Saturday, May 28, 2011

Premium apartments sell more in Delhi


Delhi realty sector registered an average appreciation of 6 per cent in the premium apartment category during the Jan-Mar 2011 period as compared to the Oct-Dec 2010 period.

Areas such as Anand Vihar in East Delhi and Janak Puri in West Delhi noted highest escalation of 12 per cent in the premium apartment values during the same period.

This was followed by other areas such as Preet Vihar, Kingsway Camp, Narela, Patparganj, Dwarka, South Estension, Greater Kailash and Mayur Vihar with a 8-10 per cent growth in values. According to Raj Kumar, city realtor and investor, “premium apartments were in demand with a number of transactions happening during the previous quarter.”

Premium apartments and builder floors in West, East and North Delhi gained more attention and seemed affordable due to the high values of the premium homes in South and Central Delhi.

There was a surge in demand for the premium segment in the Delhi realty market. Influenced by the concept of luxury living, most of the end-users preferred ready-to-move-in premium apartments over old re-sale properties.

By and large new properties which are well-connected and offer the requisite amenities fetched more demand and transactions than the re-sale market. According to city realtors, most of the small and medium builders of the city are buying old properties and converting them into premium houses and then selling them. It is a most profitable venture and both the builder and seller are making profit out of it.

Source:- Magicbrics

Record Rental Deal in Mumbai: Sahara Group May Pay Rs, 70crore Annual Rent

The residential property market may be stagnant, but the demand for office space is still strong if a lease transaction in Bandra-Kurla Complex (BKC) is any indication. The deal, touted as the highest ever for a commercial property in terms of annual rent, will fetch the owner, Parinee Developers, almost Rs 70 crore a year from the Sahara Group. The agreement is expected to be sealed by next week. According to real estate sources, the UP-based Sahara Group will take over 2.5 lakh sq ft spaces in Parinee Cresenzo, a 20-storey commercial project by Parinee Developers, co-owners of the Kochi Tuskers IPL team. The two parties reportedly negotiated the deal for a lease amount of Rs 225 a sq ft, which works out to an annual rent of close to Rs 70 crore. “A few buildings in BKC command over Rs 375/sq ft. However, the Parinee-Sahara deal is the highest in terms of the total annual rent,said a property tracker.

Indian Realty News, May 17th, 2011

G Noida Authority To Rework Land Buyouts

The Greater Noida Authority has said that it would undertake fresh land acquisition and was ready to increase compensation to farmers after the Allahabad High Court cancelled its earlier acquisition of 160 acres in the Noida Extension area. Farmers from Shahberi village in Gautam Budh Nagar had moved the court seeking cancellation of the authority’s acquisition. The authority now says it will sweeten the deal to accelerate the process of acquisition while removing uncertainty over housing projects being implemented in the area. Mr Rama Raman, CEO of Greater Noida authority, said negotiations had started with the farmers to acquire land afresh and a policy is likely to be unveiled, raising the compensation substantially from the present level of Rs 850 per sq metre., May 20th, 2011

Monday, May 23, 2011

Funding child education: Take loan for tax benefits

While everybody wants their child to have a good education, Indian parents are especially intent on achieving this goal. So focused are they that they are willing to scrounge on basic indulgences to save for their kids' college fees.

The problem is that in their efforts to fulfil the needs of the child, they sometimes sacrifice more than they should. They dip into their retirement funds to pay for the education. This is a dangerous strategy because it leaves them financially vulnerable in their sunset years.

We all know that the cost of higher education is rising at a fast pace. Unless you foresaw this trend 10-12 years ago and started investing aggressively for this goal, your savings alone might not be enough to fund your child's higher education.

Instead of withdrawing from your Provident Fund or PPF, it's better to bridge the gap with an education loan. It is not only tax-efficient, but helps inculcate financial discipline in the child by making him responsible in his early working years.

It may be argued that taking a loan in these times of high interest rates is not a prudent strategy. You will be paying 12-14% on the loan, while your investments earn only 8-8.5%. However, keep in mind that any loan taken to pay for the education of your child is eligible for income tax benefits.

