Indian Real Estate

DDA approves extension of Lal Dora areas

noreply@blogger.com (Er L Goyal) — Thu, 13 Dec 2012 10:14:00 +0530

Source :- The Indian Express,12 December, 2012,New Delhi

The Delhi Development Authority (DDA) on Tuesday approved inclusion of extended Lal Dora areas in the Master Plan-2021, under the review process. Extended Lal Dora areas comprise habitation beyond recognised abadi (village boundaries).

“According to the decision taken on Tuesday, extended Lal Dora areas, which came up till 2007, will be given residential status,” non-official DDA member Naseeb Singh said.

The advisory group on review of Master Plan-2021 recommended use of the term ‘extended Lal Dora’ to include Lal Dora areas beyond abadi in the village boundaries.

Lal Dora refers to the part of village land that falls under abadi. The term applies to 362 rural and urban villages and includes areas like Basant Gaon, Munirka, Yusuf Sarai, Mehrauli, Lado Sarai, Shahpur Jat and Mahipalpur.

“Habitation has come up beyond Lal Dora areas, which will now be recognised under the law. The Delhi government will come up with new boundaries and invite suggestions and objections from the Ministry of Urban Development for this amendment,” a DDA official said.

Other Master Plan amendments approved in the meeting, included provision of multi-gym in district and community parks with an area of over one hectare and subject to a maximum built-up area of 225 sqm. Norms for activities like multi-purpose community halls, religious sites, police stations, healthcare centres, milk booths, etc, in unauthorised or regularised colonies have been made flexible. In case a separate plot is not available for each activity, it may be possible to club activities and provide plots.

To reign in tent cartel, the DDA decided to erect semi pucca (temporary) structures with pipes and trusses and perspective allottees can use these by erecting shamiana or pandals for marriages and social functions.

“The DDA intends to construct nine such mandaps in various districts of Delhi. It has been decided that land may be earmarked for the purpose and a detailed policy framed after earmarking sites and working out modalities,” a DDA official said.

Delhi Circle rate hikes

noreply@blogger.com (Er L Goyal) — Thu, 22 Nov 2012 10:10:00 +0530

Delhi government’s exercise to reduce the difference between black and white transactions has ended in a whimper which was cleared at a cabinet meeting by CM Sheila Dixit. It had 200% hike in upscale colonies of Cat A like Golf Links, Vasant Vihar and Friends Colony. Cat B like Greater Kailash, Defence Colony and New Friends Colony, the hike is 50% and for the rest just 22% as against the proposed 30%. The circle rates, which are meant for valuation of land and immovable properties for charging stamp duty, were first introduced in the city on July 18, 2007. The rates were revised earlier in February 2011 and November 2011.
The 200% hike in A category colonies means a revision from Rs 2.15 lakh to Rs 6.45 lakh per square metre. The market price in colonies like Jor Bagh, Vasant Vihar and Friends Colony continue to be much higher. For instance, in Vasant Vihar, the per sq metre rate is around Rs 10 lakh and in Jor Bagh Rs 12 lakh. Moreover, this is unlikely to have a big impact on revenue as these areas don’t see many sales and purchases. The 50% hike for colonies of Category B – mostly the upscale ones in South Delhi like Greater Kailash, Defence Colony and New Friends Colony —is not enough as the prevailing circle rate is already a low Rs 136,400 per sqm. The market rates in colonies like Greater Kailash are in the range of a minimum of Rs 5 lakh to Rs 6 lakh per sq metre.

Though there is a lot of variance in the properties in C to H categories, the uniform hike of 22% as against the proposed 30% takes the sting out of the exercise. For instance in C category colonies like Kalkaji, Chittaranjan Park and East of Kailash, where the existing circle rate of Rs 1,09,200 per sq metre is to be revised to Rs 1,33,224 per sqm, the current market rate is close to Rs 4 lakh per sq metre.
After the cabinet meeting, the CM said : “In order to curb the flow of black money, it has become imminent to rationalize the minimum circle rates. It was also felt that present circle rates in Delhi are quite low in comparison to the NCR cities like Noida, Gurgaon and Faridabad. Moreover, the circle rates in these towns are being revised frequently after an interval of five-six months.”

Pl Refer-Times of India

How to monetize the blog

noreply@blogger.com (Er L Goyal) — Sat, 6 Oct 2012 17:08:00 +0530

Hi all, i need all of your helps to suggest me the way to monetize my blog as i am not able to make it possible. Whenever i have applied with Google Adsense, i got the revert as Issue with Page Type error which i am not able to resolve.

Will anyone of you help me to resolve the said issue and monetize my blog?

Unorganised property agents to come under proposed real estate regulator’s ambit

noreply@blogger.com (Er L Goyal) — Fri, 21 Sep 2012 11:33:00 +0530

NEW DELHI: The government plans to bring unorganised property agents and brokers under the ambit of the proposed real estate regulator, imposing stringent penalties including imprisonment on those who dupe buyers or operate without a valid registration.

"We have added a chapter on real estate agents in the Real Estate (Regulation and Development) Bill. This will bring in the much needed order in the segment," a senior official in the ministry of housing and urban poverty alleviation said on condition of anonymity. He said the bill will be sent to the Cabinet next week.

The draft bill already includes a provision for imprisonment of up to three years, or a penalty of up to 10% of the cost of project, for builders selling projects without registration.

"The imprisonment clause will be invoked in extreme and deliberate violations," the official said.

Real estate industry bodies have termed the bill draconian and made representations against the provisions of imprisonment and penalty, but the official said that the imprisonment clause has been retained.

The bill has been prepared after several rounds of consultations with state governments and stakeholders like builder associations and consumer forums. The official said it has now been cleared by the law ministry and will be sent to the cabinet next week. The government plans to table the bill in the winter session of Parliament.

Unlike most nations, property brokers in India do not need to register or operate through a licence. A few organised brokerage firms have come up in the last few years, trying to bring in some order in the sector, but most agents are unregulated and operate out of temporary premises.

In the past, homebuyers have reported of being cheated by agents who have misinformed them about projects, pricing and sellers. In many cases property agents have issued credit notes to buyers at the time of signing up the property, but these notes are not honoured.

"Licensing would help as it would take away fly-by-night operators and people with a malicious intent or low understanding of the market, and allow more credible people to operate," said Mudassir Zaidi, regional director at property advisory firm Knight Frank. "There is also a need to have minimum basic qualifications to become an agent." In Australia and in all states of the US, real estate agents need to acquire a licence from the government. These licences are issued only to those who have a certain minimum education and experience in the field. In the UK, the National Association of Estate Agents issues licence to real estate agents. Japan introduced licence for property agents after widespread complaints of unscrupulous practices in the 1980s.

Article Source :- http://economictimes.indiatimes.com/markets/real-estate/policy/unorganised-property-agents-to-come-under-proposed-real-estate-regulators-ambit/articleshow/16376737.cms

Gurgaon---A premiere destination to Invest in India

noreply@blogger.com (Er L Goyal) — Fri, 21 Sep 2012 11:29:00 +0530

A report says that the NCR will have a total demand of nearly 10.2 lakh residential units, 249 lakh sq ft of office space and 66.6 lakh sq ft of retail spaces by 2013.

With rising demand in residential, office, retail, and hospitality sectors, Gurgaon tops the demand charts. Forthcoming world-class projects, proximity and good connectivity to Delhi are a few factors driving these figures. Gurgaon is registering the fastest growth in the real estate sector in the country. Developers are flocking to the region to launch new projects after prices here shot up by as much as 25% in the last one year.

