Prices of luxury properties in key Indian cities including Mumbai, the national capital region (NCR) and Bangalore have appreciated 10-fold in the past decade, according to a report released on Monday by real estate consultant Jones Lang LaSalle.
Luxury projects yield much higher returns to developers than projects geared towards the affordable and mid-income segments, the report said.
“Because of the tendency of ultra-luxury projects to garner extremely good pre-sale volumes, their developers are generally able to secure significant fund flows to capitalize the completion of their projects,” said Santhosh Kumar, chief executive, operations, Jones Lang LaSalle India. “While it is equally true that the input costs for luxury housing are also much higher, the developer stands to benefit from the increased visibility of his brand among highly affluent, top-end clients.”
The demand for housing in the luxury segment often outpaces the supply in cities like Delhi, Gurgaon, Mumbai and Bangalore.
“The ultra-luxury housing segment is comparatively recession-proof. As most of the buyers in this category include successful entrepreneurs and business tycoons, their financial appetite is not limited to or governed by the economic considerations,” Kumar said.
“A significant percentage of buyers for such projects is able to self-finance their investments through their saved earnings…the quantum of impact that luxury projects face in times of economic uncertainty is significantly lower when compared to residential projects aimed at other categories,” Kumar added.
Read more: Mint
NCR expansion to spur infra investments in Haryana
The approval by the NCR (National Capital Region) Planning Board to include Mahendragarh and Bhiwani districts of Haryana in NCR is likely to help entrepreneurs with low-cost investments. The escalating land costs dissuaded quite a few from investing in NCR as land was scarce and cost unviable.
The proposal for inclusion of Jind and Karnal in NCR has also been agreed to. This was announced by the Urban Development Minister Kamal Nath at the 33rd meeting of Board in New Delhi on Monday.
Talking to Business Standard, Tarun Bajaj, managing director, HSIIDC (Haryana State Infrastructure and Industrial Development Corporation) said this would mobilise substantial investment in the two districts in the form of infrastructure porjects.
“The loans will be provided by the Board and the state”. He added some area had been picked by the HSIIDC for industrial model townships.
According Dilip Sharma, the Regional Director of PHDCCI Chandigarh, the expaost of lann high csion of NCR would ease the pressure on the existing infrastructure.
Read more: Business Standard
Bigger NCR to give more options to homebuyers
It’s advantage homebuyers as three more Haryana districts — Mahendergarh and Bhiwani — join the National Capital Region (NCR), say real estate experts. Rising property prices in Gurgaon may lead to the Millennium City losing the edge of affordable housing over Delhi. But the expansion of NCR will ensure more options for those looking for cheaper residential property, they said. The NCR Planning Board, a body under the Union ministry of urban development, on Monday cleared inclusion of the two districts into the NCR. Experts believe that the inclusion of these areas into the region will provide a boost to development there. “Once Gurgaon loses the edge of affordability over Delhi, neither home buyers nor corporates will hesitate to move to other NCR areas,” said Anckur Srivastava, chairman, GenReal property advisors.
Read more: Hindustan Times
Adding more districts in NCR to increase land supply: CREDAI
Hailing the inclusion of three more districts in the National Capital Region, realtors’ apex body CREDAI today said the move would lead to additional supply of land for development. It cautioned however that the government prepare a master plan for development of the region or else builders will start accumulating land, leading to rise in prices. The property consultant said there would not be any immediate impact on the property market of NCR. Yesterday, the National Capital Region Planning Board (NCRPB) included Bhiwani and Mahendragarh districts of Haryana and Bharatpur in Rajasthan in NCR. “It is a futuristic decision with vast ramifications for NCR region. Reports foresee almost 11 percent increase in urbanisation of this area by 2021 and to reduce the pressure on Delhi, there was urgent need to expand the area,” CREDAI NCR President Anil Sharma said.
Read more: The Economic Times
No property papers? What sellers & buyers should do
When you lose such important documents, the first step is to file a police complaint. Says Vinod Sampat, Mumbaibased real estate lawyer and president of the Cooperative Housing Societies Residents and Users Association: “The owner should file an FIR stating that the documents have been lost, misplaced or stolen, and get a copy of the complaint. If the house is mortgaged and the documents have been misplaced by the bank, the FIR will still have to be filed by you.” Buyers should ask for a copy of the FIR from the seller.
The owner will also have to place an advertisement, stating the loss of the documents, in an English daily newspaper, as well as a regional/vernacular one. “Even the buyer can place such an advertisement and, through it, call for any claimant to the property within 15 days of the advertisement being printed,” says Ravi Goenka, a high court advocate at Goenka Law Associates.
Read more: The Economic Times
Realty rush back in the Capital
The realty sector in Delhi, which has rested on the fast appreciating prices of marquee residential units built years ago or old bungalows converted into multi-storied houses, is emerging as a major real estate destination again. Not only are developers announcing a slew of projects but precious chunks of vacant land, a scarce commodity in the city, are in the process of being unlocked, too.
Godrej Properties has announced a luxury residential project in Okhla, while Parsvnath Developers has plans of building a retail-cum-office complex at Kasturba Gandhi Marg. Another developer, M2K is coming up with a residential project near Model Town and DLF is constructing King’s Court at Greater Kailash II (GK-II) in the city.