Under Section 80E, the entire interest paid on the loan is eligible for tax deduction. The savings in tax can drastically bring down the effective cost of the loan (see table).

The higher the taxable income of the individual, the bigger the tax benefit. For someone in the highest 30.9% tax bracket, a loan taken at 12% per annum effectively costs 8.71% a year. This is very cheap considering today's regime of high interest rates, wherein personal loans are available at 18-20%.

Also, unlike a home loan, where the tax deduction for self-occupied houses is limited to Rs 1.5 lakh in a year, there is no limit to the tax deduction on an education loan. However, keep in mind that most lenders don't give education loans of more than Rs 10 lakh, so a limit is set by default.

An education loan will also help in making your child financially responsible in his early working years. Education loans usually come with an EMI holiday and the repayment can be deferred for up to 1-2 year till the student has taken a job. In the initial years, when the financial responsibilities are few, young people tend to be extravagant.


Source:-Economics Times
23 May, 2011

Realty adds 1 Lakh Cr to Delhi's GDP in FY11

NEW DELHI: Real estate services added over 1 lakh crore to Delhi's GDP of 2.58 lakh crore in 2010-11, emerging as top contributors to the city's economy and reflecting the rapid growth and buoyancy in the sector.

The real estate sector, which includes property brokers, home buyers, land owners, property owners and housing finance institutions, contributed 39.69% to the gross state domestic product (GSDP) of the city at current prices, according to latest Delhi Government statistics.

The contribution of the sector has gone up to 1.02 lakh crore in 2010-11 compared to 35,885 crore in 2004-05, registering annual compound growth of 19.16% in the last six years.

According to global real estate consultant Jones Lang LaSalle, the sector will witness further growth with most companies operating in the city firming up expansion plans or executing real estate growth plans with upswing in the economy.

Reflecting the buoyancy in the sector, it said overall Delhi and National Capital Region witnessed a net absorption of 1.63 million sq ft of property space (151,755 square metre) in first quarter of the year. The significant performance by the sector has largely been attributed to increased demand for commercial property by companies for office space and business activities leading to robust rental growth.

"The sector has potential to grow further provided the city government and the Centre relax certain norms for use of land for property development," said Pradeep Jain, chairman of Confederation of Real Estate Developers' Association of India (CREDAI).

As per Delhi government data, the contribution of the tertiary sector comprising hotels, restaurants, banking, insurance, legal services, real estate at current prices was 2.12 lakh crore in 2010-11, which is 82.27% of the GSDP.

Source:- Economics times

Land Registry Cost 20 Per Cent Up In Chandigarh

Cost of property registration is set to go up in Chandigarh. The UT estate office has begun finalizing a plan to hike collector's rate. A 20 per cent rise in the rate is being contemplated. With the collector's rate a benchmark for sale and purchase of property, the hike would boost property rates, besides resulting in more revenue for the UT by way of stamp duty. Spadework has been undertaken by a committee constituted in this connection. A final report will be submitted in the last week of May before it is forwarded to the finance department for approval. 'Real estate prices in Chandigarh are already very high and a break in annual revision of the index leads to revenue loss to the state exchequer,' said an official.

May 11th 2011, realtyplusmag

Saturday, May 21, 2011

HUDCO Plans To Sanction Rs 25,000 Crore For New Projects

Public sector lender Housing and Urban Development Corporation (HUDCO) has announced plans to sanction loans worth Rs 25,000 crore and disburse around Rs 8,000 crore in FY12. HUDCO finances housing and urban infrastructure development programmes in the country. It provides long-term finance for construction of houses in urban and rural areas and also to set up new or satellite towns.

May 9th 2011 Indiarealtynews

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 Mr Rajendra Khetawat, vice-president at Godrej Properties.Prices in most Mumbai areas have surged by 40 per cent in the past year, and the average per sq ft price in the Mumbai.Metropolitan Region (MMR) is estimated at Rs 9,300 per per square."The situation in the National Capital Region is similar and prices both cities could see a price correction of anywhere between 20 per cent to 35 per cent," said Mr 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.

