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Courtesy - Hindustan - Sep -16 - 2011
Realty Biggies Home in on Small Cities for Growth

Growing demand for homes in smaller cities of the country is attracting big national real estate players. Cities like Bhopal, Bhubaneswar, Coimbatore, Indore, Jaipur, Lucknow, Nagpur, Surat, Vadodara and Visakhapatnam are expected to add 354 million sq ft of residential development in the next three years.

According to a research report by Crisil Research, large builders like DLF, Unitech, Parsvnath, Omaxe, Ansals and Emaar MGF have already diversified into these cities, with an eye on future growth. These cities today show huge potential for growth, with 2011-12 itself expected to generate sales of Rs.18, 000 crore.

These cities are attracting the big developers because of their considerable price stability and growth prospects. While prices of homes in large metros have seen a huge jump of 25-30% over the last two years, these tier-II cities have seen a moderate price increase of 10-12%. “These markets will offer stable and less volatile options for real estate developers to diversify,” says Prasad Koparkar, head-industry and customised research at Crisil Research.

The research, which covered over 500 developers across these cities, pointed out that even if there is a considerable price correction in the larger cities over the next few months, smaller cities will remain stable or at worst see a moderate decline in prices.

In fact, the report by Crisil foresees prices rising in seven of the 10 smaller cities it has identified. In contrast, prices are likely to increase only in four of 10 large cities, it says.
With economic activity picking up in these cities, there is a growing migration from smaller areas, which has created a shift towards an apartment culture. “This shift will aid volumes for larger developers in the future,” says Koparkar.

Looking at this new demand, banks and financial institutions too are looking towards these cities to bridge the financial penetration gap. At the moment, the proportion of buyers taking home loans is relatively lesser in these smaller cities. A gradual increase in penetration of home loans would also boost demand. The growth prospects in the smaller cities are attracting large developers with multi-city presence. “We had foreseen this demand in tier-II cities and are confident about their growth. The economic growth today is not just limited to the metros. Purchasing power, consumption and lifestyle changes have taken place in small cities as well. This cements our strategy of doing developments in tier-II cities,” says Dinesh C Gupta, assistant vice-president (investor relations) at Ansal API.

Ansal API has launched projects in Lucknow, Agra, Jaipur, Mohali and other small cities like Sonipat and Panipat. “A majority of our projects today are outside of the metro cities,” he adds. Local developers from these cities too are scaling up, looking at the big demand and new competition. Almost 80-90% of the new supply that is expected to hit these markets will come from these local developers, who understand the market better. Among the top 10 tier II cities, Surat, Bhopal and Jaipur are expected to get 38% of the new homes.

Courtesy – Economic Times – Dt:- 23-06-2011

On DDA waiting list? Houses are still within reach.
If you missed out on the Delhi Development Authority's (DDA) latest offer of flats, but were put on the waiting list, there is a good chance you can still get your dream house.

The verification of successful applicants is on and the DDA is every day receiving applications from allottees who want to surrender their flats. The number of such applications will be close to 200 in about a week, DDA sources said. This apart, allottees who fail to make it past the verification process will be disqualified.

Under the scheme, the DDA -the country's biggest land development agency -offered 16,000 flats. A draw of lots was held on April 18 to choose the lucky ones from 7.5 lakh applicants. Another draw was held the same day and 600 applicants were put on the waiting list.

“The number of people surrendering flats on their own is surprisingly high this time. We are receiving about two such applications every day,“ said a senior DDA official.

“Along with the surrendered flats and the allotments that might be cancelled after verification, we would be able to accommodate a sizeable number of applicants in the waiting list,“ the official said.
Explaining the high number of allottees willing to give up flats, the official said, “This time, the norms are much more stringent. Many applicants, it seems, are unable to comply with them.”

One of the new conditions is that the allotment money must be from the allottee's bank account. Also, documents will be verified by the income tax department and the source of the money has to be disclosed.

Courtesy –Hindustan Times - Dt:-23-06-2011

DLF to Sell Developed Properties

Co hopes to earn Rs. 7,000 crore in the next two years by selling its five IT parks and hotel business

In a significant shift in strategy, DLF plans to sell developed properties, including five IT parks and its hotel business, hoping to mop up. 7,000 crore in the next two years and reduce its burgeoning gross debt of Rs. 23,990 crore.

India’s largest real estate firm’s tax dues are also on the rise — touching Rs. 1,703.04 crore in the fiscal year 2011. DLF has received an additional tax demand of Rs. 546.85 crore from the income tax department in the last quarter of 2010-11, over and above the Rs. 1,156.19-crore demand made in the previous quarter, a senior executive in the company told ET on the condition of anonymity.

Last week, the company reported a consolidated net profit of Rs. 344.54 crore in the fourth quarter ended March 11, but that included an income of Rs. 93.73 crore brought into the books from the earlier years. Net profit in the corresponding quarter of last year was Rs. 426.38 crore. Fourth quarter revenues increased to Rs. 2,683 crore from Rs. 1,994 crore from the year ago period. Over the last one and-a-half years, the real estate major had already sold some non-core assets such as hotel sites in Delhi and Hyderabad as well as non-contiguous land parcels to rake in around Rs. 3,000 crore. But it has never sold its buildings and other developed assets.

The company said it could sell noncore assets “like certain IT Parks that yields low return”. “We are looking at combination of certain assets and underdeveloped non-contiguous land parcels, which are not core to our midterm strategy,” said Ashok Tyagi, DLF group chief financial officer.

The company aims to become debt free in the medium term. But to reduce its loan components and meet contingent tax obligations that may go up to Rs. 1,703 crore, it has almost doubled its fund raising target from divestment of non-core assets, the other senior company executive said.

DLF’s original plan was to raise Rs. 4,500 crore from sale of non-core assets, but now plans to raise Rs. 10,000 crore in the next 2-3 years. With Rs. 3,000 crore already in its kitty from sales of non-core assets in the last eighteen months, it is now identifying properties to raise the balance Rs. 7,000 crore.

Referring to the fresh tax demand, Tyagi said, “There are various subsidiaries involved in these cases and each of these entities have filed appeal with their competent authorities in different locations. Some of these claims are on income from Special Economic Zones, which we believe are tax-free.”

In DLF’s luxury hotel chain, Aman Hotel & Resorts, Tyagi said the plan was to divest a majority stake. But the prestigious Aman Delhi (formerly Lodhi Hotel) would not be covered by the stake sale. Investment bankers are expected to get this mandate over the next couple of months.

The five IT Parks included in the list of potential divestment have an aggregate built-up area of over 15 million sq ft. “The company is looking at high net worth individuals and leading IT companies that may be interested,” the second person said. The divestment may gain momentum in the current fiscal with higher indicative realisations for ongoing proposals and expected conclusion on some big ticket items, the second official said.

Courtesy: The Economics Times - Date: 30th may, 2011


Some factors that determine the ideal tenure of a home loan

The tenure of a home loan is a critical factor in home finance. Both internal and external factors have an impact on the cost of a loan. It is not entirely discretionary - you cannot choose what is optimum for you. What may be optimum for you may not be acceptable to the bank, and vice versa. A loan tenure is the duration of the loan. In case of housing loans, generally, the tenure is long - from five to 25 years.

Most borrowers prefer to borrow for a longer period of time. As the amount borrowed is heavy, the repayment through equated monthly installments (EMIs) is dependent on the tenure of the loan. Longer the loan tenure, lesser is the EMI. Shorter the loan tenure, higher is the EMI. For shorter loan tenures, the interest amount paid is also lesser as against a longer tenure loan.

A factor that may influence the loan tenure is the objective of the loan. Whether you intend to borrow to by a property for your own use or to buy one as an investment is relevant. Generally, those buying property as an investment go for a shorter duration loan, so as to avoid exit charges payable in case of early termination of the loan and to maintain liquidity of capital.


There are various factors that influence the determination of a loan tenure. The first and foremost is the disposable income of the borrower. It is from this part of the income that you repay the loan. So, if the net disposable income is low, it is advisable to go in for a longer tenure loan rather than opting for a short tenure one. This way, the EMI portion is reduced. The loan amount is spread over a longer period of time. The immediate burden on you is low. However, you have to pay interest for an extended period of time.

Generally, a short tenure loan attracts a lower rate of interest as compared to a long tenure loan. This is because the bank can estimate the near term interest rates more accurately as compared to long-term horizons. So, in case you have adequate liquidity and resources to repay the loan amount opt for a shorter duration loan and take advantage of the lower interest rates.

The amount borrowed also determines whether you should opt for a longer or shorter tenure loan. In case the amount borrowed is huge go in for a longer tenure loan.

Another important element to be considered is your future income. In case you are expecting an increase or reduction in your income, you have to decide on the tenure accordingly. For example, in case you are to retire in 10 years' time, you can look at a maximum of 10 years as the tenure, and may not like to stretch it to beyond the retirement age. Similarly, a 35-year-old can think of having a longer tenure loan, stretching up to 25 years, because gradually his income will also rise. In the initial years of employment, income is lower. It increases over the years. So, one may opt for a longer duration loan and reduce the present burden.

Courtesy: Times property – Dt-Date: 21st may, 2011

Priority-lending for you

This lending scheme could help you buy your dream house while you are able to maintain better liquidity

Certain sectors like housing, agriculture, small scale industries, education etc. are placed under the priority sector by the government to promote their growth and development.

In case of housing, till March 2011, the maximum loan that could be given to individuals, under this scheme, for purchase/construction of a dwelling unit per family, excluding loans granted by banks to their own employees, was Rs.20 Lakh. The finance minister in his last budget had proposed to increase this limit to Rs.25 Lakh, in view of the increase in residential property prices in urban areas. A circular was recently issued by the Reserve Bank of India to implement this proposal with effect from April 1, 2011. This limit is applicable to all housing loans, irrespective of the location of the residential property.


Priority sector housing loans enjoy a rate of interest, generally lower by 50 to 100 basis points, as compared to normal housing loans. The reduced interest rate brings down the monthly installment amount, comprising the principal and interest, for the individual. In other words, for the same installment amount, an individual can apply for a higher loan due to lower interest rate, subject to the maximum loan limit allowed.

While the change in the upper limit of the housing loan for priority sector might make little difference in metropolitan cities due to the skyrocketing prices of houses, this will increase the demand and affordability of homes in the suburban areas, especially in Tier-II and Tier-III cities, as the prices in these cities are generally lower compared to the metros.

Further, under regular home loan schemes, banks are allowed to lend up to 80% of the property value. Under priority sector lending, up to 90% of the property value can be disbursed as loan, thereby requiring himself. Therefore, his liquidity position is better in the latter scheme.

Things to remember

Due to the low relevance of the relevance of the scheme in bigger cities, the upper limit of the loan could probably be increased to, say, R40 Lakh to R50 Lakh. This will enable people to purchase/ construct houses in a city of their choice, including Metros. Also, it may be appropriate to fix a specific concessional rate of interest that would be applicable to all banks, rather than allowing lower interest rates dependent on certain basis points. This would remove the anomaly of different rates that may prevail in the market with different banks.

The objective of this scheme is to enable more and more individuals to own a house. Therefore, it may be made available to individuals who do not own a house, to ensure that the benefit of the scheme is availed of by the individuals it is targeted at. Alternatively, this scheme could be made available to individuals once in their lifetime, so that most people have the opportunity to benefit from it.

The scheme has the right vision to provide a boost to the realty sector which will have a multiplier effect on other related sectors of the economy.

Courtesy: Times property- Date: 21st may, 2011


Mumbai is the third most promising investment market in the Asia-Pacific region, according to a recent report

Mumbai is ranked third as the most promising investment market, and the first as the most favoured development market, in the recent Emerging Trends in Real Estate Asia Pacific 2011, a real estate forecast jointly published by the Urban Land Institute (ULI) and Pricewaterhouse-Coopers (PwC).

“Projections for Mumbai in 2011 look good, as the city’s investment ranking rises five spots to third,” the report states, adding that this city is “clearly the best performing and most active real estate market”, and despite some concerns about oversupply, development potential for most real estate sectors remains promising. Development in Mumbai continues to be an area of interest, with the city ranking first in the 2011 results, up from second in 2010. Oversupply continues to be a serious risk for the area, but respondents “don’t think many people are worried about real estate turning into a bubble again”.

“In terms of investment, buying opportunities ‘ring out’ in the retail, apartment and industrial sectors,” the report adds. The report also notes that India’s GDP continues to grow and shows “no real signs of declining anytime soon”. Over the past 30 years, it says, the country has managed to sustain a GDP growth rate average of 10%. Projections for 2011 are 8.5%, and forecasts are for growth of between 9% and 10% by 2015. This is a significant move from the mid-6% range found in the early 2000s.

To support this economic expansion, there has been a large amount of growth in the working population of India. Also, the government continues to make progress in introducing reforms that have helped the country introduce new private equity to capital markets, create a new platform of employment, and inject capital into infrastructure programmes. Exports of both goods and services from this region continue to increase, marking more business interest abroad.

Speaking of the region as a whole, the ULI/ PwC report also states that the “cloud has been lifted” from Asia Pacific real estate markets, with the fiscal outlook for most of the Asian countries more promising than that for Europe or the United States. “Many, if not most, Asian economies have rebounded to pre-crisis levels, and real estate markets, although mostly slower, are headed towards some semblance of normalcy,” said ULI Asia Pacific chairman C Y Leung.

“The distress that was so widely predicted a year ago for most of the region’s largest markets has by and large failed to materialize.” He said that steady activity by buyers indicates that Asia’s real estate markets “are strong enough to grow into the high expectations current pricing trends imply”, particularly because of the shortage of both housing and commercial properties that persists in many areas.

“The economies and financial systems in Asia-Pacific have gradually improved over the years. The demand for property, especially in the emerging markets, has been growing. With the release of QE2 (a second round of quantitative easing by the Federal Reserve Board) in the US, more funds are expected to flow into Asia-Pacific markets. Property would be an alternative choice of investment after equities,” said K K So, Asia-Pacific Real Estate Tax Leader of PwC. “However, investors should avoid taking excessive credit risks, and pay attention to policy changes,” he added.


The predictions Emerging Trends makes for Asia are based heavily on projections for strong activity in China and India. “I think there are buying opportunities for some time,” one investor says. The report rates Singapore, Shanghai, Mumbai, Hong Kong and New Delhi as the top five investment markets for the year:

>> Singapore, the top-rated investment market, continues to attract major investors as its financial and high-tech industries flourish. The city’s gross domestic product (GDP) growth rate is expected to finish this year in the double digits, and remain in the 4% range for the next three years. “This growth is mainly attributed to foreign awareness of the prospects that Singapore has to offer; however, domestic capital involvement seems to have increased…It’s a mature market and carries less political risk than others.” Industry sectors of most interest to investors: residential, office and retail.

>> Shanghai is ranked second for investment potential, falling from its top position in the 2010 report, which indicates that sharp increases in property prices in the city may have dampened some investor interest. Still, overall sentiment is that the city is set firmly for recovery and will remain a favoured investment target. More than half the survey respondents believe that retail is a smart buy, and more than one-third are interested in the office sector. Demand remains strong for luxury and residential properties. The city also scored high marks (ranking third in the survey) for development — particular in the office sector — despite government efforts to limit overbuilding and speculative purchases.

>> Mumbai ranked third as the most promising investment market, and first as the most favoured development market. Buying opportunities ring out in the retail, apartment, and industrial sectors in 2011. Leading the charge is retail, with over half of the respondents — a 20 percentage point increase over 2010 — believing it is time to purchase properties in that sector. “Residential real estate continues to find foreign investor favour,” one investor says. Hotel investors believe ‘buy or hold’ is the appropriate position in the market, based on hotel quality and location. The majority of survey participants believe investors in the office sector should have a hold position.

>> Hong Kong is ranked fourth for investment prospects; its global appeal is a strong factor in its economic rebound, and robust demand is driving up rents. Although the development outlook is less positive (Hong Kong ranked 12th overall for development prospects), Emerging Trends notes that the residential sector shows potential. “Hong Kong is an area where people continue to move into bigger apartments,” says the report. Among the choices of “buy, sell or hold” by property type, “hold” is the top choice among respondents for each sector.

>> New Delhi ranked second for development prospects, and fifth for investment prospects. The driving force: the government’s plans to boost infrastructure with new roads, railways and airports; and its approval of development plans for tens of thousands of acres of land for urban development. Foreign institutional capital is drawn to the city, with housing and hotels as the most favoured categories. Among all the property types, Asia’s residential sector ranked highest in both the investment and development categories. Best bets for residential investment in 2011: Mumbai, Bangalore, Jakarta and Ho Chi Minh City. Retail ranked second as the most attractive property type for investment and development. Best bets for retail: Ho Chi Minh City, Shanghai and Mumbai. “Recovery (in retail) throughout Asia- Pacific won’t be near the struggle other countries continue to face after the start of the recession in 2007. Projections suggest a jump in spending from both domestic and global consumers,” notes the report. The office sector was viewed less favourably, and ranked higher for investment prospects than development, with interest from foreign investors limited to “very, very, prime” locations. Half the respondents listed Tokyo as the top market for office investment, followed by Jakarta, Ho Chi Minh City and Singapore.

On the whole, survey participants regard Asia as the part of the world that is showing the most growth, in terms of the real estate industry. “The area’s economic expansion should be the key driver to help propel commercial real estate investments and developments across the region,” Emerging Trends says. “The real estate market is back, fund raising is strong in Asia, local banks are providing financing, and capital is everywhere.”

Emerging Trends provides an outlook on Asia-Pacific real estate investment and development trends, real estate finance and capital markets, and trends by property sector and metropolitan area. The report is based on opinions of over 280 internationally renowned real estate professionals.

Courtesy: Times property- Date: 21st may, 2011

Fire Cap to Mop Up $100 Million for Housing Projects

Fire Capital, the first private equity fund focused on the Indian real estate sector, plans to raise $100 million to invest in housing projects, as banks turn away from the debt-ridden sector leaving builders to fall back on PEs.

The firm will raise the capital primarily from its existing investors in the US to invest in tier-II and -III cities in states like Haryana, Punjab, Rajasthan, its chief executive officer Om Chaudhry told ET.

?There is an acute shortage of residential units, as India would require at least 30 million homes by 2012 to meet the existing housing need. We want to reduce some bit of the demand and supply gap in small towns and cater to the middle income segment,? he said. A majority of the homes needed are in the mid and lower income group.

Fire Capital, established in 2004, raised its first fund worth $121 million in 2006, with an ability to invest around $250 million through the co-investment commitments of its investor base. The fund is almost exhausted. It is raising the additional amount to built 25-50 acres with each builder in small towns this fiscal year. The PE fund typically works with local developers rather than large realty firms in tier-II and -III cities and takes majority equity holdings in residential projects. It selects builders to primarily get the land and then forms joint ventures where it acquires majority stake. The fund receives its return on investment once the project is sold. So far, it has invested in cities like Indore, Nagpur and Jaipur, besides outskirts of Bangalore. The real estate sector in the country was one of the biggest casualties of the global economic downturn in 2008-09 as buyers kept away from the market and banks became skittish about lending. Although recovery in the sector is gaining pace, the amount of debt in the industry is a concern. According to industry estimates, real estate firms have built up a total debt of about Rs.75,000 crore. Property developers are increasingly approaching private equity firms to complete both existing and new projects besides repaying a part of their debt. Realty firm Ansal API recently raised Rs.200 crore from Red Fort Capital to build a residential township in Gurgaon.

Courtesy: The Economics Times -Date: - 18th may, 2011

Fire Cap to Mop Up $100 Million for Housing Projects

Fire Capital, the first private equity fund focused on the Indian real estate sector, plans to raise $100 million to invest in housing projects, as banks turn away from the debt-ridden sector leaving builders to fall back on PEs.

The firm will raise the capital primarily from its existing investors in the US to invest in tier-II and -III cities in states like Haryana, Punjab, Rajasthan, its chief executive officer Om Chaudhry told ET.

?There is an acute shortage of residential units, as India would require at least 30 million homes by 2012 to meet the existing housing need. We want to reduce some bit of the demand and supply gap in small towns and cater to the middle income segment,? he said. A majority of the homes needed are in the mid and lower income group.

Fire Capital, established in 2004, raised its first fund worth $121 million in 2006, with an ability to invest around $250 million through the co-investment commitments of its investor base. The fund is almost exhausted. It is raising the additional amount to built 25-50 acres with each builder in small towns this fiscal year. The PE fund typically works with local developers rather than large realty firms in tier-II and -III cities and takes majority equity holdings in residential projects. It selects builders to primarily get the land and then forms joint ventures where it acquires majority stake. The fund receives its return on investment once the project is sold. So far, it has invested in cities like Indore, Nagpur and Jaipur, besides outskirts of Bangalore. The real estate sector in the country was one of the biggest casualties of the global economic downturn in 2008-09 as buyers kept away from the market and banks became skittish about lending. Although recovery in the sector is gaining pace, the amount of debt in the industry is a concern. According to industry estimates, real estate firms have built up a total debt of about Rs.75,000 crore. Property developers are increasingly approaching private equity firms to complete both existing and new projects besides repaying a part of their debt. Realty firm Ansal API recently raised Rs.200 crore from Red Fort Capital to build a residential township in Gurgaon.

Courtesy: The Economics Times -Date: - 18th may, 2011

Filling the gap in micro housing

After micro finance, micro housing is becoming a buzz word. The sector is not only attracting domestic companies, but also luring foreign financial service firms and institutional players.

Swarna Pragati Housing Microfinance Ltd, backed by US hedge funds, started operation a month before. It plans to offer home loans for houses priced below Rs 5 Lakh.

This housing finance company (HFC), subsidiary of US-hedge fund owned Pragati Zwarin Ltd, will initially focus on the Vidarbha region in Maharashtra. It plans to disburse Rs 10 crore of loans in the first year of operation and would venture out to other states after two years, based on experience in business.

In rural areas, every person has a shelter, which could be inadequate and substandard. What they seek is up gradation in dwelling. Incomes are not predictable beyond three-four years in rural areas.

Borrowers and lenders, especially banks, are not ready to take the liability for a long term, say 10-year, loan,? said A Ramesh Kumar, chief executive of Swarna Pragati.


As a strategy, it does not directly give a home loan to a borrower. Instead, it gives credit to mature self help groups (SHGs), as their payment history and behaviour is known. ?These SHGs, in turn, lend to members -- incremental loans with average ticket size of Rs 40,000, with three-four years repayment period,? he added.

Similarly, International Finance Corporation (IFC), the National Housing Bank (NHB) and the Rajasthan government are coming together to establish a housing finance company to provide home loans to low-income households in the state.

IFC?s own stake and mobilization through stakeholders such as NHB, government of Rajasthan, and another private sector player will help establish the company with an initial capital of $22 million (Rs 100 crore). The exact shareholding structure is under discussion. ?We are in talks with an established housing finance company, which will take substantial stake in the company to start operation,? said NHB Chairman R V Verma.

?Involvement of multiple stakeholders and the ability to build successful public-private partnerships is crucial to developing an ecosystem that will improve accessibility of housing finance and affordable housing. We will support the company through equity, training, and refinancing,? he added.

According to National Urban Housing and Habitat Policy estimates, of the total shortage of about 25 million affordable housing units in India, 98 per cent constitutes demand from economically stressed and low-income households.

?This is a first-of-its-kind model to harness market opportunities while making affordable housing loans available. If found successful, we will try to replicate in other states,? Verma told Business Standard.


Recently, non-banking finance companies (NBFCs) have shown interest in entering the affordable housing sector, which till recently, was not considered a feasible business proposition. NBFCs like Muthoot Fincorp, Mahindra and Mahindra Financial Services Ltd and even an established housing finance player such as Dewan Housing Finance Corp are extending small-ticket loans to home buyers.

?Commercial banks find it difficult to extend loans to these borrowers where the income is not documented. These firms, which offer loans of Rs 2-6 Lakh to borrowers with a monthly income of Rs 6,000-12,000, aim to cash in on the emerging middle class in rural and semi-urban areas,? said an analyst. Mahindra Finance provides loans up to Rs 3 Lakh through its rural housing finance subsidiary, Mahindra Rural Housing Finance Ltd, for renovating and upgrading existing houses.

Courtesy: Business Standard-Date: - 18th may, 2011

All about Capital gains tax

Holding property for a long period will not only give you appreciation benefits but can also mean substantial tax saving due to the differential tax rate

If you sell your house property and earn capital gains, a capital gains tax is to be paid by you. Capital gains are taxed differently depending on whether your investment is considered a long-term or a short-term investment. The timing of sale of your residential property can be an important factor in determining the overall tax cost arising on sale of this asset.

Differential tax rate based on the holding of asset criterion: If you sell a flat within 36 months of buying it, the gains are added to your income for that year and taxed @ 30.9% whereas if the property is sold after three years, a lower capital gains tax @ 20.60% would be applicable. Thus holding property for a long period not only gives appreciation benefits but can bring a substantial tax saving due to the differential tax rate.

Benefit of indexation: The benefit of indexation of the purchase cost, i.e. the adjustment to the cost with regard to Cost Inflation factor, is available only where an asset is held for a period exceeding 36 months. In other words, you would lose complete benefit of indexation factor if the property is sold before three years of its purchase. The benefit of indexation is calculated by multiplying the cost of property with the Cost Inflation Index (CII) of the year of sale and dividing the result by the CII of the year of purchase.

100% tax exemptions on transfer of residential property held for more than 36 months: Besides the above, you may have claimed exemption of tax on transfer of house property by investing the sale proceeds in purchase of a new house. This exemption may be lost where the house property is held for a period less than three years. It is also worthwhile to note that the new house should not be sold before three years of its purchase, otherwise exemptions claimed earlier would be reversed in the year in which the new house property is transferred.

Additional taxes on sale of property before five years: Another important consideration to keep in mind while selling the loaned house property is that if you have claimed benefit of deduction on the principal amount of loan repayment in the earlier years (which could be to the tune of R1 lakh), then the sale of property before five years would have additional tax implication in your hand as the earlier exemptions availed by you would be reversed in the year of sale.

Interest cost on loan property: The other factor to consider while selling a house property purchased on loan is that the Interest on borrowed capital accumulated during construction period to the extent not claimed as deductible expense from house property can become a dead cost if the house is sold within the period of five years of obtaining the possession.

Other aspects -depreciation and capital losses:

The treatment of depreciation or losses on the house property is also an important aspect that one should be aware of while determining the tax impact on use and sale of that property. The depreciation arises on account of wear and tear for using an asset. This is an allowance that can be claimed as deduction on construction cost of house property, provided the house property is used for business purposes. On the other hand Capital loss would arise at the time of sale of property where the cost of acquisition of the property exceeds the net sale consideration. Depending on the period of holding, such loss is categorized as short-term or long-term. The Income tax Act provides for a different tax treatment for adjustment of these losses against the current or future year income, depending upon the whether these losses are short term or long term in nature. This is an important aspect to be kept in mind while selling the property, something also that one should not forget to claim while filing his or her annual return of income by the prescribed due date. Hence, it would be seen that the tax impact of selling the house within three years of purchase could be the highest. However, if you defer your selling decision to a period after three years or further extend to five years, you may find greater tax saving by deferring in your timing decision to sell the house property.

Courtesy: The Hindustan Times - Date: 14th may, 2011

TDI launches tower in Kundli

TDI Infrastructure Limited in Kundli, Sonepat has announced the launch of `Signature' tower at its Tuscan City.

`Signature,' located on main signal free NH-1 (GT Road) in Sonepat will offer a limited edition of 30 premium air-conditioned 4 BHK apartments and penthouses. Conceptualized as an offer to meet the needs of special market, the home-buyers will have a full spectrum of lifestyle needs at a rate of Rs.2, 600 per square feet.

Kamal Taneja, managing director of TDI Infrastructure Limited, said ?with the launch of `Signature', we have once again created a landmark offering with the exceptional lifestyle. Strategically located on Main NH-1, Kundli, Sonepat, the new growth corridor of Haryana, `Signature' tower combines tasteful design fitted with the latest in modern conveniences, perfectly setting the tone for family living.? `Signature' tower is part of the 1250 acres of integrated township, which is just 15 minutes drive from Rohini and Pitampura. The project is close to upcoming expressways like KMP and KGP.

Courtesy: HT Estates- Date: 14th may, 2011

Is there a realty glut in NCR, Mumbai?

You could call it a buyer's n after a year that saw a price surge. Real estate industry experts say that mid-tier and high-end apartments are finding few takers, suggesting a pileup or peaking of prices that could lead to a correction in the coming months.

Industry trackers say only apartments in the Rs.2, 000 to 5,000 per square foot range are witnessing demand.

?Anything priced above is seeing fewer transactions,? said Gagan Banga, CEO of financial services firm India bulls, which also has a real estate arm, adding that the lower range flats were also growing slower this year.

Mumbai and the National Capital Region (NCR) seem to be clearly in a slump.

?Most developers present in the Mumbai residential real estate segment have witnessed a decline in sales volumes in past few months. Luckily for us we are a pan-India company and we are seeing volumes in other cities, ?said Rajendra Khetawat, vice-president at Godrej Properties.

Prices in most Mumbai areas have surged by 40% in the past year, and the average per sq ft price in the Mumbai Metropolitan Region (MMR) is estimated at Rs. 9, 300 per sq ft. ?The situation in the National Capital Region is similar and prices both cities could see a price correction of anywhere between 20% and 35%,? said Pankaj Kapoor, managing director at Liases Foras, a real estate consultancy.

While some industry insiders say developers have more staying power than they did in 2008, others say debt-laden ones may be forced by a cash crunch to offload flats at cheaper rates amid difficult capital market conditions.

Some developers have offered over-the-counter 10% discounts, said a Mumbai developer, noting that this year also saw fewer new project launches on the auspicious Akshaya Trithiya day.

?In past two months demand is back but predicting price movements could be tricky, ?said Percy Chowdhry, director, Rustomjee Group, a Mumbai based Realty Company.

Courtesy: The Hindustan Times - Date: 16th may, 2011

Future Group working on unique development model for malls

In view of rising material and land prices in India, Future Group, a leading retail-to-financial services provider is mulling an innovative mall development model that will help both retailer and developer boost bottom line growth, a top official of the group said.

The group has already worked out a format and will start developing malls over the next three-four months, the official said.

Biyani refused to divulge the financial details and names of the developers but added the would provide expertise and innovative ideas.

Courtesy: Business Standard - Date: 16th may, 2011

You can avoid making mistakes while selling your property if you follow some smart tips

PEOPLE often question "Is it a good time to buy or sell?" The reply is usually the same, "It depends on your needs."

You might be moving to a bigger house to accommodate a growing family, or to a smaller place as your children do not stay with you. Perhaps a new job has dictated a move, or you just need a change.

Selling your property at your expected price is not an easy task. Most transactions either break or end bitterly. The buyer always feels that he paid an exorbitant price and the seller always feels that he didn't get the full worth -he sold it grudgingly. While this is sadly true, it does not always happen that way and your case should also not be an ordeal.

The most important thing one needs to have is the right frame of mind. If you're not mentally prepared to sell your property, your apprehension will show on you. This will make your prospect suspicious -is there something illegal about the property? Is the seller forced to sell it because of some misfortune? Is the property unlucky? Are there any structural defects in the property that the seller is hiding?

When a prospect comes to inspect your property, he is probably more anxious than you; after all it's his money at stake and he is certainly not looking forward to some bad surprises. So make sure you're mentally prepared, and if you doing a panic selling (which you really shouldn't unless you don't have any other choice) don't let it show on you. Keeping a positive attitude will help you relax your prospect too.

Your next job is to decide on the selling price of your property. You THINKSTOCK don't want to overprice it, yet you want the best price possible. To do this, you need to study the prices at which properties have been sold in the neighboring area.

You then need to make a comparative analysis of the prices, and then compare it with your own, taking into consideration the market trends that have taken place after those deals. This little exercise can also help you arrive at a logical price -first, walk away about a hundred meters from your house. Then slowly walk back towards it, as if you're coming for the first time. Look around at the surroundings like a stranger; make notes of what appeals to you and what doesn't. ake an objective look at it -don't include your emotional attachments. We're so used to coming to our house naturally that it becomes a part of our routine -we've even forgotten the messages that the surroundings give. This exercise will help you overcome that.

Take the help of a close friend or relative and ask for tips on improving your property to get a better value. You can even think of getting your property evaluated by a certified professional appraiser.

If you're going to use the services of an agent, make the commission amount and payment terms very clear, well in advance. While quoting your price, quote a little higher to keep room for negotiation; some people would never buy at the asking price, even if they find it reasonable. Decide in advance how much you would be willing to discount below your expectations and don't disclose it until your final negotiations are on the table. Be flexible on the price, only subject to market trends.

Once this is done, shortlist on estate agent or office to sell your property. Exclusivity matters here. Properties sold under exclusive agreements usually sell for the best price in a shorter time unlike property offered to various agents in the market, as with too many agents they would like to get benefited of the deal and will start quoting lower price for your property. This actually reduces the charm of your property to the buyer. Try to give this responsibility to the trusted name in the market.

Once the deal is negotiated, sign an agreement /contract with the buyers. The same should mention all the terms discussed with the buyers and nothing should be left on verbal commitment. Always try to keep your agent as your representative in between all the meetings and discussions between you and the buyer till the transaction is closed. Everything should be in black and white on the contract paper.

Time for payment should be clearly written in the agreement or there should be a clause of forfeiture of the token money, so the buyer should not expect to get some time extension at the time of final payment.

Every investment you make in property requires your best attention. Large sums are made and lost through selling property, so learn how to avoid the above listed common mistakes. The author is managing director, Bajaj Capital

Courtesy: The India Express- Date: 14th may, 2011

SBI home loans are cheaper even without teaser rates

STATE Bank of India (SBI) will discontinue its teaser home loan schemes from the end of this month. The interest rates offered on its home loans will now be replaced by floating interest rate schemes, which are comparable with those offered by other commercial banks and housing finance companies.

All loans from May 1 will attract an interest rate of 9.510.25 per cent, depending on the loan amount. Loans up to Rs.30 lakh will be available at 9.5 per cent (one percentage point above their base rate). Loans in the Rs.30-75 lakh bracket will be charged 9.75 per cent (125 basis points above the base rate). And, those above Rs.75 lakh will be charged 10.25 per cent (175 basis points above the base rate). However, these rates would move in line with the changes in the bank?s base rate that is reviewed every quarter.

Earlier, the Reserve Bank of India had asked banks to stop giving teaser loan rates, since it believed such loans impacted the asset quality of the bank?s home loan portfolio. Teaser loans offered advances at a comparatively lower rate of interest for the first few years, after which rates were re-set at higher rates. SBI was the last one to discontinue such special loans.

Under its SBI Easy Home Loan and SBI Advantage Home Loan products, one could get loans for 8-8.75 per cent in the first three years. After the third year, the rates would get reset at the then current floating rate structure.

At 8.75 per cent, a 20-yearold loan on Rs.30 lakh would come to Rs.884 a lakh. At 9.5 per cent, you would now be paying Rs.932 a lakh. The good news is that for those who have already availed SBI?s teaser home loans and are still in the initial three years, the old rates remain applicable. The new rates will only apply to new applicants.

Among the housing finance companies, LIC Housing Finance still offers a fixed interest rate of 9.9-10 per cent for the first five years and, thereafter, the then prevailing rates are applicable. But a quick calculation on apnaloan.com showed that the average rate for a 20-year period still works out in SBI?s favour. The average rate for SBI was 9.5 per cent, while that for LIC Housing was 10.5 per cent for the same period.

SBI has also said there would be no prepayment penalty on home loans. The bank used to charge customers a two per cent penalty on prepaying the home loan. It will also introduce a graded processing fee, which it will increase according to the loan amount.

Courtesy:-business standard ? Dt:-26/4/2011

Green buildings lure premium buyers

Green seems to be the latest buzzword in the construction industry.

There are 1,046 green projects currently underway across India,“ said Shabbir Kanchwala, vice-president, project coordination, K Raheja Corp, which is developing six commercial green projects in Mumbai. “Spaces in these buildings cost marginally more than regular projects.“

Today a green property is priced 2-25% higher, depending on the rating, “ said Gulam Zia, national director, research, Knight Frank. “The ratings are based on guidelines set out by Leed-India, run by the Indian Green Building Council and based on a system developed by TERI and the ministry of new and renewable energy.“

As recently as 2000, buyers had to pay about 30-40% higher for green buildings. “Though the initial cost for developing a green building may be higher than that of conventional buildings, the long-term benefits are many. This extra cost can be recovered in 2-3 years through energy savings and low maintenance costs, “ said Brotin Banerjee, managing director and CEO, Tata Housing.

“There is a huge demand for such properties, especially among business houses who work with western clients,“ Zia added. Wipro, ITC, Infosys, Oracle, Microsoft, Cognizant, ABN Amro and TCS are developing energy efficient office spaces, campuses and special economic zones.

Courtesy:-Hindustan times – Dt:- 26/4/2011


After seeing recession in 2009, Pune real estate business the real estate market for 2011 seems upbeat and buyers are really optimistic about the scenario. There are many residential, commercial projects, SEZs and government projects are in the pipe line.

According to Jones Lang LaSalle Meghraj (JLLM) report on Pune real estate, the eastern corridor of Pune has witnessed rapid growth in commercial sector as Grade A developers have ample stock to lease in the area which enjoys an advantage in terms of social infrastructure, connectivity to other parts of the city, abundant residential options, proximity to airport and railway station among host of other advantages.

The report says that there is now increased demand for office spaces at Airport Road, Nagar Road, Kharadi in north eastern region and Hadapsar in the eastern region. In fact, most of the corporate space transactionsdealsin2009took place in Pune’s Eastern corridor (38) as against 19 transactions that took place in the Western corridor. However, unlike 2010, in 2011 almost equal number of deals is taking place in either corridors of Pune.

Hadapsar, Kharadi and Airport Road have significant market drivers to boost their long-term commercial real estate investment potential. Cases in example are Magarpatta SEZ + STPI and Eon IT Park that have ready space available for prospective clients. Other ITSEZs as well as commercial ventures are also on the anvil at Kharadi and Hadapsar, which additionally benefits from its proximity to the airport, improved connectivity,5-starhotelsandreasonablylowentrycosts.

Speaking on this, Mohammad Aslam, joint city head, Pune JLLM said, “After the downturn in 2009, Pune market has recovered very rapidly. Many commercial, residential projects are coming up and developers have ventured into news projects. Apart from hospitality and IT, companies are looking for new sectors like education, healthcare, financial institutions and hospitals as they are expanding their big townships are planned as various schools, and colleges are being developed. We now see a shift in demand towards SEZs with in larger companies. However, many companies will continue to expand within the STPI parks.

He added, "Students who studied in Pune preferred to be in the city due to good quality of life and job opportunities over here. Pune in the last five years has changed a lot and became a cosmopolitan city. Also, as Mumbai is getting expensive and reasonable property rates, Mumbai customers prefer to invest in Pune.

Information Technology:

Also, Pune continued to see majority of its demand from IT/ITES clients. In 2009, saw a total absorption of about 1.8 million sq.ft, out of which about 56 per cent was absorbed in STPI buildings. About 43 per cent of this absorption was through expansion of existing occupiers within the city, followed by 31per cent of new transactions, 24 per cent relocation and 2 per cent consolidation. Hence, 67 per cent of the total space absorbed was from within Pune. The majority of these transaction sizes were in between10, 000–30,000sq.ft Most IT operators continued to lease space. However, we saw a significant increase in the number of purchase transactions. 2010 offered very attractive purchase options; hence, quite a few companies chose to invest and own real estate assets which were likely to gain capital appreciation sooner rather than later.

