TDI recently launched a limited edition of exclusive 4BHKs and penthouses in their TDI City project in Kundli.
Kundli has emerged as one of the most preferred residential and investment destinations in the NCR. What Gurgaon is to South Delhi, Noida and Greater Noida to East Delhi, Kundli is to people of North and West Delhi, who are now making it their foremost choice of investment.
Located on the signal-free National Highway 1, connecting Mukarba Chowk in northeast Delhi to Sonipat, Kundli is now being considered a gateway to prosperous states like Haryana, Punjab and Himachal Pradesh. Also, with prices of land and real estate hitting the roof in other parts of the NCR, Kundli is a hot investment proposition as prices are still competitive here.
TDI Infrastructure Ltd, with 1,250 acres under its belt, is the premier realty developer in Kundli and its TDI City project has already become a focus for investors from the NCR. Last Friday, TDI launched Signature in Tuscan City. This is a limited edition of 4BHK premium apartments and penthouses.
Signature tower has 30 units in all with the 4BHK + servant room of 2,490 sq ft and the duplex penthouses of 4,010 sq ft being offered for Rs 2,600 per sq ft. The project is slated to be completed in three years.
Kamal Taneja, managing director of TDI Infrastructure Ltd, says: “With the launch of Signature, we have created a landmark offering which delivers an exceptional lifestyle. The project is strategically located on the NH-1 in Kundli in Sonipat, which is the new growth corridor of Haryana. Signature tower combines tasteful design fitted with the latest in modern conveniences, and it perfectly sets the tone for family living.”
Taneja says that the land price in Kundli, which was about Rs 5,000 per sq yard when they first launched their project a few years ago, has now touched Rs 25,000-30,000 per sq yard today.
To put these figures in perspective, plots are selling at nearly Rs 60,000 per sq yard in Gurgaon and Rs 4-5 Lakh per sq yard in Rohini and Pitampura. Thus, from an investment point of view, Kundli promises the best returns for a few years to come, viz-a-viz other cities in the NCR, Taneja says. Likewise, a 2BHK of 1,100 sq ft costs Rs 25 Lakh in Kundli, while a flat of the same dimensions would cost Rs 1.25 crore in Rohini or Pitampura, Taneja says.
USPs of Kundli & Signature:
Signature is located in Tuscan City, which is part of the 1,500-acre planned TDI City in Kundli
1. 25km from Rohini and Pitampura, and only 2.5km from the Delhi border
2. Delhi government developing 100 meter-wide road from IGI airport to Narela (via Bahadurgarh); Kundli is only 3km from Narela
3. Adjacent to KGP and KMP expressways. KMP likely to become operational in December
4. Near the 5,000-acre Rajiv Gandhi Education City. Nine universities already allotted land here
5. Easy drive through the signal-free Mukarba Chowk and the NH-1
6. Azadpur mandi, Asia’s largest fruit and vegetable warehouse, to be shifted to a 70-acre plot in Narela To be connected by Metro line
Courtesy - Times property - Date: 21st may, 2011

Architects at a meet in Mumbai called for people-centric transportation and environment-friendly infrastructure development
Rizvi College of Architecture (RCA) hosted the 13th International Conference on Humane Habitat (ICHH) in January at the college premises in Mumbai. Professor Frank Lyons, UK; Professor Anna Rubbo, Australia; Mazlin Ghazali, Malaysia, and Razieh Rahimi, Iran, were the key speakers from abroad. Vijyalakshmi, additional chief transportation planner of Mumbai Metropolitan Region Development Authority (MMRDA), Ajit Khatri, ex president of Practicing Engineers Architects and Town Planners Association (PEATA), Paresh Kapadia, joint secretary of Indian Institute of Architects (IIA), Professor Alok Ranjan, junior vice-president of IIA, were the guests of honour at the inaugural session of the IIA.
Frank Lyons said that humane values should be given due consideration in planning and designing of our transportation and infrastructure. Anna Rubbo presented case studies of Global Design Studio where students from several countries have studied and proposed environment-friendly and socially relevant infrastructure for evolving sustainable communities.
Architect Razieh Rahimi gave a presentation on transformation of Tehran through a makeover to public transportation systems from a car-centric planning. Architect Mazlin Ghazali proposed innovative designs with alternative hexagonal patterns at the neighbourhood level to improve the living environment.
Madhav Deobhakta, president of World Society for Ekistics, suggested that architects, planners and development authorities should adopt a scientific ekistics approach to the issues and problems of human settlements. He called for an interdisciplinary approach to urban planning.
Vijyalakshmi, additional chief transportation planner of MMRDA presented MMRDA’s vision of transportation and infrastructure development plans. She said that with the development of east-west linkages, the traffic situation will improve considerably.
Akhtar Chauhan, founder president, International Association for Humane Habitat (IAHH) called for the active participation of citizens in planning and development process for transportation and infrastructure development. He felt we need to give a higher priority to public transportation.
Architect Nitin Killawala said that various authorities are giving step motherly treatment to the suburbs. “While south Mumbai gets an underground metro, the suburbs have been promised an overhead metro, much to the dislike of the suburbanites. These suburbs have experienced high growth and they are cities in their own right. The present programme of development of Mumbai Metro from Versova to Ghatkopar is behind schedule and is unlikely to get commissioned in the near future.” He said that without involving all the stakeholders in the planning process, sustainable development is not possible.
Geetam Tiwari of IIT, New Delhi, spoke of the need for a paradigm shift in transportation policies. She felt that people- friendly Bus Rapid Transit System (BRTS) is an environment-friendly option. She advocated a hierarchy of systems with non-motorized system like pedestrian, bicycle, cyclerickshaw, followed by public transportation and lastly private motorized systems.
Sudhir Badami, civil engineer and transportation analyst from Mumbai also strongly recommended for a BRTS and skybus systems for Mumbai.
S M Akhtar, dean of faculty of Architecture and Ekistics at Jamila Millia Islamia, New Delhi, said there is no alternative to increasing the urban stock through development of new towns and cities.
Architect Manas Vanwari proposed a BRTS system along the east-west linkages within the island city of Mumbai. Young RCA graduate Anusha Shetty proposed a revamp of Andheri station. Yezdi Karanjawala suggested that Dadar station precinct handling the highest traffic in the city should be made more efficient and beautiful. Aameer Chauhan proposed that water transport network along the western and eastern waterfronts should be taken up without further delay.
Architect researcher Vinit Nikumbh presented his studies on walk ability in Mumbai. He stressed on the need to consider the local context while laying out the town planning schemes and development plans for improving the urban infrastructure.
He said the cultural and social aspects should be given due consideration while making local area plans for improving pedestrian facilities. He suggested development of pedestrian precincts around station areas. He presented his detailed study of Vile Parle suburb. Professor Dhiraj Salhotra presented design guidelines for development for sidewalks.
Anil Nagrath advocated local area level studies to improve the transportation systems and social infrastructure to enhance environmental quality. Akhtar Chauhan, the convener of ICHH 2011, called for citizen participation in bringing about change in our developmental strategy. He presented a draft Citizens’ Charter for Sustainable Transportation and Infrastructure Development, which was adopted by the conference.
Courtesy - Times property - Date: 21st may, 2011

Form Vasant Kunj to Kundli, the DDA Flats Cover a Wide Price Range
Finally, Delhi Development Authority has announced what everyone has been waiting for. Its mega housing scheme will be open from November 25 to December 24 this year. Around 16,000 flats will be offered for the draw. These are located all have Delhi in colonies like Vasant Kunj, Mukherjee Nagar, motia khan, Jasola, Dwarka, Rohini, Narela, Jaffarabad, Kondli and Gharoli besides other colonies.
The cost of construction of these flats ranges from Rs 1536 to Rs 6069 per square feet. The flats located at Vasant Kunj, which have been built according to higher specifications, will attract a higher price. The cost for the new scheme flats includes lumpsum maintenance charges for exteriors and common portions.
In order to make the flats accessible to all sections or society, there is a mix of one bedroom, two bedroom and three bedroom houses, expandable units and Janta one room houses. It is for the first time that the one-room tenements located in Narela, Trilokpuri and shivaji enclave have been included in the scheme.
Any Indian citizen who has attained the age of 18 years can apply for the flat provided he or she does not own any residential flat or plot in full or in part, on leasehold or freehold basis, in the capital either in his or her own name or in the name of his/her wife/husband or in the name of minor or dependent children.
Both husband and wife can apply but only one will be allotted a flat n case both are successful in the draw. One person can submit only one application form. There are no income criteria. The applicant can apply only if he has a valid pan card and a bank account.
For the first time, it has been made mandatory that the entire allotment money should be from the bank account of the allottee and a certificate to this effect will have to be submitted at the time of possession.
The applicant will have to deposit a registration fee of Rs 1.5 lakh. But for the Janta one-room tenement category, the amount is Rs 50,000. The cost of the form is Rs 105 and it will be available at various designated branches of the banks. The form details which have been provided in the brochure will be uploaded on the website of DDA on November 25.
The reservations for scheduled castes will be 17%, scheduled tribes 7.5%, one per cent for war widow, one percent for the physically handicapped and one percent for ex-serviceman.
Drawing a lesson from last time when the draw came under a cloud, DDA says to ensure that the money is deposited by the allottee only, a copy of the pass book along with bank certificates will have to be given at the time of possession and it will also be sent to the income-tax department by DDA.
The draw will be held within a period of four months from the last date of closure of the scheme and, therefore, no interest will be paid for this period. Money will be refunded to unsuccessful applicants at the earliest, and in case the money is not refunded within four months time from the closure of the scheme, simple interest at the rate f 5% per annum will be paid. The refund as in the earlier scheme will be paid though the banks only.
Courtesy - HT - Dt -20-11-10

AVAILABLE 1, 2, 3 BHK houses, priced between Rs. 9 lakh and Rs. 1.12 cr, up for grabs
Your wait to own an affordable house in Delhi could end soon, with the Delhi Development Authority launching its new housing scheme next Thursday. It is biggest housing scheme till date, the Delhi Development Authority (DDA) is offering 16,000 flats, priced to suit all budgets across the city.
Applicants will have to deposit Rs 15 lakh as registration amount, which will be refundable. The scheme will be launched on November 25 and applications will be accepted till December 24.
The draw will be held within four months from the last day of closure.
The flats are located in areas such Vasant Kunj, Mukherjee Nagar, Motia Khan, Jasola, Dwarka, Rohini, Narela, Jaffarabad, Kudli and Gharoli.
There is a mix of one bedroom, two bedroom and three bedroom houses and the prices are between Rs 9 lakh and Rs 1.12 crore.
The cost of construction of these flats ranges from Rs 1,536 to Rs 6,069 per square feet. The most expensive flats in the lot will the ones in Vasant Kunj.
These furnished flats have been made with higher specifications and will cost more than Rs 1 crore.
Information brochures for the housing scheme, along with application forms, will be available at select branches of state bank of India, IDBI bank, Axis Bank, HDFC bank, Central Bank of India, ICICI Bank and Union Bank of India, Brochure will also be uploaded on the DDA website on November 25 and applications can be submitted online too.
Singed by controversy due to forged documents being submitted by several applications in its last housing scheme in 2008, the DDA has introduced more stringent rules, this time around.
A new condition, that requires the allotment money to be from the bank account of to allottee, has been inserted.
The allottee will also have to submit a copy of the bank passbook and bank certificates at the time of possession.
This is also the first time that houses for the economically weaker sections of society have been included in a housing scheme. These flats include janta one room houses in areas like Narela, Trilokpuri and shivaji enclave.
These houses are priced between Rs 3 and 6 lakh the registration amount is Rs 50,000.
Eligibility criteria
• Any citizen of India, not younger than 18 year
• Applicant should not own any residential flat or plot in full or in part on lease hold or free hold basis in Delhi either in his or her own name or in the name of spouse o r minor or dependent children
• Both husband and wife can apply but only one will be allotted flat in case both are found successful
• One person can submit only one application form
• There is no income criteria
• Applicant needs to have valid pan card and a bank account
• Allotment money should be from allottee’s bank account
How and where to apply
• Brochures are available at select branches of SBI, IDBI bank, Axis Bank, HDFC Bank, Central Bank of India, ICICI, and Union Bank of India
• The cost of the form is Rs 105; details of brochure available on DDA website from November 25
• Documents to be submitted include self-attested copy of PAN card, proof of residence and self-attested copy of bank account
• The reservations will be such: SC:17%, ST:7.5% and one percent each for war widows, disabled and ex-servicemen
Courtesy - HT - Dt -20-11-10

Haryana will give financial incentives to those who abstain from initiating litigation over land acquisitions.
In a forward-looking move to reduce the number of litigations and to expedite land acquisition in the state, Haryana government introduced a no litigation incentive to those who abstain from initiating litigation over and above the government fixed rate. This revised policy is likely to give a leg up to planned development of cities and other urban areas in the state. The amended policy is also likely to placate angry farmers in the state who have been demanding a hike in compensation.
Experts feel this will also give a push to the development of residential as well as commercial space in cities like Gurgaon, Faridabad and Sonipat.
“The increased minimum floor rate(MFR) might also pave way for withdrawal of several cases pending in different courts-meaning, the government residential projects which are now facing problems would get major relief,” said a real estate consultant. As per the amended land acquisition policy, the MFR has been almost double and in some areas it has been increased further: in a clear-cut commitment to push rehabilitation of the affected families the government announced that landowners will be given government jobs. The change3s came into effect from September 7.
In his announcement, the state chief minister Bhupinder Singh Hooda said the highest of Gurgaon. Under the innovative concept of no litigation incentive, landowners will get Rs 72 lakh per acre of land falling under the Gurgaon municipal limit. Otherwise, the revised MFR for Gurgaon land owners would be Rs 40 lakh per acre against the prevailing rate of Rs 22 lakh per acre.
“This was long due for the farmers and we wanted to come out with a progressive land acquisition policy. This has been widely welcomed by farmers and landowners,” said the CM’s media adviser Shiv Bhatia. However, many experts are sceptical and question whether this policy won’t end up giving private players an advantage. “Landowners would prefer to sell their land to private players at a higher rate than letting the government acquire it at much lower price. They would end up taking the case to courts,” said a property consultant.
As per the revised rate, for land located within the notified limits of Faridabad and Panchkula municipality and areas falling outside the development plans of Gurgaon-Manesar Urban Complex, Sohna and Sonipat-Kundli urban complex, the MFR has been fixed at Rs 54 lakh per acre. This will include Rs 6 lakh as ‘no litigation incentive’. The areas which fall under the development plans of Bahadurgarh, Rothak, Rewari, Dharuhera,Bawal, and Panipat towns, the MFR is Rs 45 lakh per acre, including Rs 5 lakh as no litigation incentive.
The government has announced an increase in annuity amount payable over 33 year, as well as its incremental annual hike, along with an offer of bigger-size plots in case a residential property is acquired. The affected farmers would also be offered industrial and commercial plots keeping in view the location of the land and in case they are rendered landless after the acquisition.
The minister of state for agriculture and Gurgaon MLA Sukhbir Kataria, has said that as per the policy, in case a landowner whose land is acquired purchases alternative agricultural land within the state in tow years, he would be entitled to get exemption on stamp duty and registration charges.
“Moreover, 2@ of the land acquisition compensation amount will be set apart by government agencies like HUDA and HSIIDC for community development and infrastructure works in villages, which are affected by the land acquisition for industrial or residential development. Similarly, another 1% of it will be use on skill-development initiatives for the dependents of oustees and other landless people,” he adds.

