Housing ministry plans tax benefits for house owners, tenants

NEW DELHI: In a move to push rental housing in urban areas to meet the growing need of migrant population on the lines of other countries, the housing ministry has proposed to give both direct and indirect tax relief to house owners and tenants as well by Centre, states and local governments.

The draft Rental Housing Policy has proposed this based on the fact that renting of homes is treated as a "commercial" activity which increases property tax for individuals and service taxes for institutional rental housing operators such hostels/ PGs and dormitories wherein electricity and utility rates are calculated at par with commercial properties and thereby reducing the rental yield. "Higher outflow due to commercial treatment deters the growth of rental housing," the report says, which has been circulated to states for their feedback.

The report also mentions that the Income Tax Act provides exemption of tax deduction for house rent allowance (HRA) for an employee, which is around 40% on the basic salary. "It is estimated that the urban poor might be paying monthly 30% of their income as house rent without any incentives. The share is much higher in the case of people with less salary in comparison to those who are better paid," a ministry official said.

Arguing for putting in place a robust Rental Housing Policy, the document has suggested different "need based rental housing" models to address diverse housing needs for various segments of the population such as students, working men/ women, construction workers and migrants. These can be owned by individuals, private players, companies and government.

For example, it says that providing housing-to-all on ownership basis is difficult or may not be feasible despite the fact that for governments at Centre affordable housing has been a priority area. Even after taking several initiatives such as subsidies for housing loans and tax concessions the poor cannot afford to own a house due to low disposable and irregular income. And hence there is need to have a separate model for this group.

Considering the fact that poor and those with little income may not be able to pay rent, the policy recommends that states or urban local bodies can incentivize poor owners and tenants through subsidies and tax incentives or rental vouchers. The vouchers provided to urban poor can be used to top up the rent they are paying to move into a habitable space.

The draft policy also highlights that while there is huge housing shortage in urban areas, there are massive stocks of vacant houses. According to the 2011 Census, 11.09 million houses are vacant in urban areas. "While exact reasons for the vacant properties are hard to ascertain it is felt that low rental yield, fear of repossession, lack of incentives etc. are the possible reasons. If these vacant houses are made available for rental housing, then some, if not most of the urban housing shortage, could be addressed."

The policy suggests to states to recognize that many urban households live in rental and shared housing, and hence they should consider renting to be one of the various ways to improve housing condition. Some of the recommendations include estimating the number of rental households and landlords, setting up of a cheap arbitration and conciliation service for landlords and tenants that works quickly and facilitate online registration of rental properties, property dealers working in informal sector, grievance redressal system.

Resource: http://realty.economictimes.indiatimes.com

Cabinet Approves Real Estate Bill 2013, Brings Protection Against Fake Promises & Frauds

PM Modi and the council of Union Ministers in the cabinet has finally given their green signal to the pending Real Estate (Regulation and Development) Bill, 2013. Real estate buyers in India can now be relieved as they will get much needed protection against frauds and fake promises doled out by developers and builders.

This bill was first introduced in 2013 and it only included commercial properties. It was passed by then UPA Govt. but various organizations and consumer groups opposed several clauses and recommended some more changes. A Standing Committee of Parliament on Urban Development was formed to look into suggestions and to incorporate new changes.

Modi Govt. has now approved these amendments, and have added residential projects as well, along with commercial ones. The press release announcing the passage of bill said, “The Real Estate (Regulation and Development) Bill is a pioneering initiative to protect the interest of consumers, to promote fair play in real estate transactions and to ensure timely execution of projects.”

Some major pointers of this bill, which every real estate consumer should be aware of:

– Real Estate Regulatory Authority will be formed for every state and Union Territory which will mandate and regulate the rules pertaining to real estate transactions. And the best part is that all real estate agents, developers and promoters need to be registered with this body. Hence, no more shady transactions and fake promises wherein the buyer is stuck with neither way in nor way out. This is the single most important factor of this bill.

– Government appointed officers and nodal managers would exist to resolve disputes between buyers and sellers of real estate

– 50% of the money received from the buyer needs to be deposited in a bank; solely for the purpose of construction alone

– Any ‘major’ changes to the original design and construction plan of the project needs approval from atleast 2/3rd of all allottees of the project.

– All real estate developers and promoters are hereby notified to make all details of their projects fully public. This includes: “details of promoters, project, layout plan, plan of development works, land status, status of statutory approvals and disclosure of proforma agreements, names and addresses of real estate agents, contractors, architect, structural engineer”

– Real estate agents can only sell those properties which are registered with the regulation authority

You can access the complete; amended Real Estate (Regulation and Development) Bill, 2013 here.

Challenges and Growth of Real Estate In India

Despite excellent GDP growth and increase in consumer spending, real estate in India is reeling under severe losses. 23 listed real estate firms in India has incurred debts of more than Rs 35,000 crore as of 2014, with operative profits of Rs 3655 crore, a little more than Rs 3402 crore in 2013.

The 10 major real estate markets in India: Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Pune, Noida, Gurgaon, Bhiwadi and Mumbai registered a modest growth between 0-5.5% in 2014, and real estate returns are hovering between 6-9%, which is way too less compared to the dynamism which Indian economy is witnessing.

The inventory in 5 major real estate markets in India: Delhi, Mumbai, Bangalore, Chennai, Hyderabad, it will take upto 50 months to clear the existing inventory, with Delhi NCR region needing 86 months!

Such is the bad situation that the super-rich of India are now investing in real estate of foreign market, compared to Indian market.

But, there is some good news as well. Technology and Ecommerce are coming to rescue to the real estate market with new innovations such as virtual reality & innovative payments arrangements.

After the Real Estate Bill 2013 is fully applicable, real estate market in India is expected to improve, and instill more confidence among investors and buyers.

Resource: http://trak.in

Dream homes: Real Estate market in NCR

Fall in real estate prices in the Delhi-NCR is certainly a good news for buyers who have been deferring their purchase in the hope of more correction in the market, and this combined with the projections of better ROI on investment in upcoming NCR micromarkets like Neemrana and Bhiwadi means more cheer for those looking for their dream abode in the NCR region.

Resource: http://economictimes.indiatimes.com

Buy Indag Rubber; target of Rs 232:Firstcall

Indag Rubber Limited (IRL) was incorporated in July 1978 as a joint venture between Khemka group and M/S Bandag Incorporated, USA, one of the biggest players in the US retreading industry. The Khemka Group founded Indag Rubber during the early 80’s and pioneered the introduction of cold retreading technology in India. The company has provided retreading material to its customers ranging from precured tread to curing envelopes. The tread rubber is made from superior raw materials and pressed at a very high pressure resulting in a product that gives high performance both in terms of mileage and tread life. Indag is committed to deliver world class quality products & services and improve upon its quality standards to meet the best expectations of customers. Indag uses advanced technology in terms of machinery, equipment and raw materials. As a result, its products give mileage that result in LOWEST COST PER KILOMETER. Its processes have been certified as ISO 9001:2000 compliant. Indag continuously engages in R&D to develop and deliver superior compounds that give higher mileage to customers. The company constantly engages in testing of these compounds in the field to ensure that their customers get a product that gives superior performance. The company’s factories are located in Nalagarh, Himachal Pradesh and Bhiwadi, Rajasthan to ensure speedy delivery of its product to customers all over India and different parts of the World. For Speedy delivery of products, the company’s distribution network spread across 500 to 600 Retreaders, 100-150 dealers and 25 Depots pan India Presence. We recommend ‘BUY’ in this particular scrip with a target price of Rs.232.00 for Medium to Long term investment. For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 

Resource: http://www.moneycontrol.com

Chase From Gurgaon Ends In Andheri

Mumbai/Gurgaon: Sandeep Gadoli, Haryana's most wanted criminal and the leader of Gurgaon's biggest gang, was killed in a shootout inside a Mumbai hotel room on Sunday morning, cornered after a cat-and-mouse game with the cops for over three months since his cover was blown last November.

Gadoli (32) was tracked down to a ground-floor room at the Airport Metro Hotel in Andheri (east) by a Gurgaon crime branch team that decided to move in after a stake-out of the building. He received bullet injuries in his chest and leg during the shootout in which two cops were injured. Police said a woman was with him in the room and was taken into custody for questioning.

Two aides of the gangster, Manish Khurana and Deepak, were arrested from another room. Two more women, both foreign nationals, were detained for questioning. Police said they were all part of Gadoli's retinue as he kept shifting cities, and travelled with him in his SUV. The woman in Gadoli's room is from Gurgaon while the two foreign women are based in Jaipur, a police officer said.

A team of eight cops from the crime branch led by Pradyuman Singh monitored Gadoli's movements since Friday as he shifted from Bhiwadi to Jaipur and Mumbai.

On Saturday night, he checked into Andheri hotel that opened for business only three months ago. He arrived in his white Scorpio. That was the confirmation the cops needed. "Gadoli checked in as Rishabh Singh. He was allotted a room on the ground floor. Khurana and Deepak were on the first floor. The foreign nationals stayed in a third room," said a police official.

Around 11am on Sunday, three cops parked themselves in a narrow lane where the hotel is located.