As regards the supply and demand, prices are likely to remain stable in 2011 due to the availability of ample supply. Companies who are seeking to expand in the Eastern corridor are demonstrating a strong preference for scalability option within the project and efficient workplaces. Some clients have also evaluated the option of the developers carrying out the fit out works as per their specifications. Developers are addressing this demand from IT/ITEs companies by providing them large floor plates with better carpet to built-up ratio. Most clients in 2010 are also exploring the SEZ options for tax benefits.

IT Parks around Kalyani Nagar continue to be more prominent and promising commercial real estate locations in Pune as Kalyani Nagar and Vimanagar offer excellent social infrastructure, residential and retail options. Most of the expats tend to prefer living in Kalyaninagar and Koregaon Park.

The Eastern Corridor also benefits from its proximity to the airport, which attracts the cream of upcoming five star hotels. The IT/ ITES component of this area’s landscape is extremely prominent, practically defining everything that exists or is coming up there. Some of the prominent projects include - Kumar Builders’ Cerebrum IT Park, K Raheja Corp, Commerzone and Weikfield IT Citi Park by Vascon.

Hinjewadi, the IT hotbed to Pune’s northeast, is driven by the Government. This in itself will ensure that this area will continue to have everything it needs to sustain its potential as an office real estate destination parexcellence. With companies such as Infosys, Wipro, TCS and Cognizant featuring on its masthead, it needs no further credentials. Major developers such as DLF, Embassy Group and Paranjepe have already set the tone, and it is certain that Hinjewadi will attain a critical mass of good tenants in times to come.

Commenting on Punes real estate scenario, DS Kulkarni CMD DSK Group said ,"The current real estate sector is at the top most level and will continue booming. There is no recession in the markets. Recent census revealed that Pune has a population of over 40 lakh. The major reason for which is migration of people from various parts of the world. The Industrial belt, comprising of foreign companies like Volkswagon, Fiat, and Mercedes Benz etc is within a radius of 50 km from Pune. Thus, Industries and factories are running full fledged, thereby increasing employment opportunities. And, as more and more people are getting employed, arise in demand for homes are seen. Purchasing power of people from middle and higher middle class has increased. So, they can buy homes at current rates; unlike people from the lower middle class."

Most corporates continue to prefer leasing rather than purchasing space in these projects. Nevertheless, the purchase option continues to be attractive at the current valuations. Considering the growth prospects of Punes Eastern corridor, investing in self owned real estate assets is likely to yield capital appreciation sooner than later, and market valuations continue to be very attractive at this point in time.

The short-term price outlook for Punes eastern corridor and other potential-rich locations is pretty steady for all three business models - SEZ, STPI and commercial offices. However, we do see indications that prices for SEZ and STPI units may move upwards over the mid-term. Government policies will play an integral part in this price movement.

Corporate clients have been quite aggressive in securing space and approximately 600,000 sq.ft. of STPI space has been leased.

Most of the Pune-based BPOs have leased space within the Eastern corridor, and most technology-related companies have leased space in both corridors. This is a significant increase in demand and reflects the positive sentiments now prevalent on the market.

Satish Magar, president CREDAI-Pune and Maharashtra said, "There is a good demand for homes, especially by the people from middle class. Inflation in cost of material, increasing interest rates, shortage of land because of non- sanctioning of the development plan are responsible for costly homes. Land cost should also be subsidized which is possible by the concept of paid FSI." Talking about affordable homes he said, "Delay in the approval process of commencing a construction project and heavy taxes leads to rise in land price, thereby providing costly homes. The Government should also reduce the input cost, which comprises of service tax, sales tax, VAT, octroi, cess from local governing bodies, premiums and other taxes. These taxes makes the flat prices rise up to 30-35 per cent." He added, "Government should also control the prices of raw materials like cement and steal. Moreover, it should give a nudge to Vertical development rather than horizontal." According to 99acres.com, real estate portal, a survey conducted among 800 plus registered users in Pune only) of 99acres.com, revealed that this in 2011will bring back the cheer in the real estate market. 92 per cent of buyers from Pune confirmed that they plan to buy a property over the next six months. This clearly indicates that affordable housing coupled with several new launches over the next few months, has led to an overwhelming majority indicating that first half of 2011 is good time to buy property.

The survey also queried on the key criterions that are taken into account while purchasing a property. 51% respondents fromPunesaidLocationand42 percent said Price is key factor that is kept in mind before purchasing a property.

When questioned about the purpose of buying a property then 67% respondents said that they are looking to buy a property for self occupancy and 24 per cent said the reason for purchase would be investment.

Purchasing a home is a big financial commitment and when we asked buyers about the kind of budget they have in mind for buying a property thenabout42percentrespondents said there budget would be less than 20 lakhs. 43% of them said that there budget would be between Rs 21 lakh and Rs. 40 lakh and about 10 per cent surveyors from Pune said they plan to invest between above Rs 60 lakh. Thus, the real estate market for 2011seemsupbeatandbuyers are really optimistic about the scenario

Residential rentals moved up by 11 per cent in 2011 over 2010 in the Pune region:

A study by 99acres.com, estate portal revealed that the rentals for Pune, popularly called as the tech city of India have seen an escalation if we compare rents of a 3BHK residential apartment in first quarter of 2011(Jan-Feb-Mar 2011) over the same time a year ago.

Commenting on the same Vineet Singh, Business Head, 99acres.com said ""As far as rental trends for 2011 are concerned, the market will continue to see an upward movement. The Indian economy is growing at a fast pace and hiring activity is picking up and people are relocating or moving to better homes which in turn will effect the rental values of properties. Also, the state of real estate is not in trend with the moving economy because availability of fresh inventory is less in the Pune region, thus resulting in rental values to escalate on a yearly basis".

A look at the rental values of a3BHK apartment in Pune show that the up-market localities of Koregaon Park and Kalyani Nagar witness the highest appreciation in rentals of 40 per cent and 37 per cent inFY11ascomparedtoQ1-10. Similarly, areas of Magarpatta and Kharadi which are the key IT hubs of the city saw rentals move up by 10% and 5 per cent in Q1-11 over Q1-10. Pimple Saudagar and Hadaspar sawrentalsmovingupby5per cent respectively, while Aundh witnessed depreciation in rentalvaluesby4percentand Kothrud saw stable rentals in andinQ1-11overQ1-10

Retail Entry:

Two major retial giants from Mumbai has forayed into Pune. After Mumbai, Inorbit and Phoenix Mills Limited (PML)are expanding their business in Pune. Both the properties are developed on Pune Ahmadnagar road in Kharadi.

The total retail built up area for development Inorbit mall is around 5,27,000 square feet. Fully air conditioned, dedicated to shopping, specialty restaurants, leisure and entertainment, the shopping center will truly show case an international experience. It is designed by the world’s largest retail design firm Callison, USA.

Phoenix Mills Limited (PML) is also set to take on the challenge of redefining lifestyle across Tier I cities. The company initiated this concept with its property at High Street Phoenix in Mumbai ,and is now rapidly extending its presence in key metros and cities across the country through its Phoenix Market City brands.

PML operations span most aspects of real estate development from planning, execution and marketing of projects, to management and maintenance of the completed development. To intensify and expand their presence in the retail sector, the company has invested in Entertainment World Developers Pvt. Ltd. and Big Apple Real Estate Pvt. Ltd., two firms that are equally focused on developing retail and hospitality propositions across Tier-II and Tier-III cities. The company is developing over 50 million sq. ft. of space, incorporating the sectors of retail, hospitality and offices, with special focus on retail.

Courtesy:-business standard – DT: - 26/4/2011

Can register properties without structural safety certificate: Govt.

ROPERTY can now be registered without procuring a structural safety certificate, which the government had made mandatory this month, officials said on Monday.

Lieutenant Governor Te jendra Khanna has approved the government’s proposal to withdraw the order and the decision will be notified this week, restoring the earlier arrangement, a source said.

The government made structural safety certificate mandatory to ensure safety of constructions, but the Municipal Corporation of Delhi (MCD) claimed it did not have the infrastructure to issue certificates so quickly.

MCD Standing Committee chairman Yogender Chandolia had said they did not have engineers to give structural safety certificates. The Committee had also passed a resolution in this regard.

While revoking the order, the Lieutenant Governor, however, asked all civic agencies to upload on their websites a list of buildings under their jurisdiction that violate construction laws, a source said.

"The Lieutenant Governor had received a letter from the Chief Secretary citing con straints in implementing the structural safety requirement. The proposal was approved but with clear instructions to pursue defaulters," the source said.

Structural safety came into limelight after a building at Lalita Park, East Delhi, which was constructed illegally, collapsed last November, killing 59 people.

Pressured to act, the government decided to make it mandatory for all property deals to have structural safety certificates.

Though the MCD initially empanelled a few structure engineers, it later said in a city where 500 to 600 property deeds are registered everyday, it is not possible to ensure effective service with the existing staff.

Courtesy:-The Indian Express –Dt:- 26/4/2011

Can register properties without structural safety certificate: Govt.

ROPERTY can now be registered without procuring a structural safety certificate, which the government had made mandatory this month, officials said on Monday.

Lieutenant Governor Te jendra Khanna has approved the government’s proposal to withdraw the order and the decision will be notified this week, restoring the earlier arrangement, a source said.

The government made structural safety certificate mandatory to ensure safety of constructions, but the Municipal Corporation of Delhi (MCD) claimed it did not have the infrastructure to issue certificates so quickly.

MCD Standing Committee chairman Yogender Chandolia had said they did not have engineers to give structural safety certificates. The Committee had also passed a resolution in this regard.

While revoking the order, the Lieutenant Governor, however, asked all civic agencies to upload on their websites a list of buildings under their jurisdiction that violate construction laws, a source said.

"The Lieutenant Governor had received a letter from the Chief Secretary citing con straints in implementing the structural safety requirement. The proposal was approved but with clear instructions to pursue defaulters," the source said.

Structural safety came into limelight after a building at Lalita Park, East Delhi, which was constructed illegally, collapsed last November, killing 59 people.

Pressured to act, the government decided to make it mandatory for all property deals to have structural safety certificates.

Though the MCD initially empanelled a few structure engineers, it later said in a city where 500 to 600 property deeds are registered everyday, it is not possible to ensure effective service with the existing staff.

Courtesy:-The Indian Express –Dt:- 26/4/2011

When you buy property under construction

Be prepared for delays and other problems that plague such projects

When 30-year-old Gurgaon-based Vikas Aggarwal decided to buy a house last year, he opted for one that was being constructed. "I had leased a house for a year, so I thought it would be a good idea to go for a flat that is inching towards completion. The developer was offering a 15% discount on the market rate and promised to hand it over in January this year," says Aggarwal, a chartered accountant who works with an MNC. But it has been three months past the deadline and Aggarwal is yet to get possession. "Every time we go to the builder, he makes some excuse for the delay. Instead of shifting to our own house and saving on rent, we had to renew the lease," says Aggarwal's wife, Archana.

North Eye will have three parts; an East Wing and West Wing on the ground and a Central Tower. The East and West Wings will occupy the first and second floors, built to provide facilities like cafeterias, lobbies and other facilities like creche, playschool and a primary school. Central Tower consists of a waiting lounge, lobbies, cafeteria and high-end shopping area. The tower comprises fully furnished studio apartments of 520 sq ft area on level 3-19 and 21-39; level 41-58 comprises 3BHK apartments of 2,510 sq ft, 4BHK apartments of 3,350 sq ft area and 3BHK duplex condominiums of 1,675 sq ft. All the apartments will be spacious, well ventilated and artistically designed with all modern facilities and amenities.

Wake up to the reality

Aggarwal's case isn't unique. These days, project delays have virtually become a norm, which is why the buyer needs to be careful. "When you buy property during a soft launch or before launch, check the location, the future prospects of the project and whether the developer is capable of delivering on time," says Pankaj Kapoor, managing director, Liases Foras, a Mumbai-based realty research firm. "If the market crashes suddenly, or the developer runs out of money, or the bank stops funding, the project could be in a limbo," he adds.

Usually, a small developer does not have the necessary funds when he announces a project. To ensure liquidity, he tries to sell it to investors or buyers during pre-launch. If he does not get the minimum number, he may decide to postpone the project.

"Buyers should also research and verify a developer's reputation," says Sanjay Dutt, CEO, business, Jones Lang LaSalle India, a property consultancy firm. Besides, since 1 April last year, a service tax of 3.5% is being levied on property that is being built. So, a property is considered 'under construction' till the builder receives a completion certificate from the relevant authorities. Though the builder is supposed to pay this tax, it is ultimately passed on to the buyer. If a buyer purchases such a property, he has to bear the additional burden of this tax.

How to minimise your risk

Fortunately, there are certain safeguards that can help restrict your losses. To ensure that the builder is faithfully following what he has promised you, ask for a copy of the project's drawings duly stamped by the municipal authorities. The developer is allowed to make some changes in the original plan. "Certain necessary alterations are usually permitted and also mentioned in the agreement. Once the construction begins, there may be grey areas in the blueprint that come to light later," explains Dutt. Sometimes, this may involve new regulations regarding parking space or other aspects beyond the developer's control.

There are also some advantages in booking a house while it is being constructed. "Depending on the stage of construction, as well as the response that the project has already elicited from other buyers and investors, the developer could offer you a 15-30% discount," says Dutt. Niranjan Hiranandani, chairman and managing director, Hiranandani Group, says that nearly 85% of the flats in his projects are booked before the construction is complete.

Courtesy –Times of India – Dt:-25-04-2011


The place with maximum number of entry and exit points with Delhi, Ghaziabad boasts of people from all classes that are adding to city?s fast growing real estate market.

A quiet and dusty town a few years ago, Ghaziabad has now turned out to be a chic place to live in. Two places in Ghaziabad that have witnessed maximum real estate attention are the areas in and around NH-24 and NH-58. Places that used to be deserted in 2003, with a hint of development taking place, are now buzzing with real estate activity and are now commanding a premium.

Since 2003, localities like Indirapuram, Vasundhara, Kaushambi, Vaishali, NH-24 and NH-58 came into prominence and have became the addresses that people are literally fighting for.

As an option to the capital city, NH-24 and NH-58 are flourishing owing to their proximity to the capital, excellent connectivity and infrastructure development. The Delhi Metro project is also an added feather to connectivity, whereas Anand Vihar rail junction has already enhanced rail mobility. With a strong commercial catchment, a well-planned infrastructure network and an affordable price band, both regions offer several drivers to draw a homebuyers? attention.

Close to the new zones of Ghaziabad, namely Indirapuram, Vaishali and Vasundhara, a multilayered flyover at Ghazipur Chowk is being constructed with the aim of improving connectivity to NH-58.

In addition, various projects are under way at Raj Nagar Extension. A link road connecting NH-58 to the residential zone at Raj Nagar Extension is also under construction. The place with maximum number of entry and exit points with Delhi, Ghaziabad boasts of people from all classes that are adding to city?s fast growing real estate market. These places have become one of the choicest options for people working in Noida and Greater Noida, as they are close to some of the new sectors where many offices are situated.

National Highway 24

Rakesh Yadav, the MD of Antriksh Group, says: ?These are places that have seen maximum attention and boast of huge projects. Crossings Republik, Antriksh Sanskriti, Wave City and Golf Links are the major hubs getting a good response from buyers. Golf Links is a golf-centric development and a high-income project.? R K Arora, the CMD of Supertech Group, says: ?For NH-24, the real estate revolution started with Crossings Republik and is set to continue with the development of huge townships like Wave City.?

Manu Garg, the director of Landcraft Developers, says: ?We are maintaining that people get quality life that they aspire for in Golf City. Our endeavor is to see that our delivery meets the promises made to our valued customer. I personally see NH-24 as the place of future, where people will throng because of the livability factor. People have started living here and others will find it easy to move in because they do not have to wait for years to assure themselves about the security of the place.?

Wave City, a 4,500 acres township, will be among the largest integrated-city developments happening in the NCR region. In the first phase, the company will develop 1,671 acres of land consisting of around 7,500 plots, which will house plotted development, row-housing, built up floors, and bungalows. In addition to this, the first phase will have around 1.7 crore sq ft of group-housing schemes consisting of built up flats starting from 900 sq ft to 3,000 sq ft.

R K Jain, the executive director of Wave City, says: ?We will offer all the infrastructure facilities and lifestyle amenities that a person aspires to see in his neighborhood, including mechanized cleaning and sweeping, closed-loop city mass rapid transport system, approximately 2 acres of park for a population of every 400, a lake spanning 3 acres and a major road network depending upon the built-up area and population concentration throughout Wave City.? Ashwani Prakash, the executive director of Paramount Developers, says: ?As prices in this stretch are still affordable, people are keen to buy here rather than at places that have higher prices. Response to this project is heartening and people are vying to get hold of a piece of land here. One more development near NH-24 is the Noida Extension, which is abuzz because of the availability of houses for people with lesser affordability.?

National Highway 58

This place is now topping the popularity chart because it has caught the pulse of buyers; Raj Nagar Extension has lived up to the expectations of buyers who were thwarted by the high price index in other parts of the NCR. Situated on new Meerut bypass and a virgin piece of land only a few years ago, it has now a well-laid wide road that passes through it and construction activity can be seen in full swing. Also, people have started living here. Its proximity to the bypass enables people to travel to Delhi without crossing the crowded Ghaziabad.

Vijay Jindal, the CMD of SVP Group, says: ?The way this area has progressed shows that certain innovations like association of developers and a joint-action works well for the development of an area. The success of Raj Nagar Extension Developers? Association has proven the fact that it started with 12 members and now has 22 members.?

Courtsey ? Times property ? Dt:-23-04-2011


Small spaces can be family-friendly spaces and they can be great for entertaining. A small home also means lesser maintenance and cleaning time. Be proud of the small place you call home and plan the use of your spaces to have a lifetime of living pleasure.

Balcony leisure

Make the most of your outdoor space. It could be the balcony or a small garden patch in front of your house. Go out and enjoy it while you can. Houses that have rooms that open up onto patios allow indoor/outdoor living. Meals can be taken outdoors and children get away from the TV, videogames, and gadgets and breathe fresh air and get exercise. There is no better place for summertime dinners than on the patio. Even if you are only allotted a small balcony where you live, add a nice wicker chair with a cushion and some flowers and you have a great spot to read a book or just watch the passing traffic. Hang up a cosy swing chair and plug in your earphones to soothing music.

Eliminate unnecessary rooms

Most dining rooms are not used since most folks prefer TV dinners. If you already have a dining room, make it into a room that gets used often. Add some french doors to close it off and turn it into an office or a children?s play room. If you don?t have a dining room, use your eat-in kitchen or the patio.

Create seamless spaces

Make your main living spaces open to one another. Living rooms, kitchens, and eating spaces that flow together get the most use. Have an open kitchen so you could keep an eye on the kids while you are rustling up dinner. Connecting the spaces you have will make a small home feel larger.

Go in for built-ins

Built-in furniture, like desks, and storage, dressers and cabinets, tuck needed space into areas that are otherwise hard to furnish. If your house has a sloping roof, the space under this roofline becomes dead space as no one can fit in to sit or stand. But with added built-in dressers or cabinets, the space has function and helps free up other areas where a dresser might otherwise go. A properly organized closet can completely eliminate the need for a wardrobe in the bedroom.

Multi-purpose furniture

Buy a kitchen or dining table that is expandable. They not only allow for more space, they are friendly for other uses like a family game night.

Courtsey ? Times property ? Dt:-23-04-2011


A prominent developer is building North Eye, the tallest residential development with 60 floors in North India, which will rise to 225 metres in Noida?s Sector 74

Now another Burj Khalifa (world's tallest building in Dubai) can be seen in Noida. But it will not be too tall, standing at 60 floors only. This will be the NCR's tallest tower, located in Noida's Sector 74. If all goes well, in another 42 months, Noida will be a tourist attraction inviting people from all over to wonder at this spectacle.

R K Arora, the CMD of Supertech Group, says that North Eye will be the tallest residential development in North India and a one of its kind project, which will be 255 metres tall with 60 floors, spread over 9 acres.

North Eye will have three parts; an East Wing and West Wing on the ground and a Central Tower. The East and West Wings will occupy the first and second floors, built to provide facilities like cafeterias, lobbies and other facilities like creche, playschool and a primary school. Central Tower consists of a waiting lounge, lobbies, cafeteria and high-end shopping area. The tower comprises fully furnished studio apartments of 520 sq ft area on level 3-19 and 21-39; level 41-58 comprises 3BHK apartments of 2,510 sq ft, 4BHK apartments of 3,350 sq ft area and 3BHK duplex condominiums of 1,675 sq ft. All the apartments will be spacious, well ventilated and artistically designed with all modern facilities and amenities.

Arora says: "These apartments range from Rs 40 lakh to Rs 2.25 crore. The company is investing Rs 500 crore on the project. Level 20 and 40 have a club house each, luxuriously decorated multi-cuisine restaurants, international-standard pubs, gymnasiums, pool tables, cigar rooms, indoor lounges for reading and relaxation and outdoor terrace for enjoying fresh air; there will also be dance and yoga rooms, sauna and spa rooms for complete rejuvenation. Level 59 is designed to get a 360-degree view at the North Eye observatory, which is equipped with a high end telescope, with a coffee and reading lounge.

Infinity Pool is at Level 60, which will be an altogether out-of-the-world experience, where water and the sky will seem to merge into one and also an open-air restaurant for the finest dining experience and a uniquely designed helipad for the frequent urban flyers.

Also, Assotech Ltd has launched Celeste Towers in Sector 44, Noida. Sanjiv Srivastava, the MD of Assotech Limited, says: "It is being developed as a tall luxurious tower in the NCR. This 35-Level high rise will be spread over an area of 14,331 square metres. Assotech Ltd has all relevant clearances from the government authorities concerned. International consultants have been roped in to provide landscaping, interiors and lighting consultancy for the project. S K Das Associated Architects are the principal architects for the project."

Celeste Tower project consists of two 121-plus meters tall towers - Celeste Europa and Celeste Corona. Each level of Celeste Europa will have only one condominium of 4,750 square feet and there will be only thirty condominiums in all. Celeste Corona will have three apartments to a floor with each being 1,790 sq ft (Vega), 2,172 sq ft (Vesta) and 2,120 sq ft (Venezia). Celeste Corona offers state-of-the-art facilities like a health club, a swimming pool and a gymnasium at top two levels of the tower. A helipad at the 35th level will add to the USP of Corona.

Rama Raman, the CEO of Noida authority, says: "We have permitted four such projects in Noida's prime localities. North Eye is one of them. The building's plan has been cleared by the Airports Authority of India and the fire department."

Courtsey ? Times property ? Dt:-23-04-2011


Make your home inviting with colourful cushions
Easy to manoeuvre, cushions can be a great way to bring instant freshness to your home decor. Be it in the living room or the bedrooms, you can creatively throw around colourful and decorative cushions to enhance the decor element in your house.

Opt for bolder colours and prints as cushion covers to strike a difference. Colours like yellow, pink, green or different prints like a black and white combination, floral or abstract prints will impart a unique appeal to your decor. Choose according to the colour of your room. If there is too much colour in the room, you can tone it down with some neutral shades and go bright if the colour scheme is muted.

? Metallic shades and shimmer are not restricted to festive use alone. There are innumerable varieties of metallic hues that can dress up your cushions and add a glint of diversity. If you have a black and white colour scheme, cushions in gold or silver or even copper can work well. Choosing and mix matching odd shades can be done to bring home some fun.

For the kids' rooms, cushions in different shapes and sizes and covers in colourful unique prints can be brought in. Get that favorite cartoon character imprinted upon the cushion cover and see the smile on your child's face go wide! To do something different, hand paint the cushion covers yourself. Or do some different embroidery or just simply block-print them. Another wonderful idea is to create a patchwork cushion that looks not only exotic but would also reflect personal style. You could also get your family picture embossed on to the cushion cover to make it really special.

Designer cushions

Designers too are increasingly getting experimental with cushion designs. Check out for designer collection if you are looking for something really unique for your cushions. Leather, chenille, silk, velvet, suede are the richer tones that can be meshed together with different prints to create an interesting design. Cushion covers with zari borders; mirror-work or tribal motifs will impart an artistic touch to your room.

The key lies in arranging the cushions in a way that exudes both comfort and style. If there are more kids in the house, make sure the cushion cover fabric remains more plain than decorative as cushions tend to change hands very often. In the bedrooms, a bunch of cushions can be arranged over the bed to make the look inviting and cozy. Get those floor cushions in the living room to create some stylish informal seating spaces!

Cushions are a great way to bring in more colour into the house especially the ones you wouldn't think on a larger canvas. For example, colours like bright purple, fluorescent green, loud pink and an array of haphazard prints and designs could squeeze in through the way of cushions should you require to quickly infuse a little element of style. The best part about cushions is that they are easy to use, come in varied colours and shapes and can be styled creatively to blend in with the comfort you require. If you don't want to spend too much and yet bring in a visible change, just experiment with your cushions and turn it around.

Courtesy ? Times property ? Dt:- 23-04-2011


Like humans, your home plants too need some kind of tender care and pampering to withstand the summer heat, says VIVEK SHUKLA
In this sweltering summer when the days and nights are seemingly on fire, spare a thought for plants at your home, which give you such positive vibes and a cool ambience.

As the days of the summer heat are upon us, your home plants need some special care or they may succumb to the heat wave. Even in flats where there is so little space, it is a joy to see or sit close to nice potted plants with flowers. "Right from Patna days to here in Noida, I spend at least 30-40 minutes in my garden taking care of the plants. It is out of the world experience," says R K Sinha, author-turned expert on security matters.

?The ideal temperature for survival of plants is about 28 degrees celsius and they can barely survive temperatures up to 40 degrees celsius; any further increase in temperature becomes oppressive for them. And when the temperatures hovers over 45 degrees celsius, it is virtually a death knell to them. As the capital city and the entire region come under a severe and scorching heatwave, it is really a tough call for plants to survive unless one adopts special methods and care.

Kamal Saini of Masjid nursery at Pandara Road says: "Right from March to end-June, plants deserve special care and protection. This is a very crucial time for them. These four months prove really tough for them to stand up in the face of a heat wave. Understandably, they fall if they are not protected well as well as watered on time."

A landscape designer of SVP group says partial light for plants in summer is a must; it can be shadenets to cover them partially. They are to be protected under shade-nets so that the sunlight does not seep in. "The extreme heat conditions sap the energy of your saplings placed in open courtyards and balconies. Though plants need gentle sunlight to aid in the manufacture of food through photosynthesis, excessive heat will damage their leaves."

J K Jain, an architect, says that during summer months, despite all efforts leaves of small plants start yellowing. "If you notice yellowing in any plant of your home, then it is clear-cut indication that the plant has become a victim of a heat wave. It is advisable that plants should be covered with shade-net in the daytime. Apart from that, loosening of the soil every week is a must. Any non-serious attitude can ruin your plants," Jain says.

Plants with their roots in the ground fare better during summer than plants in containers. Thorny plants and those with rough leaf surface are more resistant to sun and can tolerate heat and drought conditions.

Nuzhat Alim, an amateur landscape expert and director of ALM International, points out that one must avoid chemical fertilizers in plants as they will generate great amount of heat. Heavy pruning should be avoided too as fresh growth of foliage is more prone to sunburn.

Summers months are ideal for growing lush green lawns. Most kinds of the lawns do very well in sunlight, provided they have abundant water supply to go with. Experts say that when it comes to houseplant care, watering is usually the trickiest. The amount of water will depend on how fast a plant absorbs the moisture. Obviously, a house plant that is in active growth requires more water than a dormant one. A good rule of thumb for house-plant care is that they will require more water during April to June.

Alim says that another task of house-plant care is feeding (organic fertilizers) the plant. Plants that have rooted well and are growing freely need the most feeding. This extra nourishment is needed, especially during summer months. As we are facing the heat, we can do great service to our plants if we can make some efforts to protect our plants. It goes without saying that if we take care of them, especially in these inhospitable conditions, they would also give us a lot of joy in return.





Like humans, your home plants too need some kind of tender care and pampering to withstand the summer heat, says VIVEK SHUKLA
In this sweltering summer when the days and nights are seemingly on fire, spare a thought for plants at your home, which give you such positive vibes and a cool ambience.

As the days of the summer heat are upon us, your home plants need some special care or they may succumb to the heat wave. Even in flats where there is so little space, it is a joy to see or sit close to nice potted plants with flowers. "Right from Patna days to here in Noida, I spend at least 30-40 minutes in my garden taking care of the plants. It is out of the world experience," says R K Sinha, author-turned expert on security matters.

?The ideal temperature for survival of plants is about 28 degrees celsius and they can barely survive temperatures up to 40 degrees celsius; any further increase in temperature becomes oppressive for them. And when the temperatures hovers over 45 degrees celsius, it is virtually a death knell to them. As the capital city and the entire region come under a severe and scorching heatwave, it is really a tough call for plants to survive unless one adopts special methods and care.

Kamal Saini of Masjid nursery at Pandara Road says: "Right from March to end-June, plants deserve special care and protection. This is a very crucial time for them. These four months prove really tough for them to stand up in the face of a heat wave. Understandably, they fall if they are not protected well as well as watered on time."

A landscape designer of SVP group says partial light for plants in summer is a must; it can be shadenets to cover them partially. They are to be protected under shade-nets so that the sunlight does not seep in. "The extreme heat conditions sap the energy of your saplings placed in open courtyards and balconies. Though plants need gentle sunlight to aid in the manufacture of food through photosynthesis, excessive heat will damage their leaves."

J K Jain, an architect, says that during summer months, despite all efforts leaves of small plants start yellowing. "If you notice yellowing in any plant of your home, then it is clear-cut indication that the plant has become a victim of a heat wave. It is advisable that plants should be covered with shade-net in the daytime. Apart from that, loosening of the soil every week is a must. Any non-serious attitude can ruin your plants," Jain says.

Plants with their roots in the ground fare better during summer than plants in containers. Thorny plants and those with rough leaf surface are more resistant to sun and can tolerate heat and drought conditions.

Nuzhat Alim, an amateur landscape expert and director of ALM International, points out that one must avoid chemical fertilizers in plants as they will generate great amount of heat. Heavy pruning should be avoided too as fresh growth of foliage is more prone to sunburn.

Summers months are ideal for growing lush green lawns. Most kinds of the lawns do very well in sunlight, provided they have abundant water supply to go with. Experts say that when it comes to houseplant care, watering is usually the trickiest. The amount of water will depend on how fast a plant absorbs the moisture. Obviously, a house plant that is in active growth requires more water than a dormant one. A good rule of thumb for house-plant care is that they will require more water during April to June.

Alim says that another task of house-plant care is feeding (organic fertilizers) the plant. Plants that have rooted well and are growing freely need the most feeding. This extra nourishment is needed, especially during summer months. As we are facing the heat, we can do great service to our plants if we can make some efforts to protect our plants. It goes without saying that if we take care of them, especially in these inhospitable conditions, they would also give us a lot of joy in return.





Owners of old properties have limited choices to unlock the value of their buildings.
Picture this: You own a property worth crores of rupees in a prime locality. But, you must be satisfied with the valuation only on paper. In real terms, all you get is a paltry amount ? a few hundreds or even less in some cases ? from your tenants as monthly rent.

Reason: The tenants are protected by the Bombay Rent and Lodging House Control Act, 1947, or as applicable, more commonly known as the ?pagdi? system. The Act is a state-wise subject and hence, varies across the board. It was an attempt to eliminate the exploitation of tenants by landlords by fixing the standard rents payable in the seventies. However, they have not been revised since and tenants continue to pay the low rents.

  • ? Sell off the property to the tenant: But, this will be at a discounted rate

  • ? Redevelopment:Either accept monetary compensation for sale of the land title to the developer or an apartment in the new property

  • ? Buyout: The property can be bought by the tenant. This is the most expensive option as it will not be at the market value

  • ? Wait for the building to collapse: This will not help. As even in that case, the tenant will not lose protection

?The main aim (of the Act) was the protection of tenants against unfair eviction,? says Dhiraj Jain, partner (real estate), SNG & Partners. Tenants can be evicted only in case the landlord wants to use the property for residential purposes or the tenant has breached any contractual terms. Also, a delay in the payment of rent will not count.

However, this crippled the landlords. ?The legal owner of the property may be the landlord but the ?tenancy rights? bestow an informal ownership upon the tenant,? adds Jain.

Many complain the laws are archaic and unfair to the owners. As a result, their options for unlocking the value of the property and capitalising on the boom in real estate prices are limited.


Though not the most beneficial, this is the simplest way out and quite rare, too. As the tenants have the law on their side, they may not be willing to pay a high amount for ownership. Besides, once their status changes from that of a tenant to an owner, they are liable to pay property taxes at the current levels and not the low rates offered historically.

That said, they may be willing to buy out as legal ownership can benefit them, too. For instance, they can mortgage the property and raise funds against it, which would not have been be possible as tenants.

The selling price, though dependent on the location, will be at a discounted rate, as the tenant can easily flex his muscle in such cases, says Rajesh Mehta, proprietor, Raha Realtors.


Usually, when buildings become old, members consider redevelopment or outright sale. In the former, they tie-up with a developer who demolishes the existing structure and builds a new one.

The members are rehoused in the same premises and get additional space (in excess of their existing flat area) or a monetary compensation for the same. In the second case, the builder buys out each of the flats at market price.

Both these options are available for properties under the Rent Control Act as well. Except, in the regular situation there are only two parties, the developer and the members. However, in this case, the transaction is three-way, involving the developer, tenants and the landlord.

?Builders are wary of such projects,? says Sunil Rohokale, ED, Ask Investment Managers. Reasons range from internal clashes between tenants and landlords, to delays in decision-making. ?Probably the reason why those who venture into this area prefer to buy out both the parties,? feels Rohokale. In case of an outright sale, the builder has to acquire the land title from the landlord and the flats from the tenants.

However, the project is usually more commercially viable when the tenants are rehoused within the same premises, feels Rajesh Jain, chairman, Neumec Group. Builders get extra floor space index (FSI) as an incentive only if they rehouse the tenants in the same area and convert them into owners. ?There are no clear norms about the additional area given to the tenants or the landlord. This depends on the negotiations,? adds Jain.

The landlord can either accept monetary compensation in lieu of the land title or an apartment in the new construction.

What if the building collapses? This does not mean that the tenant loses his protection under the law. ?In such situations, he can easily say he was willing to pay the rent but the collapse is beyond his control. He will, therefore, be included in any redevelopment or sale and the resultant profits,? says Anil Harish, partner, D M Harish & Co Advocates.

Anyway, such cases are extremely rare. In fact, as Rohokale says, ?Here the tenants are quite forthcoming for negotiations. And matters can be resolved much faster.?

Courtesy ? Business Standard ? Dt:- 22-04-2011


Invest in property that suits you

ET Realty helps you choose a property to suit your needs
Investing in property is a dream everyone nurtures from the day they start getting an income. When this dream gradually starts translating into a reality, and the time finally comes to start looking for property, the questions that arise are many. Apartment or plot, renting out the property or staying in your own home - these are some of the questions that many investors have in mind. To get a fair idea of what you are looking at, and the type of property you are seeking, you need to ask the right questions.

Will you be able to repay your home loan while you stay in the new home, or would you rather rent out the premises and let the rent help you pay for your EMIs. If you are looking at buying an apartment, or a plot, you will have to consider how you will manage your finances and sustain your present lifestyle.


The quality of the neighbourhood in which you buy will influence both the types of tenants you attract (if you are looking at renting out) and the kind of returns on investment you will be getting. For example, if you buy in a neighbourhood near a college, the chances are that your pool of potential tenants will be mainly made up of students and that you will face vacancies on a fairly regular basis. Locations with growing employment opportunities tend to attract more people - meaning more tenants. Check the potential neighbourhood for current or projected parks, malls, movie theatres, public transport hubs like the Metro and all the other perks that attract buyers.


Get all the information about new development that is coming or has been zoned into the area. If there are many new business parks or malls going up in your area, it is probably a good growth area. However, watch out for new developments that could hurt the price of surrounding properties - road widening.


When buying an apartment, look for amenities within the apartment complex, location and quality of construction work. Potential tenants will want the apartment to be furnished with wardrobes, utilities in the kitchen and bathroom furnishings, so make sure that the apartment has these fit in. Also keep the necessary lease documents to be signed by the tenant and you in order so that the formalities can be done immediately.

Ahmedabad's property scenario is quite bright and is flourishing in leaps and bounds. Almost all the factors are favouring the growth and expansion of realty development here. One can say that Ahmedabad's property picture is booming. Because of the strong political backup, the benefits the developers are getting are quite effective. Ahmedabad as a city is slowly taking steps towards betterment in terms of quality development, modern facilities and designing. In the post earthquake period the mindset of people has changed. People don't tend to buy highrise apartments and so Ahmedabad lacks highrise buildings like Mumbai, Delhi and Bangalore. It is extremely important that this frame of mind be changed, because now the quality of the buildings and raw materials has improved immensely.

Although the government is favouring the real estate growth in the city, the increase in the cost of raw materials and increase in service tax leads to expensive property rates. And also the royalty amount which now the developer has to pay to the government should be minimized to make cost effective infrastructure. Courtesy - Times property – Dt: - 16-04-2011


Land loan to buy residential site

ET Realty explains how you can get a loan to buy a site and build a house on it
Most banks offer loans to people who wish to buy a piece of plot to construct their dream home. Available to salaried and self-employed people and also to NRIs, land loans enable you to purchase a residential plot of land.


A person who wants to buy an agricultural land cannot avail a land loan. A land loan is exclusively meant to purchase plots for residential purposes. Some banks require the land to be within municipal limits. Further, some banks add restrictive clauses that require the purchaser to begin construction on the land within six months to a year.

There are a few factors that influence an individual's decision to construct his house himself. The price situation is one. Investing in a plot and building a house yourself can at times be less expensive. Also, you can pace the construction to suit your finances and economic constraints. Building an independent home enables the owner to implement his creative ideas in design and colour schemes. Further, you have the flexibility to postpone major expenses, improvements and expansion to a later date.


The rate of interest charged on a land loan is on a par with the rate charged on a home loan. Unlike home loans, you cannot claim income tax deductions on interest paid on land purchase loans. When you take a loan for construction on the site, you become eligible for tax break. Here you can claim tax benefits on both loan for land purchase and loan for house construction. Tax deductions will be applicable only in the year in which the construction is completed after submission of completion certificate from authorities concerned.


People who seek a loan to buy a plot have to pay a larger down payment. The loan-to-value (LTV) ratio is often as high as 70%. Usually, a person seeking a home loan has to make arrangements for only 20% of the cost of property.


It is prudent to hire the services of a lawyer to verify legal documents associated with the plot of land. Verify the layout drawing of the site as approved by the town planning authority, and no encumbrance certificate of the land. Other property documents include original documents pertaining to ownership of land, revenue receipts, land records and tax receipts.


Original site ownership documents, tax receipts for taxes paid by the owner, layout drawing, revenue receipts, no objection certificate from society for sale and transfer of land, and no encumbrance certificate for the land.
Courtesy: ET Realty -22/4/2011


Buy or rent in Delhi NCR?

Does buying a house make sense in some Delhi NCR areas where rents are higher than capital values?
If you are confused between buying a property or renting one, take a look at your finances first and then check out the area where rents have increased more than the capital values. As per the Buy Vs Rent index (MBRI) designed by Makaan.com, rents in areas such as Ghaziabad and Greater Noida have risen higher than capital values. Meanwhile, in west Delhi and north Delhi, Dwarka and Gurgaon, capital values have grown faster than rental values.

Buying options in Delhi

NCR's sub-cities -Noida, Gurgaon and Faridabad -are recommended for buying as against renting. Typically, if the MBRI for a city/ subcity is between 1-20, it is much less expensive to buy a home than to rent it.

Property seekers looking at investing in these areas are advised to buy property rather than rent there.

