Delhi-NCR commands property appetite

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

Sales figures at a macro level are often misleading when it comes to the property market.Since the business of real estate is micromarket driven,the buying pattern also needs a careful study at the micro-level.For instance,in the last few years,the market of Delhi-NCR has been declared overheated;buyers reluctant and worse even,the region is losing its appetite for property as the primary investment instrument.However,fact of the matter is that Delhi-NCR still commands property appetite and it is only the choice of investment destination that is changing as the buyers here are becoming increasingly smart,in terms of their investment pattern and horizon.

As a matter of fact,sales patterns of some of the leading real estate companies in North India throws up an interesting trend.Most of the projects launched in the tier-II and III cities by these developers,shows that the response from the Delhi-NCR buyers has been much higher than the buyers’ demand in the given local market.

For example,when DLF recently launched its plotted scheme project in Garden City in Indore,out of the initial 200 plots on offer,180 plots were sold in the Delhi-NCR alone.Confirming this sales trend,Pramod Uniyal,business head,DLF Indore,says that the demand has been inordinately high in the NCR.The response in the NCR market to this product located in Indore is about 11 times that in the local market.So,while the appetite in the tier-II city is almost stagnant,that in NCR has been quite good.”It is not a trend in isolation but has been seen in many projects.While projects always do well in the markets they are located in,the demand is so high in Delhi-NCR that majority of projects are bought at the time of launch in this part of the world says Uniyal.

Read more: The Times of India

Gurgaon versus Noida: What’s the better option in Delhi-NCR

Home sales rose across most major markets in the country between January and March 2013 compared to last quarter of 2012, thanks to new project launches at attractive prices and the discount schemes on offer. Expectations of further rate cuts on home loans and the impending revival of the economy is likely to further fuel demand for new homes.

If you are planning to buy a house around Delhi, Noida and Gurgaon must be high up on your list. The satellite cities are the most sought after destinations when it comes to the National Capital Region.

Gurgaon

Often called the ‘Millennium City’, Gurgaon saw demand for new homes slowing for the third consecutive quarter, according to a Bank of America Merrill Lynch report. However, the slowdown in demand had no effect on prices, which rose by an average 4.5 per cent across projects over the three-month period, the report says.

Fewer project launches during the quarter, lower inventory and rising speculation among investors led to a strengthening of prices.

Read more: NDTV

Monorail boosts property values in Gurgaon

The upcoming monorail which will connect Gurgaon to Faridabad will not only benefit commuters but will end up impacting the real estate sector as well.

The trial runs for the monorail are over and the service is expected to start some time in April or May 2013.

The monorail will connect areas such as DLF 1, 2, 3, 4 and 5. It will also pass through residential areas of Sectors 24-28. With the advent of the same, the sale and rental values of multi-storey apartments on Golf Course and MG Road are expected to increase by almost 20 per cent.

“With just the announcement of monorail, the property values picked up by 15-20 per cent. The end-users are always willing to buy ready-to-move-in property,” says Ashish Gupta of Gurgaon Properties.

“Connectivity to other metro stations will definitely give a fillip to property values. The rental values in the area will increase by 20 per cent whereas, the sale prices will witness a growth of 40-50 per cent,” says Anil Rana from Landmark Properties.

Read more: Magic Bricks

New launches in Gurgaon witness higher demand than ready units

Gurgaon has always remained on the wish list of all real estate enthusiasts. Whether for end usage or investment, the locality has always offered a plethora of residential options. A recent trend that is now visible in Gurgaon is the increasing demand for new launches as compared to the ready to move in units.

The residential market in Gurgaon is clearly divided into to two segments today. Firstly, the new launches and secondly, the ready to move in or projects nearing completion. Ready to move in apartments are generally a preferred option for home buyers. However, Gurgaon is witnessing enhanced demand for newly launched projects. This demand is primarily driven by the investors.

Sanjay Sharma, director, Qubrex explains, “Buyer demand in Gurgaon is slowly getting inclined towards the newly launched projects. This trend reflects an ever growing investor interest in Gurgaon as they are required to pay just 10 per cent of the total cost as booking amount. On the other hand nearly 70 per cent of the total cost needs to be paid for a project that’s ready or nearing completion.”

