Golf Course extension holds promise what with ground-breaking housing concepts and good developments in the pipeline, says NAMRATA KOHLI
It is the road perpendicular to Golf Course road, which connects it to the Sohna road. As against Golf Course road where properties are ready to move in and hence very expensive, on Golf Course Extension road, the projects have just been launched and will take at least three-five years to come up. Therefore, the prices are relatively less and affordable at the rate of Rs 4,500-5,500/sq ft.
According to property broker Shekhar Midha from Valuez: "Golf Course Extension road is the only road in Gurgaon that has been planned with no villages and slums nearby. The road is very wide and straight with A-class builders. Most of the projects launched here will take four-five years for completion and another two-three years for conditions to become habitable like having all basic infrastructure of water, electricity, roads, security, etc. It is a good investment for those with a long-term investment perspective."
Golf Course Extension road was constructed in 2009. Most of the projects launched along this stretch in 2009 are expected to be up for possession by the end-2012. Some of these projects include Emaar MGF's Palm Drive, Palm Terraces, Palm Studios; IREO's Grand Arch, Uptown, Victory Valley - Pioneer Park; Emaar MGF's Emerald Estate, Emerald Floors, and Golf Estate by M3M. Most of these are budget luxury homes and are priced at Rs 4,500 per sq ft to Rs 5,500 per sq ft.
Ireo is 100% FDI project with investment by JP Morgan Chase, Goldman Sachs and other blue-chip companies. On a land bank of 800 acres on Golf Course Extension road, Ireo launched its first project "Grand Arch", which is apparently all sold out. Grand Arch's 2BHK of 1,375 sq ft and 3BHK of 2,163 sq ft was launched at a unit capital value of Rs 4,950/sq ft and has increased to Rs 6,850/sq ft. Uptown, which was launched in November 2009 at a unit capital value of Rs 3,800/sq ft has 3BHK of 1,600 sq ft and 4BHK of 2,000 sq ft and is now available at Rs 4,700/sq ft.Victory Valley has 51 storeyed hi-rises plus mid-rises as well as low-rises ranging from Rs 5,500-5900/sq ft. It was launched in May 2010 and will be ready by mid-2013. Ireo is marketing hi-rises as the tallest building in north India, from where on a clear day, one may be able to see Taj Mahal!
Emaar MGF has launched "Palm Terraces" project on this road. According to a company spokesperson from Emaar MGF: "After the success of 'Palm Drive' on Golf Course Extension road, we launched 'Palm Terraces - Select' within the 'The Palm Drive' community, situated on Golf Course Extension road, Sector 66, Gurgaon. Palm Terraces - Select, are ultra-luxury residences with mid-rise structures (G+9 to G+12) comprising four-bedroom apartments and five-bedroom duplex penthouses. The Palm Terraces features the highest design standards, quality amenities and high-end features."
Pioneer Urban has "Presidia" at Golf Course Extension road. Presidia has 3-, 4- and 5-bedroom apartments at the unit rate of Rs 5,500/sq ft. Pioneer Park Presidia has amenities like swimming pools, gymnasiums, indoor squash courts, indoor rooms for reading and relaxation, multimedia entertainment rooms and more. Each floor of Presidia has only two apartments with a provision of separate service entries for each apartment. There are hanging gardens and green patches on each tower.
Unitech's "Close North" and "Close South" are fully functional and have been occupied by end users. In the re-sale market, the apartments are available in the range of Rs 4,800-5,200/sq ft. Vatika City is also fully occupied and a three-bedroom apartment here is available for Rs 1.05 crore to Rs 1.10 crore.
In the retail segment on the Golf Course Extension road, Emaar MGF has launched the "Emerald Plaza" mall. Unitech has launched two office space projects - Unitech Business Park and Silvertone. The capital prices prevailing in the retail segment and office space are approximately Rs 9,000 and Rs 7,000 per sq ft respectively.
Overall, Golf Course Extension road has good developers, prices are still low and with a proposed Metro, the connectivity will also be good. But the investment horizon should not be short term but long term, say 10 years.
Courtesy by : Times Property Dtd : August 21, 2010

