Sangh Priya Gautam, the former Union minister said, farmer should be given the right to sell 100% of their land. In Greater Noida, the Formula 1 racetrack required only 1000 acres of land but 2500 acres were acquired and allotted to a private builder by the government.

Land should be taken on lease from farmers. A BJP leader said, “The ownership should remain with farmers”. Another major aspect of the centre’s draft is that the urgency clause can be imposed only at the time of natural calamity or can be imposed in case of national security.

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.

The Sports City will have various Residential Districts which would be built by the company in phases. The first district will be the Country Homes, with sizes varying from 200 to 4000 sq mts. This will be followed by Lake District with high, mid and lower end apartments. The city will have features like uninterrupted water and electricity supply from Jaypee Group’s own power generation plants, round the clock 3 tier security, super specialty health facilities and educational facilities ranging from Kinder crib to professional levels.

For more details and booking please visit: http://www.propertywala.com/projects/560172

Indiabulls’ group spokesperson Gagan Banga said, “Interest rate hike has dampened the sentiment in the real estate market, which will result in further slowdown. We see 5-15% price correction in the real estate sector in the next few months depending on the project and its location”.

Real estate market has been under pressure for the past six months with sales declining by up to 70% in several markets and prices declining by up to 20% in overheated pockets like Gurgaon, Greater Noida, Ghaziabad and Kundli in the national capital region and some Mumbai suburbs.
Cushman & Wakefield South Asia MD Sanjay Verma said, “There is no alternative to credit. Land transactions have dried up due to developers’ inability to bring funds. The fund-raising plans of developers have also changed and some have limited their expansion plans”.
Some developers, especially smaller ones, also fear that their project might get stuck due to unavailability of funds. The bank credit had already dried up for small developers and they now fear rising interest rate will further increase their borrowing cost from NBFCs or private moneylenders. With homeloan rates, likely to go up, the advance money received from customers too will dry up forcing them to slow the pace of project execution.

Unitech general manager (corporate planning & strategy) R Nagraju, however, feels that high borrowing cost will have only a marginal impact on company’s margins. He pointed out that a bigger concern is slackening demand.

Mr. Nagraju said, “We can’t do anything about high interest rates, but we need to stimulate demand by adapting our products suited to the current market needs. This could mean cutting down on frills and making houses more affordable to the end user” .

Unitech plans to launch houses at Rs 40 lakh in Gurgaon and at even lower price points in smaller cities, which it thinks will find large number of buyers. Similarly, Ansal Properties and Infrastructure (API) is tweaking its plans to suit the changing demand scenario.

API CEO Anil Kumar said, “We plan to launch plotted development projects soon, which still have a good demand. Besides, we would focus on execution of projects rather than launching more housing projects” .

TEA additional CEO C S Verma said that the authority will complete the process of acquisition of 7500 acres in a quarter, following which it will be allotted to DLF and Jaypee group. He said, “We are negotiating with farmers and should be able to finalize the acquisition rate in the first week of July. Once the rate is finalized, it wouldn’t take us long to acquire the land”.

TEA will transfer the land to realty developers at acquisition cost from the farmers, which is likely to be much cheaper than the market rate developers have been paying privately. The ability to buy large tract of land at a cheaper price without spending much time and energy in the process is what is driving realty players to TEA’s Special Development Zone scheme. As realty sector boomed in the past few years, land prices too surged and farmers became more demanding while negotiating a rate with developers.

Most importantly, with government shifting the onus of land acquisition on to the developers for the special economic zones (SEZ), the hardship in land acquisition increased manifold. Developers needed to acquire contiguous piece of land from farmers at market rate, which shifted the balance in favour of farmers. Therefore, developers had to commit more men, time and money in land acquisition making the entire project more expensive. DLF hasn’t yet been able to acquire the land for its 5000 acres multi-product SEZ in Haryana, according to a company spokesperson.

Unlike SEZ, special development zone does not offer any tax benefit, but offers land at a much cheaper rate and without much loss of time. SDZ scheme requires the developer to allocate 35% of its total land to a core activity, which could range from industrial activity to sport and institutional.

IT/ITeS will form DLF’s core activity, while Jaypee’s will be sport. Jaypee plans to build Formula One race course in its SDZ. Jaypee, which is building Taj Expressway, says its proposed SDZ has a synergy with company’s other projects. Jaypee has other real estate projects in Greater Noida and around the expressway and is also a contender for building the proposed airport at Jewar, 40 kilometer from Greater Noida.

NKID is a large infrastructure project near Kolkata being developed by a consortium including Unitech (40%) and Salim Group (40%) and Universal Success (20%) of Indonesia. The project is spread over 37,830 acres of which govt has handed over 13,457 acres (35%) for development, includes the recent, 12,500 acres handed for a Chemical SEZ.

The SPV is applying IT specific SEZs at Noida, Greater Noida, Faridabad and Gurgaon. The Noida SEZ is being developed on 25 acre of land, Greater Noida on 100 acre, Faridabad on 54 acre and Gurgaon on 27 acre of land. In the first phase, the company will develop six million square feet in the four SEZs by 2010. The total area to be developed in the four SEZs is 20 million square feet.

All four SEZs have got the approval of the government and land has been acquired. The money raised by the SPV will fund the project.

The government rejected to extend the tax benefit for software technology parks after March 31, 2009, IT SEZs have become popular amongst the export oriented units. The developer of SEZ will get tax concessions not only on profit, but also on all inputs required for the project.

The deal reveals that the real estate tale in the country is still shining and the investors are prepared to put money, provided the project is at the implementation stage, said a banker. He said if India maintains an eight per cent growth, it will require enormous real estate supply.

Mr. Srivastava also said about the deferred payment schedule.

The main aim of this is to bring the end user and populate the city.

Early rate were planned lower but view the hike, land compensation, rates have also been revised accordingly.