Recently, well-established realty players like Godrej Developer, Tata Realty from Mumbai and Sobha Developers from Bangalore launched their projects in Gurgaon. This has further infused the competition in the sector in the region.

A large number of white-collar jobs have been created in Gurgaon after it emerged as a hub for IT and IT-enabled services in northern India. Also, owing to its proximity to the national capital Delhi, several Fortune 500 firms opened their offices here, employing hundreds of high-income professionals.

Under the new Gurgaon-Manesar Master Plan 2025, the availability of land for development and avenues for new growth corridors has opened up.

The new master plan allocates 14,930 hectares of land for residential use; this is good enough for over 58 new sectors. Most of the new developments are taking place in these sectors. Records show that 35% of the proposed residential land is under the process of licensing.

The major growth corridors in Gurgaon include extended Golf Course Road, Sohna Road, Pataudi Road, Manesar, Jaipur Highway and a concentrated growth in Bhiwadi and Dharuhera. Around the NH-8, the sectors of New Gurgaon like 37, 37D, 80, 81, 82, 85, 86, 90, 92, 93, 95, and 99 are registering a tremendous response.

Developers in Gurgaon Developers like DLF, Unitech, MGF EMAAR, Chintels, Ansal, Orris, Antriksh, Assotech, Raheja Developers, CHD, etc, have major projects that are riding the real estate market.

The ILD Group has come up with ILD Trade Centre on Sohna Road, which is a mixed product that caters to the needs of commercial-office as well as retail-shop buyers. This combination has contributed to its success as a much sought - after project in Gurgaon.

USPs of the project

Building plans uses the trapezium shape of the land in such a way that the symmetry of the plot is established

Eco-friendly material fly ash brought into play for production of concrete for construction of the building

Toughened platinum and bluegreen reflective glass used for curtain glazing in the facade for energy saving

Solar-heater panels on the roof will used for piped hot water during the winter season

Building envelope of brick wall, stone cladding, reflective glass, and multi-layered polycarbonate sheet designed to reduce energy demand

Natural ventilation in all three basements and natural lighting provided in almost all shops and offices

Arch having a profile of elliptical nature at entrance is unique and pleasant to look at

Mixed-use commercial (office) and retail (shop) units

Project will fulfil the commercial and retail needs of a huge residential catchment area comprising 30,000 families

Article source :- http://economictimes.indiatimes.com/markets/real-estate/realty-trends/gurgaon-premium-realty-destination/articleshow/16432401.cmshttp://economictimes.indiatimes.com/markets/real-estate/realty-trends/gurgaon-premium-realty-destination/articleshow/16432401.cms

Map of Faridabad Neharpar Region

noreply@blogger.com (Er L Goyal) — Fri, 21 Sep 2012 10:36:00 +0530

Noida City Overview

noreply@blogger.com (Er L Goyal) — Thu, 20 Sep 2012 15:34:00 +0530

City Profile:- An Introduction

New Okhla Industrial Development Authority comes under the government of Uttar Pradesh and lies in the Gautam Buddha Nagar District. Noida was formed on April 19, 1976 and this is celebrated every year as the NOIDA day. It was during the emergency period when Sanjay Gandhi took the initiative to form the city under the UP Industrial Area Development Act. Noida is one of the most modern cities of India with world class amenities and infrastructure. The state legislative seat of Noida falls under NOIDA-Dadri "Vidhan Sabha" region and the Parliamentary seat falls under the Khurja Parliamentary seat. NOIDA Constituted under the U.P. Industrial Area Development Act, 1976, NOIDA has now emerged as a planned, integrated, modern Industrial City, well connect to Delhi through a network of roads, national highways and the ultra - modern DND flyover, offering inter - road linkages to all parts of the country. Spread over 20,316 hectares, with many sectors fully developed, NOIDA offers a pollution free high standard of living and highly supportive industrial environment with its unique infrastructure providing numerous, matchless facilities.

As per 1981 Census, the population of Noida was 35,541. In 1991, Noida was classified as a Census Town with a population of 146,514. With a growth rate of nearly 300% during 1981-91, Noida has been among the fastest growing towns in India. At this point Noida contained 68% of the total urban population of Gautam Buddha Nagar district of U.P. In 2001, population stood at 305058. The 1991-2001 witnessed slowing down of growth, which was 108.21%. Population of Noida in 2011 is 642,381; of which male and female are 352,577 and 289,804 respectively. In education section, total literates in Noida city are 495,045 of which 286,216 are males while 208,829 are females. Average literacy rate of Noida city is 88.58 percent of which male and female literacy was 92.90 and 83.28 percent.

Location

It is located in the state of Uttar Pradesh at the fringes of Delhi, the national capital. Latitude & Longitudes of Noida are 28° 57' North and 77° 32' East. Located at the doorstep of Delhi, NOIDA is only 14 Kms. away from Connaught Place. Noida is bounded by NH-24 Bye-Pass in the North beyond which the Ghaziabad Development Area exists, in the East by River Hindon beyond which Greater Noida Industrial Development Area exists, in the West by River Yamuna, beyond which are the States of Delhi and Haryana and in the South is the meeting point of the rivers Yamuna and Hindon. Noida stands at 17th place when it comes to cleanliness in India; by comparison, Gurgaon and Faridabad in the National Capital Region stand at 87th and 237 respectively. Noida falls under the catchment area of the Yamuna River, and is located on the old river bed. As per provisional data of 2011 census, Noida had a population of 642,381, out of which males were 352,577 and females were 289,804. The literacy rate was 88.58 per cent.

City Planning & Developments

Roads
The roads in NOIDA are smooth and wide for movement of traffic with ease and comfort. NH 2, Link Road, Kondli Road, Noida-Greater Noida Expressway, the Noida-Agra-Mathura Expressway under construction and the eight-lane DND flyover with Toll Bridge already operational further provide ease and comfort in road-traffic in to and out of the city of NOIDA. The DND flyover with Toll Bridge and Toll Plaza is a unique project. In different sectors of NOIDA, the NOIDA Authority is maintaining 400 Km long internal roads and 125 Km long boundary roads which make the intra-city-road-traffic much easier and comfortable.

From the eastern side i.e., through Sikandrabad and Dadri in Western U.P, it can be accessed by Dadri-Surajpur-Chalera (DSC) road. It is linked to Gaziabad and Delhi and in fact whole of northern India through NH 24, a road that connects the National capital Delhi to Uttar Pradesh state capital Lucknow running 438 km (272 mi) in length. NH 24 is approached through two link roads, one running along the left marginal bund of river Yamuna and meeting the Highway at the eastern end of Nizamuddin Bridge and the other, popularly known as Noida by-pass, meeting near Ghazipur village. Kondli road between Sector VIII and Sector IX connecting through Patpargunj Group Housing area is another route that connects Noida to east Delhi and Ghaziabad area. However, traffic from North, West and South Delhi mostly uses the "Nizamuddin Bridge to reach Noida. The width of the Bridge has already been increased to more than twice its original dimensions. In the south-west, the Okhla Barrage over the Yamuna connects Noida with Delhi, Faridabad, and other parts of Haryana and also the whole of southern India through NH-2 (Mathura Road). Meerut is approx 75km, Ghaziabad is 25 Km, Greater Noida is 10Km and Faridabad is approx 35Km distant from Noida.