The Haryana government is augmenting land resources for Gurgaon in the new master plan in an attempt to accommodate a projected spike in population by 2025. Despite being a parched region, Gurgaon has taken the lead in residential development emerging as the best option for both end users and also for investors. Realizing this well, Haryana government recently moved a plan to increase the residential area per acre to accommodate more people over the next 10-12 years - and there are reasons to do that. A recent National Capital Region Planning Board study has shown that the capital city of Delhi managed to see a downward trend in the population growth, particularly on account of migration, only because of people now finding space in the NCR cities.
Because of its good track record of managing the law and order situation efficiently, Gurgaon has outscored its other competitors in around Delhi. Considering the trends of people still finding Gurgaon a better option, the district administration has proposed these positive changes. The proposals provided in the new draft Development Plan 2025 of Gurgaon-Manesar Urban Complex talk of preparing the city to cater to the needs of a projected population of 39.7 lakh. The earlier Master Plan for 2021 had projected to accommodate 37 lakh people.
However, the ground reality is quite different. Rough estimates suggest that Gurgaon and Manesar put together have already crossed the 30-lakh mark. There is every probability that the population in the region will touch the 60-lakh mark by 2025.
So, any amount of planning to increase residential area in the urban complex is a welcome step, though it might not be adequate to meet future requirements. As per the proposed revised plan, 37,314 hectares would come under the planned development instead of an earlier 37,069 hectares. It would include an area of 15,009 hectares for residential purposes against the earlier earmarked area 14,930 hectares for residential development.
This means around 1,500 acres of additional area will come under residential use. Sources said that this additional land would be used for development of three major residential complexes and scores of group housing societies.
For developing commercial, industrial, public utilities, special economic zone and defence land, the allocated area, however, will remain unchanged. As per the proposed plan, which is likely to be adopted and approved by the state government, 4,283 hectares of land would be earmarked for transport and communication facilities, while earlier it was 4,231 hectares for these services. A provision of 1,642 hectares of land would be made for public and semi-public use (institutional), which will slightly increase by 12 hectares. Earlier, 1,630 hectares were proposed for institutional areas. The area for open spaces has also been increased from 2,675 hectares to 2,828 hectares.
Taking into account the rapid population growth in Haryana, the state government had revised the population density for urban complexes across the state last year. The draft development plan of Gurgaon would be prepared as per new guidelines, calculating the population density at 120 persons per acre as compared to 100 persons per acre earlier.
The existing urban area is of 406 hectares while the rural areas occupy 428 hectares. The 2021 Development Plan comprised 41 controlled areas, sources said that but since the chief minister has ordered that all the sector roads in the forthcoming new residential sectors to be developed by HUDA be interconnected, more land will be required. So, six more controlled areas have been added in Gurgaon, which have already been notified.
Sources said that to accommodate more people, the city has to follow a vertical mode of development rather than the traditional plan of horizontal development. In the last decade, Gurgaon and Faridabad had become the most sought after residential destinations for those who were ready to shell out a little more to own a plot in the NCR.
Though, even now, the HUDA has plans to auction plots in the new sectors, sources said that almost all the sectors would see the development of multistorey group-housing societies. "The development and plan to accommodate more people should also be supported by infrastructure augmentation. Water and electricity supply has to be upgraded. Only then can we can achieve sustainable development," said Bhawani Shankar Tripathy, a RWA activist.
QUICK BITES HARYANA GOVERNMENT RECENTLY MOVED A PLAN TO INCREASE THE RESIDENTIAL AREA PER ACRE TO ACCOMMODATE MORE PEOPLE OVER THE NEXT 10-12 YEARS ANY AMOUNT OF PLANNING TO INCREASE RESIDENTIAL AREA IS A WELCOME STEP, THOUGH IT MIGHT NOT BE ADEQUATE TO MEET FUTURE REQUIREMENT
Courtesy by : Times Property Dtd : August 21, 2010

From prime posh locations of Delhi like Vasant Vihar to the prestigious Golf Course road in Gurgaon, prices of housing options across the years have witnessed significant escalations.
Micro markets like Vasant Vihar have always been preferred destination for those seeking a posh address, combined with the benefits of a central location. Many residents of this colony are drawn to its accessibility, peaceful ambience and proximity to schools, hospitals and commercial centres. The evolution of Gurgaon and Noida as prominent residential destinations was historically driven by the commercial development, which fed the residential sector in these micro markets. The proximity of these markets to Delhi, coupled with the rising real estate prices in Delhi, drove the residential demand in these markets to a point that, today, these markets boast of posh and prestigious residential options that are being preferred over even those in Delhi, eliciting comparisons with the best in the national capital.
The table above captures the price trends as they evolved since 2003 to the current period, which perhaps was significant for the low housing prices that prevailed across the markets.
Vasant Vihar
Vasant Vihar continues to be preferred location for both high-end buyers and investors. Interestingly, independent floors priced at Rs 6,000 per sq ft in the year 2003 are commanding Rs 40,000 per sq ft today. Plots that were quoted at Rs 1,00,000 per sq yard in 2003 are now going for Rs 7,00,000 per sq yard. It is also important to note that these prices till 2006 had only risen marginally and have witnessed the maximum rise in the last four years. Thus, the prices have risen by seven times in the last seven years!
Noida
In contrast, Noida has doubled in apartment pricing since 2003. Noida is the only exception to the rule where the prices were higher in the year 2006 and have fallen marginally since then. The reasons that can be attributed to this negative movement in pricing are:
Residential oversupply
Low commercial development compared to Gurgaon
Perception of poor law and order
Significant distance from the Delhi airport
However, to give the market its due, overall, the residential market in Noida has doubled in appreciation for investors since 2003.
Gurgaon
The most interesting market on display is Gurgaon, which has given the maximum returns to its investors today and continues to be a very promising destination. If we evaluate the trend in the market since 2003, we see that the ultra-luxury apartment pricing has gone up by 10 times. Plotted development has seen a rise in pricing by 12 times. Plots that were priced at Rs 11,000 per sq yard in 2003 are Rs 1,30,000 per sq yard today. Thus, Gurgaon as a market has given the maximum return on investment to its stakeholders.
Courtesy by : Times Property Dtd: August 21, 2010

