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04/06/2015

These Are India's Top 20 Residential Locations: Report

wning a house in a swanky, upscale neighbourhood is the dream of every individual. A property in one of the country's prime locations is likely to cost a fortune, but a sought-after address is the surest sign of success and famedom. Property consultant JLL India has come out with a list of India's "top 20" residential neighbourhoods.

Here's the list of 20 coveted neighbourhoods as listed out by JLL:

1. Palm Beach Road, Navi Mumbai: JLL says this is the only area in Navi Mumbai where high-rises offer a sea view. Current property prices here range between Rs.14,000 per square foot and 18,500 per square foot.

2. Worli, Mumbai:

The upmarket neighbourhood now holds premium positioning with steadily appreciating property prices. (Estimated prices Rs.35,000 - Rs.60,000 per square foot)

3. Bandra, Mumbai:

Bandra has a high level of shopping, education, healthcare and recreation facilities, which makes it a preferred destination for prime property seekers. Estimated luxury home prices - Rs.30,000/sq. ft. - 55,000/square foot depending on the exact location and type of project)

4. Lower Parel, Mumbai:

Lower Parel is contributing most to Mumbai's changing skyline and good connectivity with other parts of Mumbai and improved infrastructure add value to one's investment here. (Estimated prices - Rs.25,000 - 40,000 per square foot)

5. Vashi, Navi Mumbai:

Well connected with the key business districts of the city, Mumbai and Pune, Vashi ranks high on social and civic infrastructure. (Estimated prices - Rs.11,000 per square foot - Rs. 17,000 per square foot)

6. Lutyens' Delhi:

Lutyens' Delhi - which includes Aurangzeb Road, Mansingh Road, Prithviraj Road and Shahjahan Road, and neighbouring areas - has long been among the most preferred locations for the country's rich and powerful. Owning a house here means announcing to the world that one has arrived in India's power circle. (Estimated prices - Not given)

7. Greater Kailash, Delhi:

The upmarket residential neighbourhood in South Delhi is home to some of the most affluent families in Delhi. (Estimated prices - Rs.17,000-Rs. 22,000/square foot)

8. DLF City Phase-5, Gurgaon:

DLF City Phase-5 offers close proximity to the domestic and international airports and good social infrastructure, rapidly developing physical infrastructure, making it a highly desirable property destination. (Estimated prices- Not given)

9. Golf Course Road, Gurgaon:

The area around Golf Course Road offers a mix of residential and commercial establishments. (Estimated prices of residential condos - Rs.13,000-Rs. 19,000/square foot)

10. Boat Club Road, Chennai:

A calm locality situated away from the city, Boat Club Road homes carry an exclusive affluence tag. (Estimated price Rs.27,000/square foot)

11. Poes Garden, Chennai:

Home to many top notch business tycoons and politicians, Poes Garden is surrounded by lush green trees and considered to be one of the cleanest patches of the city. The area also has actor Rajinikanth's residence to its credit. (Estimated price range - Rs.33,000-35,000/square foot)

12. Sadashivanagar, Bengaluru:

This is one of the traditional luxury destinations in Bengalure. Estimated prices for under construction property here are around Rs. 30,000/square foot - the highest residential presales capital value recorded in the city's history.

13. Indiranagar, Bengaluru:

Indiranagar is well-connected with other parts of the city via Namma Metro, Purple Line and the BMTC bus line. (Estimated prices - Rs.12,000-18,000/square foot)

14. Koregaon Park, Pune:

The upmarket area offers top notch high-end luxurious apartments and bungalows. (Estimated residential property prices - Rs.13000-Rs. 16000/square foot, depending on exact location and building type)

15. Kalyani Nagar, Pune:

Kalyani Nagar benefits from proximity to the airport and the railway station, making it an ideal destination for IT/ITeS companies. (Estimated residential property prices - Rs.9000-13000/square foot)

16. Boat Club Road, Pune:

Situated along the M***a River, Boat Club Road offers close proximity to the airport, railway station and the city's primary business districts such as Dhole Patil Road and Bund Garden Road. (Average prices - Rs.13,500 - Rs.15,500/square foot)