Courtesy – Times Property – Dt – 20-11-2010

TDI has opened bookings of Tuscan Heights Phase-II with 250 apartments following overwhelming response of Tuscan Heights Phase-I project at Kundli. Rajarshi Bhattacharjee reports
As the real estate sector in NCR is in full infrastructure limited has more than just pocket friendly price to offer with its strategically located project at Kundli. After an overwhelming response for Tuscan Heights Phase-I, TDI has introduced Tuscan Heights Phase-II where luxury meets affordability.
A part of sprawling 53-acre Tuscan city. Tuscan Heights Phase-II is located at TDI city at Kundli. Nestled right beside the NH1 in a clean-green ambience, it is 15 minutes signal free drive away from up market residential hubs of north and North West Delhi. For it s strategic location on the border of Delhi along NH1, Kundli is considered the gate way to prosperous states like Haryana, Punjab and Himachal Pradesh.
Uniqueness of the location and land rates has also made this fast developing city an ideal destination for investment. Apart from the third existing industrial zones nearby – HSIIDC, Kundli industrial Area (KIA) and Rai Industrial Area (RAI), the growing industrial and business zones here are likely to generate significant job opportunities, Tuscan Heights also boasts of having the upcoming 5000-acre Rajiv Ghandi Education City in its proximity that is likely to emerge as a global academic hub. Top universities from around the world and a number of their Indian counterparts have already expressed interest to be a part of the Rajiv Gandhi Education City at Kundli.
On the other hand, land rates at Kundli are presently one-tenth of what these are in up market residential areas of North Delhi viz Pitampura. Rohini etc. , which is an opportunity for both customers and investors. Appreciation of value is also estimated to be significantly high considering the planned development and investment prospects here. When TDI city was launched four year back, land rates Kundli was Rs 4,750 (approx Rs 5,000) per sw. yds at TDI City. Today it stands at close to Rs 25,000 per yads. Rate has per sq. yds. This Rs. 25,000 per yds. Rate has potential to further appreciate manifolds in near future.
In lines with the first phase, Tuscan Heights Phase – II is designed to offer the look and feel of Tuscany in Italy, which with its capital Florence is considered as the birthplace of Italian renaissance. A typical Tuscan village is synonymous with the landscape dotted with heritage architecture, pebbled pathways, ornamental street lamps and railings, fine cuisine, exquisite red wine, along with music, opera and much more.
Reliving the charm of Tuscany, this township too will have classical fountains, water bodies, cobbled pavements and a central plaza, which is a public square in an Italian town. The whole place will have arches as motifs and the developers promise world-class amenities with professional maintenance facilities, as designed by famed architects HO Partner, Hong Kong.
Kamal Taneja, managing director. TDI infrastructure limited says,”A part from being a business destination, Kundli has evolved to be a fantastic place to live at. Considering the strategic location and appreciation of value at Tuscan Heights or aim is to provide high quality and international flavor in architecture, integrated in a township with world class infrastructure and amenities. The USP of Tuscan Heights is luxury within your budge.”
The other social infrastructure adjacent to Tuscan Heights include TDI mall, Oxford Street, Kings street to name a few, for shopping and entertainment, state-of-the-art hospital and healthcare facilities, primary and high schools, a health club, temple, among others.
But to make it within the reach of all pockets, Tuscan Heights offering 2 BHK, 3 BHK and 3 BHK+ study are priced at Rs 2175 per sq. fts. If that is not all, TDI infrastructure Limited is also offering exciting schemes like assured gifts like televisions, air conditioners, food processors, holiday packages for couples to Thailand, Dubai Singapore with each booking till 15th December 2010.

Courtesy – ET Realty 19-11-2010

Bahadurgarh, one of the upcountry areas, rings bell now. Given easy connectivity form Delhi and cheaper land rate, as low Rs 14,000 per square yard, many industrialists have started their factories in this area. 100 more factories are slated to start their production by next year. Haryana government is showing positive attitude too; looking at the enthusiasm of private players it wants the place fast. Pallavee Dhaundiyal Panthry takes a look at the ongoing developments in the area Bahadurgarh, which may confuse you with some tourist ‘garh’ or fort, has been much talked about as an upcoming industrial hub, these days. In fact, our last feature on Bahadurgarh did mention the essence of this place as an industrial terrain. The place is very approachable form Delhi, for it is less distant from the capital and has good road infrastructure now. The Delhi Metro route till Mundka has also benefited many people traveling to Bahadurgarh. Soon, Delhi Metro is slated to extent and pass through the heart of Bahadurgarh, which will change the facet of this place. Infrastructure Earlier, the development of industrial belt or residential zone use to be the driving force behind creating road connectivity. But now, the roads development plans and connectivity is deciding the way future cities are emerging, or are likely to come up. Kundli-Manesar-=Palwal expressway, 135 km- long, coming up around Delhi, is one of the best examples here, which would prove to be a bonus to Bahadurgarh. KMP Expressway is set to prove the single major catalyst of both residential and commercial development in Haryana. Also known as Western peripheral Expressway (WPE), it is already under construction and will be completed soon. The corridor will see major industrial and residential development in the next few years. Already, major developers like TDI , Parsvnath Ansals, Omaxe have started coming up with mega residential and commercial projects close to the expressway to cater to future needs. The alignment of the expressway takes off from National Highway-1 near Kundli, crosses NH-10 at West Bahadurgarh, crosses NH-8 near Manesar, and finally joins NH-2 near Palwal. It passes through Gurgaon, mewat, rohtak, jhajjar and Faridabad, which are the fastest growing urban centres in NCR. To boost industrial development along the corridor, specialized industrial estates have been planned at strategic locations. They include footwear and leather-garments parks at Bahadurgarh, food park at Kundli in Sonipat, gems and jewellery park at Udyog Vihar in Gurgaon, and two apparel parks, one in Gurgaon and another at Barhi in Sonipat. Besides, we will bring major relief to the commuters on this highway. Industrialists are quite happy with the ongoing progress in and around Bahadurgarh. Amit kapur, member, Bahadurgarh Chamber of commerce and industries and MD, Everest Blowers, said: “In terms of overall development of Bahadurgarh, it is progressing with good pace now. With progress in terms of Delhi Metro’s expansion plans, six lane Delhi-Bahadurgarh-Rohtak highways and KMP expressway, I can easily foresee a new Bahadurgarh in next five years.” Apart from widening the existing national highway, two long bypasses are also in the process of construction at Bahadurgarh and Rohtak. The bypass of Bahadurgarh would be 13 km long and bypass of Rohtak would be of 25 km. “though these road projects are running behind scheduled time, yet, once they become operational, will prove a boon for Bahadurgarh’s and the state’s economy”, said NL Narang, general secretary, BCCI, and owner, Filcard Industries Changing face of Bahadurgarh in next one year Sector 16 of Bahadurgarh has been developed as a general-purpose industrial area, sector17 as a footwear park and sector 4B, which is spread over an area of 189 acres, is the newest expansion area of the estate. Gulshan kumar, DGM, HSIIDC, industrial estate, Bahadurgarh, District Jhajjar, gave a clear idea of current scenario these three sectors. In sector 17, out of 368, more than 200 plots are under construction and 10 units are carrying out production in full swing. Sector 16 has 241 plots in total, out of which 100 are in the construction mode and five units are in the production phase. Sector 4B, has 46 plots and only tow are in the process of construction so far. According to kumar, Bahadurgarh will be a different place in just one year from now. He explained, “There are many serious as well clever players in Bahadurgarh. Serious ones are already in their production phases and some of them are I construction mode, while the clever ones are only sitting on their plots. We have, so far, resumed nine plots as owner of these plots were only awaiting prices of these plots to escalate so that they could have sold them further. Notably re-sale of such plots is completely unauthorized; it is not recognized by the government and has no value.” He future added, ”We have given a notice to all to finish their construction work by July 2011. Out of 200 plot, which are under construction, we expect at least 100 to start production by next year. The functioning of 100 factories is assured to bring a good change in this area.” Courtesy – ET – Dt -19-11-2010

It is generally believed that real-estate world sees lot of positive energy and activity every year, close to festive seasons. That is a time, even when the market is not flooded, a lot of serious prospective buyers throng developers for houses. These are the people who wait for this supposedly auspicious time to seal a deal.
Well, the festive season is once again upon us but there seems to be no sign of any positive mood in the market. The mod is rather dull and lukewarm. Buyers are very much there but very are waiting for a time when prices of houses of their choice come down to reasonable levels. The currents situation is very abnormal and this does not seem to be an opportune time to clinch a deal. The secondary realty market in the national capital is touching a new low as the rates of flats have increased without any rhyme or reason – up by 30-36% during the last 15-18 months. That has greatly dampened the spirit with serious buyers postponing their plans to buy a flat this festive season.
According to Samir Jasuja, MD of propequity,”If the location is good, then increase in rates is even steeper. I am sure that unless prices do not fall to reasonable levels, the market would not see a lot of positive energy.” Sources say that due to the astronomical rates of properties, serious buyers are abandoning Delhi like Rohini, Pashim Vihar and Vikas Puri, the increase in price were up to 25%. A realty expert said that market goes up once some property sold at a goof price. After that, the rate of that particular deal becomes the benchmark in that area. People forget that there are many factors that determine the price of a particular property. Hence, what is true for one property cannot be true for another one in the area. According to a Paschim Vihar based realty consultant, Suresh Bhalla. “There is hardly any deal which is reaching its logical conclusion as far as DDA or cooperative group housing flats are concerned. The current going rate for a MIG flat in Pashchim Vihar, Janak Puri and Vikas Puri is around Rs70 lakh.” The rate for an HIG flats is even higher. This is too much. With such rates, it is not easy to find buyers”.
And, if you move on East Delhi, the rates of both DDA and society flats are again crossing the threshold of the budgets of the middle-class segment. You can feel lucky if you manage to buy an MIG flat at less than Rs 65 lakh. There are some societies where flat even cost more than Rs 1 crore. Given the fact that the original cost of such flats cannot be more than Rs 18-20 lakh, the prices seem to have run amok.
However, amidst this not too happy a scenario, there is a gain for places like Ghaziabad, Noida, Faridabad and Gurgaon as many people are now looking for possible options there. J K Jain, MD of DesignArch e-homes, says that one has to be very practical when it comes to finalizing a property related deals. “Rather than waiting for a time when rates fall, one should buy the property at a second best possible place at the available rates.” Echoing this, Sunil Jindal, CEO of SVP Group, is of the opinion that the NCR is thriving because the capital is now more or less out of bounds for working class and middle class people. It is now no secret that this is a reason for a large number of buyers flocking to places like Noida, Gurgaon, Ghaziabad, Faridabad, among others, looking for flats that match their budget.
Dejected as he failed to match the demand of a flat owner in Mayur Vihar, which he took a fancy to, a senior TV journalist Niren Majumdar said that he had a budget close to Rs 60 lakh – but even then he could not buy a flat in Delhi. “They (flat owners) are asking for the moon from people who look for flats in the capital. I do not think it would be possible for working class people to buy house here.”
So, are there no buyers for flats and floors in the national capital? This claim or perception is hotly contested by Sanjay Khanna, director of Kailash nath Projects Private Limited, who says: “This is not true at all as in Delhi floors worth Rs 4-5 crore are finding buyers. It is not at all true that buyers have shelved their plans owing to high rates of houses.”
Courtesy:-Times Property 02-10-2010

Banks are revising their base rates upwards by up to half a percentage point from October 1, 2010 which will make loans costlier.
Base rate is the benchmark rate for a bank to fix the interest rates on loans. According to RBI guidelines, it has to be reviewed by banks every quarter. The latest revision of the rate will remain effective for October-December period.
But this is not likely to affect the home-loan rate of major banks. In order to make home-loan rate more attractive, most of the banks- state bank of India, Punjab National Bank, and HDFC Ltd, for the instance offer home loans at a fixed interest rate for the first three years. For example, SBI charge an interest rate of 8% on home loan for the first year and 9% in the second and third year. Similarly, PNB charges 8.5% for the first three years. HDFC Ltd also offers home loan at a fixed rate for the limited period.
The fixed rate for the initial period also provides a king of certainty about the interest burden on buyers for the initial period. The present rates of 8% and 8.5% offered by a number of banks are very attractive. In the last 10 years, the lowest rates at which banks offered home loan was around 7.5%, in 2004. But within a few months, the rates rose to 9%, which became 10% by 2007.
At present, a home loan at around 8.5% is less than even inflation. On top of that one will get tax concessions on the loan borrowed to buy a house. On calculation, the effective interest rates after adjusting for tax benefits that one pays on a home loan comes to at least two percentage points less than the rack rates. That means, if you are buying a house taking a home loan, you are paying even less than the opportunity cost of money.
Bankers feel that as inflation is high, the RBI will act to increase interest rates. But as you are borrowing at fixed rates for the first three years, at this point of time, your EMI will not increase you are insulated from any likely rate hike in the near future. One percentage point hike in the interest rate, from 8% to 9% on a 20 year loan of Rs.1 lakh, results in an increase in EMI by Rs 64 from Rs 836 to Rs 900. So, if you have taken a home loan of Rs 50 lakh, your EMI will increase by Rs 3,200 or Rs 38,400 per year.
Courtesy:-Times Property 02-10-2010

