Real Estate in India

Fallout from US can affect Real Estate Market in India

2008-09-17T11:57:00.001-07:00

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

2008-09-08T20:39:00.001-07:00

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

2008-09-08T20:33:00.001-07:00

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

2008-09-08T18:56:00.001-07:00

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

2008-09-07T21:05:00.001-07:00

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

2008-09-04T20:48:00.001-07:00

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

2008-09-01T08:20:00.001-07:00

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

2008-08-29T10:27:00.001-07:00

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

2008-08-29T09:31:00.001-07:00

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

2008-08-29T09:25:00.001-07:00

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

2008-08-26T19:40:00.001-07:00

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

2008-08-26T19:27:00.001-07:00

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

2008-08-24T21:37:00.001-07:00

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

2008-08-24T21:29:00.001-07:00

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

2008-08-07T17:10:00.001-07:00

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?

2008-08-07T17:08:00.001-07:00

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

2008-08-07T17:06:00.001-07:00

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

2008-04-27T01:00:00.001-07:00

Best Investment Opportunities in Real Estate Market of India

DNA (Daily News & Analysis)
21 Mar 2008

Real Estate boom in Free Fall the Soaring Interest Rates

2008-04-04T02:28:00.001-07:00

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.

2008-03-09T20:39:00.001-07:00

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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Amrapali Platinum Project

2008-03-08T22:17:00.001-08:00

Construction is in full swing. This project is located in Sector 119 of Noida. It has 3-4 luxurious bedrooms, Penthouses, Condominium and Dream Villas.

Amrapali is also coming up with High Tech City in Jaipur. Booking has already started.

Eldeco's Project in Pi Sector in Greater Noida

2008-03-08T21:58:00.001-08:00

Bottom Line: Play Safe in Real Estate Market in Delhi NCR

2008-03-06T23:13:00.001-08:00

The two broad categories in which the buyers in the Real Estate sector in India can be categorized are – End-users and Investors. The year 2007 in the real estate sector seemed caught in the vicious circle of lack of sales leading to low prices and low prices leading to lack of sales in consequence. This is contrary to the general principle of economics where low prices leads to increase in demand and increased demand leads to increase in prices, eventually settling at a higher price than previously in the Market. But it is more so in the case where market consists of the latter category of buyers in the market. This trend has been very evidently witnessed in one of the most upcoming and promising areas neighboring Delhi NCR i.e. the new apartments at Green Meadows at sector Pi of Greater Noida. At present, the project is offering two and three-bedroom apartments to the public. To compliment with the beauty of the architectural make and design of these apartments, they are decorated with classic nomenclatures as “Castle, Citadel, and Riviera.” There is a sum total of 950 residential units in this project. Other Housing societies at sector Pi would include Parvnath's Palacia and Privilege, Unitech's Horizon amongst others.

The basic segment of the society that these projects are catering to would be the middle class and the upper-middle class.

On the contrary to the general economic trend the real estate sector is actually phasing a rare trend, where high interest rates and EMI’s should make purchase of properties a much more lucrative preposition for end users as it offers them cheaper cost of acquisition coupled with social security but it is evident that it has at least kept the short term investors at bay. Even though the real estate market at Greater Noida has majority of the end users than of investors, the fact that the sales did not catch a rising rage sweeping a lion’s share of the total sales in the sector in spite of the low prices last year defies some of the premises of rationality.

Playing safe – Survival of the Fittest or the long term investors

Attributing to the Lack of a consistent pattern in this sector at the moment, investment at this time is only a safe bet for long term investors capable of taking a calculated risk to endure falling or rising tides of the prices in market. Although stagnation of market prices at the same level is a more than likely probable scenario at Greater Noida.

The following table gives an idea of the prevalent rates in a comparative format in the region:-

Residential Rates (Rs. Per Sq. Ft.) *

Greater Noida

Green Meadows

Noida

Builder rate

2,800-3,500

Rs 3,200

4,000 –5,000

Secondary market rate

2,500-2,800

*Plot prices in sector Pi is around Rs 25,000 per sq m. The rates in the nearby Noida and areas parallel to the Expressway are much expensive in comparison to current rates in sector Pi.

Factors Affecting the Price Movements in the Market

1. Commercials:

§ The prices of commercial spaces at sector Pi range between Rs 14,000-15,000 per sq ft.

§ Green Meadows has a small shopping center by the name of ‘Arcadia’. The complex has around 45 identical shops of which only a couple of shops are operational at present. On a reasonable estimate, it is predicted that about 40% of the shops will be operational and occupied by April 2008. Owner of the shops are rejecting tenants in expectation of a better deal of high rentals or perhaps a high capital value for their shops.

