Fallout from US can affect Real Estate Market in India

The impact of the collapse of the Lehman Brothers and the buyout of Merill Lynch is sure to spread like a contagion. However, realty operators in India are putting up a brave front and maintaining that there will be no impact on the real estate sector of the country.

The impact of Lehman Brothers filing for bankruptcy will impact those Indian real estate developers who have not structured their agreement carefully, opines Sanjay Dutt, joint managing director, Cushman & Wakefield. He does not forsee a situation where projects would get shelved. "Most of the funds that were committed has been delivered." Dutt is of the opinion that if projects get shelved it is mostly because of changing market dynamics and not because of lack of liquidity.

Experts think that in a bid to de-risk these investment bankers would trade their private equity placements. India is still a growth story and as far as the real estate investment is concerned it is very attractive from a long-term perspective.

Reflecting on the same lines, Shobhit Agarwal, joint managing director, capital markets, Jones Lang Lasele Meghraj says, that Indian impact of the buyout of Merrill Lynch and collapse of Lehman Brothers, the world's third and fourth largest investment banks, would be limited. With Merrill there will be no impact, says Aggarwal "as there is a shakeup on the banking side only".

He expects the industrial side to continue on a straight line. The asset management money is mainly third party fund and the bigger picture would take some time to unfold. 

While explaining the reason for fall in realty stocks, he says, "it is a result of temporary negative sentiments". He thinks there will be no impact on investments though he predicts that the volume of FDI will sink. He also expects fund managers to become more cautious in the future. 

"In the next six to twelve months I see a lot of PE funds who had limited exposure before, coming into the market," says, Dutt. This is a time to watch out for as it is a golden era where opportunities will be in abundance.

Vimal Shah, managing director, Akruti City, told FE, "Lehman Brothers development will not directly impact the real estate market much. However, the sentiment  is getting impacted to some extent".

According to Shobhit Agarwal, "Lehman Brother's real estate holdings comprise Orbit, Anant Raj and IVRCL on the equity level and Unitech and DB Realty on the project level".

Bigger realty firms like DLF, Ansal API, Unitech has had exposure to these firms.

Last year DLF had diluted 49% of its stake in seven mid income housing (MIG) to Merrill Lynch. According to a DLF spokesperson, "We have received Rs 14.81 billion from them for dilution of stakes in these projects". He clarified, "Since we have already received the money, we are not worried about the buy out."

Parsvnath Premier Indore

 Realty firm Parsvnath Developers Ltd today said it would build a group housing project at Indore in Madhya Pradesh, with an expected realisation of about Rs 60 crore.

"The realisation from the project is approximately Rs 60 crore and is scheduled to be completed by the end of 2011," the company said in a statement.

The group housing project ' Parsvnath Premier ' is spread over 6.3 acres and is part of a 200-acre integrated township. The company would develop 300 units covering 4.11 lakh sq ft of saleable area.

In the township, Parsvnath is also coming up with an IT/ ITeS Special Economic Zone (SEZ) spread over 76 acres. The SEZ has already been notified by the Centre.

In Madhya Pradesh, it is also developing another township at Ujjain on 100 acres of area.

Parsvnath is currently developing 114 projects across the country covering 211.32 million sq ft of saleable area.

For the year ended March 2008, it posted a consolidated revenue of Rs 1,837.12 crore and a net profit of Rs 424.39
crore.

Slowdown in Indian Property Market

Realty slowdown is delaying delivery of homes. Several property developers in India have postponed execution of their housing projects as funds become scarce, demand softens and raw material prices rise. While some others are deliberately delaying projects in order to reduce supply as demand weakens.

Several projects across the country are getting delayed as developers aren't able to generate enough cash to continue construction work. Projects are delayed by as much as 6 months to over a year. "Funding is largely unavailable. Those developers who can access funds are also shying away from it since it has become very expensive. In addition, income from sales of housing units has declined with the softening of demand ," says Cushman & Wakefield executive MD Sanjay Verma.

All developers are facing the heat on account of high interest rates, which the country's central bank has been hiking in order to tame inflation . Mid and small developers are faring worse as banks have almost shut their door on them.

"It is a tough time for real estate firms. A weak demand is affecting cash flow. Moreover, the cost of debt and construction has risen. How can one continue construction with the same pace in this environment," says a senior executive at Omaxe.

Some developers cite usual reasons such as delayed government sanction and unavailability of men and material for the current unusual delays. "Till the last month, steel was difficult to procure even at a very high rate delaying execution of projects ," says Gaursons joint MD Manoj Gaur.

Not all delays are forced by just funding or material constraint. Says Sanjay Verma of Cushman & Wakefield, "Some developers are not minding delaying projects as they feel a reduced supply of homes will help them sustain prices in the face of slowing demand."

In such cases, early buyers in the project are surely going to suffer as they will have to wait for a much longer time for delivery of their dream homes. Verma feels the scenario in real estate is unlikely to improve for at least one year as interest rates are expected to remain high.

India Property Investment for NRI

It is not without reason that more and more domestic as well as international investors are considering India for property investment. Real estate studies India shows that India has the right environment that offers maximum benefits to the investors. India is the largest democracy with exemplary democratic governance and institutions, has strong and transparent legal and accounting system and most of all has legal protection for intellectual property rights. Fundamentals of the Indian economy also have become strong and sustainable. All these factors together make India the hotspot for investment in every sector. According to an UNCTAD (United Nations Conference on Trade and Development) report, India is among the top four Asian destinations for foreign direct investment. Invest in a profitable business in any sector - raw materials, power supply, fuel, tourism or commercial ventures. Property investments in India include everything from lands, land services, commercial real estate to residential property. Invest in commercial land, agricultural land, land for schools, hospitals or resorts, land for houses, shopping malls and more. Select your spot from the large geographical expanse that is India. Settle for India's commercial capital Mumbai, or other metros such as Chennai, Kolkata or Bangalore or smaller cities such as Indore, Jaipur, Ahmedabad or Coimbatore. Make revenue from tourism by investing in hotels, guesthouses or resorts in Kochi or Goa. The possibilities are many! It makes sense to consider India for property investment, if you want to make your business or any other venture profitable. No other country offers you all the ingredients in the right measure to make any venture profitable and successful. With a growing middle class, India offers the ideal market for making great profits, in any venture. The higher buying power of the average Indian translates to the success of shopping malls, tourism and product sales, be it the smaller consumer goods or bigger items such as cars. As an investor, however, you need to have all the facts straight before investing. And MastGhar.com may be the knowledge powerhouse you may be looking for. Visit MastGhar.com to know the best spots in India for property investment. Property investments in India attract investors from every corner of the globe. But when it comes to investing, knowledge is power. And, only MastGhar.com gives you the knowledge and confidence to make the right investment decisions in India.