"We were concerned Gadoli would try to jump out of the window," said inspector Amit Kauhar of the crime branch. "Five cops went into the hotel. At that point, they weren't aware Khurana and Deepak were there too. Head constable Paramjit Ahlavat knocked on Gadoli's door. When he opened, Gadoli saw the cops and tried to shut it. But the police team pushed their way in. There was an exchange of fire. A bullet grazed Ahlavat's forehead and another hurt constable Vikram Singh on his leg. Gadoli was taken to the Cooper Hospital where he was declared dead around 12.55 pm," Kauhar added.

Mumbai Police was reportedly kept in the dark about the whole operation. Gurgaon Police chief Navdeep Singh Virk told TOI, "It's a great achievement for Gurgaon Police. Our team executed the operation well. The arrested gang members will be produced in court where we will seek transit remand."

Gadoli was wanted in 36 cases of murder, extortion and kidnapping and carried reward of Rs 1.25 lakh on his head. Cases against him date back to 1999 when he was involved in a robbery in Udyog Vihar, but efforts to arrest him were stepped up last year with a Special Investigation Team being formed.

Gadoli had covered his tracks for two years but a lucky break put the police on his trail. Last November, a Haryana resident was arrested in Mumbai for sexually harassing a model at Bandra bandstand. A Mumbai Police team came to Gurgaon to make inquiries. It turned out that the arrested man was Sonu, Gadoli's most trusted aide. Sonu had an "accomplice" who has slipped away. Cops were sure it was Gadoli. TOI had made these revelations in an exclusive report on November 5.

On October 4, Gadoli and his men were accused of killing Ashok, an aide of Gujjar. It triggered a series of street shootings in Gurgaon as the two gangs locked horns, with an aide of Gadoli getting injured and a property dealer believed to be close to Gadoli shot in full public view at a petrol pump the night before Diwali.

Resource: http://timesofindia.indiatimes.com/

Fraud case filed against 'builder baba', realty firm in Noida

NOIDA: A case of fraud has been registered against 'builder baba' Sachin Dutta and seven others for allegedly mortgaging sold flats in an Indirapuram housing society to obtain bank loans.

Dutta was crowned 'mahamandaleshwar', or high priest, earlier this year and christened Sachidanand Giri Maharaj. But he was stripped of the title soon after allegations that he owned a bar at a Noida mall.

Dutta's family also owns Balaji Constructions, the real estate company that has developed Balaji Residency in Indirapuram, which is at the heart of the latest controversy. Dutta had dissociated himself from ownership of the firm when he was elevated to high priest.

Six of the Residency's flat buyers filed a complaint with Noida Police chief Kiran S on Wednesday that officials of a housing finance company had visited them and asked them to repay loans they had never taken. "The officials said they will seize the flats if the loan is not repaid. This is surprising as we had not taken any loan from this company," one of the flat buyers said.

The finance company officials also allegedly told the flat buyers they had received EMIs for a few months but the payments had stopped. The flat buyers said they suspect the developer had forged house documents to procure loans without their knowledge.

Vishwajit Shrivastava, SP (crime) Noida, a case had been registered eight persons, including officials of Balaji Constructions, the housing finance company and Dutta at Sector 58 police station. "We are investigating the matter to join the dots about the alleged illegal transaction," he said.

Balaji Residency is located near Shanti Gopal Hospital and has 95 flats that were developed between 2006 and 2010. A complainant told TOI that he had booked the flat in 2006 and got home loan form a private bank.

Anurag Garg, the complainants' lawyer, said that the matter was reported to police four months ago. Police said they investigated the matter after which an FIR was registered against Dutta and his associates.

Resource: http://realty.economictimes.indiatimes.com

Ashiana Housing, Escapade Real Estate to offer retirement home in Chennai

BSE-listed real estate developer Ashiana Housing Limited has entered into an agreement with Escapade Real Estate Pvt Limited, a joint venture (JV) between Arihant Group and JP Morgan Property Fund, to develop Ashiana Shubham, a senior living home, in Chennai.

The project is expected to come up with an investment of Rs 180-200 crore.

The JV expects revenues of around Rs 350 crore from the project.

Ankur Gupta, joint MD of Ashiana Housing Ltd, said, “We are planning to develop 800 units in Chennai. While we will bring in our expertise in building and managing the project, the land and local support would be from Arihant.”

While Ashiana Housing Ltd will invest in development and marketing of the around One million square feet project comparising primarily of homes for the elderly, residential and various support components, Escapade Real Estate will bring in land as equity to the joint venture.

He said that under the partnership, the company would build and manage the senior living units and has arrived into a revenue sharing model with Escapade Real Estate at the time of sales of the units. E The project is part of Villa Viviana, a 45 acre township in Maraimalai Nagar, in the outskirts of Chennai, near Mahindra World City. The senior living project would be coming up in around 20 acre out of this. The units will be priced within the range of Rs 25-50 lakh and the works are expected to start in by November, this year, he added.

Ashiana has so far completed around three senior living projects in Bhiwadi in Delhi National Capital Region, Jaipur and Lavasa project in Pune. The company, which has

Escapade Real Estate is a 50:50 join venture between Arihant and JP Morgan Property Fund, in which the equity capital is around Rs 50 crore, said Bharat Jain, director, Arihant Foundations & Housing Ltd.

Ashiana Housing, which has clocked in a revenue of Rs 600 crore during the last fiscal, has five projects in the pipeline for launch in this year. Out of this, two projects are in the senior living space, said Gupta. It also has a subsidiary, Ashiana Maintenance Service, to take care of the maintenance of these retirement homes, he added.

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

Kochi emerges top real estate destination among tier II cities

Kochi is now the top real estate destination among Tier-II cities, according to a study.

Nashik is next, followed by Visakhapatnam, Vadodara, Thiruvananthapuram, Jaipur, Mangaluru, Indore, Goa and Coimbatore, says analytics firm PropEquity.

The research was based on prices of property, supply, demand, sales, inventory of unsold houses and implementation delays over the past two years.

Cities in the south dominate the list. There’s only one from the north, Jaipur at number six, in the league. Agra, Lucknow, Bhiwadi and Mohali, all from the north, were the worst performers among the 19 Tier-II cities surveyed.

Kochi, along with Indore, scored high on the volume of sales and number of project launches. Kochi, one of the proposed smart cities, is also home for several emerging software companies, says the study.

While all southern Tier-II cities in this list, except Coimbatore, showed inventory in the range of 15 to 22 months (within the comfortable level of 24 months), Gujarat stood out for several reasons.  For instance, Gandhinagar (capital of Gujarat) experienced the lowest delays in execution of projects, at eight months. This is almost half of the average delay of 15 months of all the Tier-II cities. Also, Vadodara is ahead of all other Tier-II cities in absorption, with an average of 12,500 units or 16 per cent of the overall absorption in Tier-II cities. In contrast, three of the four cities in the north showed a high level of inventory overhang, with the worst performance by Mohali at 50 months.

No city could come on top in more than two advanced parameters. And, most of those doing extremely well on some parameters fared poorly on others. “A case in point is Dehradun, which is top on two and last in the other four. Hence, it has fallen in overall ranking.’’ As an earlier study on Tier-I cities had shown, real estate in the north is marred by project delays, expensive properties and a demand and supply mismatch, PropEquity said. “Although the Tier-II and Tier-III cities have performed better in India, they have been adversely affected in this current slowdown, which has severely impact the Tier-II cities,” said Samir Jasuja, founder and managing director of PropEquity.

The 19 Tier-II cities (consolidated) have annual primary sales of Rs 32,600 crore annually. This is lower than that of Bengaluru ( Rs 36,100 crore) and Mumbai (Rs 34,100 crore).

Overall, the new residential supply in the top 19 Tier-II cities has fallen by 64 per cent in the past two years, as against a fall of 40 per cent in the top 14 Tier-I cities, in the same period. Absorption across these cities fell 17 per cent in the past two years, as against a fall of 32 per cent in the top 14 Tier-I cities in the same period.

As for launch prices of Tier-11 cites, these have increased at an annual nine per cent over two years, compared to 10 per cent for Tier-I cities. The Tier-II markets are seen as end user-driven than investor-driven.

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

Jaypee Infratech promises 5,300 flats in 2 months on Noida-Gr Noida e-way

NEW DELHI: Embattled real estate major Jaypee Infratech Ltd (JIL), a subsidiary of Jaiprakash Associates Ltd (JAL), has completed the construction of 5,300 apartments along the Noida-Greater Noida Expressway and plans to hand over possession in two months.

Between 2008 and 2014, the company launched around 35,000 apartments and plots in the Wish Town along the Expressway. It also has over 10,000 apartments and plots in 'Sports City East' on the Yamuna Expressway, close to Noida.

Out of this, the company officials say possessions of over 2,500 plots have already been given. A company spokesperson said, the letters were being dispatched to customers to take the possession in its projects such as Kalypso, Pavilion Court, Pavilion Height, Town Homes, Wish Town Klassic and Kosmos in Wish Town on the Noida-Greater Noida Expressway.

The company will still have a back log of nearly 27,000 apartments. It has delivered 1,700 plots by 2015. It claims that at least 7,000 more apartments will be handed over in 2016.

JAL has recently put its Bhilai cement plant on the block. It expects to generate Rs 1,200 crore from the sale.

