In NCR and Dwarka in Delhi, the prices have risen 64 percent in the last three years, and that in suburbs of Mumbai like Mira Road is around 50 percent, according to 99acres.com. Gurgaon, Noida and Ghaziabad witnessed 50 percent, 40 percent and 37 percent appreciation in the last three years. “Real estate in metros is always attractive to buyers because of high returns,” said Vineet Singh, business head, 99acres.com. Mumbai and New Delhi residential real estate prices have stagnated in the past year. “Prices in metros will stagnate for 12-18 months. So if there is no price correction, there would be time correction,” said Pankaj Kapoor, MD, Liases Foras, a real estate consultancy.
Read more: Hindustan Times
Realty in the grip of slowdown, However, property rates show appreciation by almost 40-45% across Delhi and NCR
Don’t thank your service provider alone if your mobile phone isn’t flooded with SMSes announcing new residential projects launches in the NCR these days. With a piled up inventory from the past and long delays in delivering projects, the real estate sector is going slow on new launches this year. However, that — sadly for the consumers — has not meant a drop in the property prices as the rates have shown appreciation by almost 40-45 percent across Delhi and NCR in the last one year.
As per the Confederation of Real Estate Developers Authority of India (CREDAI), the apex body for private real estate developers, the number of building plans sanctioned over the past 10-15 months has drastically come down. Delay of realty projects, it says, is to be blamed on multi clearances and approvals numbering over 40 by various departments of the government.
“There are hardly any new launches that have taken place in the last 10 months. And, in the near future also, the scenario does not seem very favorable. Right now, it is only in states like Bihar, Gujarat and Andhra Pradesh, where real estate development is taking place in full swing. The government policies in these states are real estate developer friendly,” said Lalit Jain, President, credai.
Read more: Indian Realty News
Long-term outlook appears very positive
The construction industry plays an important role in the development of a country’s infrastructure, which is a key engine of economic growth. Its significance to the Indian economy can be gauged by its growing contribution to gross domestic product (GDP) – from 5.1 percent in 2001-02 to 7.9 percent in 2010-11. Over the next decade, India will continue to be among the fastest growing countries in terms of construction output. While globally, the construction market is expected to grow at 5.1 percent and 4.7 percent during 2010-15 and 2015-2020, respectively, in India it is expected to grow at 9.9 percent and 7.6 percent during the same periods. By 2020, India is expected to emerge as the world’s third largest construction market.
Read more: The Economic Times (Mumbai edition)
Realty jolt: Land costlier in Noida
Buying a house or land in Noida, Greater Noida and the Yamuna Expressway areas has become costlier. In a board meeting held on Wednesday, the three development authorities announced a substantial hike in the allotment price across all categories of land. The hike comes into effect from later this week soon after the authorities publish a formal notice. The Greater Noida and the Yamuna Expressway authorities have also increased the compensation rate to be offered to farmers for acquisition by 10.4 percent.
While in Noida, the allotment rates of group housing, residential and institutional properties have been hiked by 10.41 percent, commercial and industrial land rates have been hiked by 15 percent and 7.5 percent, respectively. In Greater Noida, the allotment rate for land across all categories has been uniformly hiked by 10.4 percent. The Yamuna Expressway area has seen the steepest hike in allotment rates as residential properties have gone up by about 40 percent, while, the allotment rate for industrial and institutional properties have been hiked by 28 to 42 percent. In the institutional category for IT/ITES properties, buyers will have to shell out Rs 29,515 per sqm now. For plots falling in the Phase II and III areas along the Noida-Greater Noida Expressway, the allotment rates have been fixed at Rs 10,660 per sqm.
Land acquisition for wooing foreign investments
In an effort to woo investments in Tamil Nadu for the state to achieve its Vision 2023 objectives, FICCI (Federation of Indian Chambers of Commerce and Industry) and consultant Bain & Co., have suggested that the government clears processes and procedures relating to land acquisition. Other issues that need streamlining includes, construction permits and single window clearance. Land acquisition in Tamil Nadu is governed by the Land acquisition for Industrial Purposes Act, 1997. The report suggests methods of compensation and further computerization of available land banks. “Tamil Nadu has not had large scale protests about land acquisition but the issue of land is always controversial. The government should have a clearly framed policy of when it would intervene to acquire land for industry. Clauses like public purpose in land acquisition need to be clearly defined to remove ambiguity,” adds the report.