ILD SPIRE GREENS

Let the whole world be at your doorstep, for what you can be best known by where you are. A place where nature reclines itself on its most carefree strolls ever. International Land Developers Ltd (ILD) & Millennium Spire Ltd (MSL) have joined hand together to create an architectural wonder "ILD SPIRE GREENS".

The project is ideally located at Sec-37C, Gurgaon real estate the most enviable and prestigious residential project in the Capital's neighborhood with 65% greenery to maintain harmony with nature.

If you are the type who prefers the company of like minded people, there are 2-4, bedroom apartments with an area ranging from 1175 sq ft to 3450 sq. ft. & penthouses with an area of 5200 sq. ft. to choose from which combine modern design and stylish elegance.

These apartments have seen exquisitely designed by the joint venture of three renowned Architecture companies namely
BDP Groupe 6(France), Abaxial Architects (Delhi) & Ajoy Chowdhary & Associates (Delhi).

So, come and dwell in a place where life blends with the symphony of elegance.

	Deluxe Specification Floorings Living / Dining : Vitrified Tile with Wooden skirting Bedrooms : Laminated Wooden Flooring Servants Room : Ceramic Tiles Balcony : Anti Skid Ceramic Tiles Lift Lobbies : Selected Granite / Marble Terrace : Anti Skid Ceramic Tiles   Wall Finish Internal Living/Dining/Bedrooms : Painted in pleasing shades of Acrylic Emulsion Paint Servant's Room : Painted in Oil Bound Distemper Lift Lobbies : Selected Marble / Granite cladding & Acrylic Emulsion Paint External : Combination of Stone & Textured Paint Finish   Kitchen Half Modular Flooring : Ceramic Tiles Dado : Ceramic Tiles Above Working Platform, Rest Acrylic Emulsion Paint Platform : Granite Counter With Double Bowl Stainless Steel Sink With Drain Board And Geysers   Wardrobes In All Bedrooms   Toilets Dado : Selected Ceramic Tiles Floorings : Ceramic Tiles / Granite / Marble Fittings : Granite / Marble Counter, White Sanitary Fixtures, Single Lever CP Fittings & Geysers   Windows Powder Coated / Anodized Aluminum Glazing   Doors Seasoned Hardwood Frames With European Style Moulded Shutters   Electrical Conduit Copper Electrical Wiring For All Light & Power Points   Air Conditioning Provision of Copper Conduits and Drainage Pipes For Split Air Conditioning Air-conditioners in all bed rooms   Standard Specification Floorings Living/Dining Porcelain Vitrified Tiles Bed Rooms Ceramic Tiles Servant's Room Ceramic Tiles Balcony Anti Skid Ceramic Tiles Terrace on roof Anti Skid Ceramic Tiles Lift Lobby Selected Granite/Marble   Kitchen Flooring Ceramic Tiles Dado Ceramic Titles above working platform, rest Oil Bound Distemper Platform Granite Counter with single bowl stainless steel sink with drain board   Wall Finish Internal Living/Dining/Bed Rooms Textured Paint Finish Servant's Room Painted in pleasing shades of Oil Bound Distemper Lift Lobbies Painted in Oil Bound Distemper   External Façade of Towers Selected Marble/Granite Cladding Dado Selected Ceramic Titles   Toilets Floorings Ceramic Tiles Fittings Granite/Marble Counter, white sanitary fixtures, contemporary styled CP Fittings   Facilities Electrical Conduit Copper electrical wiring for all light and power points

Gurgaon Property Agents will now be Regulated by Haryana Goverment

The Haryana legislative assembly passed the Haryana Regulation of Property Dealers and Consultants Bill to safeguard the interests of the people using services of property dealers, property consultants and real estate agents

The Bill, which was tabled in the assembly on September 2 by Savitri Jindal, minister of state for revenue, was passed after amendments in Clause 17(1) and 17(2).

After this Act is enforced, no property dealer or his representative without obtaining licence can enter into transactions of sale, purchase, exchange, letting or taking on lease between the buyer and seller, lessor and lessee, landlord and tenant, including the collection of rent in respect of the immovable property with anybody in any manner.

The Bill further mentions that an application shall be made to the collector for the grant or renewal of a licence in the prescribed form accompanied by fee.

The provision of Bill specifies that no property dealer or his representative, directly or indirectly could purchase any immovable property for which he had received or likely to receive commission from the owner of such property except with the prior permission of the collector.

Furthermore the Bill clarifies that any dispute arising between the property dealer and any of the parties to the deal under this Act or the rules framed there under shall be decided by the collector on an application made by the aggrieved person in such form and manner, as may be prescribed.

According to other provisions of the Bill, any person who contravenes any provisions of this Act or any rule made there under, will be punishable on first conviction with imprisonment and with fine which may be extended to Rs 50,000 in the first conviction and from Rs 1 lakh to Rs1.50 lakh in the event of second and subsequent conviction. The property dealers in Haryana have welcomed this move as the Bill aims at curbing the unrestricted mushrooming of property dealers in Haryana.