India is one of the fastest growing major economies of the world with a GDP growth of 6.7% in the fiscal year 2009 and an expected growth of 6.5% in the fiscal year 2010: RBI
The services sector has grown at a rapid pace in recent times. An important factor in the development of the services sector has been the strong growth of the IT and ITeS. Growth of IT and ITeS in the NCR region, especially in Gurgaon, has had positive effect not only in Gurgaon but its adjacent areas and Dwarka. Dwarka is mushrooming as the hub of commercial and entertainment activities and is amongst the most preferred locations to stay in the NCR region. And with the Gurgaon-Manesar Master Plan 2021, the region will witness further expansion of the Gurgaon city.
Therefore, automatically, a question that is being raised is on the civil infrastructure to support the traffic in and out of city. There are speculations around the viability of the NH 8 and Mehrauli-Gurgaon road in handling the traffic load; and whether the Metro line reduce the number of vehicles plying in and out of Gurgaon. Presently, the NH 8 serves as the aorta distributing the traffic approaching both in and out of the city.
However choking of this main circulating system is not uncommon, therefore the need for a parallel highway that links Dwarka and Gurgaon and frees NH 8 from its existing burden of commuters from Delhi.
The Dwarka Expressway or Northern Peripheral Expressway is an eight-lane, expressway being developed by the Haryana Urban Development Authority (HUDA) at a cost of Rs 120 crore. This expressway is a part of Gurgaon-Manesar Master Plan 2021 (Urban Complex Plan) and will connect Dwarka to the NH 8 and will have 30 metres of green belt on both sides. This will be achieved through the addition of green belt areas, an increase in the residential units and commercial spaces, and improvements in connectivity with Delhi.
Compared to 9,881 hectares in the earlier master plan, the new master plan is spread over 33,726 hectares and includes 58 new sectors in addition to the existing 57 sectors. The Gurgaon-Manesar Urban Complex Plan 2021 is unique in a way that it plans to reduce population density in the newly urbanized areas, as compared to existing urbanized districts. The proposed Dwarka Expressway is an 18km stretch of 150m wide-road starting from Dwarka, which will connect Palam Vihar and the forthcoming big SEZs in Gurgaon to join the NH 8 near Kherki Dhaula. The road from Dwarka is expected to reduce the travel time from west Delhi by half. If one stays in Dwarka, he will no longer have to hit the congested NH 8 before the Delhi-Gurgaon border and the toll bridge. The new link would be parallel to the expressway till it merges ahead of the IFFCO Chowk. The proposed expressway will touch 16 new nearby residential colonies and would also touch a commercial corridor and link with Harsaru dry port. With the land acquisition nearing completion and awaiting hearing from the court on demolition of some houses in Palam Vihar, the project is all set to provide new connectivity between Gurgaon and Dwarka and international and domestic airport resulting in increased real estate activity in the area, from Sector 99 to 115 in Gurgaon.
A number of private builders have acquired licences from the Haryana state government to develop townships beside the expressway and to connect it to the proposed Southern Peripheral Expressway. The SEZs by Reliance and Haryana government would also be its major touching points. The upcoming sectors of Gurgaon, particularly residential Sectors 102 and 103, located in proximity to the proposed SEZ area as per the Gurgaon-Manesar Master Plan 2021 will be 'hot property' in the near future.
Among the major townships that are coming up around the region and in Sector 37 are the BPTP "Spacio - Park Serene". Spread over an area of 24 acre amidst a green environment, the residential housing project offers apartment starting at Rs 25.25 lakh. Commenting on the project and its vicinity to the proposed 18km long Dwarka Expressway, Amit Raj Jain, BPTP's marketing chief, said: "Gurgaon has emerged as the hub of a 'young corporate India' and there is a huge demand for residential apartments that suit their lifestyle requirements. 'Spacio - Park Serene' has been designed to focus on the lifestyle of young buyers, aspiring to own a house in the early stages of their career. The key differentiation here is that this emerging young buyer has a far greater sense of personal space and Spacio - Park Serene has been created in a manner that provides ample indoor space - be it study corner, the lounge area, the TV room and the balcony - appealing to their individual sensibilities."
The real estate sector in the NCR, and especially Gurgaon, has grown in importance with the liberalization of the Indian economy. The consequential increase in business opportunities and migration of people to Gurgaon has in turn, increased the demand for commercial and housing space, especially rental housing. Developments in the real estate sector influence, and are in turn affected by the developments in the retail, hospitality and entertainment industries (like hotels, resorts, cinema theatres), community services (like hospitals, schools) and IT and ITeS (like call centres). Rising demand from the technology sector, demographic shift (increasing disposable incomes and urbanization), suburban developmental models and favorable government policies have changed the face of India's real estate development sector. The growing disposable income of India's middleand upper-income classes, together with changes in lifestyle, has resulted in a substantial change in the nature of consumer demands. Increasingly, consumers are seeking better housing and better amenities like schools, retail areas, health clubs and parks in new residential developments. Lower interest rates on financing from India's retail banks and housing finance companies, particularly for residential real estate, and favourable tax treatment of loans, have helped fuel the recent growth of the Indian real estate market.
The advantages of these sectors are immense if we were to compare to other sectors in Gurgaon, all the infrastructural issues like bad connectivity, shortage of power, lack of green areas and parks, low water levels, etc, are not present in this area. In fact, the lessons learnt from Gurgaon have woken up the government to go about this development in a very planned manner. Embassies are moving to this new location, owing to its excellent connectivity and proximity to the international airport too. Therefore, investment into real estate in these sectors is very lucrative and perhaps will give back returns manifold in comparison to any other sector in Gurgaon.
Courtesy by Times property Dtd : August 21, 2010