JIL is in talks with several developers to sell a chunk of its over 6,000 acre land bank to reduce the burden of crushing debt. The stretched balance sheet of the company has meant delayed possession of apartments booked nearly 4 years ago.

This has also increased the time for construction of several other projects on the Noida-Greater Noida expressway.

JIL has a debt of around Rs 9,000 crore taken to construct a toll-based 6-lane 165 Km access-controlled expressway, connecting Noida and the tourist town of Agra. The company was allowed to buy land along the expressway to develop them as real estate to cross-subsidize the construction of the expressway.

The company had acquired around 6000 acre of land in 5 parcels, each of around 1200 acres. Besides this, its promoter company JAL acquired 2500 acre of land close to Noida at the end of the Yamuna Expressway to develop the mega Formula One track.

But a sharp slowdown in the real estate sector has put a huge burden on the group, which brought the Formula One race to India by building the swanky new race track.

The hectic pace of expansion meant the company added layers of debt.

With the infrastructure sector facing a cash and demand crunch, the company is finding it difficult to service the debt.

The Yamuna Expressway is also facing its own set of problems. The expected volume of heavy traffic on the expressway did not materialize as the roads which would have connected all the National Highways crossing Delhi and connecting Chandigarh, Dehradun and Jaipur could not be completed.

This has hit toll collection and piled more pressure on the company's balancesheet and triggered talks of plans to sell the expressway.

But a company source ruled out any move to hive-off the expressway. A banker also said that selling the expressway was not being considered. The hiving off of the road project is not possible because of tax and other issues such as mortgage of the land.

Therefore, the company is trying to sell a part of its land holding. The company sold 250 acres of land to developer Gaursons for around Rs 1,250 crore. But they returned 50 acres after contracting to buy 300 acres.

Resource: http://realty.economictimes.indiatimes.com

Varun Gupta, Director, Ashiana Housing Ltd

Varun Gupta, Director, Ashiana Housing Ltd is a Bachelor in Science from Stern School of Business, New York University (USA). He majored in Finance and Management and then joined Citigroup in Commercial Mortgage Backed Securities where he was underwriting commercial real estate. For the last seven years he is with Ashiana.

Ashiana Housing Limited is known for its timely deliveries and unmatched construction quality. Ashiana Housing, a brand synonymous to middle income group housing, has built over 17million sq. ft. of residential and commercial space has done residential projects at Neemrana, Bhiwadi, Jaipur, Jodhpur, Jamshedpur, Lavasa (Pune) and Patna. They are also pioneers in bringing the concept of senior living in India and spreading it to Bhiwadi, Jaipur and Lavasa.

Speaking with Yash Ved and Pooja Paryani of IIFL, Varun Gupta says "We will develop 6 mn sq.ft. and possess 10-12mn sqft of additional saleable area for future projects."

Brief us on your upcoming projects. What is the total area under development? 

We  plan to launch 3-4 residential projects this year. Currently, we are working on a senior living project in Chennai and the first phase of the project will be launched this year. We are also planning to launch Ashiana Aangan in Neemrana, but have not got approval yet.The company has a number of completed projects in residential segment. We will develop 6 mn sqft and we have 10-12mn sqft of additional saleable area for future projects.

Tell us about your agreement with Arihant for senior living project?

We have signed a revenue share development agreement with Arihant for a senior living project in Chennai that we are looking to launch with a saleable area of roughly about 1mn sq.ft.

What is so different about senior living projects as compared to regular housing?

A host of considerations are taken into account when we design houses for senior citizens. We take special care of three to four basic needs of the senior citizen keeping in mind their social requirements. To begin with the design is more senior friendly in terms of grab grills and anti-slip tiling,  Emergency call system, LPG gas detectors, high level of security are the other common features. We also have dining facilities, doctor on call facility, and physiotherapist at site. In short, we take care of Constructive Engagement, Social Needs, Security and Overall wellness. Senior people who live in these specifically designed, maintained and serviced projects enjoy an improved quality of life and perhaps additional years of life on account of these happy and safe surroundings.

Are you looking at developing similar projects in other areas? 

We are planning to launch a project in Chennai once we get the necessary approvals. Our decision to launch such projects will also depend on the overall response and the size of the market in this segment. Moreover, the willingness of people to pay for such projects will also influence our decision. Overall, we remain very excited, particularly about the Chennai project, given the demographics in Chennai.

What is the price range of your  projects?

We cater to the middle class as our overall project range is from Rs.20 lakhs to Rs. 70 lakhs.

Any plans to increase your land bank? 

We plan to double sales and land bank and invest Rs 1,100 crore in land over the next four years.

Resource: http://www.indiainfoline.com

5,000-acre land reserved for airport plan in Jewar in Gr Noida

GREATER NOIDA: Less than a week after CM Akhilesh Yadav wrote to Union minister Mahesh Sharma proposing an international airport in Jewar, Yeida on Monday reserved 5,000 acres land for the project. The proposal was approved in the joint board meeting of the three development authorities on Monday and will now be sent to the state government for final nod.

Sharma earlier this week had said that Yadav has written to him proposing an international airport at Jewar and that he would start the process of clearances for the site once he gets a formal project report from the state.

"As per the first phase of Master Plan 2031, the previous state government had asked to earmark about 2,800 acres land for Jewar airport but the Authority had put aside 5,000 acres. We have now officially reserved 5000 acres for the airport," said Arunvir Singh, CEO, Yeida," he added.

The Yamuna Expressway Authority earmarked about 10,000 hectares of land across 35 villages for the project after it was first proposed in 2001. The site already has in place key NOCs required for construction to begin. The authority has plans to develop industries on parts of land.

Stakeholders seem to be upbeat with the Authority's move and believe the project will drive growth in the Greater Noida-Yamuna Expressway region and also be a shot in the arm for the realty sector. "A new airport in the region will certainly be an economic driver, which will also change the face of real estate industry in the area," said Getamber Anand, president, Credai National and CMD of ATS Infrastructure Ltd.

"The airport will give a boost to the infrastructure facilities and connectivity in the region," said R K Arora, chairperson, Supertech group. "An airport will help the region emerge as an industrial hub besides improving connectivity between four bordering states of UP, Haryana, Rajasthan and Delhi besides attracting foreign investors and impetus to tourism, " said Aditya Ghildiyal, president, Association of Greater Noida Industries.

Resource: http://realty.economictimes.indiatimes.com

For a truly peaceful retired life

Retirement homes' segment might be at a nascent stage in India but with more seniors opening to the idea, developers are coming up with luxurious options.

Take Max India Group's Antara Senior at Dehradun. The cheapest unit costs Rs 1.5 crore and the most expensive goes for Rs 6.6 crore. The annual maintenance charge is between Rs 35,000 and Rs 1 lakh.

Brotin Banerjee, managing director of Tata Housing, feels the market size of retirement homes should be Rs 4,000 crore by 2018. "A significant section of seniors today are financially well-off, independent, well-travelled, with an openness to spend their retirement in a senior living home. Even senior non-resident Indians (NRIs) accustomed to such facilities in developed countries are returning to their city of origin," he said.

After retirement, Ashok Kumar Bahl was looking for a place to reside that was similar to his company's township. The steel company where he'd worked as a deputy general manager had well-maintained houses, greenery, 24-hour security and a clubhouse for employees to socialise.

After living at a few places, the 67-year-old zeroed in on a retirement home close to Delhi. "It's clean, green, has tight security, a team that manages medical emergencies and it's designed especially for seniors. Also, there are daily activities that help in socialising with fellow residents," says Bahl. He has been there for five years and three friends from the steel company have joined him. His son, an Indian Institute of Technology graduate, works in the US and daughter, an MBA from a premier institute, has settled in Bengaluru after marriage.

Increasingly, many retirees and people close to retirement are looking at such residences, designed to meet their needs. Senior living projects are gaining popularity, backed by builders such as Tata Housing, Max Group, Ashiana Housing and the Brigade Group. These projects are targeted at financially well-off and upwardly mobile Indians, who see senior living as an attractive option.

According to a report by Jones Lang LaSalle, the current demand for senior housing in India is about 300,000 units. It is estimated that by 2025, there will be 173 million seniors above the age of 60, from 76 million today. There are 98 million people over 55 years, with steady annual growth of 3.5 per cent.

Facilities

The architecture of these projects takes into account a senior's requirement. Muralidhara CP, AGM - Senior Living Operations at Ashiana Housing, explains: Things are designed keeping the free movement of a wheelchair in mind. The doors are wider and so are the rooms. Switches and bathroom fittings are such that a person on a wheelchair can easily use these. All elevators are broad enough to accommodate stretchers. Other common features include anti-slip flooring and railings for support. All areas from reception to bedroom are flat. Clubhouses and ATMs are close to the homes.

These also have medical assistance available for primary care. If the health issue is bigger, the person is rushed to a nearby hospital. For those who need regular care, say a physiotherapist, these projects tie-up with medical practitioners to provide doorstep service. Tata Housing has tied up with Apollo Healthcare for its Riva Residences, an integrated residential complex in Bengaluru. Max India's group company, Max Healthcare, owns a super-speciality hospital four km from the Antara project.

There might be a mess facility offering customised or home-cooked food daily, in addition to a concierge, housekeeping and laundry services. Indoor games, community hall, library, screening hall for movies, arrangement for visits to art galleries, malls and museums could be other attractions.

