GurgaonMilleniumCity

Gurgaon Real Estate Inspiring To others

2007-10-19T00:18:00.000-05:00

Gurgaon is booming commercial hubs on the outskirts of Delhi. According to sources in the Industries Department, an extensive survey of the area is already on and various sectors relating to information technology, garment manufacturing and tourism have been identified.

The initial survey of the area has been done via satellite, sources said. They added that the Industries Department, with help from the Revenue Department, will now conduct a baseline survey to detail areas to be earmarked for specific sectors.

The BPO (Business Process Outsourcing) is the other big-ticket item on the plan. Since multi-national companies are planning to make Lucknow their base, they are also looking for places to set up their call centres, said government officials.

Why Invetsment in Gurgaon...?

2007-10-04T03:23:00.000-05:00

Gurgaon is a old city which is newly developed by DLF, this means that the resources like food and water etc. are already tested and are in the state that they can be used for survival.

As it is newly developed in the field of real estate there are a lot of modern accessories in the Apartments and the thing are in formated way.

The Real investment...

2007-09-28T03:25:00.000-05:00

You may be wondering for what I am talking about but have you ever think about what are your real investments, hope that very few of us ever think usually every one tries to invest more and more for there secure future.

Once you just have to think about what is your real investment is it that money that you invested in market or that you paid for charity ....?

I think no not at all your real investment is your HOME remember your home not house you have purchased.

When You Think About a Long Term Investment

2007-09-21T01:13:00.000-05:00

Before months or even years there was a big problem about thinking and after reading tons of tips for buying investment property abroad you have finally decided to buy the investment property abroad. By now every one knows that buying property abroad will not only be a one-time commitment but it will be an ongoing commitment.

Maybe you are looking to buy investment property abroad because you are planning to rent it out to different people, kind of like a hotel house or something like that. Then you will be getting your moneys worth out of it. If you rent it out to a family for a week, you will be renting it out to a different family the next week, so you should always keep track of who you rent your investment property out to, and keep check on your property as well. Maybe if you don't plan on selling it but using your investment property as more of a hotel you could even end up staying in it for a little while as well. Just make sure you keep everything up to date, you can't just buy it then leave it and rent it out without going there and keeping check on it.

For all this you have to go for a perfect place were you can get perfect return to your investment, It is now time to look for highly growing cities in India one in which is Gurgaon.

Gurgaon And Real Estate.

2007-09-10T01:45:00.000-05:00

In the past few years Gurgaon made a boom over the employment in the IT field and this generated a requirement for residential complexes. And now the time to say that the city is full of the buildings that makes the home for every one.

Hooda plans three Gurgaon clones

2007-08-30T01:56:00.000-05:00

Learning a lesson from the fact that Gurgaon’s proximity to south Delhi and international airport were the two main reasons behind the city’s growth, Haryana government is all set to create three more similar cities in Delhi’s vicinity. These would be within the range of 60 kilometres from Delhi with the closest one being the Jahangirpuri-Badli.

"If you ask me what is the reason behind Gurgaon’s development in comparison to Faridabad, i will say it is the city’s proximity to south Delhi. To repeat the success, we are planning to create three new cities in close proximity to the capital," Haryana chief minister Bhupinder Singh Hooda told Times City.

The chief minister said the three new cities would follow the private-public partnership (PPP) model as it was in the case of Gurgaon. "We can’t deny the fact that private players had played an important role in the emergence of Gurgaon and hence we will follow that model," said Hooda. "We want to create the towns just on the lines of Gurgaon." It is worth mentioning that in the emergence of Gurgaon as a major town in north India, private developers have played significant role.

The three planned cities are Samalkha on GT Road, Sampla on Delhi-Rohtak Road and Jahangirpuri-Badli near Kundli. Director, town and country planning (DTCP) S S Dhillon, said the development plan for Sampla and Jahangirpuri-Badli would be out in next three months.

"There would be a public notification and once the plan is out then only the developers would show interest," said Dhillon. He also said that the plan for the third city would be follow soon.

Sources said that while the notified area for development would be nearly 10,000 acres in case of Jahangirpuri-Badli, the other two cities would be developed on a notified area of 5,000 acres each.

"The future development would not be focused only on residential sector. The demarcation of land use would be done as per the norms laid for town planning. Once the notification is out, everything would be clear. But one thing is sure that we are looking at private developers," one source said. He said that the cities would witness major development in next 5-10 years.

Big picture or small realty?

2007-08-20T04:44:00.000-05:00

Pick up a property supplement of any newspaper and you will be overwhelmed by the number of projects in smaller towns like Panipat, Kurukshetra, Bhiwadi, Sonepat, Dharuhera, Karnal among the many, by well known and other, less known developers.

Residential projects in these places promise the world — “air-conditioned luxury apartments, wooden flooring, spas, executive club, high-tech security systems...” screams one of the many advertisements for a group housing project in Dharuhera.

Karnal has seen a number of such projects being announced, but how many of these will see the light of day is another issue. Investor activity in most of these projects has been very high. But the big question is: Do these areas have it in them to attract genuine end-users?

Pankaj Renjhen, regional director at Jones Lang LaSalle Meghraj, is concerned that though several projects have been announced in these smaller towns, there is no surety whether the developers actually have the land with them.

Some of these towns are not too well connected with either Delhi or other commercial centres. Renjhen explains that though these towns have their normal, internal demands for housing, several of the projects seem to be catering to well above that.

“The population of a place like Karnal is not going to grow 200 per cent suddenly,” he says. On the other hand, existing supply is also getting recycled all the time.

According to Knight Frank Research, there is about 1.19 million sq ft of residential space coming up in the micro markets (as they term it) around Delhi. Most of these micro markets lag way behind in infrastructure but are, at the same time, competing with the bigger cities.

Also, the problem with micro markets, feel experts, is that these markets are starting out with residential developments that are totally antithetical to the original logic of first concentrating on commercial development followed by residential, alongside retail, developments.

According to Knight Frank Research, over the last three months investors have either got out or have been forced out. Those who didn’t sell their investments are now stuck with them. Fresh investors won’t be venturing into the NCR region for sometime now, Knight Frank Research points out. The truth is that around six months ago, developers announced projects and then in about three months, a visible slump started.

Renjhen too agrees that now these markets are stagnant or experiencing a slump. “End-users are staying away from these projects,” he says, adding, “Real time demand would be only about 15-20 per cent.” The drop in sales for most, he feels, would be about 80 per cent.

The players in the real estate market in areas around Delhi, for instance, are a mixed bag. From prominent players like Omaxe, TDI and Ansals, there are smaller ones like Nitishree, Pearls Infrastructure and Amrapali Group, to name a few.

These developers have a completely different version of the real estate market in these micro markets. S K Sayal, CEO, Alpha G Corp feels that there is a robust internal demand within these markets. The company is working on a 350-acre Alpha International City at Karnal.

He says that the density of each area has been defined as per requirement, which shows that there is an intrinsic demand. This is why the government has sanctioned multiple projects in these locations.

He does agree that over the last three months there has been a 15 per cent correction in the market. This has not affected the company’s Karnal project which is already 75 per cent sold, a large chunk of it to potential end-users (though initially, every project has over 50 per cent of investors).

In the first phase, the company is selling only plots, though the second phase will also include apartments. This project, and others, Sayal points out, will work, though the time span depends on their proximity to the city. “In smaller cities, you need to be in the continuity of development,” he explains.

Omaxe is working on a 400-acre Omaxe City in Sonepat on GT Road. According to company sources, most investors here are genuine buyers, some even for second homes. A lot of companies in the vicinity too are buying from them. “There is a lot of scope for these new cities in the NCR region — Sonepat, Panipat, Kurukshetra etcetera,” adds the spokesperson.

Sundar Lal, sales head, Sahara City Homes, disagrees with regard to the potential of these smaller cities. “They are not selling like hot cakes. No market can survive without actual users, who are missing in these areas,” he says.

“What is the commercial potential of these places, who is going to buy?” he wonders. His argument is that Gurgaon has a fresh supply of about 30,000 acres in the new masterplan, which was notified earlier. Developers need to fill this before moving to newer areas. Sahara has land in quite a few places including Sonepat, Panipat, Karnal, Kurukshetra, Hissar and Rewari but is not building at the moment.

Also, one of the biggest arguments is where and how the developers will get the money to execute the projects. “In two years time, smaller players will be forced to run,” he feels.

With RBI norms tightening, banks lending to developers have also become strict, which means smaller developers will find it difficult to raise money easily.

The other option is to get money through pre-sales, but the number of such transactions is also on the decline. Funding, overall, is becoming expensive for developers. “The question is how they will execute projects. The financial aspects too start to play,” says Renjhen.

He feels that larger developers in a certain market who have the pull and the execution power will survive.

In a market like Karnal, he says, about two large 100-acre properties can easily survive over the next 3-5 years and anything above that will be feasible only if there is some kind of economic push in the area. In the end, there will be an oversupply situation in all of these markets if all the proposed projects come online.

While the market is going to be end-user driven from now on, the credentials of the developer will matter more than ever, feels Renjhen. And end-users will in all likelihood opt for well-established names. A good example of survival of the fittest, shall we say?

//source: http://www.business-standard.com

Organised Retail in India

2007-07-20T03:26:00.001-05:00

As India surges high with its growth story, the retail sector in the country is bound to come across opportunities like never before. Till a few years back, the retail sector in India was more of an unorganized one with petty vendors dominating the chunk of the industry but now the scenario has fast been changing.

read more | digg story

The real estate boom in India

2007-07-20T03:23:00.001-05:00

India needs infrastructure to support its development and perhaps this is the single largest factor that has been translating into a flourishing real estate market in India.

read more | digg story

Mysore - A promising real estate destination

2007-07-20T03:16:00.001-05:00

Mysore—the city of palaces—is the shining example of real estate growth in India. Owing to its vicinity to country’s Information Technology (IT) hub Bangalore, the real estate market of Mysore is witnessing tremendous growth for the past few years.

read more | digg story

Mall Space Rentals in Gurgaon

2007-07-11T04:13:00.000-05:00

With increasing recognition of malls in Gurgaon as the umbrella of big brands, the drive occupancy or consumer footfalls are also increasing day by day. Ten years ago there was not even a single mall in India: whereas today it is anticipated that towards the end of 2006, India would be having more than one hundred operational malls.

In last months the largest mall to be announced in India is DLF's Mall of India along NH-8 in Gurgaon that will be spread over 3.6 million sq. ft. but after that Emaar MGF is planning to build India's largest mall, the announcement for which will be made in the next six months. Currently on the drawing boards, the mall will ape the world's largest mall (spread over 5.8 million sq. ft.) being built by the compan’s partner (Emaar) in Dubai.

A few years ago the rent of malls in Gurgaon, had gone down to Rs.80 per sq ft per month but today its sky-rocketing with prices like 150-160 per sq ft per month. The real estate residential prices are touching the sky after the success of these malls and the prices have increased from Rs.1200 per sq.ft to Rs.4000 per sq.ft. Big builders like DLF and Unitech are also coming up with amazing projects after witnessing such a positive response of public for malls.

Even the small time builders are now interested in making small malls and lending their most of the part on rent. Because of the increased commercial demand the mall space rentals in Gurgaon have increased by almost 60% in the past two years. One very significant fast fact about malls in Gurgaon is that return through rent on the investment in malls is highest among all segments like residential and office space.

Compared to all the mall-cities around the world, mall rentals in India are quite high. It is because of couple of reasons like the existing regulatory policy and operations of too many speculative investors in the industry. The retail space in malls of Gurgaon is undoubtedly going astronomical. The rent rates in the malls of Gurgaon are touching an average of Rs.400 to Rs.500 per. Sq. ft., which has to be around 75-Rs 100 per sq. ft. These rates mentioned are excluding the common area maintenance.

Theme Malls or Specialty malls is the new trend adopted by the promoters and developers of the mall culture so as to create a niche among the clutter of malls. As per the business strategy, developers are focusing on developing theme malls thereby, increasing footfalls in the malls. A few other concept malls are also coming up in Gurgaon in the coming days like the 'Wedding Malls' which definitely will offer new opportunities for mall space rentals in Gurgaon.

Source: space-shop-now.blogspot.com

2,3 BHK Flats Now Within Reach in NCR

2007-07-07T05:37:00.000-05:00

With the current boom in real estate, property price in ncr is roaring with a high volume. Property prices are rising very fastly but two to three bedrooms in city as well as suburbs are within reach. A middle class person can think of buying property in main regions like gurgaon, delhi, noida etc...

Gurgaon

When moving towards the suburbs, Gurgaon seems to be ideal as it offers well-furnished apartments and floors. Two bedroom apartments in gurgaon of 950 nsq ft are available at Mapple Heights and Princeton Estate. Silver Oak apartments has bigger 1,100 sq ft, two-bedroom apartments to offer. One can also get an area of 1,400 sq ft in sector 56 of Gurgaon.

Delhi

This budget can get you two to three bedrooms in city and in the satellite towns. South Delhi colonies like Vasant Kunj and Lajpat Nagar offer two-bedroom apartments with a super area of 900 sq ft. At a slightly lower budget, Munirka is a good option for bachelors and students. Independent houses of 900 sq ft are available in Tuglakabad extension.
Sector 9 and 13 of Rohini in north Delhi offer society flats of 1,200 sq ft. Derawal has two-plus-one floors of 723 sq ft. Suresh Sharma of Banwari Lal Properties says, “Pitam Pura offers three-bedroom society flats. These have an area of 1,200 sq ft. Three-plus-one builder floors are also available in sectors 3, 7, 8, 11, and 16 of Rohini.”
Sectors 10 and 12 of Dwarka have society flats of 1,500 sq ft.

Noida

Noida offers three bedroom apartments in sectors 50, 52, and 62. Their area ranges from 1,450 to 1,700 sq ft. Sectors 50 and 62 can offer two-bedroom apartments of 1,300 sq ft.
Those working near Faridabad can rent four-bedroom apartments apartments in sector 46. Also, sector 16 has independent villas of 4,500 sq ft. The list will never end, but one has to make his mind.
Our tip: Do sign the lease agreement before moving into a flat. Also, read the agreement carefully.

Source: expressestates.in/

Property Rates in Gurgaon Jumps in New Residential Zones

2007-07-04T00:24:00.000-05:00

The revised collector rates, or circle rates, decided by the Gurgaon district administration will see a quantum jump in property rates in New Residential Zones (NRZ). Gurgaon raises circle rates, property rates to head in north.

These zones are cultivated land being developed into residential areas. The new rates will be applicable from July 4.

For populated areas, the administration has envisaged a nominal increase in rates — 10 to 12 per cent. The rationale, administration officials said, is to tap the growth potential of NRZs. "Property rates have not gone up much over the past few months in areas that are already developed," Gurgaon DC Rakesh Gupta said. "So, in order to be realistic, there was no requirement to increase the circle rates there."

Among villages where property rates will double, or nearly triple, are Wazirpur, Daultabad, Dhankot, Khirki Daula and Sihi Sikandarpur.

Collector rates, or circle rates as they are known in Delhi, in DLF City and Sushant Lok have been increased by 10 per cent. It is a reflection of the sluggish property market of late, officials said.