Kamal Jindal, general manager, Berkley Realtech, welcoming the Bill adds that it would not only help in keeping a check on the unrestrained growth of property dealers in Haryana but also contribute towards state revenue in a big way as property dealers would now have to get licence after paying certain amount of fees.

Mangat Rai from Subash Mangat Property Consultants adds it would help both the buyer and seller as transparency would be maintained in the sale deeds. Meanwhile the Haryana assembly has also passed the Indian Stamp Bill 2008 (Haryana Amendment Bill).

According to the Bill, the rate of stamp duty will be decreased from six per cent to five per cent on conveyance deeds and sale deeds.

How sound are investments with Unitech Developer

In its balance sheet for the year to March 2008, the Unitech management has sounded a cautionary note. "It is quite clear that after a fairly long bull run, the real estate sector in India has begun to show signs of slowing down to a more realistic equilibrium rate of growth. The first signs of market slackening were evident in the second half of FY08. The correction has become more pronounced thereafter."

In the June 2008 quarter, revenues for the developer were up a somewhat disappointing 19 per cent to Rs 1000 crore y-o-y although the operating profit margin improved 114 basis points y-o-y to 59 per cent due to increased contribution from the residential segment. The profit after tax was pushed up by lower outflows on interest and a lower provisioning for tax.

The company has been able to rope in an investor for a project being executed by Shivalik Ventures—-a joint venture between Unitech and local Mumbai developers.

Lehman Brothers Real Estate will invest Rs 740 crore for a 50 per cent stake in the first phase of the project to develop one million square feet in Mumbai.

The inflows should help ease Unitech's cash flows —- the company's gross debt is estimated at around Rs 8,600 crore and analysts estimate that the average cost of the debt should be about 12 per cent. Outflows on interest had increased to Rs 280 crore in FY08 from Rs 120 crore in the previous year.

It is believed that a couple of the firm's projects in Chennai and Hyderabad may have been pushed back because of delays in approvals. The firm has a strong presence in the eastern and northern parts of the country and residential projects account for close to 75 per cent of its land bank.

Of the approximately 55 million sq feet under construction currently, about 30 million sq ft is in the residential segment. Analysts estimate the net asset value of the firm at around Rs 200 per share for FY 10. The stock currently trades at Rs 165.

Find Affordable Homes in Ghaziabad and Faridabad

Delhi
A budget of Rs 20 lakh is quite small for buying property in Delhi. Only suburbs like Ghaziabad, Greater Noida and Faridabad has some options.
In Ghaziabad, residential apartments are available on National Highway 58. A two-bedroom apartment will come in Rs 18 lakh, where the built-up area would be 1,125 sq ft. Ajnara Farms at the highway is also selling two-bedroom apartments. But for these flats offer around 1,000 sq ft built-up area and sell for Rs 20 lakh.
Lal Kuan also has some options but the area has poor infrastructure. Roads are not in the finest of shapes. But Lal Kuan area is costlier than the National Highway 58. The price of apartment goes upto Rs 20 lakh. Add the registration money, the amount will then stand at Rs 21 lakh. Triveni Height built by Triveni is also selling apartments at Rs 21 lakh in Lal Kuan. But most of Triveni's projects are delayed. The company is unable to give delivery on time. If one is looking for more space, he should be ready to shell out more money. A small one-bedroom builder floor at Vaishali's sector 6 comes at Rs 16 to 17 lakh. The built-up area is 550 sq ft. The area is well connected and has markets for your daily needs.
Other than, Ghaziabad, Greater Noida is another satellite town of Delhi that can offer apartments at lower rates. Two-bedroom apartment is available in Ashirwad Apartments in Alpha One sector at Rs 17 lakh. With a built-up area of 600 sq ft, the apartment is strategically located. Pari Chowk is just a kilometre away from this place.
Buyers in this category can also look at Faridabad. Pankaj Dogra of Ujjala Associates says, "Only HUDA sectors like 29 and 18 have options in this range. LIG floors are available in sector 29 in Rs 17 to 18 lakh. The area of these apartments is 450 sq ft. In sector 18, independent houses are available. Interestingly, these are built at a plot of 35 to 50 sq yd. For these properties, banks offer loans."
Builder floors are available in Springfield Colony of sector 31. Two-bedroom apartment offers a cover area of 500 sq ft. But here, the HUDA is not registering these properties, as separate floors.

Mumbai
The amount is too low to buy any thing decent in the city, however, as the saying goes, Mumbai always offers something to every one. One can get single room to 1 BHK flat in city and distant suburbs at this price. But a person will have to compromise on many fronts to be in Mumbai with this kind of budget.
"One can get a single room in lower middle class areas of the city and interiors of the suburbs,'' Says S Karande, a broker from Goregaon. "One can get single room in island city and up to two room unit in some of the yet -to -develop central zones. As you move towards the suburbs, space increases at the same budget but not more than 1 BHK flat.' adds Karande.
The south side of the city such as Dongari, Bhendi Bazar, central localities such as Kala Chowky, Shaitan Chowky, Shivadi, Cotton Green, Chinchpokli, Parel village, Naigaon (Dadar), etc ex-mill land may get you single or two room unit at this price.

Delhi Property Market Getting Ready for 2010 Games

Delhi may be the capital and the political nerve centre of the country but its problems are commonplace in most other Indian real estate. The recent sporadic monsoon showers that inundated the city and almost brought it to a standstill exposed the complete lack of civic governance. There are other telltale signs that the city's infrastructure is stretched to the limit--power outages, potholed roads, traffic snarls and overcrowded airports is something the ordinary Delhiite is reconciled to.
Not the most conducive business environment, but then these are not the only reasons why Delhi has dropped one position in our survey of "Best Cities for Business" in India (it has been displaced by Bangalore at the No. 2 slot while Mumbai continues to rule at No. 1).