Some projects also have an emphasis on activities. Ashiana Housing has a person dedicated for this. These include celebrating festivals, holding game tournaments and other competitions.

Buying and selling

Most retirement homes are sold outright. There are a few rental models, too. In the former, there are two types. First, the units are sold only to those above 55 years; in the second model, anyone may buy.

Ashiana sells to a person of any age but requires only seniors to stay in the houses. To ensure this, it relies on the society (called a social welfare group) formed by the residents. Family members can visit the residents and stay for 60 days in a year. However, if a person below 55 stays for over a week, the security unit reports it to the social welfare group. Antara Senior Living, which sells units only to buyers over 55, allows anyone to stay with the owner as long as they wish. However, when the house goes for resale, the company has the right to select whom the flat will be sold to.

Costs

Most of these projects are currently available on the outskirts of a city, for the peaceful surroundings and availability of large-size lots, plus the prohibitive cost of development in prime locations, say experts. There's a premium on such houses, around three per cent, as these are specially designed. As the market matures, the premium will increase on such houses, says Om Ahuja, chief executive-residential, Brigade Group. That's because some of the components are made to order. For example, the ready-doors that one gets in the market cannot be fitted in such projects, as they are smaller.

The prices typically start at Rs 30 lakh. In Ashiana Housing's Bhiwadi project, where all flats are sold out, rates for a resale are Rs 3,500 to Rs 4,000 a sq ft. A person may choose from one bedroom-hall-kitchen (BHK) measuring 800 sq ft to a 3-BHK of 1,350 sq ft. Brigade Group offers 2-BHKs at Rs 6-7 lakh and 3-BHKs at Rs 75-90 lakh. Antara Senior Living offers apartments from Rs 1.5 crore to Rs 6 crore, for flats between 1,400 and 10,000 sq ft.

The cost for the amenities is typically included as part of the monthly maintenance charges, which are higher than standard residential projects, depending on the sophistication. Ashiana Housing charges Rs 2.1 a sq ft monthly; in Antara Senior Living, this can go up to Rs 1 lakh. There are also paid services. For example, health care charges for Tata Housing's project work out to about Rs 3.5 lakh for a five-year period. In Ashiana Housing projects, there are separate charges for regular doctor service, maid and dining. The health care charges at Tata Housing's Riva project are about Rs 3.5 lakh for a five-year period and the maintenance cost approximately Rs 1.18 lakh for 18 months.

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

Property Prices in Delhi NCR Grow Negligibly in Apr-Jun 2015 over Jan-Mar 2015: 99acres.com

99acres.com Insite is a quarterly report focusing on capital and rental price trends in the residential real estate market across seven major cities of India. According to the report, property prices per sq ft in Delhi NCR witnessed negligible growth amounting one per cent in Apr-Jun 2015 as against Jan-Mar 2015. Rental values recorded an average increase of 5 per cent in the last one year (Apr-Jun 2015 vs. Apr-Jun 2014). An increase of 17 per cent was witnessed in the supply of residential apartments this quarter as against a dip of 16 per cent recorded in quarter ending March 2015. Units configured as 3BHKs continued to be the most supplied ones, followed by 2BHKs.

Major Highlights

Delhi NCR property market continued its snail-paced trajectory from Jan-Mar 2015 to Apr-Jun 2015 with an insignificant growth of 1 per cent in property prices.

While frequent legal conflicts resulted in subdued buyer sentiment, a demand-supply mismatch gave developers a run for their money.

Prices soared despite a huge inventory pile-up of 1.70 lakh units recorded till Apr- Jun 2015.

The expansion of the Delhi metro improved sentiments in certain pockets of the market, impacting the rental values more than capital prices.

As developers focused on offloading unsold inventory, there was a drop in the number of new launches in the region.

The rental market performed better than the capital one due to more office space absorption, particularly in Noida and Gurgaon.

Commenting on the report, Mr Narasimha Jayakumar, Chief Business Officer, 99acres.com, said, Though the market looks grim with snowballing unsold residential inventory, there is an increase in office space absorption by IT/ITeS and ecommerce firms. This is expected to keep the commercial and home rental markets of Noida and Gurgaon upbeat.

Price Trend Analysis: Delhi (Apr-Jun 2015 vs. Jan-Mar 2015)

Delhi witnessed a dip of 2 per cent in Apr-June 2015 as compared to the preceding quarter.

Property prices in South Delhi grew insignificantly, while that in North and West Delhi dropped by 5 per cent and 8 per cent, respectively.

Meanwhile, Dwarka price graph declined by 4 per cent and East Delhi saw a stagnant real estate market.

Mehrauli was the top grosser, witnessing a 7 per cent rise in capital values in Apr-Jun 2015 as against the quarter ending March 2015.

The upmarket neighbourhoods of Greater Kailash I and II clocked a surge of 6 per cent and 4 per cent, respectively, in the quarter ending June in comparison to the previous one.

Rental Analysis: Delhi (Apr-Jun 2015 vs. Apr-Jun 2014)

The rental market of Delhi soared in response to the existing and developing infrastructure and increasing employment opportunities. Rental values in the region surged by an average of 5 per cent in the last one year.

In this zone, East Delhi witnessed the highest growth of 10 per cent between Apr-Jun 2014 and 2015, while values in North Delhi stagnated during the same span. East Delhi was followed by Dwarka with a spike of 6 per cent in rental values. South and West Delhi clocked an increase of 5 and 4 per cent, respectively.

A year-on-year analysis revealed that Jasola in South Delhi recorded over 20 per cent rise in rental values, the highest in the region. This locality has the advantage of a metro station (at a distance of less than two kilometre).

Following Jasola closely was Dwarka Sectors 18 and 19, and Patparganj, each clocking a growth of 18 per cent each.

Price Trend Analysis: Noida and Greater Noida (Apr-Jun 2015 vs. Jan-Mar 2015)

The plethora of proposed social and physical infrastructure propelled real estate sentiments in Greater Noida from stagnancy in the last quarter to a 2 per cent growth in Apr-Jun 2015. However, residential market in Noida maintained its slow growth pace with negligible price hike.

The Noida-Greater Noida Expressway was the frontrunner with 9 per cent spike in real estate prices, with Sector-16 in Greater Noida and Noida Extension following closely with six per cent each.

The Delhi Metro Rail Corporation (DMRC) has mentioned a tentative timeline of 3 years for the metro corridor between Noida and Greater Noida, boosting realty sentiments.

The Supreme Court ruling on Greater Noida land acquisition has cleared the haze of uncertainty for almost 1.5 lakh property buyers. CREDAI has assured the delivery of around 50,000 residential units by the end of 2015.

Rental Analysis: Noida and Greater Noida (Apr-Jun 2015 vs. Apr-Jun 2014)

Boasting of a massive 16 per cent spike in rental prices in the quarter ending June, Greater Noida realty landscape was impacted by the Noida-Greater Noida Metro corridor, the construction work on which commenced in the month of June. The metro link is slated to be operational in 2018.

Rental values in Noida grew to the tune of 4 per cent between Apr-Jun 2014 and 2015. Improving connectivity, coupled with developing entertainment hubs are the prime growth drivers.

Sector Omicron III in Greater Noida and Pari Chowk grabbed the top positions with a yearly rental hike of 17 and 14 per cent respectively, majorly owing to more project deliveries and improving connectivity from Delhi and Noida.

Price Trend Analysis: Ghaziabad (Apr-Jun 2015 vs. Jan-Mar 2015)

Ghaziabad realty landscape saw an uptrend of 2 per cent in Apr- Jun 2015, in comparison to the preceding quarter due to promised infrastructural growth. The city real estate sentiments thrived on the announcement of Rs 1,500 crore for infrastructure development.

The major infra plans include expansion of metro network from Dilshad Garden to New Bus Stand metro and construction of a Northern Peripheral Road spanning 21 km between Tila Mod in Delhi to Dasna Toll Plaza on NH-24. Development of a six-lane Hindon Elevated Road is also on the cards.

National Highway 91 emerged as the highest grosser with 9 per cent spike in property prices since March 2015.

Trans-Hindon localities including Indirapuram, Vaishali and Vasundhara fared among the top grossers in Apr-Jun 2015 compared to the previous quarter owing to connectivity to NH-24 and metro.

Rental Analysis: Ghaziabad (Apr-Jun 2015 vs. Apr-Jun 2014)

An annual analysis revealed that rental values in Ghaziabad rose to the tune of 10 per cent in the quarter ending June, after a 5 per cent rise in Jan-Mar 2015.

Vaishali saw the highest appreciation in the rental graph by 18 per cent from Apr-Jun 2014 to the same quarter this year. The proposal to expand the Vaishali metro link to Mohan Nagar has given a massive fillip to realty sentiments.

The integrated project of Crossing Republik witnessed a hike of 17 per cent in rental values during the same span. In addition to metro connectivity being on the cards, the locality is comparatively more affordable than neighbouring Vaishali and Indirapuram, where rental demand rose by 8 per cent in the last one year.

Price Trend Analysis: Gurgaon, Faridabad, Bhiwadi and Dharuhera (Apr-Jun 2015 vs. Jan-Mar 2015)

Gurgaon and Faridabad saw an uptrend in capital values, albeit an insignificant 1 per cent in Apr-Jun 2015. Homebuyers continued with their wait-and-watch approach, although both cities were frontrunners in the race for the smart city; tag.