Neutral areas in Delhi

The sub-cities of Ghaziabad and Greater Noida have emerged as neutral areas.
These sub-cities have an MBRI of 21-25, which denotes that it is relatively more expensive to buy a home than to stay on rent. This is a neutral range and property seekers looking at investing here are advised to take the final decision based on their financial situation.

Rental destinations in Delhi

According to the report, houses in sub-cities of east Delhi, north Delhi, south Delhi, west Delhi and Dwarka are recommended for renting over buying. These sub-cities have an MBRI value of over 25, indicating that it is way more expensive to buy a house here than to stay on rent. Property seekers investing here are advised to stay on rent rather than buying property.

Shifts over the past quarter

If one compares the current report with the previous report (released for the period October-December 2010), one can see that MBRI for sub-cities of Ghaziabad and Greater Noida has dropped by four MBRI points. This indicates a rise in rentals over capital values, making these sub-cities relatively less attractive for rentals.

On the other hand, the subcity of west Delhi has seen a rise by three MBRI points and north Delhi, Dwarka and Gurgaon have seen MBRI go up by two points. This indicates that capital values in these sub-cities have risen more than rentals, making it relatively more attractive to stay on rent.
The report was released for seven Indian cities. The MBRI for Ahmedabad (19), Bangalore (18) and Chennai (17) shows an overall preference for buying versus renting. MBRI for Pune (24) and Hyderabad (25) suggests neutral territory and MBRI for Delhi NCR (28) and Mumbai (26) shows an overall preference for renting over buying.
Courtesy - Times property – Dt: - 16-04-2011

Credai makes carpet area mention mandatory

IN an effort to change perceptions and build trust, 6,000 real estate developers across the country, who are members of the the Confederation of Real Estate Developers? Association (Credai), will sign on a self imposed code of conduct that embraces best practices in the business, the core team of Credai said at a press meet in Delhi.

By signing this code of conduct, developers will commit to the sale agreement they sign with buyers, specify the carpet area of dwelling and also provide detailed break-up of the room sizes, specify when they will deliver the project, spell out the penalty for the developer for delays as well as for the customer if he defaults on payments.

?We want each developer to sign on the code of conduct within six months,? said Credai national president Lalit Kumar Jain and asked consumers to buy a flat from a builder who is not a Credai member. This has already become a norm in cities in the South and the West. Jain urged consumers to take up their grievances with a builder at Credai?s consumer redressal levels at the local or state level before going to courts.

Credai wants to set up consumer redressal cells in every state to address consumer disputes. Such cells have already come up in Karnataka, Tamil Nadu, Maharashtra, Andhra Pradesh and Kerala. Credai is also working on model agreement that could be adopted by its members, though this would be different across different micro-markets.

Courtsey ? Business Standard ? Dt:- 14-04-2011

New norms slow down property registration

Sanction Plan, Safety Certificate Needed Now

New Delhi: Registration of property transactions has witnessed a steep decline in the capital after the state government made it mandatory to produce a building sanction plan and structural safety certificate as a prerequisite to any form of registry. In nearly all districts, the sub registrar offices have seen the number of registrations come down sharply. Some offices are witnessing registration of just 7 to 8 each day against the previous average of 100.

The Delhi government?s revenue department on March 30 issued an order banning registration of transactions of all structures not supported by sanctioned building plans or where sanctioned plans show major structural deviations. The government particularly looked at the cases where structural deviations were non-compoundable in nature. ?Now the vendor and vendee are also required to furnish a certificate of structural safety issued by the competent authority,? stated the order.

The decision was taken after a review showed unchecked growth of unsafe and unauthorized construction. The Lieutenant Governor of Delhi, Tejendra Khanna, in a review meeting held in January, emphasized the need for a special task force to crack down on land sharks and unauthorized construction. The issue of introducing stringent measures to focus on structural safety was also discussed. The March 30 order of the state came as a follow-up action to the meeting.

Since the order came into the force, the offices of the sub registrar?s, which witnessed frenzied activity earlier, have seen little business as most applicants still come without the requisite documents. In southwest district, nearly 80 to 90 property transactions were registered every day before the new norms were implemented. In comparison, only seven registrations took place at the officer on Monday. The number was 10 on Tuesday. In east Delhi too the situation is same. While earlier over 100 registrations took place, the number has now come down to 10 now

According to sources, the problem lies in the fact that most properties that have sanction plans lack structural safety certificates as this was never asked for earlier. But now faced with this directive they are caught in a dilemma.

Ramesh Kant, a resident of Paschim Vihar, explains it. ?My father built the house we live in. It is over 30 years old. Now we want to sell the house. But a visit to the registrar?s office has put us in a dilemma as they want a structural safety certificate. We have all other documents, including a sanction plan. Now who would give us a structural safety certificate for a 30 year old construction? I want to sell it to a builder who would be demolishing it to rebuild on the land and I feel spending money on reinforcing the house to get a structural safety certificate may not be of much use,? said Kant. Others like him feel the intent is good but its execution didn?t take into account the ground reality and the practical problems.

The revenue department has written to the MCD, asking it to empanel more architects and engineers. Senior officials in the department said they had expected the registrations to come down after the directive. But with Delhi falling in seismic zone IV, the government can?t ignore the structural safety anymore, said an official.

Courtsey ? Times of India ? 06-04-2011

Presence of seller and buyer must during registration

New Delhi: From now on, documents will be accepted for the purpose of registry at the office of the sub registrar only if an applicant or purchaser presents himself to the staff. The new directive of the revenue department is part of measures taken to crack down on touts acting as middlemen at the sub registrar offices in nine districts of the capital.

To ensure that the applicant is not harassed, a five-day period has been fixed for delivery of documents from the time of acceptance of the same by the staff. The order states that failure to comply with the directions will invite disciplinary action. The order states documents will be accepted from and delivery will be made only to the applicant or purchaser, unless the documents are presented by a person duly authorized through a special power of attorney by the applicant.

The attested photographs and signatures of the authorized person should be provided by the applicant along with the written instructions for delivery of documents. ?Even if the applicant authorizes any other person to present or receive documents, the formal cash receipt of documents against which delivery is to be made will be handed over only to the applicant and no one else,? says the order.

Besides regulating the application process, the revenue department has also decided to regulate the delivery of the service to the applicant. To cut down on red tape, it has been decided that delivery of documents will be ensured ?as soon as possible but in any case within a maximum of five days of its acceptance for registration.?

Courtesy ? Times of India ? 06-04-2011

Real Estate: Bargain hunting

Companies in better shape; key players plan to halve debt burden by 2012-13.

Nothing seems to have gone right for the real estate industry in the last couple of years. All the excesses of boom times are coming back to haunt the players. From rising interest rates to an inventory build-up, the industry has remained under pressure. The Realty Index is close to its October 2008 lows, suggesting investors are risk averse and are expecting a repeat of 2008-09.

According to some foreign brokerages, reality isn?t so bad. While high inflation and interest rates coupled with corporate governance issues may act as a negative overhang for the sector, valuations look attractive now. Unlike the past, when valuations were mostly based on land bank sizes alone, now analysts look at numerous parameters to arrive at valuations. For instance, Standard Chartered Equity Research has adopted a VALLCRAB matrix to assess companies in this universe. This matrix examines visibility on projects, asset turnover, leverage, land bank quality, cash flows, return on equity, annuity stream and breakeven analysis.

The biggest overhang for most realty stocks has been the high debt on their books. With real estate prices touching new highs, after the peak of 2006-07, buyers have deferred purchase decisions, causing a build-up of inventory. The debt burden of eight companies ? DLF, Unitech, Indiabulls Real Estate, HDIL, Oberoi, Sobha and Prestige ? is close to $3 billion, which has to be repaid between FY12 and FY13. Analysts believe free cash-flows of these companies are not enough to repay and, thus, most of this debt will have to be refinanced or converted into new debt for new projects.

According to Standard Chartered analysts, DLF and Unitech look most under pressure as the cost of debt will inch up. Players may face some stress in the first quarter of FY12 as repayments come up in this period. Amongst listed players, during FY12 DLF, Unitech and Sobha need to repay Rs 2,600 crore, Rs 1,000 crore and Rs 550 crore, respectively, says Religare. Of this, Unitech and Sobha need to repay Rs 300 crore and Rs 200 crore, respectively, in the first quarter of FY12.

But the good news is that despite the debt burden, some companies will have positive free cash flows over FY12-14. Consequently, analysts estimate the sector?s gross debt/equity ratio to halve from 1x in FY09 to 0.5x by FY12E, primarily due to the increase in net worth led by capital infusion. Undoubtedly, inventory levels have gone up for both commercial and residential real estate; analysts believe these levels are not as bad as they were in 2008-09. With residential stocks at 11 months of sales (lowest since September 2008), the market is clearly not very heavy on inventory. Certain micro markets like Hyderabad do suffer from low absorption and high inventory.

Analysts expect pick up in commercial real estate once there is clarity on the direct tax code. While commercial inventory at 61 months looks high, it is widely believed that much of it is at IT SEZs, currently unoccupied due to uncertainty over DTC. Strong momentum in the IT sector would translate into accelerated demand for commercial space especially in the IT hubs of Bangalore and Chennai.

Courtesy ? Business Standard - 6th-04-2011

Consult Experts While Buying Land DDA

Be wary of fraudulent dealers while buying land to build your dream home, says VIVEK SHUKLA

Are you planning to buy land to build your dream home? Do you know the kind of precautions you are required to take before sealing the deal? More often than not, people are hardly aware of the issues involved in the process of buying land.

Sadly, lack of knowledge has made many a land buyer an easy prey to shady characters resulting in huge losses. Recently, there was a case reported in most of the papers that some crooks had sold Army land in Faridabad to unsuspecting people and pocketed huge sums of money. As the realty scene booms in the NCR, many dubious people are on the prowl. The land and building racket department of Delhi Police's economic offences wing (EoW) has seen a 40% rise in land-grabbing-by-impersonation cases in the past year. In Gurgaon too, at least 50 cases of fake deals were registered in 2006 as against 82 in Delhi. In 2009, nine complaints of land and building scams were received by the EoW in Delhi while the figure was 58 in 2005.

Needless to say, people invest in land either for constructing their dream homes or for speculative gains. There is nothing wrong in this kind of thinking, but there is an urgent need to be extra cautious while investing in land, as land dealings are complicated and the authorities have little control over the haphazard development of residential layouts, says S K Gambhi, an eminent lawyer. If you are planning to buy a site, select a layout approved by local authorities and one with a particular number approved for sale. Collect copies of property documents and various approvals obtained by the developer and engage an expert lawyer to verify the title to the property.

If the layout is large, the developer may not part with copies of property documents and in such a case, collect copies of project approval letters issued by banks and home finance companies (HFCs).Engage the services of an advocate for verifying the original title deeds to ensure that the developer has not mortgaged the property for getting project finance. If project finance has been obtained, ask your advocate to verify original title deeds at the bank or HFC, which has granted the finance. Ensure the release of the mortgage on the property selected by you before the sale deed is registered in your favour. As fake documents and fabricated approvals are common, let your advocate visit the DCs office to verify the approvals obtained by the developer.

Select a layout which is fully developed, even if the cost is 10-15 % more than that of layouts under development, as this will remove all apprehension about the developers ability to complete the work as promised, within the specified time frame. Don’t get carried away by the attractive prices (which may be up to 50% less compared to neighbouring layouts approved by the local bodies) and assurances of approvals in the near future by a developer who has developed the layout using short-cut measures,  as explained earlier. It is advisable to select only an approved layout. Talking about capital, it is said that the target areas are the high value properties in posh South Delhi colonies. The main victim in these cases is the buyer and not the bona fide owner. A police officer explains: The owner gets the sales deed based on forged papers cancelled. Though he faces harassment, the true loser is the person who has bought property from fake owners. He is forced to return it and also loses his money.

All said and done, it is not a child’s play to buy land. Be careful and seek the services of a realty expert to clinch the deal.

Courtesy ? Times Property ? Dt ? 02-04-2011

Documents You Need For Society Property

ASHISH GUPTA outlines some documents you need to ensure that the sale is in order while buying a property in a housing society.

In case you are buying a flat located in a registered cooperative housing society, some documents are required and you should ensure they are provided to you.

The chain of original conveyance and sale deeds from prior purchasers and sellers of the property is needed. In case the seller has lodged the original deeds for registration with the sub-registrar, he should provide a copy of the conveyance and sale deeds along with photocopies of the receipt from the sub-registrar where the documents have been lodged for registration. This will give you an idea of the transfer of ownership of the property.

Missing documents are a hindrance while disposing of a property later. A property with clear documentation and title commands a higher price in the market compared to one with a title defect.

These are the major documents you need to ensure are in order: Share certificate issued by the society in favour of the seller indicating his membership to the society. No objection certificate from the cooperative group housing society certifying that the society has no objection to the transfer of the share in favour of the purchaser. The certificate should also certify that the seller has no defaults or dues to his credit to the society. Copies of stamped receipts of payments made to previous sellers.

In case you are buying a flat in a society that has not been registered as yet, these documents should be obtained:

Transfer permission from a competent authority - development authority or society signifying ownership of the seller.

Copy of approved building plan and occupation certificate issued by a competent authority to the seller 
Original stamped receipts of payments made to previous and present sellers by the builder or the development authority

The chain of previous agreements with past owners in original with original receipts of registration or the original letter of allotment issued to the first owner by the development authority

In case the latest agreement is pending for registration with the Registrar of Assurances, the original receipt issued by the sub-registrar acknowledging the receipt and pending registration needs to be shown along with a certified true copy of that agreement

Documents indicate legal status

These basic documents will give a good idea of the legal status of the property to a purchaser. After this, the rate may be negotiated between the parties. These would include the consideration payable, the stages in which it is payable, and the mode of payment.

The parties can then proceed with entering into an agreement to sell to put the terms and conditions in black and white further, the preparing of the sale or conveyance deed and agreement should be initiated.

The society membership transfer form for transfer of ownership needs to be duly filled in and signed by the seller as well as the purchaser.  It should be submitted to the society for necessary action.

Courtesy – Times property – Dt-02-04-2011

HRA Is Exempt From Tax

ASHISH GUPTA explains how the exemption against HRA is arrived at, and the conditions to be met to claim the exemption

House rent allowance (HRA) is a form of allowance employees receive.HRA is exempted from tax under Section 10(13A) of the Income Tax Act. The amount of exemption is taken to be the least of amount of HRA received, excess of rent paid over 10% of salary, and 50%of salary in case the employee resides in a metro city. Otherwise, it is 40% of the salary

For the purpose of HRA, salary means basic salary plus dearness allowance and commission, which is based on turnover achieved. One important condition is that you should have paid the rent for the house in which you live. Only such rent is considered for exemption. If you are staying in a house for which no rent is paid or payable, then HRA exemption is not available to you.

Only the period for which rent has been paid is taken into account to calculate exemption, irrespective of the number of months for which rent has been paid as advance. For purpose of deduction of tax, payment of rent by an employee drawing more than Rs 3,000 as HRA should be verified through rent receipts, though no rent receipt is required to avail the HRA perk.

No portion of HRA will be exempt from tax if an assesses lives in his own house or in a house for which no rent is paid by him. Also, if the actual rent paid by him is equal to or less than 10% of his pay. In other cases, exemption of HRA received is permissible to the extent admissible by applying the formulae.

HRA is received from an employer by an employee as a part of the salary package, with the terms and conditions of employment.HRA is given to meet the cost of rented premises taken by the employee for his stay.

Exemption rules

HRA exempt is the least of:

The actual amount received by an assessee in the relevant period during which the rental accommodation was occupied by him during the previous year The amount by which the expenditure actually incurred by an assessee exceeds one-tenth of the salary due to the assessee in the relevant period.

In case the accommodation is situated in Mumbai, Kolkata, Delhi or Chennai,50% of the salary due to the assessee in the relevant period.

In case the accommodation is situated at any other place, 40% of salary due to the assessee in the relevant period As long as the rented accommodation is not owned by the assessee, the exemption of HRA will be available up to the limits specified.

How it works:

Assume, during the year 2010-11, a person who resides in Bangalore gets a salary of Rs 8 lakh as basic and Rs 4 lakh as HRA per annum. He pays an actual rent of Rs 3 lakh per annum.

In this case, the HRA exempt would be calculated as:

Actual HRA received: 

Rs 4 lakh Excess of rent paid over 10% of salary: Rs 2.2 lakh (Rs 3 lakh less Rs 80,000 which is 10% of salary).An amount equal to 40% of salary (as the accommodation is in Bangalore): Rs 3.2 lakhs (40% of Rs 8 lakhs Since of these amounts Rs 2.2 lakh is the least,it will be allowed as a deduction from salary for the year.


The deduction against HRA is not available in case an employee lives in his own house. The deduction is also not available in case an employee does not pay any rent for the accommodation used by him. The deduction will be available only for the period during which the rented premises is occupied by the employee, and not for any period after that.

Courtesy – Times Property – Dt-02-04-2011


DDA eases norms for conversion of property

New Delhi: - Here’s good news for Delhi-ites looking to convert property from leasehold to freehold: the Delhi Development Authority (DDA) has reduced working days for completing the process of conversion, from 90 days to 45 days.

The land agency has also changed ownership norms due to which it has now become easier to sell properties. Owners can convert property on payment of a conversion charge and sell it without any hassles.

DDA vice- chairman G S Patnaik said: “We have started reviewing the processes of various transactions in DDA so that people face no inconvenience. As a large number of grievances pertain to cases of conversion from leasehold to freehold in the housing department, the whole process of conversion was reviewed by identifying the components of the process, devising a flow sheet and assigning new time schedules for expediting each component by the concerned department. The time has now been reduced from 90 days to 45 working days for completing the process.”

Owners will need to have all documents, such as sale deed and power of attorney, when applying for conversion. A no- objection certificate will be needed if the property is mortgaged. Conversion will not be allowed if there is a legal dispute over the property title.

The department concerned will be held accountable for any delay. “An office order has been issued to all departments, specifying time allotted to each for expediting the components they are responsible for,” added Patnaik.

The charges for residential properties vary from Rs 27,720 to Rs 4,575 per sqm depending on the locality earlier, all flat or shop owners were joint owners of the land. To sell a flat or shop in a multi- storey building, approval of all owners was a must.

Courtesy - The Times of India-31st march, 2011
Gurgoan metro rolls out in 2013
Gurgaon Metro Rolls Out In 2013
Come 2013 and Gurgoan may finally have its very own metro system on Monday, Rapid metro rail Gurgoan Ltd which is building the first private metro in the millennium city- unveiled the first look of the trains that would be playing on the private network. The aluminium-bodied trains, fitted with air-conditioning to cope with temperatures reaching 50’c or above during peak summers, have been procured from Siemens and boast of several new-age features. Sarvesh Tiwari of rapid metro rail said. “The network is scheduled for completion by the first quarters of 2013.”

These specially-designed coaches will have humidity control inside the coaches, with temperatures being maintained at 25 degree Celsius and relative humidity at 60% during summer and Mansoon. The coaches are reportedly less noisy on the tracks-a must since the 5-km stretch has residential sectors along it. “The noise level will be less than 80 decibels. A new type of compressor system, which is sealed and more compact, will be used in the air conditioners.”   Said the spokesperson.

“The bodies are designed to be scratch-proof, making it low maintenance in the long run.”  Said  Tiwari, adding that the aluminium coach will be first-of-its kind in the country. Talking about the capacity of the coaches, Tiwari said.” The RMGL trains will have a capacity of approximately 1,000 passengers and will reach a maximum aped of 80kmph (designed speed 90kmph).” Also, to reduce overhead electricity losses and give a better look to the metro lines will draw power through the railway  tracks(called ‘third rail’ placed as a grid between the rails).” The power input for trains is 750 VDC from a third rail, which is used typically in a mass transit or rapid transit system that has alignments in its own corridors, fully or almost fully segregated from the outside environment,” he added.

Talking from the security point of view, all trains will have CCTVs fitted inside coaches apart from cameras outside the coaches so that the driver can monitor entry/exit of passengers.

This is the first private fully-financed metro project in the country. The project is to be completed within 30 months from the day of signing of agreement, the Haryana CM had stated earlier. The 5 km metro link is expected to benefit Gurgaon citizens,  specially those staying in DLF phase-2, pahse-3 and udyog vihar, starting from sikanderpur, the metro will run in loop covering DLF phas-2, belvedere tower, gateway tower, mall of India and DLF phase-3

Courtesy: Economic Times - 23rd March, 2011
Invest in a house to increase the green quotient of your bank A/C

Through a hailstorm of bouquets, brickbats, controversies and triumphs, the Indian real estate sector has always been one of the mainstays of the country’s economy.

While the changes suggested in budget 2011 were not sweeping, a significant boost is the credible interest subvention on housing loans where the interest rate subsidy of 1% has been extended to loans of up to ` 15 lakh  (it was at ` 10 lakh earlier) in cases where the cost of the house does not exceed ` 25lakhs.

Assuming an interest rate of 10%, what this really means for the common investor is a potential annual saving of ` 15,000 on a loan of ` 15 lakh   ( for a house costing not more than `. 25lakh). Additionally, the priority sector lending limit for housing units has been raised from Rs. 20lakh.

The incentives introduced in the budget are in addition to some very sought- after tax breaks, which are already available in the law. A housing loan is repaid usually by way of monthly installments, which include a principal amount and the interest thereon. While the repayment of the principal amount is eligible for deduction up to ` 1.5 lakh for self occupied property. For a let-out property, the actual amount of interest paid is deductible and thus for many investors taking up a loan and putting the property on rent may be a good cost benefit decision as the resultant loss can also be set off against his salary income.

Most of these benefits, except the tax break on the principal repayment, have been retrained in the proposed new law the Direct Taxes code (DTC) which is effective from April 2012.
There are however, a few myths that need to be shattered- while owning one self- occupied property is exempt from tax under the Act as well as the wealth tax provisions, additional properties(land as well in case of wealth case) may be subject to both income and wealth tax. Where on the one hand , you would be required to declared the fair rent the property would have derived, irrespective of the actual letting out position, on the other hand, the additional house property would be subject to a wealth tax at the rate of 1% ( over `30lakh). There are planning opportunities possible and it makes sense to consult an expert before one take the plunge.

And if you are looking to sell, then such sale  proceed (net of cost of acquisition and expenses on sale) would be subject to capital gains tax at the rates prescribed under the law.
However, if you invest the proceeds held for a long term (three years as it stands today) in another house property, then a roll over exemption is also available for reinvestments. There are changes proposed in the DTC, but quite a few of the principles have been tweaked and retailed, making these provisions more beneficial.

So the next time you get lured by the promise of quick gains, step back and think of how you can plan and still emerge with more green in your bank. 

Courtesy: Economic Times - 23rd March, 2011

Golden Tabacco gets nod for pact with realty developers
Cigarettes and tobacco products manufacturer Golden Tobacco has received shareholders’ approval to enter into a pact with realtors Sheth Developers and Suraksha realty to either jointly develop or sell 7.7 acres owed by the company at Vile Parle suburb of Mumbai.

The company itself forayed into real estate business in 2007- 08, when its Hyderabad propert was also offered joint development of a commercial complex there.

Golden Tobacco had announced last year that is offering vile parle property also for joint development and has tied up with a reputed builder of Mumbai to develop this. According to a company official , Golden Tobacco had signed a memorandum of understanding to this effect subject to shareholders’ approval and received an advance of ` 100 crore. The production at the plant was stopped in April 2010 and its has been shifted to the company’s Vadodra and Palghar units.

Courtesy: Economic Times - 24th March, 2011
Always Read the fine print in Home Loan Documents
Zeroing in on the ideal home and getting just the right amount to finance its purchase is every Indian’s dream. However, buying a house is a big decision and one that typically entails availing of a huge loan with a lengthy repayment period of 10-15 years. The sheer size and long –term nature of this debt should make one think long and hard before signing on the dotted line since it will impact your finances for several years. However, chances are that many don’t.

There is a tendency to assume these are standard contracts that do not warrant enquiries beyond the interest rate or the repayment schedule. But it’s critical to read at least the sanction letter. If not the entire contact along with the annexure to comprehend the other nitty- gritties. For instance, the bank may charge consultations or inspection fee, apart from the more commonly known processing fee. Or, you may be billed for any tax paid on the interest amount. Some home loan contracts also require the borrower to keep the bank informed about any change in his/ her status of employment, business or professional. The bank may insist that you should send a communication within seven days of such a change.
It could also stipulate that in the event of the borrower quitting the current job or opting for retirement, the entire amount would become due with immediate effect. Further, it could state that any amount that the borrower is to receive fro his/her employer will have to be directed towards the repayment.

Usually, however, banks refrain from resorting to such means to recover dues and restructure the repayment schedule instead. At your end, it’s best t read all the clauses in your loan agreement carefully to avoid shocks later. In fact, even before making a loan application, you can procure a draft copy of the home loan agreement to understand the possible terms and conditions. The branches of the lending institution should be able to make an unstamped copy available to you. A thorough understanding of the fine print will help you stay alert and taken action if the bank crosses the line.

If you feel your bank is I n breach of any clause in the loan agreement. You can approach the banking Om-budsman or the consumer courts. However, before that, make sure that you have exhausted all the redressal mechanisms that the bank has put in place.

Courtesy: Economic Times - 24th March, 2011
HUDA floats tender for Northern Peripheral Road

GURGAON: After a long delay, the Haryana Urban Development Authority has invited tenders for the much-touted Northern Peripheral Road (NPR).

This stretch will connect Dwarka with National Highway 8 at Kherki Dhaula.

According to the tender document, March 7 is the last date for submission of tenders by private players. The road is being developed under the public private partnership (PPP) model.

The HUDA is expected to open the tenders on March 15.

HUDA floats tender for Northern Peripheral Road

The detailed document inviting tenders mentions that the project has to be completed within 12 months from the date of awarding of the project.

The NPR stretch has been planned as an alternate link road between Delhi and Gurgaon, and is expected to ease the traffic situation on the Delhi-Gurgaon Expressway.

Sources said that the construction of the peripheral road had been a priority for the state government, considering the major residential and commercial development happening along this corridor.

The road will also provide connectivity to the much-touted Reliance-HSIIDC SEZ besides the Garhi Harsaru dry depot.

A senior government official said, "A lot of time has been lost due to protests from affected property owners on this stretch. Now we want to expedite the work. The infrastructure development is crucial."
The HUDA tender also clearly mentions that the successful bidder will also have the responsibility to maintain the road for five years.

"Maintenance work will include repair of any potholes or depression, removal of all defects such as defective material, bad work man-ship and defective work/design, which will be done by the contractor free of cost. The contractor will be bound to repair road cuts also," the document said.

Source - Times of India - Feb -17 - 02-2011


Courtesy: - Hindustan-dt-10-1-2011

Slums, home to the urban poor, evoke an image of filth, discontent and inhuman living. But can't these large chunks of land be channelized creatively to create better living conditions or alternative housing units - what is happening to slum rehabilitation ET Realty takes stock

Remember how the slums in Janakpuri were cleared, when residents relocated to Shiv Vihar and a super-specialty hospital was erected there. But how many slums have been redeveloped after that, is the question.
Delhi has around 900 slum clusters housing almost a fifth of its population. The Delhi government is now trying to redevelop 30 clusters and for the first time they have involved private developers in these projects. Several real estate firms, including India's largest real estate developer like DLF, Omaxe and Raheja Developers have shown interest in slum redevelopment projects.

Why is slum rehabilitation projects generally stuck up at design, conceptualization and initial stages and not pick up the way they should. On the face of it, it should be something that developers should die for and vie for as in a slum rehabilitation project, the biggest cost head, land, comes free. A developer is expected to build houses for the slum dwellers and in return get a portion of the total space for development which it can sell at market rates. The developer gets higher floor area ratio (FAR),that is permission to build more floor area on a piece of land in a slum redevelopment project, and thus books higher margins in these projects. So, theoretically, for any developer slum rehabilitation should be a very attractive prospect. However, the return on these projects is qualified by the fact that there are huge payouts as too many parties are involved, and such projects are not at all funded by financial institution. Also, it's tougher to execute such projects as they are fraught with issues of getting the consent of 70% of the slum dwellers, face opposition from political interests as well as voluntary organizations.

A developer who bagged one such slum project, asking not to be quoted, reveals how they have been running from pillar to post to find an alternative place to relocate the slum dwellers so that their houses could be constructed. But there has been absolutely no progress and there seems little hope. For getting their plans cleared, realty firms are stuck up with the development authority because there are several interpretational issues with respect to clearance of building plans under slum development programme. The disillusioned builder says: "Whereas people talk of higher margins in SRA projects, we are putting questions on rationality of such schemes unless there is a compatible policy of government officers to let things happen, and not to bring in the political interest which they are apparently trying to balance."Mumbai has far greater experience than Delhi in SRA. There are nearly 100 slum pockets under development out of which 60 proposals have been passed and are under construction.

Health experts attribute slums to be the primary cause of deaths in Mumbai, most of which happen due to malaria and dengue. With so much happening in Mumbai on SRA front, the positive part is, In Mumbai rehabilitation process, machinery has been oiled and the laws are in place, where as in Delhi, the rehabilitation process has no precedent.

Experts feel that most often than not, in slum rehabilitation projects, the urban poor are at the receiving end and they only move from the devil to the deep sea. According to Amit Mookim, director of Strategic and Commercial Intelligence at KPMG India Private Limited: "Relocation sites often provide less access to basic amenities than the original slum clusters. Many a times, there is sheer ghettoization instead of good living conditions and what is compromised in the actual implementation by the builder is quality of construction, design, ventilation, sanitation and hygiene and basic amenities. Besides, as they are next to up market societies, they create pressures in society."

For the government too, the challenge is on countless fronts; first, to rehabilitate people during construction, that is relocation of slum clusters, in situ up gradation of slum clusters and informal shelters, and the extension of minimum basic civic amenities for community use. Also, the number of people could be enough for a small township, so managing the numbers can be difficult.

Dharavi,one of the most ambitious slum rehabilitation projects in the world is on 600 acres of land. The problem here is that it is not just a matter of residential zone, but they will have to incorporate the loss of earnings by creating an industrial zone and a leather zone apart from a huge township. Dharavi is a non-moving duck, says Jock in Arputham, who has worked for more than 40 years in slums and shanty towns, building representative organizations into powerful partners with governments and international agencies for the betterment of urban living. Arputham is the president of the National Slum Dwellers Federation and bemoans the interference from political parties and the huge corruption prevailing as the root cause for much delay in these projects.

Others corroborate that a builder with the blessings of his political mentors bags a projects and then executes it manipulating all laws, plans, and shares profits with his mentors in the end. As a result, the redevelopment is of another kind, not in favour of the slum dwellers in some cases.

Jockin says that the most important thing he has achieved is the recognition of the role of the community.He strongly advocates community participation and the building of houses by the community itself."Why are houses of masons (most slum dwellers are masons or people who can easily work and learn this) being built by someone else "asks Jockin, adding,"We approach the government and say 'please leave building houses to us'. We have found a solution by organizing the community, keeping good quality control and costs low.This also gives the community a sense of ownership, makes them agents of change instead of being at the receiving end."

As against Mumbai, where the slum clusters are spread out in size, in Delhi the size of the slums are small and are therefore relatively less attractive. Nevertheless, Delhi's slum redevelopment projects too are likely to offer high margins and thus attract private developers' interest.

Recently, DDA awarded 5.22 hectares (13 acres) project at Kathputli Colony near Shadipur Depot in West Delhi to Raheja Developers for Rs 6.11 crore. Under the scheme,the builder pays only Rs 6.11 crore - the bid amount - for the land, but has to build 2,800 houses, each of 30 sq metre, for existing slum dwellers of Kathputli Colony (named after its majority residents of puppeteers and craftsmen).In the bargain, the builder gets for commercial exploitation 10% of the total space earmarked for 2,800 homes and also close to a hectare for high-end residential development. Therefore, the cost incurred in building 2,800 homes for slum dwellers will be offset by the sale of commercial space (offices, shops) and high-end houses in the project, while land came dirt cheap at Rs 6 crore. Is it true that developers vie for such projects as they get access to cheap and strategically located land and earn a high margin, as high as 80%,compared to 35-40 % in other realty projects.

Government has a huge role to play in laying done standards in construction, in utilities and in hygiene for such projects and ensuring better structures in SRA projects.

Courtesy: - ET REALTY - dt-17-12-2010


Along the skin of South Delhi,0 Km from DND Toll Plaza, located between the DND Flyway and Sector 15A,Noida,is this first mixed land use destination of Delhi /NCR. Slated to redefine the real estate market, Delhi One will showcase commercial spaces, 150 units of serviced luxury apartments, two 5 star hotels and leisure and entertainment avenues

The 3C Company has announced the launch of their new project Delhi One. This 12.5 acre mixed land use project is adjacent to the DND Flyway, in Sector - 16 B, Noida. The company will be developing this project in association with Red Fort Capital and its sale value would be Rs 5000 Crores.
Keeping in line with its tradition of designing architectural marvels, The 3C Company is all set to take the Green Revolution several notches up by launching Delhi One, which is envisaged as 'the destination' for the privileged few. Contemporary chic design and intimate interiors will be elemental to this refreshing retreat. Destined to be unsurpassed, Delhi One will witness the rendezvous of the discerning enthusiasts.

Speaking at the launch, Vidur Bharadwaj, Director, The 3C Company said, "Delhi One is the epitome of The 3C Company's architectural excellence. The exceptional design leads to the seamless integration of the various verticals; residential, commercial, hospitality and retail into one stunning visual treat which is bound to change the way NCR has been perceived. The architecture of Delhi One does not only mark the grand emergence of Indian developments but also symbolizes India's transformation.

Taking the 3C's connection with nature forward, the design philosophy of Delhi One is driven by the five elements of nature i.e. the pancha mahabhuta, or 'five great elements'. These five elements are kshiti or bhumi (earth), ap or jala (water), tejas or agni (fire), marut or pavan (air or wind), shunya or akash (aether/space/sky).

Defined as compact, mixed use, urban and a green development, Delhi One is segregated into Domicile, Entertainment, Leisure, Hospitality and Business First. These sections of Delhi One perfectly synchronize with and are directly related to the elements of nature.

Domicile - Privileged Living | Serviced Residencies

In the lap of luxury, elected few always find their way. These 150 fully furnished spacious and splendid serviced apartments with high end luxurious amenities will soon be the prestigious address for a discerning few. Some features include - concealed parking, pedestrian friendly, gym/spa, concierge service/housekeeping, exclusive business areas, wi-fi connectivity, sports courts / swimming pools, security and fire safety provisions, professional facility management and medical touch point.

Entertainment - Amphitheatre | Shopping | Fine Dining

When it's about entertainment, It's sure to be the talk of the town. Delhi One will witness the reinvention of this city's indulgences. The high street retail, theme shopping streets, high end restaurants, wine lounge, cigar lounge, anchor store, food court, ports courts, swimming pools etc. are just a few ways that will see the city delight its senses and pamper itself.

Leisure - Art Gallery | Culture Center

Renaissance - the rebirth or the revival of art and craft, of literature and learning, of theatre and culture. Delhi One will play host to the culturally rich events that the city has been urging for. Art exhibitions, classical performances, theatre and drama, library and book stores will create an aura enough around themselves to allure the city's who's who.

Hospitality - 2 Five Star Hotels | Sky Bar

In hospitality, the primary thing is service. Delhi One will showcase one of the finest chains of hotels providing five star luxury services along with service apartments. To emphasize on the holistic approach towards body, mind and soul, DELHI One will also offer a synergic blend of therapeutic and rejuvenation treatments based on traditional Indian Ayurveda and Oriental spa rituals complimenting the best in the industry. Health club and gymnasiums will come as an attachment for all those at Delhi One.

Business First - Office Towers | Business Suites

Strong coffee aroma, permeating the hallways and well designed office floors, steady stream of cars zooming down to the spacious parking terminal, huge atrium of a five star lobby, this is the Numero Uno office address for you at Delhi One. The commercial space at Delhi One comes attached with a helipad and a medical touch point. The inbuilt health club and gymnasium along with roof top not only add on to the beauty of the complex but also make sure that all those at work here spend some non working yet official relaxing hours too.

Brijesh Bhanote, Senior Vice President, The 3C Company further added, "Along the skin of Delhi, right next to the DND Toll Plaza, Delhi One is destined to change the way Noida has been looked upon. The perfect amalgamation of unmatched location, design and product mix is bound to make it the most sorts after destination. Delhi One marks the beginning of a golden era not only for the 3C Company but for the entire real estate."

Delhi One carries with itself the urge of excellence into exclusivity, of refinement into preciousness, of elegance into class and convention. Designed to gratify the senses, this contemporary masterpiece is extravagantly lavish in all the aspects.

While others measure their success by their land bank, 3C is counting the Green Buildings they are developing. The accolade of being the sole squad in the entire Asia Pacific, which has three platinum and two gold rated LEED certified Green Buildings by IGBC (Indian Green Building Council) under the umbrella of USGBC (U.S. Green building Council),not only testifies the impeccable architectural excellence of The 3C Company but also echoes its concern for the environment. Green Boulevard, one of the Platinum Rated Green buildings of The 3C Company, is under the process of getting Carbon Credits. This would be India's 2nd building to get carbon Credits. The 3C Company's recently launched Green Residential projects in Noida - Lotus Boulevard, Lotus Boulevard Espacia, Lotus Panache, Lotus Zing and Lotus 300 have not only brought a paradigm shift in the real estate sphere in the last one year but are also moving ahead at a fast pace to take the shape of Green Landmarks of Noida.

The 3C Company's holistic perspective as a responsible corporate balances the development of NCR along with creating a healthier and greener planet.3C's recent social campaign - Earth| Water is an effort to inculcate wider audience to Preserve Earth and Conserve Water, thereby leading them to Think Green and Live Green.

Courtesy: - ET REALTY - dt-17-12-2010


Have natural, non-toxic materials in your decor theme to make your home a healthy place

The use of natural material can create a more relaxing and low stress environment, in contrast to man-made laminates. Maximum use of natural elements like sun and wind; appropriate use of colours, furnishing materials, lighting systems, regulated use of mechanical and electronic gadgets - these are all things which define a healthy home. Improperly maintained gadgets used indoors as well outdoors can increase the level of chemical pollutants indoors, affecting the air quality and ultimately our health.


Avoid chemical air fresheners- instead, use baking soda or any other natural fresheners or simply open the windows for some time. Choose toxic-free upholstery, furniture, carpets and curtains that don't contain brominated flame retardants, stain repellents or wrinkle-resistant treatments. Another great way to reduce toxic exposure is to have lots of house plants. House plants clean air by absorbing chemicals and converting them into food and energy. It is recommended that homes have two to three houseplants per 100 square feet of room space. Also, use organic paints and treatments. Allow natural regulation of indoor humidity. Use real wood rather than pressed particle board.


All colours have varied wave-length and energy output. Hence, keep a balance in the colour schemes you choose for interiors. Neutral background of white and cream tones gives a calm pristine quality to the room, with little tones of vibrant colours.


Keep your house warm and dry with the help of exhaust fans if the number of doors and windows are not adequate. By increasing ventilation, the relative humidity could be reduced and mould growth could be prevented. Soft furnishing containing synthetic material including foams release various unhealthy gases over time. Avoid plastic food wrap, non-stick cookware etc. in kitchens, wrinkle-resistant sheets containing formaldehyde or made with pesticide treated cotton in bedrooms could help you maintain a healthy indoor air environment.