Game for the Games: Construction work is on at the Emaar-MGF Commonwealth Games village to house the athletes
Its Achilles' heel, CEOs say, continues to be its poor law and order situation. Says Pramod Bhasin, President and CEO, Genpact, which is headquartered in Gurgaon, near Delhi: "Law and order is the biggest factor impacting the business sentiment in the national capital region (NCR). The safety of women, in particular, is an issue." Something for the authorities to chew on.

Having said that, while law and order remains a grey area and a matter of concern, ironically Delhi has slid in our rankings at a time when things seem to be looking up for the capital. The city is getting a makeover with an eye on the Commonwealth Games in 2010. If things go as planned, the city's basic infrastructure will get a complete overhaul in another two years. Attempts are being made to transform Delhi completely with the objective of making it a world class city by 2010.


Horizontal spread: Gurgaon is the new business hub, but infrastructure sucks
Travel super highway

Delhi over the next few years will have a significantly improved road and transport infrastructure (a sixlane section of National Highway 8 connecting Delhi and Gurgaon is already functional). More flyovers and underpasses will be constructed across Delhi to decongest traffic.

Getting a facelift

The city is getting spruced up for the Commonwealth Games in 2010


Decongesting the highways: 37 flyovers completed during the past eight years. 16 more flyovers and rail over bridges (ROB) are under construction to further ease traffic bottlenecks

Metro project on overdrive: Expected to be completed before Commonwealth Games. It would interconnect the entire National Capital Region including Noida and Gurgaon. More than 400 km lines to crisscross the NCR. It would further take traffic off the roads

Leg up for power reforms: A major thrust area. The city administration intends to spend over Rs 4,500 crore on energy during 2007-12 to make Delhi a power-surplus region soon. Efforts on for new power projects in the region besides paring transmission and distribution losses

Airport gets a makeover: A new terminal and runway are under construction at the Indira Gandhi International Airport and scheduled for completion in 2010. This is expected to increase capacity to 37 million passengers a year

Hospitality industry booms: The NCR is expected to see an estimated 27 new hotels, serviced apartments and mixed-use developments with approximately 4,900 rooms in various categories over the next three to four years

Keeping in view the need for infrastructure development in the capital ahead of the Games, the Municipal Corporation of Delhi has given its approval for construction of six new flyovers. Work on the proposed flyovers would start within six months. This is in addition to 37 flyovers that have been completed over the past eight years and 16 more flyovers and rail over bridges (ROB) are under construction.

Road to growth: A section of the Taj Expressway in Noida
In the coming few years, Delhi is expected to be a city with minimum red lights, which means that the traffic problem will be reduced to a great extent. Says Bhasin: "Certainly a lot of emphasis is being laid to rebuilding roads and decongesting them. A lot of the credit goes to Shiela Dixit who is an outstanding Chief Minister."

Then, primary facilities of transportation would improve for Delhi residents, with plans to expand the existing Metro Rail Service to other parts of Delhi and NCR. The current 65-km-long Delhi Metro Rail's expansion plan calls for more than 400 km of lines to crisscross the city and extend to the suburbs of Noida and Gurgaon before the Commonwealth Games. Besides providing convenience of travelling within the city, Metro Rail offers better connectivity with the satellite twin cities of Gurgaon and Noida. It has the potential to become the "life line" of Delhi as people are slowly becoming dependent on the Metro for commuting to different pockets of the city. Already the "Delhi Metro Project" has been recognised all over the world for its hi-tech rail and better equipped transport system.
Says Chandrajit Banerjee, Director General, CII: "The metro would be instrumental in providing proper connectivity between all the major regions of the NCR." The city's international airport, too, is being spruced up. A massive expansion project is underway at the Indira Gandhi International Airport. A new terminal and runway are under construction and scheduled for completion by 2010. This is expected to increase capacity to 37 million passengers a year. More terminals and runways are planned thereafter, since the airport authorities are expecting a capacity of 100 million passengers a year by 2026

Power Back-up
Power has emerged as another thrust area for the government. Capacity building on the electricity front is a priority concern for the city government, which intends to spend more than Rs 4,500 crore on energy during 2007-12, while in excess of Rs 600 crore would be spent in the current financial year alone.

Sold on Metro: The MRT service is a hit
Sold on Metro: The MRT service is a hit
Though the Commonwealth Games are to be held during October 2010, when the power demand is normally not very high, the government is taking no chances. The city's peak hour demand is unlikely to cross the 6,000-MW mark in the near future.

The authorities are now targeting 7,000 MW power capacity over the next two years to have a comfortable surplus. The city will get power from the Damodar Valley Corp., National Thermal Power Corp., Dadri power plant, Jhajhar plant and the Pragati power plant that would stack up to over 4,000 MW. The government intends to get another 1,800 MW from local sources in addition to the existing installed power generation capacity of 932 MW.

It will also initiate certain corrective measures to streamline power supply. The transmission and distribution loss is being tackled-- it was around 49 per cent in 2007-08 against the national figure of 30-31 per cent. The government is also looking at a couple of new projects from the Centre's capacity addition programme for the 11th Plan period (2007-12).

At the moment, the city stands to get 750 MW from the upcoming power plant at Jhajhar in Haryana. Officials point out that while the central government had fixed the capacity addition of 78,577 MW for the 11th Plan period, no project had been earmarked for Delhi and efforts are on to get some projects in the city-state territory. Says Amit Mitra, Secretary General, FICCI: "Over the last 15 years, the state has not been awarded a single power project and that's quite disappointing."

Atithi Devo Bhava
The hospitality industry in Delhi and the National Capital Region (NCR), too, is slated to undergo a major revamp as the city gears up to host business tourists from across the globe in the face of large-scale investments. Says Banerjee: "Clearly, it's an important focus area if Delhi is to emerge as a business hub. We need more hotels in the city across categories from five-star to budget hotels". The NCR is expected to see an estimated 27 new hotels, serviced apartments and mixed-use developments with approximately 4,900 rooms in various categories over the next 3-4 years.

