at Hyderabad and Delhi airports and better operations in its Chennai and Kakinada power plants, the company said.

The losses from the InterGen dissociate and Delhi airport operations also diminished the full year performance of the company which posted a loss of INR 929 crore for 2010-2011 as against net profit of INR158 crore in the past year. Full year revenue, however, increased 26% to INR 5,773.8 crore with airports contributing 41%, energy business 38% and highways 7%. The chairman of the GMR group said,“Though the dissociate of InterGen has resulted in a one-time and non-recurring loss, it has released equity capital of INR 958 crore and would enable us to reinforce our focus and resources on more profitable Indian assets.” The company also expects to recover part of the loss through Island Power, which is Singapore-based electric utility.

Babus Turn Out to be Ingenious Investors.

NEW DELHI: Out of the 4,587 members of the IAS, about 660 has not filed their statements even on the last day for declaring immovable property.The statements posted on the department of personnel and training website shows how babus are clever investors since most of them own several properties, Greater Noida is the most preferred investment place, followed by other parts of the extensive and fast growing NCR.

Any senior bureaucrat on Central deputation owns a plot or flat or house in Greater Noida. It is also a favourite destination for babus of AGMUT cadre, who are usually posted in Delhi at some point of their careers.

Several officers, irrespective of their ranks, own several properties. However, there are certain exceptions among senior officials, whose returns show that neither they nor their spouses own any property. Many officers have not filled in the column on current market value on the plea that they have not determined it. There are some statements, which show suspect at first glance.

Former NDMC chairman Parimal Rai, who was one of the officers indicated in the Shunglu Commission report, has declared 08 properties, including 02 flats in posh area of Green Park. He has valued the flats at Rs 10 lakh each, which is out of sync with the prevailing property prices in the city. His other propertues include a four-bedroom deluxe flat in Lucknow, and a plot in Ghaziabad. A K Mehta, a J K cadre 1978 batch Joint Secretary in UUD ministry, owns 10 immovable properties, which are three plots – two of which are in Golf City (Noida sector 75) worth Rs 37 lakh each – and a property in a Dwarka mall worth Rs 16 lakh.

India’s Biggest Real Estate Firm to Get Crores

The Biggest real estate firm intends to trade in a few IT parks and its hotel business, hoping to wrap up 7,000 crore in the next two years and reduce its growing gross debts.

Its tax dues are on the peek, in the financial year 2011. It has received an additional tax demand of 546.85 crore from the IT-department in the last quarter of 2010-11. Net profit in the consequent quarter of last year was 426.38 crore.

Over the last 1½ years, the real estate major had already sold some non-core assets such as hotel sites in Delhi and Hyderabad as well as non-contiguous land parcels to receive around 3,000 crore. The company said it could sell non-core assets such as IT Parks that generate low return but not the buildings and other developed buildings. The company aspire to become debt-free by the mid term.

DLF’s initial plan was to obtain 4,500 crore from sale of non-core assets, but now plans to procure 10,000 crore in the next 2-3 years. With 3,000 crore already in its stake from sales of non-core assets in the last 18 months, it is now identifying properties to procure the balance 7,000 crore.

JP Morgan has Capitalized into Parsvnath Developer’s Residential Project

JP Morgan financed $30 million in Parsvnath Developer’s residential project La Tropicana launching in Civil Lines area of New Delhi. The deal contains of an additional funding for the real estate group through JP Morgan’s local NBFC in India. The part of the funds raised has been used by Parsvnath to provide an exit to Red Fort Capital, which had put in Rs 115 crore in the project in 2009. Red Fort has made a 30 percent return on its investment in the project. Ernst and JP Morgan did not comment on the deal.

Parsvnath sold 18 percent stake in its 16.8-acre high-end residential La Tropicana project to private equity firm Red Fort Capital for 90 crore in 2009 and later in the same year sold another 4percent to the fund for Rupees 25 crore. The 400 apartment project, which was launched in 2008, has been much delayed and is now estimated to be completed by 2013. The developer is still selling apartments in this project at 14,000 per sq ft. The project was launched at Rs 8,000 per sq ft. Last year, Parsvnath had sold 24.5% stake for 120 crore to Red Fort Capital in an office project that it is building on land it received from the Delhi Metro Rail Corporation. The project is being made on a build-operate-transfer basis. January this year, Sun-Apollo India Real Estate Fund invested Rs 100 crore for a 49.9 percent stake in a residential project, Parsvnath Exotica, in Ghaziabad near Delhi.

