Looking at the cumulative real estate demand, the NCR will have a requirement of 10.2 lakh housing units (commercial capital Mumbai requires 16.4 lakh), 249 lakh sq ft office space and 6.6 lakh sq ft retail by 2013. In the NCR, Gurgaon leads the pack in the demand in residential, office, retail, and hospitality sectors. Forthcoming world-class projects, proximity and well connectivity to Delhi are a few factors driving these figures.
Diligent efforts by Huda. Orris Infrastructure has joined hands with realty giant DLF to launch Commercial Project on 50 acres of land in Sectors 88 and 89 of New Gurgaon. Under a joint venture, 5 million sq ft will be developed for commercial activities.
Read more: The Times of India
Drivers of Delhi- NCR’s Realty Growth
With the Master Plan 2021 focused on making the Capital a global metropolis, real estate in Delhi- NCR will receive an addition push for accelerated growth. The Capital is seeing the fast progress of infrastructure projects, increasing prominence of satellite towns and the emergence of new business districts. The Master Plan 2021 aims at making Delhi “a global metropolis and a world class city” and the Private Public Partnership (PPP) model is being actively propagated by the government to achieve this end. The Delhi Master Plan 2021 entrusts the DDA with large-scale acquisition and development of land, and the agency plans to construct 65,000 houses for the urban poor in the next four years.
From Mail Today
Indian economy strong, will continue to attract investments
Brushing aside the concerns over impact of the proposed changes tax laws, Commerce and Industry Minister Anand Sharma said Indian economy is strong and exuded confidence that foreign investments will continue to flow into the country. “Investment and taxation are two separate issues”, he said, when asked whether the introduction of General Anti Avoidance Rules (GAAR) will hurt foreign investments. Sharma, while recalling the initiatives taken by the government to attract FDI, said, “some of the initiatives which are under implementation are projects like Delhi Mumbai Industrial Corridor and National Manufacturing Investment Zones.
Buying your dream home in 2012
The year 2011 witnessed a high interest rate scenario, shrinking profit margins and soaring input costs for property developers and customers’ dwindled due to economic slowdown. Most developers had to put their expansion plans on hold, and projects faced a setback due to the slow sales.
Read more: The Hindu Business Line
Realty firms spread wings
Real estate companies are looking beyond brick and mortar. Signaling a new phase of diversification, developers are venturing into film production, Bollywood music, TV documentaries and even the food business.
Gandhi to Hitler, a movie released last year, was an Amrapali Group production. Although the film, starring Neha Dhupia and Raghubir Yadav, was not quite a box office success, real estate company Amrapali is producing another movie, I don’t love you, this year. “Movies are a medium through which we can reach common people, which is otherwise difficult for a real estate player”, said Anil Kumar Sharma, chairman of the Group.Read more: Business Standard
Homes made to fit
Pictures of fully furnished homes with eyeball- grabbing interiors are now a common feature of the brochures of most developers. But the looks may not always suit the tastes and requirements of buyers. Developers therefore have floated the idea of customized homes, where buyers can design their nests according to their specific requirements. It is difficult for buyers to run after people to make their homes livable and to tide over this problem the demand for customized homes has gone up,” explains Sanjeev Varshney, VP, Sales & Marketing, Gaursons India. “Buyers can change the look and feel of the interiors of their dream homes. It saves time for them and is cost effective as developers can get these things done at a relatively lower cost.” Home buyers in the mid and affordable segments are also demanding customization of interiors and houses that come fully furnished according to their requirements. Bharat City in Ghaziabad, for instance, is offering buyers the option customizing the interiors of their homes. Ashiyana Homes, too, is holding out this carrot to retirees. The level of customization varies according to the requirements of the buyers. Says Anil Kumar Sharma, CMD, Amrapali Group, “The demand is balanced — it is coming from buyers of high-end villas, mid-segment homes and affordable apartments. The neo-modern specifications vary according to the area and the prices.”
From Mail Today
Where is RBI’s focus?
In the cacophony of voices from the private sector and the pressures of politics, the Reserve Bank of India (RBI) seems to have forgotten that there is more to its annual monetary and credit policy than a decision to cut or not to cut policy rates. More than anyone else, RBI knows and has quantified the incipient banking stress. In its Financial Stability Report, 2011, it detailed out the extent, spread and trajectory of the incipient banking crisis. By all indications, it is only a notch away from alarming. First, rising non-performing assets (NPAs). Second, low and falling coverage and third, bleak outlook. Indeed, the latest estimates of Crisil forecast the amount of loans to be restructured in 2012-13 to cross Rs.2 trillion. These will be concentrated in sectors such as power, aviation, construction, steel, textiles and telecom infrastructure.