In DLF Qutab Enclave Phases I and II, for instance, rates for residential property have been hiked from Rs 15,000 to Rs 16,500 per square yard (see box for details).

Land rates in Wazirabad, Samaspur, Gurgaon village, Shahpur, Sikanderpur Ghosi, Nathupur and other villages have been increased from Rs 40 lakh to Rs 70 Lakh per acre. Besides, 20 per cent extra stamp duty would be levied on land on Jaipur National Highway, Sohna Road, Pataudi Road and Sultanpur Road. These charges are payable up to 2 acre depth from the main road.

Real estate developers say the new circle rates are a reflection of real estate trends in Gurgaon and across NCR in the past few months. Circe rates had earlier been hiked in Delhi, followed by a rise in land rates in Noida and Greater Noida.

Gurgaon real estate developer R K Yadav said, “Even with the new rates, the price that buyers will pay in Gurgaon in white will be less than the going rate in parts of Delhi, especially in categories A, B and C."

Source://cities.expressindia.com

Property Buyers spoilt For choice in NCR

2007-06-29T05:34:00.000-05:00

There are all kinds of buyers and all kinds of sellers. If you don’t fall into a major trap, you won’t need to look at Greater Noida or Indirapuram. Property Buyers spoilt For choice in NCR. You can find some information here about property in NCR like in Gurgaon, Delhi, Greater Noida etc..

Delhi

There are all kinds of buyers and all kinds of sellers. If you don’t fall into a major trap, you won’t need to look at Greater Noida or Indirapuram, if you had this budget in hand. In Greater Noida, where apartment rates are peaking at about Rs 3,300 per sq ft and plot rates at Rs 32,000 per sq m, you could still buy very large plots or super luxury apartments here, but you could find good deals in better areas as well.
In Noida’s sector 56 and 71, you can get plots between 162-189 sq m, for around Rs 40,000 per sq m. You can also get three-bedroom apartments, with servants quarter. These would 1,700 sq ft apartments for Rs 4,000 to 5,500 per sq ft. In Noida, you can also get independent house in sector 40, built on 112 sq m plots.
Brokers usually don’t entertain queries for Gurgaon, if they are less than Rs 50 lakh. So, you have many options here. You can get 250 sq yd plots in Huda sectors: 14, 15, 17, 45, 46, 55, and 56. Plots of 350 sq yd are also available in sectors 21, 22, 23. Although these sectors are considered away from the main developments in Gurgaon, they are near Maruti factory on one side and Palam Vihar on the other.
Apartments range between Rs 3,500 per sq ft near Palam Vihar and up to Rs 6,500 in DLF and on Sohna Road. Depending on the configuration and location you desire, options are a plenty.
In east Delhi, plot prices at IP Extension are in the range of about Rs 4000-4,500 per sq ft, giving you three-bedroom flats of up to 2000 sq ft. In the rest of Delhi, DDA flats in many areas come in your reach. In areas like Malviya Nagar, Vasant Kunj, East of Kailash too you can get apartments of up to 1,000 sq ft for this budget. However, brokers say that though this is a good budget to shop for property in Delhi, at this budget the deals would be very few.

Mumbai

The amount is good enough to get 1 BHK flats in good localities in south Mumbai and 2 BHK flats in the island city while suburbs can offer up to 3 BHK flats in decent areas. Even if the amount looks good enough, it falls short for a flat in the up market areas of southern Mumbai.
One can get 2 BHK flat in Prarthana Samaj, Tardeo, Agripada, Worli, Prabhadevi, Shivaji Park, and Matunga in central Mumbai. These areas have good infrastructure and location advantages. In some localities here you can get larger spaces but after paying Rs 80 lakh, one would surely look forward to decent looks, strong structure, and a nice neighbourhood.
The suburbs can get you 1 BHK to 3 BHK flats. The central suburbs like Ghatkopar can get you 2 BHK flats while Vikroli can fetch 3 BHK flats in most modern societies. Bandra, Khar, and Juhu sea face have 1 BHK flats at this price but as you go away from the waterfront, space begins to increase and you can get up to 2 BHK flats as well. Lokhandwala Complex and surrounding areas at Andheri-Versova, Vile Parle (W) and Santacruze (W) would get you 2 BHK flats in good locations.

Source:expressestates.in/full_story.php?content_id=88212

India's Largest Mall By Emaar MGF

2007-06-26T05:30:00.000-05:00

Emaar MGF, the joint venture between the Dubai-based Emaar Properties and Delhi-based MGF, has committed $12 billion investment in India for residential and commercial projects and drawn up plans for what it claims will be the country's largest mall.

Taking realty major DLF head-on, Emaar MGF is planning to build India's largest mall, the announcement for which will be made in the next six months. Currently on the drawing boards, the mall will ape the world's largest mall (spread over 5.8 million sq. ft.) being built by the compan’s partner (Emaar) in Dubai. Till date, the largest mall to be announced in India is DLF's Mall of India along NH-8 in Gurgaon that will be spread over 3.6 million sq. ft.

"The mall will have the same flavour as the Dubai Mall that has 3.77 million sq. ft. of retail space as well as the largest walk through aquarium in the world. The mall in India is in the planning stages and we will be making it public in the next couple of months," says Shravan Gupta, executive vice-chairman and managing director, Emaar MGF. With 65-70% of Emaar MGF’s land bank in the north, the upcoming mall is likely to be built in the Delhi NCR.

While Delhi and Mumbai are the only two places where towers like the Burj Dubai can sustain themselves, we are also planning to bring in the first Giorgio Armani luxury hotel in India in the next four years. In the next one year, the company will even go in for an IPO. While larger SEZs (like the one in Gurgaon) have been kept on hold owing to government policies, we have got in principle approvals for 9-10 smaller SEZs across the country,” says Gupta.

Mall-A-Mall

• Currently on the drawing boards, the mall will be spread over 5.8 million sq. ft.
• Largest mall announced in India is DLF’s Mall of India sitting on 3.6 million sq. ft.
• Emaar MGF’s upcoming mall is likely to be built in the Delhi NCR

Source: Financial Express

Vatika Group Launches Vatika City in Gurgaon

2007-06-22T23:21:00.000-05:00

Vatika Group, one of the leading groups in real estate and hospitality, launches it first group housing and project- Vatika City. Vatika City will be the largest ever group housing development in Gurgaon.

Located on the Sector Road, passing through the DLF Golf course on one side and the main Gurgaon- Sohna road on the other side, Vatika City will be one of the well-connected housing societies in Gurgaon. Just a few minutes drive away from the Malls and other places of commercial interest, the Vatika City will provide quick and easy accessibility to its residents. Also on completion of the Gurgaon Express Highway, the project will be only 15 minutes drive away from Delhi.

Spread over 53 acres of land, the City will feature a series of Low-rise, Mid-rise and High rise buildings offering over 1800 apartments in combination of two, three, four bedrooms, five bedrooms, duplexes and pent houses with complete facilities. Designed by studio u +a, London in association with Spazzio, Vatika City will be a synthesis of contemporary design, traditional landscapes and understated elegance. All the apartments will have abundance of natural light and fresh air and will also overlook a picturesque garden. The interiors of the apartments are elegantly structured, fitted with best possible amenities to make a modern day living convenient. To enhance the comfort of the residents, all the apartments are equipped with fitted kitchen, ample storage area and service balcony. The Duplex, based at the ground level in the Low-rise cluster will also have their very own sunken garden. Terrace gardens will an added feature of the penthouse duplexes. Other features like power back up, shuttle transport service will also be extended to the residents As a fully planned township, the Vatika City will also have various other facilities available only to the residents. Facilities like Needs Super Market (a convenience shopping centre), a club house, a health club, an outdoor sports complex, ABN AMRO ATM, a restaurant, a coffee shop, a polyclinic, a nursery cum creche, an ampitheatre, a community hall, a library to name a few will be available in Vatika City.

Vatika City will also have option to customise the finishes of the apartment, as per the buyer's requirement. Overall, a buyer will be given four different sets of specifications to choose from. He can either choose from the existing options or even go for a mix and match combination, which best suits his style and need.

Mr. Gautam Bhalla, Executive Director, Vatika Group, " Today people want complete finished houses, which blends in with their style and tastes. Nobody prefers to buy a house and redo the finishes in the house. Keeping this thought in mind, at Vatika City, we are offering homes where the buyer decides the kind of finish he wants."

Vatika City will be developed in such a manner to provide green cover to the residents. Out of the total covered area of 53 acres, only 18 acres would be used for construction and rest will remain as green area. The Green area would showcase mature landscaping with a balanced mix of saplings, lush green trees and water bodies. Also as a special feature, all the City residents will have access to 1.25 acres of communal farmland to grow there own kitchen vegetables.

Parking feature has also been given major importance and the city will have two level basement parking and will offer car parks in the ratio of 2 car parks for every apartment.

Source://Indiatimes

NCR Expected Slumps in Property Prices

2007-06-20T03:09:00.000-05:00

With the Delhi Cabinet making circle rates official on Monday, an immediate slump is expected in the Capital’s real estate market. Realtors in the National Capital Region (NCR) hope this will make investors look more at the suburbs.

Circles rates are already effective in NCR areas, and with Delhi joining the ranks there is likely to be a short-term slump in Delhi’s real estate market as the flow of “unaccounted for” money will stem somewhat.

Gurgaon realtor R K Yadav said a slump in Delhi is inevitable because high-end buyers and big realtors are more comfortable trading in cash. “The first few months will be difficult," he said. “People who can afford to pay more in black will now have to pay more in white. Registration fees will thus be higher.”

As a result, buyers will move to NCR, where prices are lower, he said. “So, even with circle rates in place, the amount one has to pay in white (for property in Gurgaon) will still be less than what one has to pay legally for a property in Delhi."

When circle rates were first introduced in Faridabad in 1991-92, the real estate market there saw a similar trend to what experts are now predicting in Delhi. Harish Arora, who owns Link Estates in Faridabad, said the market was stable when circle rates were introduced, like the present Delhi market.

"If Delhi’s real estate market was bullish, the introduction of these rates would not have made a difference," Arora said. “But the market is stable, which means there will be an inevitable slump in the next six months or so."

Arora said circle rates in entire NCR are not more than 40 per cent of the existing market rates. "With circle rates, buyers will pay a lot more in stamp duty, so the actual cost in white rises."

Sanjeev Makhija of Gaylord Builders in Delhi said circle rates would not make much of a difference in upscale Delhi neighbourhoods. “This is because the money demanded in cheque in such areas is much more than what circle rates specify. In middle class or emerging areas, it has been a trend for the last couple of years to buy property more with bank loans."

Source://Expressindia

Realty Funds Hot On Commercial Property in Gurgaon

2007-06-18T06:17:00.000-05:00

Residential property prices in Gurgaon are seeing a downside but realty funds remain hot on commercial property in Gurgaon. UK-based 'Trinity Capital' has invested over 37 million pounds in IT SEZ, reports CNBC-TV18.

Foreign money continues to find its way to Indian real estate. UK-based Trinity Capital, a 250 million pound fund managed by Trikona Capital and listed on the alternative investment market, has acquired a 49.4% stake for over 37 million pounds, in Luxor Cyber City. The two will develop an 8.2 million sq ft Special Economic Zone in Gurgaon.

Of the total space, 4.9 million sq ft will be used for IT and IT enabled services, while 3.3 million sq ft will be developed for supporting infrastructure, such as residential projects, schools, hospitals, and entertainment zones.

There is a demand of about 16 million sq ft of IT and ITES space in Gurgaon, as against a planned supply of only about 8 million sq ft. Trikona Capital expects significant interest from IT and ITES companies for this project and hopes to reap a return of over 25%.

While the project is scheduled to start by the end of this year, it is expected to be completed by June 2012. Besides the land cost, the development value for the project is expected to be approximately 204 million pounds. Over the last one year, Trikona invested more than 150 million pounds in Mumbai and Greater Noida. Trikona is now looking to invest over 500 million pounds a year, for the next four to five years, in Indian real estate and plans to develop 50 million sq ft.

First Global Report On Real Estate Developer-DLF IPO

2007-06-14T00:25:00.000-05:00

DLF, a leading real estate company, is open for subscription with an initial public offer, IPO of 175,000,000 equity shares of Rs 2 each through a 100% book building process.

The issue would constitute 10.27% of the fully diluted post-issue capital of the Company.

First Global report on DLF IPO:

* DLF has six decades of experience and a highly qualified, dedicated management team, many of whom have over 20 years of experience in their respective fields, with Mr. K.P.Singh, Executive Chairman, leading the show. Founded in 1946, the company is credited for the development of 224 mn sq.ft., including well-known colonies such as Krishna Nagar, Greater Kailash and Hauz Khas, as well as an entire integrated 3,000 acre township – DLF City.
* The promoters hold 42.04% of the pre issue equity, the promoter group holds 55.38%, while other shareholders hold 2.57%. There will be ‘Net issue to public’ of 12.57% (175 mn.shares of face value of Rs. 2) of the post issue capital.
* The company has extensive land reserves in various regions across India totaling 10,255 acres, with a saleable area of 574 mn sq.ft., with 51% in the NCR, 23% in Kolkata and the balance 27% in the remaining 24 cities. Although the company began as a principal developer in the NCR, it has forayed into other parts of the country as well, thus making it a genuinely geographically diversified player.
* DLF’s revenues come primarily from the construction of properties/ plots and the lease rentals arising out of letting commercial office space and retail space. The former contributes 85.7% of the total revenues, the latter contributes 5.9%, while 8.4% includes the balance representing maintenance income (3.1%), power supply income (3.8%), and the remaining through property management services and cinemas operations.
* DLF has always collaborated with internationally renowned architectural consultants, such as Hafeez Contractor, The Jerde Partnership Inc. and Mohit Gujral. DLF’s clientele for commercial space include MNCs such as Canon, Nokia, IBM-Daksh, Sapient, Microsoft, etc.
* DLF’s top management is very proactive in identifying other real estate related businesses as part of the company’s growth and diversification strategy to strengthen its lateral and vertical business drivers. The company’s strategic initiatives to capitalise on emerging market opportunities include the following:

Entered into Joint venture with Laing O’Rourke for construction expertise and with Hilton for hotel development.

Acquired share interest (19%) in Feedback Ventures for management consulting services and 51% in Ananta Satellier for architectural know-how.

Signed MoU with Nakheel LLC, UAE, for two townships, each spread over 20,000 acres. And with Fortis Healthcare is to develop and manage hospitals.

Entered into Joint Venture with Prudential Insurance for developing and selling life insurance products.

Key Risks

Uncertainty of land reserves

As of April 30, 2007 the company and its subsidiaries own 1,160 acres (11.3%) of the total land bank of 10,255 acres. The company directly owns only 0.5% while the balance 10.8% is held by the subsidiaries. The remaining 9,095 acres of land reserves are subject to agreements to purchase, development rights agreements or MoUs for acquisition. So risk is inherent in these executory contracts as sellers of land often withdraw from MoUs and sale agreements if land prices go up, resulting in disputes of uncertain outcome.

Availability of real estate financing

The RBI recently issued a notification prohibiting real estate companies from raising funds through the ECB route for developing integrated townships, while revising the interest rate limits for those who are allowed to tap the foreign markets. Moreover, the government proposes to treat FII investments in pre- IPOs of real estate companies at par with FDI with a lock-in period of 3 years in line with the prevailing FDI norms. This step might keep the foreign investors at bay.