May 9th 2011 Indiarealtynews

Tenant Will Now Be Exempted From Being Evicted For 5 Years: SC

The Supreme Court today said the landlord cannot evict tenant for at least five years if he is paid rent regularly as per the agreement between the parties. If present and prevalent market rent assessed and fixed between the parties is paid by the tenant, then the landlord shall not be entitled to take any action for his eviction against such a tenant for at least for a period of 5 years, a bench of justices Dalveer Bhandari and Deepak Verma said.

May 15 2011, Hindustan Times

Uncertainty Over 10,000 Flats

The fate of nearly 10,000 houses in Noida Extension hangs in the balance, after the Allahabad High Court's decision to set aside the acquisition of over 150 hectares of land in Chak Shahberi village by the Greater Noida Industrial Development Authority (GNIDA). Key real estate players have started construction activities. Those who booked flats with Amrapali builders are the worst hit. Under the name of `Smart City', Amrapali has planned 5,700 units on 41 acres of land. Of them, 4,000 have already been sold. Mr Mohit Gupta, marketing director of Amrapali, said, "Meetings are being held with GNIDA officials. Our construction had just begun. We have decided to shift the project to Dream Valley, in tech zone IV sector off the Greater Noida Expressway."Independent villas built across five acres by Mahagun Builders' - the Myra wing - stand on an area whose acquisition has been set aside by the court. Contrary to the promise of industrial development, the GNIDA planned to use the land for multi-storey residences to be developed by builders on relaxed conditions, the court said.

May 14th 2011, Hindustantimes

Friday, May 20, 2011

Faridabad – Investor driven property market

Faridabad – a district in South East Haryana in Northern India – is one of the major industrial hubs of the country. Sharing its boundaries with Haryana, Uttar Pradesh and the Union Territory of Delhi, Faridabad is strategically located, benefiting from developments in all these regions.

Unlike other areas in the National Capital Region (NCR), one finds stable property market in the residential sector of Faridabad. Buyers are attracted to lesser unit values with the region recording a reasonable business in sale/purchase segment in residential property during the last quarter.

What are people looking at while making these purchases? According to local brokers, investors/buyers are eyeing projects which offer a gamut of the latest facilities such as basement parking areas, swimming pools, gymnasiums, parks, play areas and commercial complexes. An analysis of buyer behavior shows that people are more interested in acquiring properties for investment rather than renting the same.

Capital values of apartments saw a 10-13 per cent growth in areas such as sectors 45, 46, 55 and Nehar Par during the Jan-Mar 2011 period compared to the Oct-Dec 2010 period. Capital values of plots too registered a 15-20 per cent appreciation in values during the same period. However, rental values of apartments did not undergo any change.

There are other classes of residential buyers who are opting for plots and villas in Faridabad as opposed to builder apartments. According to a survey, the cost of an average multistorey apartment in Neharpar has either remained same or appreciated marginally between Dec 2010 and
Feb 2011. The capital value in Sector 87 has witnessed an upward trend; in Green Valley, where apartments are ready for possession, the value of
2 BHK apartments appreciated by about 6 per cent in some instances, over the same quarter.  More recently, apartment values in the premium segment in Nehar Par recorded 13 per cent between Jan-Mar 2011, with the launch of premium apartments by leading developers such as BPTP Limited. Omaxe Limited, Era Limited etc.

Thanks to all these trends, the prices of residential properties in Faridabad are increasing in the range of 5 to 15 per cent. To cater to a growing demand, quite a few residential/commercial projects are coming up in several areas including Nehar Par, Green Field, Charmood Village, Suraj Kund Road and NH-2. As of now, Charmwood, Green Valley and Green Field are ready for occupancy. Most projects in the Neharpar area are scheduled to be delivered by 2012 but many are already delayed.

Areas which have been losing out due to poor infrastructure facilities are expected to gain ground as the infrastructure improves. With the Noida to Faridabad highway and metro connectivity till Ballabgarh already on, and infrastructure projects under the Jawaharlal Nehru National Urban renewal Mission underway, the Faridabad realty market can be expected to perform better, if projects are fast-tracked. As of now, people making purchases are mostly investors who have set their sights on future gains.