The distance, time and cost of commuting to and from Delhi-Noida is further reduced by the world-class expressway known as DND Flyway, the shortest route between Noida and Delhi. The acronym DND stands for "Delhi-Noida Direct". Developed over a period of 24 months, DND Flyway is the first Toll Plaza in India to be certified ISO: 9001: 2008 for excellence in the field of Operations, Maintenance and Customer Services. It is now operated and managed by ITNL Toll Management Services Ltd. This eight lane NOIDA Toll Bridge is about 550 mtr. long running across the River Yamuna connecting Maharani Bagh in Delhi to NOIDA. The Noida expressway and the Yamuna Expressway are again two of the engineering marvels in the infrastructure of Noida. The Noida expressway is a joint venture between Noida and Greater Noida. Built by Ircon International Limited, at an estimated cost of Rs. 202.42 crore, this expressway is 23.742-km long. Work on the project was started on 1 June 1999 and is now functional. With the completion of this highway, many investment opportunities have opened up in every sphere of living conditions in Noida. The expressway is turning into a hotspot for realty development. This six-lane Noida-Greater Noida Expressway connecting with the 165km Yamuna Expressway which is also operational , will put the developmental projects on a fast track. The Yamuna Expressway, UP’s most prestigious and longest road project in several decades, is all set and functional now. Being located at the doorstep of national capital, Noida has all the comfort & conveniences of Delhi without having its drawbacks. Noida is now the most preferred destination for corporates and MNCs looking for an office space or commercial buildings to set up their corporate offices.

Dream Housing Projects

About 35.66 % area of NOIDA is being developed as residential areas. 4,49,456 sq. mtr. land has been year marked as residential areas and rest meant for group housing projects. For the working class, engineers/employees of different establishments, project has been introduced involving construction of 31035 residential units in duplex, HIG, MIG, LIG and EWS categories. For sheltering those below poverty line, under the SHRAMIK KUNJ' project, 4952 houses of one room set have been constructed. Plans are also afoot on a project to bring a Senior Citizens' residential complex.

Residential Development

The developed area in Noida is about 9211 hectares of which about 3358 hectare that is 36.45 percent comes under residential use. Actual development of Residential land is more than what was expected by 2011 and the high growth rate of population during last decade reflects the picture. Maximum development for the residential sectors in Noida was witnessed in the 80s with atleast 33 sectors developed over an area of 1,559.45 hectares. Though the development of the residential sector was given more emphasis at that time, the industrial sector also was given enough attention. The development of industrial area Phase II, NEPZ, and the hosiery complex, was undertaken during the 80s and afterwards. In order to better utilize the available land, to accommodate more population and to provide affordable housing units, the co-operative societies were boosted up to initiate the development of group housing residential projects. The authority also developed land in various sectors of Noida to construct housing residential projects for the Industrial labour and other income categories of the society. Noida authority considers the group housing as a very important policy for better management of land as well as population for which it has allotted approximately 1025.45 hectares of land as developed group housing plots which would accommodate about 10 lakh populations. More than 34500 residential units have already been constructed while about 30000 residential plots have been developed for the income categories under the vigilance of Noida authority.

Commercial
Side by side with the creation of commercial centres in each sector , as a part of its planned and synchronous development, a full-fledged commercial complex has been developed in sector-18 where one get everything from on ordinary writing paper & stationery to computer-print paper & stationery, clothing material to fashionable garments, simple tools & tackles to electrical & electronic goods & appliances etc. This area is replete with well-known brands like Ebony, Nanz, Rayban, U.C.B., Red Tape, Hot Breads, Levis, Reebok, Adidas, Parx & Raymond etc. The large & spacious buildings here viz. Ansal Plaza, Ocean Plaza, Sab Mall, Centre Stage Mall, Supertech Mall, Vishal Chambers, etc. house leading Indian corporate & multinational business houses. Apart from the reputed hotels like Nirula, Shipra Hotel, Savvoy & Raddisson there are also a host of restaurants like McDonald, Domino Pizza, Subway, Pizza Hut, Bamboo Shoots, Haveli, Purani Dilli, Kebab Factory, Ice-cube, Ruby's Tuesday, Barista coffee shop etc. serving a wide variety of haute cuisine suiting everyone's culinary taste.

NOIDA city center is being developed on a 99 hectare plot. The city center will have boundless facilities within viz. big offices of trade and commerce, cultural center’s, service industries, five star hotels, international standard restaurants, whole sale outlets, multiplex, center for socio- cultural activities, government/semi-government offices, public facilities, residential blocks & residence cum work centers, and premises for informal/unorganised sectors. On completion, the city center is expected to give a face lift- a new identity to NOIDA in the socio-economic, cultural trade and commercial area.

Though there are a number of commercial centres spread all across the city, but still, the share of commercial development is much less than the expected share. About 102 hectare land in different part of Noida is developed and used for commercial activities of which 21.15 hectare is developed for whole sale commercial. In its master plan, the authority has proposed one City Centre Comprising approximately 98.59 hectare land in sector 32 and 25A and few other sub-district centres. sector 18 has a well-developed major commercial area in about 35 hectares.

Institutional
NOIDA has given topmost priority to the development of Educational Institutions. The leading schools viz. Amity International, Apeejay, Army Public School, D.P.S, Khaitan, Cambridge, Somerville etc. are providing school level education facilities to not only the children of NOIDA residents, but also to residents of Delhi. The number of higher Educational, Management and Technical Institutions also abounds in Delhi. To name a few are NIIT, ITP, Infosys Computer Education Centre, V.V.Giri Labour Institute, J.S.S Engineering College, Women's Polytechnic, Amity Business School, Amity School of Information Technology, Amity Institute of Biotechnology. Leading Management Institutions like IIM is also making NOIDA one of its centres of operation.

Many Public Sector Undertakings and other Organisations have also made Noida their homes. NTPC, Birla Research Institute, IBP, GAIL, KRIBHCO, PPCL, NFL, FCI, HUDCO, ICMR, BHEL, PDIL, IOC, BP, NIL, FDDI, ER&DI etc. are to name a few

Industrial Area Development

The industrial sector in Noida established itself phase by phase in accordance with the area provided by the authority. In its first phase, 393 hectares of industrial land extending over 12 industrial sectors were developed which provided almost 4800 developed industrial plots. Second phase witnessed the development of 127 hectares of industrial land which provided 260 developed industrial plots. Simultaneously, under the extension scheme of the development of Noida, phase II, 132 hectares of industrial land was developed which provided about 462 developed industrial plots. The third phase started with the development of sectors 57, 58, 59, and 60 wherein 206 hectares of industrial land was developed which provided 922 developed industrial plots. At this time the export promotion zone was established in an area near Noida Phase-II Industrial Development Area in which about 115 hectares of industrial land was developed resulting in the development of 214 plots. Consequently, a total of 973 hectares of industrial land were developed leading to the provision of 6,658 plots under Phases-I, II, II (Extension), III and Export Promotion Zone Development Schemes. In the year 1998, a total of 3587 small-scale units and 235 medium and large units were registered in Noida.

By the year 2010, the total industrial land area in Noida was about 1267 hectares. Moreover its proximity to Delhi made it an ideal destination for the entrepreneurs to invest in industrial development. There are 6014 manufacturing units here. With an investment of about 12710 crore rupees, these industries provide employment to over 94736 people. To help establish industries, many industry-friendly simplified measures have been introduced. As a result, now building plans conforming to by-laws need not wait for approval for commencement of construction. Non-interested entrepreneurs can exercise the option of post-allotment "surrender without tears". The requirement of seeking permission for mortgaging" fully paid" industrial plots, have been done away with. At the time of transfer of industrial property, the requirement of getting clearance certificate from other departments of the UP Government has been removed.