17. Banjara Hills, Hyderabad:

The profile of buyers here is largely skewed towards the senior management of corporates, software professionals, doctors, advocates, chartered accountants and businessmen. (Estimated prices - Rs.7,500-14,000/square foot)

18. Jubilee Hills, Hyderabad:

Home to business tycoons, industrialists, film personalities and other high net worth individuals, Jubilee Hills is one of the most expensive commercial and residential locations in India. (Estimated prime land prices around Rs.200,000/square yard)

19. Alipore, Kolkata:

Many reputed business families such as the Singhanias, the Jalans, the Goenkas and the Mittals share this pin code. (Estimated prices - Rs.15,000-Rs. 22,000/square feet)

20. Ballygunge, Kolkata:

Convenience, quality lifestyle and connectivity are the main factors that make Ballygunge one of the best living areas in the southern Kolkata. (Estimated prices - Rs.10,000-Rs. 12,500/square foot)

28/05/2015

Right Time To Buy

Real estate sales are falling. There has been a 50 per cent rise in unsold housing inventory between June 2012 and December 2014. The top six markets - Bangalore, Chennai, Hyderabad, Mumbai Metropolitan Region (MMR), Delhi-National Capital Region (Delhi-NCR) and Pune - have nearly seven lakh unsold units, according to Liases Foras, a real estate research fi rm.
Is real estate losing its title as the most-preferred asset among Indians? The answer, looking at the data, is an unequivocal yes.
Between April 2014 and March 2015, sales fell 34 per cent in nine cities, as per data by PropTiger.com, a real estate portal. These cities are Ahmedabad, Bangalore, Chennai, Gurgaon, Hyderabad, Kolkata, Mumbai, Noida and Pune. Only 2.20 lakh units were sold in these cities in 2014/15, compared to 3.35 units in the corresponding period last year. Gurgaon saw the sharpest drop in sales, 57 per cent, while Pune fared better with a drop of 19 per cent.
The trend has surprised many observers. Real estate has always been the most sought-after asset class, given the kind of returns it has delivered in the past. Even after the fi nancial crisis of 2008, some residential markets saw fast growth. And, when equities bit the dust after 2008, people further increased their dependence on real estate and gold.
This rise in demand between 2009 and 2013 saw prices double in some markets. For example, Noida Extension, one of the key markets in the National Capital Region (NCR), prices almost doubled from Rs 1,830 per sq.ft. to Rs 3,476 per sq.ft. between March 2010 and March 2013, as per data by PropTiger.com. Prices in Panvel, Mumbai, rose from Rs 2,904 per sq.ft. to Rs 4,898 per sq.ft. Similarly, prices in Whitefi eld, Bengaluru, went up from Rs 2,400 per sq.ft. to Rs 4,134 per sq.ft. during the period.
But things have worsened after 2013. Since then, prices have stagnated or declined. The asset class turned out to be second-worst performer in 2014/15, when equities returned 25 per cent. Prices in micro markets like Dwarka Expressway, Noida Extension, Thane, Panvel, Whitefi eld, Shollinganalur and Dombivali rose just 1-4 per cent.
Even premium residential real estate markets were hit hard. As per a recent report by Jones Lang LaSalle, a real estate consultancy: "Areas in South and Central Delhi such as Vasant Vihar, Defence Colony, Jor Bagh and Golf Links have seen prices fall in the range of 15-20 per cent since 2013. Areas like Westend, Shantiniketan, Prithviraj Road, Aurangzeb Road and Amrita Shergill Marg have prices correct by 10-15 per cent."
Builders were expecting that a new government at the Centre and falling interest rates will help stimulate demand, but nothing of that sort has happened yet.
There were 2.33 lakh unsold units in NCR and 1.72 in MMR as on December 2014, a rise of 36 per cent and 47 per cent, respectively, from June 2012. However, it is Bengaluru that has seen the highest rise of 142 per cent in inventory since June 2012. The city has 1.01 lakh unsold units, as per Liases Foras.

