Delhi: A new zone for NRI investment in Realty

Large number of Indian living abroad (NRI) are willing to return to their homeland (8-9%). Real estate market in India plays a key role for NRI population to invest in their homeland.  In 2012, if we go with market sources when it is observed that 40 percent of the queries related to Delhi NCR properties were from NRIs.

Along residential properties; NRI are also keen in investing into commercial property and guaranteed returns. Apart from the localities such as Gurgaon, Noida, Greater Noida, localities such as Noidaextension,Bhiwadi, Sohnaroad, Dwarka expressway, KMP expressway and Gurgaon Faridabad road offers new investment opportunities.

Since 2010, projects on Dwarka expressway had a price tag of approx. INR 2500 per sq ft. which in 2012 was appreciated to approx. 5000- 7000 per sqft for multi-story residential apartments.  Due to high demand an expected appreciation this market attracts investments from NRI. Other sectors along Dwarka expressway (108,109,106,110 sectors) where the construction is expected to be over in an years and a half. The expected appreciation would be 65 to 70% in next 3 to 5 years making it a lucrative offer for NRI as well Indian investors. (Read more: Money Control)

Gurgaon is a hot favorite among both domestic and NRI realty investors. Dwarka Expressway and Sohna Road have once again revived the image of Millennium City as the real estate investor’s market.  This was apparent from thelarge number of enquiries from visitors about these two hot emerging locations at the Mail Today Property Expo organized in association with the Supertech Group in Gurgaon. The expo received the participation of all the leading developers in the Delhi- NCR, such as Supertech with its Supervelle project, Orris Infrastructure, Raheja Group, Paras Buildtech, Jaypee Green, IREO and Falcon Realty — attracting a large number of buyers as well as investors. (Read more: Mail Today)

Ireo Uptown, located in Sector 66, Gurgaon, off of Golf Course Road Extension

Ireo Uptown, located in Sector 66, Gurgaon, off of Golf Course Road Extension

JLL Makes India Property Predictions for 2013

According to global real estate consulting firm Jones Lang LaSalle (JLL), India’s property markets closed 2012 with a few notes of positivity as the inflation was below the Reserve Bank of India’s (RBI’s) projected levels and the Index of Industrial Production (IIP) growth increased in the last two months of the year, giving new hopes for 2013. Overall, 2012 remained inactive, affecting all the major sectors in real estate.

Office space absorption remained lower compared with 2011. Meanwhile, retail faced challenges of quality supply, affecting the overall absorption.

The residential demand improved; however, developers continued to struggle with unsold inventories, yet expect moderation in inflation and strengthening policies.

Below are 13 interesting India property and market insights for 2013 from various Jones Lang LaSalle India analysts. Read about them

Property rates to appreciate every year in Dwarka Expressway

With its new projects, Dwarka Expressway Road is on its way to rapid construction. Market experts are expecting a healthy capital appreciation in the property values every year. Dwarka Expressway, a name given to the Northern Peripheral Road (NPR) and is a 150 m wide road that would connect Dwarka to NH8 at Kherki Daula, improving the connectivity to Delhi and Delhi Airport.

“We expect an appreciation of more than Rs 1,000 per sq ft every year after the Dwarka Expressway Road is ready,” says K. S. Chauhan, a local realtor from Gurgaon Realtors. Going by the data with MagicBricks.com, the average prices of residential property in Dwarka Expressway has increased by 55 per cent in one year. The average rates were at Rs 3,600 per sq ft in Oct- Dec’ 11 while it has reached to Rs 5,600 per sq ft in Oct-Dec’ 12.

“The Dwarka Expressway area of Gurgaon is an emerging destination for those who want to stay close to Delhi as well as the airport. Not only that, the area is in close proximity to the new diplomatic enclave, the second Chanakyapuri of Delhi, housing premier embassies,” says Naveen Raheja, chairman and MD of Raheja Developers.

The buyers in Dwarka Expressway consist of 100 per cent investors as the projects are still under-construction. “Dwarka Expressway will take at least 5 years to be developed and inhabited by end users, which is why real estate market of Dwarka Expressway has a wrath of investors right now,” says Manoj Das, a local realtor from Realty Partners.

Read more: Magicbricks

Infrastructure

Lenders want 100 percent land acquired before awarding highway projects

Long-term lenders like IIFCL and IDBI Bank are unlikely to fund road projects where land acquisition is incomplete, a move that could scuttle plans to award projects of 8,000 km this fiscal year. Lenders and builders have approached the finance ministry, road ministry and NHAI, insisting that road contracts should not be awarded without all clearances in place. “We are not taking up new projects unless 100 percent land acquisition is done. We are taking up the issue with NHAI,” IIFCL chairman SK Goel said. “We feel other lenders will follow suit,” he added. An IDBI Bank official said lenders have started avoiding road projects or have started thinking so after GMR terminated an agreement to build a 555-km highway in Gujarat and GVK threatened to pull out of a 330-km highway in Madhya Pradesh. Although the road ministry and NHAI are weighing various options including barring GMR from bidding for a few years, lenders and builders are insisting on all clearances before thinking of new projects.

National Highways Builders Federation director general M Murali said: “We want NHAI to make 100 percent right of way along with environmental, forest and wildlife clearances available before awarding projects. Projects shouldn’t be put up for bidding before achieving the same.” Highway builders wrote to NHAI chairman RP Singh on January 9 to consider the proposal. Feedback Ventures chairman Vinayak Chatterjee endorsed the suggestion: “The government should make it mandatory to have all necessary approvals in place before inviting bids. Developers moving out of esteemed projects have a negative impact. The government should obtain approvals first and then invite bidders.”

Read more:  The Financial Express 

Connaught Place facelift to be completed in four-five months

via

With the Connaught Place re-development project much behind schedule, New Delhi Municipal Council chairperson Archna Arora said her priority was to ensure completion of work in four to five months. Arora, who presented the 2013-14 Budget of the Council, said the work missed the December 31, 2012, deadline but the effort would be to complete it in four to five months.

Read more:  Hindustan Times | The Tribune 

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