Courtesy: - ET REALTY dt-17-12-2010

Rising prices and land availability may just turn out to be spoilers in the quest to provide affordable housing for all.  JUDE SANNITH S takes stock of the situation 

One of the major factors affecting affordable housing is land be it land availability, land-accessibility or cost of land the question of land always comes into the picture when plans for a housing-project are drawn up. That this land factor should play such a vital role when affordable housing projects are concerned only underlines the importance of planning and provision of substantial portions of land on which such housing projects may be developed. With land prices within the city ever on the rise, the CMDA (Chennai Metropolitan Development Authority) has had to make a few adjustments to help establish affordable housing in the city, "While preparing the Second Master Plan, we have taken into consideration the high land value and construction cost," says Susan Mathew, vice chairman of CMDA, adding, "The review of space standards were made and the plot size for residential construction has been brought down from 90 square meters to 80 square meters. For EWS (Economically Weaker Sections) it is retained as 20 square meters in Chennai city and 40 square meters in the rest of the Chennai Metropolitan Area (CMA)."

    Cross-subsidization (the practice of charging higher prices from one group of consumers in order to subsidize lower prices for another group) is another strategy adopted by the CMDA to combat land prices and rising costs, as it advocates the Jawaharlal Nehru National Urban Renewal Mission's (JNNURM) strategy which stipulates a minimum of 20 to 25% of developed lands in housing projects for EWS and Lower Income Groups (LIG) with a system of cross-subsidization. This strategy has takers, as cross-subsidization is being looked upon as an effective method of making land and building material affordable to those belonging to LIG."Cost of land is a consideration, as much as the rising prices of building materials," says Durganand Balsavar, a city-based architect."However through exploring cross-subsidized housing, these adverse impacts can be mitigated considerably," he says.

While measures like reduction of plot size and cross-subsidization may be encouraging, there are those who believe that land availability is not the only decisive factor of affordable housing."Land prices just outside the city are as low as Rs 1,400 and Rs 1,800 per square foot it is infrastructure, at the end of the day, that plays the biggest role in affordable housing," says Shripal Munshi, an urban planner and partner with SV Architects, a city-based architecture company, "Facilities onsite, transport connectivity, sewage and basic amenities can determine whether the land in question is viable enough for the establishment of a housing project."

There are takers for Munshi's point of view, as architects feel infrastructure is undoubtedly the way forward."Investment in infrastructure is a basic and non-negotiable requirement for affordable housing," says Durganand, "New sources of renewable power generation, recycling waste water, investing in roads, public transport and social infrastructure like colleges, schools, hospitals and markets facilitates affordable housing."

According to the US Department of Housing and Urban Development (HUD), housing is affordable if it costs the occupant not more than 30% of his income for gross housing costs, including utilities.

  Chennai is the 4th largest metropolitan city in India and the total population of Chennai Metropolitan Area (CMA) as per 2001 census is 70.41 lakhs. The total number of households as per 2001 census in CMA is 16.19 lakhs and the total number of housing units in CMA is 15.83 lakhs.

   According to a study conducted by the CMDA in 1989-90, the number of households living on pavements was 9,491 at 405 clusters at an average of 23 households at a place.

As per 2001 Census, Chennai city had a slum population of 8.19 lakhs, which is approximately 19% of the city's population. The percentage of slum population to total population has reduced from 30% in 1971 to 19% in 2001.
   The National Urban Housing and Habitat Policy, 2007 stipulates 10 to 20% of land in every housing project or 20-25 % of FAR reserved for EWS/LIG housing. The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) launched by the government of India stipulates a minimum 20 to 25% of developed lands in housing projects for EWS/LIG housing with a system of cross-subsidization.

  It is mandatory on the part of the developers to reserve at least 10% of the site area and provide houses for LIG with dwelling units not exceeding 45 square meters in cases of large-scale developments exceeding 1 hectare. This rule was brought in the SMP to encourage EWS and LIG housing developments.

   The statistics on the number of Planning Permission Applications issued for residential layouts, since 1989 reveals that 44,673 residential plots have been approved of which 19,075 plots are for EWS.

   Recently, development regulations have been amended by providing an additional FSI concession of 50% over and above the normally permissible FSI for those who construct units of 30 sq m and below. For those who construct dwelling units of 50 square meters and below, an additional FSI concession of 30 % over and above the normally permissible FSI is given.

Courtesy:- Times Property dt-11-12-2010

ASHISH GUPTA explains how a tenant can deduct cost of repairs from rent in certain cases 

Maintenance of property is important. A common point of dispute among many landlords and tenants is maintenance of a rented property. Usually, a lot depends on the mutual terms and conditions as agreed upon between the parties and laid down in the lease agreement. 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.

   In case a landlord is unable to do so or is unwilling to do so, his tenant may undertake these repairs. He needs to give proper notice to the landlord, specifically mentioning the nature of problem, the nature of inconvenience caused, safety hazards, and the necessary steps required to correct the problem. It should be mentioned that in case the landlord fails to undertake the repairs within a specified time, the tenant will have it done and will be eligible to recover the amount spent from the landlord - from the rent or otherwise.

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

   The Rent Control Acts of various States also provide some guidance to this effect. As per these Acts, a landlord has to keep the premises in good repair. Every landlord is bound to keep his premises in good and tenantable repairs. If a landlord neglects or fails to undertake any repairs which he is bound to within a reasonable time after notice in writing, the tenant may do so himself and deduct the expenses from the rent payable to the landlord. This is subject to the condition that any amount deducted or recoverable in any year will not exceed one twelfth of the rent payable by the tenant for that year.
  In case repairs are to be undertaken, without which the property is not habitable or usable except with undue inconvenience, and the landlord neglects or fails to do so notice in writing, the tenant may apply to the rent controller under the Rent Act for permission to undertake the repairs himself. He should submit to the controller an estimate of the cost of such repairs too. The controller may give the landlord an opportunity of being heard. After considering the estimate of cost and making any inquires as he may consider necessary, the controller may by an order in writing permit the tenant to undertake the repairs. It will then be lawful for the tenant to undertake the repairs himself and deduct the cost. The costs can be recovered from the landlord. It cannot exceed the amount specified by the controller.

Courtesy:- Times Property dt-11-12-2010

The affordable housing market is evolving but it has its share of problems. Issues like land availability, pricing, finance and regulatory concerns have affected the supply of affordable houses. HARINI SRIRAM finds out more 

According to NUHHP (National Urban Housing and Habitat Policy) 2007,an affordable house is defined as," a dwelling unit having super built-up area not less than 300 sq ft for EWS (Economically Weaker Sections ),500 sq ft for LIG (Lower Income Group) and between 600 and 1,200 sq ft for MIG (Middle Income Group) available to the end user at a price that permits home loans in monthly installments, which should not exceed 30%-40 % of a person's monthly income."However, affordable housing continues to be an elusive dream, especially for those in the EWS and LIG categories. Why there is a problem in terms of supply and implementation of affordable housing schemes 

P Suresh, MD, Arun Excello, believes that the biggest impediment to construction of affordable housing projects is the non-availability of land. He says, "It is impossible to find land at appropriate locations at affordable prices. Where can you find land at a cost of less than Rs 1 crore per acre this is a big deterrent as land price accounts for more than 40% of the cost of the project."

It's not just availability of land that we are talking about here. As Kumar Gera, Chairman, CREDAI (The Confederation of Real Estate Developers Association of India) points out ,"Well-connected, accessible land with title and infrastructure needs to be provided on a regular basis. Only then can developers provide affordable housing in the real sense of the word."

In cities, in particular, land availability is a bigger problem. According to a report by McKinsey Global Institute (MGI),India's urban population will soar from 340 million in 2008 to 590 million in 2030.How will the housing demands of the population be met Sample this: 23% of India's urban population resides in eight cities. If the housing shortage (of 26.53 million housing units) is to be addressed effectively, at least three million housing units must be added to the cities, every year. Instead, only 0.3 million housing units are being added in the existing cities. Urban land expansion is, therefore, the need of the hour.

As per the estimations given in the Second Master Plan, of the total housing demand of 12.38 lakhs, the demand for EWS and LIG housing will touch 3.71 lakhs and 4.33 lakhs respectively by 2026.More than 90% of those affected by the shortage in housing are from the EWS and LIG categories, for whom an affordable house would fall in the range of 4 lakhs to 7.5 lakhs. Most developers however continue to cater to the niche market that serves about 5-10 % of the population. As P Suresh points out," Promoters are averse to handling more number of clients; in an affordable housing project, for instance, it's a volume game. You need to provide a large number of housing units, as opposed to a luxury project where you deal with very few clients and big spaces."

Coupled with this is the problem of financing affordable homes. To offset this problem and deliver financial assistance to the poor so as to enable them to purchase their own homes, the central Government has instituted the ISHUP (Interest Subsidy Scheme for Housing the Urban Poor) scheme all across the country.

"This scheme gives EWS households a subsidized loan for a period of 15-20 years for a maximum amount of Rs 1 lakh.LIG households can avail of a loan of up to Rs 1.6 lakh but the subsidy is not applicable for the remaining 60,000.The subsidy is 5%/annum on interest charged and is deducted from the loan quantum right in the beginning," says Dharmendra Pratap Yadav, Managing Director, TNHB.

Harsh Roongta, CEO, Apnapaisa.com, an online portal that specializes in price comparison of loans, insurances and investment options, believes that the affordable housing industry has led to the growth of a microfinance industry as well, that funds people who may not have the means to buy a house otherwise.

Groups like Mahindra, MAS, Micro Housing Finance Corporation Ltd offer loans at 12-14 % interest rates to those who do not have proofs of salary documentations. He says, "People in the EWS and LIG categories do not have income documentation and hence they face problems while applying for loans. So to them, availability of loans is of prime importance; the cost of the loan does not matter as much."

Kumar Gera believes that tax concessions and a micro level road map for affordable housing will help plan such projects. A public- private partnership (PPP) is a solution too. As Susan Mathew, vice chairwoman of CMDA (Chennai Metropolitan Development Authority) says, "It is the social responsibility of every developer to ensure that housing is provided to the EWS and LIG categories."

To facilitate this, the government has announced a few incentives and subsidies to developers who cater to this segment."In order to facilitate PPP in provision of housing for rehabilitation of slum dwellers, the government has announced a Transfer of Development Rights (TDR) of 30 sq m of floor area per slum dweller to the private builder who provides housing for the slum dwellers and the Development Regulations (DR) have been amended suitably," she adds. Also, additional FSI concessions of 50% over and above the normally permissible FSI for those who construct dwelling units of size 30 sq m and below are given. For those who construct dwelling units of size 50 sq m and below, an additional FSI concession of 30 % over and above the normally permissible FSI is given, she says.

These policies and incentives will go a long way in promoting affordable housing. However, unless the bigger issues of land availability, planning and pricing are addressed, the market will not be able to serve the needs of those who really need an affordable house.

Courtesy:- Times Property dt-11-12-2010

As the environment ministry cracks the whip on high profile buildings, a citizen must acquaint himself with all the green norms and local bylaws before investing in a property. Lack of knowledge is no defense against penalty or demolition. NEHA LALCHANDANI reports 

With environmental concerns having taken centre stage, a spate of major construction projects have recently been pulled up by the ministry of environment and forests (MoEF) on the ground of violation of norms. Adarsh and Lavasa have become household names and notices for their demolition or cease-construction are pending. Thus, rather than investing lakhs and crores of rupees in property that may face the risk of demolition in the future, It might serve one well to ensure that all environmental clearances have been obtained.

   It is vital for end users looking to purchase or construct a home, villa or a sprawling farmhouse to acquaint themselves with these rules and regulations but, as of now, there is no information out on the table which will give them a clear picture of the various clearances that are required, and there is even little awareness that there are any such regulations at all.

  Take Delhi, for example. How many are in the know that for any major construction project, the Delhi Urban Art Commission (DUAC) is to give the final go-ahead. Most people, even among the educated and the professional class, might not have even heard of DUAC and those who were mandated to apply for a clearance would often not bother. The city is dotted with several projects, including the Commonwealth Games Village, which came up without all the necessary clearances. For instance, the CWG village, built on what several claim is a flood plain, needed a no-objection certificate (NOC) from the Central Ground Water Authority a clearance that was not even applied for.

    Naturally, for someone looking to invest in property, the issue of environmental clearances becomes critical and the question then is, how one to acquaint oneself about them. R P Singh, a Mumbai-based architect says: Normally, such clearances are required only for residential complexes or townships and not single unit homes. However, the situation would change from city to city. One would know if they are too near the sea, or in a mangrove area, or in the case of the national capital, whether they are in the Delhi Ridge.

   Construction here is not permitted in any case. Architects are aware of constructional clauses and would be able to guide prospective owners about fire-safety clearances and height of buildings permitted in certain zones. In Mumbai and other coastal areas, the Coastal Regulation Zone has been marked out and constructions taking place within it, whatever they might be, need to apply for clearances, Singh adds.

Some of the acts under which permissions have to be sought include the Wildlife (Protection) Act,1972;Water (Prevention and Control of Pollution) Act of 1974;Air (Prevention and Control of Pollution ) Act of 1981;Forest (Conservation) Act,1980;Environment Protection Act 1986;EIA Notification of 1994 (since amended in 2006); Coastal Regulation Zone (CRZ),1991and Central Ground Water Authority (CGWA),1997.While these are major heads that can be applied to most projects, a clean chit would also be dependent on where the project is coming up as local laws vary widely.

Manoj Mishra of Yamuna Jiye Abhiyan quips, I would not like to get stuck with a property in Lavasa, referring to the now disputed Lake City project coming up near Pune. The environment ministry has now taken cognizance of the fact that it [Lavasa] does not have all green clearances but how would an ordinary investor know that. The tragedy is that there is no one agency delegated authority to clear building plans and advise on the environment clearances required. In Delhi, the Municipal Corporation of Delhi is supposed to pass plans but, that in itself is an exercise mired in controversy. There are also local level bodies from whom clearances might be required like the DUAC, Yamuna Standing Committee (YSC), Delhi Pollution Control Committee, he adds. Y C Khurana, a lawyer, says that it would not be a bad idea to ask builders for all clearance certificates before investing in a property. The most common practice these days is to market new property by showcasing its green aspects, its proximity to nature, etc. However, one needs to be most careful here. There have been many instances of constructions coming up in notified buffer zones, around tiger reserves or other eco-sensitive zones. Before investing, one must either approach local authorities, or lawyers and architects concerned to ensure that there have been no violations, he says.

    Experts also add that seeking environmental clearances should not be a task confined only to the environmentally conscious, as the penalty of violation of these norms applies upon every citizen. The penalty of constructing without green clearances could be forbidding, including demolition of the building. The Right to Information Act has played a major role in this regard. Many of the illegalities that have come to light are because the government bodies concerned were forced to acknowledge that either clearances had not been applied for or not been granted. With MoEF now so active in cracking down on illegal constructions, what it needs to do is to create a proper archive of laws and clearances that one needs to keep in mind before either constructing a house or investing in a township or complex and put it up on its website, a Delhi based activist says.

Courtesy: - Times Property dt-11-12-2010


With its latest project, Bellevue, Central Park delivers not only homes but also on its promise of quality. RAVI KUMAR MANGALAM writes 

This is a home which no one will want to leave. That’s the kind of response that Bellevue the Phase 1 condominium towers of Central Park II in Gurgaon has been generating among buyers. Vineet Nanda, vice-president of business development at Central Park, explains why: Bellevue is a rare example in India to have obtained six quality certificates from leading auditors and consultants (Grant Thornton, Jones Lang LaSalle-India, KCB Associates, Dema Consulting and Manu Jain).The certificates carry a seal of approval from the consultants on specifications relating to the construction quality and the structural integrity of Bellevue. Certificates are being handed over to each apartment owner at the time of possession. We are not just in the business of building apartments, we believe in building trust. 

Bellevue, comprising over 400 exclusively-designed apartments in the range of 2,350 sq ft to 4,650 sq ft, offers all the main features that buyers usually seek a prestigious address, the vibrancy of city living, quiet green surroundings, good security coupled with modern range of amenities. These apartments overlook the swimming pool and the sprawling greenery on one side and the Aravali skyline on the other.

Nanda adds: The amenities offered by Bellevue include an amphitheatre, a basketball court, tennis and badminton courts, power backup, double-level basement parking, solar water-heating, fire safety systems, high speed communication networks and beautifully designed park and play areas for children. Another feature of the Bellevue project has been the use of state-of-the-art construction technology, known as Mivan shuttering. Mivan uses aluminum frameworks for the construction of tall buildings, to impart solid structural integrity and a high-degree of seismic resistivity. Launched in 2007 at a price of Rs 2,050 per sq ft, the condos now carry a re-sale value of Rs 6,000 per sq ft evidence of its great demand and endorsement by the upscale market segment, he says. The project has been designed by one of the worlds largest and well-regarded architectural firms HOK (formerly Hellmuth, Obata + Kassabaum).

Another advantage of Bellevue is connectivity. It is very close to the heart of the city centre, IFFCO Chowk, the Metro station and the international airport.Also,it is located within the vicinity of good schools like Pathways World School and GD Goenka World School and reputed hospitals like Medanta and Artemis.

Central Park is jointly promoted by Amarjit Bakshi and K S Bakshi It also has Ashmore PLC, a leading international PE fund based out of UK as a third partner with an equity participation in the company. Currently, Central Park has over 2 million sq ft of existing development and another 6 million sq ft are in an advanced stage of planning and execution across verticals like upscale residential development, hospitality and SEZs.

The company has the distinction of being a Zero Debt company and its market cap is valued at over Rs 5,750 crore by the PE fund, says a company director.

Courtesy:- Times Property dt-11-12-2010


Citizens of Delhi and the NCR seeking an accommodation near Metro stations is an old story. Today, even the expatriate community in Delhi is lining up to grab a vantage house, flat or villa near a Metro station, says VIVEK SHUKLA 

Derek Amiss, an expatriate from the UK, was elated when the Metro reached Noida - and ever since he has been commuting on the Metro, even to Gurgaon, for official and personal work. An IT engineer by training, Amiss has even shelved plans to move to Noida from Green Park where he has been living for the past couple of years."After the Metro crossed the borders of the capital for Noida, it has given me a huge relief. Now, I often visit my office on the Metro - from Green Park to Rajeev Chowk and then to Noida. It is hassle-free and takes less than 45 minutes to reach my office from home and vice versa," Amiss chuckles.

As the Metro rail is moves at a steady pace to the various parts of the capital and the NCR, it has greatly eased the life of locals as well as the large expatriate community in the capital. Rental market watchers say that it is a matter of great surprise that even those with luxury cars are now shifting over to the Metro for their regular commute to office, markets, malls or social outings.

"I am really surprised! Over the past couple of weeks, I have come across several requests from expatriates seeking rental accommodation close to Metro stations. It is a clear sign that they prefer the Metro to facing the harrowing traffic jams on the capital's roads," says Kajol Makhijani of Mak Realtors.

A French lady, who does not want to be identified, says that as her kids study in a French school at Aurangzeb Road, they take the Metro from Gulmohar Park station daily and get down at Jor Bagh station. And from there, the school is at a shouting distance."Earlier, I used to drop them off at the school as, very often, their cab did not turn up. That was very irksome. Now, the Metro has solved our problem and my kids are also happy travelling on it," says the lady, a journalist by profession.

While the Metro is making life comfortable and better for people, it is also boosting the demand for properties close to Metro stations. The demand for rental accommodation as well as commercial properties close to Metro stations is increasing by the day. Rail and development go hand in hand and the Metro has clearly proved this old saying once again, says Sunil Jindal, CEO of SVP group, adding, "As the Metro moves beyond the capital, it is ringing in development at every place it touches. Infrastructure is improving and people seeking a roof over their head are also shifting there. Ghaziabad is an example. With the Metro touching Anand Vihar and slated to move into Vaishali and Vasundhara in Ghaziabad soon, the realty scene of the entire area has received a huge boost."

And talking about Faridabad, there are indications that once the Metro reaches here, it would give the rather sedate realty market of this once bustling town a new lease of life. Having reached Sarita Vihar, hopefully, its onward journey to Badarpur and Faridabad would commence soon.

Sanjay Khanna, director of Kailashnath Projects Pvt. Ltd, says there is no doubt that apart from giving a huge relief to lakhs of people who had to struggle to reach their respective destinations due to a poor publics transport system and a chaotic traffic,the Metro has also boosted the realty prospects of almost all the places it has touched and even to those place where it is planned to reach.

According to Madhav Joshi,a cartoonist working for News 24: "I was happy at Mayur Vihar till I came to know that the Metro was going to Vaishali in Ghaziabad.I was convinced that the news was correct and I booked a flat in Vaishali two years ago. I have recently shifted to my flat and I am really looking forward to travelling on the Metro in order to reach my Noida office."The Metro is slated to reach Vaishali within six to eight months.

Anil Sharma, CMD of Amrapali group, strongly believes that the Metro's ingress into various NCR cities likes Noida, Gurgaon and Ghaziabad would prove a game changer for all of them."We are observing that due to the Metro factor, the demand for flats of almost all the realty firms have gone up," says Anil Sharma.

While the Metro is on the move and there is still a great scope to improve its service, it has perhaps, unknowingly, helped the cause of even expatriates as well realty sector.

Courtesy:- Times Property dt-11-12-2010

The tourism department of Haryana has initiated steps to promote farm tourism in the NCR, says C R RATHEE 

The newfound craze of Delhi's neo-rich and the corporate to develop holiday or de-stressing resorts cheek by jowl to Delhi, Gurgaon and Manesar has caused a spurt in the prices of lands, particularly those located along NH 1,NH 2,NH 8 and NH 10 (Delhi-Mathura road, Delhi-Jaipur road, Delhi-Karnal road and Delhi-Rohtak road) and also in those along some link roads like Pataudi-Taoru-Palwal road, Gurgaon-Sohna road and Gurgaon-Sultanpur road.

According to the reports available with the real estate agents at Gurgaon and Faridabad, the land rates have crossed Rs 50 lakh to Rs 75 lakh per acre - all over-the-counter, and even at these rates, they say it is a sellers' market! 

A senior officer of the Haryana Town & Country Planning Department (TCPD) said that during the last few months, no-objection certificates (NOC) have been issued to someone dozen parties to develop farmhouses-cum week end resorts in the Haryana part of the National Capital Region (NCR).He vouched that such NOCs are not granted for lands situated within 2km of the Kundli- Manesar-Palwal (KMP) multi-lane global corridor (under construction ) and for land pieces which are less than 2.5 acres in size. These farm houses or de-stressing resorts are, no doubt, eating into the green lungs of this prime region.

According to an executive of the Federation of Estate Consultants of NCR (Foenc) while earlier, the first choice of a VIPs and the affluent class of the national capital was the areas near Chhatarpur and the neo-rich had engulfed the prime fertile land on Faridabad-Sohna road and Sohna-Taoru road touching the KMP corridor, now Delhiites are sourcing land along other roads in the region.

The first VIP to have developed his rural retreat was former Prime Minister Chandra Shekhar, at Bhondsi, on the Gurgaon-Sohna road. But later, the neo-rich began acquiring big chunks of fertile agricultural land from Kundli to Karnal (via Sonipat and Panipat) to build farmhouses.

In a related development, the tourism department of Haryana has also initiated steps to promote 'farm tourism' n the NCR, conforming to the recently revised norms in this regard.

Sources in the Foenc say: "If you, your family and friends wish to inhale the fresh air of green fields, wish to watch a Harynavi villager milking the buffaloes and see the 'chaudharies' enjoying 'hooka' and you,your family and friends wish to spend a Sunday,away from the hum-drum of Delhi, drive to the rural parts of Faridabad, Palwal and Mewat districts."

It is now official that Haryana's tourism department has identified some 20 farms for the public-private partnership initiative. The farmhouse owners have committed to providing boarding and lodging facilities to tourists at reasonable rates.

The Nature & Nature Farm (near Tigaon) offers natural food, nature cure and natural surroundings. Surrounded by lush green foliage, a stay at this village with ethnic huts promises to give one a taste of the best in rustic and rural life.

Just half an hour away from Palwal is the sprawling farmhouse of Rajinder Bisla. It is considered a complete 'nature destination' for the Delhiites, to learn about the roots and traditions of 'Brij Bhoomi'. Further down, another one hour drive from Hodal on the Hodal-Hassanpur road fetches the Silver Scene Abode that offers an escape from the hectic urban life into the tranquil natural surroundings. It has raw earthy elegance and fully irrigated and vast fields.

The Progressive Farm in Faridabad opens a different world to tourist, as it abounds in flowers and chirping birds. At Sheilma Farms in Faridabad, a pool and swings for children make it an ideal place for a family picnic.

The YMCA Rural Centre on the outskirts of Hodal on NH 2 is equipped to impart technical skills of modern farming techniques and creates awareness to improve the health status of the community.

Courtesy:- Times Property dt-11-12-2010

For the first time, DDA will now maintain flats that are part of its latest housing scheme, for the next 30 years. Will private realty firms follow suit VIVEK SHUKLA writes 

At the outset, just consider two situations. When you buy a car or a two-wheeler, the auto company gives you free service for a certain period and looks after the maintenance of your vehicle for donkey years. And just spare a thought for realtors. You buy residential or commercial property from realty firm for huge sums. And once the deal is sealed, realtors more often than not, feel they are not duty-bound to serve their clients. What a pity! 

    Surprisingly, for a change, the Delhi Development Authority (DDA) has decided to maintain the flats after their allotment. For the first time, DDA will now provide maintenance of the flats that are part of its latest housing scheme for the next 30 years.

    DDA will maintain the usually neglected common areas like staircases and shafts of the flats that it will allot. A large number of the nearly 16,000 flats that are part of the new housing scheme will enjoy DDA's healing touch. The allottee, however, will have to pay a one-time lump sum amount for the maintenance.

    While DDA realized its responsibility for the maintenance of the flats, will other builders too rise to the occasion and provide the much needed after-sale service to their clients.

   In a very candid admission, Sanjay Khanna, director of Kailashnath Projects Pvt. Ltd, says that generally, it can be safely said that "realty firms hardly look after the affairs of buildings they build". Not surprisingly, due to this apathy, the buildings start decaying after some years.

    Coming back to DDA, the cost of the houses in the new scheme will now include the cost of maintenance. Allottees of flats with lifts will have to pay 15% of the total amount as one-time maintenance and Allottees of flats in up to five storey buildings will pay 12%.DDA will now plaster the facade of apartment blocks, repair staircases, railings, balconies and floors and also take care of the common drainage lines.

    Sunil Jindal, CEO of the NCR-based realty firm, SVP Group, says: "We have outsourced the maintenance to a team and they look after our projects and they address all the issues of our customers. You cannot survive in the market without taking care of the interests of your clients."He adds that they have deputed technically sound people who can ensure smooth operations of the infrastructure in the complex.

    However, an expert of realty affairs says: "I have observed that as maintenance of apartments and commercial buildings is not a great business opportunity, most of the realty firms extend maintenance facility only during the first year or till such time that a resident association is formed, purely on a no-profit no-loss basis. The corpus collected is accounted for and the remaining funds handed back to the association for relevant maintenance activities."

It is no secret that residential and commercial buildings that look good and impressive are maintained by dedicated maintenance teams. Maintaining a building is not all about housekeeping and cursory maintenance. Far from being confined to plumbing and electrical work, maintenance of these complexes extends to include a host of items that require a fully functional office and maintenance staff on call round the clock.

    Understandably, maintaining a complex not only includes housekeeping and round-the-clock emergency services, it also includes beautification and care of gardens and common areas, security, to name a few.
    R K Sinha, CMD of SIS India Ltd, says that they had started an upkeep service for residential and commercial buildings and the response was very encouraging."Within a couple of months of starting our new business, we started getting a barrage of queries from both small and big cities, for managing buildings, "he says. According to this journalist-turned entrepreneur, the service is typically managed by a manager and office personnel complete with a wireless network to track field staff.

   Anil Sharma, CMD of Amrapali Group, says: "While we extend the facility of lifetime maintenance, it is certainly not because it is an added business opportunity but merely to ensure the development is well taken care of."According to him, apartment maintenance is more of a bother than money earner. He, however, accepts the fact that this is one area which deserves attention from realty players.

    Realty market watchers say that maintenance is the key to the upkeep of a residential complex. The going rate is around Rs 1 to Rs1.50 per sq ft for a normal residential complex with facilities like lifts, swimming pool and power backup. But complexes with a golf courses, etc, will have a higher rate, around Rs 3 per sq ft. All good things come at a price, so does maintenance of a nice residential complex. This is like owning a luxury car, which naturally has high maintenance cost and expensive spare parts. Similarly, maintenance cost of apartments with golf courses and other luxurious specifications is high.

    This fact should however be made clear by developers to prospective buyers. Paying a high maintenance of Rs 2 psf, is not practical for a buyer of affordable home in the range of Rs 30 lakh to Rs 50 lakh, as he has to budget for the EMI and doesn't expect high monthly maintenance cost.

There is a clear-cut consensus among realty experts that any property, howsoever magnificently built, will deteriorate and lose its grandeur if it is not maintained with the requisite expertise.

    A building managed by a reputed property manager helps enhance the company's image and gives it an edge in marketing its properties, especially under the present tight market conditions where people seek better value for money that they are investing.

   Professional services and maintenance can always be achieved by hiring good vendors, Jindal feels. Talking about cooperative societies, marketing professional and social worker of East Delhi, Pavan Dhir says [] that there is an attitude of indifference or lack of consensus on matters related to maintenance of the society, resulting in delays in decisions on building repairs, renovations and so on. A professional approach and outsourcing of property management helps carry out the jobs in time and also check deterioration of the structure.

    It is learnt that there are a few international players in this business, like Knight Frank, Brooke Insignia, CB Richard Ellis and Sodexo. The few Indian companies that match these big names are IPM & SL, Radhakrishna Hospitality; etc Richard Ellis manages properties measuring over 10.8 million square feet in India. In Chennai, they manage 1.3 million square feet at Tidal Park, another 3.75 lakh square feet at Raheja Towers, and 68,000 square feet at ITC Centre.
   Alimuddin Rafi Ahmed, CMD of ILD Group, says that unlike in the west, professional facilities management of buildings is a new concept in India."I sincerely feel that after developers construct and sell their products to customers, experts should be given the responsibility of managing the properties. They will always do a better job."

   Sanjay Khanna is of the view that builders should give utmost priority to the affairs of the clients even after sealing the deal with them .It is better for them to create a dedicated department that only looks after the upkeep of the building of their clients, he says.

Courtesy: - Times Property - dt-11-12-2010

Realty embracing corporatisation 
The real estate landscape is suddenly dotted with big corporate names like Tata, Godrej, Oberoi, among others. What makes this industry attractive to them and how are consumers reacting.

Big names have suddenly cropped up along the real estate landscape - be it Tatas (Tata Housing),Godrej (Godrej Properties),Oberoi Group (Oberoi Realty),Hero Honda Group (Arrow Infratech), Essel (Suncity),Jaypee (Jaypee Greens),Paras (Paras Buildtech) – nobody ,it seems, wants to be left behind in grabbing a share of the attractive real estate pie.

  They all agree that the sector is disorganized, perhaps plagued with more issues than any other industry; but none seem deterred by the challenges. In fact, they seem ready to unleash the 'huge opportunity' that the realty sector can offer, given a combination of demand-supply mismatch in housing and a lack of quality real estate in all segments along with enchasing on their brand name and an existing customer base, which is brand loyal.

  Take a look at Tata Housing. Their Raisina Residency was completely sold out and some investors confess that they did not even wait to see the layout plan. Ask any professional, and they say the name of a credible corporate house wins favour with them hands down vis-a vis a project by a private developer. Says Sumit Sethi, a Gurgaon based banker ,"There is a stamp of credibility if a good corporate name is associated with the project. To an investor like me, It gives an assurance about everything - right from project execution to quality of construction and timely delivery to clearances being in place. The fact is there is a lot of money involved in a real estate investment and it involves a huge risk, so the realty firm with a corporate brand makes it worth the while to take a calculated risk."

  At the recently launched Godrej Frontier, the firm managed to sell over 200 apartments within two days of launch, even though it was not officially announced. Investors were not deterred by the fact that it is close to Manesar and is the group's first project in northern India.

  So, do the corporate have an edge over other individual players in having better branding and marketability, understanding of consumer needs and preferences According to a Godrej spokesman, "The major advantage of being a corporate real estate developer is the brand name - the brand is instantly recognized even when the company undertakes projects in new markets. Most developers have a regional setup while a company follows customer-centric approach and even ropes in international architects and brings in newer designs. Typically, a company then ties up with reputed construction companies like L&T, thereby ensuring superior project quality and on-time delivery."

  Godrej Properties started operations in 1990 and its first project was Godrej Eden woods in Thane. Subsequently, it developed projects at Worli sea face, Kalyan, Panvel, etc. Now, the company is doing large projects and has a presence in 11 cities across India. According to Milind  Korde, managing director of Godrej Properties Ltd, "The company uses the joint venture (JV) model of development. This is an asset light model where a certain portion of the land cost is given as an advance to the landowner and the arrangement is either area sharing or revenue sharing or profit sharing."Even in the Godrej Frontier project in Sector 80 in Gurgaon, the Godrej Properties' joint venture partner for this project is M/s Frontier Home Developers Pvt. Ltd.

  Their focus is on medium to high-end residential properties. Some of the key projects of Godrej Properties include Planet Godrej, Mahalaxmi, Mumbai (a premium high-rise residential project located in Mahalaxmi, Mumbai),Godrej Woodsman Estate (Bangalore) and Godrej Prakriti (Kolkata).Godrej Garden City is a 250-acre township planned in Ahmedabad. Besides, there is Godrej Avalon at Mangalore, a high-end residential project spread over 6 acres, which will have three 23-storey towers offering 3 and 4BHK luxurious apartments with panoramic view of the city, the surrounding valley, and the sea. The Godrej Group has several land assets across India and there will be arrangements as and when they get ready for development. Currently, the company has signed a JV for developing 35 acres in Vikhroli. This will be a mixed use development. One thing common to corporate developers is they are all seen taking the JV route. Many a time, there is an inherent advantage in tying up with a local developer who can consolidate land banks, get clearances and as a real estate broker says, "get the dirty work done". For a local developer, they derive mileage from their association with a big brand player. Essel Group's real estate division, Sun City, recently developed condominiums in Gurgaon in collaboration with a local player ABW.

  The expectation of an investor or an end user is pretty high when a corporate name is associated with a real estate project. According to Brotin Banerjee, MD and CEO, Tata Housing Development Co Ltd, "As a corporate real estate developer of choice we work extremely hard to win over our consumers in delivering products with design excellence not only in aesthetics but also functionality. We have an approach that is customer-focused and customer-centered. Every residential or commercial premise is created o the basis of a thorough understanding of the stated and unstated consumer needs, which are obtained through a concentrated and focused consumer and market research. All our projects have been conceptualized and designed on the basis of a theme or concept, which is driven by consumer insights. We have an increased commitment to environmental stewardship and conservation that results in an optimal balance in terms of cost, environmental, societal, and human benefits while meeting the mission and function of the intended facility or infrastructure. All of Tata Housing's projects are green-building initiatives constructed and designed under the guidelines of the Indian Green Building Council (IGBC) and certified for Leadership in Energy and Environment Design (LEED) to positively contribute to the environment, like 'Xylem', Bangalore's first LEED Gold Rated Green Building; Aquila Heights, the first in India to be honoured with the AAA+ Certification by Construction Industry Development Council (CIDC) and Construction Quality Rating Agency (CQRA),which benchmarks construction quality levels."

Talking about the huge opportunity that the real estate sector offers, Brotin Banerjee says: "The opportunity presented by the Indian real estate industry is extremely large. There is immense potential in this sector due to the shortage of housing units, estimated at nearly 26.53 million and the contribution of this sector to India's GDP is 8%."However he voices concern that "the real estate sector is predominantly unorganized in nature. Most of the developers have scattered and fragmented local or regional presence. Further, the lack of a common regulatory authority increases the hurdles faced by developers and consumers."

Courtesy:- ET  REALTY - dt-10-12-2010

It’s time for a makeover 
Malls are going in for a complete makeover of the products and services they offer to arrest the declining footfalls, says ET Realty 

Imagine for a moment that you are attending a marriage party or a big birthday bash inside a shopping mall. Did you ever hear of such a scenario earlier Perhaps, not! But, just wait for the time when you get an invitation for weddings, family get-togethers, birthdays, Xmas parties, or other such social dos in malls - maybe, you too would end up inviting people to attend your own private bash there someday! While this is a novelty, the trend is fast catching up across the metros.
While the capital will soon find a mall with a huge banquet hall inside, residents of other cities will not have to wait long to see the same kind of malls with banquet halls.
"It is good that realty firms are reinventing and redefining fast and giving space for banquet halls inside malls as well, "says Devinder Gupta, CMD of Century 21, adding,"We all know that except for a few malls all of them have been facing a severe crunch in footfalls. Hence, they have to make some additions so that people still visit them in a big way."
Talking about Delhi, it will soon see a mall with a big banquet hall, which will be able to host big parties with a capacity to accommodate up to 1,000-plus guests. Sanjay Khanna, director of Kailashnath Projects Pvt Ltd, says: "After a lot of consultations and market survey, we thought that if we give 
space for banquet hall in our mall, it would be a first in India and it would create tremendous amount of curiosity among all the stakeholders on the realty sector."This firm is on the final leg of construction of a mall with banquet hall, Ivory Towers, in West Delhi.
Sudhir Mathur, strategic adviser of Kailashnath, says that their strategy started paying dividends even when their project was at a nascent stage, in the sense that many big-ticket players of banquet business have started making inquiries in order to book space there."They have finally zeroed on Tivoli Garden to start their business there as they are very formidable brand, "Mathur says.
PVR Ltd is about to start a new innings in the world of consumer entertainment - it certainly is no laggard when it comes to writing a new grammar for malls in India. It is likely that PVR will open the first of its 'Entertainment City' malls featuring an Olympic-size ice skating rink, a 24-28 lane bowling alley, food courts, micro brewery based 'Beer Island' and a medley of food kiosks next year.
PVR plans to introduce this format in other cities like Hyderabad,
Bangalore, Chandigarh, Pune as well as in all the major cities of the country. In a recent interview, Ajay Bijli, CMD of PVR, said they want their malls to be one-stop entertainment centers for consumers.
Realty experts say that as the footfall in malls have seen a steady decline in the recent past, it is very important that the whole business of malls be redefined."I thought that unless you keep on redefining yourself according to the times and needs of your clients, you have no chance to survive in the market, "says Sunil Jindal, CEO of SVP group.
It is clear that malls are putting in a huge effort in arresting the decline in footfalls. Both shopping malls and retailers are going all out to attract the maximum footfalls via exciting combinations of innovative marketing schemes and themes. Malls have increased their marketing spend on several novel themes for shoppers, accompanied by retailers offering bumper schemes across product categories with exciting price points and attractive festive packs. To own up, franchisee malls are facing fierce competition this time of the year! While DLF Promenade celebrated 'Festival of Happiness' till recently, Select City walk (Saket) organized Diwali Bazaar.DLF 
Promenade held a 24-hour sale on October 30-31 with a "Free Women Pamper Zone "thrown in for good measure. Pushpa Bector, VP of DLF Promenade, says: "We bring for our women shoppers the opportunity to indulge themselves; those who shop for more than Rs 5,000 will get a free entry into The Pamper Zone at The Dome.Pamper Zone will have free services like Makeovers, Tattoo Zone, Hair Beading, Spa, among others."There is also a Jewellery Exhibition through which DLF Promenade brings to you a uniquely designed exhibition, Riwaaz 2010,where all the wedding related products and services are displayed at one place and people can buy products across categories like apparel, jewellery, accessories, cosmetics, according to their requirement, taste and needs. In a nutshell, it can safely be said that all the stakeholders of mall business are making efforts in their own way to make malls still relevant.
 "I know that mall owners have hiked their marketing budgets and have announced big offers based on events, fun activities and incentive schemes so that they get a good number of people on a regular basis, "says Nuzhat Alim, marketing director of ILD group, which has a mall in Gurgaon.
Anyway, there is a strong possibility that with a lot of new and innovative efforts, malls attract lovers of shopping and also happy baratis.