Downside risk in execution plan

DLF’s plans appear huge in comparison to its earlier developments. The company plans to make available for sale or lease 149.7 mn sq.ft. for FY07-09, while its cumulative developments, excluding plots, as of April 30, 2007, was merely 29 mn sq.ft. We view DLF’s development schedule as aggressive and carrying considerable execution risk.

Cyclical nature of the Indian real estate industry

The real estate industry is cyclical in nature, which might impact realization in property values and rental income over a period of time. The situation could become worse if property prices decline and property inventory also becomes illiquid over extended periods of time.

Investment Rationale

We have valued DLF real estate business using the NPV approach based on the company’s land bank and development estimates by discounting the project’s cash flows, plus other miscellaneous realizations of other assets on the balance sheet as reduced by the liabilities. We have not included 554 acres of land (entered into a MoU between Dec 1, 2006 and Feb 28, 2007) due to lack of further information for valuation purpose.

As per our calculations, the NPV of DLF’s business works out to Rs.413 per share, after factoring in the best-case assumption including its power business (55MW plant), which has been valued at Rs 2.2 bn. At the price band of Rs.500-550, the stock is at a premium of 21-33% to the NPV. In comparison, Unitech, which has a similar large land bank (10,332 acres), currently trades at Rs.560, while its NPV works out to around Rs.560-575 per share. As compared to this, a majority of the global real estate stocks in Hong Kong and Singapore trades at a 10-30% discount to their NPV.

All said and done, DLF appears to be a steeply priced issue. It may work. But that probability is low.

Investment in Gurgaon SEZ By Trinity Capital

2007-06-13T00:31:00.000-05:00

Trinity Capital invests Rs 300 cr in Gurgaon Special economic zones. The two companies have signed a MoU with Trinity Capital and have announced the divestment of their partial shareholding in the SPV in favor of the global investment firm, Uppal Group said in a statement.

Global investment firm Trinity Capital PLC on Tuesday announced investment of Rs 300 crore in Luxor Cyber City, a special purpose vehicle (SPV) formed by real estate player Uppal Group and Luxor Group.

Luxor Cyber City was floated by the two companies to develop an 8.2 million sq ft Special Economic Zone in Gurgaon.

"Through this association, we will invest towards the development of a multi project SEZ in Gurgaon, which is estimated to be completed by 2011," Uppal Group Managing Director Manish Uppal said.

The project would focus on attracting IT and IT enabled Services companies, besides developing supporting infrastructure such as housing, restaurants, entertainment zones, schools, and hospitals.

Source://ET

Gurgaon Led The Demand For Office Space

2007-06-12T03:10:00.000-05:00

With the current boom in gurgaon real estate, demand for office space in gurgaon is increasing. In the NCR, Gurgaon led the demands for the office space. According to the DT Debenham Tie Leung report, Gurgaon accounted for about 63% of the total absorption of commercial space in the first six months with a total of 3.2 million sq ft. Over 4.4 million sq ft of office stock has been leased over the past 12 months.

The report said, due to the increased demand and shortage of supply in the short term, rentals have increased by 44% in the past year in this region. Notable transactions in Gurgaon this year, according to the report, included IBM leasing 500,000 sq ft, SAP leasing 100,000 sq ft, Satyam 85,000 sq ft and PWC leasing 75,000 sq ft. IBM currently has a total commitment of about 8,00,000 sq ft of leased space in Gurgaon.

At the same time, Central Business District of Connaught Place and Secondary Business District (SBD) are attracting corporates due to their improved connectivity and attractive location. The Connaught Place with limited supply of Grade A space has witnessed absorption of only 81,800 sq ft this year, the report said.

Banks, financial institutions and consultancy firms with a high consumer orientation dominate this demand. Due to limited supply and increasing commercial demand , rental values have increased by as much as 51% in the past one year and are touching Rs 250 per square feet per month in some select buildings.

Noida has absorbed approx . 1.4 million sq ft this year itself. Noida has traditionally housed larger occupier owned operations of 100,000 sq ft plus. Most firms have taken up space in grade B industrial buildings. Some IT / ITES companies have preferred to go to institutional sectors in Noida, usually constructing their own buildings.

There is now an increasing trend of Grade A commercial buildings being developed in Noida, said the report . Notable transactions this year in Noida included Hewitt Associates leasing 175,000 sq ft, Momentum Technologies leasing 100,000 sq ft, Fiserv leasing 100,000 sq ft, HCL Technologies leasing 271,000 sq ft and Freescale purchasing buildings measuring 205,945 sq ft.

The demands for commercial space rose in other cities also. In Banglore, absorption of grade A commercial space in the first seven months of 2006 is seven million square feet as against 9.28 million sq ft in whole of 2005.

Source://Economictimes

Gurgaon is Costliest Suburbs Among Property Price in India

2007-06-11T04:19:00.000-05:00

Property Price in real estate is india is roaring and touches the heights of sky. A middle class person never think about to buy a home in main cities like gurgaon , Mumbai, Noida, Delhi etc.. Property price in these region are very high. Selling at rates between Rs 2,000 and Rs 4,000 per sq ft, Gurgaon (NCR), Vashi (Navi Mumbai), Rajarhat, (Kolkata), Aundh (Pune) and Koyambedu (Chennai) have the distinction of qualifying as the costliest suburbs in India.

While the going rate in Gurgaon is Rs 2,750-4,000 per sq ft, in Vashi, it ranges from Rs 2,100 to Rs 3,500 per sq ft.

The rates at Velachery, Mogappair, Gowriwakkam, Moffusil Bus Stand and Koyambedu in Chennai range between Rs 2,400-3,500 per sq ft and in Aundh and Aundh Annexe between Rs 2,300-2,950 per sq ft. Property at Rajarhat and Bhangor in Kolkata is being hawked at Rs 2,900 per sq. ft.

Says Rajiv Agnihotri, senior business analyst,"Living in the suburbs today has become more of a way of life than a fad, for most urban Indians. Keeping pace with the rise of the suburbs are the property prices, with the result that nothing is available below Rs 2,000 per sq ft in the hi-end suburbs."

Closely following the above listed suburbs are Whitefield and Bannerghatta Road in Bangalore with a rate of Rs 1,900- 2,990 per sq ft. Among Tier-II cities, while Madhapur, Manikonda, Gachibowli and Raidurg in Hyderabad are in the price band of Rs 1,450-2,100 per sq ft, Mohali is higher at Rs 1,990-2,500 per sq ft. Airoli, Juinagar and Belapur in Navi Mumbai are in the range of Rs 1,500-2,500 per sq ft.

Source://FinancialExpress

High Demand For Office Space in Gurgaon

2007-06-05T00:37:00.000-05:00

Real Estate Gurgaon is emerging as a very fast growing city in India. Property rates are skyrocketing. Residential property prices as well as commercial property prices are on full flow and touches the height of sky. Demand for office space in Gurgaon increases from last few months.

The growth rate of office rentals stands stabilized across the major business districts in Delhi as of today. The demand for office space in Gurgaon remains buoyant with most commercial projects scheduled for completion by year-end.

An interesting trend is the increasing number of proposals for SEZs by prominent builders such as DLF, Unitech, MGF and Vipul in and around the NCR though, it is still to be seen as to how many plans will be finally approved by the government. However, the proposed Reliance SEZ, spread over 25000 acres, on the border of Gurgaon is likely to cause a stir in real estate values over the long term.

Source://Gurgaon-properties

Real Estate Prices To Remain Stable: DLF

2007-05-30T04:09:00.000-05:00

Real estate prices are likely to remain stable at current levels, a top official of real estate major DLF Limited said Tuesday.

"I don't see any price bubble in real estate and expect prices to remain steady at current levels," DLF vice-chairman Rajiv Singh told reporters on the sidelines of a press conference here.

However, there could be some upward or downward movement depending upon land location, he said.

Company officials pointed to the "strength" in the market and maintained that "there is no lull in demand."

DLF's business is heavily dependent on the performance of the real estate sector, particularly in the regions in which it operates.

However, given that prices in the NCR region and the metros where its main land bank exists are holding stable, company officials said "there is no cause for worry."

Source://Zeenews

The new property millionaires

2007-05-28T02:19:00.000-05:00

The first time that Sudhanshu Mishra invested in property was when he was 29 years old. He bought a home in Lucknow, which is now occupied by his parents. Subsequently, after relocating to Bangalore, he invested in property by buying two three-bedroom apartments, one of which is in the process of being sold. Bought for Rs 33 lakh, the market rate of the apartment in question today is Rs 65 lakh, giving Mishra a profit of Rs 30 lakh.

The same goes for interior designer, Lavina Khanna. She bought her first property when she was 30 years old in Dwarka, which was just beginning to make a mark on the property scene in Delhi. She bought the three-bedroom apartment for Rs 15 lakh and sold it Rs 30 lakh after four years. “Appreciation was not as fast then as it is today. Now, it does not make sense to hold on to property for more than two-three years,” says Khanna, who has bought two apartments in Gurgaon and one in Greater Noida at Rs 2,200, Rs 2,100 and Rs 1,800 per sq. ft respectively. Earlier, she has sold one apartment for Rs 3,000 per sq. ft., which she bought at Rs 2,100 per sq. ft, two years ago.

The lure of big bucks is too great to resist and if you can perfect the art of garnering them periodically, then why not! Investing in real estate is the new mantra for a lot of people in India today, considering the boom that the sector is witnessing of late. But, the investment bug has bitten the young more and with them they bring in new ideas and values.

The most prominent trend that is being witnessed today is the decreasing period of ownership in property. Most youngsters today— in the age group of 25-35—are buying property and holding it only for two-three years. The reason—they prefer short gains rather than sitting on property for life, and the best way to do this is by buying through pre-launches.

Take the case of Vikas Khokha, a senior executive with Bharti Airtel, who prefers to invest in pre-launches, as it gives him the opportunity to make quick profits as and when the property is launched and the prices appreciate. He bought a three-bedroom apartment on Sohna Road in Gurgaon when the area was just coming up. Bought for Rs 32 lakh, 34-year-old Khokha sold the apartment for Rs 40 lakh after two years. The market rate of the same apartment today is Rs 70-80 lakh.

“In a pre-launch, not only are the rates less, but I also don’t have to pay the entire amount. Payment for pre-launches is usually done in regular installments. As it is banks and financial institutions do not provide loans for pre-launch offers,” he says.

Khokha is a part of a growing tribe of youngsters who are looking for short-term gains, instead of sitting on a property and passing it on to the next generation.

Generation Y wants to partake of the fruits of investment in this life itself, even though it means getting a profit of only a few lakhs. “Whatever profit I get, I again invest a part of it in property,” says Khokha, who has subsequently invested in plots in Faridabad and Agra as well as an apartment in Noida.

In fact, with interest rates rising, a number of youngsters today prefer not to go in for home loans and buy property by putting in their own savings. An example to boot is that of 35 year old media professional Vivek Makkar, for whom investing in property today has become a ‘way of life’. After selling his plush bungalow in West Delhi, Makkar had the cash to spare, which he wisely used in investing in property by buying space in a mall in North Delhi and buying apartments in Gurgaon, Faridabad and Noida. As soon as the property appreciates, he sells it off and makes a cool Rs 15-20 lakh per property, a part of which goes into more investments in real estate.

In fact, a number of investors today are investing in malls. They buy space in a mall under construction (for Rs 200-300 per sq. ft., depending upon the location) and then rent it out to big brands for Rs 450-550 per sq. ft.) and reap the benefits for all times to come.

Another trend that is doing the rounds is that of many mid-level professionals joining hands and buying property together. Even though the property is in an individual’s name, the money put in is that of four-five people. They prefer to invest in Tier II and Tier III cities, which are accessible to the metropolitan areas that they live in. Like advertising executive Atul Arora, 32, has invested in Meerut, Jaipur, Zirakpur and Panipat with four of his friends. “We divide the profit that we get after selling and depending on everyone’s requirements again invest it into property. We choose Tier II cities because being mid-level professionals we cannot afford the high rates that the Delhi NCR is recording these days. Tier II cities fall into our budget and give good returns as well,” he says.

However, if you look at prevailing rates in metros, then investing in property there always fetches you the best possible profit. The present rise in rates is making old time investors laugh all the way to the bank. As is the case with Mumbai-based KK Rajaram, vice president (Finance), Shri Chakra Udyog who bought two flats in Vikhroli in 1993 at the rate of Rs 1,400 per sq. ft, whereas now the value currently stands at Rs 6,500 per sq. ft With plans to sell the properties, Rajaram plans to utilise the profit he receives in buying new property.

But, what is making young professionals invest in property today instead of in shares, apart from good returns? “Liquidity is more in real estate as compared to investing in the stock market. Shares do sell outright as compared to property, but then unlike real estate they also witness a downward graph as well. Even though there is a slight correction happening in the high-end segment, property price never goes down,” says Khokha.

Like Khanna says, the “boom will never go bust.”

Is There a Slowdown in The Property Market?

2007-05-24T01:45:00.000-05:00

It might be a brick-by-brick process but the slowdown in the property market is evident. Industry watchers firmly believe that with the dollar inflow into realty slowing down, land prices will also sober down.

Private equity firms are playing the wait-and-watch game. Experts say the volume of private equity joint ventures has fallen. And this is because private equity players expect land prices to fall further.

Nalin Kumar, Executive Director & Head - Real Estate, JM Morgan Stanley, said, “I think the real impact will be at the raw material end, or the land prices end. And that will eventually be felt through the entire value chain. In my opinion, the land prices had started to go to levels, which were difficult to sustain, particularly in Class-III towns. The class-II town areas, which were significantly outside the metro limits will get impacted significantly."

But it is not just the tier-II and tier-III cities that will see a correction. Experts believe that certain pockets in tier-I cities, such as Real Estate Gurgaon and Mumbai, might as well see a dip.

Gaurav Pathak, Analyst, ICICI Securities, “As of now, supply is coming up in Central Mumbai, as well as suburban areas of Thane and Navi Mumbai. There could be some amount of correction here in Mumbai. But I do not see a significant downside in prices.”

Private equity is one of the last sources of funding that is open to developers. But with even these deals slowing down, developers could be faced with tough times ahead.

Source://Moneycontrol

Back-door entry for foreign money in RE

2007-05-21T02:25:00.000-05:00

Smart investors are often a step ahead of rule-makers. Bankers, lawyers and financial engineers may have already found a way to overcome the recent clamp-down on the rush of foreign money into the Indian property market. The new route may be more expensive and not as easy as before. But, it can work.

Regulators fear that some of the Indian firms are taking advantage of the liberal norms for setting up overseas subsidiaries to float companies in tax havens with a capital of just a few dollars. This wholly-owned overseas subsidiary then emerges as the new vehicle to bring money into the property sector.

One of the real estate groups has done this, almost immediately after the government banned preference shares as foreign direct investment in the real estate sector. Till now, a local company owned by an Indian developer was issuing preference shares, or hybrid securities like convertible shares to the foreign investor. The money that came in was equity masquerading as debt. A few weeks ago, the government stopped it.