Jaypee Greens is the real estate arm of the Jaypee Group, a wall diversified infrastructure and conglomerate, with an annual turnover of Rs 14,000 crore. This realty firm has been creating lifestyle experiences from building golf-centric premium residences to building mega townships and self sustained mega cities.
Among the major projects of Jaypee Greens are Jaypee Greens. Greater Noida. Jaypee Greens Wish Town,Noida. With the latest venture of Jaypee Greens being the Sports City over 25,00 acre and comprising the much awaited and India’s first Formula Once racing track (the first Indian Grand Prix slated to be completed in 2011 ).
Acknowledging its contribution towards construction of high quality luxury developments with world class amenities and infrastructure, Jaypee Greens has received several national and international awards and honours including:
Best Urban Development Project GIREM award at Goa on September 24, 2010. Global initiative for Restructuring Environment and Management (GIREM) leadership awards acknowledge individuals and corporate entities in Indian realty and infrastructural sector for leadership, innovation and international best practices and give away 13 annual GIREM awards, Jaypee Greens got this for “environmentally” practices in their large scale integrated townships.
Bloomberg Asia Pacific Property Awards ,2010: A prestigious international award for excellence by realty firms in all sectors of property and real estate a) Best Golf Course, India: Jaypee Greens, Greater Noida b) Best Apartment: Sea Court at Jaypee Greens, Greater Noida c) Best, Development India: Estate Homes at Jaypee Greens, Greater Noida d) Best Development, India: Kallisto Town Home, Jaypee Greens, Wish Town, Noida e) Best Mixed Use Development, India Jaypee Greens, Sports City.
Realty Plus Excellence Award: Best Upcoming Integrated Township award for Jaypee Greens, Noida. Realty Plus awards recognize the contribution of individuals, developers, among other, who play a key role in the growth of Indian real estate sector.
Overseas Living Luxury Lifestyle Award, UK: Best Lifestyle Development 2010, India to Jaypee Greens. These awards are given for excellence and innovation in the realty sector and allied services in the travel industry.
Rajiv Gandhi Excellence Award for Best Integrated Township of the Year Award. This award is to identity and honour professionals who marvels in real estate industry.
Rita V Dixit, director of Jaypee Group, says: “The Jaypee Group has created landmarks through its engineering power and construction industries.”
“Since its inception in 2000, Jaypee Greens has been creating lifestyle experience from building golf-centric premium residences to building mega townships. We have already established our name through landmark luxury real estate developments.”
“The customer base of our products and the awards we have received are a testimony to our quality and commitment to our customers. Now the endeavor and commitment is to create and develop sustainable and environmental friendly cities.”
Courtesy:-Times Property 02-10-2010

After a rollercoaster ride, the residential property market has stabilised now and a number of developers are gearing up to launch new housing project. Developers are gaining confidence and pricing the products in a realistic manner. Realty funds are coming back to identify strategic partners for investments in residential project.
With the corporate gearing up to expand operations, commercial space getting absorbed at frequent intervals unlike earlier. For homebuyers, the time is just right to strike bargain deals.
For NRIs who have been waiting in the wings, the situation is just appropriate to enter the marker. Home loan rates are competitive and linked to base rates after the initial period of three years. There are banks who have waived processing and documentation charges.
As the market is becoming more competitive with the entry of a number of private housing finance companies, self employed people are in for a bonanza with flexible lending norms even though at a marginally higher lending rate.
Apartment prices are firming up in some areas. With the widening of the Whitefield Road and improved connectivity from ITPL, people are shifting towards the area. This has led to a marginal hike in property prices, according to market sources. Residential projects in the vicinity.
Yet another good development is the arrangement between developers and housing finance companies to waive pre-EMI interest charges on behalf of the buyer. As result, homebuyers need not pay interest to the lending institution till the occupation of the apartment. A significant factor is that housing costs are continuously rising with the increase in material and labour costs.

PROPERY MANAGEMENT SERVICES
Another significant development is the proliferation of property management service companies to service the retail clients in the real estate sector. This has been a long-felt need among NRIs have set up shop in Bangalore and are expanding to other cities as well.

TAX ADVANTAGE
There are inherent tax advantages for NRIs while investing in real estate. Besides income tax and wealth tax exemption for one self-occupied house, residential units if leased for minimum period of 300 days in a calendar year are exempt from wealth tax. The benefit of cost inflation index is available to a NRI for the purpose of computation of taxable long-term capital gains.
If a NRI is interested in selling a residential property, whether one or more, be will be eligible to get 100 percent exemption n respect of long term capital gains. The amount of long-term capital gains should be invested in the purchase of another residential property in advance within one year of the date of sale of the first house or within two years after the date of the sale.
If a NRI is interested in the construction of another residential property, the net taxable long term capital gains should be invested within three years in the construction of the new residential property.
If a NRI is not the owner of more than one residential property and has derived long term capital gains on the sale of any other asset like shares, debentures, commercial property, jewellery, urban land etc, he will get 100 percent tax exemption in respect of long term capital gains made on the sale of such capital assets provided he invests the proceeds in a residential property.

REPATRIATION
Moreover, repatriation of original investments made in foreign exchange is permitted up to two residential properties after a lock-in period of three years. This is apart from the rental repatriation and sale proceeds of inherited properties within the overall limit up to one million dollars every year.
Courtesy:-Times Property 02-10-2010

While stocks and bonds have held their positions as traditional investment, investors are increasingly looking towards the alternative investments – real estate, hedge funds, private equity and Exchange Traded Funds (ETFs) – to engineer an overall enhanced performance of their portfolios.
Improving construction quality, enhanced market transparency, and availability of suitable options have made the Indian real estate market a definitive asset class to invest, which provides a stable and predictable income yield along with a possibility of capital appreciation. While residential markets in India have already witnessed a rapid bounce, commercial markets have touched a cyclical low and are expected to recover to 4-6 quarters.
The market value of investment grade real estate in India under construction has increased from $69.4 billion at end-2006 to $101.3 billion by end June 2010, which equates to 8.2% f India’s nominal GDP FOR 2009.
The market value of commercial office and retail under construction has remained range-bound during 2006-2010, due to the effect of an increase in construction activity offset by a fall in capital values. However, the contribution of residential segment has amplified due to a confluence of increase in construction activity and rapid recovery of property prices.
A significant portion of this market value is required as costs of construction and development of these real estate assets. The costs have been assessed to be $48.5 billion over a period of 2-3 years.
The market value of commercial (office and retail) real estate under construction is $34.8 billion. Commercial office space under development contributes to 74% of the estimated market value being developed in the commercial sector.
As of 2Q 2010, Tier I cities of Mumbai, NCR-Delhi and Bangalore contribute to 70% of the market value of commercial office space under construction, while Tier 2 cities of Chennai, Pune, Hyderabad and Kolkata contribute to 21% of the pie. Other investment grade developments in Tier 3 cities contribute to a more 9% of the pan-India market value being developed in India today.
However, with infrastructural developments and lover real estate costs, the shared of Tier 3 cities is likely to grow In future. While the Tier I cities contribute to 62% of the commercial retail space under development,27% is supplied by the Tier 2 cities.
Residential sector has been the most resilient in the recent downturn, aided by the high demand for housing in India. While residential property prices slumped in 1H09, their raped recovery in 2H09 and 1H10 was accompanied by a slew of launches across India.
As of 2Q 2010, the market value of residential properties under construction is $66.5 billion, contribution 66% of the value of total real estate under construction in India.
While the premium segment comprises only 4% of the saleable area being developed, it contributes to 24% of market value. While NCR Delhi leads in terms of volume of residential properties being developed, Mumbai contributes a larger share to the market value.
Foreign Direct Investment (FDI) into housing and real estate in India increased steadily from $0.04 billion in 2005-06 to $2.18 billion In 2007-08. Since 2007-08, a total FDI of %7.82 billion has been put into housing and real estate in India. Considering an average construction period of three years for real estate properties, this equates to 7.7% of the market value of investment grade real estate under construction as of 2Q 2010.
Courtesy:-Times Property 02-10-2010

Ashish Gupta explains how this concept helps property owners get a regular income without having to surrender possession
Reverse mortgage is a financial product that enables senior citizens (60 years plus) to mortgage their real estate assets with a lender and convert part of the equity into tax-free regular income. This saves them from selling assets in their lifetime.
The Life Insurance Corporation (LIC) is planning to enter the reverse mortgage business. LIC's entry in this segment is significant as the life insurer has a huge base. According to the Insurance Regulatory Development Authority's (IRDA) annual report, LIC has a 29 percent share in the total new life insurance policies sold in 2008-09.
The National Housing Bank's (NHB) reverse mortgage loan-enabled annuity scheme has sanctioned 40 loans estimated at Rs 100 crores. The scheme, without the life-long payment benefit, was launched in 2007. According to the NHB, around 7,000 loans amounting to around Rs 1,400 crores have been sanctioned till March 31, 2010. It is expected that the modified scheme that provides life-long annuity to the buyer and his spouse will catch on with the entry of LIC in the segment.
With the existing scheme, LIC will provide payments in the form of annuity to policyholders. Once the assessed value of the house and the loan amount to be disbursed is decided on, LIC will start making payments till the policyholder survives. The bank will make full payment of the total loan amount to the LIC once the policy starts which the insurer can invest as per the company's investment guidelines.
In case of a reverse mortgage, the property owner surrenders the title of the property to a financial institution. The financial institution doesn't pay the entire amount to the owner upfront. On the contrary, it pays out a regular sum each month for the agreed time. The owner gets to stay in the property along with his spouse for their lifetime. Thus, the owner can ensure a regular cash flow in times of need and enjoy the benefit of staying in the property. After the owner's death, the property is transferred to the institution, and not to the heirs.
Reverse mortgage is a relatively new concept in India. The concept is quite popular in developed countries to generate cash flows.
The aim is to make immovable property more liquid and generate returns out of the asset while it is used by the owner. The amount paid out each month is for a specific period of time. The monthly payout depends on the value of the property, the term of the agreement and the rate of payment. The valuation of the property is to be done by professionals. The entire payout mechanism - calculation and computation - depends on the law of probability.
The financing institution has to bear the risk of the individual outliving the agreement. At the expiry of the agreement period, the monthly payments to the owner stops.
Reverse mortgage is of immense use in unlocking the otherwise illiquid asset. Till now, immovable property has been treated as one of the most illiquid assets. Reverse mortgage unlocks the liquidity potential of this asset. It helps the owner get good returns from his immovable property, without having to part with it. The owner can continue with the possession of the property during his lifetime

A NOVEL CONCEPT
Reverse mortgage is a relatively new concept in India It is a financial product that enables senior citizens to get tax-free regular income The concept is meant to unlock the income potential of a property A significant aspect of this concept is the owner retains possession through his lifetime It makes property as an investment option work better, especially for risk-averse senior citizens It is a popular income-generating product in the West The monthly payout depends on the value of property The financing institution bears the risk of the individual outliving the agreement Courtesy by: Times Property Dtd: July 3, 2010

The issue of maintenance of rented premises depends a lot on the terms and conditions agreed upon between the parties and laid down in the lease agreement. The Rent Control Acts of various States also provide some guidance on this. According to these Acts, the landlord has a duty to keep the premises in good condition.

Every landlord is bound to keep the premises in good and tenantable repairs. If the landlord neglects or fails to undertake any repairs which he is bound to undertake, within a reasonable time after notice in writing, the tenant may undertake the repairs himself and deduct the expenses on such repairs from the rent to recover them from the landlord. This is subject to the condition that the amount so deducted or recoverable in any year does not exceed one-twelfth of the rent payable by the tenant for that year.
It is the responsibility of the landlord to ensure that the tenanted premises are habitable and safe. If need be, he should ensure that adequate repairs are undertaken to ensure this. In case the landlord is unable to do so or is unwilling to do so, the tenant may undertake these repairs. He needs to give proper notice to the landlord about this, specifically mentioning the nature of problems, the nature of inconvenience caused, the nature of safety hazards, and the necessary steps required to correct the problem. Moreover, it should be specifically mentioned that in case the landlord fails to undertake the repairs within the specified time, the tenant will have them done and will be eligible to recover the amount spent from the landlord.

However, it should be noted that this would cover only repairs which are essential and urgent. It would not cover circumstances wherein the tenant wants some alterations or additions for his convenience. The essential test is if the repairs are needed to keep the premises safe, habitable and usable.
In case any repairs are to be undertaken, without which the premises are not habitable or usable except with undue inconvenience, and the landlord neglects or fails to undertake them after notice in writing, the tenant may apply to the controller under the Rent Acts for permission to undertake the repairs himself. He may submit to the controller an estimate of the costs of such repairs. If any repairs not covered by the amount are necessary in the opinion of the controller, and the tenant agrees to bear the excess cost himself, the controller may permit the tenant to undertake the repairs.
Courtesy by: Times Property Dtd: July 3, 2010

Housing loan account for only about 7% of the country’s GDP. Housing finance regulator National Housing Bank’s executive director RV Verma says that pension funds can help channelize long-term funds for the housing sector. In a freewheeling interview with ET’s Dheeraj Tiwari, Mr Verma talks about NHB’S plants as a regulator as well as development financing institution. Excerpts:

Unlike the Reserve Bank Of India, you have not directed housing finance companies (HFCs) to come out with base rates. Why?

First, we need to see and analyse the impact of the base rate on the cost of funds for HFCs. Unlike banks, HFCs are a more heterogeneous group with wider variation in their cost and landing profile. They also have diverse source of funding and are more exposed to changes in the liquidity conditions in the market. So their cost of funds varies more. The impact of the ‘base rate’ approach vis-à-vis their housing loan portfolios, which are typically long term in nature, will also need to be closely examined from the asset-liability mismatch perspective before introducing a base rate regime.

What are you plans for the residential mortgage-backed securitization (RMBS) market?

Securitization is a very powerful instrument to augment funds for the housing sector. Home loan portfolios are good quality assets and these securitised portfolios will have high acceptability among the investors. National Housing Bank has to play an important role as an intermediary, market-maker and a credit enhancer. Pension and provident funds are natural investor in RMBS papers, which would help channel long-term funds for housing. NHB has done 14 issues of RMBS in the past and we will be scaling this up.

Are you looking at raising more capital? What has the bank’s financial performance been like?

Besides capital, we have raised funds through different sources that include term loans, issue of bonds, and public deposit scheme. We are also exploring other international borrowings including from the World Bank for low-income housing. During the current year 2009-10 ending on June 30, 2010, our funds mobilization is Rs 11,600 crore. On the assets side, we are likely to close with disbursements of about Rs 8,000 crore. We should be closing the current year with growth in loans and advances of about 18-20%. National Housing Bank’s profit after tax is likely to be about Rs 290 crore, an all time high, marking a 22% growth over last year. Our business model is that of a development finance institution operating on a high-volume and low-margin system.

Courtesy by: The Economic Times Dtd: June 23, 2010

Spelling relief to lakhs of people who bought flats in various apartments on gener- al power of attorney (GPA), the Delhi High Court on Tuesday directed the Delhi Government to immediately implement the provisions of Delhi Apartment Ownership Act, 1986 .

Sincere implementation of the provisions will effectively free GPA-holders, who bought their houses in resale, from the clutches of brokers, builders, promoters and land mafia and protect their rights.