Courtesy:- ET REALTY dt-10-12-2010

For elegant interiors 

Fabric and colour of home interior should work together to create a feeling of elegance, warmth, peace and well-being.ET Realty finds out more 

A home is an expression of who we are and how we want to live. It should reflect your personality and lifestyle. A home should be visually delightful and an inspiring combination of colour and design.
Home furnishing and fabrics contribute immensely in making your home a haven to return to each day. Fabric and colour should work together to create a feeling of elegance, warmth, peace and well being. Colour and design helps create a mood which befits the area for which it is used. By using bold and striking prints and contrasting colours, you can create drama. And muted ,subtle designs and colours can be used for a romantic ambience.
Some suggestions in decorating an interior space for example, a main living room, would be by combining colours like dove grey and deep aubergine purple, white, touches of glossy lacquered black furniture, a hint of chrome or silver through artefacts just to add a bit of shimmer and glitz. Decorative accessories like mirrors and other reflective surfaces, a murano glass chandelier in smoke grey, blown glass light fixtures and solid coloured rugs. Fabric used would be in rich solids or self jacquard with a striking print used sparingly wherever required.
All of this against a white flooring, since colours stand out best against a white backdrop.


A master bedroom would be designed using a more neutral palette of colours, for example, beiges and browns. Combine pale beige walls with a contrast back wall in deep chocolate or tobacco as a backdrop against a white upholstered bed sleek lined beige furniture in a solid colour with contrast chocolate cushions, a solid coloured rug on a white flooring, decorative pieces in white with a hint of gold or chrome rich in character and detail, not necessarily expensive. A floor lamp in west wood and acrylic with matching bed side lamps, lighting should be soft with a dimming facility.
Coffer lighting and overhead spot lights can be used to enhance decorative art objects or sculptures, a collage of family photos on a wall in coordinated frames, fresh white flowers in glass jars, candles, coffee table books, modern, abstract art on a wall .Accessories should be used to enhance the visual mix of colours bringing glamour to your home.


Children's bedroom would be designed using soft pastels, baby pinks, powder blue, lemon or mint green, white lacquered furniture or natural light wood. Pale coloured wall or decorative wallpaper in soft colours, a cozy upholstered chair or couch or leathered bean bag. Bunk beds with bedding in children's print. Colours to soothe your senses.

Courtesy:- ET REALTY dt-10-12-2010

Designs that reflect lifestyle 
While designing a house, planners have now become sensitive towards environment, besides taking into account the aesthetic concerns 

Today's home plans are perpetually changing with style definitions, technology and materials constantly improving. The home plans on our drawing boards today are nothing like the places one may recall from childhood. Floor plans are changing to accommodate our new lifestyles and patterns of daily life. The flexibility in planning is the most sought after concept in today's residential planning. Wherein the home plans of yesteryear contained predefined areas for definitive activities, today's home plans demand large multipurpose areas. Formal dining, living and enclosed kitchens have given way to large multipurpose family areas. Sliding doors, movable partitions that allow flexibility in planning are being extensively used in today's residential designs.
  Another aspect of residential planning that has changed tremendously in comparison to yesteryear is the 'accessible home design'. Gone are the days of spiral staircases, and sunken living rooms. Today's homes demand that the designs be comfortable for people of all ages and abilities. Wide hallways blend seamlessly with spaces to give an open feeling to the house. The walls and partitions are minimized to only very private functions here.
  Abundant storage is a necessity in new homes that the onset of consumerism has brought in this decade. Spacious walk-in closets, dressing rooms, with plenty of easy to reach cabinets are incorporated in home plans and the simple wardrobe has reinvented itself with various types of organizer hardware available to maximize the storage facilities in home designs.
  Even the parking spaces and garage sizes are changed to accommodate the popular SUVs and other large vehicles. Until a few years ago, cars parked outside one's house was a luxury to those who afforded bungalows, but today cars are taken up using the car lifts up to any floor the apartment is located on. Lifts that were once upon a time a relief for people to climb floors have transformed to private elevator concept wherein the lift opens into one's private living room.
  Cathedral ceilings are passe but general high ceiling with abundant natural light is preferred. The building materials' technology has improved tremendously in the last decade and brought about many changes in residential building design. Factory-made building materials have come a long way and have enabled architects and builders to create bold new designs.
  Developers are building homes similar to manufacturing refrigerators or motor cars, thanks to the availability of modern building materials from across the globe. One such projects in Lagos in Nigeria has adopted to international building formworks wherein a site encompassing 600 houses has achieved building one house in 15 days, thanks to the available technologies.
   New designs allow use of glass and steel in residential spaces and the modular housing comes in all shapes and styles; from sleek straight lines to organic forms. The globalization demands contemporary look and feel to homes and these technologies enable an architect to achieve the same.
   As much as the advent of new materials and technology have changed the facets of home designs ,it has also brought about increasing awareness of the effects these materials bring in with them. Home designers today have to be aware of the way our health is affected by use of chemicals used in paints, synthetic materials and composition of wood products. The most exciting and important trend in today's design is the increased sensitivity towards environment. Planners are taking a relook at ancient building techniques that used simple bio-degradable materials! A radical shift from the last decade where in anything new and modern was simply considered trend-setting without much weight age give to its green properties. Increasing interest in eco-friendly architecture is encouraging planners to add outdoor spaces to overall home designs. Gardens and green spaces are becoming a part of the floor plan where the sliding glass leads to patios and decks. Structurally, today's residential planning demands structures that multi storeyed luxury abodes are earthquake resistant and there is steady progress made in engineering of homes to be storm ready as well. The safety aspects are important in residential planning today.
  Technology and smart homes are part and parcel of home planning with emphasis on security, energy efficiency with emphasis to time management. Access controls and CCTV cameras assure greater security at homes and controls for lighting and air-conditioning keep a check on energy bills. Integration of these is essential in today's home.

Courtesy: - ET REALTY dt-10-12-2010
Good lighting can add new dimensions to flat spaces

Good lighting design can awaken the magic in spaces and change a mood or improve productivity. It can transform flat and unappealing spaces into an entirely new dimensional arena.

Good lighting technique involves knowledge of contrast ratios, luminance, illuminance, photometrics of lighting fixtures, depth, use of colour; task lighting requirements, correct lamp colour temperature, low voltage track or cable system, fiber optics, effective cove lighting systems, correct lighting for art, lighting control systems and much more.

Natural light is a fantastic asset of any home, but the quality of the light depends on the aspect of the room. A north facing room receives the harsh rays of the sun, as east facing room receives bright sunlight in the morning flowed by long shadows and no light later in the day. Using artificial lighting controls glare and maximises the available natural light in north and east facing rooms.

South facing rooms have warm light all day, although it changes throughout the day and year. The midday sun is usually so bright it flattens everything out. South-facing rooms are mainly chosen for the kitchen, main living areas and other rooms that have maximum utilization. West facing rooms receive the sunlight at the hottest part of the day, which can cause glare. In the late afternoon, the room is subject to long shadows and softer light. To maximize the use of natural light mirrors, curtains, glass windows and doors, panels or partitions are most often utilized.

Ambient or background lighting plays the part of daylight and is usually provided by a central pendant light, a hangover from the days of gas lamps. It can be the source of most lighting problems as it creates a bland, flat effect. However, if you supplement general lighting with some or all of the other types, you end up with a great, flexible scheme. Staples include ceiling mounted bowls, wall lights and standard lamps.
Accent lighting gives texture, focus and shape to general lighting, adding depth and shade, with shadows in some corners and pools of light in others. It’s formed by a mixture of halogen spotlight, down lighters, up lighters, tracks and table lamps. With the latter, opaque shades that direct light down and prevent it spilling out are used. Tracks are great for lighting different areas of a room.

Task lighting is what you need in order to do a specific job, whether it’s reading, working at a computer, cooking, drawing or sewing. It needs to be focused on the area of use. If light seeps out, then that area is likely to get glare from other surfaces, especially computer screens. Task lights come with tungsten, halogen or fluorescent bulbs.

Lighting is of the utmost importance for creating the right ambience. By experimenting with different types of lighting, the mood of a room can change from calm and romantic to energizing and vibrant. Create a bright, warm glow with a combination of subtle light source with an emphasis on accent lighting. Reflective surfaces such as mirrors can be used to bounce candlelight around the room and crystals, diamonds, mirror balls and reflective baubles are ideal for adding that extra festive sparkle. Depending on the occasion, use different coloured light and bulbs and adjust the flicker speed on lights for a party feel.

Make a large room with high ceilings appear cosier; by adding several types of small lamps, singularly or in clusters to create low pools of light. Also, consider shadows when arranging your lights and add pierced-lanterns or light shades to create unusual patterns on the walls and ceilings.

You can change the mood of a room by experimenting with different types of lighting. Create a bright, warm glow light sources with an emphasis on accent lighting.

Courtesy:- Times Property – Dt – 27-11-2010
Furniture and other household products are being manufactured in a way to make minimal impact on the environment.

The buzzword in these days of energy consciousness is green, and the fact is that all of us can do something towards the cause in our own little individual ways. Creative professionals point out that your creativity can have free rein even as you make choices that help protect the planet.

Increasingly, they observe, manufacturers are creating products that have minimal impact on the environment, whether because they’re made from organically grown cotton or because they’re made with renewable resources. They are, of course, talking about the international scenario, but if you think about it, in India, we have been using organically grown cotton for ages in our home décor.

To begin with, consider your living room, and how you can make it greener. There are three main considerations in looking at green design. One is where the stuff of the furniture comes from are slow growing trees used in creating it, or is it made of renewable resources, for example? Second, what is the impact on the environment of the item in question – for example, how much electricity does is use? And the third consideration is how healthy the item is for the people, and pets, using it?

While studying green design for living rooms, it was observed that the stuff that makes upholstered furniture flame retardant is not that good for human consumption. The flame-retardant polybrominated dipheny1 ethers, or PBDEs used in upholstered furniture, have come under scrutiny by hose concerned with toxins in the home. The European Union has already banned some of them. They also say that there is some upholstered furniture that is PBDE free. Look for furniture that is make with organic cotton, filled with organic cotton batting, and make with untreated woods, they advise. They also advise searching for living room furniture that isn’t upholstered at all; there are chaise lounges available, for instance, that are made out of cork. This is also a winning material because it is renewable, and impervious to rot and mold, which is important for anyone with allergies.

Just a little care could go a long way towards making your environment a better place. Next time, don’t just buy readymade furniture blindly; look for ways you can make your home green.

Opt for plants

Plants can make your space green in more than one sense of the term. You can keep the air in your home clean by using plants. Instead of opting for non-utilitarian décor items and furnishings, try a foliage plant. Consult an expert to ensure that you choose the right plants for your environment.
Some require more light than others, so make sure you know which the right on is. Select hearty plants that are easy to sustain and maintain. Make a effort to take care of your plant. Replacing a dead plant with a new one carries an environmental impact.
Use green products. Planters make out of recycled or renewable materials are perfect. So the next time, don’t settle for a needless knick-knack, when you can have a real live fragrant plant in your home instead.

Courtesy: - Times Property – Date – 27-11-2010
"One needs to visualize the future in the next 20 years and then work backwards to create economically, socially and culturally sustainable models, says G R K Reddy, CMD of Chennai ? based infra major Marg.

MARG, has interests in infrastructure development with presence in diverse sectors like ports, ship-repair yards, dredging, marine logistics, special economic zones (SEZs), airports, power and multi-level car parks, MARG?s real estate business constitutes commercial spaces like malls, serviced apartments, hotels and residential spaces including villas, row houses and affordable homes, Established in 1994, MARG is promoted by G R K Reddy, CMD, a first generation entrepreneur with over two decades of hands on experience in financial and infrastructure related businesses.

Reddy says, ?One needs to visualize the future in the next 20 years and then work backwards to create economically socially and culturally sustainable models.?

MARG Swarnabhoomi, the company?s flagship project in urban and industrial infrastructure, is being developed as an inclusive and integrated ?new paradigm? city based on the principles of new urbanism, with unique offerings for business, living and learning. Based on the scenic East Coast Road (connecting Chennai to Puducherry) and designed by HOK, MARG Swarnabhoomi reflects Reddy?s drive to master plan the social fabric and his vision to design a new product for current and future generations.

Spread over 1,000 acres and housing two special economic zones multi-services and engineering MARG Swarnabhoomi is an aspirational habit6at that embodies the principles of ?inclusive growth?. Reddy says? ?The ever increasing urbanization in Tier 2 cities will lead to hygiene and pollution issues that can only be solved by upgrading existing infrastructure or building new cities. MARG Swarnabhoomi is only leading this trend.?

MARG also has a promising portfolio comprising MARG Karaikal port and another one at Mugalyar; urban residential clusters under the MARG Properties brand; MARG Junction Mall, Multi-level car parking and the Bijapur and Bellary airports. MARG also offers related services like dredging and logistics. From IT parks to residential constructions from seaports to airports, from integrated cities to value-enhanced homes, its expertise spans across the full infrastructure value chain.

Reddy sums up:?Our business of holistic regional development unlocks economic prosperity for all. We have embarked on an innovation led development that few have attempted. We are part of the canvas of a new and sustainable India and hence an intrinsic part of the growth story. ?

Courtesy:- Times Property ? Date: 27-11-2010
Ashish Gupta outlines some options available to a mortgagee under this law

The right of foreclosure is a right available to a mortgagee to recover his outstanding money. Mortgage is a transfer of interest in a property to secure payment of money advanced. A mortgagee provides some property as security to the mortgagee. The transaction is effected through a document called the mortgage deed.

The relevant provisions regarding foreclosure are contained under section 67 of The Transfer Property Act. The foreclosure right can be enforced on failure of the mortgagee has a right to obtain from a court a decree that the mortgagor should be absolutely debarred of this right to redeem the property, or a decree that the property be sold. A suit to obtain a decree that the mortgagor be absolutely property is called a suit for foreclosure.

This right of foreclosure can be exercised by a mortgagee only if these conditions have been met:

? The money has become due for payment
? There are no contrary conditions in the mortgage deed
? At any time after the mortgage money has become due to the mortgagee but before the mortgaged property
? At any time after them mortgage money has become due to him but before the mortgage money has been paid or deposited by the mortgagor

The remedy depends on the nature of the mortgage. in case of a simple mortgage, the right of foreclosure is not available. To remedy is either to proceed against the mortgagor personally or for sale of the mortgagee will be in possession of the property and will continue to be so until the debt is repaid in full. A person interested in a part of the mortgage money may institute a suit only to a corresponding part of the mortgaged property. However, this is subject to the condition that the mortgagees have severed their interests under the mortgage with consent of the mortgagor.

In case of anomalous mortgage, the remedy depends on the terms of the mortgage; the remedy depends on the terms of the mortgage. In the case of an English mortgage, the mortgagee may bring a suit for sale of the property. In case of conditional sale, the mortgage matures into sale on the failure of the payment of debt.

The mortgagee may foreclose depriving the right of redemption. In case of mortgage by deposit of titles deeds, the remedy is to sue for personal decree of for sale of the property. The right to institute a suit for foreclosure or sale is not available to a mortgagee for any work of maintenance in which the public is interested.

A mortgagee may hold two or more mortgages executed by the same mortgagor. In respect of each of such mortgages, he may have a right to obtain a decree of foreclosure. In case he sues to obtain such a decree on any one of the mortgage, he will be bound to sue on all the mortgages in respect of which the mortgage money has become due.

Courtesy:- Times Property ? Date: 27-11-2010
Amrapali, a much admired brand in the field of realty has earned the respect and appreciation of people because of completing and handing over projects as per schedule.

In nearly one decade and a half of its presence in the field of real estate, Amrapali Group has created more than 40 world-class complexes in residential, commercial, office and hospitality space. Today, this real estate major joys pan India presence having presence in over 20 cities. The group, under the visionary leadership of its CMS, Anil Sharma, has not only excelled in creating a trail of landmarks but has also diversified into fields like processed foods, hospitality and education. The group has made major inroads in the hotel industry by joining hands with intercontinental hotels group (IHG), a globally acclaimed brand in the hospitality sphere, to develop a chain of hotels in India.

The success story of this leading realty brand is driven by a sound vision. The core philosophy is to give shape, in the minutest detail, to the aspiration of today?s demanding gentry. So, the properties that the group builds are aesthetically and strength wise unmatched, but are surprisingly affordable. the malls that it builds are best n their class and a result of well planned strategy, taking care of all details for the success of the business establishments occupying the mall. With impeccable paraphernalia of the latest tools and technologies in addition to very dedicated professional workforce, the group has invariably succeeded to build and deliver projects n time. Sharma says, ? Amrapali is a much admired brand in the field of realty. We have earned the respect and appreciation of people because we complete and handover projects as per schedule. It goes without saying that every project built by Amrapali is world class and offers the best value for money.?

In the fast changing ambience of Greater Noida, the Group has come up with a revolutionary living concept known by the name of Amrapali Terrace Homes, the project offers high rise accommodation where each apartment has its own terrace garden a unique dimension to the apartment lifestyle. But the attraction of this feature-rich residential complex doesn?t end at that. It has a shopping arcade, that. It has a shopping arcade, multi-cuisine restaurant, spa and gym. A pleasant surprise for residents of the premium project is MS Dhoni sports Academy. This king of elite sports academy is something unheard of in such affordable residential complexes, but then that is how Amrapali Group works- offering customers more than their expectations.

The group has completed Amrapali Mall at Bareilly and has organized a grand opening has organized a grand opening for this very spacious mall on November 27, 2010. The star attractions of this excellently located mal are the wide central atrium, central air-conditioning, 3-screen multiplex, great ambience and capsule lift. The group is offering very attractive profit-based-lease-scheme to facilitate entry of even smaller entrepreneurs to boost their business by opening a sop in the most happening mall of the city. Many reputed brands have already occupied the space of their choice. Amrapali Clarks Inn, a reputed hotel, has already started operations. Set to impact the shopping and entertainment culture of the city n a big way, Amrapali Mall has been developed to become the commercial district of the city right from the word go.

Hospitality space n India presents great promise and potential, provided the infrastructure and services could be comparable with the best in the world. N association with IHG, Amrapali Group is setting up six world class Holiday inn Express Hotels with an initial investment of close to Rs 1000 crore. These top class inns are slated for the cities of Noida, Udaipur, Jaipur, Indore, Kochi and Patna. Beautifully incorporating ethnic and modern touch, these inns are poised to be a trendsetter in the hospitality domain. On the occasion of the formal association with the international hospitality brand Sharma pointed out, ?India?s need for world class hotels consistent with rapid economic growth makes this an opportune time for us to expand our hospitality portfolio. HIG, with its well-recognized and profitable brands, offers us a strong foundation to deepen our focus in hotel development. We look forward to introducing the fast growing Holiday Inn Express brand that offers an ideal mix of convenience, comfort and value. ?

Amrapali practices perfection. Some of the other built in factors enjoying consistent presence in every project of the Group are abundance of luxury and life style features with green building and Vaastu concepts, styling designing, strength, build-up area and green ratio facilities and ambience. ?We constantly better our benchmarks in order to keep pace with the changing needs of thousands of our satisfied customers,? Sharma sums up.

Courtesy: ET Realty ? Dt ? 26-11-2010
For Elegant Interiors
Fabric and colour should work together to create a feeling of elegance, warmth, peace and well-being

A home is an expression of who we are and how we want to live. It should reflect your personality and lifestyle. A home should be visually delightful and an inspiring combination of colour and design. A home should be distinctly yours.

Home furnishing and fabrics contribute immensely in making your home a haven to return to each day. Fabric and colour should work together to create a feeling of elegance, warmth, peace and well being. Colour and design helps create a mood which befits the area for which it is used. By using bold and striking prints and contrasting colours, you can create drama. And muted, subtle designs and colours can be used for a more romantic and cozy ambience.

Transitional is the word that best describes my style. I like interiors that are not just modern or traditional, but which will look beautiful for years in any setting. I would decorate a room using mostly solids, monochromatic tones, a combination of three or four colors, in rich textures or self embossed fabric, aesthetically merged, with a dash of design or bold print in the form of a cushion or decorative element like a chair or chaise lounge. Artefacts, lamps, rugs, paintings and other accessories also need to harmonise with the colour of fabrics used. Listing is an essential ingredient whilst decorating your home, as it highlights specific areas or objects, adding luster and shine. Metallic fabrics simply dazzle at night as they reflect a light source. Wall paint colour and wall papers can also be complemented with beautifully crafted and jacquard fabrics. The trend colours introduced this season are – Purple reign, Duck egg blue, Mellow Yellow, Mushroom wilderness, Soft Pink, Lime Green, Orange, Red hot chilli pepper red, Café Latte, Royal Marine Blue, Ebony, Ivory and Winter White.

Some suggestions in decorating an interior space – for example a main living room would be by combining colours like dove grey and deep aubergine purple , white, touches of glossy lacquered black furniture, a hint of chrome or silver through artefacts, just to add a bit of shimmer and glitz. Decorative accessories like mirrors and other reflective surfaces, a murano glass chandelier in smoke grey, blown glass light fixtures and solid coloured rugs. Fabric used would be in rich solids or self jacquard with striking print used sparingly wherever required.

All of this against a white flooring, since colours stand out best against a white backdrop.
A study would be more masculine. Natural woods and bark darken tans and hues of brown combined with black and grey, a wooden flooring, art and artefacts related to natural and wildlife.

Master bedroom

A master bedroom would be designed using a more neutral palette of colours, for example, beiges and browns. Combine pale beige walls with a contrast back wall in deep chocolate or tobacco as a backdrop against a white upholstered bed sleek lined beige furniture in a solid colour with contrast chocolate cushions, a solid coloured rug on white flooring, decorative pieces in white with a hint of gold or chrome rich in character and detail, not necessarily expensive. A floor lamp in westwood and acrylic with matching bedside lamps, lighting should be soft with a dimming facility.

Coffer lighting and overhead spot lights can be used to enhance decorative art objects or sculptures, a collage of family photos on a wall in coordinated frames, fresh white flowers, in glass jars, candles, coffee table books, modern, abstract art on a wall., accessories should be used to enhance the visual mix of colours bringing glamour to your home. A bedroom needs to be functional and above all practical.

Children’s room

A children’s bedroom would be designed using soft pastels, baby pinks, powder blue, lemon or mint green, white lacquered furniture or natural light wood. Pale coloured wall or decorative wallpaper in soft colours, a cozy upholstered chair or couch or leathered bean bag. Bunk beds with bedding in children’s print. Colours to spothe your senses.

Although all decorative elements are important in designing a home, fabrics lend tremendous warmth, colour and vibrance to an interior space, thus creating a pleasing, attractive and soothing ambience.

Courtesy – Times property – 20-11-2010
DDA announces new scheme

AVAILABLE 1, 2, 3 BHK houses, priced between Rs. 9 lakh and Rs. 1.12 cr, up for grabs

Your wait to own an affordable house in Delhi could end soon, with the Delhi Development Authority launching its new housing scheme next Thursday. It is biggest housing scheme till date, the Delhi Development Authority (DDA) is offering 16,000 flats, priced to suit all budgets across the city.

Applicants will have to deposit Rs 15 lakh as registration amount, which will be refundable. The scheme will be launched on November 25 and applications will be accepted till December 24.

The draw will be held within four months from the last day of closure.s

The flats are located in areas such Vasant Kunj, Mukherjee Nagar, Motia Khan, Jasola, Dwarka, Rohini, Narela, Jaffarabad, Kudli and Gharoli.

There is a mix of one bedroom, two bedroom and three bedroom houses and the prices are between Rs 9 lakh and Rs 1.12 crore.

The cost of construction of these flats ranges from Rs 1,536 to Rs 6,069 per square feet. The most expensive flats in the lot will the ones in Vasant Kunj.

These furnished flats have been made with higher specifications and will cost more than Rs 1 crore.
Information brochures for the housing scheme, along with application forms, will be available at select branches of state bank of India, IDBI bank, Axis Bank, HDFC bank, Central Bank of India, ICICI Bank and Union Bank of India, Brochure will also be uploaded on the DDA website on November 25 and applications can be submitted online too.

Singed by controversy due to forged documents being submitted by several applications in its last housing scheme in 2008, the DDA has introduced more stringent rules, this time around.
A new condition, that requires the allotment money to be from the bank account of to allottee, has been inserted.

The allottee will also have to submit a copy of the bank passbook and bank certificates at the time of possession.

This is also the first time that houses for the economically weaker sections of society have been included in a housing scheme. These flats include janta one room houses in areas like Narela, Trilokpuri and shivaji enclave.

These houses are priced between Rs 3 and 6 lakh the registration amount is Rs 50,000.
Eligibility criteria

• Any citizen of India, not younger than 18 year

• Applicant should not own any residential flat or plot in full or in part on lease hold or free hold basis in Delhi either in his or her own name or in the name of spouse o r minor or dependent children

• Both husband and wife can apply but only one will be allotted flat in case both are found successful

• One person can submit only one application form

• There is no income criteria

• Applicant needs to have valid pan card and a bank account

• Allotment money should be from allottee’s bank account

How and where to apply

• Brochures are available at select branches of SBI, IDBI bank, Axis Bank, HDFC Bank, Central Bank of India, ICICI, and Union Bank of India

• The cost of the form is Rs 105; details of brochure available on DDA website from November 25

• Documents to be submitted include self-attested copy of PAN card, proof of residence and self-attested copy of bank account

• The reservations will be such: SC:17%, ST:7.5% and one percent each for war widows, disabled and ex-servicemen

Courtesy - HT - Dt -20-11-10

Land acquisition now made trouble-free

Haryana will give financial incentives to those who abstain from initiating litigation over land acquisitions.

In a forward-looking move to reduce the number of litigations and to expedite land acquisition in the state, Haryana government introduced a no litigation incentive to those who abstain from initiating litigation over and above the government fixed rate. This revised policy is likely to give a leg up to planned development of cities and other urban areas in the state. The amended policy is also likely to placate angry farmers in the state who have been demanding a hike in compensation.

Experts feel this will also give a push to the development of residential as well as commercial space in cities like Gurgaon, Faridabad and Sonipat.

“The increased minimum floor rate(MFR) might also pave way for withdrawal of several cases pending in different courts-meaning, the government residential projects which are now facing problems would get major relief,” said a real estate consultant. As per the amended land acquisition policy, the MFR has been almost double and in some areas it has been increased further: in a clear-cut commitment to push rehabilitation of the affected families the government announced that landowners will be given government jobs. The change3s came into effect from September 7.

In his announcement, the state chief minister Bhupinder Singh Hooda said the highest of Gurgaon. Under the innovative concept of no litigation incentive, landowners will get Rs 72 lakh per acre of land falling under the Gurgaon municipal limit. Otherwise, the revised MFR for Gurgaon land owners would be Rs 40 lakh per acre against the prevailing rate of Rs 22 lakh per acre.

“This was long due for the farmers and we wanted to come out with a progressive land acquisition policy. This has been widely welcomed by farmers and landowners,” said the CM’s media adviser Shiv Bhatia. However, many experts are sceptical and question whether this policy won’t end up giving private players an advantage. “Landowners would prefer to sell their land to private players at a higher rate than letting the government acquire it at much lower price. They would end up taking the case to courts,” said a property consultant.

As per the revised rate, for land located within the notified limits of Faridabad and Panchkula municipality and areas falling outside the development plans of Gurgaon-Manesar Urban Complex, Sohna and Sonipat-Kundli urban complex, the MFR has been fixed at Rs 54 lakh per acre. This will include Rs 6 lakh as ‘no litigation incentive’. The areas which fall under the development plans of Bahadurgarh, Rothak, Rewari, Dharuhera,Bawal, and Panipat towns, the MFR is Rs 45 lakh per acre, including Rs 5 lakh as no litigation incentive.

The government has announced an increase in annuity amount payable over 33 year, as well as its incremental annual hike, along with an offer of bigger-size plots in case a residential property is acquired. The affected farmers would also be offered industrial and commercial plots keeping in view the location of the land and in case they are rendered landless after the acquisition.

The minister of state for agriculture and Gurgaon MLA Sukhbir Kataria, has said that as per the policy, in case a landowner whose land is acquired purchases alternative agricultural land within the state in tow years, he would be entitled to get exemption on stamp duty and registration charges.

“Moreover, 2@ of the land acquisition compensation amount will be set apart by government agencies like HUDA and HSIIDC for community development and infrastructure works in villages, which are affected by the land acquisition for industrial or residential development. Similarly, another 1% of it will be use on skill-development initiatives for the dependents of oustees and other landless people,” he adds.

Courtesy – Times Property – Dt – 20-11-2010

Flats for all economic categories
Form Vasant Kunj to Kundli, the DDA Flats Cover a Wide Price Range

Finally, Delhi Development Authority has announced what everyone has been waiting for. Its mega housing scheme will be open from November 25 to December 24 this year. Around 16,000 flats will be offered for the draw. These are located all have Delhi in colonies like Vasant Kunj, Mukherjee Nagar, motia khan, Jasola, Dwarka, Rohini, Narela, Jaffarabad, Kondli and Gharoli besides other colonies.

The cost of construction of these flats ranges from Rs 1536 to Rs 6069 per square feet. The flats located at Vasant Kunj, which have been built according to higher specifications, will attract a higher price. The cost for the new scheme flats includes lumpsum maintenance charges for exteriors and common portions.

In order to make the flats accessible to all sections or society, there is a mix of one bedroom, two bedroom and three bedroom houses, expandable units and Janta one room houses. It is for the first time that the one-room tenements located in Narela, Trilokpuri and shivaji enclave have been included in the scheme.

Any Indian citizen who has attained the age of 18 years can apply for the flat provided he or she does not own any residential flat or plot in full or in part, on leasehold or freehold basis, in the capital either in his or her own name or in the name of his/her wife/husband or in the name of minor or dependent children.

Both husband and wife can apply but only one will be allotted a flat n case both are successful in the draw. One person can submit only one application form. There are no income criteria. The applicant can apply only if he has a valid pan card and a bank account.

For the first time, it has been made mandatory that the entire allotment money should be from the bank account of the allottee and a certificate to this effect will have to be submitted at the time of possession.

The applicant will have to deposit a registration fee of Rs 1.5 lakh. But for the Janta one-room tenement category, the amount is Rs 50,000. The cost of the form is Rs 105 and it will be available at various designated branches of the banks. The form details which have been provided in the brochure will be uploaded on the website of DDA on November 25.

The reservations for scheduled castes will be 17%, scheduled tribes 7.5%, one per cent for war widow, one percent for the physically handicapped and one percent for ex-serviceman.

Drawing a lesson from last time when the draw came under a cloud, DDA says to ensure that the money is deposited by the allottee only, a copy of the pass book along with bank certificates will have to be given at the time of possession and it will also be sent to the income-tax department by DDA.

The draw will be held within a period of four months from the last date of closure of the scheme and, therefore, no interest will be paid for this period. Money will be refunded to unsuccessful applicants at the earliest, and in case the money is not refunded within four months time from the closure of the scheme, simple interest at the rate f 5% per annum will be paid. The refund as in the earlier scheme will be paid though the banks only.

Courtesy – Times of India – Dt. – 20-11-2010

Luxury now within your reach

TDI has opened bookings of Tuscan Heights Phase-II with 250 apartments following overwhelming response of Tuscan Heights Phase-I project at Kundli. Rajarshi Bhattacharjee reports

As the real estate sector in NCR is in full infrastructure limited has more than just pocket friendly price to offer with its strategically located project at Kundli. After an overwhelming response for Tuscan Heights Phase-I, TDI has introduced Tuscan Heights Phase-II where luxury meets affordability.

A part of sprawling 53-acre Tuscan city. Tuscan Heights Phase-II is located at TDI city at Kundli. Nestled right beside the NH1 in a clean-green ambience, it is 15 minutes signal free drive away from up market residential hubs of north and North West Delhi. For it s strategic location on the border of Delhi along NH1, Kundli is considered the gate way to prosperous states like Haryana, Punjab and Himachal Pradesh.

Uniqueness of the location and land rates has also made this fast developing city an ideal destination for investment. Apart from the third existing industrial zones nearby – HSIIDC, Kundli industrial Area (KIA) and Rai Industrial Area (RAI), the growing industrial and business zones here are likely to generate significant job opportunities, Tuscan Heights also boasts of having the upcoming 5000-acre Rajiv Ghandi Education City in its proximity that is likely to emerge as a global academic hub. Top universities from around the world and a number of their Indian counterparts have already expressed interest to be a part of the Rajiv Gandhi Education City at Kundli.

On the other hand, land rates at Kundli are presently one-tenth of what these are in up market residential areas of North Delhi viz Pitampura. Rohini etc. , which is an opportunity for both customers and investors. Appreciation of value is also estimated to be significantly high considering the planned development and investment prospects here. When TDI city was launched four year back, land rates  Kundli was Rs 4,750 (approx Rs 5,000) per sw. yds at TDI City. Today it stands at close to Rs 25,000 per yads. Rate has per sq. yds. This Rs. 25,000 per yds. Rate has potential to further appreciate manifolds in near future.

In lines with the first phase, Tuscan Heights Phase – II is designed to offer the look and feel of Tuscany in Italy, which with its capital Florence is considered as the birthplace of Italian renaissance. A typical Tuscan village is synonymous with the landscape dotted with heritage architecture, pebbled pathways, ornamental street lamps and railings, fine cuisine, exquisite red wine, along with music, opera and much more.

Reliving the charm of Tuscany, this township too will have classical fountains, water bodies, cobbled pavements and a central plaza, which is a public square in an Italian town. The whole place will have arches as motifs and the developers promise world-class amenities with professional maintenance facilities, as designed by famed architects HO Partner, Hong Kong.
Kamal Taneja, managing director. TDI infrastructure limited says,”A part from being a business destination, Kundli has evolved to be a fantastic place to live at. Considering the strategic location and appreciation of value at Tuscan Heights or aim is to provide high quality and international flavor in architecture, integrated in a township with world class infrastructure and amenities. The USP of Tuscan Heights is luxury within your budge.”
The other social infrastructure adjacent to Tuscan Heights include TDI mall, Oxford Street, Kings street to name a few, for shopping and entertainment, state-of-the-art hospital and healthcare facilities, primary and high  schools, a health club, temple, among others.

But to make it within the reach of all pockets, Tuscan Heights offering 2 BHK, 3 BHK and 3 BHK+ study are priced at Rs 2175 per sq. fts. If that is not all, TDI infrastructure Limited is also offering exciting schemes like assured gifts like televisions, air conditioners, food processors, holiday packages for couples to Thailand, Dubai Singapore with each booking till 15th December 2010.

Courtesy – ET Realty 19-11-2010

Industrial growth poised to leap forward
Bahadurgarh, one of the upcountry areas, rings bell now. Given easy connectivity form Delhi and cheaper land rate, as low Rs 14,000 per square yard, many industrialists have started their factories in this area. 100 more factories are slated to start their production by next year. Haryana government is showing positive attitude too; looking at the enthusiasm of private players it wants the place fast. Pallavee Dhaundiyal Panthry takes a look at the ongoing developments in the area
Bahadurgarh, which may confuse you with some tourist ‘garh’ or fort, has been much talked about as an upcoming industrial hub, these days. In fact, our last feature on Bahadurgarh did mention the essence of this place as an industrial terrain. The place is very approachable form Delhi, for it is less distant from the capital and has good road infrastructure now. The Delhi Metro route till Mundka has also benefited many people traveling to Bahadurgarh. Soon, Delhi Metro is slated to extent and pass through the heart of Bahadurgarh, which will change the facet of this place.
Earlier, the development of industrial belt or residential zone use to be the driving force behind creating road connectivity. But now, the roads development plans and connectivity is deciding the way future cities are emerging, or are likely to come up. Kundli-Manesar-=Palwal expressway, 135 km- long, coming up around Delhi, is one of the best examples here, which would prove to be a bonus to Bahadurgarh. KMP Expressway is set to prove the single major catalyst of both residential and commercial development in Haryana. Also known as Western peripheral Expressway (WPE), it is already under construction and will be completed soon. The corridor will see major industrial and residential development in the next few years. Already, major developers like TDI , Parsvnath Ansals, Omaxe have started coming up with mega residential and commercial projects close to the expressway to cater to future needs.
The alignment of the expressway takes off from National Highway-1 near Kundli, crosses NH-10 at West Bahadurgarh, crosses NH-8 near Manesar, and finally joins NH-2 near Palwal. It passes through Gurgaon, mewat, rohtak, jhajjar and Faridabad, which are the fastest growing urban centres in NCR.
To boost industrial development along the corridor, specialized industrial estates have been planned at strategic locations. They include footwear and leather-garments parks at Bahadurgarh, food park at Kundli in Sonipat, gems and jewellery park at Udyog Vihar in Gurgaon, and two apparel parks, one in Gurgaon and another at Barhi in Sonipat. Besides, we will bring major relief to the commuters on this highway.
Industrialists are quite happy with the ongoing progress in and around Bahadurgarh. Amit kapur, member, Bahadurgarh Chamber of commerce and industries and MD, Everest Blowers, said: “In terms of overall development of Bahadurgarh, it is progressing with good pace now. With progress in terms of Delhi Metro’s expansion plans, six lane Delhi-Bahadurgarh-Rohtak highways and KMP expressway, I can easily foresee a new Bahadurgarh in next five years.”
Apart from widening the existing national highway, two long bypasses are also in the process of construction at Bahadurgarh and Rohtak. The bypass of Bahadurgarh would be 13 km long and bypass of Rohtak would be of 25 km. “though these road projects are running behind scheduled time, yet, once they become operational, will prove a boon for Bahadurgarh’s and the state’s economy”, said NL Narang, general secretary, BCCI, and owner, Filcard Industries
Changing face of Bahadurgarh in next one year
Sector 16 of Bahadurgarh has been developed as a general-purpose industrial area, sector17 as a footwear park and sector 4B, which is spread over an area of 189 acres, is the newest expansion area of the estate. Gulshan kumar, DGM, HSIIDC, industrial estate, Bahadurgarh, District Jhajjar, gave a clear idea of current scenario these three sectors. In sector 17, out of 368, more than 200 plots are under construction and 10 units are carrying out production in full swing. Sector 16 has 241 plots in total, out of which 100 are in the construction mode and five units are in the production phase. Sector 4B, has 46 plots and only tow are in the process of construction so far.
According to kumar, Bahadurgarh will be a different place in just one year from now. He explained, “There are many serious as well clever players in Bahadurgarh. Serious ones are already in their production phases and some of them are I construction mode, while the clever ones are only sitting on their plots. We have, so far, resumed nine plots as owner of these plots were only awaiting prices of these plots to escalate so that they could have sold them further. Notably re-sale of such plots is completely unauthorized; it is not recognized by the government and has no value.”
He future added, ”We have given a notice to all to finish their construction work by July 2011. Out of 200 plot, which are under construction, we expect at least 100 to start production by next year. The functioning of 100 factories is assured to bring a good change in this area.”
Courtesy – ET – Dt -19-11-2010
M3M Group has formally launched its flagship project M3M Golf Estate in Gurgaon and the sale is by ‘invitation’ only. KRISHNA KUMAR MANGALAM reports

M3M Golf Estate, a project of the M3M Group, was launched on October 22 in one of the poshest parts of Gurgaon — Golf Course Extension Road, in Sector 65. This flagship project of the M3M Group also enjoys the advantage of connectivity and is close to the Indira Gandhi International Airport. Spread over 75 acres, M3M Golf Estate boasts of ultra luxury apartments built around a 9-hole reversible ‘in-city’ golf course designed by world famous architect, Graham Cooke.