Delhi, then, analysts say, has the potential to emerge as India's most favoured investment destination over the next few years. More so, it's felt that with the inception of the NCR region, Delhi has been partly relieved of the burden of growing demands from corporate bodies and government establishments. The city needed more expansion and a better infrastructure to meet the demands of globalisation. However, with the development of satellite cities like Gurgaon and Noida, this problem was solved to a great extent. Says Mitra: "Unlike Mumbai, Delhi still has space available to expand in the NCR region, particularly along the Gangetic plain."

However, despite the flurry of initiatives, there is one area where the capital still falls short: law and order, which appears be the biggest impediment in Delhi emerging as the best city for business in India. Are the authorities listening?

Ghaziabad Property Scams

Scrutinising complaints lodged in lok adalats, the Ghaziabad district administration has unearthed a scam in which plots on a 1300-bigha land were sold to multiple `owners', and the government cheated of approximately Rs 200 crore in stamp duty.
Ghaziabad District Magistrate Deepak Aggarwal said on Friday that the huge piece of land in Loni (Ghaziabad) was owned by one Jeevan Singh, and that it is worth an estimated Rs 690 crore.

Aggarwal said the Ghaziabad Property was divided into 11,000 plots and 12,000 transactions were carried out -- simply put, this means some of the plots were sold many times.

THE WHATS AND HOWS
1300-bigha land in Loni worth Rs 690 crore
Carved out into 11,000 plots
Sold 12,000 times
200-bigha govt land encroached upon
30 people involved, says Administration
Five held till date

The scam, he said, was conducted by giving false land documents and power of attorney. He said landowner Jeevan Singh's son Pratap Choudhary (a resident of Old Seelampur in Delhi) and one Arjun Singh (from Badshahpur-Siroli in Loni) ran the racket primarily. Though, "we believe Jeevan Singh started the scam in 1984; he was also named in fake dealings," the district magistrate said.

A part of the land from which 11,000 plots were carved out belongs to the government, Aggarwal said. Through small dealers, the plots were sold multiple times to people mainly from Bihar, UP, Haryana, Punjab and Delhi, he said.
The administration is not ruling out involvement of state agency officials in the scam. "The scam could not have been possible without involvement of land and revenue department officials," SDM (Sadar) Vishal Singh said. Singh had "raided offices of companies involved in these transactions" on the basis of complaints filed in lok adalats. "We recovered many documents and layout plans of the land," he said.

He said the land mafia had encroached upon around 200 bighas government land; the district administration has now reclaimed the land.

The administration, Singh said, believes some 30 people are involved the scam.
The UP Police has arrested five persons till date, officials said. The arrested persons Wajid Ali, Chajju, Tasim, Munish and Gaffar Shahjad are all said to be small-time property dealers in the area. District Magistrate Aggarwal said more arrests are likely as Ghaziabad police are working on several other leads in the case.

Unitech Grande Noida- Luxury Apartments

Indian real estate major Unitech Ltd. has announced the launch of a premium residential project, Unitech Grande, in Noida. Unitech is ready to make a splash with this launch of India's largest and much-awaited Super Luxury Golf Course Residential Township. Unitech Grande is a premium lifestyle destination offering super luxury apartments in sylvan surroundings across 347 acres of prime land.

Unitech is the closest rival of real estate giant DLF and is the name behind some of the best developments in Gurgaon, Noida, Kolkata and many other cities in India. They are one of the foremost developers in India with landmark developments viz. Nirvana Country, South City, The Close, the Cascade in Delhi & NCR and Uniworld City in Kolkata to name a few.

Unitech Grande is located on the premium Noida Expressway, less than 2.5 kms from the Amity Chowk on the Expressway, thereby enjoying good connectivity to New Delhi, Greater Noida, and closest to the main City Center of Noida and also provides other locational advantage with respect to the city master plan. Conceived to be the most sought after address in South Asia, this township offers the best living, shopping, working and hospitality facilities within a ten-minute drive along with superior accessibility to the nation's capital! The heart of this creation is a signature Golf Course.

Apartment size in Unitech Grande ranges from 2,200 sq ft to 5,500 sq ft. The apartments are housed in soaring masterpieces of skyscraping architecture, created by some of the most celebrated architects and planners of the world. Luxury has acquired a new meaning here with all apartments having dedicated high speed internet connections, in addition to the usual modular kitchen with hob and chimney, his and hers basin in the master bath, Imported Marble & Laminated Wooden Flooring in master bed room and more. Selected apartments have terrace gardens and personal plunge pools. Grande offers super luxury apartments, all having an exquisite view of the Signature Golf Course. A premium one of its kind project Unitech Grande has its very own 200 bed Medical Facility, 3 nursing homes, 3 Schools, a number of exclusive clubs and a host of other premium world class amenities.

Last year, Unitech managed to outdo DLF when it bagged the land for Rs. 1,583 crore, making it India's largest land deal. Around three-years from now, Unitech completes its project and the residential township will have a 9-hole golf course and 80 high-rise buildings with the tallest being 50 storey high. Also, Sky bridges are to link most of Grande's towers, and each bridge exquisitely landscaped to give India the very first 'sky gardens'.

Theme gardens are the focal point of each cluster of Grande. Grande has been designed with all the attributes of environment planning dictated by international standards, including waste management, recycling resources and achieving energy friendly environment. Sun shading screens, eco-rated air conditioning units, state of the art purification systems for drinking water, rainwater harvesting and green roofs are some of the features that make it a truly sustainable and intelligent township.

With 100 acres of landscape greens and theme gardens, various clubs and fitness centers, integrated sports complex including In-door Tennis Court, and world class health care and education facilities, Unitech Grande is truly a contemporary and sustainable township to see what life can be.

NRI Investing Heavily in Real Estate India

With economies all over the world going through a depression, and the domestic economy showing prospects of bouncing back, NRIs are looking at property investments here

 

At a time when the US and European economies are spiraling downwards, the domestic economy in general is looking up, despite the current slowdown. Not surprisingly, the NRIs are investing in various sectors, including real estate. Several real estate projects across India have garnered approximately 10-20 percent participation from NRIs. The return on investment provided by real estate here has been found to be more attractive than that offered by developed nations. Also, the simplified process of investments has reversed the equation and many NRIs have been consistently investing in properties.