These include formation of their own association, mem- bership at par with original allottees and voting rights and right to fix maintenance.

The order by a Bench of jus- tices A.K. Sikri and Ajit Bharihoke came on a PIL filed by lawyer O.S. Bajpai, who said vested interests, including bro- kers and land mafia, continued to retain hold on various apart- ment complexes because the government failed to implement , d the Act passed 20 years ago.

The court asked the govern- f ment to appoint competent - area-wise authorities within a l month for effective implemen- d tation of the Act.

Directing the competent - authorities to inform the own- t ers of the apartments about d their right to form owners' asso- d ciation in accordance with the - Act, the court said such an asso- d ciation shall take over the man- - agement and books of account e and other documents from the t builders and promoters

courtesy Hindustan Times - Jun 1, 2010

New Delhi: The Haryana government has decided to develop six new residential sectors and three new commercial sectors in Gurgaon to meet the growing demand for housing and commercial space. These sectors — 58 to 65 and 65 to 67 — will be developed over an area of 850.10 acres.

A senior government official said that the state government has started acquiring land in eight villages around Gurgaon.

The villages are Medawas, Tigda, Behrampur, Ulvaas, Badhshahpur, Nangali Umarpur, Ghata and Kadarpur. ‘‘After the acquisition of the land, the new sectors would be developed,’’ he said. The 2021 development plan of Gurgaon-Manesar urban complex envisages doubling of the number of residential sectors in Gurgaon to accommodate more people.

‘‘We want to avoid a situation like Delhi, where residential flats and complexes are used for commercial purposes owing to lack of space,” said an HUDA official.

courtesy Times of India - Jun 1, 2010

A 25,000-sq-m plot in Wadala has attracted a sky-piercing bid of Rs 4,053 crore to the Mumbai Metropolitan Region Development Authority (MMRDA), the offer coming after a two-year slump in the realty market.

The winning bidder, Lodha Crown Buildmart Pvt Ltd, has quoted a price of Rs 81,818 per sq m of the permissible built-up area on the plot, which the MMRDA had earlier earmarked for an iconic tower.

If the deal goes through, it will be the country's highest land transaction ever. The Delhi-based BPTP had quoted Rs 5,006 crore for a 95-acre plot put up for sale by the Noida Authority, but the deal soon fell through.

With the payment model allowed for the Wadala plot -five years at 10 per cent compound interest is the total amount that the developer will shell out works out to a staggering Rs 5,700 crore.

The aggressive bid by Lodha group comes ahead of the launch of its initial public offering (IPO). The deal is unprecedented in terms not only of the price offered but also of floor space index (FSI) is a whopping 19.8 is .offered on the plot against the standard of 1.33.
"This is an iconic bid for us. The price offered works out to more than double the MMRDA's reserve price of Rs 40,000 per square metre," said MMRDA additional commissioner S V R Srinivas.

He added the aggressive bidding is justified in view of the expected boost to connectivity in the area. "Both the monorail and the Eastern freeway, which will make the area more accessible, will be commissioned next year. After that, Wadala will be a hot cake for real estate," said Srinivas.

Rolling back its plans to build a 101-storey iconic tower, the MMRDA decided a few months ago to sell the plot to private developers who could then build a tower. Granting further leeway, the MMRDA soon said the winning developer was free to build multiple smaller structures instead of a sole tall tower.

The FSI boost entitles the developer to a total built-up area of 5 million sq ft. Taking the super-built-up area into account, the final saleable component will go up to as high as 8 million sq ft, which will translate into an astronomical profit.

Lodha Group director Abhishek Lodha said the company plans to build a residential project on the plot. "We haven't yet drawn up plans as to whether the project will have a single tall tower or several structures but we plan to launch the project at Rs 13,000 per sq ft," said Lodha.

The existing residential rates at Wadala are around Rs 8,500 per sq ft, which could be hiked after the deal. Over the last few months, Ajmera Developers have increased their rates at the Bhakti Park project to Rs 13,000 a sq ft. Real estate sources, however, say they have been unable to sell flats at the increased rates

Courtesy yahoo news dtd:26/05/2010

DLF, the country’s largest real estate company, is planning to launch its Lower Parel high end housing project soon, said sources in the know.

Touted as Mumbai’s ‘largest luxury residential project’ is expected to have three towers with 1,000 apartments and one of the largest parking lots in the city. The apartments are likely to be in the Rs 5-10 crore range each, with the minimum size being 2,000 sq ft, property consultants said.

DLF has sounded out major property brokers and consultants. Though brokers say the company is likely to launch in the next one-and-a-half months, company executives maintain the launch is a few months away. “We are in no hurry. With markets improving, we hope to get good pricing for the project,” said Executive Director Rajeev Talwar.

According to consultants, the company is banking on higher floor space index (FSI), the amount of construction allowed on a plot of land) granted for parking lot and hand that over to the government for public use. So, you can build four square feet. Normally, developers get an FSI of 3.25, due to restrictions from the fire department police and so on. For those without a parking lot, the FSI is capped at 1.33.

Given an FSI of 3.25, the 17-acre project is expected to have total development of 4-5 million sq ft, including the parking lot (an acre equals 43,560 sq ft), consultants said.

Office boom on ex-mills land The Worli-Lower Parel belt in central Mumbai, a former hub of textile mills, is witnessing modern office developments by realtors such as individuals.

DLF made news in 2005 when it bought a 17-acre Mumbai Textiles Mills land - lot from National Textiles Corporation (NTC) for Rs 702 crore. The company had then said it would build a ‘futuristic-retail-cum-entertainment complex’ on the plot.

Earlier this year, the company changed its plans to build a high-end mall project to a high-end premium residential project, as demand for retail space came down sharply. According to a consultant, the project plans were changed several times as the real estate markets went through ups and down during the past five years. At one point, the company was also planning to build an office-cum-hotel complex on the plot.

“Considering it is a large project, it has to be superior and offer better pricing, as it is three years away from completion,” said Sanjay Dutt, chief executive at Jones Lang LaSalle Meghraj, a property consultant.

According to Anand Narayanan, national director, residential agency, of Knight Frank India, central Mumbai is expected to see around 7,000 premium housing units in the Rs 4.5-crore bracket in the next eight-odd months. “None of them are coming at attractive prices and efficient sizes, even if land prices allow them to do so,” he said.

“There is a appetite in the sub-Rs 4 crore segment and supply in that segment is being absorbed. But, the market cannot absorb the kind of supply coming up in million-dollar homes (those above Rs 4.5 crore),” he adds.

Courtesy: BS Dtd 26th May 2010

Real estate major DLF reported a surge in profit for January- March 2010 period at Rs 426 crore from Rs Rs 159 crore a year ago. Total income for the quarter was also up by 58 per cent. However, for the full year 2009-10, both income and net profit fell as compared to the previous year -- 25 per cent and 61 per cent respectively.
Courtesy: HT Estate Dtd:-15-05-2010

Shri Ram Shaw

With the days of economic slowdown rapidly coming to an end, there's a housing bonanza in the offing for the burgeoning population of the National Capital Region (NCR). The Delhi Development Authority (DDA) is likely to announce a new megahousing scheme, where approximately 8,000 flats will be up for a draw. The projects are spread across the national capital in areas like Jasola, Narela, Vasant Kunj and Dwarka, among others. Of the 15,000 houses currently under construction, nearly 8,000 will be ready by June.

The ministry of urban development says that the DDA has to announce its next scheme soon to avoid watch and ward costs and maintenance cots on the completed units. Watch and ward costs entail hiring of security personnel to watch over completed units to ensure that fittings and fixtures are not stolen. These costs could run up a steep bill.

A senior DDA official said that a three month gap is usually preferred between the announcement of the scheme and the allotment of the houses. Since the houses will be ready for possession by June, the announcement is likely to be made three months ahead. Official confirmed that another 7,000 units were at various stages of completion. No formal date has been set for the announcement and the finer details of the scheme are being worked out.

The last time the DDA announced a housing scheme was in September 2008, and the draw for it was held in December. Under that scheme, 5,238 houses were up for sale and the authority received nearly six lakh applications. Officials expect the 2010 scheme to draw upwards of 10 lakh applications. In December 2008, after the last draw, a proposal was made by the DDA to the ministry of urban development, requesting a clause be inserted into future schemes, wherein houses under the SC/ST category will not be allowed to be resold for at least 15 years after the allotment. The ministry is still sitting over the proposal.

Courtesy ET Realty dtd.14-05-2010

Developers opt to fund their construction projects through pre-launch and pre-sale mechanisms, as by far, these are the cheapest sources of finance available

Namrata Kohli Real estate finance is a grey area. In reality, realty funding happens through pre launches. So, a builder typically asks buyers to cough up, say, a third of the final cost of a house even before the first piles are drilled into the ground. In effect, very little of the builder's own capital is at risk. This has been the done thing - an arrangement between builder and buyer, which has been successful owing to scarcity of housing in the country.

Real estate development business requires constant acquisition of land for future projects. According to Sharad Jhingan, COO (private equity fund) at Lanco Infratech Limited, "Due to the short supply of land and lack of habitable locations and urban infrastructure outside established locations, a developer starts to sell even before finalizing the development plans. This is more a reflection of supply-side constraints. A developer wants to grow as fast as possible. All these methods allow him to acquire - what to him is the key constraint - land banks."

Even though pre-launches are illegal, a developer realizes that the penalty for transgression is very light, and public memory is short. But as Jhingan adds, "The core issue needs to be addressed - that of increasing the land supply and speedy development of alternative urban centers, along with strict imposition of penalties similar to what Sebi does."

In theory, the funding of construction using advance money from buyers is "fading out" owing to "competition and financial sophistication" and "foreign investors are queuing up to bring in equity into our markets". But equity financing is only a short-term option. Sachin Sandhir, MD and country head of RICS India shares his perspective: "Yes, there has been a visible shift towards equity financing for projects.

Real estate companies have been very ambitious in the past and most are already highly leveraged. Although RBI allowed debt restructuring for a year, there is an astounding Rs 75,000 crore of outstanding debt with one third of it due by June 2010. Even as unit sales have picked up, developers have not booked enough profit to repay their debts.
Consequently, other sources like equity dilution and bulk selling to long-term investors at 30-40% discounts are the present-day necessities. Developers are also trying to attract PE funds to invest in short-term, small-format projects with completion schedules of 3-4 years. In fact, private equity has experienced a phenomenal growth over the last two decades as institutional investors, seeking higher returns have embraced this alternative to traditional asset classes." But, cut to reality and equity is much costlier than debt, so no businessman wants to dilute more than what is absolutely necessary. Experts feel that almost all sectors in India witness high leveraging. Real estate is no exception.

According to Jhingan: "Presently, the reason to raise more equity is lack of sufficient cash flows to service the loans. The fundamental issue is of excessive leveraging in anticipation of huge profits from fast growth in sales. This did not materialize and hence developers now want to raise equity to repay loans. This argument itself is absurd." How do private equity funds view Indian property market? It seems PE funds are both keen and wary of India. They are keen because of India's growth story, and they are wary because it is difficult for them to operate in India.
They want ease of entry and exit and faster court processes in case of disputes - lack of transparency and corruption further increases their wariness.


Ritesh Vohra, MD of Real Estate - Saffron Asset Advisors, feels that debt and equity will always have a role to play in Indian real estate. He adds that while equity is required for land purchase, debt would be required for financing construction, especially in case of office or retail building, which have a build and lease model. Ankur Gupta, of Ashiana Housing, agrees: "Both are critical for real estate funding. Joint ventures with landowners are also part of equity financing, which we have been doing regularly and find that the best way to get equity financing. Debt in construction financing works to make sure you are achieving your speed of construction." Ankur adds, "We do our funding mostly through customer advances and internal accruals. Secondly, we look at bank lending as they are the two cheapest form of project financing available."

Private equity funds are bullish in all metropolitan cities as well as developed Tier II cities. The verticals for investment include retail, and specifically affordable segments in residential projects, which spell opportunity for most of these funds. Vohra's fund is focusing on the residential space - especially the midmarket and affordable housing segment. In the long term, retail will also emerge stronger and so would commercial segments.

He says that both these segments need to resolve a few issues to ensure their long-term attractiveness - for retail it is about focusing on quality of shopping center management and developing greater depth amongst the retailer community. For commercial, it is largely about managing the present oversupply situation in many micromarkets and gradually moving away from the over dependence on IT. Industrial space and warehousing are some of the other interesting verticals.

There are many PE funds, which have taken a long-term view on India and which remain committed to investing here. Equally, there are some daunted by the unstructured nature of the markets. Bank lending is a very important source of funding which has emerged and is here to stay. Experts conclude that bank lending will be an important source of funding for developers.

FOCAL POINT

In theory, the funding of construction using advance money from buyers is "fading out" owing to "competition and financial sophistication" and "foreign investors are queuing up to bring in equity into our markets" Experts feel that almost all sectors in India witness high leveraging. Real estate is no exception.

Courtesy ET Realty dtd.14-05-2010

AFFORDABLE NBCC Building Township in Khekra, 22 kms from Kashmere Gate.

With realty prices skyrocketing by the day, here is some good news for those seek- ing affordable housing options near the Capital.

The National Building Construction Corporation (NBCC) Limited is coming up with 8,000 one, two, three and four-bedroom flats, priced between Rs 7 lakh and Rs 45 lakh, in Khekra, Uttar Pradesh.

It is just 22 kilometres away from the Kashmere Gate ISBT on the Delhi- Saharanpur high- way. The prices of the flats are 30% lower than market rates.

“We are coming up with an integrated housing project in Khekra. The project will be completed in two phases and would have all modern ameni- ties. It will be completed in the next two to three years,“ said Arup Roy Choudhury, chairman-cum-managing director, NBCC Ltd.

While draw of lots for the first phase, where 1,100 flats were up for grabs, was held in March, the lottery for the second phase for remaining 6,900 flats would be held later this year.

The Khekra Township is com- ing up on 100 acres. This would be the PSU's sec- ond housing project in the National Capital Region. “The shortage of housing in urban areas was the reason we ventured into the sector. Our objective is to fill the huge demand-supply gap in the hous- ing sector by providing afford- able housing,“ said Choudhury.

Last year, NBCC had launched two housing schemes -- in the mid and low end cat- egory -- in Gurgaon, Haryana and Loni, Uttar Pradesh. In Gurgaon, NBCC is coming up with 4,000 flats for employ- ees of central government and public sector units. The flats are priced between Rs 22 and Rs 45 lakh. Similarly, in Loni 2,000 flats are being developed in the mid segment category. Fifty per cent of the flats will be reserved for government employees while the remaining 50 per cent will be open to the general public. These flats are priced between Rs 7 and Rs 15 lakh. NBCC launched its first hous- ing scheme in Delhi last year where 2,500 flats, priced betw- een Rs 25 lakh and Rs 60 lakh, are coming up near the Ghitorni metro station on Mehrauli ¬Gurgaon road. The flats will be ready by 2012.