Basant Bansal, chairman and managing director of M3M Group, planned the project round the concept of an exotic vacation resort, which can be snapped up by prospective end users looking for an ultra luxury living in the middle of an urban setting.

Boasting of state-of-the-art apartments, modern amenities and an aesthetically designed golf course, the project will feature luxurious outdoor and indoor living spaces, state-of-the-art kitchens replete with fittings and high-end fixtures, Wi-Fi in all buildings, roof-top jogging tracks and a world-class club house.

Basant Bansal says: ?We have also started the internationally accepted style of the escrow-account system, which ensures proper funding and timely delivery of the project. We have engaged the best architects and interior decorators in the world for this project. The M3M Group will change the way the metro-centric Indians live.?

Golf Estate provides a luxury option for the ever growing community of expats, corporate honchos and HNIs in the region.

Bansal adds: ?We are proud to announce the launch of M3M Golf Estate, India?s first 7-star residences, in Gurgaon on October 22. This is a one of its kind project in the region and provides an ultra luxury living option; we have received appreciation from across the world for Golf Estate. The project will redefine luxury, art and architecture.

The project has been designed keeping in mind the taste, the class and the requirements of our target audience.?

Bansal say: ?The launch of M3M Golf Estate will add to the luxury quotient in the developing real estate market, especially in Delhi and the NCR region. We plan to add further projects across India in the coming months.? The project has received awards internationally as the ?Best Upcoming Golfing Lifestyle Residences in India? in the US, the UK and Dubai.

The project has been designed by the renowned architects and design group, Arcop Group, from Montreal, Canada. The interiors of the Golf Estate buildings have been designed by Cecconi Simone Inc.

?The company has gained over 25 years of real estate expertise with diverse and complementary talents from a rich network comprising top-notch intermediaries, financial institutions, high net worth individuals and some of the most reputed developers in India. Our Golf Estate project is valued at over $1.5 billion. M3M Group has already embarked on other verticals in the commercial and retail space as well as the IT/SEZ areas,? Bansal adds.

Times Property ? Dt- 13-11-2010

War against the bubble

RBI’s new measures are likely to prevent a real estate bubble and help home buyers, says Vandana Ramnani

Sanjay Modi and Bhaskar Roy, Both IT professionals, have been looking for homes that suit their Rs. 40 lakh budget. They have scouted markets such as the Noida Expressway, Indirapuram, Vaishali and even Gurgaon, but have not been sure enough to zero in on a property of their choice. And right in the middle of their hunt, the Reserve Bank of India (RBI) unveiled its second quarter review of monetary policy last week, making norms for housing loans more stringent, aiming to curb excessive borrowing. It is estimated that property prices in most metros have already touched pre-slowdown levels. The average rise in property prices this year (from January 1 till today) is as high as 30% in some markets. So, how will the apex bank?s recent announcements impact Modi and Roy?

Cough up 20%

As per the new norms, buying a home will became expensive for those who are totally dependent on a bank loan. So, its time you saved up before going in for a home or a loan. Buyers can now avail only 80% of the value of the house from a bank and will have to arrange for the remaining 20% on their homes. So, if their budget is Rs. 40 lakh, the maximum loan they can be granted by the bank is Rs. 32lakh ? much less than the almost 90% loan being sanctioned by some banks. This measure is intended to check overheating in the property market and the immediate reason seems to be the 10-90% scheme wherein the home buyer has to pay only 10% of the property value upfront as booking amount and 5% on possession. It is a preemptive measure to rein in inflation and prevent an asset bubble in real estate.

Economic growth and favourable macroeconomic factors have so far been sending the real estate sector into overdrive. In most cities, property prices have gone beyond the consumer?s reach and investor driven speculative activity has resumed. Says Sachin Sandhir, managing director and country head, RICS (Royal Institution of Chartered Surveyors), India,?These ?short-sighted? moves have proved detrimental in the past and have once again reared their ?ugly head? and? could undoubtedly affect the overall health of the market. These ?pre-emptive? measures by the RBI are in anticipation of another property bubble being created as a result of increased domestic inflows in the real estate sector which have been driving property prices to new high in major markets over the last few months.?

The fact that banks will now provide only 80% of the loan is a good guideline as this will ensure that only serious home buyers with borrowing credibility make a real estate purchase by availing a home loan. This will reduce risk in the system and control an asset bubble. People may have to put in additional finances but in the loan run it will ensure health in the financial system and reduce speculation, points out Adhil, CEO and founder, BandBazaar.com

In its review of the monetary policy, the RBI has made its unease with the special rates or the teaser home loan rates scheme official. These loans are offered at a discount of the first few years to entice customers, after which the rates go up. To discourage teaser loans, the RBI has increased the provisioning for such loans from 0.4% to 2%. This means that for all outstanding teaser home loans, banks will now have to set aside as a cushion a onetime additional standard provision of 1.60% and in the future account for this additional standard provisioning norm if they decide to continue with the teaser rate scheme. Such schemes present a high risk to banks as borrowers are likely to default/find it difficult to service their loans in the loan term when the prevailing-normal rate of interest becomes applicable. The move by the RBI will now force banks to rethink their strategy with respect to such product, given the extra associated costs.

According to shetty of Bankbazar.com, if the buyer decides to go in for a house now, he could be in position to cash in on the teaser rate schemes till they exist. However, buyers should look beyond the low rate being offered for the first three years as they will be paying interest for the next 20 years (the average life of a home loan).?My advice is that for every loan, calculate the total cost. Second, take your expected EMI payment over the lifetime of the loan and add the processing cost to that. With that you will arrive at the total coat of the loan. As far as teaser rates are concerned, what matters is what you pay from the fourth year onwards up to the 20th year. Customers should go for a home now as rates are headed upwards, says Shetty.?

Loans above Rs. 75 lakh made expensive

The apex bank has also increased the risk weight on housing loans of Rs. 75 lakh. The rise in interest rates on large-ticket loans is expected to be higher given the increased risk weight in the segment. This could help moderate the demand for loans of above Rs. 75 lakh and control overheating in the property market. ?The risk weight age for such loans has been increased since there tends to be more volatility in prices for higher value loans and there is a large speculative element. This well makes it more expensive for the buyer and hence it?s a good step, ?points out Harsh Roongta, CEO of apnapaisa.ocm

The apex bank has also increased the risk weight on housing loans of Rs. 75 lakh. The rise in interest rates on large-ticket loans is expected to be higher given the increased risk weight in the segment. This could help moderate the demand for loans of above Rs. 75 lakh and control overheating in the property market. ?The risk weight age for such loans has been increased since there tends to be more volatility in prices for higher value loans and there is a large speculative element. This well makes it more expensive for the buyer and hence it?s a good step, ?points out Harsh Roongta, CEO of apnapaisa.ocm

It is also worth pointing out that last week the National Housing Bank, regulator for the housing finance companies, has issued guidelines on the issue of pre-payment charges to housing finance companies such as HDFC, LIC housing and Dewan housing. They have been asked not to charge loan prepayment charges if the payment is made out of the customer?s own source of funds.

The impact on home buyers

The RBI measures will largely work in favour of the homebuyer as they will go a long way in controlling the spiralling real estate prices. The buyer can look forward to a stable price regime going forward, point out realty experts.

The macroeconomic environment is changing and GDP growth is on expected lines, which means that the disposable incomes are bound to rise and jobs will continue to grow. The rbi recognizes the fact that prices have run up sharply in the last one year, not necessarily backed by fundamental and user demand. These proactive measures will ensure that there is stable and steady growth in property prices (not more than 5-10%). ?Going forward,? the end user will have many housing options before him and price stability will ensure that he gets reasonably good value for his money because prices are not likely to rise any further. This is the right time to exercise your choice, ?advises Priyankar Bhikshu of DTZ research India.

Even if interest rates were to move up slightly, demand may not be impacted as in case of residential property for self-use, the price of the property is a bigger determinant than interest rates.

?Interest rates would hardly dictate the timing of the buy. Advice to customers is that they may still get a good deal. It makes sense to buy now if the intention is to buy for self use. Delaying your decision will not make sense,? adds Roongta.

Courtesy HT estates Dtd :-13/11/2010

Builder flat

A buyer must thoroughly check all related documents before buying this asset

As prices of single unit houses climb prohibitively higher, more and more people are opting to buy builder flats, both in Delhi as well as in the surrounding NCR area. Builder flats are easily available, and according to real estate market watchers, this year their sales have gone up 20-25% compared to the same period last year, their prices have also risen 10-20% depending on the type of flat and area where it is situated.

It is essential that buyer?s property check the property papers before purchasing the flat so that they face no problems later. It is always advisable to buy a flat constructed by a reputable builder. Better still, by from a builder who has been in the construction business for a considerable period of time. The buyer checks the previous projects of the builder and the visit one or two to judge the quality of work. This also gives the buyer a chance to speak to others who have bought flats constructed by the builder and get feedback about their experience. However, good quality flats are made by lesser known builder as well.

Builder flats are available in various categories, including those which are ready to move in, or are under construction and others that have to be booked before the construction work has begun. Obviously, the best option is to buy flats that are ready since this gives you a chance to see what you are buying. Flats that are still under construction carry the risk of completion being delayed (though most reputed builder generally do not delay projects).

When booking a flat, buyer?s punctuality in delivering flats to avoid blocking of the booking amount. The easiest way to do so is by the builder?s earlier projects and his delivery history. Property papers that need to be checked include ownership papers. Check the entire chain of ownership of the plot right from the time the plot was allotted or purchased by the first owner, till the time it was bought by the builder. Many builders make an out-right purchase of the plot and the sale deed can be viewed.

Others might build flats in collaboration with either the owner of the plot or another party. In this case, the collaboration agreement should be checked to ensure the builder actually has the rights to sell the flat. Check the terms and conditions of the agreement. Says Anil Kumar, based on Malviya Nagar, who runs GMR Construction and has been in the business for over 12 years, property ownership papers should definitely be checked for ownership.

Also check that the building plans for the property have the requisite sanction from competent authorities and the flat conforms to those plans. Ideally, get a copy of the completion certificate issued by the local civic agency. Beware, however, that many builders do not bother to get a completion certificate.

Additionally, a copy of the forms relating to electrical conduiting, and sanitation lines should also be obtained.

Others papers that need to be checked include property tax papers. Electricity and water connection arrangement ought to be checked to make sure separate meters for each flat have been installed.

Gurgaon-based Captain Manpreet Singh Chawla of Amarveer, a realty company, says it is vital that buyers get the property papers checked by a lawyer or a reputed property agent who can verify the authenticity of the documents. The fee required to get this done is hardly anything compared to the lakhs or even crores of rupees one is spending on the builder flat. Do not accept the papers? authenticity at face value. Check it meticulously.

Courtesy by : ht estates Dtd :-13/11/2010

Rein In Your Home Dreams
RBI’s toughened stance on home loans will prevent your home aspirations from spiraling beyond control

Home hunters are in a spot. While real estate prices are not showing any signs of easing (in fact, they have started hardening again), the Reserve bank (RBI) has chosen to tighten a few norms for home loans, adding to borrowers’ woes. In its recent policy review, RBI has taken three steps that will adversely impact prospective homebuyers who are dependent on home loans. To begin with, the loan-to-value ratio has been lowered to 80% from 85%. This means that you can borrow only up to 80% of the value of the property that you plan to purchase. The remaining 20% has to be funded out of your own/family savings. Secondly, RBI has also increased the standard asset provisioning requirements to 2% for all the teaser rates offered by scheduled commercial banks.

Teaser loan rates typically offer loans at a fixed rate for the first three years and then move on to the floating rate. The fixed rate is as low as 8.9%, which is fairly insulated from the rate swings at least in the first three years. These loans were a boon to customers who typically finish their repayment within 5-7 years. RBI’s stance on this issue is; this practice raises concern as some borrowers may find it difficult to service the loans once the normal interest rate, which is higher than the rate applicable in the initial years, becomes effective. ”The central bank has also noted that at the time of initial loan appraisal, many banks do not take into account the repaying capacity of the borrower at the normal lending rates. This is the reason why the central bank has increased the risk weight for residential housing loans, of Rs.75 lakh and above, to 125%.

Impact Of Stricter Norms: Even as banks, developers and housing finance companies are in the process of digesting these measures, financial advisors have welcomed these steps, saying the customers will now have to take more prudent financial decisions. “Homebuyers often overshoot their budget aspiring for a bigger house. They bank on their future salary hikes and borrow up to even 80% of their take-home salary. In terms of financial planning, these measures are to be lauded. Also, every borrower should examine his repaying capacity rather than his loan eligibility,” says Pankaj Mathpal, a Mumbai- based certified financial planner.

The measure, which has a direct impact on homebuyers, is the low loan-to value ratio. Earlier, on a Rs.50 lakh or even more in certain cases. As per the new stipulation, you will have been eligible to borrow Rs. 42.5 lakh or even more in certain cases. As per the new stipulations, you will be eligible to apply only for a loan of Rs. 40 lakh. “Certain Southeast Asian Economies such as Thailand and Singapore started regulating loan-to-value ratios because of an asset bubble in the real estate market. The RBI is anticipating a similar situation here. There is no way a borrower can mitigate the impact of lover LTV. But this regulation has been introduced only in his/her interest,” says Harsh Roongta, CEO, Apnapaisa.com.
Amar pandit, certified financial planner, My Financial Advisor, add, “Clearly there is an asset bubble and the property market, especially in the metros, is overheated. Hence, RBI is justified in protecting home loan borrowers. It wants to avoid a scenario where over leveraged borrowers may be staring at lower security cover if the property prices start falling.”

Let us assume you have borrowed Rs.90 for a property valued at Rs100. While you are repaying the loan, if the property value dips to Rs80 at any point of time, banks can ask for additional collateral. This is because they should have lent only Rs 72 as per loan-to-value ratio. At this point of time, you have to provide additional collateral or pay the extra margin money. If you are not in a position to pay up the extra cash/collateral, the bank can categorise you as a defaulter. This is clearly mentioned in the home loan agreement.
Should You Wait ‘N’ Watch? : Things will not change from the regulators’ perspective. The lover loan-to-value ratio is here to stay. But certain pockets in metros such as Mumbai, Delhi and Bangalore can see a modest correction; hence a prospective homebuyer can wait to clinch a more affordable deal.”Certain builders, who are able to hold on to their flats to avoid selling at lower prices, will try to create an artificial supply shortage. Smaller builders will not be able to withdraw from the market on a sustained basis. These new regulations are not going to chance either. Hence, I would advice homebuyers to wait until some clarity emerges,” Pandit adds.

Save For Sown Payment Now: Buying a house cannot be an overnight exercise. If you are planning to postpone your home purchase, use this time to systematically cough up some funds for down payment. Maneesh Joshi, a Mumbai-based creative director, has been saving in three SIPs (systematic investment plans) worth Rs. 20,000 since 2006. He also deposits Rs 60,000 in mutual funds once in six months, which is dedicated for the purchase of the house. “The main objective of these SIPs is to buy a house. I am not looking at other goals rainy days. My profession is very volatile in nature. So I have to keep a contingency fund,” says Mr. Joshi. He has an in- principle approved home loan of Rs. 70 lakh. Still he hasn’t rushed into buying a property. He wants to cough up Rs. 15-20 lakh for the down payment.

Go For Joint Home Loans: It’s the best way to share the loan burden, especially in case of working couples. This trend is already picking up in metro such as Mumbai, Delhi or Bangalore due to spiraling of real estate prices. a joint housing loan comes with a number of advantages such as bigger loan amount, higher tax benefits and so on. To avail tax benefits, both the borrowers have to be co-owners. Co-borrowers, who are also co-owners, are eligible for tax rebate in the proportion of their share in the loan. It means, you have to consider the repayment capacity of each spouse while deciding the share of the loan. So, a couple can be equal owners but if their share of the loan is in the ratio of 60:40, the tax benefits will be shared in the proportion.”You have to get a break-up of share of the loan on a stamp paper at the beginning itself to avoid tax complication,” says Vaibhav Sankla, executive director, Adroit. The maximum tax deduction available for a single borrower is Rs 1.5 lakh. This deduction will apply to each borrow, taking the total possible deduction to Rs 3 lakh. But a word of caution here. Before you decide on shouldering such huge loans together, it is better you do some self-evaluation. “Don’t borrow up to the maximum limit as a percentage of your income. You should keep aside some contingency funds and investments which will come in handy in case of unforeseen emergencies such as job loss, forced sabbatical or even a family. Hence, single borrowers should not stretch their housing loan EMIs beyond 40% and double borrowers beyond 50% of their take home salary, “Suresh Sadagopan, a certified financial planner adds.

Courtesy HT estates Dtd :- 11-11-2010

A unique aspect of an affordable home project Is its relative price advantage in the near term-this works well both for end users as well as property investors.

The concept of affordable housing is a gift of the downturn. Like it is said. ‘Sweet are the uses of adversity.’ While at no time is an economic downturn useful or welcome, the 2008 recession gave those looking for homes in the Rs 20 to Rs 35 lakh segment something to cheer; The lack of activity in the midrange segment led many developers to venture into the affordable homes market. The result is a concept here to stay. Affordable homes typically combine the best of both worlds to the extent possible. The carpet area is relatively smaller but many of the other basic amenities are offered. This is possible due to the relatively lower land costs at locations these projects are developed in – invariably in the suburbs. Land forms a large chunk of an apartment’s cost and when this cost is low, the apartment can be sold for a much lower price tag. This is also the reason why an apartment in the core city areas is expensive even if the carpet area is lesser too. The largest buyer base for affordable homes is the salaried segment and the individual entrepreneurs running small business setups. As the number of nuclear families increases, the demand for affordable homes too goes up. Though a new phenomenon in the city this market segment has already indicated that it holds huge potential for developers as well as investors.

Location and connectivity,

A unique aspect of an affordable homes project is its relative price advantage in the near term. As connectivity improves thanks to the many road development projects or the Metro Rail, the neighbourhood will have more residential and commercial projects being developed. This in turn will lead to a market for social infrastructure. It will then not be long before the locality turns into a self sufficient neighbourhood and prices escalate with more demand for property. Then, the erstwhile affordable homes project will command a much higher price. Those who, in this context, buy an affordable home early, are holding a good investment too, that will earn them handsome capital gains in a matter of time.

Base for second home

The capital gains the home earns over time helps those looking for a bigger property in a matter of time. Liquidating or mortgaging it helps in making a down payment for the second home comfortably. In the current times, an affordable homes project serves as an efficient hedge against inflation.

Temporary option

For young couples relocating to the city for a job, or for those looking at setting up home after marriage, this is a viable temporary option ? for those who plan for a larger accommodation later on this saves on rent while developing a corpus alongside. Also, given the tax advantage on home loans, it is an ideal option for an interim period before the combined earnings afford them a bigger home.

Investment angle

Affordable homes serve as good investment options for property investors who don?t have a large budget. It is easy to find a tenant as the rental will also be relatively lower. The capital appreciation, especially in emerging localities, will be sharp. Property investors now have the option of investing in a mid-range home in the city and a budget home project on the outskirts, across long and medium term horizons.

Courtesy Times Property? 30-10-2010

A credit appraisal is an important part of determining the eligibility for a home loan, and the quantum of the loan. A prospective borrower has to go through the various stages of the credit appraisal process of the bank. Each bank has its own criteria to satisfy itself on the credit worthiness of the borrower. The eligibility for the loan that a person can get depends on his credit worthiness, determined in terms of the norms and standards to the bank. Being a crucial step in the loan process, a borrower needs to be careful in planning his financing modes. The credit worthiness, basically, assures the repayment capacity of the borrower whether the borrower is capable of repaying the loan and dues on time.

Broadly, the information collected is on these aspects: Incomes of the applicant and co-applicant Age of applicants qualifications family details nature of profession experience employer security of tenure tax history assets owned and their financing patterns additional sources of income past loan record, if any recurring liabilities investments other present and expected liabilities

The norms differ from bank to bank. Each has certain norms within which a prospective borrower needs to fit to be eligible of the loan. Based on these parameters, the maximum amount eligible is worked out.

Installment-to-income ratio

A bank applies the installment-to-income ratio(IIR). This helps in finding the loan eligibility of the applicant. It is generally expressed as a percentage. This percentage denotes a portion of the monthly instalment on the home loan taken. Usually, the banks fix 33.33% to 40% as the ratio. It is assumed that in normal circumstances, a person can pay an installment up to 33.33% to 40% of his salary. For example; Assume the IIR is 33.33% and the gross income is Rs. 30,000 per month. According to the IIR ratio, the applicant is eligible for a loan where the installment does not exceed Rs 10,000 per month.

Fixed obligation to income ratio

Banks also calculated the eligibility based on the fixed obligation to income ratio (FOIR). Here, a bank takes into account the installments of all other loans already availed of by the applicant and still due, including the home loan applied for. This ratio includes all the fixed obligations that a borrower is supposed to meet regularly on a monthly basis.

The fixed obligations do not include statutory deductions from the salary such as Provident Fund, professional tax and deductions for investments such as insurance or a recurring deposit. For example, assume the income is Rs.30, 000 per month, there is a car loan installment of Rs. 4,000 a TV loan installment of Rs 1,000 and the proposed housing loan installment is Rs 10,000.

Accordingly; the FOIR is 50 percent - -50 percent of the monthly income. The bank may have a standard of 40 percent of FOIR. So, the total installments the person can pay, as per the bank?s FOIR standard is Rs. 12,000 per month. As he is already paying Rs. 5,000 towards the car and TV loans, he has Rs 7,000 left and the loan eligibility is taken as Rs 7000 per month as the basis of housing loan repayment capacity of the customer. Thus, a backward calculation of the repayment capacity is made to find out the amount to be given as loan.

Loan-to-cost ratio

A bank also computers eligibility on the basis of a loan-to-cost ratio (LCR). This ratio is used to calculate the loan amount that an applicant is eligible for on the basis of the total cost of the property. This sets the upper limit or the maximum loan amount that a person is eligible for irrespective of the loan eligibility under other criteria. The maximum amount of loan eligible is pegged to the cost or value of the property. While the loan eligibility as per the other parameters may be higher, the loan amount can?t exceed the cost or value of the property. The ratio varies between 70 to 90 percent of the registered value of the property. Loan eligibility is computed on the basis of these parameters that act as a guide to determine the loan amount. Generally, the lowest of these is taken as the loan amount that the applicant is eligible for.

Courtesy Times Propertys? 30-10-2010
Banks have their own parameters and criteria to evaluate a customer’s eligibility for a home loan

There are various factors affecting the eligibility for a home loan. Banks have their own parameters and criteria to determine the eligibility and quantum of housing loan. It helps borrower if they are aware of a few of such factors.

Information furnished

To begin with, it is the information on the application form. The information submitted in the application form by the individual is verified from various primary and secondary sources. In case of wrong information or inconsistencies, the loan application is liable to be rejected.

Financial strength

This is an important determinant. The loan eligibility as well as repayment capacity depends on the financial position of the borrower. The financial position of the borrower, his income level, net income, liabilities etc determine the amount of loan he is eligible for. One should have a minimum income level or fixed and certain source of income.

Credit history

The credit history of the borrower also plays an important role. Usually, lenders maintain a database of borrows and verify the credit history to check for previous repayment defaults, even from other lenders. Personal profile The personal profile of an individual is also important. This includes factors like educational qualification, profession, number of dependent, assets owned, liabilities owed, savings history etc. a higher number of dependants or existing liabilities implies lower repayment capacity.


It determines the earning years left for the individual. In case the property is co owned. The co owner cannot be a minor. Also, the co owner cannot be above a certain age limit. The age limits are set to minimize ownership disputes. The age limit also affects the tenure of the home loan, and EMIs. An applicant?s retirement age is also considered. For example, if the applicant is 45 years of age and is set to retire at 60 years, the maximum loan tenure available will be 15 years. Also, in case a bank has 75 year age limit for a co-applicant. If the applicant is 40 years old and the co-applicant is 60 years old, the home loan will be sanctioned for a maximum period of 15 years only.

Attributes of property

Banks have specific norms with respect to the minimum area of a flat. This may be built-up area or carpet area. The age of the property is also important in case of purchase of an existing property. Banks conduct a legal and technical appraisal of the property to check whether the title is clear, if there are any ownership disputes, whether the property is free from encumbrances etc. In case there are any objections in this appraisal, the loan application is bound to be turned down.

Courtesy Tymes Property? 30-10-2010


“Like gold, real estate tends to retain its intrinsic value. On the positive side, unlike gold, it is possible to earn a regular income on it. Depending upon various economic factors, a property owner can increase rent in times of high inflation. Also, real estate is always a good investment option because of the possibility of capital appreciation,” says Shobhit Agarwal, joint MD (capital markets), Jones Lang LaSalle Meghraj.

As inflation is high, the cost of construction is going up. However; in markets like Noida, Noida extension, Greater Noida, Faridabad and Kundli prices are not going up because of oversupply-like situation. But the margin of profit for the builders is getting squeezed. Therefore, consultants say the prices of these apartments will have to preciate, soon, to meet the increased cost. In a way, the prices of apartments have to keep pace with inflation.

As the economy is growing, several companies are expanding in the service and manufacturing sectors, which will directly lead to an increase in employment and the demand for house as well. However; the boom in real estate will depend on the implementation of the projects by developers. As developers are working on a very thin margin, there is an apprehension that there could be a problem in delivery of projects. ?The extent to which one can rely on the professionalism of a developer depends both on the developer?s existing credibility in the market and on the strength of enforcement agencies specific to each state,? Agarwal says, stressing the need for a regulator to bring in transparency in the sector.

?Generally speaking, larger developers are becoming a lot more transparent and professional in their business dealings. There is increased accountability in the organized sectors, brought on by greater awareness among buyers and also increased investments by international investors. However, players in the unorganized parts of the market ? especially those who have a limited number of smaller projects to their name ? are often not subject to the same accountability. Therefore, the safety of an individual real estate investor?s interests in property transaction continues to depend a lot on personal research and understanding of the real estate market, especially in local terms, prior to a purchase, ? Agarwal adds.

Courtesy Times Property? 30-10-2010

KAVITA SRIRAM explains how a budget that has efficient allocations helps you repay your home loan debt comfortably

Planning a household budget gains more importance when you have a large debt. People, who owe money to others and have other expenses and commitments, can create a budget plan is in place for saving and spending money. With almost 40 percent of monthly income diverted towards a home loan repayment, a budget helps balancing other financial commitments. A budget helps allocate future personal income towards expenses, debt repayment and savings.

Spending pattern

Before crunching numbers in a elaborate worksheet, the first step is to determine your spending pattern. For determining the spending pattern, you must track your expenses over a few months using credit card receipts, bank statements and other bills. Do not forget to include small cash purchases. Categorise the expenses as essential and non-essential. Essential expenses are those that are required for living and cannot be compromised with. Some such expenses are fixed each month like home loan repayment, rent and school fees. Transport, food bills, utility bill and vehicle maintenance are essential expenses that are variable expenses. Identify how much you spend on expenses like snacks, movies, eating out, gifts and parties that can be categorized as non-essential expenses for three months will give you an estimate to work on a comprehensive budget.

Compute income

The next step is to calculate your monthly income taking into account all income sources including rentals and investments. Some people may be drawing pension or getting regular interest or dividend income too. Add all these numbers to arrive at total monthly income.


If you can calculate what portion of your income is spent towards every expense, it is easier to track your expenses. Apart from allocating to essential and non-essential expenses, set aside a portion of your income towards cash surplus or savings. This is the money you would like to set aside for your children?s future, retirement savings and emergencies. Typical heads under which you budget include personal debts/credit card dues, home loan, food, transportation, clothing, utility, insurance, healthcare, savings and other miscellaneous expenses. The percentage allocation under each of the headings will be different across families. Families living close to city centre may have to spend more on housing and food. Those families located in the outskirts may be spending more on transportation and less on home rent. The spending pattern differs across persons. Some may spend more on clothes and parties while others may like to splurge on food. Families with children and elders will have different spending priorities.

A budget worksheet must be flexible where you can insert any additional expense or income element. It helps you to identify opportunities of minimizing wasteful expenditure.

Managing home loan debt Defaulting on home loan repayments can land a borrower in serious trouble. Further, it leaves a blot on the credit history that will adversely impact future borrowing capacity. Credit card and personal loans are high interest debts that must be repaid with highest priority. Do not borrow to invest in stocks. If needed, defer other major expenses such as a vacation till the financial pressure eases out. Assign priorities to your expenses and set aside money regularly to fulfill your major plans like an overseas vacation. Sticking to a meticulous budget plan will help you sail comfortably through a home loan tenure.

Courtesy Times Property? 30-10-2010

After a rollercoaster ride, the residential property market has stabilised now and a number of developers are gearing up to launch new housing project. Developers are gaining confidence and pricing the products in a realistic manner. Realty funds are coming back to identify strategic partners for investments in residential project.

With the corporate gearing up to expand operations, commercial space getting absorbed at frequent intervals unlike earlier. For homebuyers, the time is just right to strike bargain deals.

For NRIs who have been waiting in the wings, the situation is just appropriate to enter the marker. Home loan rates are competitive and linked to base rates after the initial period of three years. There are banks who have waived processing and documentation charges.

As the market is becoming more competitive with the entry of a number of private housing finance companies, self employed people are in for a bonanza with flexible lending norms even though at a marginally higher lending rate.

Apartment prices are firming up in some areas. With the widening of the Whitefield Road and improved connectivity from ITPL, people are shifting towards the area. This has led to a marginal hike in property prices, according to market sources. Residential projects in the vicinity.

Yet another good development is the arrangement between developers and housing finance companies to waive pre-EMI interest charges on behalf of the buyer. As result, homebuyers need not pay interest to the lending institution till the occupation of the apartment. A significant factor is that housing costs are continuously rising with the increase in material and labour costs.


Another significant development is the proliferation of property management service companies to service the retail clients in the real estate sector. This has been a long-felt need among NRIs have set up shop in Bangalore and are expanding to other cities as well.


There are inherent tax advantages for NRIs while investing in real estate. Besides income tax and wealth tax exemption for one self-occupied house, residential units if leased for minimum period of 300 days in a calendar year are exempt from wealth tax. The benefit of cost inflation index is available to a NRI for the purpose of computation of taxable long-term capital gains.

If a NRI is interested in selling a residential property, whether one or more, be will be eligible to get 100 percent exemption n respect of long term capital gains. The amount of long-term capital gains should be invested in the purchase of another residential property in advance within one year of the date of sale of the first house or within two years after the date of the sale.

If a NRI is interested in the construction of another residential property, the net taxable long term capital gains should be invested within three years in the construction of the new residential property.

If a NRI is not the owner of more than one residential property and has derived long term capital gains on the sale of any other asset like shares, debentures, commercial property, jewellery, urban land etc, he will get 100 percent tax exemption in respect of long term capital gains made on the sale of such capital assets provided he invests the proceeds in a residential property.


Moreover, repatriation of original investments made in foreign exchange is permitted up to two residential properties after a lock-in period of three years. This is apart from the rental repatriation and sale proceeds of inherited properties within the overall limit up to one million dollars every year.

Courtesy:-Times Property 02-10-2010


Jaypee Greens has established a formidable reputation, for creating golf-centric luxury residential townships in Noida and Greater Noida.

RAVI KUMAR MANGLAM profiles the realty firm

Jaypee Greens is the real estate arm of the Jaypee Group, a wall diversified infrastructure and conglomerate, with an annual turnover of Rs 14,000 crore. This realty firm has been creating lifestyle experiences from building golf-centric premium residences to building mega townships and self sustained mega cities.
Among the major projects of Jaypee Greens are Jaypee Greens. Greater Noida. Jaypee Greens Wish Town,Noida. With the latest venture of Jaypee Greens being the Sports City over 25,00 acre and comprising the much awaited and India’s first Formula Once racing track (the first Indian Grand Prix slated to be completed in 2011 ).

Acknowledging its contribution towards construction of high quality luxury developments with world class amenities and infrastructure, Jaypee Greens has received several national and international awards and honours including:

Best Urban Development Project GIREM award at Goa on September 24, 2010. Global initiative for Restructuring Environment and Management (GIREM) leadership awards acknowledge individuals and corporate entities in Indian realty and infrastructural sector for leadership, innovation and international best practices and give away 13 annual GIREM awards, Jaypee Greens got this for “environmentally” practices in their large scale integrated townships.

Bloomberg Asia Pacific Property Awards ,2010: A prestigious international award for excellence by realty firms in all sectors of property and real estate a) Best Golf Course, India: Jaypee Greens, Greater Noida b) Best Apartment: Sea Court at Jaypee Greens, Greater Noida c) Best, Development India: Estate Homes at Jaypee Greens, Greater Noida d) Best Development, India: Kallisto Town Home, Jaypee Greens, Wish Town, Noida e) Best Mixed Use Development, India Jaypee Greens, Sports City.

Realty Plus Excellence Award: Best Upcoming Integrated Township award for Jaypee Greens, Noida. Realty Plus awards recognize the contribution of individuals, developers, among other, who play a key role in the growth of Indian real estate sector.

Overseas Living Luxury Lifestyle Award, UK: Best Lifestyle Development 2010, India to Jaypee Greens. These awards are given for excellence and innovation in the realty sector and allied services in the travel industry.

Rajiv Gandhi Excellence Award for Best Integrated Township of the Year Award. This award is to identity and honour professionals who marvels in real estate industry.
Rita V Dixit, director of Jaypee Group, says: “The Jaypee Group has created landmarks through its engineering power and construction industries.”

“Since its inception in 2000, Jaypee Greens has been creating lifestyle experience from building golf-centric premium residences to building mega townships. We have already established our name through landmark luxury real estate developments.”

“The customer base of our products and the awards we have received are a testimony to our quality and commitment to our customers. Now the endeavor and commitment is to create and develop sustainable and environmental friendly cities.”

Courtesy:- Times Property 02-10-2010


Banks are revising their base rates upwards by up to half a percentage point from October 1, 2010 which will make loans costlier.

Base rate is the benchmark rate for a bank to fix the interest rates on loans. According to RBI guidelines, it has to be reviewed by banks every quarter. The latest revision of the rate will remain effective for October-December period.

But this is not likely to affect the home-loan rate of major banks. In order to make home-loan rate more attractive, most of the banks- state bank of India, Punjab National Bank, and HDFC Ltd, for the instance offer home loans at a fixed interest rate for the first three years. For example, SBI charge an interest rate of 8% on home loan for the first year and 9% in the second and third year. Similarly, PNB charges 8.5% for the first three years. HDFC Ltd also offers home loan at a fixed rate for the limited period.

The fixed rate for the initial period also provides a king of certainty about the interest burden on buyers for the initial period. The present rates of 8% and 8.5% offered by a number of banks are very attractive. In the last 10 years, the lowest rates at which banks offered home loan was around 7.5%, in 2004. But within a few months, the rates rose to 9%, which became 10% by 2007.

At present, a home loan at around 8.5% is less than even inflation. On top of that one will get tax concessions on the loan borrowed to buy a house. On calculation, the effective interest rates after adjusting for tax benefits that one pays on a home loan comes to at least two percentage points less than the rack rates. That means, if you are buying a house taking a home loan, you are paying even less than the opportunity cost of money.

Bankers feel that as inflation is high, the RBI will act to increase interest rates. But as you are borrowing at fixed rates for the first three years, at this point of time, your EMI will not increase you are insulated from any likely rate hike in the near future. One percentage point hike in the interest rate, from 8% to 9% on a 20 year loan of Rs.1 lakh, results in an increase in EMI by Rs 64 from Rs 836 to Rs 900. So, if you have taken a home loan of Rs 50 lakh, your EMI will increase by Rs 3,200 or Rs 38,400 per year.

Courtesy:- Times Property 02-10-2010

Prices in the national capital are once again going through the roof prompting the middle-class people to explore options in the NCR

It is generally believed that real-estate world sees lot of positive energy and activity every year, close to festive seasons. That is a time, even when the market is not flooded, a lot of serious prospective buyers throng developers for houses. These are the people who wait for this supposedly auspicious time to seal a deal.

Well, the festive season is once again upon us but there seems to be no sign of any positive mood in the market. The mod is rather dull and lukewarm. Buyers are very much there but very are waiting for a time when prices of houses of their choice come down to reasonable levels. The currents situation is very abnormal and this does not seem to be an opportune time to clinch a deal. The secondary realty market in the national capital is touching a new low as the rates of flats have increased without any rhyme or reason – up by 30-36% during the last 15-18 months. That has greatly dampened the spirit with serious buyers postponing their plans to buy a flat this festive season.

According to Samir Jasuja, MD of propequity,”If the location is good, then increase in rates is even steeper. I am sure that unless prices do not fall to reasonable levels, the market would not see a lot of positive energy.” Sources say that due to the astronomical rates of properties, serious buyers are abandoning Delhi like Rohini, Pashim Vihar and Vikas Puri, the increase in price were up to 25%. A realty expert said that market goes up once some property sold at a goof price. After that, the rate of that particular deal becomes the benchmark in that area. People forget that there are many factors that determine the price of a particular property. Hence, what is true for one property cannot be true for another one in the area. According to a Paschim Vihar based realty consultant, Suresh Bhalla. “There is hardly any deal which is reaching its logical conclusion as far as DDA or cooperative group housing flats are concerned. The current going rate for a MIG flat in Pashchim Vihar, Janak Puri and Vikas Puri is around Rs70 lakh.” The rate for an HIG flats is even higher. This is too much. With such rates, it is not easy to find buyers”.

And, if you move on East Delhi, the rates of both DDA and society flats are again crossing the threshold of the budgets of the middle-class segment. You can feel lucky if you manage to buy an MIG flat at less than Rs 65 lakh. There are some societies where flat even cost more than Rs 1 crore. Given the fact that the original cost of such flats cannot be more than Rs 18-20 lakh, the prices seem to have run amok.

However, amidst this not too happy a scenario, there is a gain for places like Ghaziabad, Noida, Faridabad and Gurgaon as many people are now looking for possible options there. J K Jain, MD of DesignArch e-homes, says that one has to be very practical when it comes to finalizing a property related deals. “Rather than waiting for a time when rates fall, one should buy the property at a second best possible place at the available rates.” Echoing this, Sunil Jindal, CEO of SVP Group, is of the opinion that the NCR is thriving because the capital is now more or less out of bounds for working class and middle class people. It is now no secret that this is a reason for a large number of buyers flocking to places like Noida, Gurgaon, Ghaziabad, Faridabad, among others, looking for flats that match their budget.

Dejected as he failed to match the demand of a flat owner in Mayur Vihar, which he took a fancy to, a senior TV journalist Niren Majumdar said that he had a budget close to Rs 60 lakh – but even then he could not buy a flat in Delhi. “They (flat owners) are asking for the moon from people who look for flats in the capital. I do not think it would be possible for working class people to buy house here.”

So, are there no buyers for flats and floors in the national capital? This claim or perception is hotly contested by Sanjay Khanna, director of Kailash nath Projects Private Limited, who says: “This is not true at all as in Delhi floors worth Rs 4-5 crore are finding buyers. It is not at all true that buyers have shelved their plans owing to high rates of houses.”

Courtesy:-Times Property 02-10-2010


Improving construction quality, enhanced market transparency, and availability of suitable options have made the Indian real estate market a definitive asset class to invest, say


While stocks and bonds have held their positions as traditional investment, investors are increasingly looking towards the alternative investments – real estate, hedge funds, private equity and Exchange Traded Funds (ETFs) – to engineer an overall enhanced performance of their portfolios.

Improving construction quality, enhanced market transparency, and availability of suitable options have made the Indian real estate market a definitive asset class to invest, which provides a stable and predictable income yield along with a possibility of capital appreciation. While residential markets in India have already witnessed a rapid bounce, commercial markets have touched a cyclical low and are expected to recover to 4-6 quarters.