  

Rajesh Goenka, chairman and CEO, Axiom Estates, says, "They are the most affluent lot among real estate buyers in India, showing interest in buying large chunks of land in their home country. They are not affected by the current slowdown, as they take a long-range view of the whole scenario. They have faith in the domestic economy, and firmly believe that the prices will appreciate by at least 10 to 15 percent every year. They see the downturn as an opportunity to invest in large chunks of land or even developed areas which they get at a good discount from even the top developers."

  

He adds, "According to our assessment, the interest from NRIs has increased almost by 20-25 percent every quarter, which is almost two to two-anda-half times in the last two to three years. Interestingly, not just investors from the Gulf countries, but even from UK and USA have shown interest."

  

Raminder Grover, Managing Director, Homebay Residential, Jones Lang Lasalle Meghraj says, "Many NRIs in the US and UK are not as confident as before of sanctity of their employment, while others are disturbed by negative economic patterns across developed countries. They see greater potential for India overcoming the current economic setbacks. Sentimental attachment to their country of origin is another reason."

  

NRIs can expect appreciations anywhere upwards of 15 percent per annum and rental yields of 4-6 percent on property here.

  

There are different types of NRIs, as Akshaya Kumar, Managing Director, Parklane Property Advisors, puts it. "The Gulf NRI is one who is bound to return. NRIs are looking for decent returns, and might think of holding property here, while investors from UK and US are pure investors. NRIs mostly have an affinity to the areas they come from," he says.

  

Bangalore, Pune, Mumbai, Indore, Baroda, Chandigarh, Gurgaon, Kolkata and Goa seem to draw the highest number of serious inquiries. So do second home destinations and extended suburbs. Those with business aspirations are investing wherever IT/ITeS is making its presence felt. Mostly all sectors including residential, commercial, and retail have seen good NRI investments.

  

As opposed to earlier times when an NRI had to struggle with various rules, income tax and other issues, these days the NRI is being welcomed with open arms, and this has elicited an extraordinary response. Today, NRIs enjoy high returns, easy repatriation with no tax on sale proceeds, and easy loans. There are several realtors, financers and other organisations specialising in easy financing and mortgages for NRIs and high net worth individuals.

 

Indian Home Loan Rates Go Further up

With the recent credit policy, the Reserve Bank of India (RBI) has pushed up interest rates on loans, including home loans. Many banks announced a hike in their interest rates by an average 0.75 percent. The move would increase repayment by a minimum of about Rs 1.25 lakhs on a Rs 10-lakh loan. On a 20-year loan, borrowers have to pay over Rs 500 more every month in EMI on a loan of Rs 10 lakhs. The rates have been revised as a result of the tight monetary measures announced by the RBI recently. It has asked banks to maintain higher mandatory cash reserves with it and also increased its shortterm key lending rates for them. It raised the repo rate by 50 basis points to nine percent from the existing 8.5 per cent. This short-term rate at which the RBI lends cash to banks was last raised on June 24 by 50 basis points to 8.5 per cent. The move is directed at c o o l i n g i n fl at i o n that is running at around 13 per cent by containing demand. The central bank has also raised the cash reserve ratio (CRR) - the percentage of a bank's deposits which it must keep with the central bank - by 25 basis points from the existing 8.75 percent . This will come into effect from August 30. The reverse repo rate - the shortterm rate at which the central bank absorbs cash from the market - remains unchanged at six percent. It has also held the bank rate - rate used to price long-term loans to firms and individuals - steady at six percent. Many banks have already announced rate hikes during the last fortnight. Some others are expected to follow suit. Banks are hiking their retail prime lending rates on which the adjustable home loans are benchmarked. As the cost of lending for banks goes up, both deposit and lending rates will be hiked. For example, on a 11.75 percent floating rate, the EMI is estimated to work out to around Rs 21,675 per month, up Rs 1,031 from Rs 20,644 at a rate of 11 percent . This would result in an overall additional burden of close to Rs 2.50 lakhs over a 20-year period. A 0.75 percentage point hike will mean - on a floating rate home loan - an additional EMI of Rs 51 per lakh, on a 20-year term. This decision to raise the rates has been taken to curb inflation. The rate hikes will curb liquidity in the system. With cash conditions tightening, home, consumer and other loan rates are likely to go up. The hikes will lead to tightening of money supply, forcing banks to raise lending and deposit rates. In the past, interest rates were as high as 18 per cent, and then fell to eight percent over a period of time. So, over a long term, borrowers will see rates coming down again. The high interest rate scenario is a temporary phase and the rates are expected to ease out in the medium to long term.

Source- ET Bureau

Make property part of your investment portfolio

Indian property should be in  your investment portfolio

The stock markets are down, eroding investor wealth by millions of rupees. The markets that have stood against the tides of inflation aren't the mostfavoured today. Those planning for their retirement years may prefer reducing their exposure to stocks and increasing their investments in real estate. While stocks are also long-term investment vehicles, the returns on real estate have always been remarkable. For those close to retirement years, planning is crucial . Should your portfolio have an exposure to real estate? Retirement planning spans over a long term. With inflation looming large over your heads, it is essential that your investments yield decent returns that beat the inflation. Yes, fixed deposits and other debt instruments are an indispensable part of a retirement portfolio. You can also consider exposure of a small portion of your money to the stock markets or mutual funds. To add real estate to this list of investments is a good idea. Wouldn't it be nice if you had your own roof after retirement, for which you need not dole out monthly rent? Wouldn't it be nice if you had a piece of plot that could be sold anytime to meet unforeseen expenses? An investment in a house not only appreciates with time, but also allows you to enjoy income tax benefits on repayment of the home loan. Inflation and increasing rates has dampened investor interest. This is a good time to invest in property . The traditional social fabric has undergone a drastic change. Joint families have shrunk into nuclear families . Thus, all senior citizens do not have their children's support. It becomes even more important for people to plan for their retirement years. Further, advancements in modern medical science and information about healthy lifestyles have increased life expectancy of people. Inflation has pushed up costs of everything from food grains to transport and healthcare. It is essential that retired people have ample funds to meet their medical and other regular expenses. Consider reverse mortgage . Here, a loan is offered to homeowners who are above a certain age, to enable them to convert the market value of their home into cash to finance their needs. The basic condition is that the property should be self-acquired and selfoccupied . Reverse mortgage can be defined as a form of mortgage in which the lender makes periodic payments to the borrower using the investment in the house as security.

