• Stellar Jeevan
• Rudra Palace Heights
• Earth Towne
• Paramount Emotions

The full report is available at http://www.indianpropertyreview.com/property/noida-extension-top-20-projects-where-invest

The 105-acre project comprises low-rise apartments, plots and a four-floor commercial tower housing shops and offices.

More than a total 1,000 buyers have claimed that their money had been blocked in the project which has not progressed since its launch.

The buyers were reportedly promised possession by June 2013.

“I invested in the project in 2010. Though two years have passed, construction is yet to begin,” said Sumesh Sanan.

ABW managing director Atul Bansal, said, “The construction will start in the next two-and-a-half months. We don’t have any intentions of delaying the project. We are waiting for the stay order to be lifted.”

Investors demanded a clarification from the ABW Group on issues such as project status update and surety on delivery of the project, completion time along with builder-buyer agreements, documents that they submitted in court in response to a petition filed by one of their co-promoters, besides surety that the land will not be sold to any other builder and the project will not be scrapped.

ABW Buyers’ Association said there is a tussle between promoter Atul Bansal and Om Prakash, a farmer from whom they had purchased the land.

Around 50,000 homebuyers will heave a sigh of relief, as the uncertainty surrounding the fate of Noida Extension housing projects seems to be almost over.

The NCR Planning Board (NCRPB) on Thursday gave a conditional approval for Greater Noida Master Plan 2021, which will pave the way for development of a township on 2,500 hectare of land in Greater Noida. The area is known as Noida Extension owing to its proximity to central Noida.

The NCRPB has suggested certain changes to be incorporated in the master plan before it could be approved by the board’s technical committee. A source said that the entire process could be completed by April. Kamal Nath, the Union urban development minister, who chaired the NCRPB meeting, said on Thursday that the state government would no longer need the planning board’s approval for the changes made in the Greater Noida Master Plan 2021, which is necessary for any work on the development projects in the area to resume.
Instead, the UP government and the Greater Noida authority would have to incorporate the suggestions made by the board, including the provision to increase the green belt and protecting the wetlands of Dadri. Once this is done, the authority has to submit the master plan to the technical committee of the board for the final approval.
The NCRPB meeting held in the national capital on Thursday was attended by UP chief minister Akhilesh Yadav’s trusted aide and MoS (CM protocol) Abhishek Mishra. He told, “We want to work with the central government. Our government has come to power recently. We will soon consider the suggestions made by the board and we will get back to the technical committee.”
Mishra said the interest of investors would be protected. The Centre, too, has asked the state and the NCRPB to resolve the issue on a priority basis.

Mishra said that the government has set development as its priority and the interest of people who have invested their lifetime savings would be safeguarded. “People should have no fear of Noida losing its importance under the new regime,” he said.
NCRPB’s member secretary, Naini Jayseelan, also told that they would not take long to clear the plan once the state incorporates the suggested changes. “The Noida Extension issue can easily be sorted out,” she said.
Mishra, during the course of the meeting, also sent feelers that the state is serious about reviving the plan in which around 50,000 homebuyers have already invested. This is perhaps for the first time in the recent years that a UP minister participated in an NCRPB meeting.This clearly suggested the active participation of the present state government in its developmental plan. These developments have come as a huge relief to the Greater Noida authority officials.
“It is a positive and important step in resolving the Noida Extension tangle and we are hopeful that the whole matter will be resolved by April,” said Rama Raman, the chairman and CEO of Greater Noida Industrial Development Authority (GNIDA). In fact, Rama Raman played an important role in finding an amicable compensation formula for the land in the area, which was acceptable to a majority of the farmers there. Sources said that the changes proposed by the board would also be incorporated in the sub-regional plan of UP. The master plan was presented to NCRPB earlier this year following an Allahabad high court order, which made it mandatory for the authority to get all changes made in the Master Plan 2021 which was approved by the board. The approval mainly pertains to change in land use of around 2,500 hectares in Greater Noida that the authority claims was approved by the state government. Commenting on the development in the board meeting, Manoj Gaur, the managing director of Gaursons, said the decision will help developers in reducing the delay in giving delivery to buyers. He said builders would now expedite construction work and that the participation of a minister of the UP government in the board meeting was very heartening. This demonstrates their seriousness on the developmental work in the state, he said.

