Monthly Archives: April 2010

Wonder of Connectivity

April 18, 2010 – 8:58 am

Express way - Greater NOIDA

Development of new connectivity can add immense value to an area. It not only provides opportunity to the developers to do more business but it also provides new options to end users. Best of all, it helps in containing the price rise of real estate in the main districts of a town.

The newly built bridge over Hindon river near sectors 121 and 119 in noida has reduced the distance of Greater Noida Sectors 1 and 4 from main noida to almost half. Because of the bridge, noida’s connectivity has improved so much that the new area is termed as noida extension. Since then a number of developers in the area have launched apartments in the price range of Rs 9 lakh for 1BHK apartment to Rs 15 lakh for a 2BHK and Rs18 lakh for 3 BHK.

The distance of sector 1 and sector 4 of greator noida, where a number of townships are being developed, has reduced to about 11km from main market place, sector 18 in noida, because of the bridge. Earlier, the distance from sector 18 to the place was around 18km. The distance from main commercial centers like sectors 61 and sectors 62 too has come down to around 8km from the earlier 14km.

The new bridge has also added value to Crossings Republik, a township on around 350 acres of land being developed by a consortium of around 10 developers. In this township, a number of projects are near completion and possessions are likely to be given to the buyers in the next couple of months.

Before the construction of this bridge, one had to travel to reach areas via NH 24. Not only is the distance via NH 24 longer, but NH 24 also remains congested most of the time, and as a result homebuyers were reluctant to purchase these apartments in these areas.

The National Highway Authority of India (NHAI) is planning to expand NH 24 to six lanes, which will further improve the connectivity to the trans- Hindon area. But the implementation will take time.

The new bridge on Hindon has come up on a 130 meter-wide connectivity road from South Delhi via a bridge over Yamuna at Kalindi Kunj.

If this road is completed and NH 24 is six laned, the connectivity to this whole area to delhi and Ghaziabad will further improve. The Crossings Republik, which is also just across the river, will be hugely benefited because  of this new connectivity.

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RBI Increases Loans On Realty

April 16, 2010 – 8:01 am

Reserve Bank of India, Kolkata

The Reserve Bank of India has asked banks to set aside more pelf for loans to realty projects which may eventually make borrowing more costly for builders. An increase in capital requirement will force banks to hike the rate of interest on such loans.

SA Bhat, chairman and managing director of Indian Overseas Bank gave his perception saying “If RBI does not raise cash reserve ratio and keep signalling rates undisturbed, my feeling is that it may strictly check the prudential norms. A hike in risk weight, particularly on real estate loans, is not ruled out.” According to the latest available data, banks exposure to commercial real estate is approximately Rs 88,581 cr.

The money that is kept aside to calculate adequacy ratio is called the Risk Weight which is 9% for all banks. Banks have to set aside less capital for borrowers with higher credit rating. For a triple A clients, the risk weight is 20%, which means banks have set aside Rs 1.80 of its own capital for every Rs 100 loan to such borrowers.

The risk weight for realty sector companies is 100%,  that is Rs 9 have to be kept aside for every Rs 100 loan to builders. This may increase to 125 percent or even 150 percent in the policy that are yet to come. To help builders and banks cope with the crises, RBI had lowered it to 100% from 150% during the decline.

As said by Hemindra Hazari, head of research Karvy Stock Broking said “Government and banks released real estate companies by financing them. Prices did not come off significantly because the growth in the realty sector was higher than the overall credit growth.Revival in the sector has landed in hike in the realty prices and now RBI may need to make an effort to lower down prices.”

Unlike personal loans, which increase only 0.7% as banks slowed down when customers began to default, they continued lending to builders. It was not justified since it meant financing a high risk sector.This did not dropped the realty prices to the extent that it actually should.Some bankers think that RBI may raise standard provisioning on commercial real estate loan, which is now at 1%. It is the money that banks set aside from their earnings on standard loans to protect their books if the borrower defaults.

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Brokers Turning into Consultants

April 13, 2010 – 8:27 am


Orlando 08 nickgigante.jpg
April 13, 2010

In order to face the competition from foreign rivals, the local brokers plan to renovate their image by turning themselves from brokers to consultants. To give a tough competition and appear professional, their idea is to transform their appearance. Laptop in hand, Necktie, some executive finesse and changed destination might assist the task of refurbishing the image.

Mr. Vibhoo Mehra,a broker from the western suburbs protested that they should not be addressed as real estate brokers. It sounds very downmarket. They should rather be called realtors or consultants. Even a conference took place on this concern which was attended by around 600 real estate agents.

Brokers must look professional and presentable is the belief of some panelists at the conference organized by the National Association of Realtors India (NAR).

NAR treasurer Kalpesh Shah said that not just the outlook will be changed; rather they want brokers to be well informed about their projects too. It will gain the attention of buyers. He also informed that the international broking firms are posing a threat to local brokers since they have started biting a chunkier share of the day-to-day brokerage pie.

City builders like Sunil Mantri, Niranjan Hiranandani and Pravin Doshi were also seen in the conference.

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Jaypee Greens Launches Kingswood Oriental Project

April 13, 2010 – 8:23 am

Jaypee Greens

Kingswood Oriental, a new project launched by Jaypee Greens, has got attestation from oriental architecture.