It is better to buy a first house in any new upcoming area where it is available within your affordable range rather than postponing the decision to buy one in a choice location — if it is beyond your means Buying a house is one of the most important decisions one takes in his life. It is not only about the finances but also about the selection of a suitable property, which is important to make you feel good about your decision — after all, you are going to live with it (the decision) for a long time, if not for the rest of your life (in the house).
But many a times, it has been found that the property you have selected to buy is beyond your means. And the property, you can afford, you feel, is not suitable for you. This make you put off the plan for some other time.
However, even after a few years, when your income has increased substantially, you find yourself in a similar dilemma. What is even more frustrating is that the property that was affordable a few years ago but was found not suitable at that time has appreciated substantially to become unaffordable now.
You may discover that connectivity and social and physical infrastructure of the area in which you were not interested to buy a house a few years back have improved beyond recognition. But, unfortunately, the prices of real estate in that area would also have almost trebled in the same period. What is intriguing is that prices of houses in the areas which were in the central part of the city have not appreciated that fast. But still, they remained beyond your reach.
For example a few years ago — in 2004 for instance — the price of a three-bedroom apartment in East Delhi localities like Mayur Vihar, Patparganj and Vasundhara Enclave was at around Rs 20 lakh. The price of a similar apartment in South Delhi at that time was around Rs 50 lakh. But today, the prices of apartments in East Delhi have gone up by six times and command nearly Rs 1.25 crore. At the same time, the appreciation in prices of apartments in South Delhi is not that steep. In fact, today, the prices are in the same range in both the localities. Now, what should a prospective ‘undecided’ buyer do?
Going by past evidence, it has been found that appreciation in the prices of recently developed real estate on the outskirts of a city is much faster than those in the central part. In the NCR also, property prices in Gurgaon, Noida, Indirapuram and Vaishali appreciated much faster in the last five years, than those in the central part. Now the prices in central parts of Noida and Gurgaon, which are closer to Delhi, have gone beyond the reach of the average middle class. In these areas, apartments are commanding prices of around Rs 6,000 per square feet. The sale price of a 3-bedroom apartment is over Rs 1 crore.
But, the good news for the average middle-class buyer is that a number of new projects have been announced in the affordable price range of Rs 15 lakh to Rs 40 lakh. A large number of apartments and independent houses are being developed in areas like Noida Extension (Greater Noida, Sector 1-4), Noida-Greater Noida Expressway, Greater Noida, Gurgaon Phase V, Sohna Road, Manesar, Daruhera, Faridabad-Nahar Paar area, Kundli and Sonipat, among others.
As the NCR has witnessed a spurt in infrastructure development, connectivity to these areas is likely to improve. It has been found that the local authorities are keen to bring in the Metro rail connectivity to these areas. There are reports that the authorities of Greater Noida, Ghaziabad, Meerut and Faridabad have been in discussion with the DMRC to take the Metro train service to their respective cities. Besides this, the NHAI is also working out a plan to widen existing national highways. This will be a great relief to most of the new developments, which are coming up on the outskirts of the NCR as this will reduce the travel time to the central part of the city.
Besides this, as many of developers are coming up with townships on large land parcels of over 100 acre, the provisions for social infrastructures like schools, hospitals, and local markets are also factored in. Not only this, most of the new development hubs which are underway on the outskirts of the NCR are also developing commercial properties like IT parks, hospitals, hotels and office space so that a large number of residents of the area could find employment there itself. Some areas like Kundli and Greater Noida have a number of educational institutions including engineering colleges, medical colleges and vocational centers coming up in their locality.
Many of these areas will change beyond recognition after a couple of years. Therefore, if you want to buy a house but are undecided, t ake a decision on the basis of the property's future projection. However, you must be very conservative while doing so. Don't take all the promises and projections at their face value. If an apartment is quoting at a price of Rs 3,000 per sq feet at a certain distance from the central part of a city, you can consider buying a house in a new upcoming hub at a similar distance at around Rs 2,000 per sq feet. After you get the possession in three-four years’ time from the date of your purchase, if you still want to buy a property in another area, you can sell this property with some capital gains. This, in fact, will help you in buying the new house. If it is your first house, you will not have to pay any tax as you are using the money to buy another house to live.
Therefore, it is better to buy a first house in any new upcoming area where it is available within your affordable range. As you can't shift to these houses immediately, you must make a provision for paying rent for three years. For this, you can also choose construction-linked payment. In this, your EMI will increase as the bank will release funds to developer on the basis of the completion of construction. This will save you from the payment of EMI and rents simultaneously to a great extent.
QUICK BITES GOING BY PAST EVIDENCE, IT HAS BEEN FOUND THAT APPRECIATION IN THE PRICES OF RECENTLY DEVELOPED REAL ESTATE ON THE OUTSKIRTS OF A CITY IS MUCH FASTER THAN THOSE IN THE CENTRAL PART OF THE CITY
Courtesy by Times Property Dtd : August 21, 2010

The two Delhi NCR based real estate developers SVP Group and Ashiana Homes have come together to introduce mega luxury housing project Villa Anandam on the Meerut Road, NH-58, Ghaziabad. The 198 villas will be constructed in 12 acres of land and are expected to be ready for possession by mid-2012. The total cost of this residential project will be Rs 150 crore.
Villa Anandam is well connected by rail and road as well as with other fully developed infrastructural facilities around it such as schools, hospitals and educational institutions. In the first phase, Villa Anandam will offer 125 independent luxurious four bedrooms duplex villas on 140 sq yard, 146 sq yard and 178 sq yard with a built-up area of 1,810 sq ft starting at Rs 75 lakh.
Vijay Jindal, chairman and managing director, SVP Group, said, “In the last couple of years, this location has witnessed unprecedented growth, emerging as one of most coveted destination. Villa Anandam goes much beyond quality construction, making a definitive statement in opulence and luxury.”
“Luxury residential market was never out of the scene. It was always around, the only hindrance was the people’s unwillingness to buy property because of economic reasons. But now things are getting back on track. Our this mega residential project is on NH-58, Ghaziabad ( NCR )” he added.