Read more: Mint
Impact fee as high as building cost!
Just two of the 15 lakh illegal buildings across cities of Gujarat have been legalized under the new impact fee norms in the past two months. There was much hype around the Gujarat Regularization of Unauthorized Development Act (GRUDA) when the state government on February 20 notified it, but not much has happened since. This says a lot about the scheme in an election year.
Read more: The Times of India (Ahmedabad edition)
How to save tax while selling a house
Timing is critical in finance, especially if you want to make a profit. Of course, you need to pick a good time to take advantage of the appreciation in value, but it’s equally important to keep an eye on the calendar to avoid paying a hefty amount as tax. It was a lesson learnt well by Mumbai-based Benny Abraham when he sold his house in 2011 within two years of purchasing it. “The property was fetching me nearly 60 percent in profits on the initial investment, so when I got an offer to sell it, I immediately agreed,” says Abraham, a brand consultant. Unfortunately, the 50-year-old had no clue about the tax implication of his hasty decision. Not only did he have to pay a substantial amount as tax on the profit, he also had to shell out the tax exemptions that he was availing of on the home loan. “Such capital gain exemption is reversed and the amount taxed as capital gain if the new property is sold within three years of the date of purchase/construction. This profit will be considered a short-term gain and taxed at the normal slab rates, not the 20 percent beneficial rate,” says Sonu Iyer, tax partner, Ernst & Young.
Read more: The Economic Times
What housing? India’s realty sector data is an opaque house
The other day, I was reading a blog entry about housing prices and interest rates on the website of The Economist magazine. The data on which the blog was based included a long (20+ years) history of housing prices in the UK and the US. In the US, for example, the house price index with a base of 100 in 1988 had risen to a peak of about 320 in 2006 and is now down to about 220. In the UK, a similar index started at 100 in 1995, hit about 370 in 2007 but is down only to 320 yet. The post went on to examine why US housing prices have crashed so much more than the UK.
In India, no matter how much you want to, you cannot do any analysis like this because the data does not exist. Despite the centrality of real estate prices in the economy, as well as in the lives of people, these are an almost completely opaque part of the Indian economy. This is all the more galling because with financial savings less developed than the western countries, real estate (along with gold) is a much bigger part of people’s savings.
Read more: Hindustan Times
Realtors wary of commercial space
Since 2008, most real-estate developers in the listed space have scaled down their exposure to the commercial property segment. Instead, they have turned their attention to residential development sale of plots too. Even if they did venture into commercial projects, quite a few preferred to sell the property than hold them as assets and lease them. In the last one year, for instance, DLF’s rental business hardly added any fresh-leased assets and, in fact, scaled it down a bit. A look at the demand-supply scenario suggests that poor absorption of space is one reason. A report by consultant Jones Lang Lasalle states that 24 percent of the office space that was built in 2011 in the top seven cities, remained vacant. In a booming economy, all sectors — IT, financial services and manufacturing — take up more realty space. The first two are the key drivers of volumes, together accounting for over 60 percent of leased volumes in the last five years. But there has been a dip in space occupied by these sectors in the last one year, according to data by Knight Frank India. Quite a few IT companies have used the price slump to set up their own offices in SEZs or outside. In the retail space too, close to a third of the projects completed in 2011 remained vacant. Sluggish demand scenario means pressure on price.
Read more: The Hindu Business Line
A smart move to tap the young home buyer
A concierge, a doctor, private tutor for your children and a holiday home for your pet… These will be some of the services available at the click of a button in smart cities. Smart cities come with a range of technologies and services integrated in the project and represent the roadmap to future in real estate sector. And developers are betting their last penny on such townships. But the maintenance of these townships is a cause of concern. It is here that ‘smart cities’ come into play. In the last couple of months, there have been at least three major projects, which have seen IT giants teaming up with developers to build smart homes. These include the IBM-Wave Infratech partnership and the Mantri-Cisco tie up. Also Sobha Developer has introduced the Sobha Habitech project in the IT hub of Bangalore, Whitefield, which is also a smart city concept.