2. Rentals :

Type of Space

Rupees per Square foot month*

Commercial Space

6,500 to 7,500 **

Two bed room residential Space

7,500

Three bed room residential Space

8,500

Flat or Duplex at Green Meadows

> 10,000

* These rentals do not include the maintenance charges.

** The owners expect around Rs 10,000 to 11,000 per month.

3. Capital value

Eldeco has made the property deal customized to individual preferences of the end users just as if the pizza base remaining the same, each to their taste can add their choice of the toppings. Depending on the individual choice of facilities chosen an additional price of 3 to 5 percent over and above the basic price is charged by Eldeco to customize the deal to suit the needs of the buyer.

Quoting instance of Riviera and the Citadel units, the first floor units have the exclusivity of having lawn area priced at Rs.1,200 per sq. ft. The facilities that can be availed at the discretion of the user would include monthly maintenance, external electrification, fire fighting charges, car parking space, basement space for storage and power back-up charges besides many others. The car parking slots range from Rs 55,000 to Rs 2 lakh, being single lumsum payments. Facility of storage space in the stilt and the basement would increase the basic price of the property at a rate of Rs 1,200 per sq ft and Rs 1,000 per sq ft, respectively.

4. Easy to commute

Sector Pi is very well connected to Noida and Delhi. Unlike earlier days, there are many private- and government-run buses connecting Greater Noida, Delhi and Noida.The entrance point to Greater Noida known as Pari Chowk is just 2.5 kms away from the Green Meadows. Sector 18 market which is not only a happening place for youngsters with its malls and other attractions but also a very established market at Noida is only a twenty minutes drive from Sector Pi.

The Noida-Greater Noida Expressway besides offering a smooth and traffic less drive to Delhi, it has also reduced the distance between Delhi and Greater Noida considerably.

5. Nearing possession

Out of the three projects, two will be ready for sale this year viz. Castle apartments and Riveria Apartments. The Citadel Apartments would be ready for sale by mid of next year. These apartments definitely offer a lucrative preposition to the buyers at the moment especially the end users. In the Apartments and duplexes built in the first Phase, 100 residential units are already occupied by the families. Some of the societies having 252 residential units have already entered into the secondary market of sale and purchase of the properties. Quoting a few examples would include names like Amazona, Savana, Gardenia, and the Vardana.

6. Bright Future Prospects of Appreciation in the Capital Value

These properties are a real take away not only from the point of view of the end users residing with their families but also from the point of view of the Investors.

As the State Government has laid down plans for monorail and metro connectivity in the area, this shall have a direct impact on price hike of the property in the area. Adding more glitter to the gold is the preposition of the government to have an international airport at Jevar. One more feather in the cap would be the proposed establishment of Formula One racing track here, making the place an internationally lucrative hub. Thus, resale value of the units would offer wealth creation and appreciation. Definitely the deal is a wiser one.

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Jaypee Greens Premium Apartments - a Wish Town in Noida

2008-03-03T22:32:00.001-08:00

Jaypee Greens Noida Project is called "Wish Town" and located strategically in Sector 128 of Noida right on the Noida Expressway, a few minutes drive from Delhi. This project has total 18 Towers, out of that 3 are Imperial towers and rest are Kalypso Tower. The only difference between the two towers are the number of floors. The Imperial Towers are Ground+30 stories, while Kalypso Towers vary from 14-22 stories. The other difference is that Imperial Towers do not have 2 bedroom apartments.The smallest apartment is priced at about 97 lakhs. The project will be quite similar to Jaypee Greens project in Greater Noida.

The price for all types of apartments is Rs 6100/ sq ft. The 4 bedroom apt with terrace is 3298 sq ft priced at approximate Rs 2.01 Crore. The 3 bedroom apt with terrace is 2400 sq ft. priced at approximate Rs 1.46 Crore. The plots are also available and are priced at Rs 1.05 lakhs/ sq ft. The minimum plot size is 240 sq ft.

All apartments are Golf Course facing and there is no additional cost for it. The Golf course membership however is not included in the price. There is no estimate how much that might cost. The possession is expected by the end of 2010.