The NOIDA Software Technology Park (STP) ranks second in the country in terms of export turnover and the Infotech Park (ITP) on 100 acres of land with state-of-the-art infrastructure, housing about 152-200 units make NOIDA the epicenter of IT Revolution. NOIDA Export Processing Zone (NEPZ), a 100% export oriented unit and the only land locked export processing zone in the country, housing industries like Electronics, Textiles, Engineering, Computer Software, etc. recorded a turnover of Rs. 846.20 Crores in the current year. Realising NOIDA's potential, many reputed industrial houses both at home and abroad have made NOIDA the pivot of their operations. M/s Motwane Laboratories, America (Known for their reputed medicines) have been allotted 300 acres of land out of which 100 acres will be utilised by for establishing a bio-tech university. This will be the first bio-tech University of Asia which will give a new lease of life to the bio-tech students of our country.

The Villages of Noida

In the 31 village panchayats of NOIDA, there are 81 villages out of which 64 are developed. Noida originally consisted of around 100 villages, but now comes under the Gautam Budh Nagar District of Uttar Pradesh. Many villages are visible from the Noida Expressway, beginning from the Mahamaya flyover to Greater Noida on both sides. One end of Taj expressway terminates on Noida Expressway near Hindon River and other at Agra.

Entertainment & Leisure

Amusement Park

To light up Noida's skyline, International Recreational Park Ltd. has been allotted a 140-acre plot in Sector 38A to develop an amusement park without parallel. As much as 119 acres will be dedicated to theme amusement and entertainment. This will comprise: Fantasy World (covering approximately 47.03 acres), Bollywood Film Park (13.17), Entertainment Village and World (22.4), Water World (13.58) and parking (11.2). The remaining 21 acres will be dedicated to commercial facilities supportive of the park.

Noida Habitat Centre

Noida Habitat Centre was planned for societal, cultural and intellectual development at the national and international levels. Its objective was to awaken and promote the environment of society's intellectual activities. Keeping the convenience of all the residents, industrialists, businessmen and traders of the city in mind, the NHC is running several cultural programmes and intellectual seminars. The Centre house a high-level library and world-class auditorium, conference and banquet hall as well as club facilities, restaurant, fitness centre, yoga and de-stress centre, amenities for sports and leisure, service apartments/rooms, utility store, food court, mini-audo/movie theatre, function hall, training room/classroom, swimming pool, exhibition hall, art gallery and business centre. On its 15-acre site, the NHC promotes all-round progress in the area and become a major attraction of the city.

Impetus for sports & games

The stadium at Sector 21 has been developed to hold international-level sports and games. In addition, along the Expressway, World Nature and DSC Road, the establishment of a sports complex spread over 450 acres in Sector 101 involving two large indoor stadia is being planned where badminton, table tennis, weightlifting and basketball competitions can be organised. Further, the Yamuna water body along the Okhla Barrage has been identified for water sports, especially rowing.

Infrastructure Development

The infrastructure in Noida like its roads, sewerage, power and water supply, etc is far better than those new cities coming up in the nation. Be it the ""hard infrastructure"" like transportation, energy, water management and communications or the ""soft infrastructure"" like economic, social, cultural and recreational, Noida has gone way ahead of others in providing a smooth living. The Noida Master Plan considers systemic development to enhance the quality of both industrial as well as social life.

A recent report revealed that government of UP is planning to take all infrastructure projects in Noida and Greater Noida with high importance as Noida is the highest revenue earner for the state and contributed around 25 per cent of the state GDP. Noida Authority and residents are requested by the ministry to work together towards making Noida a world-class city.

Noida is connected smoothly through an excellent network of roads to Delhi and other major cities. Connectivity has further improved with the construction of the DND flyover, Noida expressway and Yamuna expressway which are some of the great additions to the infrastructure of Noida. Many new projects are coming up as a makeover plan in Noida's landscape so as to provide a smoother drive. Witnessing the rising growth rate and the resultant jam, Noida authority has drawn up a blueprint to steer its residents clear of the chaos. The makeover plans for the cityscape of Noida include six elevated roads, 10 underpasses and flyovers, besides wider, better and well-engineered roads for which the overhead electric wires are also been removed and shifted to underground. According to the latest reports, the authority is working to remove various obstacles that are coming in the way of smooth traffic. The roads along Sector 18, Rajni Gandha Chowk, Sector 37 and Choura Mor, among others, have been widened to meet the increasing traffic. The DPR (detail project report) of Metro lines on six different routes is also under preparation.

The proposed railway link for Noida, which will connect the city to Tughlaqabad in South Delhi at one end and to Dadri at the other end, is at the planning stage. Once this link is established, the city will be connected by rail to all important towns of the NCR and rest of the Nation. Proposed Mumbai – Dadri dedicated Rail freight corridor will also pass through Noida and once it is constructed it will open new avenues for Industrial and Institutional development in Noida.

Infrastructure, particularly transport, has been the root cause of degradation in the quality of life in urban areas. Noida, however, is presently experiencing rapid changes in its physical structure as the authority is constantly trying to upgrade the transportation system.

Hierarchy of Roads

§ Arterial Roads: These are the external roads providing regional linkages to Noida with Delhi and towns of Uttar Pradesh. These roads also form the arterial network for Noida as they pass through the city.

§ Sub Arterial Roads: These are the major internal roads of the township, which are planned to cater to the bulk of the intra-city movement.

§ Main Collector Road: These are other internal roads providing access to various sectors from the work centres developed so far. These roads are generally of 45.0 metres wide right of way.

§ Secondary Collector Roads: These are intra sectoral roads for movement within the sectors and providing approaches to various properties. These roads are generally of 24 to 30 metres wide right of way.

Noida-Greater Noida Expressway

About 1/3rd of Noida development area notified and falling between rivers Yamuna and Hindon recently is unapproachable due to lack of road linkages. There is only one road which links Greater Noida with Delhi through Noida. The Expressway between Greater Noida and Noida is 23.64 km long - 19 km falls in Noida and 4.64 km in Greater Noida and passes through 16 villages. It is a 6-lane divided highway with service roads on both sides

Greater Noida - Mathura - Agra Expressway :

This express highway was recently opened to general public and has been constructed near east bank of Yamuna. The main objective of this highway is to reduce the load on National Highway No. 2 and development of industrial and commercial centres near the east bank of Yamuna and also to reduce travel time. This highway is connecting Greater Noida with Dankaur, Javer, Tappal, Jatari, Naujheel, Mathura etc. The length of the said Yamuna Expressway highway from Greater Noida to Mathura is 123.789 km and was recently completed by Jaypee Infratech Group through BOT basis.

Delhi Metro

Noida has been put on the fast track for the Delhi Metro. The Metro, which was earlier slated to enter Noida in 2011, opened officially on 12 November 2009, 10 months before the Commonwealth Games. Through Delhi Metro, Noida is now connected to Connaught Place, New Delhi, via Barakhambha Road, IP Estate and Akshardham Complex. The Metro connects NOIDA to Vaishali, through the Yamuna Bank interchange station. A part of this link opened on 11 November 2006.

Second homes remain on the to-buy list

noreply@blogger.com (Er L Goyal) — Tue, 11 Sep 2012 14:57:00 +0530

Live Mint,11 September, 2012

Real estate remains at the top of the buy list for Indian investors. After the first home is bought and paid for, the search for the second one begins. Capital appreciation, rent, inflation protection —all remain the reasons why real estate continues to be popular.

Mint Money along with property portal Makaan.com conducted a nationwide survey across 12 cities (Delhi/NCR, Mumbai, Bangalore, Hyderabad, Chennai, Ahmedabad, Kolkata, Pune, Chandigarh, Kochi, Coimbatore and Jaipur) and incorporated responses from 1,430 participants. The aim of the survey was to find the mood and appitite of the second homebuyers.