Anil Sharma, the chairman and managing director of Amrapali Group, welcomed the development at the board meeting and said that an amicable solution to the Noida Extension issue would instil confidence among investors. R K Arora, chairman and managing director of Supertech, said that the active participation of the state government in getting the approval from NCR planning board augurs well for the development of Noida and Greater Noida.

This would go a long way in instilling confidence among developers and buyers alike, he said.

QUICK MANTRA
NCRPB has given a conditional approval for Greater Noida Master Plan 2021. It has suggested certain changes to be incorporated in the master plan before it could be approved by the board’s technical committee. A source said that the entire process could be completed by April .

Source:  http://www.groupbookings.in/noida-extension-tension-almost-over-ncr-planning-board-gives-conditional-approval-greater-noida-mast

However, this news did give me a strong feeling of deja vu. When I googled the phrase ‘India real estate regulatory bill’, I came across a newspaper article from 2006 saying that a real estate regulatory bill was expected to be passed in the 2006 winter session of Parliament.

I also came across another article from 2008 that said a real estate regulatory bill was expected to be passed in the 2008 winter session of Parliament. Not just that, I also also came across a draft of a model bill dated September 2009 with a covering letter from a government official attached.

The letter said that the bill should be put up on the web by November 9, 2009, and comments invited from the public. So, I wouldn’t keep my fingers crossed too hard.

Nonetheless, if and when this bill does become a law, it will be a huge improvement for house-buyers in India. Many, if not most, of the problems associated with buying a house at every step could be solved substantially.

For example, right at the beginning of the process, buyers face the problem of getting trustworthy information about the identity of the promoter and basic facts regarding the legal and approval status of the land and the project concerned.

The new law will mandate that each project be registered with and approved by the Real Estate Regulatory Authority and that all information filed with the authority be made available on its website.

No project can be announced or advertised before this registration. This alone will be a huge impediment to so many unhealthy practices.

The draft bill also mandates that the developer stick to the announced specifications and plan, and it lays down penalties if they don’t. Currently, these things are just part of a one-sided agreement that developers typically present to buyers as fait accompli.

Around the country, buyers’ biggest troubles arise from long delays and from developers transferring money from one project to another. The new law tackles this. Registration of a project is for three years and is then extendable for specific reasons twice for one year each. After that, the law allows for what appears to be a handover of the project to some other entity like an association of the buyers.

As far as fund diversion is concerned, the draft law is less than satisfactory. It mandates that 70% of the funds taken from buyers be kept in a separate audited account and paid out only for project expenditure. This is strange, because the 2009 model law said that 100% of the funds should be thus isolated.

Real estate developers in Noida, such as ATS Infrastructure, The 3C Company and Earth Infrastructures, which have about 11 residential projects between them in the city and its surroundings, have either bought land or signed joint development agreements in Gurgaon over the last six to eight months.

The development underscores the problems the real estate sector has been facing in Noida since May this year when farmers’ protests over low prices for their land snowballed into a political issue, leaving projects and buyers stranded.

“Noida Authority now has no land left in its bank to sell to developers,” said Shiv Priya, executive director at Amrapali Developers, a real estate firm scouting for land in Gurgaon. According to property research firm PropEquity, Gurgaon registered a rise in sales of residential units at a time when the market was down in most parts of the country.

Home sales in Gurgaon in the July-September quarter rose 34% from the year-ago period while that in Noida dipped 36%. “The sentiment of buyers has been affected in Noida because of which sales have fallen,” said Anshuman Magazine, managing director of CB Richard Ellis, a commercial real estate services firm.

Developer ATS recently bought a 14-acre plot of licensed land in Gurgaon’s sector 109 forRs 150 crore and signed a joint development agreement with the Chintels group for another 10-acre plot in sector 106. Similarly, 3C Company has signed an agreement with Orris Infrastructure to jointly develop a 47-acre plot in Gurgaon’s sector 89. 3C, which was active only in Noida until now, is planning a group housing project there.

Gurgaon, which is on the southwest of the national capital, had wooed the information technology industry with its gleaming buildings and swanky malls in the late 90s. “We also got a good feedback from many of our existing customers about setting up a project in Gurgaon, which is why we have signed a joint development agreement,” said Brijesh Bhanote, director, sales and marketing, at 3C Company.