From The Hindu Business Line
We are committed to timely delivery
Prashant Tiwari, managing director of the Prateek Group, shares the success mantra behind his company’s rapid rise in the NCR realty market, edited excerpts:
Prateek Group has emerged as a prominent developer in Noida. What are the factors responsible for this success story?
When I started this company in 2005, I wanted the Prateek Group to be the frontrunner in providing quality homes. You need to understand that developing homes is a tedious task and one needs to be dedicated to Buying a house is one of biggest investments that a person has to make and there are a lot of emotions attached to it. So, from the beginning, our knowledge, quality construction, technology, timely delivery and stress on customer satisfaction has helped us grow to this extent in a short time.
Read more: Mail Today
Investors unlikely to give up on India over GAAR: Tarun Kataria, Religare Capital Markets
In a large and raucous democracy like ours, sometimes it becomes hard to execute progressive policies and offer investors an India which is an attractive investment destination, says Tarun Kataria, chief executive officer – India, Religare Capital Markets. But he is sanguine that issues like GAAR in itself will not lead to an abandonment of plans to invest in a large, emerging market such as India with a 6% GDP growth. Speaking to ET, he says India is too large an economy to ignore. Excerpts:
Is the investment interest slowing down due to slow demand?
By investment interest, if you mean domestic capex spending then no, it is not slowing down due to slow demand. Consumption demand continues to be robust as we see from what the FMCG companies are reporting. Rather investment is slowing down due to uncertainty about the direction of the macro economy, uncertainty about policy direction, uncertainty about reforms and of course high interest rates which makes investment less attractive.
If by investment interest you mean interest from FIIs and FDIs then there remains a cautious interest in India. We have seen interest from Chinese and Southeast Asia countries looking to make mid-sized investments in India. Our offices in Hong Kong, Singapore and Jakarta are now allowing us to participate and advise on these inbound flows.
Delhi NCR News
Delhi records 18 percent rise in GDP
There has been an over 18 percent increase in the gross domestic product of Delhi at current prices for the year 2011-2012 in comparison to the previous fiscal. The GDP at current prices for 2011-2012 has been estimated at Rs 3.13 lakh crore, as per a Delhi government report released Friday by chief minister Sheila Dikshit. The share of service sector in GSDP of Delhi was about 82 percent followed by secondary sector at 17 percent and primary sector at 0.87 percent. The primary sector comprises agriculture and allied services while secondary sector consists of construction and manufacturing sectors. Dikshit said the city was developing as a major centre of service sector including IT-enabled ser vices leaving behind neighboring cities like Noida and Gurgaon.
Read more: The Asian Age
West Delhi to be a vital clog in the Capital’s growth story
In Delhi, if South is seen as a rich man’s abode, North an industrial hub, East a residential mainstay and Centre the retailer’s paradise, West Delhi has them all. “West Delhi will be the centre of industrial and infrastructural development activities in the next 10 years or so,” says Sanjeev Ahuja, executive director of the Delhi State Industrial and Infrastructure Development Corporation (DSIIDC). Going by the development plans slated for the national capital in the next decade, most of the industrial growth and development will be happening in West Delhi. In the Delhi Development Authority’s Master Plan for 2021 from the 60,000 hectares – slated for the development of new sub-cities in Delhi – about 40,000 hectares lie in West Delhi. “DSIIDC is developing a 77.50 acre Knowledge Based Industry (KBI) park at Baprola in West Delhi,” says Ahuja. “At Rani Khera, opposite Mundka, we are developing a multi-level manufacturing hub in 147 acre worth Rs 3,098 crore.” “We have been informally approached by Nasscom, Infosys and Delhi-Mumbai Industrial Corridor (DMIC) to set-up offices in these parks,” says Ahuja.
Gurgaon rapid Metro chugs on fast track to completion
With the trial run scheduled in the next few months for the first phase, Gurgaon’s rapid Metro project has come closer to becoming reality. The IL& FS Rail on Thursday bid for the second and third phase of the rapid metro, which will be constructed on the Golf Course Road and Udyog Vihar lines. Officials said phase II of the project will add North extension in Udyog Vihar and South extension along the Golf Course Road, each of seven km approximately, to its network. The total area covered by Phase I and II will be around 20 km, covering major residential and commercial areas of both new and old Gurgaon. The total project cost for Phase II will be approximately Rs 4,000 crore, while the rapid metro in phase I is expected to cost Rs 1,088 crore.
Read more: Mail Today