“What more and more developers will now do is get the investment at the overseas level, instead of receiving the money in India. The foreign subsidiary will issue preference and convertible shares to overseas investors, and then invest it in a real estate project in Gurgaon or Pune,” said a real estate fund manager familiar with such transactions. The money from the foreign subsidiary that will enter India will be shown as plain equity, flowing in through the automatic FDI route. Since a foreign entity (even though owned by a local group) will issue the preference shares, there is very little that Indian authorities can do.

For the overseas investor, the risk is more, since it would be investing in a company in Cyprus or Dubai, and not directly in the Indian project. “However, there are structures which can be put in place to take care of the risks....through their ownership in the overseas vehicle, the foreign investors would actually end up controlling the Indian firm which owns the property,” said a banker.

“There could be certain agreements to protect the interest of the foreign investors. Many international property funds and foreign banks are willing to bet big on the Indian property sector, where they feel the returns will still be higher than in some of the other emerging markets,” he said. Some of the foreign banks have set up dedicated desks to structure investments for the Indian property market. After the restrictions, these groups are now working overtime to find an alternative.

Sources said that many Indian developers, caught off guard by the curbs on foreign investment, are willing to pay a price to get it done. With domestic banks shutting their doors to realtors, the property players are expected to walk the extra mile.

Source: Economictimes

DLF roadshow ahead of offer to begin in the last week of May

2007-05-18T01:36:00.000-05:00

DLF Ltd, one of India’s largest real-estate developers, will begin its much anticipated pre-initial public offering (IPO) roadshow during the last week of May.
The IPO of DLF’s shares is slated for the second week of June, said investment bankers involved in the offer. The company plans to sell 175 million shares.

The roadshow will also provide a more recent snapshot of DLF’s financial performance, through March 2007. The company’s most recent filing with the Securities and Exchange Board of India was submitted in March and covered results through January.DLF will submit a copy of the latest prospectus to the Registrar of Companies before the roadshow begins, said the bankers, who did not wish to be identified.

DLF plans to hold roadshows in Delhi, Mumbai, Ahmedabad and Chennai, as well as overseas markets such as Singapore and Hong Kong, part of a 16-city list targeted for the share issue.
Mumbai and Ahmedabad are expected to be key stops on the roadshow.

“Gujarat and Maharastra have the maximum retail investors. We will have the roadshow in two cities in Gujarat —Ahmedabad and another city,” said one banker associated with the issue.
Roadshows are used by companies to gauge how much investors are willing to pay for its shares. The response to the roadshow will then help DLF and the banks underwriting the company’s issue to fix a price band for the public offering.Kotak Mahindra Capital Co. and DSP Merrill Lynch Ltd are global coordinators and lead managers for the issue.DLF declined to comment, citing regulatory guidelines that prohibit it from talking about the IPO.

The company first filed to sell shares to the public a year ago but had to call off the attempt after minority shareholders protested over the allocation of shares in a rights issue, a bonus plan and a subsequent stock split.

This was for shares they held in DLF, which was previously listed until 2003 and was forced to delist after promoters violated stock market regulations by upping their holdings to more than 90%.

In January, DLF filed for the new offer after appeasing some of these shareholders.
DLF, owned by billionaire Kush Pal Singh and his family, built its real-estate empire by developing large tracts of Gurgaon, one of the Capital’s satellite towns, where land values have risen from Rs650 per sq. ft to as much as Rs6,500 per sq. ft over the last five years.
Close to New Delhi’s domestic and international airports, Gurgaon now houses row after row of large shopping malls that cater to densely packed apartment complexes and office buildings.

Source://Livemint

Gurgaon Based MDLR Group Build Four Hotels For Rs 1,000 cr

2007-05-17T00:35:00.000-05:00

The severe hotel room shortage is attracting new players to set up hotels. The latest to join bandwagon is Rs 2,000-crore Gurgaon-based MDLR Group which will be opening four luxury hotels with a proposed investment of Rs 1,000 crore (excluding land price) in next three years.

MDLR, with business interests in real estate and multiplexes will be opening four hotels in Manesar, Gurgaon (near Delhi), Shimla and Jaipur. “The land for two hotel sites in Gurgaon and Manesar was acquired last year from Haryana State Industrial Development Corporation (HSIDC),” Gopal Goyal, chairman, MDLR group told ET.

The 11 acre land on which the Gurgaon hotel will be built today has marketable value of Rs 350 crore almost double of the value that it was bought at, thanks to the escalating land prices. While the Shimla property will start operations in the next three months, for NCR properties they are targeting the 2010 Commonwealth games. Delhi and NCR region are short of 30,000 rooms for Commonwealth games. It is this shortage which most of the hotel developers are trying to cash in on.

"By the end of next year we will be acquiring 10-12 more aircraft,” said Mr Goyal. The airline will be later expanding operations to Mumbai, Surat, Jaipur and Bhavnagar. “We are also in talks with ATR and Bombardier to acquire 10 aircraft and 10 more will be kept as an option,” said Harsh Vardhan, director, MDLR Airlines.

The airline has been positioned as a regional carrier for premium category competing with Paramount Airways. Its fares will be higher than low cost carriers but 10% lower than that of full service carriers. It will be opting for eight levels of fares with the cheapest being Rs 1,000.

Source://EconomicTimes

DLF Goes For Brand Makeover

2007-05-15T01:02:00.000-05:00

As DLF gets ready to hit the capital markets with the largest ever IPO, expect the real estate giant to go on an advertising overdrive over the next couple of weeks.For starters the company is planning to increase its advertising budget from a mere Rs 10 crore last year to a whopping Rs 100 crore this year.

Not just that another Rs 100 crore will be added to the advertising kitty every year for the next five years taking the total budget to Rs 500 crore.A large part of the money will go towards an image makeover and re-branding exercise. 'Yes, DLF' will be the new catchline that the company is planning to roll out as part of the ad campaign.Brand recognition"We have stayed out of the market for a long time.

Last year we did make a splash to get some brand recognition and this year we need to reinforce the brand to come into public memory," said Rajeev Talwar, Group Executive Director, DLF."We have to do a concentrated spend and we will have to get into a marketing posture that will allow investors and buyers to recognise key strengths of the brand," he added.For Delhiites DLF may have become quite a household name over the past 60 years.

It has built satellite townships like new Gurgaon and posh colonies like Greater Kailash.However, building capital may not be as easy as building homes as the company decides to go public. It will first have to build a brand that will have enough recall among investors across the country. "The company will never be the same again as we are planning a pan-India rollout," Talwar further said.So at least for now DLF will be the advertisers darling but will that help it become a darling of the investors? That is something we will have to wait and see.

Source://NDTVprofit

Oversupply to bring down commercial rentals 15%

2007-05-09T03:34:00.000-05:00

After the correction in rates in the residential segment, it is the turn of commercial real estate (especially Grade A office space) to register a drop in rates to the tune of 15%. The primary reason being oversupply. Pune leads the race in commercial realty with oversupply of 208% by the end of 2007, followed closely by Chennai at 200%.

While Kolkata is expected to be 66% surplus, Bangalore will have 38% more supply than demand, and Hyderabad, 33%. In Delhi NCR, it is expected to be at 20%, among the lowest. Mumbai is the only exception with the demand projected to exceed supply by 8%, according to global property advisers DTZ.

Grade A leasehold office space across most cities is seeing the beginning of an oversupply situation that will continue in the short to medium-term, even though demand continues to be strong. Property experts opine that the first casualty would be rentals which could drop as much as 15% in the next few months.

"Our city-level demand supply analysis, seen in conjunction with the macro-economic fundamentals, clearly indicates that office space rentals are likely to hit a plateau in the next six to twelve months. Barring a few exceptions (primarily the central business districts), the oversupply situation will lead to a correction in office rental values. Or, very simply, this correction in Grade A office space rental values will not be driven by a lack of demand but due to an oversupply build-up,” says Ankur Srivastava, managing director, DTZ India.

For instance, the estimated supply of office space in 2007 in Delhi NCR is expected to be around 15.9 million sq ft (as against 10.6 million sq ft in 2006) with the estimated absorption being pegged at 13.2 million sq ft, resulting in a 20% excess supply. Bangalore is estimated to have 18.3 million sq ft of commercial space in 2007 (as against 12 million sq ft in 2006) with the absorption estimated at 13.3 million sq ft. This works out to 38% of excess supply in the city this year.

Chennai is expected to have the largest supply of commercial space this year at 19.5 million sq ft (which was only 5.3 million sq ft in 2006) with the estimated absorption pegged at only 6.5 million sq ft, resulting in an excess supply of a whopping 200%. Same is the case with Pune, which is estimated to have a supply to the tune of 17.9 million sq ft while demand could be just 5.8 million sq ft.
Room to let

• Pune leads the race in commercial realty with oversupply of 208% by the end of 2007, followed closely by Chennai at 200%

• Mumbai is the only exception with the demand projected toexceed supply by 8%Kolkata with an estimated supply of 8.3 million sq ft (3.9 million sq ft in 2006) and an absorption of 5 million sq ft will have an excess of 66%. Hyderabad, on the other hand, is estimated to have a supply of 6.1 million sq ft (3.8 million sq ft in 2006) and an absorption of 4.6 million sq ft, resulting in an excess of 33%.

Mumbai is the only city, which is expected to be in the negative as far as oversupply is concerned. With its estimated supply pegged at 6.9 million sq ft (6.4 million sq ft in 2006), the absorption is estimated at 7.5 million sq ft.

Says Srivastava, “As demand continues at the current pace and fresh supply tapers off, it is expected that the oversupply position will reduce over the longer term. In the short to medium-term, however, as an oversupply position emerges across most metros, stakeholders like occupiers, investors, developers and intermediaries need to understand the implications and formulate their strategies accordingly.”

Demands of White Paper on Land Deals Issues

2007-05-07T04:18:00.000-05:00

THE Indian Lok Dal has demanded that the Haryana government should issue white paper on the land deals to benefit industrial houses. The demand was made by the INLD District spokesman Ravinderjit Singh Daizy while interacting with media persons at the PWD Rest House in Ambala Cantonment, here today.

Daizy alleged that the Hooda government was acquiring land from the farmers at cheaper prices to furtherhand over these to industrial houses in the name of SEZs. He said that such lands were being acquired at Gurgaon, Hissar and now in Ambala district, where a real estate DLF, had been offered land for developing residential estate at Haryana-Punjab border on Chandigarh-Ambala highway. He said that the farmers were being divested of their fertile land by acquiring these forcibly to benefit the industrialists.

He alleged that the Chief Minister and his cabinet ministers were partners in such dubious deals. The INLD spokesman demanded that the Hissar MP Jai Parkash and his MLA brother Randhir Singh should resign on moral grounds since their two brothers- Dharam Vir and Raj Pal were booked in a fraud case by the Delhi Police. While Dharam Vir was arrested, the other is still absconding. Both had borrowed Rs 25 lakh for setting up a soft drink factory but didn’t make the repayment.

He also demanded the resignation of Haryana Education Minister Phool Chand Mullana holding him responsible for indiscipline in schools where teachers were caught indulging in criminal acts of raping the schools girls. He said that the standard of education had not been maintained and there were schools with zero per cent result in the matriculation examination.

District Unit president Surjit Sondha, District Mahila Wing president Shashi Kesri, Ambala Cantt Unit president Raj Kumar Sharma, Dr K D Sharma and other leaders were also present on the occasion.

Source://http://cities.expressindia.com/

Sarovar Hotels eyes serviced apartment mkt

2007-05-04T02:09:00.000-05:00

Mumbai-based multi-brand hospitality chain Sarovar Hotels is looking at entering the serviced apartments market through the management contract route.

The company is in talks with real estate players for operating serviced apartments in Bangalore, Chennai and Gurgaon. “Currently, the plans are in the evaluation stage but we are definitely entering the serviced apartments segment as soon as we get a good deal,” Ajay Bakaya, ED of Sarovar Hotels, told ET

Mr Bakaya added, “We could operate these serviced apartments under any of our four brands, excluding Hometel. And the room rents would be a on par with a three star hotel accommodation.” Apart from its budget hotel brand Hometel, Sarovar manages properties under Premier, Portico, Park Inn and Park Plaza brands.

In the south, Bangalore, Hyderabad and Chennai are major markets for serviced apartments. Similarly, many serviced apartments are coming up in Gurgaon and Noida due to increasing demand from MNCs. Though there is no data available to estimate the growth of serviced apartments market in India, the action is in this space is heating up with entry of international hospitality majors like Hilton International and Ascott.

Currently, hospitality majors like the Taj and Grand Hyatt operate upscale serviced apartments in Mumbai. Bangalore-based Royal Orchid, which operates a serviced apartment in the city, plans to launch another one in Pune. Real estate groups like Raheja and Brigade also have a presence in this segment.

Meanwhile Sarovar Hotels plans to set up seven Hometels’ across Chennai, Hyderabad, Mumbai, Baddi (Himachal Pradesh) and Chandigarh with an investment of over Rs 300 crore.

Source://Economictimes

Protest Against SEZ Becomes Huge in Gurgaon

2007-05-02T04:20:00.000-05:00

The confrontations against development of Special Economic Zone (SEZ) along the KMP Expressway to come up at the place of village land for industrial zones are getting fiercer day by day. Farmers have decided to block all roads leading to Gurgaon on May 13 to make their concerns heard.

A large number of families will out protest rally against the state government and private companies’ decision to acquire village land. All farmers would spread out to different entry points of Gurgaon and will not allow traffic to enter from neighboring districts.
The farmers will also submit a memorandum to the Gurgaon District Magistrate on May 13, announces Braham Parkash, the president of Kisan Majdoor Krishi Bhumi Bachao Sangharsh Samiti.

About 1,000 people from 24 villages attended a meeting arranged in Garoli Village and raised slogans criticizing the Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) regarding their shift to acquire land for institutional and industrial zones.

HSIIDC had issued notices to farmers on seven villages on either side of the proposed 135-km KMP Expressway for acquisition of 3,700 acres. “Now, the state government wants to pursue its own plans of taking up the development of a Global Corridor on our lands. We have been ploughing the land for generations. Why we should give it to them against our wish, says a farmer.”

Short-term investors shy away from residential property

2007-04-30T06:04:00.000-05:00

Media professional Lalima Bose, owner of a two-bedroom apartment in Gurgaon, always wanted to upgrade to a high-end property in the suburbs. The only deterrent was the shockingly high rates of Rs 6,000 per sq ft. But this time around, she decided to muster up the courage to check out the going rates. Surprise! Rates of most high-end apartments have deflated a substantial 30% to Rs 4,000 per sq ft. She is busy checking properties. Her dream may come true soon.

Practically all cities across the country have registered a 15-30% drop in realty rates, depending upon the area. “The boom in the real estate sector that saw rates soaring way beyond your budget has registered a correction in the top-end residential segment in cities across the country. This has also resulted in short-term investors shying away from putting their money into property any more—keeping the market wide open for actual end-users.

Take the Delhi NCR for instance. Rates at Kundli in east Delhi, which were Rs 2,100 per sq ft. six months ago, have come down to Rs 1,450-1,500 per sq ft. Ghaziabad, which had risen to Rs 1,800 per sq ft, is today selling at Rs 1,450-1,600 per sq ft.