Construction of the metro network has given Faridabad a fresh lease of life. Despite being designed in accordance with the Nehruvian vision of a City of Hope;, Faridabad has remained dependent on autos and buses till date. The metro will become the city first transit system.

While Bhiwadi clocked an average rise in capital values to the tune of 3 per cent this quarter, property prices in Dharuhera dipped by 6 per cent. While proximity to Gurgaon is an advantage to both these satellite towns, availability of very few projects in Dharuhera, made demand and hence occupancy levels suffer.

Rental Analysis: Gurgaon, Faridabad, Bhiwadi and Dharuhera (Apr-Jun 2015 vs. Apr-Jun 2014)

Rental demand remained robust in Gurgaon and Faridabad, with prices increasing by 4 per cent, each, in a year time.

The highest grosser in Gurgaon was Sector 67 where values rose by 20 per cent in Apr-Jun 2015 as compared to the same quarter last year, followed by Sectors 69 and 59 where rentals increased by 17 per cent, each.

Sector 86 in Faridabad witnessed rental values escalating by 14 per cent during the same span. Housing demand in this industrial township is being fuelled by expansion of the DMRC line.

In addition to capital values, Alwar Bypass Road in Bhiwadi saw rental yields rising to the tune of 17 per cent. The rental market of the region is primarily propelled by the workforce in Gurgaon.

Supply Analysis (Apr-Jun 2015 vs. Jan-Mar 2015)

Availability of Different Property Types: While residential apartments grabbed the maximum share of residential inventory in Noida, Greater Noida and Gurgaon; builder floors continued to be the most supplied units in Delhi and Ghaziabad.

Availability of Property by Budget: Properties priced within Rs 40 lakh captured more than a quarter of the total inventory in Delhi NCR. This was followed by properties budgeted between Rs 60 lakh and 1 crore.

BHK-wise Distribution of Property: The 3BHK category continued to be the most supplied one in Delhi NCR, with Gurgaon having the maximum supply of such units, followed by Noida and Ghaziabad.

Ready to Move vs. Under-construction: More than 60 per cent of Delhi NCR inventory fell in the ready-to-move-in category. Almost three-fourth of the inventory in Noida, Greater Noida, Bhiwadi and Dharuhera continued to be under-construction due to long delays in project deliveries. The National Green Tribunal (NGT) ban on construction of houses within a radius of 10 km from the Okhla Bird Sanctuary delayed many projects in Noida and Greater Noida.

Link to report- http://www.99acres.com/articles/delhi-insite-report-apr-jun-2015.html

About 99acres.com:

Launched by Info Edge India Ltd. in September 2005, 99acres.com is a gateway to one of the fastest growing property markets of the world, an information exchange for buying, renting and selling of all types of residential and commercial properties anywhere in India. The website enables easy access to a huge property bank and allows direct connect with brokers/builders in cities as well as remote parts of the country. With over 9 million visitors visiting the website every month looking for real estate solutions, 99acres.com has over 8.5 lakh residential and commercial property listings and over 1 lakh new projects. Not only this, it has the highest traffic share, making it the most popular real estate portal in the country. Backed by a strong team and a network across 40 cities in India, 99acres.com has garnered faith and support of the real estate community in India within a very short time span.

Resource: http://www.financialexpress.com

Ten cities to shop for budget real estate in India

India’s cities draw the most housing demand for reasons like better job opportunities, living standards and infrastructure.
However, rapid urbanisation and development of these cities into mega-cities have given rise to challenges such as pollution, traffic issues, high property prices, etc.
The government’s initiative to provide ‘Housing for All by 2022’ is being pursued laboriously. The simple motive is to provide affordable homes within the price budget of up to Rs 25 lakh. This vision must necessarily encompass the smaller cities near the bustling cities of India.
Though affordability is a relative term, it is pertinent to look destinations where residential properties within the budget range of Rs 30-50 lakh are available, and are classified either emerging or growing submarkets supported by good infrastructural development. These towns and cities offer a wide spectrum of investable options in real estate with relatively lower price levels, providing the incentives for future capital appreciation and healthy returns.
Here are 10 cities that offer great lower-budget real estate investment prospects over mid- to long-term.

Resource: http://indianexpress.com

Why these 9 North Indian cities are good real estate investment bets

Despite the real estate sector going through a rough patch for almost an year, it still makes sense to invest in properties which promise a long-term return.

“The global share markets are quite volatile, and despite India’s positive mid-to-long term economic outlook, it is not untouched by these choppy waters. A lot of hard-won investor wealth has been eroded in the recent past.  In these uncertain market conditions, it makes sense to regenerate one’s faith in real estate investments which can fortify and enhance capital,”  says Ashwinder Raj Singh, CEO – residential services, JLL India.

Investors can reap in impressive rewards if they choose a good destination along with a reliable developer after a good research on the city and its market.

Shortlisting and selecting a property is a one time process, but considered to be a time-consuming exercise. The city one should invest in should be identified through its economic drivers.

With the help of real estate players, we identify nine cities in North India that are great investment options due to their locations, infrastructure, healthy investment climate for industrial and related activities, and are affordable too.

Affordability quotient plays an important role in investor’s decision and is a major catalyst in driving realty demand.

Experts, however, put a word of caution before investing in these five cities. “It is important for the investor to choose the right asset class, partnering with the right developer, making sure projects have obtained approvals, economic pull factors which will drive future growth in a location, return expectations in terms of rentals and capital appreciation – and, very importantly – the right investment horizon, ” Santhosh Kumar, CEO – operations & international director, JLL India.

Santosh lists Gurgaon, Noida, Jaipur, Neemrana and Lucknow as best cities to invest in North India as he believes most of these cities are witnessing good development, investment in infrastructure, and have a good existing or developing economic base which is or will attract more people, thus driving the need  for real estate. Jaipur and Lucknow are capital cities and enjoy good investments into infrastructure by the state governments, while also enjoying good connectivity and have seen healthy investor participation, albeit largely in the residential sector.

Infrastructure makes a city worth investing and also drives the real estate growth. Vikas Malpani, co-founder, Commonfloor finds Bhiwadi, Jaipur, Ghaziabad, Delhi (L-zone) and Faridabad as good investment picks in North India as infrastructure is one of the major factors that is driving real estate growth in most of the mentioned cities.

Malpani adds Delhi Mumbai Industrial Corridor (DMIC) passes through various existing industrial clusters and towns and cities that are likely to become investment hubs. Bhiwadi, Ghaziabad and Jaipur are seeing the impact of this corridor. Moreover, all the identified cities are also witnessing the impact of the industrial development in and around the regions. Additionally, property prices in these cities are relatively affordable.

He identifies prime factors that make Bhiwadi and Jaipur worth considering for investment. “Bhiwadi, an emerging industrial and real estate hub adjoining Gurgaon is well connected with highways such as NH-8 and NH-71B. The proposed Neemrana airport in the vicinity is expected to give a boost to the realty sector. Moreover, it falls along the Delhi-Mumbai Industrial Corridor, which makes it a promising destination for property investment. Unparalleled connectivity and round-the-clock infrastructure development are two parameters of growth in the Jaipur. The advent of the metro and the ‘Smart City’ label has added to its advantage.”

The proposed Metro connectivity with other parts of NCR and two industrial zones in and around the area are expected to give a major push to the realty sector in Ghaziabad in the coming months. L-Zone in Delhi is situated in a strategic location in the south west of Delhi with close proximity to Dwarka, Gurgaon and IGI Airport. Low land prices and DDA’s Land Pooling policy are expected to be the major growth drivers of this region. Realistic property values, good connectivity coupled with upcoming infra upgrades, has put Faridabad as the next hotspot in NCR. It enjoys connectivity to other cities such as Mathura, Palwal and Agra via NH-2.

All these cities offer several real estate options to invest in. What is needed is a well-timed and properly researched real estate investment for good returns and avoid a bad decision. Thus, it is crucial for buyers to check past record of developer, get the property papers verified by a legal expert and compare prices with other builders’s properties to make an informed and sound decision.