The market value of investment grade real estate in India under construction has increased from $69.4 billion at end-2006 to $101.3 billion by end June 2010, which equates to 8.2% f India’s nominal GDP FOR 2009.

The market value of commercial office and retail under construction has remained range-bound during 2006-2010, due to the effect of an increase in construction activity offset by a fall in capital values. However, the contribution of residential segment has amplified due to a confluence of increase in construction activity and rapid recovery of property prices.

A significant portion of this market value is required as costs of construction and development of these real estate assets. The costs have been assessed to be $48.5 billion over a period of 2-3 years.
The market value of commercial (office and retail) real estate under construction is $34.8 billion. Commercial office space under development contributes to 74% of the estimated market value being developed in the commercial sector.

As of 2Q 2010, Tier I cities of Mumbai, NCR-Delhi and Bangalore contribute to 70% of the market value of commercial office space under construction, while Tier 2 cities of Chennai, Pune, Hyderabad and Kolkata contribute to 21% of the pie. Other investment grade developments in Tier 3 cities contribute to a more 9% of the pan-India market value being developed in India today.

However, with infrastructural developments and lover real estate costs, the shared of Tier 3 cities is likely to grow In future. While the Tier I cities contribute to 62% of the commercial retail space under development,27% is supplied by the Tier 2 cities.

Residential sector has been the most resilient in the recent downturn, aided by the high demand for housing in India. While residential property prices slumped in 1H09, their raped recovery in 2H09 and 1H10 was accompanied by a slew of launches across India.

As of 2Q 2010, the market value of residential properties under construction is $66.5 billion, contribution 66% of the value of total real estate under construction in India.
While the premium segment comprises only 4% of the saleable area being developed, it contributes to 24% of market value. While NCR Delhi leads in terms of volume of residential properties being developed, Mumbai contributes a larger share to the market value.

Foreign Direct Investment (FDI) into housing and real estate in India increased steadily from $0.04 billion in 2005-06 to $2.18 billion In 2007-08. Since 2007-08, a total FDI of %7.82 billion has been put into housing and real estate in India. Considering an average construction period of three years for real estate properties, this equates to 7.7% of the market value of investment grade real estate under construction as of 2Q 2010.

Courtesy:-Times Property 02-10-2010


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!


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.


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.


Courtesy by Times Property Dtd : August 21, 2010

Brigade Enterprises Seeks shareholders’ Approval to Raise Rs 750 crore
of Additional Funding

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.

Reverse mortgage unlocks property’s potential

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 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, 2010Lodha to invest Rs 2,000 cr for world's tallest homes

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.

Courtesy HT estates Dtd - 9 Jun 2010 Lodha plans 117-storey tallest housing tower in Mumbai

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.

Courtesy HT estates Dtd - 8 Jun 2010

Office to Home, Realty Touches Sky in Mumbai, Bangalorers luxurious residential options in the choicest of sectors of the city. “And with Mahagun there are no shortcuts to success. Each project is meticulously planned to perfection, right down to the minutest details. Penthouses, duplex apartments or opulent multiple bedroom apartments, Mahagun has established unassailable benchmarks in each category,” says Jain. All Mahagun projects are designed by the renowned architect Hafeez Contractor.

An amalgamation of all the prime features, namely luxury, comfort and prime location, Mahagun projects have been extremely well received by customers — be it Mahagun Manor, Mahagun Villa, Mahagun Mosaic, Mahagun Mascot, Mahagun Maple, Mahagun Puram, Mahagun Maestro, Mahagun Mansion, or Mahagun Morpheus — all the ventures have been instant sellouts. Mahagun also has a commercial establishment, the Mahagun Metro Mall, which is a unique combination of a shopping mall, serviced apartment hotel and a multiplex. Mahagun is also a part of the prestigious Crossings Township project, which is India's first global city. Mahagun Maestro, a quality residential complex located in a prime location of Noida, is a showcase of the group’s creations. Built on land allotted by the Noida Authority, 80% of its area has been allocated for ‘green’ spaces. Equipped with all the Mahagun standard features like earthquake-resistant RCC structure, vaastu and ecofriendly layout, assured timely possession with penalty clause, ample parking space, power backup, and rainwater harvesting it showcases some unique features too. Each tower has a luxurious entrance lobby for example. As one walks into the apartments, you are surrounded by Indo-Italian marble, chandeliers, designer light fittings, woodwork, among other such fittings and fixtures.

Mahagun Morpheus, also located in Noida, is built along the same lines. It too bears Mahagun’s signature style of huge spaces. Each tower here has a musical entrance lobby, which lends a soothing and pleasant ambience to the whole place. With only three apartments on each floor, with a common waiting area, there is no sense of claustrophobia. The interiors have been designed with teak woodwork and designer light and bath fittings, high-grade marble and chandeliers, giving the entire setting an impression of being in a castle. The club house is studded with state-of-the-art facilities — swimming pool, gymnasium, squash court, steam and sauna bath, Jacuzzi, etc.

“At Mahagun, we are creating new models of luxury and changing the scene of real estate block by block,” says Jain. Apart from many landmark projects, the group has a very promising 4-star luxury hotel on the anvil, at Karkardooma in Delhi. After delivering several projects in Noida, Mahagun recently launched the Mahagun Maple, which is at an advanced stage of construction and has been fully sold out. To bolster its brand and presence in Noida, Mahagun is soon going to launch a megaresidential project here with quite a few other projects also lined up on the drawing board.

Courtesy:- Times Property dt:- 03-April-2010
Bigger, brighter and better
Suddenly there is no stopping luxury brands, hotels, retail formats from entering Tier 2 and Tier 3 cities in what may be bigger and better avatars than even in the metros, finds
Namrata Kohli

If you thought ‘mall’ is Greek and Latin to someone in smaller cities and towns you surely need a reality check. Smaller city folk are not being treated to some lowbrow ‘country cousin’ version of your metro malls — instead, they are witnessing much better and bigger developments. Businessmen have smelt the appetite of locals and are crowding into Tier 2 and Tier 3 cities to encash upon the firstmover advantage and grab vast plots at reasonable rates (as against the metros, which suffer from both paucity of land and high real estate costs).

The head of operations of a big retail chain shares his perspective saying that smaller cities is the way to go for big brands now. Citing an instance, the industry insider says that when Globus had opened its store at a place like Varanasi, no one was sure what would happen, but today, the store has outperformed its Mumbai counterpart. Even the Crossword store in Visakhapatnam and other small cities in south India are doing great - so much so that a second outlet has been opened there.

Retailers, realtors, hoteliers are now seen heading to smaller cities which conventionally were not on the organized business’s radar. Take a look at the 6 lakh sq ft Alpha One mall at Amritsar and anyone would agree that it has a good mix of international, national and regional brands available anywhere. The brands include Shoppers Stop, HyperCity, Fun Cinemas, Orama, Reliance Trends, Standard Max and Lifestyle Max as well as United Colors of Benetton, Tommy Hilfiger, Levi’s, Provogue, Wrangler, Adidas, Nike, Reebok, Puma, Blackberry, Zodiac, U.S. Polo, Flying Machine, Planet Fashion, F2O, Peter England, Mufti, Hidesign, Biba, Arrow, Kap Kids, Catmoss, Emerge, Lakshita, Woodland, Magnet, VIP, Just Lucky’s, Nu West, Café Coffee Day, Mothercare, Rockport, Himalaya, VDOT, Fuel-Stop, Metro, The Body Shop, Beverly Hills Polo Club, Guess, among others.

Even luxury hotels have zeroed in on Tier 3 cities. Just imagine, one of the most sought after spas in the country, Ananda, chose Amritsar to open its only branch at a 5-star luxury hotel, Ista, which is owned and managed by hospitality chain IHHR. According to Ashwin Handa, general manager of Ista, “Ista is Amritsar’s only 5-star luxury hotel and we decided on Amritsar as the city has a huge tourist influx and offers great potential.”

The same logic holds true for mall developers and according to Pickles Sodhi of Alpha G Corp, “Punjabis like to shop and they like to spend money and enjoy a good life. My investment in Amritsar was more of a gut instinct based on the facts, of course, that Amritsar is a huge religious draw — there is enormous tourist influx and many NRIs frequent this religious destination. The paucity of a decent mall spelt opportunity. Next, we plan to target Chandigarh, Jalandhar and Ludhiana. And after that we are readying a 7 lakh sq ft mall at Ahmedabad.” He adds that they have tried to retain the local flavour by introducing Amritsari bazaar, which will retail Amritsari crafts, phulkari, etc, and encourage shopping of local goods in sanitized environment.

Fun Cinemas’ Atul Goel feels that small cities are hugely receptive to new ideas. Fun Cinemas already has multiplexes at Chandigarh, Lucknow, Ahmedabad and Coimbatore. “We are entering Amritsar with a multiplex which will have the first gold class in Punjab. Priced within Rs 500 per cover, this 35-seater will provide endless cold drinks and popcorn to patrons.” Goel adds that they are trying to tap the aspirational living value of people and showing them a taste of good life, “once they taste it and learn to enjoy it, they will ask for more and this way they will grow with us”.

North India’s first hypermarket Hypercity Retail (India) Ltd has opened in Amritsar in Alpha One mall. B S Nagesh, vice-chairman, explains: “In this vast floorplate of 1.4 lakh sq ft, a shopper gets everything from the freshest malta to jeans worth Rs 199 to LCD TVs. Besides, there is a feature called Daily diamonds, which is meant for today’s women who can pick up their favourite piece of jewellery at price points of Rs 2,000 to Rs 10,000, while shopping for daily groceries. We are here to create lasting value and we are giving ourselves three years to break even.”

But when retail strikes smaller towns do they replicate their city formats or customize to the local tastes? Govind Shrikhande, CEO of Shoppers' Stop says that the stores have similar merchandise albeit with some changes. “We are stocking pagdi (turbans) and jutti (shoes), as these are important part of the basket of a shopper in Punjab. Besides, our thrust will be on stocking more casuals than formal wear since Amritsar is not home to many corporates yet, unlike Delhi or Mumbai. Also, we would include brighter shades and focus more of traditional wear.”

However, what does not keep pace with these striking private developments is the poor public infrastructure. There is glaring contrast between public utilities and private developments and this is evident as soon as you step out of Alpha One mall and are greeted with poor infrastructure. Says S K Sayal, director & CEO of Alpha G: Corp: “While making this mall we were faced with infrastructural bottlenecks like lack of electrification, storm water drainage system, sewerage system — there is no master plan for these cities. But the authorities are slowly but surely realizing that infrastructure has to be built and we would say that one thing is leading to another. The authorities have built a flyover near the mall and the second one is already being planned near the Golden Temple.”

These private parties, of course with vested interest, are also doing good in both creating pockets of entertainment for small cities that lack them, and also bettering the services and utilities in their city of operation.

Courtesy:- Times Property dt:- 03-April-2010
HNI in realty
Unlike in the past, the New Age Indians are not confined to investing in residential properties — they are now setting their sights on commercial property as well, says
Vivek Shukla
If you imagine that commercial properties are only purchased by companies to expand their business prospects, think again! Now high net worth individuals (HNI) too invests in commercial properties. As recently as a few years ago, commercial property was an investment option for select individuals. Apart from the issue of a large investment, it required a different mindset from the investment point of view as well. But, over the years, a large number of Indians have begun to earn huge salaries while many others are also making a lot of money through freelance jobs, which they are investing in commercial properties.

Unlike in the past, the New Age Indians are not confined to investing in residential properties. This trend is picking up fast. “If banks do not show reluctance to give loans to individuals in order to buy commercial properties, more and more HNI will come forward to buy commercial properties. It is now no secret that banks hardly show any positive attitude to sanction loans to individuals in order to buy commercial properties. This happens all over the world. That is why you can not blame only our banks,” says Samir Jasuja, CMD of PropEquity.

An official of PNB Housing Finance Ltd also admitted that while banks happily give loans for residential properties, they are not that forthcoming when it comes to loans for the purchase of commercial properties. Reason? He said that compared to residential properties, the rate of default is very high in this segment. That is precisely the reason banks avoid disbursing loans to individuals in buying commercial properties.

“As far as Ansal API is concerned, we have got bookings from a sizable number of such individuals (HNI) in our malls (Ansal Plaza in various locations), as also in small to medium office spaces in our commercial projects in Delhi NCR, Punjab, Lucknow, Kundli (near Sonipat in Haryana), among other projects,” says the company's official spokesman.

Anu Gupta, director of Century 21 India, says that HNIs should make investments in commercial properties as these investments could maximize their return. The reason being, while they could go for bank loans up to 75-80% for such investments, the repayment of such loans could be set off against the rental incomes from such commercial properties. Thus, by investing a portion of the total price (say 25%), an investor can acquire a high-value asset, which will not only give maximum return (thanks to the set off provision
in IT against rentals), but could see a significant appreciation over a period as the retail/commercial industry grows.

Giving his own example as to how he is earning less because he has invested in residential property while his friend is earning far more than him for investing in commercial property, a Delhi-based financial professional, Narinder Gambhir, says that both he and his friend invested in residential and commercial properties in 2004 in East Delhi. Both invested close to Rs 30 lakh each. “While I am getting a rent of Rs 15,000 per month, my friend is earning Rs 25,000 from his property. This is a huge difference,” Gambhir rues.

Discussing about the factors which are crucial for HNI to look before buy commercial properties, a realty expert says that they should not invest where there is a deluge of supply. In that case, the investment would not fetch good returns. HNI also invest in commercial property, as they are not restricted to a dingy market area. Today, swanky malls enable an individual to look at commercial property as a viable investment option. Moreover, the emergence of semi-commercial property in residential locations has made the investment financially viable.

R K Arora, CMD of Supertech group, says that there is nothing wrong if you invest in commercial property, but one must invest after taking all the pros and cons into consideration. "I feel that if you invest in some commercial space in NCR, then you have to wait for a long period before earning anything as there is a massive supply of such commercial property in NCR, unlike in Delhi. If you can invest in Delhi, then it is great."

However, Alimuddin Rafi Ahmed, CMD of ILD realty group, feels that as our economy is improving after tiding over a really tough time during the market slum of 2008-09, corporates are looking for commercial spaces on lease, hence it is a perfect time to invest in commercial properties. “This is just the right time to invest as the property is available at rock-bottom prices. The crash in property prices led to downward revision of prices by developers. The reduction was to the tune of 30% or so,” Ahmed concludes.

Another point in favour of commercial property is the changing dynamics on the economic front. In bigger cities, entrepreneurship has been on the rise and this would mean a lot more individuals would be looking for office space for their business enterprises. These individuals look for properties which are not commercial, but a mix of commercial and residential.

Do they also get queries from HNI for investment in their commercial properties or malls? Sunil Jindal, CEO of SVP Developers, says that they have not dealt with HNI so far as they deal with big brands directly. “I still suggest HNIs to invest in residential than commercial properties. That is safe for them. We have noticed that due to over supply of commercial properties in NCR, they are not fetching enough returns,” says Jindal. And in the end, Ashish Jindal, head (North) of Knight Frank India, also says that if you can, then commercial property is a good investment option for investors. The motive behind such investments should be more rental returns than capital appreciation. A typical commercial office property can give 8-12% return depending upon the quality of building and tenant. It’s a good medium to long-term asset class to have in one's investment portfolio - even for the salaried class.

Courtesy:- Times Property dt:- 03-April-2010
Bull and Bears
Among major sectors Real Estate is also continuing to perform well on sensex and nifty from early 2004 and also builder are selling new projects on the name of affordable housing insubrubs of metro cities, tier I and tier II cities but from last two months seeing slow on sensex and nifty but selling of project is good Big real estate company showed better results in last quarter in respect of last year same quarter and loss also picked up money from private equity players through. QIP (Qualified Institutional Placement) and reduced their debts.

Private Equity Players also learned handsome amounts. In case of Unitech, India?s second real estate company by market capitalization was placed its share with ---@ 40 in last year and this time is stable with @ to plus with high Rs 95+ in Dec 2009 from low Rs 25-40 in Mar 2009.

On the operational front for the Dec 2009 quarter, the company has been able to record revenue growth of 76% year on year to Rs 774 crore largely on sales which have occurred in the previous fiscal.

The company is focusing on affordable homes and expects the segments contribute about half of the overall volumes in 2010-11 about 16 million sq. ft and also focusing on Mumbai were It has tied up with Mumbai-based developers for slum rehabitation projects and expecting to will sell 40 millon sq. ft area. The company is now standing on a debt of Rs 6200 cr. I.e. debt to equity ratio is 0.3 times.

The company also hived off its non-core businesses like power, telecom, hotels and SEZ?s to improve sentiments towards the stocks
DLF completes Caraf merger with arm, gets ready for DAL listing

DLF Assets Likely to Be Listed On Singapore Stock Exchange In Q1 Of 2010-11

DLF has completed the merger of Caraf Builders and Construction, which owns investment trust DLF Assets Ltd (DAL), with another offshoot DLF Cyber City, a move India’s biggest realtor says is logical to listing DAL on the Singapore Stock Exchange (SGX). A company spokesman confirmed the development while two senior executives involved in the listing process said DAL, set up to acquire properties from DLF and other developers for leasing out to third parties, is likely to be listed on SGX in the first quarter of 2010-11

Though DAL’s listing was not dependent on the merger, it was important that the integration with Cyber City, a wholly-owned subsidiary, was completed before the listing as the move is also aimed at further streamlining all commercial assets under one head, said the first executive on condition of anonymity.

Under SGX norms, a company planning to list cannot reveal listing plans before its draft prospectus is approved. Merging DAL, which buys and manages commercial assets on the lines of real estate investment trusts, with Cyber City will ring-fence DLF from the uncertainties of the property market as it guarantees a steady stream of revenues, said the second executive. DLF acquired Caraf from promoters KP Singh and family last December in a share swap deal and decided to give it a 40% stake in its Cyber City. By consolidating the group’s rental assets, that transaction too was aimed at ensuring a steady cash flow.

The rental business of DLF and Caraf together generated annual incomes of Rs 700 crore and Rs 550 crore in the current fiscal. Post-merger, the rental business is expected to give DLF an annual income of Rs 1,500 crore in 2010-11, which should be 20% of the total income, said the second executive. As the merger is effective from March 19, its effect will not reflected in the current financial year, he added.

Courtesy: ET – 22-03-2010

100 Years On, Govt Reworks Property Registration Rules

Proposed Legislation Is Likely To Recognise Electronic Stamping and Online Payment of Stamp Duties
Registering a property could soon be painless affair with the government planning to replace the century-old Indian Stamp Act, 1899 with a simpler law that will do away with a large number of antiquated provisions and fees.

The finance ministry has already kicked off a preliminary exercise for drafting the new law and is hopeful of finalising it by the end of the year. The draft will also be discussed with state governments to elicit their views before a final decision is taken, government officials familiar with the development said.

“The current law was written more than 100 years ago. Since then the form of business and transactions have completely changed and we feel that there is a need to replace the Act,” said a senior government official.

Stamp duty is levied on a number of financial and legal transactions. At present, the documents are physically verified by different departments, making the process of registration a time-consuming activity. The new legislation is expected to address some of these issues.

The proposed legislation is likely to recognize electronic stamping and electronic payment of stamp duties. At present, the facility is available as part of the MAC 21 e-governance initiatives for companies that wish to file their papers online with the Registrar of Companies.

The legislation could also allow payment of duty on instruments and court fees through modes like demand drafts and bankers’ cheques, which are not permitted under the existing law.

“The emphasis has now shifted to e-governance and such a provision will make it easier for citizens to adhere to laws and be much more convenient than the physical act of buying and pasting stamps,” the official said, requesting anonymity.

The provision could also help reduce the leakage of revenue because of stamp duty frauds, he said.
The government is also planning to rework the current structure of stamp duty fees and penalties. Duties charged in the smaller denomination and often, obsolete paisa would be replaced with rupees or be calculated as a percentage.

Significantly, the Law Commission, led by Justice AR Lakshmanan, had suo moto taken up the issue of amending the Indian Stamp Act last year. It had suggested in its report that the required fee for any transaction or court fee should be paid by demand draft, cash, postal order, banker’s cheque rather than through non-judicial stamp papers or special stamps.

Courtesy:- ET dt: 20-March-2010

While most of the large to mid-sized recent offerings have received a lukewarm response, the buzz is that quite a few real estate companies are bent on going ahead with their initial public offering (IPO) plans. Grapevine in market circles is that quite a few fund managers are being tempted with apartments at concessional rates in the projects of these companies in return for subscribing to the issues. This kind of arrangement will not be very expensive for real estate firms either, given the fat margins in the business and the fact that these projects are yet to be completed. After all, what are a few crores when hundreds of crores are at stake? Market watchers say at least two companies that came out with IPOs in the recent past had such an arrangement with some fund managers. Needless to say, both the offerings had witnessed a strong response from institutional investors despite expensive valuations. With banks cutting down their lending to the real estate sector, and the stock market, too, lukewarm to property developers, it has become a desperate situation for many cash-starved builders.

Courtesy:- ET dt:- 18-03-2010



A residential apartment spread across an area of 5,800 sq ft was sold at a total value of Rs 12,52,37,500 at Lower Parel in Central Mumbai. The apartment features a plunge pool and a terrace garden, while the complex offers a club house, along with other amenities. This under–construction high-end apartment commanded an average capital value of Rs 21,500 per sq ft and will be ready for possession in 34 months. The commanded range for ready apartments in this area is Rs 34,000 – 55,000 per sq ft. Lower Parel is likely to witness an increase in the number of new project launches for high end as well as mid-ranged projects over the next three to six months.


An apartment covering an area of 2,800 sq ft in Kalyani Nagar was leased out to a corporate for a rental of Rs 1.6 lakh per month. This rental for this high-end apartment was well within the commanded range of Rs 1,10,000 – 2,10,000. It happens to be amongst the most sought after buildings in the expat community. While prices in this micro-market have remained stable over the past two quarters, they are expected to appreciate on account of the growing demand from expatriates and corporates, mainly due to its proximity to the airport, railway station as well as the central business district.


A beach house spread across 3500 sq ft, located on the East Coast Road was leased for a monthly rental value of Rs 1.75 lakh. This apart, another apartment admeasuring 3500 sq ft at Boat Club was leased out for a rental of Rs 1.4 lakh per month. This highend apartment’s rental is well within the prevalent range of Rs 80,000–2,25,000 per month. Properties on the East Coast Road, which are closer to the city limits, have been witnessing a buoyant demand in the recent past.


An apartment covering an area of 3,000 sq ft was sold at a total value of Rs 2,24,00,000 in the highly sought-after Koramangala area. This high-end apartment commanded an average capital value of close to Rs 7,466 per sq ft, which is well within the commanded range of Rs 6000– 8500 per sq ft in the locality. A villa in Whitefield, spread across 4,000 sq ft, was sold for a total cost of Rs 1,75,00,000. This high-end villa commanded an average capital value of Rs 4,375 per sq ft, which was below the prevalent range of Rs 5,600– 7,000 per sq ft. The demand in the city of Bangalore has been largely driven by affordable housing projects and smaller sized-apartments.
Cushman & Wakefield, a commercial real estate services firm with offices worldwide, delivers solutions including advising, implementing and managing on behalf of landlords, tenants, and investors.

Courtesy: - 19-03-2010


Service tax burden imposed by the Union Budget on realty transactions will affect the sector. Read on to know what are the pluses and the minuses of the new budget.

The Union Budget 2010-11 is a big disappointment to the middle-class urban housing sector. However, it has bet on the economic growth to drive demand in the sector. By tweaking the income slab, finance minister Pranab Mukherjee has put some extra money into the pocket of middle-class tax payers. A person having an income of Rs 5 lakh per annum is likely to gain Rs 20,600 per annum from the provision. But, if his income is more than Rs 8 lakh, his annual gains will be around Rs 51,500. These are a big booster to the economy as they will increase the purchasing capacity of individuals. Ultimately, tax saving is equivalent to money earned.
Service tax on apartments under construction.
But at the same time, the finance minister has imposed service taxes on a number of services related to the real estate sector. Anshuman Magzine, MD of global consultancy firm CBRE Asia, says that these provisions will be a dampener and affect the revival of the real estate sector. Another realty consultancy firm, Knight Frank also said that it would affect the sector adversely. According to a budget provision, in cases where a property under construction is bought and a consumer makes payment over a period of time, then it will attract service tax. "In the 'Construction of complex service', it is being provided that unless the entire consideration for the property is paid after the completion of construction (that is, after receipt of completion certificate from the competent authority), the activity of construction would be deemed to be a taxable service provided by the builder/promoter/developer to the prospective buyer and the service tax would be charged accordingly," reads the provision.

A senior tax consultant of KPMG says that this clearly means that if a house or apartment is sold before the completion of the construction, a buyer will have to pay the service tax. In fact, Sunil Mitra, revenue secretary, said that even if a house is already sold but the completion certificate could be secured from the concerned authority in 2010-11 or after March 31, 2010, the service tax would be levied on such transaction. According to tax experts, this will lead to a tax outgo of 3.4% of the sale value of the house. Mitra also confirmed that the department would allow an abatement of 67% on the value of house to calculate the service tax at the rate of 10.3%.

This means, if you have bought a house for Rs 50 lakh at the time of launch of a project, your tax liability would be Rs 1.70 lakh. However, with the service tax levied from service provider, a senior builder said they would pass on the liability to the customer. He said that since they have started launching affordable apartments, the margin is so thin that they would not be able to absorb them. The budget has also included the renting of immovable property under the service tax net. Knight Frank says that this will have a negative impact on the real estate sector. The levy of service tax will impact rented commercial property with retrospective effect from June 1, 2007. Even in cases where a developer takes land on lease and pays lease rent, the lease rent will attract service tax.
Preferred location will be taxed 
Interestingly, the differential charges for higher floor, or for preferential view, better spaces, etc will also attract service tax. "Certain additional services provided by a builder to prospective buyers like providing preferential location or external or internal development of complexes on extra charges. However, service of providing vehicle-parking space would not be subjected to tax," the new provision says. However, there are some positive aspects also, which will benefit the construction sector as a whole.

Hotel industry gets a boost 
According to a new provision, all new hotels of 2-star and above category will be benefited because of the investment-linked deduction - 100% of the capital expenditure incurred by a hotel can be reduced from taxable income. This will enhance the returns for developers of hotel projects, says Knight Frank. "The provision will enable investments in the hospitality segment and boost supply in the organized sector. It aims to provide support to the hospitality sector in expectation of growth in tourism and both business and leisure travel," says Anurag Mathur, MD of Cushman & Wakefield India.

Relief under 80 IB
The budget has also given relief to developers under Section 80 IB (10). It has provided the extension of income tax exemption for housing projects by one year. It will give a relief to projects that were delayed during the slump. These projects should have been sanctioned on or before March 31, 2008 and be completed in five years. Similarly, the provision for commercial establishments has been increased from 5% or 2,000 sq ft of built-up area, whichever is less, to 3% or 5,000 sq ft of built-up area, whichever is higher. Therefore, at least 5,000 sq ft of shop establishments can now be developed in these projects while continuing to remain eligible for income tax exemption, says Knight Frank.

The relief to developers by allowing extension for claiming deduction of their profits within a period of five years under the section, says Mathur, would help those developers who were impacted by the global financial crisis last year. This announcement is likely to provide a breather for developers who were finding it difficult to complete projects due to liquidity crunch.

However, on the other hand, the announcement may be a cause of concern for the consumer/end user as relief extended to developers might result in further delay in project completion.
In addition, it is suggested that the norms for built-up area of shops and other commercial establishment in housing projects will be relaxed to enable basic facilities for the residents.

Courtesy:- ET Realty dt:- 19-03-2010


Unlike in the past, the New Age Indians are not confined to investing in residential properties. They are now setting their sights on commercial property as well. Read on to know what attracts them to commercial properties.

If you imagine that commercial properties are only purchased by companies to expand their business prospects, think again! Now high net worth individuals (HNI) too invests in commercial properties. As recently as a few years ago, commercial property was an investment option for select individuals. Apart from the issue of a large investment, it required a different mindset from the investment point of view as well. But, over the years, a large number of Indians have begun to earn huge salaries while many others are also making a lot of money through freelance jobs, which they are investing in commercial properties.

Unlike in the past, the New Age Indians are not confined to investing in residential properties. This trend is picking up fast. "If banks do not show reluctance to give loans to individuals in order to buy commercial properties, more and more HNI will come forward to buy commercial properties. It is now no secret that banks hardly show any positive attitude to sanction loans to individuals in order to buy commercial properties. This happens all over the world. That is why you cannot blame only our banks," says Samir Jasuja, CMD of Propequity.

An official of PNB Housing Finance Ltd also admitted that while banks happily give loans for residential properties, they are not that forthcoming when it comes to loans for the purchase of commercial properties. Reason? He said that compared to residential properties, the rate of default is very high in this segment. That is precisely the reason banks avoid disbursing loans to individuals in buying commercial properties.
"As far as Ansal API is concerned, we have got bookings from a sizable number of such individuals (HNI) in our malls (Ansal Plaza in various locations), as also in small to medium office spaces in our commercial projects in Delhi NCR, Punjab, Lucknow, Kundli (near Sonipat in Haryana), among other projects," says the company's official spokesman.

Anu Gupta, director of Century 21 India, says that HNIs should make investments in commercial properties as these investments could maximize their return. The reason being, while they could go for bank loans up to 75-80% for such investments, the repayment of such loans could be set off against the rental incomes from such commercial properties. Thus, by investing a portion of the total price (say 25%), an investor can acquire a high-value asset, which will not only give maximum return (thanks to the set off provision in IT against rentals), but could see a significant appreciation over a period as the retail/commercial industry grows.

Giving his own example as to how he is earning less because he has invested in residential property while his friend is earning far more than him for investing in commercial property, a Delhi based financial professional, Narinder Gambhir, says that both he and his friend invested in residential and commercial properties in 2004 in East Delhi. Both invested close to Rs 30 lakh each. "While I am getting a rent of Rs 15,000 per month, my friend is earning Rs 25,000 from his property. This is a huge difference," Gambhir rues.

Discussing about the factors which are crucial for HNI to look before buy commercial properties, a realty expert says that they should not invest where there is a deluge of supply. In that case, the investment would not fetch good returns. HNI also invest in commercial property, as they are not restricted to a dingy market area. Today, swanky malls enable an individual to look at commercial property as a viable investment option. Moreover, the emergence of semi-commercial property in residential locations has made the investment financially viable.

RK Arora, CMD of Supertech group, says that there is nothing wrong if you invest in commercial property, but one must invest after taking all the pros and cons into consideration. "I feel that if you invest in some commercial space in NCR, then you have to wait for a long period before earning anything as there is a massive supply of such commercial property in NCR, unlike in Delhi. If you can invest in Delhi, then it is great."

However, Alimuddin Rafi Ahmed, CMD of ILD realty group, feels that as our economy is improving after tiding over a really tough time during the market slum of 2008-09, corporates are looking for commercial spaces on lease, hence it is a perfect time to invest in commercial properties. "This is just the right time to invest as the property is available at rockbottom prices. The crash in property prices led to downward revision of prices by developers. The reduction was to the tune of 30% or so. Hope things go better in the times to come and everyone benefits from the property," Ahmed concludes.

Courtesy:- ET Realty dt:- 19-03-2010

News Headlines

Norwegian major yesterday has released last fourth installment of Rs 2000cr of Unitech wireless and increased his stake up to 67.25% and rest with Unitech but Telenor has got approach from Indian regulator to increase its stake up to 74% but it has no plans to hikes its holdings from current 67.25.
Hospital chain, Fortis Healthcare will raised Rs 1250 cr from domestic and international markets to meet its funding requirements by global depository receipts, American depository receipts and foreign currency convertible bonds, said in a filling to the Bombay Stock Exchange.

Recovery in realty

Recovery in NCR and Mumbai is a definite precursor to the expected trends in 2010, a report says, but cautions that it would be premature to predict a bounce-back for the entire sector. Prabhakar Sinha writes
Residential markets across major cities of India have seen significant appreciation in values towards the close of 2009. This trend is most prominent in NCR and Mumbai, the two key residential markets in India, where values in Oct-Dec 2009 appreciated, compared to the same period the year before, says Cushman and Wakefield in a report.

The report said that recovery in NCR and Mumbai is a definite precursor to the expected trends in 2010. However, it would be premature, the report adds, to predict a bounce-back for the entire sector. The other markets which are still witnessing some correction are expected to stabilize only in the next 3-6 months. These are expected to see positive signs of recovery by the middle of this year, when values across the board would stabilize but will remain within acceptable range. The average increase in capital values in various micro-markets in these two metro areas has been in the range of 3 % to 25% over the previous year, the report shows (see chart). Most micro-markets in these two cities have recorded stable to appreciating capital values over the last quarter as well. NCR and Mumbai have shown a faster recovery than other cities due to the fact that these are high-demand markets, both from end users and investors, who were holding back their requirements as a result of economic slowdown, which created a kind of uncertainty in the job markets. The best outcome of the slowdown is the emergence of affordable housing in the country. At the same time, the strong recovery in the economy led to sharp upward correction in the capital values for mid-ranged housing due to the quantum of demand and affordability.

Certain broad trends that were noticed across cities were that peripheral and the suburban markets witnessed the highest correction but were also one of the first markets to bounce back, C&W says. Another shift in the trend is the rise in demands for properties under construction. The report said, there was a clear shift towards ready to-move-in properties during the beginning of the year, when there was uncertainty on the capability of a developer to complete a project. But that has receded now resulting in a rise in risk appetite for properties under construction.

In the NCR region, demand for affordable housing in the range of Rs 20 lakh to Rs 40 lakh could be understood from the fact that a number of projects completely sold out within a couple of days of their launches. Recently, in Noida, Supertech, which launched apartments for Rs 9.75 lakh, (this is the first project in NCR for sub-Rs 10 lakh) could sell around 500 apartments in a couple of days. The new trend has led to increase in the volume of transactions. Supertech CMD, R K Arora, says that the developers have now shifted to high-volume business from high margin ones. However, he also pointed out that this became possible because of the relaxation in the density norms (number of apartments allowed to be constructed on a given area). Therefore, the construction activities are set to rise in 2010.

Due to focus by developers in 2006 and 2007 on luxury housing, high-end properties in most cities suffered a steep correction when slowdown impacted the sector, as compared to mid-end properties. This left a large unmet demand in the mid-end market. As favourable conditions have come back, the sector has witnessed resurgence of demand.

However, for the trend to continue, the government should not put extra burden on it. The budget announcement of 10.3% service tax on the sale of apartments before completion is expected to have the highest impact in the real estate market. This may hamper the attractiveness of the projects under construction. The scope of service tax is extended to the construction of complex service, wherein the developer/builder is likely to pay service tax on construction services while the project is under construction. The levy would cover all construction of complex service or commercial or industrial construction services resulting in higher cost of properties under construction. The service tax of 10.3% will be levied and also be charged on additional services provided in residential developments such as preferential location charges, internal or external development charges, etc. It is estimated that service tax of 10.3% will be levied on approximately 33% of the value of an apartment, which is likely to escalate the price of real estate and put further pressure on the housing affordability. In the short term, the report says, real estate prices across most cities are expected to continue to strengthen. However, it also warns that a significant increase could result in demand drying up and lead to stagnation or further correction. Rental values are expected to remain stagnant, especially in the luxury/high-end segment with certain mid-end properties witnessing buoyancy.

Developers are likely to remain cautious and launch new projects at attractive price points, the report says. Due to prevalent demand for mid-income housing, most developers are expected to focus on new projects in this category, over short- to medium-term, with very few niche projects in luxury category with strong differentiation factors.

Courtesy:- TP dt:-13-Mar-2010


After many months in the dumps, the housing sector was finally sniffing at a recovery as buyers returned gradually, lured by sharp price cuts and teaser loans.

But a Budget proposal to levy service tax on houses under construction is threatening to crimp the sector?s fragile recovery as the resultant price hike is certain to dissuade fresh buyers. The proposal, a bolt from the blue, purported to spur builders into completing projects faster after rampant complaints of long delays.

Though that remains to be seen, an immediate effect will be the prices of incomplete houses rising by 3% after a service tax of 10.3%, including surcharge, is imposed. The levy is based on an earlier Income Tax Department circular, held up due to resistance from developers, which set 33% of the house price as services.
Housing project comprises land, raw material, labor and services. Though services include branding and selling of a project, there is an unwritten understanding that no ?service? was being provided till a developer passed a property title to a buyer. Back-of the- envelope calculations show that an Rs 30-lakh housing property will see a price hike of at least Rs 1 lakh after the service tax is affected.

?Affordable housing will be impacted the worst,? said Niranjan Hiranandani, chairman of Mumbai-based developer Hiranandani Constructions, adding that everyone in that category must now pay developers in installments.

The Budget proposal, coming after the Reserve Bank of India?s incessant frowning on teaser loans, will wane demand further, say realty watchers.
Most houses are typically sold during construction with buyers paying in phases. The Budget proposal means that even buyers who have to pay, say, the remaining 5% of the overall cost during possession, will have to cough up more.

The proposal could also pose problems in calculating remaining payments though it will ratchet up demand for ready-to-move properties, say realty watchers.
As for developers, the market?s response to the proposal will determine their long-term plans. ?Affordable housing will now become unaffordable,? said Rajeev Talwar, managing director of DLF, the country?s largest developer.

?Housing is a state subject and the move is impinging.?

Real estate was among the worst hit sectors in the global downturn as buyers kept away and banks became wary of lending. But teaser loans, some even as low as 8.25% much below their prime lending rate (PLR), last year stalled the decline.

But builders fear that the introduction of a service tax and absence of teaser loans will compound the problem of oversupply of residential and commercial properties in several parts of the country.

Courtesy:- ET dt:- 04-Mar-2010

Says construction attracts service tax only on 33 per cent of the value. The government today said the net impact of the service tax on real estate construction would be only 3.3 per cent, since construction attracts service tax only on 33 per cent of the value. The government had last week clarified through the Budget that transactions such as leasing vacant land and commercial spaces, payment made to developers before the grant of completion certificate and imposing preferred location charges, among others, would come under the service tax net. Developers said the proposal could push home prices up by 10 per cent in Tier-II and Tier-III towns and 0.5-4 per cent in big cities such as Mumbai and Delhi which have higher land prices. However, a senior finance ministry official here said the net impact of the service tax would be only 3.3 per cent, since there is an abatement of 67 per cent. ?There is a false impression being created that prices will go up by 10 per cent but the fact is that 10 per cent service tax is levied only on 33 per cent of the value,? said the official. The budgetary clarification has been issued with retrospective effect from 2007, when real estate transactions were brought under service tax. Abatement scheme, under notification number 1/2006 dated March 1, 2006, says that the contractor is entitled to claim abatement to the extent of 67 per cent of the value of services rendered by him. In effect, the contractor would have to pay service tax only on 33 per cent of the value. Stung by new service tax proposals on property transactions, real estate bodies such as the Confederation of Real Estate Developers Associations of India and Maharashtra Chamber of Housing and Industry plan to approach the finance ministry to seek rollback of some proposals. Developers have already increased prices by 15-20 per cent in the last nine months as demand for homes picked up. This resulted in demand tapering in January and February. Courtesy:- BS dt:- 04-March-2010

Foreign debt, banned in real estate, is finding its way into property firms as bankers and lawyers help builders cobble together new deals to raise money.