The correction in Mumbai is somewhat nominal in comparison to Delhi. Six months ago, residential rates in Mulund and Thane were Rs 4,000-4,800 per sq ft and Rs 2,500-4,500 per sq ft, respectively.

Today, they are in the region of Rs 4,000-4,600 per sq ft and Rs 2,500-4,200 per sq ft.
Floor Plan

• Practically all cities have registered a 15-30% drop in realty rates • Dropping rates have kept the market wide open for actual end-users
• No change in commercial segment as demand outstrips supply• Somajiguda in Hyderabad is in the range of Rs 2,200-2,600 per sq ft today, which was Rs 2,500-3,000 per sq ft six months ago
Whitefield in Bangalore has decreased to Rs 2,500-3,000 per sq ft from Rs 3,200-3,500 per sq ft
• In the posh Aliganj of Lucknow, rates have fallen from Rs 2,800-4,000 per sq ft to Rs 2,500-3,500 per sq ft

In Kolkata, New Alipur commanded a price of Rs 3,600-3,900 per sq ft, which has come down to Rs 3,200-3,500. Rajarhat, on the other hand, was selling in the range of Rs 3,500-3,700 per sq ft, which has today reduced to Rs 3,200-3,400 per sq ft.

Somajiguda in Hyderabad is in the range of Rs 2,200-2,600 per sq ft today, a drop from Rs 2,500-3,000 per sq ft six months ago. Rajendra Nagar in the city has fallen from Rs 2,500-3,200 per sq ft to Rs 2100-2,500 per sq ft. Whitefield in Bangalore has decreased to Rs 2,500-3,000 per sq ft from Rs 3,200-3,500 per sq ft. Koramangala, too, has dropped to Rs 3,000-3,250 per sq ft from Rs 3,500 per sq ft.

In Chennai, Kilpauk, which recorded a rate of Rs 3,000-4,500 per sq ft six months ago, has today decreased to Rs 2,400-4,000 per sq ft. Velacheri has dropped to Rs 2,200-3,800 per sq ft from Rs 2,600-4,500 per sq ft .

The correction is not restricted to the metros alone. Zirackpur, outside Chandigarh, has fallen to Rs 2,100-2,450 per sq ft from Rs 2,250-2,600 per sq ft six months ago. In the posh Aliganj area of Lucknow, rates have fallen from Rs 2,800-4,000 per sq ft to Rs 2,500-3,500 per sq ft.

The correction has, however, primarily affected the residential sector at the moment. The commercial segment is going great guns with demand generally outstripping supply. Kushagr Ansal, wholetime director, Ansal Housing & Construction Ltd, feels that the residential correction has taken place in areas where realty rates had shot through the roof--like Gurgaon in Delhi NCR and Whitefield in Bangalore. “Builders had escalated prices sighting future developments. Since they could not find too many buyers, the next best step to take was to bring down the rates,” he says.

However, some developers feel that the correction has not taken place in the ‘branded’ offerings, but is prevalent in the resale market. Says Kunal Banerji, VP (marketing & corporate communications), Ansal API, “It is investors that are selling property at rates lower than the market, afraid that with interest rates on the rise, they might not get this price again. From the developers side, there is no correction.”

Agrees JC Sharma, MD, Sobha Developers, “It is only the peripheries of cities that have registered a drop in rates. Developers have not reduced prices, it is the dealers that are doing so and it also depends upon location. Demand is still very robust and the residential segment is highly under-serviced.”

In fact, property consultants believe that the correction in real estate (pricing) market is not as evident as many people believe. “Despite the increase in home loan rates and constant and steady increase in property prices, it is only in exceptional areas that prices have come down or remained stagnant. Otherwise, the correction is “reduced growth rate” and stagnation—not a fall in price,” says Ashutosh Limaye, VP, consulting services (west), Trammel Crow Meghraj Property Consultants.

Source: http://www.financialexpress.com/fe_full_story.php?content_id=162510

Real estate in India - Impact on hospitality

2007-04-25T06:04:00.000-05:00

The real estate India is on the rise. While more than 50 bigwig foreign funds have already checked in, the first half of 2007 will see at least 25 more funds making an Indian entry. This will mean that almost US$ 10 billion of foreign direct investment will be injected into the sector. Hotel developers have already announced thousands of square metres of land.

Sanjay Bansal began by asking the panelists why real estate is showing so much interest in hospitality. To this, Shakti Singh replied, "We at DLF have different models. We are developing assets and giving them to professional management companies to run. We have signed with Hilton for our hotel projects."

Other than the plan for DLF City at Gurgaon, it recently inked a US$ 20 billion deal with the largest privately held real estate developer in the world, Al Nakheel of UAE, to build two townships in northern and western India. The companies will initially invest US$ 5 billion each in the next three years to develop about 16,000 hectares, most probably in Gurgaon and Maharashtra (between Pune and Mumbai). The townships, scheduled to be completed in 2013 with more than 70 per cent of the land already acquired, will feature an integrated combination of residential, retail and hotel properties.

DLF has already applied to statutory regulators for the second time to launch a public float that could raise about US$ 2 billion for a 10.2 per cent stake. Joint venture partners include Hilton Hotels, Feedback Ventures and the UK-based infrastructure company Laing O'Rourke. Sumit Guha explained that a rise in real estate companies entering hotel sector is posing a tough competition to hotel companies already operating in the sector. "Lots of capital is coming but no one knows where it will go," he added.

Meanwhile, Chender Baljee stated, "We are tying with partners on a revenue-share basis. We're just testing waters. The industry can adopt and grow different models, franchise, partnership, etc." Talking about the challenges in the market, Balaji Rao explained that the market is exciting but challenging. "Operators are running the market and there are no fixed returns. Land has to be valued in terms of the returns. Hotels have to enter different segments and look into a different consumer base," he said.

(From l to r)Moderator: Sanjay Bansal, Partner, Ambit Corporate FinancePanelists: Chender Baljee, CMD, Royal Orchid Hotels Shakti Singh, Director, DLF UniversalBalaji Rao, MD (India), Starwood Capital Group Sumit Guha, VP (projects & development), Taj Hotels, Resorts & Palaces.

Currently growing at 30 per cent per annum, the Indian real estate market is estimated to be worth more than US$15 billion with hospitality being the hot sector into which an estimated US$ 2 billion is likely to be pushed over the next three years, the bulk of it through private-equity funds. Many funds are allocating as much as 50 per cent of their planned real estate investments into the sector, as hospitality remains highly under-serviced, with a huge demand-supply imbalance.

Bansal said, "Concerns about an asset-price have led the RBI to raise the risk weightage on real estate loans extended by banks, and mortgage rates have gone from 7.5 per cent to about 9.5 per cent as a result. That's still well below the 15 per cent rates that most Indians were used to, but it's enough to raise questions about whether the speculation of the past year and a half, which has driven land prices up by 30 per cent to 100 per cent and real estate stocks up as much as 2,000 per cent may be coming to an end."

Concluding the session, he added that in future, interest rates are expected to come down. He said, "In terms of market, tier II cities will see more expansion. Valuation is a challenge and so are the government regulations."

Real Estates Prices Likely to Fall

2007-04-18T02:11:00.000-05:00

"There will be some rationalisation, stagnation in real estate prices in Gurgaon. Prices could come down 15-20 per cent by June or July except for Mumbai or Delhi, where demand will continue to be high," said Susil Dungerwal, a realty expert. Prices have already come down in places like Gurgaon or Mohali, near Chandigarh.

If rising interest rates have upset your plans to buy a house or a car, hold on and stop sulking. There could be an upside for you in this gloom. The house you plan to buy could be cheaper as real estate prices are likely to fall 15-20 per cent in the next six to nine months, with the few exceptions like Mumbai or Delhi.

"As in the US, the transaction prices are lower than quoted prices. If you take an inflation of 6-7 per cent, and prices don’t increase, consumers would benefit," said Sandeep Kotak, business head (mortgages), Kotak Mahindra Bank.

"The price of property goes up nearly 20 per cent between from the plinth level to the completion stage. If prices remain flat, it’s a good proposition for consumers. Though demand is strong, expect the momentum to slowdown," added Kotak.

In the short term, builders may try to hold on to prices. Builders have the ability to hold onto their stocks for 3-6 months, but property prices will drop from the third quarter of this fiscal, say bankers. "It takes 3-6 months for an effect (of monetary policy) to take place," Aseem Dhru, business head (mortgages), HDFC Bank.

That’s because a home loan is a 2-3 months transaction. Consumers, who have committed to a transaction, will go through. "The rise in interest rates will cool off demand for housing loans, which will grow at 10-15 per cent as against 30 per cent last year. Home loans will slow down in Q2, which will reflect in property prices in Q3. We see a 10-15 drop in prices in this fiscal," added Dhru.

Developers though don’t see prices falling. "I don’t see prices falling," said leading builder Niranjan Hiranandani. "If you want to buy a property for yourself, buy today on a variable loan. The construction costs are going up; the more you procrastinate, the more you may end up paying," he added.

But bankers say consumers are already postponing their purchase—registration of new properties in New Bombay are down by a third, according to the registrar office in Vashi. When holding costs rise, builders will be forced to reduce prices. A 15-20 per cent drop in prices will more than offset the rising interest costs.

To attract buyers, builders will start throwing freebies like free modular kitchens, parking, stamp duty or gadgets—a few ads from builders for properties in distant suburbs have started appearing in Mumbai after a gap of couple of years.

Have a look at Real Estate Gurgaon?

2007-04-09T05:47:00.000-05:00

Gurgaon is a vast adolescent real estate that stands in the glow of new paint. Luminous glass buildings, stout bustling malls and gigantic hives of apartments named after lords, knights and birds are spread over green lawns that people from Bombay would call parking.

It is unmistakably the colony of the young, its marketplaces and restaurants teeming with EMI couples and their 'we-two-ours-two' children, and in the pale background, a dark melancholic Bihari maid. Across this district that has no clear perimeter anymore, work is in progress. It's more than just Delhi's satellite now.

Many more buildings are rising and piers are becoming bridges. There is no evidence here of any other time but the present, though Dronacharya is rumoured to have been born in one of the hamlets. The hint that a different population once lived in Gurgaon arrives sometimes in dramatic ways.

A housewife in Nirvana, a posh residential area, recalls the appearance of a rustic woman at her doorsteps. "I thought she wanted a job as a maid but then I realised she wanted to buy a house." And there lies the deeper story of Gurgaon's hidden but fortunate natives. Scions of the nomadic shepherds and farmers who once settled in Gurgaon and grew bajra, jowar and mustard in their arid lands, are today sudden beneficiaries of a spectacular revolution.

The rise of the BPOs in the last decade, the coming of other service industries, and the brute force of builder enterprise have converted almost worthless farmlands into properties that now fetch one to eight crore rupees per acre, a 500 fold increase over the last ten years in a generalisation. Landed farmers who till recently earned about Rs 15,000 per acre a year through farming, are millionaires now even by dollar standards. And the carnival is only intensifying. Last year, over 800 acres of land were transacted.

Big builders already own 10,000 acres in Gurgaon and they are buying more. In the delirium of sudden affluence, farmers are buying cars like the Skoda or Ford Endeavour on full down payment. Enchanted by the real estate industry, many are becoming land brokers. Some are lost to drinking and gambling. Women who used to wake up at four in the morning to finish household work, have today discovered bed tea. They even call it "bed tea". When two neighbours now cross each other in the lane, there is a silent duel in their minds to decide who would say "Ram Ram" first. "The man who is poorer should greet first," a farmer says of the new etiquette.

Villagers who till recently came together to conduct marriages, have learnt the art of grudging attendance and quick sophisticated exits. The social fabric of scores of villages has crumbled. There is competition, bitterness and jealousy. And diabetes. Of course, there is also the mirth of money and a new spirit of enterprise. And some desperate measures to understand wealth. Recently, five Jats walked into a school and asked the teachers, very politely, if there was a smart girl of marriageable age among their students.

The men told the baffled teachers that the family had earned three crore rupees from a land sale but they were all illiterate. They had decided one of the brothers should marry an educated girl who would know how to handle the money. Among the many fortunate farmers, is Chatar Singh, an unexcitable 56-year-old man with keen, hard eyes. His white kurta has stains here and there. In a conservative estimate, he is worth over 35 crore. He lives with two brothers and together they own five cars.

Like many farmers in this area, he has been selling land to purchase more land in the outskirts of Gurgaon. Now he owns 19 acres worth about Rs 20 crore, according to brokers. "This land around my house is worth 15 crore," he says sitting on a cot and smoking a hookah. His grandchildren go to schools that cost over a lakh a year. "Good schools," he says. "I went to a school where the teachers would come to the class and make sweaters." Chatar goes to wake up his younger brother, Surinder, who is in bed this afternoon. Surinder is in politics. "I was always interested in it," he says a bit sheepishly.

The youngest brother of Chatar is Satbir Singh who is a stout hairy man with a hectic look about him. He is in a towel that is wrapped around what have to be cycle shorts. His wife is veiled and is part of the background. His two teenaged sons are lying on a sofa like content pythons. "Money has changed everything. Man has no real friend left anymore in the village. Everybody is doing his own thing," he says. "Money teaches you new things. Till recently, we didn't know the heart could stop suddenly.

Now heart attacks are common." In old Gurgaon, an area that is also called a "village" in these parts, the glamour of the new developments gives way to overcautious pigs, narrow clogged lanes and the chaos of the mofussil. Old money lives here. Vijay Jain, who is called seth even by the new millionaires, is a large man with a gentle giant's manners. In him there is this force of rustic intelligence. His ancestors were village money lenders and generations of farmers have turned to his family for advice. Today, no farmer in the surrounding village sells his land without consulting Jain. Since the whole trade runs on trust, his role is crucial.

He advises farmers on the right price and tells them how to invest in more land in the outer fringes of Gurgaon. "Apart from land, I think it is a good idea for farmers to invest in making residential blocks with small rooms. There are lakhs of Bihari migrants here already. More will come. They need places to stay on rent. There is money in it," he says. He used to be a bridge between the builders and the farmers. "I have now retired," he says. People like him are vital to the builders because builders never buy land directly from farmers. There is always a village hand who brokers the deal.

The village hand is also called a "consolidator" because his job is to ensure the procurement of continuous swathes of land. Since land is usually owned jointly by brothers, the broker has to find ways to convince family members with opposing views. "Some brothers may want to hold on to the land for a better price, some may want to sell," says C Karthik, a real estate consultant. A farmer need not pay income tax on the earnings from the sale of his land if he uses the money to buy another piece of agricultural land within three years.

Even if this provision did not exist, the bullish farmers of Gurgaon would have invested in land. When 75-year-old Simrat Singh is asked his views on the easy-come-easy-go character of money, he says without blinking, "I have put my easy money in more easy money. I have bought land." He also bought a car, "a small car" but he does not know it is called Santro.

Land prices look set to crash in Haryana

2007-04-07T01:05:00.000-05:00

NEW DELHI: With Reliance’s ambitious 25,000-acre SEZ project in Haryana hitting a limbo following the EGoM decision on special economic zones, land prices in the surrounding areas is likely to witness a major crash.