Rainy day ahead for Real estate Developers

2008-02-27T22:29:00.001-08:00

Real Estate Developers will slowdown construction activity, Goldman Sachs Group Inc has predicted. Unitech Ltd is India second biggest developer, second only to DLF. Unitech is expected to slow the construction work because of increase in prices. Higher Interest rates, strict monitory policy are all leading to credit crunch. Rising Steel prices obviously does not help. Goldman Sachs is one of the well respected company which helps the investors predict the market conditions. Earlier Goldman had estimated that Unitech will deliver 50 million square feet of space by 2010; but now the same area might be delivered in 2013 instead of 2010. Unitech could sell only 3000 units in 9 months ending December as compared to 7000 Units in the previous 9 month period.

Other Developers are showing similar signs of weakness. Ansals API and Parsvnath are likely follow the similar path. Analysts have pushed their expectations by 5 yrs for Parsvnath and 7 yrs for Ansals API. The properties are likely to take a U turn by 2010, when Common Wealth Games start in Delhi NCR.

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Parsvnath Preston in Sonepat

2008-02-26T23:24:00.001-08:00

After selling Royal Villas in Parsvnath City in Sonepat, Parsvnath has launched Preston apartment with attractive investment options. While this project is located right on six lane NH-1 with superb connectivity. It si 17 km from Delhi border. The 2 bedroom apartments start at 24.6 lakhs and will be 1265 sq ft in area. The 4 bed room apartments will cost you lust less than 50 lakhs and will have area of 2550 sq ft.

The project is expected to cost over 500 crores and will have a saleable area of 2.2 million square feet. This will be apart of the Township with malls, health care facilities and school.

The developer is asking just 15% of the amount as the booking amount after that buyer will not have to pay anything until the possession which is expected in 3 years. The project boasts the carefree lifestyle. There will be 3 tier security and state of the art interiors. Abundant balconies and greenery. The drawing and dinning rooms will be attached to balconies.

Downside-There is oversupply of apartments in Kundli/ Sonepat area.

Upside: Right price, great location, very organized western style community, great investment for long term, Trustworthy builder.

Victoria by M2K synonymous with "luxury living" near Model Town

2008-02-26T22:29:00.001-08:00

M2K a well known real estate developer is near completion of sale of luxury apartment nestled in vast 8 acres of prime land in Delhi just adjacent to Model Town. Besides luxury the connectivity of the location is the biggest advantage. There are very few projects in Delhi which are being developed in an organized way. This is just next to upcoming Metro station and Parsvnath Mall is across the road. It is located right on the Ring Road. M2K Developer has come up with a few more apartments in the project, rest of them are all sold. It is much less priced than La-Tropicana project by Parsvnath located near Mall Road close to Delhi University area and Civil Lines.

Over 5 acre area will be maintained green as per city stipulation. It will be walled all around with a security system that will monitor every visitor in the compound. The only downside is Azadpur Market/ Subzi Mandi which is expected to be relocated to a different place. The market causes a lot of traffic congestion. The area however is bustling with new roads and bridges which will definitely be a major boost for the area.

Eldeco has plans for more new projects

2008-02-26T21:52:00.001-08:00

Eldeco Infrastructure & Properties is in discursion with Private Equity Investors to raise $250 millions. Since first incorporated in 2000, Eldeco company has real estate developments worth Rs 3,500 Crores spread over Delhi NCR, Banglore, Chennai and Hyderabad.

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Beware of Phony Builders

2008-02-25T23:10:00.001-08:00

A Delhi based phony real-estate developer was denied bail. He is accused for duping over Rs 14 crores from innocent, unsuspecting buyers. Manish Aggarwal, the accused took money from over a thousand investors on pretext of Prelaunch booking for plots in 'Sunshine City' real estate project in Jaipur. But when actual launch did not occur the investors got Suspicious. They later found out that Mr Aggarwal did not have enough land that he earlier had claimed. Although The 'developer' has promised to pay the investors back but this was another empty promise.

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Hot spots to buy properties in Delhi NCR

2008-02-24T21:37:00.001-08:00

Investors may like to take a fresh look on various options available for investment. Greater Noida is currently one of the prime destination. The buyers can get anything from two-bedroom apartment to four-bedroom luxury apartments. Independent houses, villas and penthouses are other choices that you may look at. The price can vary from Rs 25 lakhs to over one crore. Most of the real estate analysts are expecting an appreciation of 10-20 percent over next year. Law, order and connectivity continues to be a challenge for people investing or planning to live in Greater Noida.

Noida sector 50 is another area with great potential. Some of the well known builders are already coming with the projects in Sector 50 . Omaxe, Mahagun are among some of them.