With the equity market holding up, some of the real estate companies are revisiting their share-offering plans, even at a price lower than what they had initially hoped for. Many of these companies already have Sebi’s approval to launch their initial public offerings (IPOs), but deferred their plans in the face of unfavourable market conditions. Companies that have the regulator’s approval with a validity until 2011 include Lodha Developers with an indicative IPO size of Rs 2,500 crore, AMR Constructions (Rs 145 crore),Delhi-based Ambiance (Rs 1,293 crore), Emaar MGF (Rs 3,850 crore), Oberoi Realty (Rs 1,002 crore), Kumar Urban Development (Rs 320 crore), Prestige Estates (Rs 971 crore), Neptune Developers (Rs 378 crore), and BPTP (Rs 1,500 crore).
“The secondary market is witnessing some euphoria, and sectors like telecom and real estate are being rerated,” said said a top official at a foreign investment bank involved in one of these deals. “Also, volatility has reduced, which is good for IPO-bound companies. We are likely to see some of the bigger real estate players come back to the market again,” he said, but also cautioned that only a few companies would be in a position to take advantage of this window of opportunity.

Bangalore-based real estate company, Brigade Enterprises has sought shareholders’ approval to raise Rs 750 crore of additional funding. The money will be raised through various instruments such as global depository receipts (GDRs), American depository receipts (ADRs), foreign currency convertible bonds (FCCBs) or via placement with qualified institutional investors.
In a note to shareholders, ahead of the annual general meeting on July 23, the company said, “The money will be used to fund the construction cost of ongoing and new residential projects, acquisition of land, repayment of debts, augmentation of working capital, investment opportunities and for other general corporate purposes.” “We will take resolution of Rs 750 crore but will only raise around Rs 350-400 crore in the first tranche,” said R J Shama Sunder, general manager, finance, Brigade Enterprises.
The Banglore based realty firm, which primarily focuses on development of residential units in South India, is also seeking shareholder approval to list its stock on the London, Singapore, Luxembourg and New York Stock Exchanges. “We have an option of looking to raise money from the international market by listing the company on foreign stock exchanges,” said Sunder.
Shareholders will be called upon to approve the appointment of KR Srinivas Murthy as one of the directors of the company. Murthy is currently on the boards of CMC, National Stock Exchange of India and Himatsingka Seide.

Ashish Gupta explains how this concept helps property owners get a regular income without having to surrender possession
Reverse mortgage is a financial product that enables senior citizens (60 years plus) to mortgage their real estate assets with a lender and convert part of the equity into tax-free regular income. This saves them from selling assets in their lifetime.
The Life Insurance Corporation (LIC) is planning to enter the reverse mortgage business. LIC's entry in this segment is significant as the life insurer has a huge base. According to the Insurance Regulatory Development Authority's (IRDA) annual report, LIC has a 29 percent share in the total new life insurance policies sold in 2008-09.
The National Housing Bank's (NHB) reverse mortgage loan-enabled annuity scheme has sanctioned 40 loans estimated at Rs 100 crores. The scheme, without the life-long payment benefit, was launched in 2007. According to the NHB, around 7,000 loans amounting to around Rs 1,400 crores have been sanctioned till March 31, 2010. It is expected that the modified scheme that provides life-long annuity to the buyer and his spouse will catch on with the entry of LIC in the segment.
With the existing scheme, LIC will provide payments in the form of annuity to policyholders. Once the assessed value of the house and the loan amount to be disbursed is decided on, LIC will start making payments till the policyholder survives. The bank will make full payment of the total loan amount to the LIC once the policy starts which the insurer can invest as per the company's investment guidelines.
In case of a reverse mortgage, the property owner surrenders the title of the property to a financial institution. The financial institution doesn't pay the entire amount to the owner upfront. On the contrary, it pays out a regular sum each month for the agreed time. The owner gets to stay in the property along with his spouse for their lifetime. Thus, the owner can ensure a regular cash flow in times of need and enjoy the benefit of staying in the property. After the owner's death, the property is transferred to the institution, and not to the heirs.
Reverse mortgage is a relatively new concept in India. The concept is quite popular in developed countries to generate cash flows.
The aim is to make immovable property more liquid and generate returns out of the asset while it is used by the owner. The amount paid out each month is for a specific period of time. The monthly payout depends on the value of the property, the term of the agreement and the rate of payment. The valuation of the property is to be done by professionals. The entire payout mechanism - calculation and computation - depends on the law of probability.
The financing institution has to bear the risk of the individual outliving the agreement. At the expiry of the agreement period, the monthly payments to the owner stops.
Reverse mortgage is of immense use in unlocking the otherwise illiquid asset. Till now, immovable property has been treated as one of the most illiquid assets. Reverse mortgage unlocks the liquidity potential of this asset. It helps the owner get good returns from his immovable property, without having to part with it. The owner can continue with the possession of the property during his lifetime.