Greater Noida’s Land Rates Inflated at 12.5% by UP Govt.

Post farmers protests for hightened land reimbursements, authorities of Noida, Greater Noida and Yamuna Expressway on Monday decided to inflate land rates by 12.5%. To counterweigh the loss, authorities have also inflated land allotment rates by the similar percentage. This was revealed by Chairman Mohinder Singh at a press conference.

Moreover, authorities have permitted for 04 new metro rail projects including City Centre to NH-24 via Sector 71 overpassing, Sector 71 intersecting to Bodaki railway station in Greater Noida via Sector 121 and Noida Extension and Kalindi Kunj to Botanical Garden. The fourth link from Sector 94 to 142 via 124 and 44 will tie the Noida-Greater Noida Line to Kalindi Kunj providing a direct connection to the Sarita Vihar line.

A raised road along the Shahdara drain is proposed from Sector 14-14A to Kalindi Kunj via Noida Sector 95. The line would be 5.8 kilometer long and cost would be Rupees 525 crore. Also, the board has agreed a laser park at Sector 91, a project for municipal solid waste management and other village development projects.

TATA Housing Project

Company declared in the coming three years will build a luxury housing project in Gurgaon and also declared its plans to venture into the international market this financial year. The sale price of a house starts from Rupees 1.5 crore. As the company’s expansion plan company is coming up with apprx 10 new projects this year. Also, they are looking at two new lines of business related to land development. It will be smaller in size than the realty business.” The company is planning to expand operations into international markets.

The plan to get into the international market is in advance stages, while the proposal for expanding into two new lines of business is still at an intial stage. He did not reveal further details on these new initiatives.  This is the company’s second project in the city and the company is in advanced stages of launching two more projects in the Delhi-NCR this financial year.

17 Commonwealth Games Flats to be Demolished

NEW DELHI: 17 flats which DDA said were constructed illegally in the upper basement of the Games Village will soon be razed. The developer Emaar MGF have been served the notice by the building department of the Delhi Development Authority to this effect on May 2.

The vice-chairman of the DDA, G S Patnaik, said these flats were “illegal and have been sealed as of now”. The flats were not constructed as per the approved building plan, said DDA officials. The issue of the illegality of these flats came up just before the Commonwealth Games.

The total cost of these flats is between Rs 30 crore and Rs 40 crore.. The developer apparently gave an application on April 28, saying they are ready to remove the 17 unauthorized flats in the upper basements, without bias to their claim and rights under Master Plan-2021 and the building bylaws, provided the completion certificate is soon issued to the balance 1,168 flats in 34 towers.

Emaar already having sold off its share of 450-odd flats, the people who bought them for approximatly between Rs 2 crore and Rs 5 crore each have been asking the developer to hand over the property. The remaining flats are with DDA. But no flat can be allotted before the completion certificate is issued. The developer decided to let go the loss of having these 17 flats destroyed to accelerate the process of getting the completion certificate.

DDA claimed that a waterproofing of the basement is still going on and DDA has to ascertain whether the construction of the Village complex is within the overall ambit of Master Plan-2021 and the unified building bylaws which are in force in Delhi, then only the completion certificate can be given once these exercise has been completed.

During a recent hearing, DDA representatives presented that these illegal flats were not safe and not likely to be fit for occupancy as widespread leakage in the basement area was noticed during floods in April/September 2010. Moreover, several service lines of other flats are passing along the roofs of the unauthorized flats.

The purchasers of the Emaar flats, however, continue to suffer. As they have bought these flats because it was a government project with a time-bound deadline for completion. We were supposed to have got possession of the flats by March this year. They are suffering huge losses as many of them are paying 12% as annual interest on the loans taken from banks.