The area with greatest real estate activity happening is Noida- Greater-Noida Expressway Corridor. Since ancient time Rivers and Roads have help flourish communities. The expressway will boost popularity of the real estate projects because of unmatched connectivity. The expressway snakes through sectors 93, 93A, 93B, 96, 97, 98 and 128. The projects are priced at premium with some of the luxury projects such as Jaypee Greens range from Rs 6200/ sq ft to Rs 7000/sq ft. Omaxe, Parsvnath, Unitech, Jaypee and Eldeco are among the major players in the area.

Indirapuram is another bright spot for buyers with budget in middle range. Among the good projects are Gaur Green Avenue from Gaursons, Majestic by Parsvnath and Icon by Supertech. Shipra Suncity by Shipra Group has brought fame to this part of Ghaziabad. Ghaziabad Development Authority has Shown inclination in improvement of infrastructure of Indirapuram.

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How expensive is it to buy a property in Greater Noida.

2008-02-23T17:25:00.001-08:00

Prices of apartments in Delhi NCR have not increased sine last one year. If you consider 3-5 percent of inflation you might realize that no increase mean actually decrease in prices.

Noida may be unaffordable for some of the buyers with apartments ranging from Rs 4000-5000/sq ft. Prices in Greater Noida are 30-50 percent less than Noida. If you are planning to buy a pre-owned apartment in Noida you may expect to spend Rs 2500-2800/sq ft. The rate to buy a new property from developers could be a little higher in range of RS 2800-3500/ sq ft. The new up coming Green Meadows project is being sold at RS 3200 per sq ft. Plot prices in Sector Pi is about 25000-26000/ sq M.

Do not forget the additional cost attached when you buy any condo. PLC, also known as Preferential location charges may vary from 3-5% of the basic price. Car parking charges may add anywhere from Rs 50,000 to 3 or 5 lakhs. In addition as an owner you will pay monthly maintenance Charges, power back-up charges etc. But Greater Noida is still considered the best option if you want to live in Delhi NCR area.

Ghaziabad a new Gurgaon in UP!

2008-02-22T23:49:00.001-08:00

Ghaziabad is increasingly considered by investors as a place of opportunities. Vasundhra, Vaishali, Indirapuram and Kaushambi are all booming. These areas are likely to have several new malls and Commercial properties before Commonwealth Games start in 2010. The Large corporate foreign companies see this a golden opportunity because of large population in the area and buying power of people living in these areas means flourishing businesses.

Ghaziabad has caught attention when real estate prices in Gurgaon and Noida are sky high. It has numerous Malls, theatres and corporate hubs all located within a few kilometres from Delhi border. Shoppers can have chance to shop in malls which are among The best in Delhi NCR area. Pacific and East Delhi Malls are located in Kaushambi, while Indirapuram hosts prestigious Shipra and Concept malls. The big industrial areas in and around Ghaziabad is attracting new residents into this area. The connectivity to Noida, Greater Noida and Delhi is the biggest advantage.

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New Buzzing Area with Real Estate activity in your backyard

2008-02-22T22:21:00.001-08:00

A number of new townships are sprouting up in Corridor around National Highway-24. Indirapuram is already a well known town with densely packed population. But these are the new project which are drawing attention of a lot of investors.

Crossings Republik is one of the new projects being developed by Seven well established builders. These builders include Supertech, Gaursons India, Assotech, Mahagun, Paramount, Panchsheel Developers besides Ansals API. This new township will be spread over 125 acres and will cater to variety of buyers. This will provide from elegant basic to luxury apartments varying from 2 bedrooms to 4 bedroom. Crossings Republik is boasted to be an integrated township with hospital and markets all part of it. Educational centres will also be part of this new super town.

Developers are very enthusiastic about this new real estate project. Another key township in the area of Delhi NCR is Ansals API Aquapolis besides well known Hi-tech city.

The biggest advantages of these new real estate projects are their proximity to Delhi, Noida, Greater Noida and Ghaziabad. But the biggest attraction is the reasonable price and world class township. The Downside: the G D A needs to streamline and make improvement in infrastructure particularly the roads. The changing governments in up also create uncertainties.

Recently Mayawati has passed Hi-tech township Policy which states that Hi-tech Townships should be developed on a minimum of 1500 Acres of land and requires capital investment of minimum Rs 1000 crores. A good trend to make policies and rules more transparent.

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Real Estate Prices are likely to go down

2008-02-12T22:54:00.001-08:00

The article published in Economic Times suggests a Sharp decline in Real Estate Prices in India particularly Delhi NCR area. Plenty of homes available in the market is creating oversupply. High Petrol prices are likely to make inflation worse. The banking crisis in US and Europe is creating pressure for financial institutions in India also. Now banks are more cautious when they lend money. Buyers should target for long term investments. A purchase for quick flip may not be a wise move. Prices in Gurgaon, Noida and Greater Noida has already. seen about 10-15% correction. The stage is set for a deeper cuts. The Smart buyers/ investors may actually be looking for such a great opportunity. But you should have long term goal to reap the rewards.