Read more: The Times of India
China, India should work together in IT, production
A visiting Chinese executive expressed hope that India and China would work together to explore their strengths in IT and manufacturing sectors respectively. Li Siling, deputy director, China Executive Leadership Academy, was in the city on Wednesday to speak at a seminar on ‘Doing Business with China’, organized by the Confederation of Indian Industry (CII). “India and China have their strengths in IT and manufacturing respectively. If they work together, they will not only serve each other but the whole world. India is known as world’s back office because of the great performance of the IT companies. Both countries need to work together, and for that to happen, initiatives like easy visa processing, more business ties can help,” said Siling.Siling further said that the telecom sector in India is growing and it has the potential for expand further. “Another sector for Chinese companies to explore in India is infrastructure. A few Chinese companies are already engaged in setting up heavy thermal projects in the country. If governments’ of both countries take up trade more seriously, both countries can work together for prosperity,” he said.
Read more: The Times of India
Rs 222 crore 4-lane road to link Delhi, Haryana
For smooth and faster traffic flow, the Ministry of Road Transport and Highway has decided to construct four-lane roads from Dwarka in Delhi to Dhansa-Badli-Jhajjar (Haryana). The total length of the lane would be 25 kms and the project cost is estimated at around Rs 222 crore. This will be a direct route to Indira Gandhi International Airport for traffic coming from Jhajjar, Badli and Najafgarh. The road will be constructed adjacent to single-lane road along bank of drain number 8 (Najafgarh drain) to join Jhajjar to Dwarka and IGI airport. This road will serve as a bypass and there will be great relief from regular traffic jams in Najafgarh.
Read more: The Pioneer
Ludhiana Metro project poses fresh challenge for fund-starved Punjab govt
The much touted Ludhiana Metro project, which the SAD-BJP government is brandishing as a feather in their cap, has posed fresh challenges for the fund-starved state government. Nearly 20 percent of the cost of the project has to be funded by the state, as the Centre pools in an equal share and the rest will be funded by the bidder who gets prestigious project.
Read more: The Times of India
Delhi airport fee hike to push travel up 5-7 percent: IATA chief
The Director General of International Air Transport Association, Tony Tyler, has said that the 346 percent increase in rates at Delhi Airport will add $400 million to airline cost. Addressing a seminar in Delhi, Tyler said the impact on travel would be 5-7 percent. He also called for allowing foreign airlines to acquire stake in domestic airline. “If critical problems” he said then foreign airlines will not line up to invest in airlines in India.
Read more: The Hindu Business Line
Jubilant FoodWorks to open 100 Dunkin’ Donuts outlets in India in 5 years
Jubilant FoodWorks Ltd that operates Dominos Pizza chain in India today said it plans to open 100 Dunkin’ Donuts outlets in India in the next five years. Earlier in May this year, leading baked food and coffee chain of US, Dunkin’ Donuts chose Jubilant FoodWorks Ltd (JFL), which runs restaurant chain Dominos Pizza in India, as its master franchisee.
“Having initiated the launch of Dunkin’ Donuts in India JFL will scale up this brand in a systematic manner over a period of time…over a five year time horizon JFL plans to launch 80-100 Dunkin’ Donuts restaurants in India,” JFL said in a statement. The company currently has three Dunkin’ Donuts restaurants in the country and plans to have 10 restaurants by the end of this fiscal, it added.
Read more: The Economic Times
Jumeirah hotels group in talks with developers to enter India
Luxury hotels major Jumeirah Group is in talks with a number of potential partners to enter India, according to a media report. City-based Jumeirah Group is the operator of the iconic Burj Al-Arab hotel. Discussions are taking place with a number of potential partners for developing projects, including developers in India, the report said. These partners are interested in bringing Jumeirah to Delhi, Mumbai and other key destinations, Jumeirah Group Vice- President (Corporate Communications) Piers Schreiber was quoted as saying by daily ‘Arabian Business’.