Reverse mortgage unlocks property’s potential

A NOVEL CONCEPT
Reverse mortgage is a relatively new concept in India
It is a financial product that enables senior citizens to get tax-free regular income
The concept is meant to unlock the income potential of a property
A significant aspect of this concept is the owner retains possession through his lifetime
It makes property as an investment option work better, especially for risk-averse senior citizens
It is a popular income-generating product in the West
The monthly payout depends on the value of property
The financing institution bears the risk of the individual outliving the agreement

Courtesy by: Times Property Dtd: July 3, 2010

The issue of maintenance of rented premises depends a lot on the terms and conditions agreed upon between the parties and laid down in the lease agreement. The Rent Control Acts of various States also provide some guidance on this. According to these Acts, the landlord has a duty to keep the premises in good condition.
Every landlord is bound to keep the premises in good and tenantable repairs. If the landlord neglects or fails to undertake any repairs which he is bound to undertake, within a reasonable time after notice in writing, the tenant may undertake the repairs himself and deduct the expenses on such repairs from the rent to recover them from the landlord. This is subject to the condition that the amount so deducted or recoverable in any year does not exceed one-twelfth of the rent payable by the tenant for that year.

It is the responsibility of the landlord to ensure that the tenanted premises are habitable and safe. If need be, he should ensure that adequate repairs are undertaken to ensure this. In case the landlord is unable to do so or is unwilling to do so, the tenant may undertake these repairs. He needs to give proper notice to the landlord about this, specifically mentioning the nature of problems, the nature of inconvenience caused, the nature of safety hazards, and the necessary steps required to correct the problem. Moreover, it should be specifically mentioned that in case the landlord fails to undertake the repairs within the specified time, the tenant will have them done and will be eligible to recover the amount spent from the landlord.

However, it should be noted that this would cover only repairs which are essential and urgent. It would not cover circumstances wherein the tenant wants some alterations or additions for his convenience. The essential test is if the repairs are needed to keep the premises safe, habitable and usable.

In case any repairs are to be undertaken, without which the premises are not habitable or usable except with undue inconvenience, and the landlord neglects or fails to undertake them after notice in writing, the tenant may apply to the controller under the Rent Acts for permission to undertake the repairs himself. He may submit to the controller an estimate of the costs of such repairs. If any repairs not covered by the amount are necessary in the opinion of the controller, and the tenant agrees to bear the excess cost himself, the controller may permit the tenant to undertake the repairs.
Courtesy by: Times Property Dtd: July 3, 2010

Housing loan account for only about 7% of the country’s GDP. Housing finance regulator National Housing Bank’s executive director RV Verma says that pension funds can help channelize long-term funds for the housing sector. In a freewheeling interview with ET’s Dheeraj Tiwari, Mr Verma talks about NHB’S plants as a regulator as well as development financing institution. Excerpts:

Unlike the Reserve Bank Of India, you have not directed housing finance companies (HFCs) to come out with base rates. Why?

First, we need to see and analyse the impact of the base rate on the cost of funds for HFCs. Unlike banks, HFCs are a more heterogeneous group with wider variation in their cost and landing profile. They also have diverse source of funding and are more exposed to changes in the liquidity conditions in the market. So their cost of funds varies more. The impact of the ‘base rate’ approach vis-à-vis their housing loan portfolios, which are typically long term in nature, will also need to be closely examined from the asset-liability mismatch perspective before introducing a base rate regime.

What are you plans for the residential mortgage-backed securitization (RMBS) market?

Securitization is a very powerful instrument to augment funds for the housing sector. Home loan portfolios are good quality assets and these securitised portfolios will have high acceptability among the investors. National Housing Bank has to play an important role as an intermediary, market-maker and a credit enhancer. Pension and provident funds are natural investor in RMBS papers, which would help channel long-term funds for housing. NHB has done 14 issues of RMBS in the past and we will be scaling this up.

Are you looking at raising more capital? What has the bank’s financial performance been like?

Besides capital, we have raised funds through different sources that include term loans, issue of bonds, and public deposit scheme. We are also exploring other international borrowings including from the World Bank for low-income housing. During the current year 2009-10 ending on June 30, 2010, our funds mobilization is Rs 11,600 crore. On the assets side, we are likely to close with disbursements of about Rs 8,000 crore. We should be closing the current year with growth in loans and advances of about 18-20%. National Housing Bank’s profit after tax is likely to be about Rs 290 crore, an all time high, marking a 22% growth over last year. Our business model is that of a development finance institution operating on a high-volume and low-margin system.

Courtesy by: The Economic Times  Dtd:  June 23, 2010

MUMBAI: Real estate firm Lodha Developers will invest Rs 2,000 crore to develop the world’s tallest residential tower in Mumbai to cash in on the continued surge in home prices in India’s commercial capital.

“We will fund the project through internal accruals and pre-launch sales,” MD Abhishek Lodha told a press conference. “We are also looking at some private equity investments for the project.”

Although he declined to disclose details of the PE investments, sources said Lodha has initiated discussions with leading Singapore funds GIC and Temasek, and a property fund of mortgage giant HDFC to raise over Rs 1,000 crore.