Resource: http://www.financialexpress.com

Bhiwadi: A rising star in NCR real estate

Bhiwadi is located is the Alwar district of Rajasthan, and is an emerging industrial destination in the NCR region. Located at just 40 km from Gurgaon, Bhiwadi is witnessing a shift from its erstwhile image as a mere industrial area to destination with full-fledged real estate viability. Being a part of the Delhi-Mumbai Industrial Corridor (DMIC), Bhiwadi is now an acknowledged as an investment zone. Still primarily driven by its industrial sector, Bhiwadi encompasses the manufacturing centres of Chopanki, Khushkhera and Sare Khurd. There is a massive amount of additional industrial development activity planned by The Rajasthan State Industrial Development and Investment Corporation (RIICO). Advantageously located along the borders of Rajasthan and Haryana, Bhiwadi has been seeing improving connectivity with Delhi and Gurgaon, which has reflected favourably on its realty market. Due to the relatively cost-effective land prices, growing housing demand and excellent connectivity afforded by the Delhi-Jaipur National highway (NH-8), there has been a spurt in new residential housing projects catering primarily to the people employed in this industrial belt as well as for people looking for reasonably-priced properties around established centres of Gurgaon and Delhi. As a result, Bhiwadi has attracted the attention of various reputed developers primarily offering affordable housing projects, with only a scattering of luxury projects. The average ticket size for apartments in Bhiwadi is between Rs. 2400-3500/sq.ft, and the annualized appreciation to the tune of 5-10%, which is consistent with the overall market dynamics of NCR. Apart from rapid residential development, Bhiwadi is also witnessing growth in retail and office spaces. For instance, Bhagat Singh Colony – the prime residential area of Bhiwadi – is also turning into a retail and commercial nerve centre. V Square Mall, located on Bhiwadi-Alwar Highway, is a multiplex-cum-shopping mall in the city. The mall-cum-office complex Sky View Tower, BB Mall and Ganapati Plaza are upcoming developments on the retail real estate front in this region. Realising the potential of this corridor, government is working towards improving the social and civic infrastructure. Bhiwadi’s infrastructure is improving rapidly, with various projects on the anvil. The proposed Bullet train and Metro connectivity will further enhance Bhiwadi’s real estate investment attractiveness quotient. As a result, Bhiwadi is firmly on property investors’ radar.

Resource: http://www.moneycontrol.com

Ashiana Housing inks JV for realty project, eyes Rs 300 crore sale

NEW DELHI: Realty firm Ashiana Housing has tied up with a local builder in Jaipur for the development of a new housing project with an estimated sales realisation of over Rs 300 crore.

Ashiana Housing, which focuses on development of housing projects for senior citizens, would construct about 650 flats in this project near Jaipur City, sources said.

The local developer would provide land for the project.

Ashiana Housing could generate over Rs 300 crore of sales from this project based on the current market price, they added.

The project is expected to be launched by end of this year after obtaining necessary approvals.

Ashiana Housing said in a regulatory filing that it has "entered into a development agreement, for development of regular group housing project on piece of land measuring 8.838 acres situated at village Keshopura, Ajmer Road, Tehsil Sanganer, Jaipur (Rajasthan)."

The entire project will have a total saleable area of about 9 lakh sq ft.

This would be the company's eighth project in Jaipur.

Ashiana Housing had last year raised Rs 200 crore from global investors Goldman Sachs and Creador through its qualified institutional placement (QIP) issue.

Last year, the company tied up with Bengaluru-based Shriram Properties to develop a housing project in Kolkata.

With skyrocketing land prices, many real estate companies, including Tata Housing and Godrej Properties, are partnering with the land owners or small local builders to develop projects.

Delhi-based Ashiana Housing focuses on the development of homes for senior citizens. It has projects in Jaipur, Bhiwadi, Sohna-Gurgaon, Neemrana, Chennai, Kolkata and Jamshedpur.

That apart, it is developing houses in Lavasa township project.

Resource: http://realty.economictimes.indiatimes.com

Widening of NH-24: The highway to affordable housing

Connectivity and infrastructure development are the two most critical elements needed for the development and evolution of a real estate destination. If construction of the Yamuna Expressway saw realtors moving to develop residential housing and townships, developers in the Delhi-NCR region feel that the construction of the Delhi-Meerut Expressway, recently launched by the Prime Minister Narendra Modi, will not only improve the connectivity of various towns in the region with Delhi, but will also change the dynamics of the real estate market in the zone.

Developers and real estate experts told The Indian Express that the NH-24 Expressway may emerge as a hub for affordable housing and could offer solutions for accommodation in the 1-2 BHK category within the price range of Rs 15 lakh-Rs

30 lakh.

Manoj Gaur, managing director, Gaursons India and president of Credai-NCR, pointed that it is a long stretch and the development around the highway was stuck because of heavily clogged roads. He added that the widening of the road would not only ease the traffic and reduce travel time but would also result in development of residential housing along the road.

“I think that this has the potential for development till Hapur-Pilkhua and it will be one of the most preferable stretches because of its approach and access to Delhi-NCR,” said Gaur. However, he added that while there has been a slowdown in sales across Delhi-NCR, there is demand in the affordable housing category and developers should ensure that they cater to the demand of that segment. “I see development of affordable housing around this road going forward,” he said.

Importance of NH-24

Among the several highways/expressways that connect Delhi to cities — Meerut & Hapur (NH-24), Jaipur (NH-8), Panipat (NH-1) and Agra (Yamuna Expressway and NH-2) — NH-24 is probably the most densely populated, as there are several small cities along the corridor. Providing access to Ghaziabad, Noida and Greater Noida, the road, once fully developed, will connect up to Meerut and Hapur and is set to be a very busy stretch. Therefore, widening of the expressway will only act as a catalyst for real estate demand and development on both sides of the road in the future.

Rami Kaushal, head of consulting and valuations at CBRE said that while decongestion of the roads will help the existing cities such as Noida, Greater Noida and Ghaziabad, it will also help in decongestion of Delhi.

“All the cities leading up to Hapur will become more accessible and habitable. Since a lot of manpower comes from adjoining cities, lack of good connectivity forces them to stay in NCR only. However, once this expressway is built and there is good public transportation available, a lot of these people will live in their home towns or in the new destinations that develop around the road and can commute to Delhi for work,” said Kaushal.

There are others who agree to this fact. Gulam Zia, executive director at Knight Frank said that it is a long highway and passes through dense localities. “By declogging, it will provide a new lease of life to all real estate destinations along the road. The widening of road will also result into realignment as the travel time will reduce significantly and therefore will allow people to move away from the cities,” said Zia.

Activity and impact on pricing

While it is too early for things to kick-start, existing projects around the proposed road have received a shot in their arm. Gaur said that his existing projects around the road in Noida Extension and in Crossing Republic will benefit as the connectivity will improve. While he said that he would look to take up new projects on the proposed expressway, he said that he would take up the phase II of his project in Crossings Republic.

Aman Agarwal, director, KV Developers also did not rule out the possibility of land purchase and development of residential housing project on the stretch. Stating that the activity will pick up over the next two years, he said, “Most of the activity will be in the affordable housing category and there will be a number of projects offering 1 and 2 bhk flats in the price range of Rs 15 lakh and Rs 30 lakh,” said Agarwal. While aspiration for better housing is growing, the need for better livelihood will see fresh demand in the affordable housing segment.

While prices in the Delhi NCR market is currently impacted by high unsold inventory, the market has not seen any uptick in prices over the last couple of years. In fact, the prices have witnessed some correction. Experts say that fresh supply on NH-24 in the coming years may keep the prices under check even in the existing markets of Noida, Greater Noida and Ghaziabad.

“Over the last couple of years the prices in Noida and Greater Noida have been stable because of huge supplies. With more supplies, the prices may remain under check in these existing markets,” said Zia.

Even Kaushal said that the prices in these areas may not rise in a hurry and there will be stability in prices across these markets.

While it is almost certain that the development of the expressway will add a new dimension to the real estate market in Delhi NCR and help decongest Delhi by development of affordable housing in the proposed expressway, the planners will have to be thoughtful and ensure that better connectivity is complemented with a stable public transportation system so that residents have multiple options to reach their work places in Delhi NCR.

Resource: http://indianexpress.com

Ten cities to shop for budget real estate in India

India’s cities draw the most housing demand for reasons like better job opportunities, living standards and infrastructure.

However, rapid urbanisation and development of these cities into mega-cities have given rise to challenges such as pollution, traffic issues, high property prices, etc.

The government’s initiative to provide ‘Housing for All by 2022’ is being pursued laboriously. The simple motive is to provide affordable homes within the price budget of up to Rs 25 lakh. This vision must necessarily encompass the smaller cities near the bustling cities of India.

Though affordability is a relative term, it is pertinent to look destinations where residential properties within the budget range of Rs 30-50 lakh are available, and are classified either emerging or growing submarkets supported by good infrastructural development. These towns and cities offer a wide spectrum of investable options in real estate with relatively lower price levels, providing the incentives for future capital appreciation and healthy returns.

Here are 10 cities that offer great lower-budget real estate investment prospects over mid- to long-term.

Hyderabad, Telangana

After a prolonged slump due to the global recession followed by political turmoil, Hyderabad’s realty market is now once again set for an upswing. Hyderabad, with its buoyant and thriving economy and a dynamic workforce, is once again trending as a buyer’s market. The IT/ITeS industry has given further impetus to the real estate consumer trend, which is evident from the growing demand for residential, commercial and retail spaces.

Pune, Maharashtra

The perfect blend of Pune’s manufacturing and services sectors makes the city a standalone economic powerhouse in all respects, with a rate of job generation that is hard to match. The city has witnessed steady appreciation over the last few years, and is ranked as one of the best markets for real estate investment.

The luxury homes segment has been burgeoning on the Pune’s real estate market, with many large players entering with excellent luxurious projects. However, Pune is now witnessing a slight shift in the development trend. Many new players on Pune’s burgeoning real estate market can be seen venturing into the affordable housing segment. This is obviously the segment where the greatest demand lies.

Navi Mumbai, Maharashtra

Over the last few years, the real estate market in Navi Mumbai and surrounding areas have shown impressive growth, largely because of the planned approach taken towards development. Now, with Navi Mumbai receiving final nod for the International Airport, its property market and that of the surrounding areas have been showing great potential. While property prices have increasingly become unaffordable in Mumbai, Navi Mumbai still provides numerous options for residential housing within the budget of Rs 30-50 lakh.