Even though foreign loans—better known as external commercial borrowings—are not permitted in construction, property firms have spotted a mechanism where the debt can be provided by foreign institutional investors (FIIs) registered with Sebi. No rules are broken and the deals, involving a three-way transaction, come across as normal private placements in the corporate bond market. The process begins with a real estate company placing nonconvertible debentures (NCDs) with a local entity, such as a nonbanking finance company (NBFC). The next step involves listing the debt security, soon after which an FII steps in. Once the NCD is listed on a stock exchange, the NBFC offloads the paper to a foreign fund. Since FIIs cannot invest in unlisted debt, the NBFC warehouses the NCD till the paper is listed and then recovers the money by selling the debentures to a foreign fund.

The two transactions are part of a back-to-back deal struck between the firm issuing the NCD, the local NBFC and the FII. At least four developers—three from Mumbai and one from Bangalore—have risen over Rs 1,000 cr in the past few months through this route. “It does not directly violate the Press Note on foreign investment in property, and such FII investment is within the overall corporate bond ceiling applicable to foreign funds... but it’s against the spirit of the regulation,” admitted a senior banker who has advised one such NCD issue.
Indeed, a few foreign banks have made presentations to property firms on the convenience of such fund-raising which has become more attractive since the government plugged a loophole on the foreign direct investment (FDI) regulations in the real estate sector.

Courtesy:- ET dt:- 04-Mar-2010


In the past few years, FDI worth billions of dollars came in as overseas investors subscribed to equity and quasi-equity products — often with put options — sold by real estate firms which were starved of bank finance. But a chunk of this inflow was based on an interpretation that the three-year lock-in on the FDI applied only to the ‘original’ amount brought in and not the full quantum of FDI in a project. Many investors took advantage of this: an offshore fund which decided to put in, say, $25 million split the inflow, by first bringing in $5 million, the minimum amount, and then bringing in the balance $20 million subsequently. The understanding was that the lock-in applied only to $5 million and not $25 million. This flexibility in interpretation disappeared after the government clarified last year that the full amount, irrespective of whether the money comes in tranches, would be locked in for three years. The move, which came as a jolt to several foreign investors, paved the way for the more recent NCD route that’s catching on among local developers.

“There are advantages. First, there is no lock-in because the FII can sell the NCD as and when it wants. Second, the debt is secured against mortgage of assets, pledge of shares, etc. Third, unlike FDI, here the foreign investor can fund even those projects which are not FDI-compliant,” said a lawyer familiar with such debt-raising. For a project to receive foreign equity or FDI, it should not have less than 50,000 square meters of built-up area, among other things. “These conditions don’t come in the way when a foreign fund buys NCDs,” he said. Interestingly, such NCDs have also been issued by a leading NBFC which, like property firms, are restricted from tapping the ECB market.

According to a real estate fund manager, some foreign investors reluctant to increase their equity exposure post the downturn, prefer secured debts with a decent interest return. Sebi’s listing regulations extend to debentures that have been privately-placed; and, the NCDs can be listed even if the real estate company or a project specific special purpose vehicle floated by it is a private firm or an unlisted public entity.

Courtesy:- ET dt:- 04-Mar-2010


DLF, the country’s largest realtor by market value, is planning to build a premium residential apartment complex at Worli in Mumbai instead of a high-end mall project, as demand for retail spaces has come down sharply, according to a company executive.

“We felt residential will do well here, and we will fix the price depending on market conditions,” he said. According to DLF website, the project is under “planning and development” under the high-end mall brand Emporio.

Rents of retail spaces are down by 25-30 per cent from their peak in 2007-08 as demand slowed. Though demand for office spaces have picked up slowly, property consultants expect lukewarm demand to continue for retail developments.

Worli, which was a former hub of textile mills, is witnessing modern office developments by realtors such as Indiabulls, Bombay Dyeing and Century Textiles, and residential apartments command a price of Rs 22,000 per sq ft and above.

DLF made news in 2005 when it bought a 17-acre Mumbai Textile Mill land from National Textile Corporation (NTC) for Rs 702 crore. The company at that time announced it would build a futuristic retail-cum-entertainment complex on the land.

The new project is expected to be launched in the next four-five months after taking all the necessary approvals, the executive said.

According to property consultants, the company changed the plan several times as real estate market went through a prolonged slowdown.

However, DLF is not alone which converted its mall project into a residential one. Host of others such as DB Realty in Dahisar area of Mumbai, West Pioneer in Kalyan near Mumbai and TTK group in Bangalore also changed their plans to build mall to apartment projects.

Apartment prices have raised 15-20 per cent since mid-2009 as home buyers returned to the market. Earlier, prices had declined by around 40 per cent as home buyers stayed away.

Buoyed by response for its apartment projects, DLF is expected to launch 8-10 new residential projects in the next one year, according to sources. DLF, which stalled some of its office projects during the slowdown, is planning to launch two-three commercial projects in Gurgaon and Hyderabad.

DLF today sold 1,200 units of independent floors in its Panchkula Valley housing project in Chandigarh within a week of its launch. The units were priced between Rs 30 lakh to Rs 60 lakh. The company is aid to have made around Rs 500 crore from the sale of units. The company originally planned to launch 500 units, but later increased it to 1200 due to good response, a release from the company said. The project was launched on Feb 18, 2010. The company, which had plans to book these units in 45 days till March 31, 2010, closed bookings within seven days of launch as the bookings crossed 1200 units within 15 days.

Courtesy:- BS dt:- 26-feb-2010


Sales of newly built US single-family homes fell unexpectedly in December, data showed on Wednesday, the latest indication that the government-led housing recovery might be losing some steam. The Commerce Department said sales fell 7.6% to a 342,000 unit annual rate from an upwardly revised 370,000 units in November. It was the second straight month that new home sales declined. US stock indexes fell on the data, while government bond prices held at higher levels.

“This isn’t good news. It should put some pressure on the market, especially coming after the disappointing outlooks we saw,” said Dan Cook, senior market analyst at IG Markets in Chicago. New home sales for the whole of 2009 fell 22.9% to a record low 374,000 units, the department said.
The data came as the Federal Reserve deliberated on monetary policy. The US central bank is expected to leave overnight lending rates near zero.

At its meeting in December, the Fed announced it would end purchases of agency mortgage-backed securities in March. The program has depressed mortgage rates, contributing to the housing market’s healing in recent months.

But the housing market recovery is showing some signs of fatigue after a surge in sales as first-time buyers rushed to take advantage of a popular tax credit, which had been scheduled to expire in November.
It has since been expanded and extended until June this year and while analysts expect home sales to pick up as a result, they reckon the pace will not be as strong as witnessed with the initial tax credit.

Courtesy:- ET dt:- 28-jan-2010

Unitech again approach to DIPP for fund raising 
The Second Largest Real Estate Company Unitech again approached to Govt. (DIPP) for approval for Real Estate fund raising via FCCBs near about $700m (Rs. 3200 cr) in a single year third time. Already in march of this year company raised $325m at price Rs 38.50 per share and in june Rs. 82 per share through External Commercial borrowings (ECSs) which permitted by Govt in Jan 2009. In jan 2009 the value of the Real Estate Company Unitech is one third of total debt 10,000/- cr and toady Real Estate Company Unitech shares closed at Rs 79.95, valuding the firm at around Rs. 19,910 cr. At its peak, the firm was valued at around Rs 87,370 cr. 

Country’s largest property firm, DLF, has shuffled it top deck with its CFO Ramesh Sanka being replaced by Ashok Tyagi and hotel division head Shakti Singh leaving the firm.

A circular signed by company’s vice-chairman, Rajiv Singh, on Wednesday said that Mr Sanka, the group CFO, has been “promoted as the managing director of the office business.” He will lead office leasing business, facility management and utilities business. He joins A S Minocha, who now will change his role from executive chairman to non-executive chairman in the office business.

The transition had begun over a month ago, when Ashok Tyagi, who was until recently managing Mr Singh’s office, was asked to prepare for the CFO’s role. The existing finance, accounts, banking, tax and business planning teams across the group will now report to Mr Tyagi, according to the circular sent to employees. Sriram Khattar will replace Mr Tyagi in vice-chairman's office.

There has been speculation around Mr Sanka’s exit from the group ever since the property market went into a downturn leading to DLF shares touching an all time low. The speculation about his exit coupled with the sale of some of his shares of DLF once sparked a massive sell-off in the market earlier this year. Mr Sanka and the company denied any proposed exit of the CFO, but speculation didn’t die down.

In another significant move, Shakti Singh, who spearheaded DLF’s hotel business has also quit. Mr Minocha will take over the hotel business. Y K Tyagi, an executive director in the hotel vertical, will continue to oversee Amanresorts, a luxury hotel chain DLF purchased in late 2007, and will report directly to the vice chairman.
DLF has recently restructured its entire business by dividing it into sale and lease verticals. The sale vertical includes all homes, and those offices and shops that are slated for sale. Malls and offices slated for leasing are part of the other vertical. The ‘lease’ vertical will now have Mr Sanka as it head, while the other vertical is headed by DLF MD T C Goyal.

In the past six months, DLF has witnessed other exits from its top rung. The company’s residential vertical head, A D Rebello, and SEZ head Yogesh Verma too quit to join other companies earlier this year Courtesy:- ET dt:- 01-10-09

Shares of Delhi-based Parsvnath Developers zoomed 16% on Wednesday puzzling analysts who had expected that a lower than-planned fundraising via qualified institutional placement (QIP) could affect the stock.

Parsvnath shares closed at Rs 144.85 on Wednesday. Parsvnath Developers, which now has a market cap of Rs 2,660 crore, planned to raise $150 million via QIP, but later settled for just $35 million. A senior executive at Parsvnath said the company didn’t immediately need more funds. He added that 60% of the funds raised will be used to retire debt and the balance for the execution of existing projects.

Fidelity, Morgan Stanley and American Century were among those who invested in the Parsvnath’s QIP.

“I’m puzzled at the way stock has risen on news which should have been seen as negative,” said Shailesh Kanani, a real estate analyst with Angel Broking. Another analyst with domestic brokerage said there could be some other trigger for the stock to rise so much.

A company executive said the fundraising has eased the liquidity scenario prompting the market to re-rate the firm’s scrip.

Courtesy:- ET dt:- 01-10-09
Parsvnath Developers Ltd.
Parsvnath Developers Ltd have recently performed ‘bhoomi pujan’ and announced the launch of Parsvnath City Saharanpur. The project, spread over 107 acres, will offer plotted development, independent floors and expandable villas at affordable rates starting from Rs. 9.5 lakh.

Parsvnath Developers Ltd, a real estate company, is doing multi-facet construction activities for over two decades. It has attained the status of one of the leading real estate companies of India. The company has transformed barren tracts of land into landscaped green belts housing world-class commercial, residential and recreational properties. With pan-India presence across 47 cities in 16 States, Parsvnath Developers Ltd has a diversified portfolio which includes Integrated Townships, Group Housing, Commercial Complexes, Hotels, IT Parks and SEZs. As on date, the company has 98 ongoing projects and a total developable area of over 193 million sq. ft. across all real estate verticles. Through the length and breadth of the country, Parsvnath group has successfully completed 37 projects. Today, Parsvnath with its high commitments has become synonym for perfection, innovation, customer satisfaction and transparency. They are an ISO 9001, 14001 and OHSAS 18001 certified company.
The View’ residential project has been launched by Ramprastha Group. ‘The View’ project is strategically located in Sector 37 D, Ramprastha City Gurgaon - a township spread over 45 acres of land. Other specifications of the ‘The View’ project are – 0-km from Dwarka Expressway & Metro Station, 15 minutes drive from IGI Airport, right opposite to Reliance SEZ, a premium residential experience of luxurious villas, group housing, penthouse, plotted row houses & town houses, complete with ultra modern amenities like school, hospital, hotel, shopping mall, multiplex, golf club, post office and a temple. ‘The View’ has a great planned infrastructure to boast of.

Ramprastha group is a renowned real estate company, operating in Delhi/NCR for almost four decades. The company has planned and developed many prestigious projects including townships, plotted housing colonies, and a large number of group housing dwelling units. This is the first construction company to foray into building of self-sufficient colonies. Ramprastha group, with its innovative construction techniques and unique craftsmanship, has set inimitable benchmark for its competitors. Ramprastha group’s vision is to create and promote developments that are forward looking, innovative and tailored for specific markets, to promote Ramprastha development - a good place to live, work and enjoy life, to optimize personal development of staff through quality training and establishing and maintaining the highest standards of professionalism and ethics.

Festive time makes loans less expensive

With festivals round the corner, analysts believe developers will offer some attractive schemes to attract home buyers

Activity in the residential property market has increased quite significantly during the last couple of months. As consumer confidence is increasing, the developers are launching many new projects. Many of these projects are being launched with lesser frills to target the middle income segment using the affordable housing tag. As the festival season begins, analysts believe developers will offer some attractive schemes to attract homebuyers and book as many units as possible. Analysts also feel there are many factors that indicate property rates are at the bottom and could start rising in the medium term. The overall economic conditions are improving and the demand in the housing market is slowly picking up, which is expected to drive property rates upward. Also, the interest rates on housing loans are quite low due to the soft monetary policy adopted by the Reserve Bank of India (RBI) . Currently, banks have excess liquidity and the demand in the retail loan segment has been subdued during the last few quarters. Many banks are planning attractive home loan schemes to draw homebuyers during the coming festival season. Therefore, people looking at investing in property can make a serious attempt to get a good property and home loan deal. Usually, an investment in a housing property requires a long-term financial commitment for an individual. The housing loan usually runs for a long term (10 to 15 years) and therefore, it is very important to think through various financial aspects around it. Volatility in interest rates has increased quite a bit during the last few years and the cycles of interest rates- upswings/downswings – have become short (as visible during the last few years). Financial institutions have virtually stopped offering loans with fixed interest rates for the full tenure. Therefore, it is very important for those looking at taking a home loan to plan their monthly inflows and outflows well in order to avoid any defaults. Courtesy:- ET dt:- 25-09-2009.


Housing construction rose in August and the number of newly laid-off workers seeking unemployment aid fell unexpectedly last week, adding to signs the recession has ended. Still, the reports suggested a slow and fragile economic recovery.

In part, that’s because the increased housing starts were due solely to a surge in construction of apartment buildings — while the much larger single-family homes sector fell for the first time in six months. And jobless claims remain far above the levels associated with a healthy economy.

Even as the housing industry begins to recover from its worst downturn in decades, a glut of unsold homes and record levels of home foreclosures are weighing on the industry. Construction of multifamily homes and apartments rose 1.5% to an annual rate of 598,000 units, the highest level since November, the US commerce department said on Thursday

Courtesy:- TOI dt:- 18-09-09


Max City Developers brings to you state of-the-art architectural and engineering excellence called "Park Sapphire". Strategically located, just 2 km east of Delhi (Anand Vihar) in an integrated township spread over 100 acres of Ramprastha Greens in the very heart of Vaishali, the project has three high-rise 15-storey towers with luxurious two and three bedroom apartments and penthouses. The construction is in full swing with December 2010 the project completion time.

Courtesy:- HT Estates dt:- 19-09-09


Omaxe Ltd. will develop a hi-tech township spread over 2700 acres (approx) in the heart of Uttar Pradesh in Lucknow. Garv Buildtech Private Ltd, a subsidiary of Omaxe, has signed a Memorandum of Understanding with Lucknow Development Authority to develop the Hi-tech Township in Lucknow.

The Hi-tech Township will be executed over a period of five-seven years. It will cater to the growing demand of quality living space in the city. The township is strategically located on the proposed Lucknow Ring Road, close to Lucknow Airport and an half-an-hour's drive from Hazratganj, center of Lucknow city.

Courtesy:- HT Estates dt:- 19-09-09


The real estate revival story is being driven by the residential segment, but contrary to the claims made by a number of developers that end-users are their main buyers, the current trend is being driven by investors.

“These are investors who are taking an opportunistic view of the situation where prices have corrected considerably in many locations,” says Sanjay Dutt, CEO business at Jones Lang LaSalle Meghraj (JLLM). He estimates that a good 40% of the stock sold in the last few months would have gone to investors. In Delhi-NCR, this figure might be higher at 50%.

“Investors are back in good numbers and before the curve goes up, they want to buy. Some who have bought are already hoping to book profits during this Diwali,” he adds. This could be a precursor to further improvement in investor sentiments, since investors would take this as a sign to look towards a sustainable run in the future.

Investors took flight from the residential real estate market when the market crashed last year and many have been shy of venturing back. The last few months though have seen a number of affordable launches at price points, which have stimulated the market. Most developers have launched mid-income housing in the Rs 20-40 lakh range, which has created a movement.

While the short-term investor is there, interestingly, a good number of the investors are medium to long-term investors. “These investors are flocking to real estate because of the lack of other investment opportunities in the market at the moment,” says Ajit Krishnan, partner, real estate practice at audit firm Ernst and Young who feels the trigger for these investors was the drop in price points in the residential segment in the last eight months.

These investors are not purely speculative and are investing in real estate as a shelter against inflation, he says. Other investment opportunities today do not yield the same results.

Developers on their part are insisting that a majority of the buyers in their projects are end-users. As there is no set way to differentiate investors from end-users, Unitech looks at consumer behaviour to judge one from the other. “Investors usually are not too bothered about specification details, do not go for site visits too often. We have not seen such behaviour at our projects. It appears that a large majority are end-users,” says R Nagaraju, general manager of corporate planning at Unitech.

Wherever prices have been brought down to attract customers, there have been investors but Aditi Vijayakar, executive director, residential services at Cushman & Wakefield says these investors are mostly long term. “These investors are using this decline in the market to buy another property which they can decide on selling after the project is delivered,” she adds.

Alongside investors are endusers who are mainly interested in completed homes. “The question is of consumption. We are definitely seeing movement in completed properties which are being picked up end-users,” explains Krishnan.

Prices in the residential market in NCR-Delhi and Mumbai have started to climb up in the last months or so and Vijayakar warns that it is a little too early to raise prices. “In the medium term, it will not be sustainable for developers,” she says. There is a concern that the few end-users who have started to show interest might be deterred from making purchases if the prices of homes keeps rising.

Courtesy:- ET dt:- 08-09-2009

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.


Developers Jack Up Prices In Mumbai & NCR; Move Likely To Dampen Demand
With residential property buyers gradually returning to the market, especially in key regions like New Delhi-NCR (National Capital Region) and Mumbai, realty prices in these areas have moved up 10-15%. While some developers have increased prices across projects, others are doing it on a project-specific basis.

Industry trackers say the hike in prices could result in demand moving southwards. Realty fund Kotak Investment Advisors’ director, Vikas Chimakurthy, said, “There was a substantial demand, especially in the mature markets, after prices dropped a few months ago. Today, potential customers are not willing to buy properties at these (higher) prices.”Developers, meanwhile, confirmed the decision to hike prices. “We have increased prices across all our properties by 10%. It is not much and is the result of the improved market conditions,” said Abhishek Lodha, director, Lodha Developers, a Mumbai-based company that has projects in and around the city.

Delhi, like Mumbai, is witnessing a hike in prices of realty projects. DLF, the country’s largest real estate company by market capitalisation, is one of those whose properties will be dearer. “Yes, there has been a price increase though it is still limited to some projects nearing completion,” said DLF executive director Rajeev Talwar.

How long these prices will hold out is hard to determine. “Mumbai and some parts of New Delhi have been witnessing some rise in price and it will be interesting to see if these prices are sustainable. In other markets like Bangalore, supply still exceeds demand,” said real estate consultant Saffron Asset Advisors managing director Ajoy Veer Kapoor.

As realty gets pricier, there has been concern among buyers about whether this is purely on account of the economic scene improving or due to builders reaching an understanding among themselves. Though prices have not reached the 2007 levels, the hike has been enough to make buyers think twice. “We are still a while away from the 2007 levels, which could take two more years. In our case, we have increased prices by around 5% for our projects and are hopeful of a recovery by the end of this year,” said Hiranandani Constructions managing director Niranjan Hiranandani.

Courtesy:- ET dt:- 03-09-09

Now the Boom in real estate market is coming up nation wide.
Its good time to invest in Real estate.

Planning to take Space on lease – good time has started

Planning to expand your business – the commercial space is looking up. The good news is that the commercial segment in real estate is upbeat and demand is picking up. The process of stabilization has now begun over the last few weeks . Company which were hesitant earlier and now looking up to expand to viable location. A study by global real estate consultancy Jones Lang LaSalle Mehraj (JLLM). Shows commercial rental across all major cities reaching stability after an overall downward movement in the second quarter .According to the consultancy, absorption between 4-5 million square feet of commercial space was witnessed in the first quarter of 2009, which was higher than fourth quarter of 2008. As per research rates have changed by this way…….

Average Rental Value Rs./Sq.Ft

3 Month (% change )


CBD Prime



South Delhi Prime



Gurgaon Prime*




South ( CBD – Nariman Point )



Central ( Worli)



Suburban (Andheri )



Suburban ( Powai ) IT



Suburban ( Powai ) Non IT




Park Street / Camac Street



Rajarhat/ Corporate*



Salt Lake Corporate *




CBD Anna Salai, RK Salai (Corp)



Off CBD ( T Nagar , Alwerpet)



Suburban ( Guindy)







Suburban( CV Raman Nagar, Koran gala )



Peripheral ( Whitefield / Electronic city)



Source: The Economic Times

Date: 21 June, 2009

Ansal Properties and Infrastructure to raise Rs. 1500 cr. Through QIP

APIL, The flagship company of the Ansal API Group has announced its intention to raise upto Rs. 1500 cr. By way of qualified Institution Placement (QIP). Mr.Pranav Ansal, Vice Chairman and MD, Ansal Properties and Infrastructure said ,“The raising of fund via the QIP route is a capital raising exercise for APIL . This QIP will also be used to partly fund and support the two large hi tech integrated township  consisting of hotels, buildings , malls , IT parks , Bank , Group housing etc in Lucknow  namely Sushant Hi-tech city of about 1760 acres and Megapolis in Dadri which spans over 2500 acres.

                                                                                                          Source: The Economic Times
                                                                                                          Date: 21 June, 2009
Omaxe Bags orders worth Rs 128.34

Omaxe Infrastructure & construction Pvt Ltd , announced that it has received an order worth Rs, 128.34 cr. (approx) from UP Projects Corporation Ltd ( a UP Government Undertaking ) for modernization of three projects in Orissa . The scope of work includes modernization of ESI Hospitals in Bhubaneshwar and Cuttak.

Source: The Economic Times
Date: 21 June, 2009

Upswing in real estate market ………………

Real estate market is gaining momentum again.

The realty market in the city is seeing a renewed interest after a long time. After a prolonged dry spell in real estate market buyers are now back specially in Residential segment. A big industrial city Ahmedabad is witnessed with a great interest, according to conservative estimates builder in Ahmedabad and Gandhi Nagar have raked in business worth Rs. 1000 Crore in the last one month.

According to estimates, in the last one month builder having projects in Ahmedabad and Gandhinagar would have done business of about Rs. 1000 cr. Mr. Patel Said, Vice president, GIHED (Gujarat Institute of Housing and Estate Developer).

“During the same period, there has been tremendous growth @ rate 20 % rise in bookings across all residential segments including Studio apartment, 2 Bed room, 3 Bed room flats, he added.

BSE Sensex has infused a lot of liquidity in the property market of Ahmedabad. The boom in Primary and secondary markets has infused a lot of liquidity. Those who have been postponing their Home buying decisions have been started making enquiries.” This boom has come after the Lok Sabha elections.

Source: The Economic Times 
Date: 21 June, 2009


The big wait is on. Buyers are all waiting for the lowest point in the real estate cycle where prices bottom out, enabling them to get an attractive deal. Namrata Kohli reports To buy or not to buy has been the question. There are genuine buyers in the waiting but they are playing a cautious wit-and-watch game, hoping prices will rationalize themselves. Gagan Gulati, a housewife, says: We have wanted to buy for the last eight to nine months. First, the values were prohibitive as the flat where we are staying on rent in Dwarka was a 3+1 unit, up for sale for Rs 92 lakh. However, the same flat is now available for Rs 86 lakh. We are hopeful that the values will correct further and it should be an affordable proposition for us to buy them within Delhi. We are quite fed up of waiting but as every penny counts, sanity lies in waiting, for the time being. There was a time when it was an investors market and the end users had got elbowed out of the market what with values reaching unrealistic levels. Now, with market dynamics changing, developers have started lowering prices but values still haven’t reached attractive levels for end users. Hence, further reductions are needed in the interest of completing projects which are in various stages of construction.

The values have dipped but the buying activity has not picked up as popular perception is that values will fall further. There has been sufficient competition in the market amongst developers, with respect to pricing, says S C Jaisimha, Managing Director of Asia Pac International India. Everyday, we have been witnessing developers dropping prices in their ongoing projects and new project launch being launched at corrected price levels. There are new sectors which have come up on account of the new master lanes (in many Tier I cities), which has increased the availability. Jaisimha adds that supply has overtaken demand by almost 200%. Today's mantra for developers is liquidity and cash flows for early and timely completion of projects with reasonable margins, rather than looking at a long horizon for better margins So, in many pockets, we have already witnessed prices generally dropping in the region of 25-30% and in some exceptional cases, close to 50%. With this, we believe the prices have dropped to reasonable levels, which has prompted some genuine buyers to scout for properties of their choice and budgets. Having said this, there is still a perception in the market that the pricing has not bottomed out. So for the time being, it is a wait-and-watch scenario for most of them.

There has been a significant drop in transaction volumes with high interest cost on loans, which has been prevailing free over a year now, also being a reason. But slowly and steadily, this is also coming down, which would generate demand in the medium to long term.

So, what has been the drop in transaction volumes? According to Vivek Dahiya, director of occupational and development markets at DTZ: There was a significant drop in transaction volume in Q4 of CY 2008. Some brokerage firms focusing on residential transactions oly saw volumes come down by 50%-70%.

Today, ready-to-move-in apartments are really selling, albeit with low premiums compared to projects under constriction. The new projects with realistic pricing have attracted genuine buyers.

Significantly, the direction in which demand is moving and the supply is following suit, suits the mid-end housing. Jaisimha says: The hot market today is the middlemen or the affordable housing in a budget range of Rs 20 to 30 lakhs for a decent 2-bedroom accommodation. Some developers visualized the importance of this and have already made inroads into this category. So, today you see various leading builders like DLF and Unitech announcing schemes for affordable housing. The recent response to allotment of flats by DDA is a classic example of genuine buyers waiting to buy at reasonable and realistic pricing nearly 8 lakh applications for just 5000 flats says everything.

The big question is when will real estate prices actually bottom out. Dahiya says: Reduction in rates will carry on through 2009 and in some micro-markets or product types even till 2010. Essentially, markets or segments that witnessed the steepest resin the 24 month during 2006-07 will continue to get rationalized over the next 4 quarters. Transaction activity is beginning to pick up, but only marginally, and in select locations and projects depending on attractiveness of rates.

However, developers would have us believe that whatever correction was possible has already happened and the properties are today available at best prices. Brijesh Bhanote, vice president sales and marketing at Vipul Limited, says: I think the real estate values have already gone through a big correction and the only way now for it is to go up. The margins at which developers are operating today are any way so low that sustenance can become an issue with many who have not regulated their finances.

Rohtaz Goel adds that the residential real estate is offering best deals to its buyers in current scenario. Most developers have already squeezed their margins to the minimum level, and hence we don't see any further price correction in the real estate. The projects are therefore available at the best price to both end users and investors.

At the same time, they recognize that the demand for affordable and mid-income housing is constant. They feel optimistic that the recent cuts in repo rates and CRR rates will further help in softening the interest rates in the coming months and bring the customers back to the market.

Courtesy:- Times Property dtd:- 21-02-09


$758 Lifeline For Homeowners, $200b To Freddie Mac & Fannie Mae US President Barack Obama on Wednesday targeted the housing crisis at the root of the US economic meltdown, with a program which could cost $275 billion and reach nine million homeowners. The strategy includes $75 billion designed as an incentive for lenders to reduce interest rates to prevent at-risk mortgage debtors joining the millions who have already fallen victim to foreclosures. The government will also put up an additional $200 billion dollars to bolster confidence in efforts by federal lenders Freddie Mac and Fannie Mae to offer affordable mortgages and bring stability to the housing market. Obama opened the new front in the broad battle against the economic crisis a day after signing a huge, $787-billion stimulus plan into law, and as he simultaneously attempts to restructure the debilitated US auto industry. "All of us are paying a price for this home mortgage crisis and all of us will pay an even steeper price if we allow this rises to continue to deepen," Obama said as he unveiled the plan in Arizona, one of the states worst hit by the crisis. "When the housing market collapsed, so did the availability of credit on which our economy depends. "We will help between seven and nine million families restructure or refinance their mortgages so they can avoid foreclosure," Obama said. Treasury officials said the plan could reach or make affordable one-and-a-half trillion dollars in mortgage debt and deal with a large proportion of the six million foreclosures expected over the next four years. The plan includes incentives for lenders to help debtors who cannot make monthly payments but also cannot sell their homes due to negative equity, to lower mortgage payments to no more than 31% of their income. The plan will see the treasury department double its financial support to troubled mortgage finance giants Fannie Mae and Freddie Mac, to $200 billion each, in an effort to stabilize the real estate sector. A $75-billion initiative will target those who cannot afford to pay their mortgages and have seen the price of their properties plunge so cannot sell them and move into cheaper accommodation. The initiative also aims to help families who put money down on homes and met their regular payments, yet cannot take advantage of refinancing made attractive by low mortgage rates because the value of their homes have sharply dropped. Fed sees unusually prolonged recovery THE United States' economy would face an "unusually gradual and prolonged" period of recovery as it struggles to climb out of a deep global downturn, the US central bank has warned. Releasing its economic outlook for 2009 on Wednesday the Federal Reserve or Fed said it expected that the economy would contract by 0.5% to 1.3% this year, unemployment would rise to 8.5% to 8.8% and inflation would remain under greater pressure. Bleak economic data reflecting a sharpening slide in housing, trade, industrial production, spending and employment rates "more than offset" any potential impact from an economic stimulus plan, the Fed said, forcing it to cut its economic outlook. — IANS/Washington

Courtesy:- ET dtd:- 20-02-09


With new houses mushrooming every day and commuting becoming the bane of our lives, coupled with high levels of noise pollution, the concept of home offices are becoming increasingly popular. Whereas America has had this concept for decades, it was earlier meant for women working part time where they could fulfill the dual demands of running a home as well as their careers. No longer is this true, Jyoti Aggarwal a financial analyst for Wall Street mostly runs her office from her Manhattan apartment, whereas Neera Raj a full time realtor has a beautifully appointed home office in her New Jersey mansion. The same is true here as well. Many executives, COOs, designers, architects run their office from home. Not only does it give them flexible work hours, but those who operate from their corporate offices can come home early enjoy a workout at a local gym and get back to work with their shoes off in the leisure of their home offices.These spaces are not meagerly done up to work as a make shift back office, in fact detailed planning and execution goes into these specifically demarcated areas.
In a lot of cases these spaces are modern and functional while others have beautifully laid out carpeting, chandeliers, mahogany desks and of course the laptop, with a seating of a comfortable sofa set, coffee tables to match for those meetings conducted at home even on a weekend.
Jagdeep Rangargh, head of Stork Group of Companies, has a lovely home office in his DLF home and he completely enjoys working from there. Complete with wooden flooring, a desk and his computer, he manages his entire group of companies even though he travels around the world for his business meetings. His wife Poonam reveals that many a Sundays, he works from here and is also able to catch up on a game of golf, while he can come home early and work late into the night whenever he wants. Lined with a complete library, this is where Poonam catches up with most of her reading while Jagdeep works.
Aashish Thakur, head of Ashwin Enterprises has a modern and functional home office in the basement of his house. Done up in light wood, the basement has been divided into portions as work stations with glass doors separating them. The other part is his wife Anjali's, who runs her design business from there. Interiors and furniture is their concern and a home office in their Phase-III home is definitely an advantage, apart from his main office.
Courtesy: - ET Realty dtd:- 29th August 2008


It may become mandatory for developers to design and construct buildings, which consume more than 500 kw, according to Energy Conservation Building Code. Bureau of Energy Efficiency (BEE), the statutory body under the power ministry, may make it must for developers to adhere to energy-efficiency norms. ECBC sets minimum energy performance standards only for commercial buildings or complexes with a load of 500 kw or more. "By the end of this year, we plan to make it mandatory for the developers to follow Energy Conservation Building Code (ECBC)," BEE director Ajay Mathur said. Mandatory enforcement of ECBC is expected to yield annual saving of 1.7 billion units in the first year itself based on current data. "So far, over 320 buildings in the country have been built as per the code, many more will be added to the list," he said. Earlier, BEE had announced making energy standards mandatory for the consumer durable sector.

Courtesy:- ET dtd:- August 11, 2008


After successful phase 1, co to build 350 low-cost houses in kundli
Delhi-based realty firm TDI is planning to invest Rs 1,000 crore to build lowerpriced homes in the national capital region in the next three years, a senior company executive said.

“The demand for homes is coming back slowly,” said TDI managing director Kamal Taneja, adding that the company was focusing on lower priced homes to attract buyers. TDI, which has its real estate projects spread over Delhi, Kundli and Panipat in Haryana and Mohali in Punjab, recently launched 350 residential units in Kundli and claims to have sold all of it in just a month. The company is now planning to launch another 350 homes over the weekend in Kundli, around 35 kms from central Delhi. The 900-sqft independent floor homes will be priced between Rs 16.50-19.50 lakh. The company will invest around Rs 1,000 crore to build a total of 700 homes in Kundli over the next three years, Mr Taneja said.

TDI has tied up with architectural firms Drew Dickson Associates of Australia and HO Partners of Hong Kong for development of its 1600-acre Kundli township. Following a revival in the capital market, many listed real estate companies, including Unitech, HDIL and Sobha, have raised funds via QIP, while some other unlisted firms such as Lodha Developers and Emaar MGF, are lining up their initial share sale. But Mr Taneja says the market is still volatile and an IPO is not on the cards for TDI immediately.

He says his company is relatively less leveraged and doesn’t intend to go in for any private equity deals either immediately and would focus on selling homes to raise cash. “There is very little private equity money available and there are too many developers chasing it. Also, private equity investments made these days are actually debt structured as equity,” he says, explaining why he is not excited about getting PE fund infusion in his company.

Courtesy:- ET dt:- 21/08/2009


Sahara group’s realty arm Sahara Prime City is planning to raise up to Rs 5,000 crore by this year-end through an initial public offer (IPO) and will approach market regulator SEBI later this month in this regard.
The company is believed to have engaged investment bankers, including Kotak, Enam and JM Financial, for the public issue, market sources said.

The draft prospectus for the IPO is being readied and the same could be filed with the Securities and Exchange Board of India by the end of this month.

No comments could be obtained from the Sahara group spokesperson, but sources said the group would wish to launch the IPO by the end of this year, subject to Sebi approval.

Sahara Prime City will be the third Sahara group entity to enter the capital market after Sahara Housingfina Corp Ltd and Sahara One Media and Entertainment Ltd. It is present in over 200 cities with its housing and commercial projects. However, the group’s ambitious Ambey Valley project is not part of the company

Courtesy:- BS dt:- 21-08-09


After Africa and other third world nations, the United Nations (UN) has now chosen India to set up its dream village. UN, in collaboration with Mohanlal Mittal-led Gita Mittal Foundation (GMF), aims to establish a millennium village in Amarpura-a small village in Rajgarh district of Rajasthan-which would require investments of close to $15-20 million over five years. The idea is to fulfil the basic needs of infrastructure, health, education and employment for the local population.
Mr Mittal's three sons-LN Mittal, owner of the world's largest steel firm Arcelor Mittal, and Pramod and Vinod, promoters of Ispat Industries-would be primarily involved in the funding process. The association is now awaiting final nod from the state government and is slated to begin work on the project by this year-end.
The project is structured around the millennium development goals that the UN laid out in 2000 as part of an ambitious plan to reduce global poverty. The concept of millennium villages is the brainchild of economist Jeffrey Sachs, who is also a special advisor to the UN secretary-general. So far, UN has helped corporates build over 100 such villages globally.
Besides, GMF is planning to set up 32 centres of excellence across Rajasthan with an investment of close to Rs 100 crore over a period of 3-4 years to help students become employable. The foundation has tied up with the Indian Institute of Management, Ahmedabad, (IIMA) for the same. While Mittal brothers would set up the infrastructure, faculty and curriculum would be taken care of by IIMA.
These centres would offer various short-term subsidised post-graduate courses, primarily related to accounts, finance and personality development. The first centre would come up in Churu district of Rajasthan. Under the first batch, the foundation aims to enroll at least 500 students.

Gurgaon to develop nine new sectors

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

ORDER HC comes to rescue of general power of attorney holders

Spelling relief to lakhs of people who bought flats in various apartments on gener- al power of attorney (GPA), the Delhi High Court on Tuesday directed the Delhi Government to immediately implement the provisions of Delhi Apartment Ownership Act, 1986 .

Sincere implementation of the provisions will effectively free GPA-holders, who bought their houses in resale, from the clutches of brokers, builders, promoters and land mafia and protect their rights.

These include formation of their own association, mem- bership at par with original allottees and voting rights and right to fix maintenance.

The order by a Bench of jus- tices A.K. Sikri and Ajit Bharihoke came on a PIL filed by lawyer O.S. Bajpai, who said vested interests, including bro- kers and land mafia, continued to retain hold on various apart- ment complexes because the government failed to implement , d the Act passed 20 years ago.

The court asked the govern- f ment to appoint competent - area-wise authorities within a l month for effective implemen- d tation of the Act.

Directing the competent - authorities to inform the own- t ers of the apartments about d their right to form owners' asso- d ciation in accordance with the - Act, the court said such an asso- d ciation shall take over the man- - agement and books of account e and other documents from the t builders and promoters

Courtesy Hindustan Times - ‎Jun 1, 2010‎

Real estate cos review hospitality projects
Capital – Intensive Nature & Long Gestation Period Act as Deterrent

The capital-intensive nature and long gestation periods of hospitality projects seem to be forcing a rethink among real estate developers on such ventures. While DLF has decided to sell about 7.5 acres in Kolkata and Gurgaon after scrapping plans to build luxury hotels, Emaar MGF Land is putting on the block about 5.6 acres on the outskirts of Kolkata, four years after buying the same at a whopping Rs 190 crore. “We are not pursuing hospitality projects aggressively and plan to sell lands where we do not see the projects coming up on time,” said a senior official of DLF, who is close to the development. However, he refused to comment on the specifics of the proposed land sale. DLF is said to be in talks with Duet Groups India for the sale of its two-acre plot in Cyber City, Gurgaon. It had secured the Kolkata plot on lease in an auction from the Kolkata Municipal, Corporation (KMC) for Rs 155 crore and had plans to build a 16 – storey hotel under the Hilton brand at an investment of Rs 900 crore. The hotel was expected to be operational by 2010. Emaar MGF had also won the land from the Kolkata Metropolitan Development Authority (KMDA) in an auction. It had proposed to build four hotels in and around Kolkata, including three luxury hotels - JW Marriott and Holiday Inn on the EM Bypass and Park Hyatt at Russell Street at an investment of Rs 1,300 crore. “We do not wish to comment on market speculation, but the company continues to evaluate its development plans and take suitable steps in line with market conditions,” an Emaar MGF spokesperson said. Early this year, DLF had sold two land parcels in Mysore too, where it was expected to take up hospitality projects. The company plans to raise Rs 900 crore by selling eight hotel plots across Mumbai, Kolkata, Bangalore, Gurgaon, Baroda, Lucknow, Kasauli (Himachal Pradesh) and Sikkim by the end of June. According to Cushman & Wakefield, both DLF and Emaar are revisiting their earlier plans and are developing hotels only in specific locations. “We will see specific cases where firms will look at exiting the hotel business,” said Akshay Kulkarni, executive director, hospitality services, Cushman & Wakefield. ET-08-05-2010 

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