Lodha Developers will start bookings by the end of this month and expects to complete the project by 2014. “We expect to roll out 300 residential apartments and notch sales of about Rs 5,000 crore from the project,” said Mr Lodha.
Once complete, the 117-storey tower will be close to half-a-km tall, dwarfing the present tallest residential tower, Queensland Number One, in Australia that has a height of 323 meter. Christened as World One, the tower will be higher than some of the iconic global landmarks including Sears Tower in Chicago, Jin Mao Building in Shanghai and The Empire State Building in New Work.

“It is not about the tallest tower, but we are looking at providing our customers a great experience to live in,” said Mr Lodha.

The tower will come up on the 17-acre plot of the defunct Shrinivas Mill in Lower Parel, central Mumbai, which the Lodhas bought nearly five-years ago. It will house three and four BHKs, lavish villas with private pools and some super-luxurious duplex flats.

It will have over 5 acres of landscape area, including an 80,000 square feet sports club at a height of 175 feet above ground. It will also have an observatory at a height of 1,000 ft. Flats will carry a minimum price tag of Rs 7.5 crore.

The company has hired the services of New York-based architects Pei Cobb Freed and Partners, which has completed nearly 200 architectural marvels across the globe, including Louvre Pyramid in Paris, Bank of China Tower in Hong Kong and John Hancock Tower in Boston.

“We can assure you that the building will have all the necessary safety measures in case of an emergency,” Jay Berman, partner at Pei Cobb and Freed told ET.

The company, which deferred its initial share sale last year, will launch an IPO once the market is stable, said Mr Lodha. Lodha can now ask for higher valuations due to its ownership on two iconic buildings, said owner of a real estate company who did not wish to be named.

Last month, the company bagged a 22.5-acre property in Mumbai after bidding Rs 4,050 crore in the country’s biggest land deal.

MUMBAI: Realty major, Lodha Developers, plans to build the world's tallest tower at a cost of Rs 2,000-crore in central Mumbai to be ready by 2014, a top company official said.

Lodha Developers has tied-up with New York-based architectural firm, Pei Cobb Freed and Partners and structural engineering firm, LERA, for the project, christened as World One, to be built over 17-acres at Upper Worli.

"The project pegged at Rs 2,000-crore and to be built on a 17-acre site will have the world's tallest residential tower," Lodha Group's Managing Director, Abhisheck Lodha, told reporters here today.

"We have strived hard to ensure that this development not only gains from Mumbai's energy but also gives back high quality public spaces to the city," he said.

Through the partnership with global architects, designers and engineers, the company seeks to bring to Mumbai, a landmark, which would "exemplify the spirit of Mumbai--to always soar higher through hard work and passion," Lodha said.

The company, which plans to launch a $650 million initial public offering later this year, will start bookings by end of this month and expects to complete the project, called World One, by 2014, Abhisheck Lodha told reporters.

New Delhi: The Haryana government has decided to develop six new residential sectors and three new commercial sectors in Gurgaon to meet the growing demand for housing and commercial space.

These sectors — 58 to 65 and 65 to 67 — will be developed over an area of 850.10 acres. A senior government official said that the state government has started acquiring land in eight villages around Gurgaon.

The villages are Medawas, Tigda, Behrampur, Ulvaas, Badhshahpur, Nangali Umarpur, Ghata and Kadarpur. ‘‘After the acquisition of the land, the new sectors would be developed,’’ he said. The 2021 development plan of Gurgaon-Manesar urban complex envisages doubling of the number of residential sectors in Gurgaon to accommodate more people.

‘‘We want to avoid a situation like Delhi, where residential flats and complexes are used for commercial purposes owing to lack of space,” said an HUDA official.

courtesy Times of India - Jun 1, 2010

Real estate major DLF reported a surge in profit for January- March 2010 period at Rs 426 crore from Rs Rs 159 crore a year ago. Total income for the quarter was also up by 58 per cent.
However, for the full year 2009-10, both income and net profit fell as compared to the previous year -- 25 per cent and 61 per cent respectively.

Courtesy: HT Estate Dtd:-15-05-2010

With the days of economic slowdown rapidly coming to an end, there's a housing bonanza in the offing for the burgeoning population of the National Capital Region (NCR). The Delhi Development Authority (DDA) is likely to announce a new megahousing scheme, where approximately 8,000 flats will be up for a draw. The projects are spread across the national capital in areas like Jasola, Narela, Vasant Kunj and Dwarka, among others. Of the 15,000 houses currently under construction, nearly 8,000 will be ready by June.

The ministry of urban development says that the DDA has to announce its next scheme soon to avoid watch and ward costs and maintenance cots on the completed units. Watch and ward costs entail hiring of security personnel to watch over completed units to ensure that fittings and fixtures are not stolen. These costs could run up a steep bill.

A senior DDA official said that a three month gap is usually preferred between the announcement of the scheme and the allotment of the houses. Since the houses will be ready for possession by June, the announcement is likely to be made three months ahead. Official confirmed that another 7,000 units were at various stages of completion. No formal date has been set for the announcement and the finer details of the scheme are being worked out.

The last time the DDA announced a housing scheme was in September 2008, and the draw for it was held in December. Under that scheme, 5,238 houses were up for sale and the authority received nearly six lakh applications. Officials expect the 2010 scheme to draw upwards of 10 lakh applications. In December 2008, after the last draw, a proposal was made by the DDA to the ministry of urban development, requesting a clause be inserted into future schemes, wherein houses under the SC/ST category will not be allowed to be resold for at least 15 years after the allotment. The ministry is still sitting over the proposal.