There is no new prime land available in Noida, he added. Anckur Srivasttava, chairman of property consultancy Gen-Real Property Advisers, said developers are waiting for the political uncertainty to reduce post state elections next year. Sales of residential apartments in Noida plunged after angry farmers started blocking housing projects.

The agitation, which started in a certain area of Greater Noida, became a larger movement with farmers across the city seeking higher compensation. The issue was settled after a high court ordered the city development authority to pay higher compensation to farmers.

The authority was also asked to return 5% of the farmland it had acquired after March 1997. Property firm Earth Infrastructures, which operated mainly in Noida, has started a residential project on a 10.5-acre plot it bought in Gurgaon’s sector 112 earlier this year.

Bombay Dyeing, which has seen fortunes dwindle from its textiles division, expects realty to generate over half of its revenues this financial year and three quarters in five years. “We will essentially become a real estate firm in the years to come,” managing director Jeh Wadia said. Jeh took charge of Bombay Dyeing in a management reshuffle earlier this year.

The Wadia Group and Bombay Realty, the group’s real estate arm, have a land bank of about 10,000 acres spread across the country. This includes 700 acres of prime land in the financial capital, Mumbai, acquired at rock bottom prices in the 1800s and 1900s by group firms Bombay Burmah, Bombay Dyeing, Britannia and the current and erstwhile promoters. The transformation of the 132-year-old company into a property firm could mean a windfall for its shareholders.

Its real estate division commenced partial property development at Spring Mills at Dadar, in central Mumbai in 2005-06, but the big thrust is expected from this fiscal year. Last financial year, only a quarter of its Rs 1,950 crore revenue came from real estate. “We are launching four projects spread over 180 acres by the March end. This includes projects at Dadar and Worli, spread over 70 acres in the island city of Mumbai and 100 acres in mainland Mumbai,” Wadia said. While Bombay Realty will act as a developer, the title of the land will continue to be with group companies. Subsequently, all other group companies will develop the land along with Bombay Realty through development pacts.

Shares of real estate companies are witnessing some intense selling pressure at the bourses with the BSE Realty index slipping almost 4% compared to 2% fall in the benchmark index Sensex on concerns of weak earnings growth during the recently-concluded quarter and liquidity concerns. At 01:50 p.m., shares of Sobha Developers Ltd, DLF Ltd and Indiabulls Real Estate had slipped more than 4% each. Unitech, Prestige Mills, Oberoi Realty were trading lower by 2 – 3% each on the BSE.

According to a report by Motilal Oswal, the brokerage firm has downgraded target prices for many companies under its coverage by 2-29% and FY12/13 estimates by 2-18%, on the back of (1) moderating sales assumption of next 5 years, along with certain increase in construction cost by 10-15%, and (2) assigning higher discount factor to NAV. Besides liquidity, the revision factors in multiple concerns for real estate companies, including delay in new launches due to regulatory hurdles, escalating commodity prices dampening margins, sluggish demand across markets, slower revival of commercial vertical, and several company-level issues such as CCI probe, 2G spectrum issue, farmers’ protest on land acquisition, etc.

The brokerage advices investors to prefer stocks with prudent balance sheets and strong business models such as Oberoi Realty, Prestige, Phoenix and Mahindra Lifespaces, or stocks with near-term triggers like DLF, which offers play on de-leveraging theme with valuation comfort. Most banks have adopted a more vigilant approach towards the real estate sector for new loan disbursement or refinancing. The banks are selectively biased towards projects with lower uncertainty and/or lease income support, and developers with long-term relation and goodwill. Costlier home loan rate coupled with plummeting customer sentiment is affecting residential sales volume, another major source of fund to developers

DB Realty, the Mumbai-based property developer, is in talks with major real estate companies for joint developments in two of its prime properties in the city which are valued around Rs 3,000 crore, DNA reported, citing two persons with knowledge of these talks. The first property is located in the tony Bandra Kurla Complex, which has a development potential of a million sq ft. The second one at Kala Nagar in Bandra has a potential of 500,000 sq ft. Residential apartments sell for around Rs 20,000 a sq ft in these two areas.