Courtesy:- Hindustan Times dt:- 14-April-2010

Chinese property prices rose at the fastest pace in nearly five years in March, according to official data released on Wednesday. This is likely to add to concerns of a bubble developing in the real estate market.

Prices in major cities rose 11.7 per cent year-on-year in March, the National Bureau of Statistics said on its website, marking the biggest year-on-year rise for a single month since the survey was widened to 70 cities in July 2005.

That topped the 10.7 per cent increase in residential and commercial property prices recorded in February and the 9.5 per cent jump in January.

Policymakers have pledged to step up efforts to rein in run- away prices amid growing com- plaints that apartment prices are out of reach for many people.

But homebuyers and property developers were not get- ting the message and more drastic measures like interest rate hikes were needed to calm market activity, said Brian Jackson, senior strategist at Royal Bank of Canada in Hong Kong. “Today's data affirms anecdotal reports that activity and sentiment remains robust, “said Jackson.

“To convince homebuyers that it is fully committed to curbing overheating and reducing bubble risks, Beijing will need to use all of its policy tools, and that most obviously includes higher interest rates.“

Analysts have forecast an interest rate hike as early as this month after massive bank lending in 2009 triggered fears that the cash flood has fed a spending spree by property speculators.

Prices of new homes rose by 15.9 per cent year-on-year in March, the statistics bureau said. Haikou, a city on the tropical southern island of Hainan, recorded the biggest price jump, up 64.8 per cent from a year ago.Sanya, another city on Hainan, saw prices soar 57.5 per cent year-on-year.Property sales in the first three months of the year surged 57.7 per cent to 797.7 billion yuan from the same period last year, it said.Investment in real estate development rose 35.1 per cent to 659.4 billion yuan over that period.

Courtesy: - Hindustan Times dt: - 14-April-2010

Jaypee Greens Noida is launching a new product at Jaypee Greens Wish Town, Noida — Kingswood Oriental. The Kingswood Oriental community comprises premium individual residences, adjacent to an 18-hole Graham Cooke golf course, with an expansive and breathtaking view of golf greens on one side and a chip & putt golf course on the other. There are 160 units, in two sizes, with a built-up area of approximately 3,700 sq ft and 4,600 sq ft. “We will be offering different layout designs to the customers,” says Manu Goswamy, head of business development and strategy at Jaypee Greens. The price of these exclusive homes starts from Rs 3 crore at a basic selling price of Rs 8,100 sq ft — each villa will have three floors.  

Kingswood Oriental is aimed at a niche market — the discerning clientele will be offered a very exclusive community of luxury homes where the design elements have taken cues from oriental architecture and landscaping, apart from of course providing them with the finest in luxury fittings and fixtures. The community will have some special features, as it has been billed as “one of its kinds in the country”, and to give it a premium look and feel the following features are proposed for the community as a whole, and for individual villas.

Community special features 
Kingswood Oriental will be a separate community within Wish Town and access to this will be restricted only to the buyers and their guests Multicoloured Orientalstyle wall paintings in common areas like social clubs, etc Zen Gardens and Bonsai draped landscaping to go with the theme Beautiful waterbodies as landscaping element Adjacent to the 18-hole golf course Oriental street lighting and street furniture Pebble walkways in parks lined with flora from the Far East Golf carts for local transportation within the community.

Home features  
Use of wood and bamboo in the design to go with an oriental feel Private lily ponds in each home Provision for elevators in each home Jacuzzi in the master bathroom Miniature gazebos in the back garden of the house Terrace garden with barbeque Top-of-the-line security system featuring videophones and burglar sensors.  

Oriental clubhouse
Exclusively designed clubhouse which has been designed using cues from the Southeast Asian architecture, will be of approximately 60,000 sq ft of built up area Wellness zone with state-of-the-art gymnasium and fitness centre; yoga, aerobics areas Multi-cuisine restaurant Exclusive members lounge area Party halls & gardens.

Range of sports facilities
Tennis courts Squash Swimming pool Pool/snooker Library Goswamy says, “The Kingswood Oriental residences will be a perfect harmony of luxury lifestyle with a touch of oriental architecture, combined with the latest technology for leisurely life. We have added 17,000 customers in the last two years alone in the NCR. The customers for individual houses in the higher and premium segment look for uniqueness and demand exclusivity and this project will fill this gap in Delhi NCR.” Wish Town, the largest township in Noida, is spread over 1,162 acres. It is a gated resid e n t i a l community with dedicated s p a c e s catering to all comforts in urban living and the developer says it offers the finest choices for the new home buyers in the NCR. Just off the Noida-Greater Noida Expressway, it is on a 30-minute drive from Connaught Place, and 15 minutes from Ashram chowk. Jaypee Greens Noida bills itself as “Golf-centric real estate development” — there are two golf courses in Wish Town. Some of the features of Wish Town, an integrated township, where Kingswood Oriental is coming up: 9-hole and 18-hole golf course designed by Graham Cooke Acres of landscaped greens and Zentheme gardens 450-bed Jaypee Super Specialty Medical and Research Centre, equipped with the latest medical equipment and healthcare services.

Boomerang (A club which is expected to be one the finest clubs in the country) Some of the advantages of Wish Town are its location — it is close to the Noida-Greater Noida expressway. Also, it is just 10 minutes drive from Ashram Chowk and it is slated to have Metro connectivity in the near future. The Jaypee Group is a well-diversified infrastructural and industrial conglomerate in India with engineering and construction, cement, private hydropower, hospitality, real estate development, expressways and highways among its portfolio. The group is synonymous with premium lifestyle developments through exclusive golf-centric real estate, and in the words of Goswamy, “Our focus is not just on the house you buy, but also the environment you live in.” Jaypee Greens in Greater Noida bagged the “Best Golf Development-India” from CNBC Asia Pacific Property Awards in 2008.

Courtesy:- Times Property dt:- 10-April-2010

The summers are here and the search for homes has become doubly difficult as one has to not only face the scorching sun, but also take the heat of rising real estate prices. But wait, that's not all. If you are on the lookout for a new apartment that's ready for possession, then get ready with a bigger stash of cash, for that's certainly not going to be cheap. Area in focus This week we look at Ghaziabad, one of Delhi NCR's hot draws, offering affordable apartments to the middle-class buyer who also doesn't find the commute to the city centre that tough to handle. Now the question is, where should one look (for a home) in Ghaziabad?

You are here Kaushambi, Vasundhra, Raj Nagar Extension, Vaishali, Crossings Republik have projects which have been launched and sold some years back and are almost ready for possession. A num- ber of buyers today are interested in the flats that have not been sold in these projects. “We have complet- ed first phase of River Heights in Raj Nagar Extension and possession has started. The prices at Raj Nagar are still low unlike other places. For people, who think their pocket permits, should look for homes in ready-to-move-in projects, as they will not have to wait long for delivery and will also avoid paying rent and home loan EMI simultane- ously,“ says Manu Garg, MD, Landcraft developers. (See box for list of projects) The cost? “It's obvious the costs (since project launch) of these flats have gone up by 40-50 per cent. Some flats in our proj- ect Gulmohar Greens, Mohan Nagar, are empty but the prices now are around Rs 2,720 per sq ft as against the launch price of Rs 1,900 per sq ft two-three years ago,“ says Sunil Jindal, CEO, SVP Group.

A lot of people want affordability to be factored in when it comes to ready proj- ects, but that, say builders, could be asking for too much. “It is not possible for people looking for houses in these projects to get low- price deals.

“When a project gets com- pleted it comes up with appreciated price and this appreciation depends on many factors apart from just location,“ says Dujendar Bhardwaj, JMD Group and company, realty agents.

As most of these homes are in completed projects, these are in areas where infrastructure, etc, has come up. “Location is the most important factor in the real estate scenario and prices are directly proportional to it. If you have decided to invest in such a project, then scout around for a good loca- tion where other facilities are also functional. If a per- son is buying a ready home from a developer directly, then the prices might be a little higher than the market rates. This is more so because in such cases the payment to the developer will have to be done in white,“ says Pradeep Mishra, real estate analyst. Why do flats remain unsold? Experts say that many real estate developers hold back their inventory and sell it later at a higher price. When they breakeven after the launch of a project and think they can complete the proj- ect with the money collected, they hold back the inventory. So 60-70 per cent of the proj- ect is sold off and the rest held back.

Of course cases vary from developer to developer. “In our case, at SG Impressions in Vasundhara, we did not get the permissions for a duplex apartment at the time of launch. So we could not sell it at that time. Hence, these apartments remained empty.“Not getting the requi- site permission also means the stock remains unsold. Apartments getting clear- ance much after the launch of a project are often put up on sale, much later after pos- session of other flats have been handed over. This might happen due to various reasons such as increase/ purchase of floor area ratio (FAR),“ says Gaurav Gupta, director, SG Estates.

Is it a good buy?
“Yes, it's a good buy for peo- ple who want ready facilities like shopping complexes, other facilities such as hospi- tals and schools nearby, good infrastructure and good accessibility. It is good for people who want to move in immediately. However, peo- ple who buy for investment won't get good returns. Such buys won't also suit people for whom budget is of utmost priority,“

Courtesy:- HT Estate dt:- 10-April-2010

Tt was in 1978 that I saw a IDDA advertisement in a newspaper. It was the first Self Financing Scheme (SFS) from the Delhi Development Authority (DDA) inviting mid- dle-class families to buy a flat in South Delhi by making the payment in instalments.

My wife, three daughters and I were living in a rented floor in Uday Park at that time. I didn't want to let go of an opportunity to buy my own place in South Delhi and immediately went to the Vikas Sadan DDA office. I bought the brochure that cost about Rs 5,000. It contained the terms and conditions and the eligibility criteria. I was to fill up a form and give three locations as preferences. Allotment of the flats was to be made through a computerised draw after scruti- nising the applications that ful- filled the eligibility criteria, and other terms and conditions. It was a very transparent system that aimed to solve the housing needs of many families. In fact, Munirka Enclave was our third choice after Hauz Khas and Sarita Vihar.

Moving in Arranging funds was the next step towards making the dream home a reality. The house was priced at Rs 1.38 lakh and we had the option of paying the money in instal- ments, after making an initial payment of Rs 20,000. I decid- ed to pay the entire amount in the first instalment after tak- ing a 20-year loan from HDFC.

Thus, I was able to procure this three-bedroom ground floor flat in Munirka Enclave after submitting the necessary affidavits, down payment, forms, photographs attested by a gazetted officer/first class magistrate and completing other formalities.

The possession was given to us with the basic framework, doors, bathroom fittings, sewage and civil work. It had a small front lawn and a back- yard. Initially, we made no structural changes because funds were limited at that time. We got some woodwork done and installed grill doors. The flat was, however, well laid out and comfortable.

The colony has 204 flats and water has never been a prob- lem. Being a small colony, it has been easy to get familiar with the people around us. With parks and ample parking space, Munirka Enclave has been a welcome change for us. I have recently also joined a DDA scheme in which the leasehold on my property will be convert- ed to freehold by paying Rs 25,000. A freehold flat can be sold or transferred without a clearance from the DDA.

Adjusting to the times Munirka Enclave has its own association that takes care of maintenance and security. The time for opening and closing the gates is fixed, and visitors are required to enter their details in a register kept at the gate. The colony does have the usual problems. People are unwilling to raise the monthly maintenance subscription in line with rising prices. This has not only affected the quality of maintenance but also created a rift between residents.

I have seen the happiest and saddest moments of my life in this house. My three daughters got married here and the house is also witness my five grand- sons and grand-daughter growing up. The saddest moment came when I lost my wife. However, the good moments have helped me recover from this loss and nowadays I stay here with my second daughter Deepika, her husband Vinod, their daughter Shonan and son Siddhant, who is a very talented, young polo player. My eldest daughter is in the US while the younger one lives in Noida.

Developing hub Munirka Enclave is a nice place to live in. It's close to Vasant Kunj and various south Delhi markets and malls. Over the years, the Nelson Mandela Marg has become very busy and the Priya cinema complex nearby is one of the most hap- pening spots for the urban elite and youngsters.

Munirka Enclave's close proximity to the IGI airport makes it convenient for makes it convenient for my son-in-law who flies frequently for business.

The house has been recently renovated with complete change of win- dows, flooring, tiles and woodwork. As the family grows, needs change and the recent renovation reflects this. I love spend- ing time playing golf, reading and spending time with the family in the common lobby. I am happy to have my flat here.

Courtesy:- HT Estate dt:- 10-April-2010

Property 2010, being organized on April 10 and 11 will be an exhibition of one of the most diverse residential and commercial properties in Noida, Greater Noida, Indirapuram, Ghaziabad, Gurgaon, Faridabad and other parts of the National Capital Region. The expo will also have finance companies, which will not only enable visitors to select a property but also to avail funds to buy them at the most competitive rates.

Such expos have been found very useful for end users as they make available all the possible choices at one place. Developers exhibit their products with the help of models, which enable end users to know the product better and help them in taking right the decision.

As a number of developers will be available under one roof, you can compare the residential units then and there and take a decision. Not only this, it will also help you bargain hard with the developers to arrive at a most competitive price. Times Group has been organizing such expos to help end users find suitable houses. Now, as the market has revived, a number of developers have floated a large number of projects in various segments. The large number of choice in the market often confuse buyers and they are left running around from one developer to another to find the best accommodation for themselves. While such expos will help end users in comparing the large number of alternatives then and there, it will also provide a good opportunity to investors to not only understand the new trend in the market but also to make a decision to buy the right kind of property.

While Supertech Limited has taken Title Sponsorship, Amrapali and Sumangalam are the associate sponsors. Other participants are Gaursons Builders, Today Homes, Paras Group, Aditya Group and Saamag Construction. Besides them, leading property consultants like S&A Finman, Prithvee Propmart, Better Option Propmart and Krishna Infratech, among others, will be presenting a lot of other options from other developers to the visitors.

CEO of Supertech Eco Village, Mohit Arora said the 150-acre eco-village project in Greater Noida sector I (Noida Extension) will provide an affordable housing option to end users in the truest sense. The project has been well received by end users in the market. Gaursons will also showcase a number of projects including the one in the Noida extension. Saamag construction will exhibit their NH-24 Cresent ParC project.

Courtesy:- Times Property dt:- 10-April-2010

Co To Raise Rs 3,500 Cr, Shift Focus To Residential Units

AN OFFICIAL of Dubaibased Emaar Properties says it will continue to focus on India as it offers the best investment opportunities across the 16 countries in which the real estate developer is present.