The survey spans age group between 18 and 55 years and above. But the maximum number of respondents are between 25 and 45 years of age.

Of the 1,430 respondents, 33% say they do not see any slump in the Indian real estate market. About 35% are unable to comment if the real estate market is witnessing a slowdown. Normally, sales across primary market (new launches) depend upon the robustness of the secondary market or the resale market. Investors who transact in resale market invest primarily at the initial stages of a project. “The resale market is currently witnessing a dip in demand because of the continuous price hike. Despite the slowdown from 2008 to mid 2009, real estate market bounced back and is now witnessing a price hike. This has led to an overall lowering of buyers’ sentiment,” says Harmit Chawla, managing director, Hcorp Realty Pvt. Ltd, a New Delhi-based real estate company. However, 37.27% homebuyers want to invest within six months in the real estate market, the survey finds. And around an equal number want to invest after 12 months. Let’s assess why people look for a second property.

Financial security

High rental yields, appreciation of the invested capital amount, financial security and family requirements are the primary reasons to buy a second property. And it is also because of the divergent market indicators they want to be rest assured that their investment is safe.

More than 47% of respondents plan to buy a second home because of the increasing size of the family. However, almost 40% look at second home either as a tool for financial security or as a means for steady rental income. Prashant Solomon, managing, Chintels India Ltd, a New Delhi-based developer having projects in Gurgaon, “Property prices have never come down despite the slowdown. Thus, a second property also becomes the best asset class in terms of securing one’s money. Second homebuyers often park their extra income by buying asecond property in either the same city or some other tier-II city.”

Demand for affordable houses

Though builders have been focusing on the premium category, the demand is still predominant in the affordable segment, indicates the survey. A significant portion of the existing prospective second time homebuyers are looking for an affordable option. At least 78% of the respondents in the survey said they want to own a property that is under Rs.40 lakh. Around 16% said they can invest in properties between the price range of Rs.40 lakh and Rs.1 crore. According to the survey, very few fall in the category of those deep-pocketed buyers who have the ability or willingness to buy a second property worth at least Rs.1 crore and above.

If you are looking at real estate purely for investment purpose, the highest returns would be from affordable and mid-range housing rather than premium and luxury housing for which demand is not so high. “Since sales across premium and high-end categories are under slight stress, affordable category continues to generate a lot of investor interest. Thus, in the current scenario, an apartment under Rs.50 lakh is the most saleable,” says Shveta Jain, executive director-residential services, Cushman and Wakefield India, an international property consultant firm.

Apartments preferred

You may be living in a bungalow or an independent floor, but it is apartment projects that are drawing the maximum number of buyers. The survey found that people prefer apartments to independent houses, farmlands or plots: 43% respondents wanted to buy an apartment while only 37% want to purchase a plot as their second investment in real estate.

However, metros and tier-I cities emerge as investment destinations with 51% wanting to invest in these cities only. “Since prices in the metros and tier-I cities are not below Rs.5,000-6,000 per sq. ft, buyers reduce their (the apartment) size to buy apartments in these location,” adds Jain. As much as 33% respondents want to invest in tier-II cities.

The other reason for such inclination could be the security that the apartment projects provide. Chawla adds:

“Moreover, buyers are saved from the hassle of construction.” Interestingly, very few votes are for farm houses and villas. While 14% would prefer to buy a villa, only 7% of the respondents prefer to buy farm houses.

First real-estate web channel Propex TV launched in India

noreply@blogger.com (Er L Goyal) — Tue, 11 Sep 2012 14:50:00 +0530

Propex TV, claimed to be the country's first real-estate web channel, has started its operations in Malayalam.

The web channel will provide a 24x7 common platform for the Malayalee property buyers and sellers all over the world, Charles William, Chairman of Kochi based J C Group, which launched the Propex TV, told reporters here today.

The programmes produced by the JC group and aired by various television channels provide a common platform for buyers and sellers in real estate sector to come together.

At present, JC Group's programmes are being telecast by six Malayalam channels.

The web channel can be downloaded on smart TVs, tablets and the new generation smart phones. It can be accessed through a specially developed application, which can be downloaded on Android platforms.

The group proposes to make it available on devices using other operating systems like Iphone, Window, Blackberry, Bonny Thomas, Chief of Programmes, said.

The English version of Propex TV will be launched within one and half years, the officials said.

Source Courtesy :- The Hindu Business Line,11 September, 2012,Kochi

MCD & ASI disputes

noreply@blogger.com (Er L Goyal) — Tue, 11 Sep 2012 10:23:00 +0530

The Municipal Corporation of Delhi (MCD) has halted construction around the Lodhi era structures in Mehrauli, where some locals were building an unauthorized structure. Due to these new under-construction structures, historic arch with unique calligraphy work is being misused by the locals.
As per archeologist & historians, the arch was originally part of a tomb or gumbad which was partially demolished in early 1993. Only parts of the original monument managed to survive, including the arch with extensive calligraphy work of the era in which it was built. The ruins and arch are listed heritage structures according to INTACH Delhi Chapter and also feature prominently in MCDs heritage list.
Locals had started building a structure at the site where the ruins of the monument are, in Andheria More in Mehrauli. The arch is being used as part of the new structure. Already a side wall was built and the work was in so speed that the whole structure can be built within few days. The construction has already come to the notice of the state department of archaeology, which is currently working on the restoration of 92 monuments in the city not under the jurisdiction of Archaeological Survey of India (ASI). The unauthorized construction at the historical site cannot be allowed to continue under any circumstances.
Historians and conservationists fumed that this was a major violation of a historical monument. The arch was the only portion of the structure which was still intact after the building was first demolished and the remaining portions collapsed over the years. At a time when the government is working towards notifying unprotected heritage structures, it is appalling that such an illegal building is coming up on the main road of Mehrauli, said a conservationist.
As the heritage list was pending notification with Delhi government for the last five years, the action taken for the unauthorized construction would be limited at MCD end.

Retail joint venture between DLF & Piquadro dematerialized

noreply@blogger.com (Er L Goyal) — Wed, 8 Jul 2009 13:02:00 +0530

DLF Brands is winding up its joint venture with Italian leather and luggage accessories major Piquadro to open a chain of monobrand stores in the country. The development comes even as real estate giant DLF’s retail management arm is resetting growth strategies following an economic downturn, and reviewing the expansion plans of a few international fashion and lifestyle brands it operates locally.
The 51:49 JV between Piquadro and DLF Brands was projected to open 16 exclusive stores by 2013. DLF has closed down the first high-end Piquadro store opened in New Delhi almost six months back and has dismantled an internal team working on the brand.
Timmy Sarna, CEO of DLF Brands, confirmed the closure of the existing Piquadro store. “Piquadro is a very sophisticated brand, which is much ahead of its time with regard to the Indian market. It had a higher price positioning than our other brands and was unable to garner enough brand recall,” he said, when contacted.
However, he added that DLF may revisit plans and introduce Piquadro with more stores in the next few years once the market is ready. Mr Sarna also denied that DLF was putting expansion plans on hold or reviewing the business strategy of a few other international partnerships with Italian apparel brand Alcott and French home decor retailer SIA. He added that the company was poised to open 15 odd new stores in the next few weeks across its brand portfolio. It operates a network of 20 stores currently.
DLF Brands had signed up a host of global brands in the premium-to-luxury segments over the last two years. This included high-profile JVs with Giorgio Armani, Salvatore Ferragamo and Dolce & Gabbana. Besides, it had also roped in brands like Alcott, Boggi, SIA, Sunglass Hut among others either through licensing deals or joint ventures.
This large portfolio had niche global brands with not-so-high brand recall in India. Sectoral observers said DLF Brands could be reworking its retail play and expansion plans of several brands in the wake of the changed economic climate. But its JVs with Giorgio Armani and Ferragamo were on firm ground even though fresh store openings are likely to be deferred in the prevailing conditions.