Source-Economic Times

Tips for NRIs selling property in India

Tips for NRIs selling property in India

Source: ChilliBreeze

Did you know that as an NRI you can also remit up to USD 1 million every year out of the balance of your NRO account? What are NRI remittances and how convenient are they? Can you remit money from your property sale out of India easily? Read on and find out… India receives the highest remittances in the world [Source: The Hindu Business Line] and NRIs are investing in India like never before! You must know that any form of income (which includes rent, interest, and dividend) can be credited into your NRE account. Alternatively, you can remit the funds out of India too. However, if you want to repatriate funds from the sale proceeds of property sale in India, you will have to consider the following: As an NRI you can acquire immovable property in India, provided it is not agricultural property The immovable property (purchased by you) must be acquired in accordance with the provisions of the Exchange Control Rules/Regulations/Law which are in force at the time you acquire the property The repatriated amount should not exceed the amount paid for acquisition of the property, either in foreign exchange received through banks or your Non Resident account The repatriated amount should not exceed the foreign currency equivalent (as on the date of payment) as well If you are planning to sell residential property, remember that the repatriation of the sales is restricted to two properties only Remittance of funds from property sales is simple and hassle-free for the benefit of NRIs today. However, ensure that you are guided well by a legal expert in matters of property sale in India. Have you sold property in India and had the funds remitted out of India? Was the process easy or did you face a lot of legal hassles? What medium/route did you use? Share your experiences with us right here.

Looking for a budget home?

Looking for a budget home?

Source: ChilliBreeze

Property prices have gone through the roof in the last few years. It is becoming increasingly difficult to afford a home, especially in the cities of India. Do low cost homes exist in today's times? How can one find them?   Finding a home that fits into your modest budget may look like a dream, but it may not be impossible. Here are a few options worth looking at:   City outskirts   Most people wish to live within the city limits, so as to be closer to their place of work or school. Another reason is that day-to-day living and chores like grocery shopping and banking become easier with facilities close at hand. If you are willing to increase your commute time, a home on the outskirts of the city will cost you much less than one situated within it. Not only are prices outside the city limits lower, but these properties also appreciate in value, and are good capital investments.   Second purchases   A second-hand home will probably be cheaper than a flat in a new housing complex in the same neighborhood.   Early birds   If you are looking for a brand new apartment and can wait to take possession of your home, it would be a good idea to purchase the apartment before the project begins or is in its initial phase. The cost of homes is lower at this stage. Finding a reliable property developer is essential here.   Seller's angle   If the current owner of the property is in immediate need of funds or otherwise has to dispose of the property urgently, you may be able to strike a better bargain with the seller. If the seller is in a hurry to sell the home, s/he may settle for an amount below the quoted price.     Refurbishing the home           You could begin with a property that would need repairs on purchase. A property that has been damaged or is not well kept sells for lower prices. However it is important to factor in the additional cost that you would have to incur immediately after purchase. If the overall deal works out cheaper than the cost of a similar property in good condition, it would be a good buy.   Build your own home   Acquiring a plot of land and building your own home is another option. This project also gives you flexibility on your finances. You could start with building the basic structure and add new dimensions when you have surplus funds. Of course this is a more tedious process than buying a ready-made home.   Owning a home is a dream shared by nearly everyone. Many people sink their life's savings into purchasing a place of their own. Is this because of practical considerations, or do emotions come into play where a home is concerned? Does it make better financial sense to rent a place to live in, or to possess a property that you can ill afford?

Avoid defaults on your home loan payment

Avoid defaults on your home loan payment

Source: ChilliBreeze

Failed to comply with the terms of your home loan? Find yourself in default now? Worried that you'll lose all that you have? Read on and find out what the consequences of defaults on your home loan are and how you can avoid defaults on your home loan altogether.   Taken out a loan against your primary home to pay for your holiday home? Are you now in a situation where you can no longer afford your monthly loan repayments because you lost your job or were faced with other unforeseen circumstances? Afraid you may default on your home loan? Read on.   Most financial institutions, including leading banks, have processes in place to resolve issues of defaults on home loans. Most will urge you to restructure the financial agreement to facilitate full repayment of your home loan. There are also a number of companies engaged in collecting dues. These companies operate nationally and are paid in proportion to the money that they recover for the bank they work for. Banks also employ collection agencies and law firms to deal with home loan defaulters. However, banks and financial institutions always ensure that customers aren't at the end of rough activities just because they've defaulted.   How to avoid default: Seek help as early as possible when you realize that it's getting increasingly difficult to keep up with your monthly repayments. Lower your monthly payments by changing your repayment plan. Try and make loan repayments on time. Develop and maintain a monthly budget based on your income and expenditure. Consequences of default:   Defaults on your home loan can have long-lasting disastrous effects. You can end up losing your home if you don't deal with your default soon as well as eligibility to avail loans in the future. And don't forget that the cost of your loan increases with passing time and addition of late fees.   Have you ever defaulted on your home loan payment? How did you cope? Do you have any tips or suggestions to offer? Share them with us.