Read more: Magic Bricks

Realty projects on a roll, despite slowdown

New project launches have picked up with developers focusing on premium and luxury housing which offers better returns

“Save lakhs by buying a pre-launch flat…excellent location, reputed builder, metro connectivity”… “Holi offer: Plot in just Rs 12 lakh before Holi, rate revising soon”… “Last chance to grab personal suites, pay 15 per cent now, no EMI till 18 months”… “Most awaited project launching at Rs 6,550 per sq ft, next rate Rs 7,550 after this week, book profit”. These are among the hundreds of promotional messages which have flooded the inbox of mobile phones over the past few months, more so since the beginning of 2013, after a longish lull. But even as developers are on a spree to launch residential projects, it may not mean the end of trouble for the sector.

While analysts are still crunching numbers on launches this year, estimates suggest the first three months saw record growth in new realty projects including from the big builders in investor-driven markets of Delhi and Mumbai.

There are 492 new residential projects on offer in Mumbai and surrounding areas, of which 122 are ready to move in, according to property listing website 99acres.com. In Delhi, there are 539 new projects, Bangalore 536, Chennai 387, Kolkata 212, Pune 331, Ahmedabad 124 and Hyderabad 352. Ready-to-move-in house numbers are low across cities at 19 in Delhi, 46 in Bangalore, 43 in Chennai, 7 in Kolkata, 23 in Pune, 11 in Ahmedabad and 36 in Hyderabad.

Read more: Business Standard

IT

Real Estate Speeds Up IT Adoption for Greater Process Efficiency

The rapid growth of the real estate and construction vertical in India is compelling companies in the sector to turn to IT-enabled services for greater process efficiency. Low IT penetration among Indian small and medium enterprises (SMEs) offers significant opportunities to IT solution vendors.

New analysis from Frost & Sullivan’s Enterprise IT Adoption in Indian Real Estate and Construction Vertical, finds that the market earned revenues of more than INR 219.3 crore in 2011 and estimates this to reach INR 1,152.1 crore in 2018.

“The entry of new-generation stakeholders with better understanding of the latest technology ensures the consistent adoption of IT solutions in enterprises,” said the Frost & Sullivan Information and Communication Technologies Analyst. “With the increasing influx of foreign direct investments, firms are also looking to improve transparency by using enterprise resource planning systems.”

Intense competition and shrinking bottom lines are forcing real estate organisations to generate real-time management reports and observe their businesses closely. Efficient project management is crucial for companies handling multiple city projects and hence, project estimation solutions that help manage high material wastage and increasing land prices are growing popular. However, while the Indian real estate and construction sector is fast-growing, it is also highly fragmented, unorganised and capital-intensive. The rising costs of raw materials have reduced the affordability of IT solutions.

Read more: Biztech2

Gurgaon

Gurgaon first to get buses equipped with CCTV cameras

FIFTY low-floor AC buses with CCTV cameras will start plying on the roads of Gurgaon later this month.

Yashendra Singh, General Manager, Haryana Roadways, said: “Gurgaon will be the first city in the country to have buses with CCTV cameras. We have given a tender to Tata Motors and asked for a fleet of 50 buses. We own about 275 public buses, but these new buses will be added to our transportation network as a security measure. We will soon be receiving 20 buses this month and 30 more will be rolled out in May. Haryana government directed us to ply such buses in earlier this year.”

The government took the decision to introduce buses with surveillance after the Delhi gangrape incident that took place aboard a bus in December 2012. This was implemented keeping in mind the safety and security of the commuters, a senior Haryana Roadways official said.

Debashish Roy, spokesperson of Tata Motors, said, “We have received a tender from the Haryana Roadways with specifications of having a camera and a recorder installed in these buses. We were asked to manufacture these buses and they should be rolled out soon.” He said it was a people-friendly initiative and should be adopted by other state transportation authorities.

Read more: Indian Express

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