“Given the robust domestic market and high economic growth rate, India will continue to give superior returns compared to other countries in the developing and developed nations, including the US and the UK, Emaar-MGF, which is primarily known for its commercial projects, is looking to shift its focus on residential units this year.

“Demand in the real estate sector in India has picked up and property developers will be able to attract buyers if they keep the price of residential units at a moderate level,” Mr Gupta said. Emaar-MGF currently has 30 million sq ft land under construction and plans to add another 15 million sq ft in the next one year. The firm plans to deliver at least 8 million sq feet by this year. Housing prices are still lower than the booming period of 2007, Mr Alabbar said.

Courtesy:- ET Realty dt:- 09-April-2010

NEW DELHI: Realty player Emaar MGF on Thursday said it may hit the capital market within the next 90 days to raise about Rs 3,500 crore through an initial public offer (IPO), its second such attempt after it was forced to withdraw by poor market response in 2008. “Within the next 90 days we may launch the IPO but it will depend on how the market is,” Emaar MGF vice-chairman and MD Shravan Gupta told reporters. The company had in 2008 planned to launch its maiden public offer to raise Rs 7,000 crore, but had to withdraw due to poor market response. With the stock market again on the upswing in the recent past and even touching the 18,000 mark this week, the company is looking to take the opportunity.

Courtesy:- ET  dt:- 09-April-2010

Suddenly there is no stopping luxury brands, hotels, retail formats from entering Tier 2 and Tier 3 cities in what may be bigger and better avatars than even in the metros

Namrata Kohli
If you thought 'mall' is Greek and Latin to someone in smaller cities and towns you surely need a reality check. Smaller city folk are not being treated to some lowbrow 'country cousin' version of your metro malls - instead, they are witnessing much better and bigger developments. Businessmen have smelt the appetite of locals and are crowding into Tier 2 and Tier 3 cities to encash upon the first mover advantage and grab vast plots at reasonable rates (as against the metros, which suffer from both paucity of land and high real estate costs). The head of operations of a big retail chain shares his perspective saying that smaller cities is the way to go for big brands now. Citing an instance, the industry insider says that when Globus had opened its store at a place like Varanasi, no one was sure what would happen, but today, the store has outperformed its Mumbai counterpart. Even the Crossword store in Visakhapatnam and other small cities in south India are doing great - so much so that a second outlet has been opened there.

Retailers, realtors, hoteliers are now seen heading to smaller cities which conventionally were not on the organized business's radar. Take a look at the 6 lakh sq ft Alpha One mall at Amritsar and anyone would agree that it has a good mix of international, national and regional brands available anywhere. Even luxury hotels have zeroed in on Tier 3 cities. Just imagine, one of the most sought after spas in the country, Ananda, chose Amritsar to open its only branch at a 5-star luxury hotel, Ista, which is owned and managed by hospitality chain IHHR. According to Ashwin Handa, general manager of Ista, "Ista is Amritsar's only 5-star luxury hotel and we decided on Amritsar as the city has a huge tourist influx and offers great potential." The same logic holds true for mall developers and according to Pickles Sodhi of Alpha G Corp, "Punjabis like to shop and they like to spend money and enjoy a good life. My investment in Amritsar was more of a gut instinct based on the facts, of course, that Amritsar is a huge religious draw - there is enormous tourist influx and many NRIs frequent this religious destination. The paucity of a decent mall spelt opportunity. Next, we plan to target Chandigarh, Jalandhar and Ludhiana. And after that we are readying a 7 lakh sq ft mall at Ahmedabad." He adds that they have tried to retain the local flavour by introducing Amritsari bazaar, which will retail Amritsari crafts, phulkari, etc, and encourage shopping of local goods in sanitized environment.

Fun Cinemas' Atul Goel feels that small cities are hugely receptive to new ideas. Fun Cinemas already has multiplexes at Chandigarh, Lucknow, Ahmedabad and Coimbatore. "We are entering Amritsar with a multiplex which will have the first gold class in Punjab. Priced within Rs 500 per cover, this 35-seater will provide endless cold drinks and popcorn to patrons." Goel adds that they are trying to tap the aspirational living value of people and showing them a taste of good life, "once they taste it and learn to enjoy it, they will ask for more and this way they will grow with us".

North India's first hypermarket Hypercity Retail (India) Ltd has opened in Amritsar in Alpha One mall. B S Nagesh, vice-chairman, explains: "In this vast floorplate of 1.4 lakh sq ft, a shopper gets everything from the freshest malta to jeans worth Rs 199 to LCD TVs. Besides, there is a feature called Daily diamonds, which is meant for today's women who can pick up their favourite piece of jewellery at price points of Rs 2,000 to Rs 10,000, while shopping for daily groceries. We are here to create lasting value and we are giving ourselves three years to break even."

But when retail strikes smaller towns do they replicate their city formats or customize to the local tastes? Govind Shrikhande, CEO of Shoppers' Stop says that the stores have similar merchandise albeit with some changes. "We are stocking pagdi (turbans) and jutti (shoes), as these are important part of the basket of a shopper in Punjab. Besides, our thrust will be on stocking more casuals than formal wear since Amritsar is not home to many corporates yet, unlike Delhi or Mumbai. Also, we would include brighter shades and focus more of traditional wear."

However, what does not keep pace with these striking private developments is the poor public infrastructure. There is glaring contrast between public utilities and private developments and this is evident as soon as you step out of Alpha One mall and are greeted with poor infrastructure. Says S K Sayal, director & CEO of Alpha G: Corp: "While making this mall we were faced with infrastructural bottlenecks like lack of electrification, storm water drainage system, sewerage system - there is no master plan for these cities. But the authorities are slowly but surely realizing that infrastructure has to be built and we would say that one thing is leading to another. Things are certainly improving."

FOCAL POINT
• Smelling the appetite of locals, developers have turned their focus to the Tier II and III cities, and are going all out to set up businesses there
• Leave alone big brands, luxury hotels and multiplexes too have realised the need and importance to show their presence in the Tier II and III cities and tap the aspirational living value of people living in the small towns.

Courtesy:- ET Realty  dt:- 09-April-2010

Realty major Unitech said on Tuesday it had appointed Ernst &Young (E&Y) and two other advisors for exploring opportunities for potential restructuring of its business, to unlock value for shareholders. The company’s board of directors has constituted a restructuring committee for evaluating opportunities for “potential merger of subsidiaries, demerger and other forms of restructuring, or acquisition, or spin-off with the ultimate object of enhancing and unlocking shareholders’ value”.

Courtesy:-BS dt:- 07-April-2010

Ashiana Housing Limited is planning to invest Rs 120 crore for setting up 3 four-star category hotels in Bhiwadi, Jodhpur and Jamshedpur. Apart from that, the group is also planning to roll out Retirement Resorts in Mumbai, Chennai, Neemrana and Bangalore.

Courtesy:- ET Realty dt:- 02-April-2010

Paramount Group has recently unveiled their new project Floraville, which is coming up at Sector 137, Expressway-Noida. The project aims at providing luxury at affordable prices. Floraville will have 2, 3 and 4 bed room apartments. To make houses affordable, Paramount Group have come up with 2 BHK of 1045 sq ft and 1240 sq ft, priced at Rs 23.90 lakh and Rs 28.37 lakh respectively, 3 BHK of 1360 sq ft and 1425sq ft priced at Rs 31.11 lakh and Rs 32.60 lakh respectively and 4BHK flats measuring 1685 sq ft priced at Rs 38.55 lakh.

Ashwini Prakash, executive director, Paramount Group, at the launch function said, “The new era demands an amalgamation of mod- ern amenities, luxurious living and green environment at affordable prices.“

Courtesy:- HT Estates dt:- 03-April-2010

These days, attractive housing finance schemes are being offered that seek to make life easier for homebuyers. However, there are certain Important aspects of personal finance that have to be taken into account before applying for a home loan.

A home loan account and EMIs (equated monthly installments) usually run for a long tenure - at least five years, and over 20 years in some cases. Therefore, it becomes very important to choose the right home loan scheme and plan for other expenditures through the tenure as well. Home loan schemes are classified based on interest rate variations. Here are some of the common home loan schemes available in the market today.

FIXED INTEREST RATE
The interest charged on the loan amount remains fixed under this scheme. Most banks have stopped offering fixed interest rates for entire duration of the home loan. Some banks offer a fixed rate at a rate significantly higher than the prevailing rates. It comes with a clause of variability. These schemes are not feasible.

FLOATING INTEREST RATE
Under the floating interest rate schemes, the interest rate varies with time, based on the market conditions. Usually, the borrower's interest rate is linked to the bank's internal interest rate. The interest on the account changes when the bank decides to change its benchmark lending rate. Usually, you get an attractive deal in terms of interest rates under a floating rate scheme. Borrowers with enough liquidity in hand are advised to go for this.

HYBRID SCHEMES
These schemes offer a mix of fixed and floating interest rates. There are many variants of such schemes available in the market that promise to suit different borrowers' needs. But, it is important to analyse such options, before getting locked into a particular scheme. Schemes that offer fixed rates during the initial few years are comfortable for those who start EMI payment immediately.

Courtesy:- ET Realty dt:- 02-April-2010

The proposed Direct Tax Code contains many provisions that aim to change the mode of taxation of 'income from house property'. In order to Simplify the determination of taxable income and eliminate any scope for litigation, the code will have a new scheme for computation of 'income from house property'.

According to the code, 'income from house property' will be computed in the hands of the owner. Even if the property is let out for business etc, it will be taxable only under the same head. Under the present provisions of the Income Tax Act, letting out an inseparable building along with plant and machinery is taxable under 'business income' or 'other sources'.

However, according to the new code, it will be taxable under the head 'income from house property' In case the property is owned by more than one owner and if the share of each company owner is definite and ascertainable, it will be computed separately for each co-owner. The property will not be taxable under this head of income if it is used for own business or profession, or if it is not ready for use.

The gross rent minus deductions specified in Section 26 will be the 'income from house property'. The computation of gross rent is outlined in Section 25 of the code. Gross rent is the higher of contractual rent and presumptive rent. If the property is acquired during the financial year, the presumptive rent will be also calculated on a proportionate basis.

Either contractual rent or presumptive rent for the financial year, whichever is higher, will represent the gross rent. The concept of 'annual letting value' under the Income Tax Act has been given up. Contractual rent is the rent receivable under a contract. It can even be an oral contract. Presumptive rent will be six percent of the rateable value fixed by the municipality or the cost of construction/acquisition of the property, if the municipality does not fix the rateable value.

Section 26 provides for deduction from the gross rent. These include property taxes paid during the previous year, service tax on rent paid during the previous year, 20% of gross rent towards repair and maintenance, interest on capital borrowed for purchase /construction /repairs. In case of a self-occupied property, the gross rent will be taken as nil. The aggregate of deductions specified in Section 26 will be nil for such houses.

The deduction of interest on capital borrowed which is currently available for a self-occupied property will not be available under the new code. In case an assessee has more than one house for self-occupation, the benefit of nil gross rent will apply only for one self-occupied house at the option of the assessee. The computation of remaining houses will be made as if the properties are let out.

Courtesy: - ET Realty dt: - 02-April-2010

Developers Keep The affordability factor in mind Even as they build large-sized apartments
Shikha Sood, a teacher in an international school, bought a two-BHK 1,250 sq ft apartment for Rs 32 lakh in the NCR in 2007 with some amenities and frills thrown in. Her colleague, after a long wait, took the plunge and bought a house during the slowdown. On offer was a 900 sq ft apartment in the same area for Rs 22 lakh. Her sister bought a 1,100 sq ft flat last week in the same area for Rs 27 lakh.

That's not all. Suman Singh, a 38-year-old engi- neer, bought a residential property -- a 1,482 sq ft, three-BHK apartment in the stilt-plus-four-storey catego- ry at Rs 1,650 per sq ft -- in new Gurgaon in September last year. His brother-in-law bought a house in December last year when phase II of the same project was launched.

On offer was a 1,516 sq ft, three-BHK unit, at a rate of Rs 1,550 per sq ft, in the stilt- plus-14-storey category.

These examples are an indication of some interesting trends currently being wit- nessed in the real estate housing market. They show that while the sizes of the boom era (2007) may be mak- ing a comeback, the differ- ence this time is that afford- ability is becoming an increasingly important con- sideration while planning apartment sizes. Making detailed plans for projects and doing market research before launching housing products are becoming the norm. Unlike last year, the attempt now is not to shrink sizes but to make them sensible.

Inching forward The year 2007 saw many projects launched in the mid- end and high-end categories.
The affordable concept caught the fancy of develop- ers during the slowdown.

This year is witnessing launches in the mid-end seg- ment and sizes are slowly inching towards 2007 levels though the frills are missing. “There were two things happening last year -- reduc- tion in prices and reduction in sizes. With prices starting to rise gradually, job security returning and businesses doing better, the mid-seg- ment and the high-end seg- ment are back. Affordable housing exists but the new projects cater more to the mid-segment. House sizes have, therefore, increased and are moving towards 2007 levels,“ says Abhishek Kiran Gupta, head of operations - research and real estate intelligence, Jones Lang La Salle Meghraj (JLLM), a real estate consultancy.

Also, developers are not experimenting with varia- tions and modifications in apartment sizes at the pace in which it was happening in 2009. Though sizes will increase, it will happen in stages, the first trigger being this Diwali, he adds.

If one were to compare the 2007 situation with the pres- ent, one will find that three years ago consumers went beyond their budget to buy bigger apartments. Having learnt their lesson during the lowdown, they are now going for housing products that suit their pockets. Also, if developers are moving back to 2007 sizes, the same is being done with a greater level of discretion, study and research. There is greater focus on planning.

“If the brief I gave to my architect then (during 2007) was that I feel like building `X' product in a particular area because I feel good about it.

The brief I give him now is that these are the conclusions drawn from my demand sur- vey and, therefore, you need to build product `Y',“ points out Kumar Gera, chairman, Confederation of Real Estate Developers Associations of India (CREDAI).

Varied offerings Agrees Vidur Bharadwaj, architect and director at the 3Cs group. “In 2007, develop- ers were looking at opulence.

Today, the market is not yet ready for it. Every location will have some percentage of affordable, mid-segment and high-end apartments. I foresee a mixed bag.“

Concurs Pradeep Varshney, CEO, Jindal Realty (P) Limited, “In any project you'll find 10-15 per cent of the two- BHK variant of size 1,250 sq ft, 60-70 per cent of affordable apartments of sizes 750-1000 sq ft and 15-18 per cent flats of sizes 1,250-2,500 sq ft. “ Size and densities The size of apartments is not only being driven by market conditions but by densities provided by the government.