Merger between State Bank of India and State Bank of Indore

noreply@blogger.com (Er L Goyal) — Wed, 8 Jul 2009 12:58:00 +0530

The State Bank of India (SBI) board has approved the merger of its subsidiary, the State Bank of Indore, with itself. This would be the second acquisition by SBI of a subsidiary bank after the merger of State Bank of Saurashtra. The State Bank of Indore board, too, has approved the merger proposal. SBI holds 98.3% in the bank, and the balance 1.77% is owned by individuals, who held the shares prior to its takeover by the government.
The acquisition of State Bank of Indore will help SBI add 470 branches to its existing network of 11,448. Also, following the acquisition, SBI’s total assets will inch very close to the Rs 10-lakh crore mark. Total assets of SBI and the State Bank of Indore stood at Rs 998,119 crore as on March 2009.
The country’s largest lender had in early 2007 announced its intention to merge all its seven associate banks with itself. The market had estimated that SBI would first merge the small unlisted banks. SBI holds 100% stake in State Bank of Hyderabad and State Bank of Patiala, and in the range of 75-98% in State Bank of Bikaner and Jaipur, State Bank of Indore, State Bank of Travancore and State Bank of Mysore.
For SBI, the acquisition of State Bank of Indore will mainly be an HR exercise. This is primarily because SBI and all its six associate banks share a common IT platform and follow similar policies. Further, even as treasuries of all the associate banks operate separately, they are situated in the same building in south Mumbai. Moreover, the associate banks already sell insurance policies of SBI Life and issue SBI credit cards.
“The timing of the approval indicates there is some level of comfort for SBI to go ahead with the plan of merging its associate with itself, given that the Left is out of the picture,” said Hemindra Hazari, head of equity research at Karvy Securities.
It may be recalled that the SBI board had approved the merger of State Bank of Saurashtra with itself sometime in August 2007, but could only complete the process by August 2008, after the Left had walked out due to differences over the Indo-US nuclear deal. In his first meeting with the CEOs of PSU banks, finance minister Pranab Mukherjee said consolidation was important to improve competitiveness among Indian banks.

US ANTI-TRUST NOD has been granted to Tech Mahindra for Satyam Open Offer

noreply@blogger.com (Er L Goyal) — Wed, 8 Jul 2009 12:55:00 +0530

As per TECH Mahindra news, they have got the approval from the US anti-trust authority regarding its Rs 1,154-crore open offer for the purchase of an additional 20% stake in Satyam Computer.
In a filing to the stock exchanges Tech Mahindra said, “Our request for early termination of the applicable waiting period relating to the offer has been granted under the Hart-Scott-Rodino Antitrust Improvements Act of 1976...”
Tech Mahindra further said, “The condition to the offer with respect to anti-trust approval under the Hart-Scott-Rodino Act has been satisfied.” The anti-trust approval in the US was needed as both the companies — Satyam and Tech Mahindra — have technology outsourcing work in the United States, and also because Satyam is listed on the NYSE.
The open offer has already got anti-trust approval from Germany’s competition regulator, the Federal Cartel Office, and India’s two premier bourses Bombay Stock Exchange and National Stock Exchange. Tech Mahindra had announced an open offer on April 22 for buying an additional 20% at a price of Rs 58 a share.

IVRCL INFRASTRUCTURES & PROJECTS on the move of getting the orders from IOCL & other vendors worth Rs 432.36 CR

noreply@blogger.com (Er L Goyal) — Wed, 8 Jul 2009 12:53:00 +0530

As per information published by IVRCL Infrastructures & Projects, they have bagged contracts worth Rs 432.36 crore from different vendors, including Indian Oil Corporation, for construction-related works. The company has received an order worth Rs 144.56 crore from Coastal Gujarat Power. The project is scheduled to be completed in 18 months and two orders aggregating Rs 81 crore from Uttar Pradesh Rajkiya Nirman Nigam, IVRCL said. The infrastructure firm has also received a Rs 46.54-crore order from IOC for construction of quarters, estate office at Paradip and a Rs 21.51-crore order from Hindustan Dorr-Oliver.

Lending rates for home loan customer has been reduced by SBI for first 3years

noreply@blogger.com (Er L Goyal) — Wed, 8 Jul 2009 12:44:00 +0530

STATE Bank of India has launched two special home loan schemes that assure low interest rates in the first three years, upping the ante for its rivals in the mortgage market, which has turned bullish following a pickup in home sales in May.
HDFC is yet to take any action in this matter as the budget has already been passed in parliament. ICICI Bank said it has already reduced interest rates in line with the movement of systemic rates and deposit costs. “We believe that the home loan segment has robust potential and we would continue to focus on this segment,” said an ICICI Bank spokesperson. LIC Housing Finance—the second-largest mortgage finance company—has also reduced home loans for existing borrowers by 50 basis points.
The intensity of the competition between SBI and HDFC is evident from claims and counter-claims from both sides on the superiority of their product. “Even if the borrower gets a better deal for the first three years, his payment over the remaining tenure of the loan will be lower under an HDFC loan,” said HDFC joint MD Renu Karnad. The institution’s chairman, Deepak Parekh, had recently announced a possibility of lending rates coming down if there is a decline in cost of funds.
According to Ms Karnad, there has been a remarkable pickup in home sales. “We are seeing this because of a real reduction in property prices. Builders like Unitech and Lodha have brought down rates in Delhi and Mumbai and are seeing growth in sales.” She added that the pickup in sales was so sturdy that prices have started picking up again—a perception echoed by SBI. “There is a definite pickup in home purchases partly driven by a fall in cost of loans and real fall in property prices. There are pockets where the resurgence is so good that property prices have started picking up; it has come a full circle quickly,” said an SBI official. SBI has a home loan portfolio of over Rs 56,000 crore.

Homosexuality legalized by Delhi High Court

noreply@blogger.com (Er L Goyal) — Wed, 8 Jul 2009 12:33:00 +0530

In recent order passed by Delhi High court, Section 377 of the Indian Penal Code (IPC) has been striked down and legalized homosexuality.
Section 377, a law from the British Raj era, says homosexuality and unnatural sex is a criminal act.
Hearing a petition of Naz foundation, a bench comprising Chief Justice Ajit Prakash Shah and Justice S Muralidhar said if not amended, Section 377 of the IPC would violate Article 21 of the Indian constitution, which states that every citizen has equal opportunity of life and is equal before the law.
The bench said it was not illegal for woman and woman or man and man to have private consensual sex. The bench ordered that the Section 377 was violative of Article 21 of the Indian constitution.
The order assumes significance in view of the Home Ministry and the Health Ministry conflicting each other’s stands. While the Home Ministry wanted the petition to be dismissed, the Health Ministry said the statute 377 was obstructing AIDS/HIV prevention efforts.
AS An NGO working among AIDS/HIV-affected people, all that the petitioner sought was a reading down of the wide-ranging provision, which imposes life sentence on those found to have carnal intercourse against the order of nature. Much as the provision sounds archaic, there is little likelihood of it being repealed as the relief sought by the petitioner, by its own admission, has been framed to ensure the continuance of applicability of Section 377 to cases involving children or cases involving non-consensual sex. However, the Yoga Guru Baba Ramdev & a leading psychiatrist is against of the same as the homosexuality will be against of the nature.