Incidentally, ever since a major part of land and around Jhajjar was notified by the Haryana government for the Reliance SEZ project, early 2006, it resulted in a major boom in land prices.

For land to be acquired by the corporate major, the state government had imposed a minimum floor rate of Rs 22 lakh per acre, which was about 7-8 times the then prevailing market price of Rs 3 lakh. The resultant effect was simultaneously felt in the adjoining districts, like Rohtak, Jind and Rewari, where in the last 12-15 months, land prices have jumped 6 times over, to more than Rs 15 lakh per acre.

Real estate developers however are of the view that though there will be minor corrections as far as land price is concerned, there is no need to panic as far as a land price crash is concerned. Says Parsvanath CMD Pradeep Jain, “At best, land prices will be rationalised. Developers who have the vision for developing SEZ projects will go ahead with land procurement.

The demand is sufficient enough to sustain the boom in land prices.” However, contesting this notion, an official of Rewari development authority said, “The land prices in our area are around Rs 8-10 lakh per acre, but we estimate a substantive downfall in the prices due to centre’s notification, which has caused problems in the land acquisition of Jhajjar SEZ. The prices may see a drop by around 40-50%.”

According to Jharuhar development area officer, the areas in closest proximity to the RIL’s SEZ would be worst hit. “In anticipation that prices would rise in future, small time developers of the region bought land at very low prices, which could fetch them higher rates in future. Now, post notification, their land bank would be hit badly due to lack of takers,” he said.

National Real Estate Development Council (Naredco) deputy director Sumit Jha is of the view that areas which did not deserve to be such highly rated, would now become realistic in terms of prices. “The areas would definitely have to go through a correction phase. But developers would definitely come and development of real estate is bound to happen in these areas too at realistic prices,” he said.

Haryana Real Estate Boom Hits Rewari

2007-04-02T23:33:00.000-05:00

Gurgaon: After Ral Estate Gurgaon, the real estate boom is catching up in Rewari, about 50 kms from the millennium city. The auction of 30 sites in brassware market in Rewari fetched Haryana Urban Development Authority Rs 20.85 crore approximately.

Today’s auctions witnessed 458.75 per cent increase in the reserve price. The total reserve price for the 30 auctioned sites in the brassware market was Rs 45.44 lakh.

A double storey shop measuring 48 square metre was sold for Rs 85 lakh against the reserve price of Rs 15.15 lakh, an increase of 561per cent. The site was sold to Hirdey Ram. Another double storey shop in the brassware market measuring 48 square metre fetched Rs 83.55 lakh against the reserve price of 15.15 lakh. The site was auctioned to Rohit Kumar. Other sites fetched between Rs 61.25 lakh to 82.05 lakh.

The auction was held in the HUDA office in Rewari under the chairmanship of S.P. Gupta, Administrator, HUDA, Gurgaon. Other senior officers of HUDA and representative of District Administration were also present during the auction.

Gurgaon hotel plot goes for Rs 255.2 cr

2007-03-28T01:06:00.000-05:00

The expected demand of at least 10,000 hotel rooms in the National Capital Region (NCR) during the Commonwealth Games in 2010 has boosted the price of hotel sites in the region, and Gurgaon seems to be already upbeat. In an unprecedented development, the Haryana Urban Development Authority (HUDA) sold a five-acre plot for a five-star hotel in Sector-47 for Rs 255.2 crore. The authority had withdrawn the sale of the same plot pegged at Rs 220 crore on December 15, 2007.

Gurgaon is a hot destination since it's close to Delhi and particularly so for its proximity to the international airport.HUDA has also decided to auction at least one large hotel plot every month for the next six months. Its administrator SP Gupta, said, "We are aware of the increased demand of rooms in the NCR and will auction at least one hotel plot every month so that rooms are in place by 2010." The Millennium Plaza of the Eros Group bought the hotel site to create more than 400 rooms before the Commonwealth Games. "During the last auction, this hotel site fetched only Rs 220 crore which was not accepted as we expected the bidding to go up to Rs 250 crore. Now we have sold it at a much higher price. We put enough efforts to ensure that top developers participated in the auction," said Gupta.

The auction proved how Gurgaon is emerging as one of the favourite destinations for hotel chains, Gupta said. Avneesh Sood, director of Eros Group, which owns hotels such as Shangri-la, Park Royal, Crowne Plaza in Delhi and another upcoming hotel in Faridabad, Crowne Plaza, said, "We have a target to complete the project before the Games. Gurgaon is a hot destination since it's close to Delhi and particularly so for its proximity to the international airport." He added that the group will invest almost half the amount of auction price for construction of the hotel.
In total, auction for 11 sites in Sector-5, 7-extn, 10A, 21, 55, 56, 47 and 9A was held, which included the hotel site.

Real Estate Market in Gurgaon

2007-03-27T23:56:00.000-05:00

REAL ESTATE: A likely oversupply situation in the next couple of years is causing a downslide.

This was a slump waiting to happen. And the new integrated master plan for Gurgaon and Manesar seems to be the trigger. Real estate prices in Gurgaon are witnessing a distinct downslide.

The real estate market in Gurgaon had been growing at a crazy pace ever since MNCs decided to set shop and the pace hadn’t slowed down, that is until now.

According to real estate agents in Gurgaon, while the ready-to-move in residential market is still considerably hot, a lot of people now want to opt out of some under-construction projects.

“The plots market is seeing a downslide of at least 10 per cent,” says a source. Even in the high-end residential market, people are finding it difficult to get out some projects.

“There is a certain softening in the market at present,” he explains. Projects such as DLF’s Westend Heights, Central Park, Unitech’s Uniworld City and Nirvana are still holding on.

“The Gurgaon market is certainly down by 5 per cent,” confirms the source. And there is likely to be further reduction soon owing to the new Gurgaon master plan. The new master plan encompasses 33,726 hectares, which is 3.4 times the area in the previous master plan.

More sectors have been added and Manesar has also been made a part of the plan. “Supply is expected to grow and with higher FDI inflows than ever, oversupply seems imminent,” he says.

The high-end luxury apartments market which had seen a sudden spurt over the last couple of years is not doing well either.

According to Pankaj Renjhen, regional director, Trammell Crow Meghraj, “The supply in the high-end market far exceeds the demand.” This is particularly true of projects on the Golf Course Road in Gurgaon where large format homes have been developed.

At the moment, the demand is more for Rs 45-70 lakh homes rather than the high-end Rs 2-5 crore properties, says Renjhen. But, the developers seem to be neglecting this segment.

According to Renjhen, stagnation has set in the high-end segment and there might be a 4-5 per cent decrease. This decrease could soon touch 10-15 per cent, he warns.

“There is a gross under supply in the mid-market segment,” he says. “The only supply in this category is on Sohna Road. But, that’s an area where no one wants to go. It is much cheaper to rent an apartment, instead, in central Gurgaon.”

Source:Business-standard

Property On Gurgaon-Sohna Road:Buy or wait ?

2007-03-27T00:50:00.000-05:00

Gugaon-Sohna Road is well connected, and is close to areas offering massive employment opportunity. Should you buy at today’s prices?

A 20-minute drive from Dhaula Kuan along National Highway 8 takes you to Rajiv Chowk in Gurgaon. Take a left turn here and you reach Gurgaon-Sohna Road where about 20 developers have either already built, or are currently developing, an estimated 8,000-10,000 apartments.

Development on Sohna Road started in 2004. The price of group housing then was a very affordable Rs 1,200-1,500 per sq ft. Today the price range in the secondary market is Rs 2,800-3,700 per sq ft (builder prices are much higher).

End-user driven

In the last one year the market has become largely end-user driven. Says Rajan Ahuja, director, Realty & Verticals, a Gurgaon-based real estate consultancy: “A lot of demand comes from people who would like to buy a house in Delhi but can’t. Today the price of a 1,800 sq ft floor in south Delhi colonies like GK I, GK II, and Defence Colony is about Rs 1.5-1.9 crore. A similar apartment on Gurgaon-Sohna Road is available for Rs 70-80 lakh.”

A key driver of demand is the employment generated in Gurgaon

Demand also comes from people who want a second home, either for spending their weekends, or for renting out. NRIs and professionals working in Gurgaon’s corporates also account for a large portion of demand. In several high-end complexes, corporates have bought apartments in bulk to house their senior executives.

Price correction

While there are a lot of prospective buyers in the market, affordability has become an issue because of the combination of high prices and interest rates. Which is why prices have largely remained stable or declined marginally during the last six months. Says Jayant Varma, executive director-north, Knight Frank India: “Apartments have seen a small correction of about five per cent over the last six months.”

In the case of plots, the correction has been larger. According to Pradeep Mishra of Zion Global Consultants, “The peak value in and around Sohna Road, which prevailed six months ago, was Rs 30,000-35,000 per sq yd. Since then prices have declined by about Rs 5,000-7,000 per sq yd.”

Mishra attributes two reasons for the price correction. “More speculation took place in plots, hence the correction there was also sharper,” he says. A second reason, according to him, is Haryana Urban Development Authority’s (HUDA) stipulation that buyers will be fined if they don’t begin construction on their plots within seven years of allotment. This has affected investor sentiment adversely.

A notable feature of prices on Gurgaon-Sohna Road is that projects that are close to possession, or where possession has begun, command a higher price of about Rs 3,500-3,700 per sq ft. Projects where construction has not yet begun, or whose possession is slated for 2008 and beyond, command a lower price: Rs 2,800-3,000 per sq ft. “That’s because end-users prefer to buy apartments that are closer to completion,” says Mishra of Zion.

Yet another feature is the considerable divergence between primary and secondary market prices, which in the case of many projects could be as high as Rs 500-1,000 per sq ft.

Demand drivers

A key driver of demand is the annual employment generated within Gurgaon. According to a just-published Trammell Crow Meghraj report “Major IT-ITeS hubs in India”, Gurgaon has an existing inventory of 10.53 million sq ft of office space. About 2 million sq ft is currently under construction. In 2006 the net absorption of office space in Gurgaon was 1.6 million office space. (The IT-ITES sector alone accounts for about 75 per cent of annual office space demand). What the net absorption figure indicates is that there is a large influx of well-paid professionals into Gurgaon every year, which translates into strong demand for housing.

Positives

Gurgaon-Sohna Road has many positives. Its biggest strength lies in the massive employment opportunity available within a 10-15 km radius. Gurgaon’s leading commercial hubs, such as DLF Phase II and III, are barely 10-12 km away. Golf Course Road, another upcoming commercial hub, is 5 km away. Manesar, a major industrial township with 260 large industrial units and 8,000 small units, is 15 km away. The area demarcated for Special Economic Zones (SEZs) in the masterplan is at a 9-10 km distance.

Besides a good location, Sohna Road also enjoys very good connectivity. It is close to NH-8. Now that expansion of NH-8 will soon be complete, you will be able to reach the airport and Dhaula Kuan in about 20-25 minutes.

Moreover, the pricing on Gurgaon Sohna Road suits the upper-middle class. Says Varma of Knight Frank India: “This is the area that the upper-middle class can target. In other areas within Gurgaon, such as Golf Course Road, where a lot of supply is also coming, mostly premium apartments priced between Rs 1.5-5 crore are being built.”

Lastly, Gurgaon-Sohna Road offers the promise of quality lifestyle. Says Brijesh Bhanote, VP, Sales & Marketing, Vipul: “The projects being developed by private developers are well-planned, and offer amenities that will make your life hassle-free.” The environment here is also pollution-free.

Weaknesses

While Gurgaon-Sohna Road has much going for it, a visit to the area reveals the shortcomings. Infrastructure, for one, is not up to the mark. Sohna-Gugaon Road was to be six-laned and then eight-laned, but very little progress has happened on this project. With thousands of apartments to be delivered within the next year or two, the current road will not be able to cope with the expected volume of traffic.

The roads inside the sectors are also not properly developed. And the lack of public transport means that you are hamstrung unless every member of your family owns a car.

Should you buy?

If you are buying for self-use, go ahead and buy, otherwise wait.

There are two contrary opinions that you must weigh before making a decision. According to Mishra of Zion, “Wait for three months. Developers will start announcing projects in the newly demarcated sectors. The likely pricing will be Rs 2,200-2,600 per sq ft in sectors that are 8-10 km away from Gurgaon-Sohna Road. These new sectors will offer you an opportunity to buy something at a good location but at a much lower price.” According to Mishra, all that supply in the new area 1.75 lakh apartments by his estimate will also dampen prices in the established sectors.

Ahuja of Realty & Verticals is not so certain. “If the new sector is close to an established sector, it will command a comparable price. Only in far-off sectors, such as those near Pataudi or Jhajjar, will prices be much lower. Moreover, developers will not bring in so much supply at one go that prices in the existing sectors will be affected. They will release supply very slowly so that prices remain steady. After all they have bought land at high prices and want to make a profit.” Ahuja suggests that if you have the money, buy now before prices appreciate further in future.

Booming economy drives housing demand in Gurgaon

2007-03-23T00:26:00.000-05:00

Ten years from now, developers operating in Gurgaon would look back at 2005 as the acme of a housing boom buoyed by fast rising disposable income backed by easy availability of credit and the low interest rate regime. Or would they look back and see it as another memorable year in a series of record years. Only time will tell for sure. But for now, home builders are riding the wave, trying not to be smug while still enjoying unsurpassed sales and profit generated over the past year, Cashing on the boom young buyers would fulfil their dream of owning a house whereas their parents could not have this luxury even after their retirement. Flying high on the wings of realty, Gurgaon has been in the realty news for a few years now, and the boom still doesn’t seem to subside in this millennium city.

The boom has touched unprecedented heights, which is evident from the number of projects being planned to gratify the increasing demand for residential property. Several residential projects are in various stages of construction in this suburb of Delhi and many more are in pipeline of being launched. “What you’re seeing is a very good housing market combined with the nation’s top developers establishing their base in Gurgaon,” said colonel(retd.) Prithvi Nath of DLF, which already has around 10 ongoing projects and announced six more projects last year and is planning more. Unitech, another dominant player, launched 10 projects over the past year, and is proposing to build 800 - 1,000 residential apartments over the next year.

Among quality projects, Valley View Estate on the Gurgaon-Faridabad Road, has been promoted by Ansals. In this residential project, one can opt from a one bedroom unit of 627 sq ft area, two bedroom 0r 2 BHK apartments ranging from 929 sq ft to 1097 sq ft and 3 BHK aprtments its covering 1300 sq ft of space. Parsvnath’s Green Ville on Sohna Road, a residential project of international standards , has been planned to provide pollution free ambience . This premium segment residential project boasts of an exclusive state-of-the-art club along with access to Jacuzzi, sauna, squash court, childrens’ play area, gymnasium , among others. Another premium segment project, Orchid Greens of Vipul on Sohna Road is sure to attract the buyers attention.

Situated on approximately 17 acres of land, with 85% landscaped gardens, Orchis Greens has two premium apartments on each floor. To add more attraction to this already attractive project, three swimming pools, a day care centre and parks for children have been planned. L&T have launched Kensington Park in Gurgaon on Sector Road, while the Essel Group has launched Essel Towers on Mehrauli Gurgaon Road. Also the Ambience Group has come up with Ambience City Lagoon in Gurgaon at an asking rate of Rs 600 per sq ft. Other such projects include the Icon, Pinnacle, Belmonte, Ville Nova and others in the premium segment.