Jaipur, Rajasthan

Emerging out of its image of being a majorly tourism-led economy; Jaipur has grown beyond everyone’s expectation to become one of the top global outsourcing cities in India. The upcoming IT Parks promise a great future across all real estate asset classes. The 250-kilometer stretch between Delhi and Jaipur has become a hotbed for real estate development, with areas like Manesar, Dharuhera, Bhiwadi, Neemrana, Kotputli and Alwar becoming the new catchwords for investors.

Surat, Gujarat

Surat, known as the diamond capital of the world, is a well-developed metropolis in Gujarat. Rated as one of the fastest growing cities of the world and also recently conferred with ‘Best Urban City of India’ award, Surat has also gained prominence and recognition for being the Cleanest City in India by INTACH. Rapidly improving infrastructure initiatives have helped modernise Surat significantly.

Ghaziabad, NCR

Ghaziabad is an emerging residential neighbourhood of NCR which has a very high supply of residential properties in the budget of Rs 30-50 lakh. Well connected via Metro and roads to the job markets of Delhi-NCR, the city caters largely to the mid-segment home buyers. The city has a high supply of ready-to-move-in properties offered by renowned developers. Some of the well-established residential clusters in Ghaziabad that have gain prominence in the recent time include Indirapuram, Kaushambi and Vaishali.

Nagpur, Maharashtra

Although a city with extreme climatic conditions, Nagpur is one of the fastest-growing cities in India. Nagpur’s main claims to fame include its MIHAN and SEZ projects. However, with the Devendra Fadnavis-led BJP government taking keen interest in turning Nagpur into the next IT hub of Maharashtra, the city is set for a major transition in its real estate profile. The already-established MIDC corridor along with the upcoming IT parks have made Nagpur one of the cities that bear close watching by real estate investors.

Kochi, Kerala

Kochi is a metropolis in the making where modern urban lifestyles are settling into antiquated old traditions. During the days of its realty boom, Kochi grew exponentially, with more people migrating to the city and consuming even the outlying catchments of Palarivattom, Vytilla, Kakkanad, Edappally and Kadavanthra. Development of IT/ITeS projects such as the Kochi Smart City and initiatives to channelise traffic and improve connectivity, such as the Mobility Hub at Vytilla, have fuelled significantly increased demand for real estate, which more and more developers are cashing in on.

Coimbatore, Tamil Nadu

Coimbatore is the major industrial centre in Tamil Nadu after Chennai — and as incentives are given to IT companies by the Tamil Nadu government, Coimbatore has gained momentum as a preferred destination for IT/ITeS. With the government in power promoting the city by enhancing infrastructure development, Coimbatore’s property market has witnessed an upward push in demand for residential units in the core areas of the city such as R S Puram, Avinashi Road and Race Course, which are considered posh areas. Nevertheless, it has no shortage of affordable housing options.

Coimbatore is a market where 40 per cent of real estate investments come from investors living in cities such as Bengaluru, Cochin and Chennai. Apart from the demand from professionals engaged in IT/ITeS, Coimbatore is emerging as a retirement destination, and demand for 2 BHK homes is high from senior citizens. Demand for smaller apartments is primarily from young IT professionals, while villas and row houses see demand from NRIs, retirees and IT professionals with a preference for such properties.

Ahmedabad, Gujarat

Ahmedabad may be the last one in the list, but it is in no way the least. With the city being a prime example of organised and fast-paced development for the rest of the cities in India, Ahmedabad has come a long way. With huge investments pouring into the state, rapid infrastructural development in the form of bullet trains, GIFT Smart City, the entrepreneurial nature of the population and a supportive, stable government, everything is going right for Ahmedabad. The oil, gas and energy industries, petro-chemical industries and automobile manufacturing industries are some of the major factors driving perennial demand for real estate in the city.

Resource: http://indianexpress.com

Bhiwadi set to house second airport in Delhi NCR, not Jewar

New Delhi: Bhiwadi in Rajasthan is likely to have the second airport in the National Capital Region of Delhi, following the civil aviation ministry's approval to the project on Thursday.

The erstwhile Mayawati government in Uttar Pradesh had proposed an airport in Jewar in Greater Noida, which was also seconded by the ruling Samajwadi party government in Uttar Pradesh. 

According to The Economic Times report, the project will require waiver of the clause that bars an airport to come up within 150 km radius of the existing Delhi airport, which has been built and is being operated by GMR Infrastructure-led consortium Delhi International Airport Ltd (DIAL). 

The report quoting a senior ministry official said the government will provide all approvals required for the airport project. As per the norms, GMR Infrastructure will have the right of first refusal for the Bhiwadi project, the official said. 

The Bengaluru-based company will be asked to match the lowest bid arrived at after the bidding process for the proposed airport. The airport in Bhiwadi, which will be developed by the Delhi-Mumbai Industrial Corridor (DMIC), has been approved after a detailed study of traffic projections for the Delhi airport, the report said. 

The existing airport will achieve 100 million capacity between 2021 and 2023, thereby reaching saturation point, they said. 

Resource: http://zeenews.india.com

Bhiwadi pips Jewar to house second airport in Delhi NCR

The project will require waiver of the clause that bars an airport to come up within 150 km radius of the existing Delhi airport, which has been built and is being operated by GMR Infrastructure-led consortium Delhi International Airport Ltd (DIAL).

"We will provide all approvals required for the airport project," said a senior ministry official, who did not want to be identified. As per the norms, GMR Infrastructure will have the right of first refusal for the Bhiwadi project, the official said.

The Bengaluru-based company will be asked to match the lowest bid arrived at after the bidding process for the proposed airport. The airport in Bhiwadi, which will be developed by the Delhi-Mumbai Industrial Corridor (DMIC), has been approved after a detailed study of traffic projections for the Delhi airport, officials said.

The existing airport will achieve 100 million capacity between 2021 and 2023, thereby reaching saturation point, they said.

"If you want a second airport by then, we need to start now," said the official. Analysts, however, said that it makes more sense to have an airport in the Noida region than to have it in Bhiwadi.

"The government will have to resolve a lot of issues and take the operator of the current Delhi airport on board to ensure that the project sees the light of the day," said Sanjay Sethi, managing director and CEO of Nestor Consulting, an infrastructure advisory firm.

The official cited earlier said that the Samajwadi Party government in Uttar Pradesh has not given the goahead to the Jewar airport project, which was originally conceived and proposed by the erstwhile Mayawatiled Bahujan Samaj Party government.

The then United Progressive Alliance government at the Centre had formed a group of ministers to decide on the issue, while the Mayawati government had acquired over 2,000 acres for the proposed airport.

"While Rajasthan was on board for the airport in Bhiwadi, the UP government has not yet approved the project. It can, however, be looked at in the future," said the official.

Nestor Consulting's Sethi said that the government should focus more on clearing pending projects in the country instead of announcing new projects.

"It is good that the government is announcing new projects but the government should also work towards expediting projects like Navi Mumbai that are stuck for so long now and require immediate attention," he said.

Resource: http://articles.economictimes.indiatimes.com

Greening Begins at Home

When structural engineer Jignesh Goyani started developing his affordable housing project, Kesar City, at Moriaya village in Sanand - the satellite town on the outskirts of Ahmedabad - three years ago, he decided to go all green. While the apartments are small - at 33 sq metres - with the cheapest costing as little as Rs 5.4 lakh, the project is equipped with the whole 'sustainable' shebang: lighting controls, form construction, sun-dried fly ash bricks, sewage treatment plant, optimal daylight use and solar for street and common lighting, low-flow faucets and fixtures, biogas from sewage and daily green waste, and green landscapes irrigated by porous pipes. Kesar is as kosher as any high-end green building.

Developed in collaboration with Ahmedabad-based firms Aroma Realty and Kesar Buildcon - all working in the affordable housing niche using low-cost green technologies - the first lot of 1,200 homes is now being handed over to their owners. And who are they? Popcorn sellers, tea vendors, restaurant waiters and money transfer kiosk operators, among others, most of whom earn between Rs 330 and Rs 1,000 a day. "Almost all our customers are from the unorganised market," says Goyani.

Housing for this segment does not find it easy to get bank finance; hence the project developers had no option but to keep costs to the minimum - even for sustainable technologies. That meant doing without green building certification by the Indian Green Building Council's (IGBC) rating standard, which would have ratcheted up the project cost by another Rs 25 lakh. "Anything that adds to the cost of these homes, including certification, is not for us," says Goyani. He is certain that, had he applied, the project would have easily made the cut for IGBC's silver certification, if not gold. "About 80 per cent of our design and technology solutions beat the parameters prescribed by any green rating standard," he says.

Instead, Goyani is working with Excellence in Design for Greater Efficiencies (EDGE) software, a low-cost green building certification system developed for 100 emerging economies by the International Finance Corporation. Based on a mind-boggling database of local utility costs and climate in different cities, this free software suggests customised resource-efficient solutions right at the design stage to reduce operational expenses and environmental impact. In order to qualify for the EDGE certification, a building must achieve at least 20 per cent saving in energy, water and construction resources over conventional practices. Kesar City is also on the shortlist of pilot projects the National Housing Bank is assessing for technical assistance under the UK government's Department of International Development (DFID) funding for innovative pilot projects.