Disaaproving of Immovable property sale through General Power of Attorney or Will by Supreme Court of India

noreply@blogger.com (Er L Goyal) — Wed, 8 Jul 2009 12:30:00 +0530

Strongly disapproving of the sale of immovable properties through general power of attorney (GPA), agreement to sell and will, the Supreme Court has declared that such sales of property are not only illegal, but also cause huge loss of revenue to the state exchequer, besides encouraging the real estate mafia and their musclemen to indulge in fraudulent sale of properties to more than one purchaser.
A bench comprising Justices R V Raveendran and J M Panchal also issued notices to the Union government and the states of Punjab, Haryana, Delhi, Uttar Pradesh and Maharashtra seeking details of the steps taken or proposed to be taken by the respective states to deal with the chaotic situation arising from such transactions.
The apex court, while directing the matter to be listed for hearing in the last week of August, has also directed the states to inform the court whether power of attorney sales (that is, transactions involving execution of sales agreement/GPA/will) instead of regular sales are prevalent in their respective states and sought the views of the respective state governments in respect of such transactions.
Justice Raveendran, writing a 13-page judgment for the bench noted, "whatever be the intention, the consequences are disturbing and far-reaching, adversely affecting the economy, civil society and law and order.
Firstly, it enables large-scale evasion of income tax, wealth tax, stamp duty, and registration fees, thereby denying the benefit of such revenue to the government and the public.
Secondly, such transactions enable persons with undisclosed wealth/income to invest their black money and also earn profit/ income, thereby encouraging circulation of wealth, and corruption.
This kind of transaction has disastrous collateral effects also. For example, when the market value increases, many vendors (who effected power of attorney sales without registration) are tempted to re-sale the property taking advantage of the fact that there is no registered instrument or record in any public office, thereby cheating the purchaser.
When the purchaser under such power of attorney sales comes to know about the vendor section, he invariably tries to take the help of musclemen to sort out the issue and protect his rights.
On the other hand, real estate mafia many-a-times purchase properties which are already subject to power of attorney sales and then threaten the previous power of attorney sales purchasers from asserting their rights.
Either way, such power of attorney sales indirectly leads to growth of real estate mafia and criminalization of real estate transactions." Overall, we can see this step in favour of buyers who always been feel cheated during these kind of immovable property transactions.

Delhi budget & hopes for delhites

noreply@blogger.com (Er L Goyal) — Tue, 30 Jun 2009 17:16:00 +0530

The good news for delhites has been come up in this budget. To push the completion of all Commonwealth Games related projects in the capital, Delhi government allocated Rs 2,105 crore for the financial year 2009-2010. Presenting the budget, Delhi finance minister Dr AK Walia said that this will include Rs 1,000 crore additional Central assistance from the Union government.
As per Delhi Chief Minister Sheila Dikshit, her government is not facing any dearth of funds to execute the projects. Walia said that by the end of this year Rs 4,657 crore would have been spent on these projects and so far the central contribution has been Rs 1,750 crore. The total expenditure could touch approximately Rs 6,728 crore.
Earlier in the day, while presenting the budget, Walia claimed that the timely completion would not only contribute to the “successful organization” of the Games but would also “add assets” to the city. He said that the government has appointed consultants to suggest and design the landscapes around the Games venues and also intersections on all major roads connecting the venues. He added that a polyclinic will be set up at the Games Village by the health department in addition to setting up of a medical facility at each venue and training centre.The redevelopment works in heart of Delhi- Connaught Place area whereby the structures were very old and was in need for cares were already started under JNNURM project with a total investment of Rs 253 crores. Delhi government had released the first installment of Rs 22 crore last year and for the current fiscal, an outlay of Rs 45 crore has been proposed.
In his please-all budget, Walia also allocated Rs 1,524 crore for urban development, the second highest plan allocation after the transport sector. Central government has approved 15 projects for construction of about 65,000 flats worth Rs 1,815 crore as part of Rajiv Rattan Awas Yojna, under JNNURM. He said that about 8,000 flats are ready for allotment.

DLF raising funds from Stanchart Bank

noreply@blogger.com (Er L Goyal) — Tue, 30 Jun 2009 17:12:00 +0530

As per industry sources, India's largest real estate firm DLF is close to raising $300 million by way of a foreign currency loan at a rate significantly lower than what it would have to pay in the domestic market. The company is raising the loan from Standard Chartered Bank at an interest rate of around 7%, as against its current average borrowing cost of 12.5% in the domestic market.
The 7-year loan is being raised at a rate of Libor plus 500 bps. The loan will be used for one of the integrated township projects of DLF. The realty firm is developing around half-a-dozen townships, but it could not be immediately ascertained which project this fund will be deployed.
However, the entire gamut is not confirmed till now as none of the news has been come up. The loan will be through the External Commercial Borrowings (ECB) route. Current central bank rules permit such overseas loans to be raised only for integrated township projects. The Reserve Bank of India (RBI) had permitted real estate companies to raise funds through the ECB window for integrated townships late last year to boost activity in the housing sector in the light of a serious liquidity crunch at home.
But the seizure in the international credit market in the aftermath of the collapse of US investment bank Lehman Brothers last September meant overseas markets were not available for fund raising.DLF, which had net debt of Rs14,000 crore at the end of March, has been raising long-term loans in the domestic market to replace shorter duration debt. Since December last year, it has raised at least Rs3,000 crore of long-term debt from a clutch of state-run banks and insurance major LIC at an average borrowing cost of 14%.

Lodhi Era Arch is misused by locals at Delhi

noreply@blogger.com (Er L Goyal) — Tue, 30 Jun 2009 17:10:00 +0530

Short of fund with indian real estate developers

noreply@blogger.com (Er L Goyal) — Mon, 29 Jun 2009 12:54:00 +0530

Several private equity (PE) players, global and domestic, whose lock-in period in real estate investments are to end soon, are pressurising developers for an exit route. While some PE players are asking developers to go for an IPO at an SPV or a portfolio level, developers who are wary about going public are approaching other investors or even buying back stakes themselves.
Biren Parekh, Partner, (Real Estate), Ernst & Young, said, “Some developers delayed projects to get higher valuations in the booming market. Many PE players, especially at an SPV level, now want to exit and are asking developers for an exit route.” A fund manager with a US-based PE fund agreed, “While some developers delayed projects, time has been running out for us. Some clauses that formed the agreement allow us to persuade developers and ask them to give the returns agreed upon.”
India’s real estate sector witnessed fund inflows of more than $16.5 billion from PE players since 2007. While 2007 witnessed 86 real estate deals, this number stood at 78 in 2008 and just six this year. Kaustuv Roy, executive director, Cushman & Wakefield, said, “Some developers are negotiating with PE players as the former are wary of going public. The IPO would be a big risk. But PE players have their limitations and thus one may see some activity in the sector soon.”
A number of PE players are driving a lot of strategic and operational initiatives within their investee companies. They are reworking debt, relooking at marketing strategies and day-to-day management,” said industry tracker Anckur Srivastava.

New Projects launched in Delhi NCR

noreply@blogger.com (Er L Goyal) — Wed, 29 Apr 2009 13:06:00 +0530

Latest development in real estate market has arrived in Delhi NCR.

DLF limited, india's largest real estate player has launched DLF Capital greens at Shivaji marg Delhi at a very low prices of Rs 4500 per sft. It has various type of apartments belonging from 1200 to 1600 sft approx super built-up areas in 2, 3 & 4BHK accommodation.

Unitech has launched his projec at Sohna Road Gurgaon under the name of Unitech Uniworld City Phase-II at a BSP of Rs 2,990 per sft.