Source:- Magicbrics

Thursday, May 19, 2011

Balanced Growth Expected in Indirapuram

Indirapuram is one of the prime residential regions in Ghaziabad located along the NH-24. It enjoys the advantage of proximity to both Delhi & Noida which has acted as a catalyst in the development of the region. In the recent times Indirapuram has become one of the favorite reality hot spots in the NCR (National Capital Region).

Indirapuram has a mix of both affordable as well as premium residential options. A large number of private developers such as Ashiana Builders Private Limited, Amrapali Group, Krishna Apra Group, Jaipuria Group, Aggarwal Group, SVP Group, Expressway Builders Limited etc have come up with multistorey apartments. Over a period of time these projects have registered good absorption rates and appreciation in values.

Some of the under-construction projects such as Divyansh Pratham, Gulmohur Residency, Desire Residency etc, are expected to give possession of the projects from year ending 2012 to 2014.

As per market sources, ready-to-move-in property commands premium values vis-à-vis the under-construction properties in the area. Capital values of ready-to-move-in properties are available between Rs 3,500-5,000 per sq ft. On the other hand, capital value of the under-construction projects is approximately between Rs 2,200 to 3,200 per sq ft.

However, as understood from various realtors and other market sources, projects located in Indirapuram have registered stable values in the last three months as compared to property price trends witnessed in July-Dec 2010. Reasons for stable values are multiple increase of interest rates and the upward movement of capital values witnessed during 2010.

Yet, in the long run this locality is expected to reap good returns due to the proposed infrastructure connectivity. The NH 24, which is currently a four lane highway, is proposed to be built as an eight lane highway, along with the enhancement of metro connectivity once the Vaishali & Kaushambhi metro station becomes operational.

Source  Magicbrics

Wednesday, May 18, 2011

Golf Course Road – An upmarket destination in Gurgaon


Golf Course road comes to mind instantly when we talk about a prime location in Gurgaon. Golf Course Road has gained the reputation of providing some of the finest projects with prominent builders of the likes of DLF, Emaar MGF, Unitech Group, Ansal API, BPTP Ltd, and many more having their presence in this area.

The surprising fact is that it is not only the high income group (HIG) who are investing in this locality the middle income group (MIG) too, have bought apartments here. The reasons for this are the presence of a good social network and location advantage. The ongoing value of apartments in this locality is between Rs 8,000 and 10,000 per sq ft.

Vijay Agnihotri of Ankit Real Estate said that the main reason for high demand in this locality is that it provides a buyer the comfort of being within the Gurgaon limits and also close to all facilities - hospitals, schools and malls. “It is an ideal experience for a buyer to have everything within easy distance and Golf Course Road provides that.”

As for rental values, the range is between Rs 40,000 to 50,000 for a 2 BHK. Rental values in this locality have witnessed a steep increase owing to demand for rental housing as many people are looking for comfort of living when they migrate to Gurgaon for jobs.

Source:- Magicbricks

Thursday, May 12, 2011

Delhi Govt Earns 30 Per Cent More Property Tax

The Municipal Corporation of Delhi (MCD) has collected close to 30 per cent property tax in 2011 as compared to the last year. Overall, MCD collected over Rs 1,500 crores, including Rs 728 crores in transfer duty, during the financial year 2010-11. MCD officials attribute the sharp rise to the increase in the transfer duty and the increase in the number of taxpayers. Last year, MCD collected just close to Rs 1,158 crores as property tax, including Rs 460 crores as transfer duty. "This year, close to 10.35 lakh people have paid their property tax -an increase of 5.5 per cent," said Mr Ved Prakash Gupta, chairman, high-powered tax committee, MCD.

