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
23 May, 2011

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

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

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 Magicbricks.com 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