The dream home bargain

noreply@blogger.com (Er L Goyal) — Thu, 19 Mar 2009 10:46:00 +0530

Are you a person who always looks for the steal deal? Someone who judiciously budgets your expenses to get the best bet out of everything life can offer you? Well, then you probably must be putting in a lot of research on where you shop, when you shop and how you shop for it. Right from the precious antique furniture piece to the lovely second hand, still in mint condition Fiat you own, everything has been bought with a great deal of thought, calculations, research and background check.

Now you have decided to opt for your own house. As usual your mind is ticking about how to make this one the steal deal of a lifetime. Well, we got news for you.
Have you ever considered a home auction that is periodically conducted by several banks? You actually can get a house which is lesser by nearly 20% of the current market value. Let us help you get started on some research for you to build the plan for your steal.

Topics

How does it work
Why it could be a steal
The market for auctioned properties
The emotional side of it
How does it work

The SARFAESI Act (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (54) of 2002), empowers the banks and financial institutions with the right to recover the mortgaged property in case of loan defaults, without the intervention of the court. This means the lenders can take immediate action and bring into effect the take over of the property in question quickly. Though it seems to be at the expense of the home loan defaulter, who is not examined keenly for reasons behind the defaults, nevertheless it appears to be a good opportunity for people to buy a property for a very reasonable amount of money.

Why it could be a steal

Once the lender takes control of the property, an independent valuation is conducted with the help of an independent chartered surveyor who fixes two values for the property. One is the market value of what the property is actually worth and another is termed as the distress value, which is around 15-20% lower than the market value. Due to the circumstances under which the auction is conducted, the property is almost always quoted with the distress value for the minimum bidding price at the auction. At the auction of course the prices can go up according to the bids and the location of the property. This gives the prospective new buyer an opportunity to win an auction for a very good deal as opposed to buying a property at the existing market value.

The market for auctioned properties

It is still a very unorganized market, which is just beginning to open up as a venue for a prospective home buyer. More often than not it is currently more possibly a property investor's market rather than an end user market. Also, the proportion of commercial properties auctioned could be much higher compared to the residential properties auctioned.

Listed below are some pointers to guide you on the process and background check:

A. Scrutinize property sections of newspapers

Many nationalized banks periodically advertise in the popular dailies regarding auction dates, venue and the location of properties to be put up for sale.

B. E-auction is also an option

Some banks do announce it by the way of e-auctions, as it is a faster, more transparent medium to choose the highest bidder. It reaches out to a more wider target audience and it helps the banks sell these properties at an effective price, which will help them recover the costs incurred through the loan more efficiently.

C. Secure legal aspects

As a prospective bidder you will be allowed to check the property you are planning to bid beforehand, once a caution fee has been collected from you for participating in the auction. Do make arrangements for a legal counsel to accompany you for this visit and help you with all the legal aspects of the transaction. Though you are making a business transaction with the banks, which by itself means you will receive a legally safe and registered property, you still need to do your share of the homework.

With the help of your legal counsel, investigate the title of the documents and do your research with the registry for a track record of the past 30 years of the property to understand who were its past owners, how many hands it changed and whether there was any legal tangle in the past that needs to sorted out before your make your winning bid. Verify all municipal records, tax records, whether the current owner has sole ownership and if it can be transfered to you in accordance with the rules specified in the Transfer of Property Act.

D. Be prepared for additional costs

The properties auctioned are disposed in the state they were first taken over by the banks. Hence, there might be some costs like outstanding payments due in terms of house tax, electricity, repairs, renovation etc. that need to be incurred once you purchase the property. Factor in all these aspects when you make the bid.

The emotional side of it

When one looks at it from the perspective of an auction for the homes of defaulters, one does feel a wave of emotion about the unconventional route to buy a home. One may wonder about the loss of one becoming the gain of another. However, you need to treat it as nothing more than a sale transaction because you do not have to be affected over somebody else's mismanagement of finances. Moreover, not all houses are given up for auction by home owners unable to pay the loan, it could be a situation where the individual giving up the house to the bank considers it as a fixed asset that could be liquidated in an hour of need. The excess funds from selling the house if any, would go to the previous house owner, who gave it up to the bank. Moreover, all sale transactions happen through the bank, so you need not have worries over the technical aspects of the sale. However you need to get your routine checks in place to see that you derive the benefits that ideally accompany such a steal deal.

Source- Bank Bazaar

Indian real estate hope to come back on track after FM assurance for cheaper loans

noreply@blogger.com (Er L Goyal) — Fri, 14 Nov 2008 16:18:00 +0530

Today Indian Finance minister P Chidambaram assured real estate developers that government will impress upon banks to accelerate lending to realty, which is facing one of the worst slowdown in the recent times. The step is a result of meeting held with FM and the delegation of builders under the Confederation of Real Estate developers' Association of India (Credai), to complain against banks' reluctance to disburse loans to the real estate companies.
As per FM P Chidambaram, government will not only help the Indian real estate sector in terms of providing liquidity but will also work to reduce the present lending interest rates.
Due to rise in interest rates which has been increased from 8% to approx 12%, the Indian real estate sector has affected very much and it was facing a adverse demand crunch. As per RBI & government, the rise in interest rates were the effect of speeding realty rates which has creates a bubble thinking between lenders & investors. To keep the better control, RBI has increased the interest rates, tightened the provisioning norms and made loans costlier & tougher to real estate sector.
As a result in hike of interest rates, EMI and tenure of loans has increased which in turns reduce the demand of real estate. At present as the global economy has weakened, the Indian FM has assured the sector player that government will relook the norms and will increase the liquidity in real estate sector as well as will bring down the interest rates on lending.

The other relevant details can be grasped from Times of India, Financial Express, Indian Parliament news etc.

Real estate industry facing the credit crunch & liquidity

noreply@blogger.com (Er L Goyal) — Fri, 24 Oct 2008 13:42:00 +0530

By now, everyone knows that the financial crisis in the United States has hurt the sentiments of the global economy. Some economies have been affected deeply, while others are managing to cope with its effects. The real estate sector has been suffering from the affects of the liquidity crunch that is being faced by most of the industries in India. The realty industry had already been reeling under dropping sales, high interest rates and the drying up of private equity sources when it came face to face with the credit crunch.

Many of the developers seem to be in troubled waters, some to the extent of delaying the launch of their projects. But some of the major players are simply trying to make the most of the situation by completing their pending projects in order to deliver the product in the stipulated time period to their customers and keeping them happy even in times of trouble.

The more habitation takes place, the sales of the project will only increase and thirdly, this will bring in the required money for the developers, which they are all in need of. As far as launching new projects is concerned, most of the developers are not launching their projects at present. The developer who will complete the project on time will have the upper hand in terms of customer loyalty. The pinch and crunch in the market has definitely insulated in the industry and delayed the launching of many projects.

In current industry, the most effect is on the builders who has expanded and acquired many land banks & projects. While the major developers are probably not ready to admit the deep waters they are in, Anshuman Magazine, Managing Director of CBRE says, "Right now, surprisingly, projects are still being announced, but in the larger context developers would certainly think before launching anything in this kind of a market. Several would have postponed but, yet we are seeing launches even in so much gloom and doom across the country." The fact is that today developers are launching their projects with the expectation that they will not get the same as they used to get a year back. Because till then it was possible that in two days developers managed to sell 20s-30 % of the project. But today projects are being launched with an expectation of selling the projects within the next two-three years.

Delivery of the residential project depends on important factors such as scale of the project, location, reach and financial position of the developer. The real estate sector has been severely hit by the domestic credit squeeze and the global financial crisis. Due to diminishing sales and liquidity crunch, developers are under constant pressure. Developers might either slow down the construction or reduce property prices to catalyse demand.