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Technorati Tags: Real Estate India,Property Prices,Real Estate prices

Prices of Properties in Delhi NCR

2008-02-01T20:18:00.000-08:00

Properties in Delhi NCR are are likely to increase in Prices.

Metro in Gurgaon is likely to increase Real Estate prices

2008-01-01T11:39:00.001-08:00

Omaxe Nort Avenue at Bahadur Garh, Haryana

2007-12-29T21:26:00.004-08:00

Booming prospects for Real Estate in India

2007-12-29T21:26:00.002-08:00

Parsvnath Launces Gateway mall in Rajpura Punjab

2007-12-29T21:26:00.001-08:00

Gurgaon Master Plan 2021

2007-12-29T21:26:00.000-08:00

The Haryana govt has started approving the group housing plans for private builders. The approved residential projects are spread over 500 acres. Among the builders who got licenses include Raheja and Emaar-MGF developers.
Reportedly Raheja Developers will develop residential projects in Sector 92-95, Sector 108 and Sector 59. Emaar-MGF Developers have licenses for Sectors 62-68. Some of the developers have already pre-selling the projects in the areas however there is no infrastructure in place. These developers are claiming that infrastructure will be in place when the residential apartments will be ready for the posession.

Times of India New Delhi Edition, 22 Dec 2007. Page 1

2007-12-27T11:25:00.000-08:00

Times of India New Delhi Edition
22 Dec 2007

Properties in India

2007-12-26T22:21:00.003-08:00

Real Estate Oppurtunities for investment in India

2007-12-26T22:17:00.001-08:00

Real Estate Oppurtunities for investment in India

2007-12-26T22:17:00.000-08:00

Capital Gains from Real estate in India

2007-12-24T16:15:00.004-08:00

news

2007-12-24T16:15:00.003-08:00

Gmail - contact info_data.xml - neelsaini1@gmail.com

2007-12-22T21:21:00.000-08:00

http://mail.google.com/mail/?account_id=neelsaini1%40gmail.com#all/11705711291638ea

2007-12-22T13:19:00.000-08:00

Hello

2007-12-22T13:15:00.000-08:00

Times of India New Delhi Edition, 22 Dec 2007. Page 1

2007-12-22T11:57:00.001-08:00

Times of India New Delhi Edition
22 Dec 2007

Gulf News, 22 Dec 2007. Page 27

2007-12-22T11:50:00.001-08:00

Gulf News
22 Dec 2007

Real Estate in India: Gulf News, 22 Dec 2007. Page 27

2007-12-22T11:44:00.000-08:00

Real Estate in India: Gulf News, 22 Dec 2007. Page 27

Gulf News, 22 Dec 2007. Page 27

2007-12-22T11:42:00.001-08:00

Gulf News
22 Dec 2007

Risks in Real Estate

2007-12-16T22:43:00.000-08:00

From building irrigation canals in rural Andhra Pradesh in the late 1980s, Maytas Infrastructure has come a long way to establish itself as one of the biggest players in construction business.
“We started off making small irrigation canals in rural Andhra Pradesh. The state government’s emphasis on agriculture helped a lot in getting projects at that time. Slowly we moved on to buildings and structures,” says the company spokesperson. At present, the company has a contract to develop two airports in Karnataka.
The company issued its shares to the public in October this year at Rs 370 per share, something that has turned out to be a goldmine for investors. The share price has more than doubled (up by 240 per cent) in less than two months, since their listing on October 25. It closed on Thursday at Rs 889.40.

DLF announces luxury mall plans for metros

2007-07-11T21:43:00.000-07:00

Lack of space for luxury goods retailing India will soon be over. Construction giant DLF has announced its plans for building luxury malls akin to its prime project Emporio DLF in Vasant Kunj in New Delhi, in South Mumbai, Hyderabad and Chennai.
In addition, the four million sq ft Mall of India that is coming up on the NH 8 near Delhi will also offer luxury retailing space to the global brands. Emporio DLF is slated to open its doors early next year.
Speaking to HT exclusively, Emporio DLF CEO Kajal Aijaz said the idea is to offer world class retailing ambience to the global luxury brands. “We will soon start working on our projects on other cities in India. Mall of India will be done by LA-based architect firm Jerde, responsible for the construction of the Mall of Minneapolis and the Edminton Mall in the US.
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