According to Amit Ramani, president, NELSON India, a US-based integrated solutions firm offering services in archi- tecture and interior design, “Developers are being forced to bring in all sizes to match and maximise the Floor Area Ratio (FAR).“ Differential pricing A dual pricing trend has also been observed in some proj- ects. Developers are offering bigger sized apartments in a high-rise at a lower price band when compared to apart- ments of similar sizes in a low- rise structure.

A case in point is the Crescent ParC project by SARE group in Gurgaon. The company is offering a 1,314 sq ft three-BHK apartment at Rs 1,650 per sq ft in the stilt-plus- four-floors category. In the stilt-plus-14-floors category, the company is offering a 1,516 sq ft three-BHK flat with servant quarters for Rs 1,550 per sq ft. This is because in a low-rise project a developer tends to lose out on Floor Space Index (FSI), which is the ratio of the total floor area of buildings to the size of the land. These low- rise towers are less dense and their FSI is a costly affair and in that sense these are premi- um towers, points out Sunil Agarwal, chief development and acquisitions officer, South Asian Real Estate (SARE).
According to Priyankar Bhikshu, DTZ, a global consul- tancy, in 2007, developers managed to increase cost and realisation but they have now concluded that it cannot hap- pen sequentially. Therefore, differential pricing has been introduced to keep the overall affordability under check.

Going forward, the trend of bigger-sized apartments will rise. For each segment, con- sideration of affordability (price `X' size) will be an inte- gral part of the development process (design to selling) in the Indian realty market.

Courtesy:- HT Estates dt:- 03-April-2010

It may become difficult for builders to construct green buildings as they are 25-35 per cent more expensive than normal housing structures, reveal findings of Grant Thornton and ASSOCHAM.

Releasing the findings of the White Paper, ASSOCHAM presi- dent, Dr Swati Piramal pointed out that despite the benefits, construct- ing a green building remained a challenge when it came to the initial capital outlay and immediate returns on investment.

The Paper also points out that considering the changes in global climate, rising population, pollution, related regulations and also com- mercial concerns vis-à-vis power crisis, running cost and pressure on urban infrastructure, green practice will become a necessity rather than a matter of choice in the next 10 years.

Along with environmental con- cerns, the most obvious objective of constructing green buildings will be to bring in energy efficient practices, thus reducing consumption of power and water. However, in the short term, real estate developers find the s initial cost of deploying energy effi- cient systems a major hindrance.

This is inspite of the fact that real estate and its ancillary industries account for more than half of the world's energy consumption.

Courtesy:- HT Estates dt:- 03-April-2010

Mapsko Group has launched Mapsko Casa Bella, a Group Housing Project spread on an area of around 18 acres at Sector 82, Gurgaon. The group housing has 3, 3(+1), 4(+1) bedrooms of 1690 sq. ft, 1960 sq. ft., 2535 sq.

ft. respectively. The price ranges between Rs. 2,500-2,600 per sq. ft.

Courtesy:- HT Estates dt:- 03-April-2010

Paramount Group have recently unveiled their new project Floraville, which is coming up at Sector 137, Expressway-Noida. The project aims at providing luxury at affordable prices.

Floraville will have 2, 3 and 4 bed room apartments. To make houses affordable, Paramount Group have come up with 2 BHK of 1045 sq ft and 1240 sq ft, priced at Rs 23.90 lakh and Rs 28.37 lakh respectively, 3 BHK of 1360 sq ft and 1425sq ft priced at Rs 31.11 lakh and Rs 32.60 lakh respectively and 4BHK flats measuring 1685 sq ft priced at Rs 38.55 lakh.

Ashwini Prakash, executive director, Paramount Group, at the launch function said, “The new era demands an amalgamation of mod- ern amenities, luxurious living and green environment at affordable prices.“

Courtesy:- HT Estates dt:- 03-April-2010

Tenure is the period or duration for which a loan amount is sanctioned. Borrowers might feel like taking the shortest possible loan tenure ideally. However, do not rush for the shortest loan tenure. It may appear enticing to pay off your home loan debt in the shortest possible time span. However, a short tenure loan translates into very high EMI dues month after month. The borrower must remember that he has other financial commitments - usual monthly expenses - and must not stop saving during the repayment period.

So, what is the ideal loan tenure?

Consider different EMI outflows for various loan tenures. Will you be comfortable paying the EMI, yet have enough to meet all other financial commitments and emergencies? Freeze on the tenure for which you can pay the EMIs without a major financial stress.

Consider these parameters before deciding on the loan tenure:

Is the amount high?

If the homeowner has borrowed a huge sum of money, the EMI outflow would be high. Hence, to make EMI repayment comfortable, the borrower may have to go for longer loan tenure. Longer the loan tenure, lesser is the EMI outflow.
Consider a loan of Rs 50 lakhs borrowed at 12 percent interest. If the tenure is 15 years, the EMI outflow would come to around Rs 60,000. If the loan amount was lesser, say Rs 25 lakhs at 12 percent interest, the EMI outflow for a tenure of 15 years would be around Rs 30,000. If the borrower can afford to take a shorter tenure loan, of say 10 years, his EMI outflow would be around Rs. 36,000.
Purpose of buying property

If the borrower has purchased the property solely as an investment, he would like to sell it off when he gets a good deal. In such cases, most buyers prefer to keep the loan tenure as short as possible. This way they need not pay any penalties towards prepayment or exiting the loan before end of tenure.

Those who have purchased the property only to live in it may prefer longer loan tenures. They may not be very keen on a very short loan tenure. Further, they benefit from tax deductions on their home loans. However, borrowers must keep in mind that longer the loan tenure, greater is the associated cost of borrowing.

Age of borrower
A person close to his retirement years will not be eligible for a long tenure loan. A middle aged person who is making good money may prefer repaying the loan before he retires. A young borrower who has recently started working may not bring home a huge income. His income level may go up as the years pass by. He should opt for a longer loan tenure as he has many years ahead to work and clear his debt.
Income
A person with greater disposable income can pay off his debt faster than a person who earns lesser. If the borrower has higher income, he can pay higher EMIs and clear his debts faster.

A person having greater financial commitments, other debts or a lower income may find repaying his debt a big challenge.
A borrower's current income level and expected increase in income are factors that can influence the loan tenure. Interest rate fluctuations are difficult to predict.

The impact of increase in interest rates could be hard if the borrowed amount is high. Whenever you have excess funds, partially prepay the loan. This way, a borrower can clear his debt faster.

Courtesy:- Times Property dt:- 03-April-2010

Noida is shaping up as one of the most promising residential and commercial destinations in the NCR, and the Mahagun Group is adding its signaturestyle developments to the skyline, says

Krishna Kumar Mangalam

Mahagun Group has emerged as one of the leading realty players in Noida, setting standards in the sector with a proven track record of more than 40 years — it has delivered 20 projects with a client base of more than 4,000 families. It has also managed to carve a niche for itself as a reliable brand with its team of committed and highly experienced engineers and space planners, and has been delivering on its promises with consistency.

Dhiraj Jain, director of Mahagun Group, says, “Mahagun, with its unblemished track record of handing over all our projects before the committed dates, and to the complete satisfaction of our customers, has taken the principle of ‘deliver what you commit’ to new heights.” “All of our ventures have met with a resounding success. The foremost reason being our focus on rigid quality and time control. The company always strives to provide optimal specifications, thereby adding more value and cutting cost, all of which translate into optimum benefits for the customers. And the amenities, which the projects boast of, are trendsetters in their own right,” says Jain.

Mahagun has contributed immensely to the residential segment in Noida, which is developing into a premium residential and commercial destination in the NCR with top-class connectivity including expressways and the forthcoming Metro link to its various sectors. “Building on existing infrastructure and amenities, Mahagun has gone ahead and developed masterpieces in the form of premium, top of the line residential projects. Transforming the skyline of Noida are the various Mahagun creations,” says Jain.
Mahagun offers luxurious residential options in the choicest of sectors of the city. “And with Mahagun there are no shortcuts to success. Each project is meticulously planned to perfection, right down to the minutest details. Penthouses, duplex apartments or opulent multiple bedroom apartments, Mahagun has established unassailable benchmarks in each category,” says Jain. All Mahagun projects are designed by the renowned architect Hafeez Contractor.

An amalgamation of all the prime features, namely luxury, comfort and prime location, Mahagun projects have been extremely well received by customers — be it Mahagun Manor, Mahagun Villa, Mahagun Mosaic, Mahagun Mascot, Mahagun Maple, Mahagun Puram, Mahagun Maestro, Mahagun Mansion, or Mahagun Morpheus — all the ventures have been instant sellouts. Mahagun also has a commercial establishment, the Mahagun Metro Mall, which is a unique combination of a shopping mall, serviced apartment hotel and a multiplex. Mahagun is also a part of the prestigious Crossings Township project, which is India's first global city. Mahagun Maestro, a quality residential complex located in a prime location of Noida, is a showcase of the group’s creations. Built on land allotted by the Noida Authority, 80% of its area has been allocated for ‘green’ spaces. Equipped with all the Mahagun standard features like earthquake-resistant RCC structure, vaastu and ecofriendly layout, assured timely possession with penalty clause, ample parking space, power backup, and rainwater harvesting it showcases some unique features too. Each tower has a luxurious entrance lobby for example. As one walks into the apartments, you are surrounded by Indo-Italian marble, chandeliers, designer light fittings, woodwork, among other such fittings and fixtures.

Mahagun Morpheus, also located in Noida, is built along the same lines. It too bears Mahagun’s signature style of huge spaces. Each tower here has a musical entrance lobby, which lends a soothing and pleasant ambience to the whole place. With only three apartments on each floor, with a common waiting area, there is no sense of claustrophobia. The interiors have been designed with teak woodwork and designer light and bath fittings, high-grade marble and chandeliers, giving the entire setting an impression of being in a castle. The club house is studded with state-of-the-art facilities — swimming pool, gymnasium, squash court, steam and sauna bath, Jacuzzi, etc.

“At Mahagun, we are creating new models of luxury and changing the scene of real estate block by block,” says Jain. Apart from many landmark projects, the group has a very promising 4-star luxury hotel on the anvil, at Karkardooma in Delhi. After delivering several projects in Noida, Mahagun recently launched the Mahagun Maple, which is at an advanced stage of construction and has been fully sold out. To bolster its brand and presence in Noida, Mahagun is soon going to launch a megaresidential project here with quite a few other projects also lined up on the drawing board.

Courtesy:- Times Property dt:- 03-April-2010

Suddenly there is no stopping luxury brands, hotels, retail formats from entering Tier 2 and Tier 3 cities in what may be bigger and better avatars than even in the metros, finds

Namrata Kohli

If you thought ‘mall’ is Greek and Latin to someone in smaller cities and towns you surely need a reality check. Smaller city folk are not being treated to some lowbrow ‘country cousin’ version of your metro malls — instead, they are witnessing much better and bigger developments. Businessmen have smelt the appetite of locals and are crowding into Tier 2 and Tier 3 cities to encash upon the firstmover advantage and grab vast plots at reasonable rates (as against the metros, which suffer from both paucity of land and high real estate costs).

The head of operations of a big retail chain shares his perspective saying that smaller cities is the way to go for big brands now. Citing an instance, the industry insider says that when Globus had opened its store at a place like Varanasi, no one was sure what would happen, but today, the store has outperformed its Mumbai counterpart. Even the Crossword store in Visakhapatnam and other small cities in south India are doing great - so much so that a second outlet has been opened there.

Retailers, realtors, hoteliers are now seen heading to smaller cities which conventionally were not on the organized business’s radar. Take a look at the 6 lakh sq ft Alpha One mall at Amritsar and anyone would agree that it has a good mix of international, national and regional brands available anywhere. The brands include Shoppers Stop, HyperCity, Fun Cinemas, Orama, Reliance Trends, Standard Max and Lifestyle Max as well as United Colors of Benetton, Tommy Hilfiger, Levi’s, Provogue, Wrangler, Adidas, Nike, Reebok, Puma, Blackberry, Zodiac, U.S. Polo, Flying Machine, Planet Fashion, F2O, Peter England, Mufti, Hidesign, Biba, Arrow, Kap Kids, Catmoss, Emerge, Lakshita, Woodland, Magnet, VIP, Just Lucky’s, Nu West, Café Coffee Day, Mothercare, Rockport, Himalaya, VDOT, Fuel-Stop, Metro, The Body Shop, Beverly Hills Polo Club, Guess, among others.

Even luxury hotels have zeroed in on Tier 3 cities. Just imagine, one of the most sought after spas in the country, Ananda, chose Amritsar to open its only branch at a 5-star luxury hotel, Ista, which is owned and managed by hospitality chain IHHR. According to Ashwin Handa, general manager of Ista, “Ista is Amritsar’s only 5-star luxury hotel and we decided on Amritsar as the city has a huge tourist influx and offers great potential.”

The same logic holds true for mall developers and according to Pickles Sodhi of Alpha G Corp, “Punjabis like to shop and they like to spend money and enjoy a good life. My investment in Amritsar was more of a gut instinct based on the facts, of course, that Amritsar is a huge religious draw — there is enormous tourist influx and many NRIs frequent this religious destination. The paucity of a decent mall spelt opportunity. Next, we plan to target Chandigarh, Jalandhar and Ludhiana. And after that we are readying a 7 lakh sq ft mall at Ahmedabad.” He adds that they have tried to retain the local flavour by introducing Amritsari bazaar, which will retail Amritsari crafts, phulkari, etc, and encourage shopping of local goods in sanitized environment.

Fun Cinemas’ Atul Goel feels that small cities are hugely receptive to new ideas. Fun Cinemas already has multiplexes at Chandigarh, Lucknow, Ahmedabad and Coimbatore. “We are entering Amritsar with a multiplex which will have the first gold class in Punjab. Priced within Rs 500 per cover, this 35-seater will provide endless cold drinks and popcorn to patrons.” Goel adds that they are trying to tap the aspirational living value of people and showing them a taste of good life, “once they taste it and learn to enjoy it, they will ask for more and this way they will grow with us”.

North India’s first hypermarket Hypercity Retail (India) Ltd has opened in Amritsar in Alpha One mall. B S Nagesh, vice-chairman, explains: “In this vast floorplate of 1.4 lakh sq ft, a shopper gets everything from the freshest malta to jeans worth Rs 199 to LCD TVs. Besides, there is a feature called Daily diamonds, which is meant for today’s women who can pick up their favourite piece of jewellery at price points of Rs 2,000 to Rs 10,000, while shopping for daily groceries. We are here to create lasting value and we are giving ourselves three years to break even.”