According to the sources, DB’s bankers are in talks with Mumbai-based Rustomjee, which is looking at the deal seriously. When asked, a DB Realty spokesperson did not offer any comments. A Rustomjee spokesperson said: “We have received the proposal and like any other proposal, we are looking into it.” DB was earlier in the news for the arrest of its key promoters, Shahid Balwa and Vinod Goenka, in connection with the telecom spectrum scam. DB has 25 projects in various stages of construction. Recently, it acquired a 50 per cent stake in DB Hospitality, an unlisted firm where Shahid Balwa and Vinod Goenka held 80 per cent stake.

National Real Estate Development Council (NAREDCO) has named its new panel of members in its 13th annual general meeting, held in New Delhi. Navin M Raheja, chairman and MD, Raheja Developers Ltd was elected as its president. The unanimously elected office bearers will serve for a period of two years. Sunil Dahiya, MD, Vigneshwara Developers Pvt Ltd was elected as senior vice president, while Sunil Mantri, chairman, Sunil Mantri Realty Ltd was named as vice president. Rajesh Arora, MD, Arora & Associates Infradevelopers Pvt Ltd was appointed as member finance.

Addressing members, Navin M Raheja the president elected, said, “My vision is to open Real Estate Development Councils in all states of India and enroll new members in large numbers. I will work relentlessly to transform the Housing and Real Estate Industry and make it responsive to the needs of millions houseless, especially poor. I will also take support of Central and State governments in removing various obstacles in the smooth functioning of the sector.” NAREDCO, the apex regulatory body of Real Estate Sector established under the aegis of Ministry of Housing & Urban Poverty Alleviation, Government of India, is working for the promotion of the Housing and real estate sector in India.

It encompasses all stakeholders of the Real Estate Industry such as developers, financers, real estate agents and material manufacturers, etc. Kumari Selja, the Union minister of housing & urban poverty alleviation and minister of culture, is its chief patron. KP Singh, chairman, DLF Ltd, Ramesh Chandra, executive chairman Unitech Ltd, Sushil Ansal, chairman Ansal API, G L Raheja, chairman, K Raheja Constructions and K Raheja Hospitality Housing and Urban Development Corporation Ltd (HUDCO), and National Housing Bank (NHB) are amongst the founders and torchbearers of the Council. Self regulation and transparency in business are the main objectives of NAREDCO.

The country’s largest real estate firm DLF has sold 10.8 acres in Gurgaon to a Dubai-based Indian investor for Rs 280 crore, as part of efforts to reduce its debt burden by a third this fiscal. The company is also in talks with other NRI investors to sell another 20 acres in Gurgaon, which is expected to fetch around Rs 400 crore, reports Financial Express. DLF’s debt stood at Rs 21,524 crore as on June 30. The company plans to reduce this by Rs 7,000 crore this fiscal.

Earlier this month, DLF had sold a plot to M3M India for Rs 400 crore. The company is also in the process of selling two IT parks to Blackstone and IDFC. The deal could fetch another Rs 1,500 crore, the report said, citing sources. In a first, DLF is selling land with the floor space index (FSI), which means the buyer will need no more sanctions and can start construction right away. The FSI-based sale would help DLF mop up more than twice what a normal sale would have got, sources were quoted as saying. Today, developers either sell land from their existing bank or sell their end-use properties.

It is understood that DLF will now sell land with respective FSIs wherever it has the option to do so. FSI is a ratio of the area of construction allowed on a plot against the available land. In the Gurgaon deals, with an FSI of 2.5, buyers have the option of building more than double the plot size. With 10.8 acres, after leaving the mandatory space, a builder can construct commercial units on nearly 18 acres, experts said.

DLF has a land bank of close to 370 million sq ft, of which 10 per cent is non-core. All the Gurgaon land parcels, Noida and Pune IT park are part the ‘non-core assets’. The company is in the process of identifying more such non-core land for monetisation in other cities. It has so far realised over Rs 3,600 crore from sale of non-core assets including hotel plots.

DLF has again started looking for a strategic partner for its luxury hotel chain Aman Resorts, which it acquired for Rs 3,500 crore in 2007. The search has resumed after a year’s hiatus as the company feels the burden of mounting debt. DLF reported a 12.81 per cent decline in its consolidated net profit at Rs 358.36 crore during the first quarter ended June 30.