Courtesy ET Realty dtd.14-05-2010

Mumbai: In what is touted as the largest commercial transaction of 2010 in Mumbai suburbs, a brand new office building at Kalina has been sold for Rs 407 crore. Market sources said the deal was signed sometime last week. The buyer, Edelweiss Broking Ltd, is believed to have paid around Rs 20,000 per sq foot for over two lakh sq ft space in the 14-storey building, Lotus Midtown, located outside the Bandra-Kurla Complex. The building has been constructed by Anand Pandit of the Lotus Group. A real estate analyst said demand for commercial properties was once again picking up. However, he said it is mainly coming from Indian companies rather than multinationals as was the case earlier. Last February, a four-storey commercial building at Worli was sold for Rs 640 crore, one of the costliest of its kind in the country. The Wadia Group sold its property to Axis Bank, which is planning to shift its headquarters to the building. The building, Wadia Tower A, located on Bombay Dyeing Mill compound on Pandurang Budhakar Road, has a saleable area of over 4 lakh square feet. It worked out to Rs 16,000 per sq. foot. Mallya’s luxury flats to be priced at Rs 20 Cr It’s official now. Liquor and aviation baron Vijay Mallya is uncorking a Rs 1,500 crore-luxury residential play in the heart of Bangalore on Vittal Mallya Road, along with Prestige Estates. This could well be the most expensive residential project to be sold in Bangalore’s real estate history, as the asking rate per sq ft is pegged at a whopping Rs 33,000. Mallya plans to develop 75 apartments over 5- lakh sq. ft. Mallya is razing down his ancestral home spread across approximately 4 acres of land and is situated adjacent to the UB City to construct a 31 storey high -rise super luxury residential building likely ot be called ‘Residences at UB City’. TOI though has learnt that the project would have 75 super luxury apartments of 6,000 sq ft to 7,000 sq ft in size sporting price tags anywhere between Rs 15 crore and Rs 20 crore apiece. What is now known is that as part of the project, Mallya is building a 70,000 sq ft to 80,000 sq ft penthouse for himself, which will be the only home in Bangalore to have a bird’s eye view of Cubbon Park, MG Road, Vidhana Soudha, and the entire central business of the city. Also, at 31 storeys high, it could well be the only house in Bangalore that can boast of reaching to the stars. Once upon a time, the land, on which UB City and Mallya’s house are situated, comprised a brewery, belonging to the UB Group. TOI was the first to break the story on July 11, 2008.

RelaxRoy Choudhury, chairman-cum-managing director, NBCC Ltd.
While draw of lots for the first phase, where 1,100 flats were up for grabs, was held in March, the lottery for the second phase for remaining 6,900 flats would be held later this year.
The Khekra township is com- ing up on 100 acres.
This would be the PSU's sec- ond housing project in the National Capital Region.
“The shortage of housing in urban areas was the reason we ventured into the sector. Our objective is to fill the huge demand-supply gap in the hous- ing sector by providing afford- able housing,“ said Choudhury.
Last year, NBCC had launched two housing schemes -- in the mid and low end cat- egory -- in Gurgaon, Haryana and Loni, Uttar Pradesh.
In Gurgaon, NBCC is coming up with 4,000 flats for employ- ees of central government and public sector units. The flats are priced between Rs 22 and Rs 45 lakh.
Similarly, in Loni 2,000 flats are being developed in the mid segment category. Fifty per cent of the flats will be reserved for government employees while the remaining 50 per cent will be open to the general public.
These flats are priced between Rs 7 and Rs 15 lakh.
NBCC launched its first hous- ing scheme in Delhi last year where 2,500 flats, priced betw- een Rs 25 lakh and Rs 60 lakh, are coming up near the Ghitorni metro station on Mehrauli ­Gurgaon road. The flats will be ready by 2012.
Courtesy:- Hindustan Times  dt:- 14-April-2010

Lower home loan rates, property price cuts, apartment downsizing and a recovery in the job market have helped to increase demand for residential projects. On showing interests by buyers, developers and builders have launched many new affordable projects across the cities. During early period of this year, interest in properties were being shown by business class and professionals whereas service class was not showing any interest owing to risk of job layoffs. Now on diminishing the risk of job layoffs, service class has also started showing interest in properties. Low property price is another aspect which has attracted the service class to real estate sector leading to a strong revival in demand for residential apartments.

With the return of liquidity to the real estate sector in form of FDI (Foreign Direct Investment), QIPs and bank loans in recent months, the financial position of realty players has started improving. Motivated by this, the developers and builders have started launching new affordable apartments to boost the real estate sector.

RBI has relaxed certain norms for realty companies. Loans granted by banks to housing finance companies for further lending to individuals for purchase/construction of dwelling units, may be classified under the priority sector if the loan amount granted is less than Rs 20 lakh. Priority sector lending attracting lower rate of interest will boost real estate sector.

Price reduction by 20-40% depending on project location and reduction in apartment size have brought a greater section of buyers into the fold. The increasing demand has induced many builders and developers to launch many new projects. The new launch tally is on increase. Downsizing apartments has reduced the cost of dwelling units by 50% enabling a lower segment of society to select a house at a better location or at the same location but at a lower cost. Cheaper home loans have further attracted more and more home buyers.

All these aspects have shown signs of recovery in real estate sector.