Goyani's project underscores how the once-elitist market for green buildings - those which make efficient use of energy, water and construction material - is percolating down to the very lowest. A green building movement is under way in the country. Until recently, it mostly meant designing high-end commercial and corporate office spaces, or building energy-efficient hospitals and hotels, in tier II towns at best. There were also the bespoke residences of select affluent and niche clientele.

Green Rush

Driven by cost savings for home owners, and responding to the incentives offered by state governments, an increasing number of developers are greening their residential portfolio. Features like rainwater harvesting, outdoor window shades, energy-efficient electrical fixtures and waste treatment plants are helping economise resource consumption. Even existing home owners are opting for retrofits as a smart investment option. "It is not enough to ascertain how structurally sound a building is; it is also important to see how well it will perform," says Aalok Deshmukh, energy efficiency expert, Schneider Electric India.

Low-cost green housing projects need to be rolled out quickly in high volumes with minimal design typologies to be feasible. Residential developers such as Tata Housing Development Co and Value Budget Housing Corporation, whose raison d'être is large-scale housing, are thus developing a green template for all their standard offerings, which can be scaled up in little time. Other developers like Lotus Green and Biodiversity Conservation India Ltd (BCIL) - also known as the ZED Group for its zero-energy driven solutions - have got into realty to focus primarily on green development.

Importantly, with the real estate sector facing recessionary pressure and unsold inventories piling up in recent months, the business case for developing differentiated projects by building green is stronger than ever before. Developers have realised that green certification helps attract more customers and investors. Godrej Properties, Raheja Developers, the Hiranandani group, Ansal Properties, MARG group, SARE Homes, Emaar MGF and Gaursons India are only some of the prominent players building certified green homes in recent years.

"Over the last year or so, realtors have grown to understand the importance of sustainable development," says Brotin Banerjee, Managing Director and CEO of Tata Housing Development Co. The company has 6.5 million square metres of housing in different stages of execution in all consumer segments, from value to luxury, all of which will be certified green. All the company's housing projects have no less than IGBC's gold certification. Value and Budget Housing Corporation (VBHC) is developing over 3,000 EDGE-certified homes across Bangalore, Chennai, Mumbai and Bhiwadi. Almost all its houses are in the affordable segment, predominantly comprising apartments priced between Rs 15 lakh and Rs 30 lakh. SARE Homes is developing six projects adding up to 5,000 homes across Amritsar, Ghaziabad, Gurgaon and Chennai.

"The green building movement is well entrenched and people are set to demand energy efficient buildings the same way they demand star-rated air-conditioners," says P. Sahel, Vice Chairman, Lotus Greens. The company is developing four projects in Gurgaon and Noida over the next three years, all of which will have a Green Rating for Integrated Habitat Assessment (GRIHA) certification (an alternative to IGBC). BCIL, an early green builder with a presence in Bangalore, Mysore and Chennai - all of whose projects since 2003 have platinum certification - is currently building 2,000 green certified apartments and villas. Around 40 per cent of BCIL's homes are priced under Rs 15 lakh and another 50 per cent in the Rs 30 lakh- 50 lakh segment. Only the remaining 10 per cent is priced between Rs 50 lakh and Rs 80 lakh.

All of Gaursons India's residential projects over the last three years have been in the certified green category. The company is aiming for IGBC's gold certification for three of its upcoming projects on Delhi's outskirts - Gaurcity I, Gaurcity II and Gaur Yamuna City. Managing Director Manoj Gaur heads the Delhi-NCR chapter of the Confederation of Real Estate Developers Association of India (CREDAI). "More than half the 200-plus members of the Delhi-NCR chapter are now developing green projects," he says.

Green Ramp-up

India had only around 1,850 sq metres of certified commercial green floor space in 2001, which rose to 22 million sq metres by 2008. The first residential green rating standard was launched in May that year. Seven years later, India has around 325 million sq metres of registered green floor space, both pre-certified and certified, across all categories - commercial, residential, hospitals, hotels and factories. Real estate consultancy Jones Lang LaSalle said in a report in July that projects registered with the IGBC have grown incrementally at a compound annual growth rate of over 50 per cent in the past 10 years - the highest year-on-year growth anywhere in the world. In July, the US Green Building Council ranked India third on its annual ranking of the Top 10 countries outside the US that are making significant strides in sustainable building design, construction and transformation - next only to Canada and China.

Deshmukh of Schneider India goes on to say, "The single largest certified green floor space outside the US would be in India." Chandrashekar Hariharan, Chairman, BCIL, and co-author of IGBC's residential green guidelines, agrees. "In a decade's time, we are set to outstrip the US, currently the world's largest green market," he adds.

The potential is indeed enormous. Green floor space accounts for only 3-5 per cent of all construction in India so far. In developed markets like the UK, where green building began almost two decades ago, around 40 per cent of all buildings would fall in that category. "In the US, it would be around 30 per cent," says Prashant Kapoor, IFC Green Buildings' specialist and founder of EDGE. By 2030, green building penetration in India is expected to reach 10 per cent or around 1.5 billion sq metres.

Mandatory Compliance Awaited

Green building construction and certification is growing at a scorching pace, despite the fact that it has not yet been fully mandated by legislation. The Bureau of Energy Efficiency, an arm of the Ministry of Power, announced the Energy Conservation Building Code (ECBC) in May 2007. The Code mandates certain minimum energy performance standards for buildings and recommends many more. (For example, it prescribes that 20 per cent of all hot water requirement is to be met by solar energy.) But, it is still largely voluntary and applies only to commercial buildings, not residential ones.

The responsibility for enforcing it rests with state governments and local urban bodies, which do not have the wherewithal for implementation. "State governments also have the flexibility to modify the code to suit local or regional needs and notify it," says Sanjay Seth, energy economist at the BEE. Once the notification for the mandatory adoption of the code is in place, the provisions have to be integrated into the municipal by-laws to enable enforcement.

Seven states and one union territory - Pondicherry - have notified the ECBC so far: Rajasthan, Odisha, Uttarakhand, Punjab, Andhra Pradesh, Telangana and Karnataka. Another 23 states and union territories are at various stages of implementing it, which will take mandatory compliance almost countrywide. "Most states are expected to come up with the statutory regulation by end-2015," says Seth. The national implementation of ECBC is expected to transform the market through enforced demand.

But, in the meantime, some of the other states and urban development bodies have begun offering myriad incentives. Haryana, Punjab, West Bengal, Maharashtra and parts of Uttar Pradesh (the development authorities of Noida, Greater Noida and the Yamuna Expressway), allow an additional 5 per cent floor area ratio (FAR - a measure of the built-up area of a plot) for buildings certified green. The development authorities of Ghaziabad and Delhi have proposed the same. Kerala and Bhubaneswar city also allow some extra FAR in green buildings. West Bengal has even announced raising the FAR to 10 per cent. Gujarat, Andhra Pradesh, Telangana, Chhattisgarh and Jharkhand are considering providing a similar carrot.

Among other incentives are fast-tracked construction permits for green buildings being offered by Andhra Pradesh and Maharashtra. Maharashtra also has an energy efficiency financing programme, providing credit guarantee for half the green project cost. Buildings using solar or wind power are allowed to be built higher than their conventional counterparts in Pune. Punjab has mandated that every roof measuring more than 465 square metres should be used for solar energy generation. Gujarat, Tamil Nadu and Karnataka, too, are considering some stimulus for residential solar. The Department of Renewable Energy in Haryana bears 50 per cent of energy audit costs.

The Pimpri-Chinchwad Municipal Corporation in Maharashtra offers a rebate of up to 15 per cent on property tax for green buildings, and up to 50 per cent on premium for builders who get their projects GRIHA-certified. The urban local bodies of Nashik and Navi Mumbai in Maharashtra, and Noida in UP, have proposed property tax discounts based on the level of green certification achieved. Hyderabad has suggested monetary incentives for architects designing GRIHA-rated green buildings. Punjab is developing a draft adaptation of ECBC even for large residential buildings.

Buildings guzzle more than a third of the country's energy resources at present. Savings on green buildings can be a staggering 25-30 per cent from day one. As Schneider India's Deshmukh says, "When done right, or when incorporated at the design stage, there is no additional cost of building green." In fact, a green building pays for itself through the savings accruing from energy efficiency, and premium developers can charge on such construction. Given that floor space will triple by 2030, the case for driving resource efficiency couldn't be more compelling. According to one estimate, mandatory ECBC implementation across the country could lead to an annual energy saving of about 1.7 billion kWh. At the very least, this means an annual saving of Rs 600 crore in energy cost. A McKinsey India report has projected that by 2030, India could save an estimated Rs 90,000 crore ($14 billion) per year by investing in energy efficiency.

Building activity is relatively low in developed markets where most of the infrastructure is already in place. India has seen only one-third of its built space come up yet. According to global think tank Global Buildings Performance Network, the energy demand from building in India will grow by 70 per cent by 2050, for which an estimated 900 new power stations fired by fossil fuels will be required. Going green couldn't have been a bigger and more pressing opportunity.

Resource: http://www.businesstoday.in