Authorities to spend Rs 20,000 crore on Noida projects

Delhi/NCR

The Noida, Greater Noida and Yamuna Expressway authorities on Monday have planned for large scale infrastructure development across Gautam Budh Nagar district. In a joint board meeting, the major focus of the Authorities remained on providing connectivity within the district as well as with Delhi. “In the next four years, Rs 20,000 crore will be spent on the projects,” said Mohinder Singh, chairman of the Authorities.

To begin with, the authorities have approved a major detailed extension of the Metro route connecting almost all of Noida and Greater Noida at a cost of Rs 10,000 crores, covering a total of 86 km. The route is estimated to be ready in the next three years.

Besides extending the existing city centre Metro route connecting Kalindi Kunj and Botanical Garden, a new line from the City Centre station in sector 32 to sector 62, touching NH-24, was also approved. This new 6-km route will be via sector 71 crossing and will provide connectivity to sectors 32, 34, 35, Hoshiarpur, sectors 51, 52, 71, Greater Noida Extension Marg, Sarfabad, sectors 60, 61, 62, 63 and NH 24.

A new loop from sector 71 via sector 121 will then join the Greater Noida route between the City Centre and Bodaki railway station in Greater Noida. This route will be from City Centre along the Greater Noida Expressway, touching Knowledge Park 4 via Pari Chowk and will finally end at Bodaki. The new loop has been added mainly to connect Noida extension that falls near sector 121 with Noida as well as with Greater Noida.

“With the Metro extension, most sectors will be within walking distance from the stations. Connectivity to Greater Noida will also improve tremendously,” Singh said.

To smoothen chaotic traffic, the Noida Authority has approved construction of a 5.8 km elevated road parallel to the Shahdara drain. Starting from sectors 14 and 14 A onto sector 95 and Kalindi Kunj, the stretch costing Rs 525 crores will be of four lanes. This route will provide an alternate route between Kalindi Kunj and Noida, thus easing traffic congestion on the expressway.

In the meeting, the Authorities also approved the draft master plan for Greater Noida. As per the 2031 Master Plan, a total of 5,04,000 hectares will be developed. Of this, 27.6 per cent area will be reserved for residential development, while 24.2 per cent will be developed as green area. The approved master plan includes six expressways, overbridges, flyovers, warehouses and godowns, besides several residential, educational, industrial and commercial hubs.

According to the Authority chairperson, development of these 5,04,000 hectares is crucial as it falls between two major hubs of commercial activity, the eastern freight corridor between Ludhiana and Kolkata and the western freight corridor between Dadri and Mumbai.

Source:- Magicbricks

New Act to regulate rental market

NEW DELHI: The housing ministry has introduced the Modal Residential Tenancy Act, 2011 with the intention of that to renew the ancient rent control legislation that restricts to rentals at some extent, and that affects to landlord in the form of meager amount for properties located in the crucial part of the metro cities.
As state government yet haven’t approved the draft legislation which proposed that once the law in place, in case of tenancies mentioned after notification, the rental will be based on the treaty of landlord and tenant.
According to this act not only the existing ones but also for those where the rent has been already fixed number of years ago, there will be no changes in the rental deed till the 24 months get completed. Only after the completion of the 22nd month proprietor can make changes in the agreement. On the other hand if there is no agreement the landlord has an option to terminate the tenancy. As state government has implemented the obligation that only that state can get facility of this act which is funding under the flagship Rajiv Awas Yojana that has a budgetary allocation of over Rs 800 crore in 2011-12 and comes with other benefits such as interest relief.
As Central government believes that the contemporary legal system has not facilitate to landlords in any form as the current rentals are very low, so they don’t have interest to reinvest in their properties. According to the reports there is lack of housing in the country approx 25 million, so government believes that if rentals are increased then landowners could take interest in realty investment. And it may help to come out of this crisis.
The government is taking inspiration from the Jawaharlal Nehru Urban Renewal Mission that got several states to repeal the Urban Land Ceiling and Regulation Act (ULCRA). Under the scheme, central assistance was contingent upon states repealing the law.
There are several other clauses to keep safe the interest of tenants. As landlord has to be given notice to tenant before increasing rentals. On the other side if revised rent is not affordable to tenant then he has to provid the termination notice.

Posted: 31 May 2011 06:08 AM PDT

Noida-Greater Noida Expressway- Corridor to growth and connectivity

Delhi/NCR

Noida (New Okhla Industrial Development Authority) has evolved as a planned, integrated, industrial hub and is well connected with other parts of Delhi/NCR via roads, highways, expressways and the metro line. The infrastructural developments and high connectivity provided by the 8-lane DND flyover and the Noida- Greater Noida Expressway are major reasons of growth for the Noida real estate.

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The upcoming residential development along the Noida Expressway, covering sectors 93A, 93 B, 119, 128, 129, 134, 137 etc is emerging as a lucrative real estate corridor in Noida. Major developers with residential developments on the Expressway are Jaypee Greens, 3Cs Group, Logix Group, Omaxe Pvt Ltd, Eldeco, Parsvnath Developers, ATS Group, Supertech Ltd, Paramount Group etc.

The residential market in this stretch can be divided into two parts. The first wherein the existing residential sectors viz. sectors 44, 93, 93A, 93B and 119 offer high-end premium segment apartments in a range of INR 4,800–8,500 per sq ft. The second, where construction activity is in full swing, offering affordable and medium projects in the range of INR 3,000–5,000 per sq ft, depending on the area, developer profile, specifications and amenities/facilities offered.

The expansion of resident population along the expressway further generates demand for related commercial office spaces and retail centres, which is presently lacking and is restricted in supply with the authority. According to market survey, Corporates in the domain of IT/ITeS have started scouting for office space in this region and to cater to this opportunity developers such as Supertech, BPTP and 3Cs are coming up with commercial projects.

As per market sources, developments like Export Promotion Zone, Taj International Hub Airport, the Formula 1 Grand Prix race etc will further open doors of all-round progress in this neighbourhood. Also, with the coming up of the Yamuna Expressway easy accessibility towards Aligarh, Mathura and Agra will be provided and it will accelerate overall development of the region.

Source:- Magicbricks

Premium apartments sell more in Delhi

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.

Groundtruth.com, May 20th, 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