Jaypee Greens in Noida is introducing a new product at Jaypee Greens Wish Town,Noida that will be called “Kingswood Oriental”. This construction will consists of independent residential villas extravagant view of golf greens on one side and a chip & putt golf course on the other.

The built up area is approx 3,700 sq ft and 4,600 sq ft.The suggested price of these exclusive homes starts from Rs 3 cr at a basic selling price of Rs 8,100 sq ft where each villa will have three floors.

Community special features

Kingswood Oriental is planned to be a separate community within Wish Town and admittance will be restricted only to the buyers and their guest. It also offers Multicoloured Oriental style wall paintings in common areas like social clubs,etc

Home features

To match the compatibility with oriental feel use of wood and bamboo is made in Private lily ponds in each home Provision for elevators in each home Jacuzzi in the master bathroom Miniature gazebo in the back garden of the house Terrace garden with barbeque Top-of-the-line security system featuring videophones and burglar sensors

Oriental clubhouse

Especially designed clubhouse which has been designed using essence from the Southeast Asian architecture, takes approximately 60,000 sq ft of built up area Wellness zone with state-of-the-art gymnasium and fitness centre;yoga,aerobics areas accompanied with Multi-cuisine restaurant Exclusive members lounge area Party halls & gardens

Range of sports facilities

Apart from all the world’s luxury Jaypee also provides yours residence with sports facilities. Tennis courts Squash Swimming pool Pool/snooker Library. The Kingswood Oriental residences will be a perfect accordance of luxury lifestyle with a touch of oriental architecture, combined with the latest technology for leisurely life.
you should prefer  Wish Town because of its location that is close to the Noida-Greater Noida expressway.Also,it is just 10 minutes drive from Ashram Chowk and it is marked to have Metro connectivity in the near future.

Jaypee Greens in Greater Noida bagged the Best Golf Development-India from CNBC Asia Pacific Property Awards in 2008.

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Vision India Arrives IN Chennai

April 10, 2010 – 3:20 pm

survivors

A business group in the US named Vision India Real Estate is bankrolling a sum total of $5 million in an upcoming residential project in Chennai. The project belongs to Gem Group. This is the first time that the US Company is going for a joint development project. It is proposing an investment of $100 to $200 million (approx. Rs 920 crore) in the coming 3 years.

The company delegates was studying the market for previous 24 months and the entered India 2 years ago.

The company is in colaboration with Chennai-based Gem Group to build a Rs 320-crore project at Padur on Old Mahabalipuram Road. The company is thinking upon to develop logistics parks in Bangalore and Chennai, which will be spread over 47 acres each.

A special purpose vehicle has been floated for the purpose. The plan is proposed in such a manner that the Vision India would develop the residential projects on the land provided by Gem Group.

The concerned authorities said, “We have also initiated talks with retail houses, automobile majors, pharma companies and others”. Vision India Realty is a unified property development and asset management group that manages and also develops the hospitality residential facilities in India. It will also invest in some other projects as well.

Over the upcoming three years, Vision India Real Estate is planning to invest $100 to $200 million, as told by Mr Elad to ET. The company has set a target of $500-700 million (Rs 2,300-3,220 crore) turnover in the next three years.

Since the Chennai Market is much more stable than other cities therefore the initial focus will be on this for housing projects. It will touch the hospitality sector in the next year.

The progress reports by Ilan Elad say that about 40 million sq ft has been developed which includes about 5 million sq ft towards hospitality and about 15 million sq ft has been for residential segment.

A project called Gem Grove is planned to be built on 6.64 acres of land at Padur on the Old Mahabalipuram Road in Chennai. The project is a residential project of about 320 cr. It will accommodate 712 housing units covering a built-up area of approximately 8 lakh sq ft.

The chairperson of Gem Group R Veeramani complemented the decision to partner with Vision India saying that it is to tap their excellence in developing such projects in the US and Europe.
The projects by Gem Group are marketed by Homebay, starting at Rs 2,399 per sq ft.

It will set its 3 blocks ready for  occupancy by July 2012 with the remaining three blocks ready by May 2013.

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Delhi Is The Favorite

April 4, 2010 – 11:21 pm

According to a recent survey conducted by a leading real estate website Delhi is the most preferred location to buy a house, Mumbai follows next. It is interesting to note that Bangalore and Hyderabad come at the third most favored location for buying property.

Lucknow Properties - Real Estate India - Sushant Golf City Location
Photo by nancyarora2020The nationwide poll named ‘Realty Trends 2010’ for metros and Tier II cities across the country, which saw participation from over 4,800 property seekers consisted of Majority of the respondents belonging to the age group of 26- 35 years.

The country capital topped the charts with 34 per cent while Mumbai got 28 percent votes. Bangalore received 11 per cent votes in its favor with particularly south Bangalore being preferred the most.

With the introduction of budget 2010 the economy is improving and property prices are stabilizing, this is attracting the investors who restrained from investing last year to jump into the market with full swing.

The survey showed a large number of people looking to purchase a house want it for self-consumption. The figures tell that 67 per cent of the national property seekers want to buy a house for themselves while only 23 per cent are looking for property options from a long-term investment perspective. Short-term investors have only 10 per cent survey takers.

Surely the Indian Real Estate sector is on a roll.

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