Under the scheme, a total of 321 plots of half acre, one acre and one-and-a-half acre will be allotted wherein Gurgaon will get 30 plots. The gurgaon plots will be allotted on free hold basis at rates depending on the dwelling unit’s size and the town they are located in. The new scheme will definitely help meet the increasing demand for housing in the state, and probably help check the unbridled rise in property prices in Haryana.

Pricing

On the price front, market at Gurgaon has been fairly stable in the last few months and is likely to firm up in the near future. The price appreciation (to the tune of 50%) that was witnessed in 2004 across the various residential markets of Gurgaon was mostly led by apartments in the premium segment. The rate of escalation has reduced marginally over the last few months. However, the current projected figures of supply and sales indicate sustained activity during the coming months. An important feature, however , is that investors are still a major player in the market which can be viewed through, in the active secondary sale market. Projects that were launched across the NCR in early ‘05 have shown a 10% appreciation in their capital values , while the projects launched in mid-2004 have appreciated by 20-30 %, indicating an annualised return of 25-30 %.

The rental values in Gurgaon also rose in tandem with the capital values. The residential purchase prices could continue to appreciate, though the rate of escalation is expected to be lower compared with last year. In Gurgaon (except Gurgaon-Sohna road) the present rate is around Rs 2,700 to Rs 3,000 per square feet. Builders blame this for the high land price. The cost of permissible constructing space in suburbs like Noida and Gurgaon in NCR is around Rs 1,500 per square feet. As the cost of high class quality space is around Rs 1,000 to Rs 1,200 per sq ft, the total cost of gurgaon apartment comes out to be around Rs 2,700 to Rs 3,000 per sq ft.

Source:indiantimes

Real Estate to Provide Jobs to Two Millions People in Next 5 Years

2007-03-21T23:50:00.000-05:00

The success of the Indian real estate sector has more to it, than the soaring and soaring prices of properties across the country—employing 15 percent of educated Indians, the real estate sector has the capacity to provide jobs to another two billion people in the next five years.

Sanyam Dudeja, VP-marketing, TDI Builders said, Indian real estate sector is such a vast field which has provided job opportunities to people from various other spheres like investment bankers, marketing managers, visual merchandisers and people from supply chain distributors.
According to Dudeja, India’s total retail market is estimated at Rs 9,300 billion where as organised retail sector is pegged at Rs 300 billion and is expected to grow at a rate of 30 percent over the next five years.Indian real estate presently provides jobs to approximately 15 percent of educated Indians and has the potential to employ over two billion people in the next five years, he added.

Explaining the reasons for such huge job demands, he said the reason for such demand has been due to great demands for residential as well as commercial real estate projects that require mammoth manpower to meet the soaring the demand.

However, Hari Gautam of School of Business and Communication Studies, is of the view that real estate industry sector requires people who have knowledge in business, finance, investment and last but not least are good at communication skills.

And Gautam’s tips for those who want to make career in real estate sector is, just have a formal orientation about this sector.

Many experts feel that this recent spurt in jobs in this sector has broken the widely accepted notion that real estate can provide jobs to only people involved in construction or to civil engineers.

While another real estate expert too agrees that real estate boom has opened up a huge employment and career opportunities in this sector. He also added that various firms are holding regular talks and symposiums’ to inform people about the new trends emerging in this sector.

Gurgaon to have World’s tallest skyscrapers

2007-03-15T11:30:00.000-05:00

There is going to be something exceptional about every visit to Gurgaon in the next few years. Visitors will find nothing special except perhaps for the view of the 140 storeys high buildings standing in majestic splendor.
Haryana Government has tightened its seat belt to drive right into the direction of completing the construction of a world class Golden Triangle City Centre in Sector 29 with four tallest buildings in the world by 2010.

Real estate Gurgaon is now on its way of progress and lot of developers investing in gurgaon. There are many buildings which touches the sky's height, On its way to hold the world’s tallest building title at some point of history, the proposed sky scarpers of Gurgaon will overtake the Taiwanese capital of Taipei, home to the world’s tallest man made structure on the planet.

The City Centre will serve as Gurgaon’s prime commercial hub and major tourist attraction. It will have gardens, a hospitality complex, office space Gurgaon and IT parks. All the factors for convenience of general public are taken into account. A fully developed transport system, with Metro and light rail transit links, will connect the centre to major places.

Haryana’s director, town and country planning (DTCP), has finalized the design prepared by a group of East China Architecture and Design Institute (ECADI) and India based Fairwood Consultants. The designs and plans have already been submitted to Airport Authority of India (AAI) for its permission. The Government hopes for the signal to turn green soon.

What do u think goverment will get the green signal or not? Is it possible that AAI authority agree or not on this dream world's tallest skyscrapers project ? Lets see what happen.............

KMP(Kundli-Manesar-Palwal) Expressway Jacks Realty Prices Up Along Route

2007-03-09T22:48:00.000-05:00

The start of construction of the Kundli-Manesar-Palwal (KMP) expressway—India’s longest (135 km) and most expensive (Rs 1,800 crore) expressway project has sent property prices shooting through the roof.

Consider this: A couple of years ago land rates in Kundli were Rs 25-40 lakh per acre. Today, they touch a whopping Rs 2-3 crore per acre, depending on the location. A little further down in Bahadurgarh, the rates have increased from Rs 13-18 lakh per acre to Rs 50- 90 lakh per acre. In Manesar, they have shot up from Rs 20-25 lakh per acre to Rs 1.10-1.40 crores per acre. The story is the same in Palwal, where land rates have risen from Rs 14 lakh per acre to Rs 45-80 lakh per acre since the past year-and-a-half. The rise is courtesy the proposed 135-km, 6-lane Kundli-Manesar-Palwal expressway. A prime example of the real estate boom that has engulfed the country, land rates in the above towns have shot up by more than 150% in the past year or so mainly owing to the announcement of the building of the expressway. And once it becomes fully functional by July 2009, rates are expected to further double than what they are today.

Says Kashif N. Usmani, GM, Marketing, TDI, which is building a 1,200 acre township at Kundli, “In the next 2-3 years, rates along the KMP expressway are expected to shoot up by 200% once it becomes fully operational. In fact, the announcement of the expressway itself led to a rise in rates by more than 100%. With the result that the current rates at Kundli range from Rs 10,000-15,000 per sq. yd. (for plots), Rs 1,700-2,100 per sq. ft. (for apartments) and Rs 5,000-7,000 per sq. ft. (for commercial).” Touted as the longest (in terms of length) and largest (in terms of cost, Rs 1,800 crores) in the country, the KMP expressway will provide a high-speed link between the northern and southern districts of Haryana viz. Sonepat, Jhajjar, Gurgaon and Faridabad, apart from intersecting four existing national highways and key railway lines. The development of the global urban corridor along the Western Peripheral Expressway will provide a further impetus to real estate development in the region.

There will be a number of specialised economic activities in this corridor like state-of-the-art , a Rajiv Gandhi Education City at Kundli and special economic zones.

Source:financialexpress

Real Estate Investments in Gurgaon

2007-03-09T00:42:00.000-05:00

Gurgaon, a city in the northern eastern state of Haryana, has now become much famous as India’s Outsourcing Capital. The impressive growth that this cyber city has shown is hardly comparable with any of what its counterparts have accomplished.

Earlier, Gurgaon was known to be a sleepy town on the outskirts of the capital city. Today, the situation has largely changed with several big buildings and shopping arcades doting on this suburb which has witnessed a major real estate boom for the last few decades.

Gurgaon property has reached such a niche which seemed impossible a few years back. Today, a common man needs to think twice before purchasing a house here. Apart from commercial property in Gurgaon, the residential sector is seeing an equal rise in its values.

The existing population of Gurgaon is considered to possess large purchasing power which has further created a large demand for housing thereby giving a puffy boost to the property prices in Gurgaon. Real estate industry naysayers have opined the transport a chief bottleneck hampering the transportation of this fast flourishing cyber city. However, these niggling hurdles are soon to be crossed with the plans to extend Delhi Metro to Gurgaon.

Flying high on the wings of booming real estate, property in Gurgaon has become a dream for every potential investor looking forward to dig high profits and prospects.Check out the following chart to update your knowledge on the current property rates in Gurgaon.

Theme townships make inroads into real estate market

2007-03-06T23:50:00.000-05:00

A home on the banks of the Ganges at Haridwar, Rishikesh, Varanasi. Living in a beach village in Goa or Kerala. An abode at the feet of Lord Krishna in Vrindavan or life in an average Rajasthani village.

These are just some of the taglines adopted by real estate developers to make their projects more attractive to the property buyers leading to a new trend of theme townships, a trend that is getting stronger by the day.

So, you have the Geetanjali residency located next to Swami Ramdev’s Patanjali Yog Peeth outside Haridwar. And AIPL’s Tridev city is all set to develop a chain of villas and duplexes in the holy city. Located on the banks of the Ganges is AEZ Group’s Aloha Rishikesh, just 1.5 km away from the Laxman Jhoola. The group is also building a township in Gurgaon by the same name (Aloha) revolving around the theme of Hawaii, where the design of the whole complex will be such that it will remind you of beaches, colour and flowers. Townships like Vedic Village and Divine City by local developers are also on the offing in Haridwar.

“The spiritual angle has always been a big draw for tourists coming to India. For us, it is also a marketing initiative that helps differentiate as well as attract like-minded people. As a developer, we get a confirmed customer and the customer gets something that he was looking for,” says Sanjeev Aeren, MD, AEZ group.

Move east of Delhi, towards Vrindavan and Mathura, and you will come across Suncity’s township at Mathura, Radhika Kunj by Ravindra Home Developers as well as townships by Magsons and Prabhatam Buildwell among many others.
Townships are also coming up on the outskirts of Varanasi, primarily to cater to the devout. Magarpatta City outside Pune, promises a life that “revolves around the Rutu Chakra - the eternal time wheel of nature”.

The Tirupati Urban Development Authority is planning a township spread over 145 acres in Surappakasam village, near the holy town, with an eye on “NRIs and millionaires wishing to spend their twilight years at the abode of Lord Venkateswara.” Also noticeable is the development of townships with a theme that is in sync with the surroundings. This is more prominent in a state like Rajasthan, where most townships are sporting a local flavour - offering villas and apartments designed like the erstwhile Rajputana havelis and palaces. The Sun Heritage City by the Essel Group is a case in point, offering local flavour in state-of-the-art style.
Source:financialexpress

HUDA’s extension directive sags prices

2007-03-06T14:59:00.000-05:00

The Haryana government’s decision not to allow extension for more than seven years to the plot holders/owners in Haryana Urban Development Authority (HUDA) sectors for construction of houses has effected a crash-down in prices in real estate relating to residential pockets.

The prices of the commercial sites, however, have not been affected by the change in the policy of the government.

In a recent meeting of the HUDA, chaired by Chief Minister Bhupinder Singh Hooda, the “extension policy” was revised. According to well places sources there were reservations against revision of the policy in some quarters of HUDA and the government.

According to Regulation 17 of HUDA (Disposal of Land and Building) Regulations framed under HUDA Act, 1977, a period of two years is given to every plot holder (to be reckoned from the date of “offer of possession”) for the construction of a house. There was a provision to grant a further extension of 13 years beyond the stipulated period of two years on payment of prescribed extension fee.

As per the new policy, henceforth no extension shall be granted beyond seven years (including the initial stipulated period of two years (2 plus 5) years) after “offer of possession”. It has been decided that all such allottees, who have already availed a period of seven years, or will have done so by December 31, 2007, shall have to get the building plan sanctioned and complete at least “minimum required construction” on their plots. Moreover, they will have to apply for “occupation certificate” by December 31, 2008.

The general opinion in the real estate business is that there has been fall ranging from 20-25 per cent. For example, the rate in Sector 23 was about Rs 35,000 per sq yd. It has come down to about Rs 28,000 per sq yd after the announcement of the new policy. In Sector 9 and 10,the rate has come down to about Rs 10,000 per sq yd from about Rs 15,000 per sq yd.
In Sector 55-56, the rate has come down from Rs 45,000 per sq yd to Rs 42,000 per sq yd.
There seems to be domino effect creeping in as the rates in the “licensed areas”, where private builders are allowed to set up colonies, are taking a small dip.

According to official statistics, presently there are, in all, 7,690 vacant plots in gurgaon ranging from two kanal to two marlas, which will be affected by the new policy at the end of the stipulated period. They are spread over in Sector 4, 5, 5-11,15-IV, 7 and 7 Ext,9, 9-A,10,10-A,12-A,14,15-I,15-II,17,21,22-22B,23,23-A,30-P,31-32A and 41-P.

The popular opinion is that the price will further fall, and there is no scope for rise in the prices in residential quarters for some years. The reason being that as per the New Master Plan for Gurgaon-Manesar, there would be further expansion. Also, there was a scope for about 40,000 additional houses in the new master plan, which would see expansion of Gurgaon city and the development of nearby Manesar as a new township.

Source:tribuneindia

Real Estate in Manesar Gets Dearer

2007-03-06T02:59:00.000-05:00

Real estate sector in NCR began with market expansion taking place at Delhi’s suburbs. However, it is something that has passed; now the property business has reached its second phase of development. After the townships of fast flourishing places like Noida, Gurgaon, Ghaziabad, and Greater Noida, it is Manesar to make the headlines next, as far as the development of surrounding real estate is concerned.

Couple of years back, no one could have imagined such bright future of property market in India. According to industry connoisseurs, the next destination for potential investors is Manesar who are eyeing for land acquisition here to develop new office spaces. The rising demand for property itself speaks for the enormous growth taking place in this town of Haryana. Indeed, the demand.

Indeed, the demand for Manesar real estate is so high that spaces are being let out at the planning stage itself. Often, property developers find themselves making a killing from selling off the property much before they have completed the construction work.

Manesar has number of factors stating the cause of its growing popularity. First and foremost, Manesar is situated on the main Jaipur-Delhi highway and is awfully well-connected to Delhi. Next, the international airport is just 32 km away, while the showpiece of Lutyen’s Delhi, Connaught Place, is 45 km. It takes about an hour and a half to reach there.

Also, the Industrial Model Township (IMT) of Manesar is all set to come up with a Technology Park worth over Rs. 3600 crore. The construction work is going fast along with other activities to develop skyscraping buildings here. The authorities have got a nod from the government regarding constructing the buildings up to 15 floors.

Now, there is no reason left behind to mull over why Manesar real estate is hogging the limelight?

Source:indianrealtynews

Gurgaon emerging as new corporate capital

2007-03-02T05:59:00.001-05:00

You must have been very bored with reading and listening to same headline everywhere – “Gurgaon leading in the national capital region, NCR.” Adding to charm of the same is something new but in wide way: Gurgaon enjoying the distinctive distinction of being new corporate capital.

With more and more multinational companies spreading their wings to Gurgaon to establish their customer care center, this suburb of Delhi, can boast of having the highest number of call centers in India, as informed by Haryana Chief Minister Bhupinder Singh Hooda in the 79th annual general meeting of the Federation of Indian Chambers of Commerce and Industry (FICCI).