But when retail strikes smaller towns do they replicate their city formats or customize to the local tastes? Govind Shrikhande, CEO of Shoppers' Stop says that the stores have similar merchandise albeit with some changes. “We are stocking pagdi (turbans) and jutti (shoes), as these are important part of the basket of a shopper in Punjab. Besides, our thrust will be on stocking more casuals than formal wear since Amritsar is not home to many corporates yet, unlike Delhi or Mumbai. Also, we would include brighter shades and focus more of traditional wear.”

However, what does not keep pace with these striking private developments is the poor public infrastructure. There is glaring contrast between public utilities and private developments and this is evident as soon as you step out of Alpha One mall and are greeted with poor infrastructure. Says S K Sayal, director & CEO of Alpha G: Corp: “While making this mall we were faced with infrastructural bottlenecks like lack of electrification, storm water drainage system, sewerage system — there is no master plan for these cities. But the authorities are slowly but surely realizing that infrastructure has to be built and we would say that one thing is leading to another. The authorities have built a flyover near the mall and the second one is already being planned near the Golden Temple.”

These private parties, of course with vested interest, are also doing good in both creating pockets of entertainment for small cities that lack them, and also bettering the services and utilities in their city of operation.

Courtesy:- Times Property dt:- 03-April-2010

Unlike in the past, the New Age Indians are not confined to investing in residential properties — they are now setting their sights on commercial property as well, says Vivek Shukla

If you imagine that commercial properties are only purchased by companies to expand their business prospects, think again! Now high net worth individuals (HNI) too invests in commercial properties. As recently as a few years ago, commercial property was an investment option for select individuals. Apart from the issue of a large investment, it required a different mindset from the investment point of view as well. But, over the years, a large number of Indians have begun to earn huge salaries while many others are also making a lot of money through freelance jobs, which they are investing in commercial properties.

Unlike in the past, the New Age Indians are not confined to investing in residential properties. This trend is picking up fast. “If banks do not show reluctance to give loans to individuals in order to buy commercial properties, more and more HNI will come forward to buy commercial properties. It is now no secret that banks hardly show any positive attitude to sanction loans to individuals in order to buy commercial properties. This happens all over the world. That is why you can not blame only our banks,” says Samir Jasuja, CMD of PropEquity.

An official of PNB Housing Finance Ltd also admitted that while banks happily give loans for residential properties, they are not that forthcoming when it comes to loans for the purchase of commercial properties. Reason? He said that compared to residential properties, the rate of default is very high in this segment. That is precisely the reason banks avoid disbursing loans to individuals in buying commercial properties.

“As far as Ansal API is concerned, we have got bookings from a sizable number of such individuals (HNI) in our malls (Ansal Plaza in various locations), as also in small to medium office spaces in our commercial projects in Delhi NCR, Punjab, Lucknow, Kundli (near Sonipat in Haryana), among other projects,” says the company's official spokesman.

Anu Gupta, director of Century 21 India, says that HNIs should make investments in commercial properties as these investments could maximize their return. The reason being, while they could go for bank loans up to 75-80% for such investments, the repayment of such loans could be set off against the rental incomes from such commercial properties. Thus, by investing a portion of the total price (say 25%), an investor can acquire a high-value asset, which will not only give maximum return (thanks to the set off provision

in IT against rentals), but could see a significant appreciation over a period as the retail/commercial industry grows.

Giving his own example as to how he is earning less because he has invested in residential property while his friend is earning far more than him for investing in commercial property, a Delhi-based financial professional, Narinder Gambhir, says that both he and his friend invested in residential and commercial properties in 2004 in East Delhi. Both invested close to Rs 30 lakh each. “While I am getting a rent of Rs 15,000 per month, my friend is earning Rs 25,000 from his property. This is a huge difference,” Gambhir rues.

Discussing about the factors which are crucial for HNI to look before buy commercial properties, a realty expert says that they should not invest where there is a deluge of supply. In that case, the investment would not fetch good returns. HNI also invest in commercial property, as they are not restricted to a dingy market area. Today, swanky malls enable an individual to look at commercial property as a viable investment option. Moreover, the emergence of semi-commercial property in residential locations has made the investment financially viable.

R K Arora, CMD of Supertech group, says that there is nothing wrong if you invest in commercial property, but one must invest after taking all the pros and cons into consideration. "I feel that if you invest in some commercial space in NCR, then you have to wait for a long period before earning anything as there is a massive supply of such commercial property in NCR, unlike in Delhi. If you can invest in Delhi, then it is great."

However, Alimuddin Rafi Ahmed, CMD of ILD realty group, feels that as our economy is improving after tiding over a really tough time during the market slum of 2008-09, corporates are looking for commercial spaces on lease, hence it is a perfect time to invest in commercial properties. “This is just the right time to invest as the property is available at rock-bottom prices. The crash in property prices led to downward revision of prices by developers. The reduction was to the tune of 30% or so,” Ahmed concludes.

Another point in favour of commercial property is the changing dynamics on the economic front. In bigger cities, entrepreneurship has been on the rise and this would mean a lot more individuals would be looking for office space for their business enterprises. These individuals look for properties which are not commercial, but a mix of commercial and residential.
Do they also get queries from HNI for investment in their commercial properties or malls? Sunil Jindal, CEO of SVP Developers, says that they have not dealt with HNI so far as they deal with big brands directly. “I still suggest HNIs to invest in residential than commercial properties. That is safe for them. We have noticed that due to over supply of commercial properties in NCR, they are not fetching enough returns,” says Jindal. And in the end, Ashish Jindal, head (North) of Knight Frank India, also says that if you can, then commercial property is a good investment option for investors. The motive behind such investments should be more rental returns than capital appreciation. A typical commercial office property can give 8-12% return depending upon the quality of building and tenant. It’s a good medium to long-term asset class to have in one's investment portfolio - even for the salaried class.


Courtesy:- Times Property dt:- 03-April-2010

Mumbai flat fetches Rs 36cr

Nauzer K Bharucha | TNN

Mumbai: The city once again seems to have broken a national record in property transactions, with a duplex in the prime Samudra Mahal building at Worli fetching in excess of Rs 36 crore in an auction on Monday.

Although people involved in the transaction flatly refused to comment, TOI has learnt through reliable market sources that the deal worked out to more than Rs 99,000 a sq ft. The last highest transaction recorded was at the NCPA Apartment at Nariman Point in 2007 when a flat measuring 3,475 sq ft (super built-up) was bought by a London-based NRI at a rate of Rs 97,842 a sq ft (Rs 34 crore).

The Samudra Mahal duplex is situated on the 19th and 20th floors of the 28-storey, sea-facing highrise. The high net worth individual who won the bid is the wife of a prominent banker who died sometime ago. The duplex belonged to ABN Amro bank and the deal was brokered by the London-headquartered real estate adviser, DTZ. The duplex is spread over a built-up area of 3,640 sq ft and has four bedrooms and two covered car parks. The building has a swimming pool, a children’s play area and a small football court.

One of the losing bidders said they walked out once they learnt that the bidding started at Rs 32 crore. ‘‘We had a budget of only Rs 25 crore,’’ he said. Samudra Mahal is one of the sought-after residential buildings in the city. One of the occupants of this building are the Scindias (family of the late Madhavrao Scindia).

Courtesy:- Times of India dt:- 06-April-2010

Only 14.81% Of Population Lives In Flats, Big Bungalows Giving Way To Smaller Homes: Survey

TIMES NEWS NETWORK
New Delhi: If you think multistoreyed flats are gradually occupying the city landscape, you are wrong. Delhi is still very much the city of independent houses rather than flats — 73.60% Delhiites live in independent houses and 14.81% in flats. This was revealed by the report on the Level and Pattern of Household Consumer Expenditure in Delhi which was released by finance minister A K Walia on Monday.

However, the sprawling bungalows which were once the hallmark of the city — they still are but only in Lutyens’ Delhi — have been replaced by far smaller living spaces, with 52.84% families living in a home that measures less than 450 square feet. At least 62.05% Delhiites own the places they live in and 35.16% have hired dwelling units.

The report — which is based on the 64th round of the National Sample Survey held between July 2007 and June 2008 — predictably found that Delhiites have the highest per capita expenditure in the country. The bulk of that — 37% — is spent on food items, an oddity, considering that the city government has been in a self-congratulatory mode over the past few months about the inflation figures being the lowest in the capital among all Metros.

An interesting study was the steep rise in the monthly per capita expenditure on food from 2004 to 2008. For cereals, it has gone up from Rs 89.42 to Rs 133.78, on milk and milk products it is up from 157.19 to 212.07 and on meat, fish and eggs it is up from Rs 16.40 to Rs 30.89.

The expenditure on intoxicants, pan and tobacco were the least hit with the difference being Rs 6.78 to Rs 10.80, Rs 9.68 to Rs 9.77 and Rs 2.86 to Rs 3.10 respectively. The average monthly per capita spend on consumer goods rose only marginally in these four years from 102.37 to 103.78. The spend on footwear went down from 24.38 to 24.25. Of the average Rs 767 per capita spend on food items per month, 10% was spent on milk and milk products, 8% on cereals and pulses, 2% on edible oils, 4% on vegetables and 2% on fruits.

In absolute figures, a family — the report says the average household size in Delhi is 4.47 — in rural Delhi spends about Rs 3,308 on food items out of a total monthly spend of Rs 7,606 and in urban Delhi about Rs 3,445 out of a total of Rs 9,295.75.

Among non-food items, fuel and light incur the biggest expenditure, coming about Rs 686.32 per month, followed by education at Rs 585.35 and clothing at Rs 418.50. Conveyance is a huge drain on a family’s resources, with rural Delhi spending Rs 655.36 (8.61%) per month on it and urban Delhi Rs 763.39 (8.21%) on it.

Courtesy:- Times of India dt:- 06-April-2010

Zuri Group Global, which is present in the high-end hotel, real estate and floricul- ture sectors, has announced plans to invest Rs 700 crore in hospitality and real estate ventures.

Zuri will invest Rs 400 crore in setting up two five star lux- ury hotels in Bangalore and Nairobi in Kenya, and Rs 300 crore in its 250-acre premium villa-cum-apartment project in Goa.

“Both the hotels would com- plete within 20 months. The new 160-room hotel at Bangalore is near the airport and it would be a mix use proj- ect on six acres,“ said Bobby Kamani, managing director, Zuri Group Global.

“We have started work on the 150-room hotel in Nairobi and we are waiting for final clear- ances for the villa project in Goa to begin work,“ he said.

The group is backed by a con- sortium of investors from the Middle East and so far has invested over Rs 900 crore in India. It has properties in India, Kenya and UK, including four hotels in India which are run under the brand name of Zuri.

Apart from organic growth, Zuri now plans to grow aggres- sively through management contracts. “Though (we are) very young, hotel owners are coming to us to run their proj- ects. Two hotels in Sikkim and Kolkata have been finalised while one in Hyderabad is at an advanced stage,“ said Kamani. “We are very keen to have a presence in Delhi and Mumbai and are looking for hotels either through management contracts or outright lease,“ he said.

Kamani said Zuri hotels, which started only last year after taking back properties from foreign hotel chains, is fast catching up among upwardly mobile corporate executives and visitors, who seek value for money luxury service.

The group, which has 250 hectares of land in Kenya pro- ducing 150 million roses a year for the export markets of UK and Dubai, is also expanding its wind energy business in India and geo-thermal energy busi- ness in Kenya.

The group employs over 2,100 people globally including 1,200 in India and wants to meet its capital investment through a mix of debt and equity.
“We see tremendous busi- ness opportunity here; that is why my cousin Abhishek and I shifted to India five years back to grow the group's business.
We have seen growth even dur- ing recession and we will invest heavily as we are impatient to grow,“ said Kamani, who was born and brought up in Kenya.

Courtesy:- HT Business dt:- 06-April-2010

The Commonwealth Games Village luxury apartments are ready and Emaar MGF, the developer, has begun handing them over to DDA.

The residential project on the banks of river Yamuna will house athletes and officials for the Games that will be held from October 3 to 14, 2010.

“We have begun the process of handing over the apartments to DDA,“ said Shravan Gupta, executive vice-chairman and managing director Emaar MGF.

The project, with 1,168 apart- ments, was to be built on a pub- lic-private-partnership model between DDA and Emaar MGF which won the right to develop the 118-acre residential project in competitive bidding from DDA at Rs 321 crore against a reserve price of Rs 300 crore.

As per the arrangement, DDA got ownership over onethird of the apartments over and above the Rs 321 crore from the developer. Emaar MGF was to retain ownership of the rem- aining 790 apartments which it expected to sell in the open mar- ket and raise money. However, last year's financial crisis and realty slump meant the company couldn't find buy- ers and raise money. It asked DDA for a bail out which it got--DDA purchased another 333 apartments for Rs 770 crore.

“Market conditions are improving. There has been a robust demand for quality res- idential projects,“ said Gupta. He claimed the company has managed to sell a major portion of these apartments.

After the games are over the developer would refurbish the apartments and physically hand over the apartments to end- users by early next year.

Courtesy:- HT dt:- 09-April-2010

If you are planning to buy a house this year, take all the time you need.

A Crisil research report on residential property prices of India's 10 biggest cities says prices will remain more or less stable with a moderate dip in prices in Mumbai and a marginal (2 per cent) rise in the National Capital Region (NCR) in 2010.

According to the report, the average capital appreciation in the 10 cities is expected to be 2-3 per cent. Bangalore and Chennai are expected to see the highest rises of 7.3 per cent and 5 per cent respectively. On the other hand, Ahmedabad and Mumbai will see a correction in prices by 1.8 per cent and 0.4 per cent respectively.

Interestingly, Mumbai witnessed the maximum rise in prices by 11 per cent between March and November last year, the report said. While Central Mumbai witnessed a price rise of 21 per cent, the central suburb saw 15 per cent hike.

“Mumbai has already witnessed a steep recovery in prices after the correction in 2008 and the demand has slowed down since December 2009,“ said Sudhir Nair, head, Crisil Research.

Developers, however, disagree. “We have not seen any drop in demand and I believe demand for residential real estate will go up by 30 per cent this year,“ Niranjan Hiranandani, vice chairman & MD, Hiranandani Construction said.

“Mumbai is so starved of volume that unless land supply increases, prices cannot drop,“ Dharmesh Jain, CMD, Nirmal Lifestyle, said. “Considering the rate of inflation, we expect that prices in Mumbai to go up by 5-12 per cent in 2010, depend- ing on the location and quality of constriction of building.“

The expected price rise in Bangalore and Chennai is on account of recovery of the IT sector. “The confidence is back now in the (IT) sector leading to a demand in those areas,“ said Nair.

Courtesy:- HT dt:- 09-April-2010