April 29th 2011, delhiscoop

Tuesday, May 10, 2011

Builders Want Regulators For Steel And Cement Industries

The Builders Association of India (BAI) has called for creation of a Steel Regulatory Authority and a Cement Regulatory Authority,
 two new regulatory bodies for steel and cement sectors on the lines of SEBI, IRDA and TRAI, pointing to the alleged cartelisation
of cement and steel manufacturers. In a resolution passed, the BAI has said that manufacturers of major construction materials like
cement and steel started jacking up prices by indulging in unfair trade practice. Under free economy, consolidation of cement and
steel industry gathered momentum resulting in unfair monopolistic trade practices which are detrimental to the construction industry,
 said Mr Cherian Varkey, President, BAI.

May 3rd 2011, realtyplusmag

SBI Drops Prepayment Charges on Home Loans

Banking leader State Bank of India dropped ‘prepayment charges on all its loans over the past fortnight.
The announcement coincided with the hiking of the bank’s base rate and withdrawal of the controversial
 teaser home loan schemes. With the SBI taking the lead, other banks are now expected to follow suit and
 withdraw the controversial penalty in the days to come. Most banks and home finance institutions charge a
 prepayment penalty in the range of 1 per cent to 2 per cent in the event of a customer opting to close the
 home loan prematurely. Public sector banks generally charge about 1 per cent or less of the loan outstanding
 as prepayment penalty, while it can be anywhere between 1-3 per cent in private banks. In many cases, banks
do not charge any prepayment penalty if you prepay using your own sources.

May 2nd 2011, Indian Realty News

Land Records Go Online In Haryana

Haryana entire land revenue record would be linked through satellite under National Land Record Modernisation Programme (NLRMP.
This ambitious programme has been implemented by Union Ministry of Rural Development and is being implemented in Haryana through
Haryana Space Application Centre. The main server for the programme would be installed at the district headquarter as well as state
headquarter in Chandigarh from where the concerned officers would be able to assess the present status of the land in the district by
sitting at a single place.

April 29th 2011, realtymag

Saturday, May 7, 2011

Auto, home loans to cost more as banks hike lending rates

MUMBAI: Country's largest private sector lender ICICI Bank and five state-owned banks on Friday raised their lending rates by about 50 basis points each, making auto, home and other loans expensive. 

Union Bank of India , Indian Overseas Bank , United Bank of India , Andhra Bank and State Bank of Bikaner and Jaipur are the public sector banks that raised interest rates today. 

The decision of the banks to raise the interest rates comes within days of the Reserve Bank increasing short term lending (repo) and borrowing (reverse repo) rates by 50 bps, with an aim to calm down inflation, which has hovered above the government's comfort level. 

Several other banks including Punjab National Bank ,Canara Bank , Bank of Baroda and Indian Bank have already increased their interest rates. 

ICICI Bank today raised its base rate by 50 bps to 9.25 per cent and Benchmark Prime Lending Rate (BPLR) to 18 per cent. The new rates will come into effect from tomorrow, it said. 

Hike in lending rates will increase the cost of credit for new borrowers and the existing ones who had obtained loans on floating interest rate. 

According to ICICI Bank, the floating reference rate, on the basis of which interest rates are determined for existing borrowers, will now be 15 per cent. The decision, the bank said, will not impact the customers who had obtained loans on fixed interest rate. 

Post the hike, the base rate of Union Bank of India, Indian Overseas Bank, United Bank of India, Andhra Bank now stands at 10 per cent. The base rate of State Bank of Bikaner and Jaipur now stands at 9.25 per cent. Besides, the BPLR of all banks except ICICI Bank now stands at 14.25 per cent. 

The Base Rate system replaced the BPLR system from July 1, 2010. However, BPLR is applicable for old customers who took loans earlier. The higher lending rates would make loans dearer for both new and existing auto, home and corporate borrowers. 

Banks have been on a rate hike spree since the Reserve Bank's decision to raise short-term key rates including the repo and reverse repo by 50 basis points in its Annual Credit Policy on May 3. The repo rate and reverse repo rate now stand at 7.25 and 6.25 basis points, respectively. 

Besides, the banking regulator also upped the savings bank deposit interest rate to 4 per cent from 3.5 per cent.

Source: Economics Times