Gurgaon ranks No.3, after Bangalore and Chennai, in software exports. It has already made its stand as the new corporate capital of India, says Hooda further. More and more projects are coming up to add to real estate value of this cyber city with development of special economic zones (SEZs), envisaging a total investment of over $40 billion – including one of the projects by the country’s largest private sector corporate house Reliance Industries Ltd.

Also, Mr. Hooda invited entrepreneurs to the state as it is a nice time for them to leverage on the opportunities existing in Haryana.

A taste of luxury-Gurgaon

2007-03-02T05:59:00.000-05:00

Gurgaon will soon have another luxury residential complex added. Coming up on a 14-acre plot is BPTP Freedom Park Life, being developed by BPTP, which has earlier built various residential complexes. Located 4 km away from National Highway-8, the project offers better connectivity and healthy living.

Getting there
Move along the Mehrauli-Gurgaon Road. When you reach the Delhi border, turn left from the roundabout and drive straight. Then take a right when you reach the traffic roundabout of sector 57. You reach an unmetalled road. The construction site is located on the left hand side. Alternatively, you can take the National Highway-8 to reach sector 57.
Quick check
The residents will have easy access to gurgaon malls and shopping complexes.The plot area of the project is 14 acres. On offer are 2bhk,3 bhk apartments and penthouses. Altogether, 80 per cent of a total of 600 flats have already been sold. The present rate is Rs 4,200 per sq ft. The project will have nine towers. These will be divided into two categories. First will comprise of five towers. Second will have four. First group will have ground plus 18 floors and the second will have ground plus 16 floors. Each floor will have four units. Well-known architect, Mohit Gujral has designed the project.
Sample flat
The sample flat is a 2,537 sq ft three-bedroom apartment with a servant’s room. The entrance is wide and leads into a spacious drawing room, which is separated from the dining space with a wall. The dining space has a full-length door. Adjoining kitchen is modular, with hob and chimney and granite slab on the platform. Vitrified tiles have been used to do the flooring. Anti-skid tiles have been used to do the flooring in the bathrooms.

A narrow corridor leads to a set of three rooms. The master bedroom and the other two rooms are placed in such a way to give maximum privacy. The master bedroom has cupboards and big windows along with the attached bathroom and balcony. The bathroom comes with Jacuzzi and standard fittings. Other two rooms retain similar features. Attached to the kitchen is a servant’s room. It has a separate door from outside.
Facilities
In terms of facilities, the developer is providing two kinds of apartments. One is with air-conditioning, cupboards and modular kitchen. The other type has only the provisions for these fittings. But the basic plan will be the same.

Other amenities include gymnasium and club facilities. The project will have artificial lake and water bodies. You can also use the jogging track to enhance your fitness. A 24x7 security will be provided through in-house cameras and intercoms. All these make Park Life a secure and self-sustained residential living. Central parks will be the main green area inside the project premises. You will have ample parking space for your vehicle.
Impressions
The project is at a prime location. The project site is close to the proposed group housing under the Master Plan 2021 in sector 57. Also, you have schools like DPS close by. There are other private schools close to the site. Importantly, a hospital called Airitheims is located close. If you talk of connectivity, National Highway-8 and MG Road are at a distance of 4 km from here.
In future, the project will share proximity to important locations and places of commercial activity. The residents will have easy access to shops and nearby malls like the Sahara Mall and the Gold Souk. Unitech’s project, Nirvana Country, is located in the vicinity.

1. Construction underway 2. Dining space with adjacent balcony 3. Drawing room can be demarcated by the use of a separator 4. Master bedroom will have wooden shelves 5. Modular kitchen

BPTP is a well-known name in the realty sector. It has other on-going projects like Parklands in Faridabad. The company has also launched commercial projects like Park Centra in real estate Gurgaon and Noida. It has also launched retail projects like Shop-in Park at two locations in Delhi. Park Life in Gurgaon is sure worth checking out.

Source:expressestates

Gurgaon: Extensions for empty plots now 7 years

2007-03-01T01:21:00.002-05:00

The Haryana Urban Development Authority has revised its extension policy for construction of houses in Gurgaon with effect from January 1, 2006.

“Allotted vacant plots in Gurgaon city will now have to be constructed and completed within 7 years from the date of offer of possession,” said SP Gupta, Administrator HUDA.

An initial period of two years plus five years later on is the total time the allottees will now get to complete their houses in Gurgaon. Failure to complete construction of plots will lead to confiscation of these plots by HUDA, gupta said. The policy was earlier revised to 15 years from 20 years in September 2006. The new revised policy is expected to affect more than 5,000 vacant plots that will come under the 7 years extension policy.

The decision to reduce the extension years was decided in the 99th meeting on December 12, 2006 by the HUDA Headquarters in Chandigarh.

According to the new revised policy, the affected plot holders will have to submit their building plan by december 2007 and get completion certificates by December 31, 2008

Source:cities.expressindia

Airport Upgrade Jacks up Realty Rates in Dwarka, Gurgaon

2007-02-28T06:08:00.004-05:00

With the UPA chairperson Sonia Gandhi having laid the foundation stone for the revamped Delhi airport last Saturday, the ball has been set rolling for the first modern, international-styled airport in the country. But, what has also been set rolling are the real estate rates all around. According to experts, a 10-15% rise in rates has already been registered in areas near the airport like Dwarks as well as Udyog Vihar, DLF Phase II & III in Gurgaon.

Says local realtor Vikram Chopra, “In a country where connectivity is a major issue and the construction of an expressway or a flyover result in a hike in the prices of the surrounding real estate, an airport that is going to be the first internationally-styled one in the country is big news. In fact, apart from Gurgaon and Dwarka, the increase in property rates has already started happening at farmhouse colonies like Westend Greens, Pushpanjali, Vasant Vihar and Shanti Niketan in South Delhi.”

The modernisation of the airport has also added to the image of the areas around it, especially Dwarka. “The airport revamp has added to the sentiment of the area and has become a selling point for real estate developers and dealers alike. People’s point of view too has changed and most of them, especially foreigners now want to live in close proximity to the airport,” says property dealer Vinod Sindhu.

But, it is not just the Delhi airport that has seen an increase in realty rates all around. This phenomenon is more prominent in cities like Dubai and Singapore, which are also popular transit points for travellers, apart from being great tourist destinations. Both cities saw a quantum jump in the real estate around its state-of-the-art airports — to the tune of 20-25% — owing to the economic boom that the city’s experienced after the modernisation of their port and airport.
Says Deepak Bhavsar of Trammel Crow Meghraj Property Consultants, “Airports always have a spin-off effect on the surrounding real estate, especially commercial, owing to the link that industries like logistics and tourism have with it.

Source: financialexpress.com

Gurgaon to have World’s tallest skyscrapers

2007-02-28T06:08:00.003-05:00

There is going to be something exceptional about every visit to Gurgaon in the next few years. Visitors will find nothing special except perhaps for the view of the 140 storeys high buildings standing in majestic splendor.
Haryana Government has tightened its seat belt to drive right into the direction of completing the construction of a world class Golden Triangle City Centre in Sector 29 with four tallest buildings in the world by 2010.

On its way to hold the world’s tallest building title at some point of history, the proposed sky scarpers of Gurgaon will overtake the Taiwanese capital of Taipei, home to the world’s tallest man made structure on the planet.

The City Centre will serve as Gurgaon’s prime commercial hub and major tourist attraction. It will have gardens, a hospitality complex, office space and IT parks. All the factors for convenience of general public are taken into account. A fully developed transport system, with Metro and light rail transit links, will connect the centre to major places.

Haryana’s director, town and country planning (DTCP), has finalized the design prepared by a group of East China Architecture and Design Institute (ECADI) and India based Fairwood Consultants. The designs and plans have already been submitted to Airport Authority of India (AAI) for its permission. The Government hopes for the signal to turn green soon.

Source: indianrealtynews

Gurgaon Sealings – A boon for residents or curse for traders?

2007-02-28T06:08:00.002-05:00

The HUDA stepped up its drive and took action against unauthorized commercial establishment operating from residential areas in Gurgaon. The action was spread across the entire Gurgaon, with majority of the effect being seen in DLF Phase I, where the agency sealed 40 units.
369 shops were sent the legal notice for running shops from residential premises in HUDA sectors. Of this, 119 have complied with the notice whereas the rest are still continuing to do business. Despite the fact that there was such a stringent warning beforehand, none of the traders with shops in private colonies have followed it.

However, the residents welcome the steps taken by the HUDA as they find their dwelling units less chaotic after sealing. A multitude of shops was increasing in the residential area that leads to parking problems and undue rush. Now, people are taking sigh of relief here, says Raj Rawat, who lives in South City II.

Most residents believe that commercialization was giving birth to unsocial activities in these areas. “Due to establishment of commercial units, every kind of person comes to our areas. This is perhaps a reason why there is an increase in theft and eve teasing cases”, says Kirti Jain, a resident of DLF Phase IV.

Contrary to this, shopkeepers in these areas are a worried lot. “We will lose our source of livelihood if we close our shops. Why the government is not thinking about us?” complains Hemant Sharma, a property dealer who had his shop in DLF Phase I that was sealed last week.
The sealing drive of Gurgaon property began in the month of October after the Punjab and Haryana Government issued orders in September to seal all commercial establishments running from residential premises.

Officials carrying out the drive are facing stiff protest from shopkeepers in several places and say that fast and smooth sealing process is possible only when the crowds will be cordoned off. This is why they are now accompanied by police personnel for their security.

Source: indianrealtynews

Real Estate Prices Rise in Tier II and Tier III Cities

2007-02-28T06:08:00.001-05:00

As property prices in metros see a shoot up, Tier I and Tier II cities have emerged as the most promising market for residential as well as retail developments. Now, these places experience a sharp increase in property prices which has gone along with increased demand. It has shot up by as much as 40% in the past two years which is believed to be the highest as compared to earlier hike descriptions.
The property boom in Tier II and Tier III cities is further fuelled by the factors like opening up of financial sector, rationalization of income tax and loan policies in addition with well-paid IT jobs. However, the rise in prices does not square with the earning capabilities and is being considered as an unhealthy sign in the long run.
The property market is not going to see a slide in price in the near future, says data showcased by various property surveys.
Tier II cities including Jaipur, Kochi, Pune, Nagpur, and Chandigarh have become common hunting ground for ITes companies, reveals a study conducted by recent Nasscom-KPMG.
Recently, in cities like Meerut and Jaipur, pre-launch projects are being sold in between Rs. 2,400 and 4,500 per square yard as compared to Ambala, where it starts at Rs 3,000 per square yard.
Nowadays, a person interested to purchase a flat in developing cities like Gurgaon and Ahmedabad needs to spend out about four times the money it had been few years ago. The cost of a BHK flat in Ahmedabad has risen to Rs 31 lakh whereas it used to be Rs 8.5 lakh two years ago. The difference itself speaks for the changing trends.
The value of land in the areas like Nagpur, Nasik, Ludhiana, and Punjab will rise manifold in the coming days. Ahmedabad, that is, tier II city is soon going to be regarded as fast flourishing metro. As for the development in Gujarat, it is not city-centric, but spreads across the state. Therefore, there is more room for development in the state.

Gurgaon Background

2007-02-28T06:08:00.000-05:00

Gurgaon district is situated in NCR of Delhi, the capital of India. It is just 10 kms away from Indira Gandhi International Airport, Delhi. The district derived its name from the name of Guru Dronacharya; the village was given as gurudakshina to him by his students; the Pandavas and hence it came to be known as Guru-gram, which in course of time got distorted to Gurgaon. Thus the district has been existence since the times of Mahabharata. The district is surrounded by Delhi & Rajasthan.

It is said that Yudhishtar, the eldest brother among the Pandavas, gave this village to his guru, Dronacharya, whose tank still exists on the west side of the Railway Road. Actual village "GURGAON" is about 1.5 km. away from Gurgaon town, where the temple of SHEETLA MATA, attracts devotees in large numbers on every Monday and Tuesday.

During Akbar's reign, the district fell within the subas of Delhi and Agra, and comprised, wholly or partly, the sikars of Delhi, Rewari, Suhar Pahari and Tijara. With the decay of the Mughal empire, it remained in a disturbed state as a consequence of fighting between the neighboring chiefs till 1803 AD when most of it came under the British rule through the Treaty of Surji Arjungaon with Sindhia. The town was first occupied by the cavalry unit posted to watch the army of Begum Samru of Sirdhana, whose principal cantonment was in the village Jharsa, 1.5 km. to the south-east of the town.

The civil offices were removed from Bharawas (tehsil Rewari) in 1821 AD, when the British frontier advanced through the acquisition of the Ajmer territory.
The district was divided into parganas by Britishes, various parganas were given to petty chiefs and granted as jagirs in lieu of military services rendered by them. These jagirs were gradually resumed and came under the direct management of the British; the last of the important changes took place in 1836 AD. There after, the district remained unchanged until the 1857 uprising. In 1858 AD It was transferred from the North Western Provinces to Punjab. In 1861, the district was rearranged into five tehsils Gurgaon, F.P.Jhirka, Nuh, Palwal & Rewari.
In the composition of the District since the beginning of the 20th century various changes have occurred.

1901-1911: No change took place during this decade.
1911-1921: Ballabgarh was one of the three tehsils comprising the then Delhi district. A part of this tehsil was transferred to the Gurgaon district in 1912. This was formed into the new sixth Tehsils of the district with the same name viz. Ballabhgarh.
1921-31: No changes occurred during this decade.
1931-41: Minor changes occurred between Gurgaon district and Uttar Pradesh due to riverain action.
1941-51: Under the Provinces and States Order 1950, 9 villages of the district including Shahjahanpur were transferred to Rajasthan, whereas the district gained with merger of Pataudi State and the transfer of it of 2 villages from Rajasthan and 78 villages from PEPSU.
1951-61:There was no change in the boundary of the district during this decade.
1961-71:There was no change in the boundary of the district during this decade.
1972- : Rewari Tehsil was excluded from the Gurgaon district and included in the Mahendergarh district.
1974- : Thirty four villages were excluded from Palwal Tehsil.
On 15th August, 1979 , Gurgaon district was further divided to form a new district Faridabad in which tehsils of Ballabgarh and Palwal, of Gurgaon District were merged.
Location:
The present Gurgaon district comprising nine blocks Tauru, Nuh, Pataudi, Nagina, Punhana, F.P.Jhirka, Sohna, Gurgaon & Farrukhnagar was created on 15 August,1979. It is the southern-most district of Haryana. The district lies between 27 degree 39' and 28 degree 32' 25" latitude, and 76 degree 39' 30"and 77 degree 20' 45" longitude. On its north, it is bounded by the district of Rohtak and the Union Territory of Delhi.Faridabad district lies to its east. On its south, the distt. shares boundaries with the states of Uttar Pradesh and Rajasthan. To its west lies the district of Rewari and the State of Rajasthan.Gurgaon town is about 32 kms away from New Delhi, the National Capital of India.

Population

Total Population as per Census 1991 =11,46,090 (i.e. 6.96% of total population of Haryana State)
Total Population as per Census-2001 = 8,70,539

Total Area = 2760 sq. km including Mewat areas ( 6.24% of total area (44,212 sq.km) of the state.)

Source:gurgaon.nic.in