Read more: Business Standard
‘Green homes offer faster appreciation’
Green homes are catching up in India. But are such homes a profitable property investment than regular homes? Do they fetch better returns? are some of the questions which crop up in a consumer’s mind before investing in such homes. Abhay Kumar, CMD, Griha Pravesh Buildteck Pvt Ltd says, “In India the green building revolution has started. To see more construction of such homes, the demand should pressurize the builder community and the government to make it mandatory.” He took up consumer queries on MagicBricks.com’s Chat session – GuruTalk. The topic of the discussion was ‘Green Buildings V/s Regular buildings – which is better to invest in?’
Kumar says, “In due course of time, Green Buildings will have their say in the market and will fetch better returns.
The Green Buildings have low maintenance, better air circulation, better landscape gardens, better quality of water provided, more water for gardening and washing vehicles at no extra cost add to the value, thus appreciating faster than regular homes.
However, he says at the time of purchase one cannot get any direct monetary benefit but in two or three years one can witness the difference.
Read more: CREDAI
Delhi hotels may be allowed to build and sell flats to raise funds
The government is planning to allow hotels to build and sell apartments in their complexes in Delhi, a move that may benefit several hotels in the city except those that fall within the restricted Lutyens’ Bungalow Zone. Hotels will be allowed to use the 20 percent of the total built-up space, where they are permitted to set up a commercial and retail wing, to develop apartments, a senior official at the Delhi Development Authority said, on the condition of anonymity. “The government’s move will significantly reduce the initial capital requirement for hotel projects. Hotel developers will be able to utilise the funds available through residential pre-sales to offset the level of debt funding,” said Siddharth Thaker, managing partner at Prognosis Global Consulting. New and existing hotels will also benefit by way of improved ROIs and breakeven on initial capital investment will be shortened, he added. The permission to build and sell apartments could benefit several older hotels such as the Hyatt Regency, The Grand, Qutab Hotel, The Lodhi and The Leela Palace. However, the concession will not apply to the Taj Mahal, Shangri La, Le Meridien, The Oberoi, Taj Palace, ITC Maurya and Claridges, all of which are in the Lutyens’ Bungalow Zone.
Read more: The Economic Times
GIC, Temasek, Oman to invest $200 m in HDFC property fund
The Government of Singapore Investment (GIC), investment firm Temasek and Oman’s State General Reserve Fund have committed to invest $200 million in a real estate fund run by Indian mortgage lender HDFC, a source with direct knowledge of the matter told Reuters.
The investment is in a $500-million real estate private equity fund launched late last year by HDFC Property Fund, founded by Housing Development Finance (HDFC), the source said, speaking on condition of anonymity as the information is not public.
HDFC Property Fund declined to comment, GIC and Temasek did not respond to an email and State General Reserve Fund could not be contacted immediately.
HDFC Property Fund plans to announce the fund’s first close by the end of July or mid-August, the source said, adding that it expects to raise the remaining $300 million by end-December.
The seven-year fund, for overseas investors only, aims to generate annual returns of 23 or 24 percent and will invest in residential projects in Asia’s third-largest economy, the source said.
Read more: Reuters
Nine power plants may get nod today
The recent Cabinet decision on coal cost pass-through should enable quick clearance of at least half the 18 power projects to be considered on Wednesday by a sub-group of the Cabinet Committee on Investment (CCI).
These are projects with a total capacity of 8,890 Mw and include projects of Adani Power and Haldia Energy. Projects of GMR and Lanco are also to be taken up by the new Project Monitoring Group (PMG) set up by the CCI but these have to cross more hurdles, apart from non- availability of coal.
CCI, chaired by the Prime Minister, was formed to hasten clearances for projects above Rs 1,000 crore in size. It has since decided all projects are to be first brought before the PMG. Only those not cleared here would go to CCI.
Eight power projects the government wishes to hasten were examined by the PMG and a sub-group of the environment ministry on Tuesday; they need ecological clearance. The next slot of 18 selected by the power ministry for fast-tracking are coming up tomorrow before a separate sub-group, representing the coal ministry.
These projects have not taken off mainly because fuel supply agreements (FSAs) could not be signed with Coal India, the government’s near-monopoly producer, due to shortage of domestic coal. Absence of an FSA is the main hurdle with 15 of the 18 projects, though six also have land and rehabilitation problems.
Read more: Business Standard
India gets closer to setting up satellite navigation system with PSLV C-22 launch
On Monday night, the dark sky over Sriharikota turned magnificent bright orange as the Polar Satellite Launch Vehicle C-22 (PSLV C-22) roared into the sky.
It was a visual treat for those who witnessed the spectacular launch at the Satish Dhawan Space Centre about 90 km north of Chennai.
It was the first near midnight satellite launch by the Indian Space Research Organisation (ISRO). The huge contingent of the newspersons assembled on the terrace of the media centre continuously applauded as the rocket majestically towards the sky at 11.41 p.m..
The rocket was carrying the first of the satellites of the Indian Regional Navigation Satellite System (IRNSS). The system will provide terrestrial, aerial and marine navigation services and help in disaster and fleet management. It puts India in an elite class of nations having such a system.
About 20 minutes after its launch, the rocket precisely injected the satellite into its intended orbit.
Read more: Business Line