DNA (Daily News & Analysis), 21 Mar 2008. Pages 22 - 23

Best Investment Opportunities in Real Estate Market of India

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DNA (Daily News & Analysis)
21 Mar 2008

Real Estate boom in Free Fall the Soaring Interest Rates

 

Rising mercury of interest rates in the Indian economy has melted the advancements of real estate sector even though the demand is more than the supply in the Indian Property Market. Demand is the willingness to purchase backed by the purchasing power. From the study of the recent economic trend in the Indian property market, it can be observed that the rising inflation has the effect of curbing the purchasing power of the end user as well as the investor which in effect has the impact of lowering the demand which in turn would have the impact of lowering the prices in turn having the impact of reducing the supply.This circle is called recession in the market when even though the property is cheap and getting cheaper no sales is achieved inspite of the fact that the market has a very strong latent potential to absorb the available resources.

In order to conclude or analyze the scenario in Indian context, the under mentioned facts provide useful insight. Price movement of the last three to six months in the central business districts in key cities has been low although supply in the commercial real estate has increased in the coming six to eight quarters. The prices of steel, cement, etc risen sharply along with the land price.

There is a mixed investor opinion prevalent in the real estate sector that the there is a sharp decline of 10 to 15 per cent in the past six months in prime commercial areas and there is projection that there will be a further dip of 10 per cent in the coming months across key Indian cities. To compliment the projections, it has been observed that the office buildings in central business districts of Delhi have neither shown a rise nor a fall in the prices, it has remained at the same level as it was previously. Furthermore, on the study of facts, it is clear that the rentals in suburbs have either remained same or have declined.

The table lists the prices of some of the key business districts in Delhi –

Areas

Rates [Rupees per square feet ]

Connaught Place

330 to Rs 375

Nehru Place

220 to 260

Gurgaon and Noida

50 to 200

Slowdown in Mumbai

The Mumbai Metropolitan Region Development Authority which is the city planning agency for Mumbai was not able to get bidders for two plots in a new business district at the Bandra-Kurla Complex (BKC). Analysts say this is a clear indication of a recession in the real estate sector at Mumbai.

The following table give a comparative analysis of the clear recession faced by the Mumbai Real Estate -

 

Areas	Rs. Per square foot Then	Rs. Per Square Foot Now
Landmark Office Tower At Worli	550	375
Rental at BKC	450	375 (PROJECTED)

 

As far as the growth rates are concerned the following table may prove useful for analysis -

 

Growth Rates	Prevalent Then	Projected Now
Growth rate in the rentals of the prime city center	30 to 40 per cent	8 to 15 per cent
SBI’s Home Loan Growth Portfolio	20 per cent	16 per cent

Residential Property which should have become more alluring due to fall in sales price and dip in the rate of home loan disbursals currently offered by banks shows slackened demand as it still stays out of reach of the middle class pockets. This is evident by a dip of 20 to 30 percent in the apartment sales. Even though the

developers in order to boost the declined sales are offering attractive freebies like stamp duty relief, free parking lots and free interior designing for these apartments. Although the sales has declined due to lack of purchasing power in the hands of willing customers but the developers find themselves incapacitated to cut down the prices as once any such cut down is implemented it shall send feelers of recession. In ripple effect to which real estate market might have to face a market crash. Therefore it becomes difficult but important to maintain the sale prices even though there are no sales. Although it is projected that April and May of this year may change the direction of winds in the favour of the real estate segment. But if the sales does not catch with the hopes and projections, then there will be a dip and downfall of ten to fifteen percent in the property prices.

Conventionally a stock market boom is coupled with the real estate recession and a stock market slowdown is coupled with the real estate boom. But to the contrary, the recent 5000 point crash in the real estate has not shown the predictable rise.

There is a lot of market hype surrounding the areas like Greater Noida, Kundli and even some parts of Gurgaon. JLLM Chairman Anuj Puri believes that investors, who comprise nearly 20 per cent of property buyers, are staying out after the stock market crash. “The absence of speculator interest has led to a 15 to 20 per cent correction in areas like Gurgaon and Noida,” he said.

Cyberabad Highlights

The southern city of Cyberabad has seen a shift of the main target audience from the investors segment to the end users segment. The city is not facing any slowdown nor has it demonstrated any symptoms of the same hitherto but the only fact that can be highlighted is that only flats are in demand.

Bangalore Highlights

There is either a fall or stagnation in the property prices in the Bangalore’s commercial business district for the last four to five months. The reason behind the stagnation of the prices is attributable more to the increase in supply than to decrease in demand.

Prices are expected to remain sluggish all over the projection by Habitat Ventures that they could fall further by up to 10 to 15 per cent. And even more so over if the coupled with high interest rates.

Budget 2008 and Real Estate Market in India.

Overall 2008-09 budget is being considered favourable for investors in real estate market.  Although it does not offer direct incentives, the budget is likely to improve the demand and supply  for residential apartments, homes and commercial real estate by generating more disposable income.  The income tax exemption limit for men has been increased to Rs 1.5 lakhs.  This is expected to give investors more money in hand for investment.  The other tax slabs have also been raised.  It is estimated that these measures will improve people's ability to save.

The new budget also brings a lot of tax advantages for people who have taken home loan.  A household with income of Rs 500,000 will have a reduced tax liability for example they may save almost Rs 9000, annually.  An individual who is making Rs 8 lakhs will have reduced tax liability due to home loan.  For example he might have been currently a paying up to Rs 1,12,270 in taxes, but with the current rules, you may end up paying little over Rs 61,000.  So in other word it means saving of almost Rs 51000 per annum.  The new tax norms are expected to improve the affordability  in real estate market.

Some of the real estate developers are thinking of taking advantage five years tax holidays for setting up hotels.  That may promote new hotels being constructed , and it may promote religious tourism for NRIs.  The government's decision to waive off excise duty on buying bulk cement and steel is also a great relief for builders.    Removing taxes on reverse mortgage will decrease the tax burden on senior citizens. The budget is being considered as election budget, but overall is being hailed as people friendly.

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