23/05/2015

Realtors wary of service tax rate hike, say move will make properties costlier

NEW DELHI: Real estate developers said the increase in service tax rate to 14 per cent from 12.36 per cent being enforced from June 1 does not bode well for the industry which is struggling to revive amid lukewarm demand and oversupply.

"The Indian economy has not done well in the last three-four years. The saving and income levels of potential homebuyers are already at the lowest level. The government should have waited t ..

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For a Rs 25 lakh home, the buyer will have to pay Rs 10,250 more while those buying a Rs 2-crore home will have to pay an additional Rs 98,000.

15/05/2015

Relief for home buyers as SC upholds land acquisition in Greater Noida

The Supreme Court on Thursday upheld an earlier order by the Allahabad High Court on land acquisition in Greater Noida Extension, wherein 10 per cent of the developed land will be given to farmers.
"The honourable Supreme Court today decided that the judgement given by the Allahabad High Court is the correct one and has been upheld. Allahabad High Court had said the land acquisition will not be quashed," advocate Surat Singh told ANI in New Delhi.
"Around 64 per cent of enhancement of compensation will be given, that is, from Rs 850 to Rs 1400 per square yard and also 10 percent of the developed land will be given to farmers. That judgement was challenged by authorities in both Noida and Greater Noida, with 850 petitions filed, while farmers groups filed 350 petitions. All these petitions came off today before the honourable Supreme Court," he added.
Singh further said there is no longer any obstruction for construction.
"Now, the farmers will file a re-petition against it and will before a higher bench of higher judges," he added.
The Supreme Court had earlier in February 2014 also upheld the Allahabad High Court's order that directed the government authorities to pay 64.7 per cent additional compensation to farmers whose land was acquired in Noida and Greater Noida.
The high court's order was challenged by both Noida and Greater Noida authority.

23/04/2015

Land Bill Pro-Farmer, Pro-Growth: Industry Body

New Delhi: The Land Bill introduced in Parliament on Monday will create millions of jobs, meet the aspirations of farmers, and help spur growth in the economy, the Confederation of Indian Industry (CII) said on Wednesday.

The industry body termed the Bill as a vital piece of legislation that will seek to bridge the economic divide and propel inclusive growth in the country.

"Industry and farmers should not be viewed as opponents when it comes to the land bill. Development needs equitable participation by industry and the farm community."

"Job creation through inclusive growth is the foundation on which development and growth reside and it is this spirit that embodies the new Land Bill," CII president Sumit Mazumder said.

"The land acquisition ordinance could not have come at a more opportune time when developmental infrastructure and industrial projects worth crores of rupees are delayed due to hurdles in land acquisition. This deprives millions of landless people of job opportunities and forces them to migrate to urban slums to look for livelihood," Mr Mazumder said.

The Land Bill is expected to benefit millions of rural migrants and help the country urbanise, CII said.

The government's move to maintain the compensation package at four-times the market value in rural areas and two-times in urban areas will go a long way in ensuring that the land owners and farmers are adequately compensated, the industry body said.

CII supports this provision as such land owners and farmers are important stakeholders in the developmental process, it added.

21/04/2015

Property market to improve by March 2016, help developers, says Fitch

Fitch, the global rating agency, on Monday said the likely upturn in the country's investment climate and reduction in interest rates will improve the property market by the end of March 2016 and provide relief to the debt-ridden developers.
"The property development sector (will) be a key beneficiary of reductions in housing loan interest rates by several domestic banks in April 2015," the agency said, adding that they would also boost credit growth.
Besides, the Reserve Bank of India (RBI) has reduced the key policy rate by 0.50 per cent since January, prompting commercial banks to cut interest rates for home loan and other borrowers.
"We expect property developers with a greater exposure to the middle and lower income segments to benefit more from lower domestic interest rates," it said, adding that developers with a greater mix of high-income customers, such as Lodha Developers and Indiabulls, will be less impacted because their customers are less sensitive to market interest rates.
Both the companies, it said, would meaningfully reduce the portion of debts by end-2016.
The rating agency observed that "the process of reducing leverage (debts) stalled in 2014 due to weak sales and slower cash collections on properties that were sold towards the end of 2014 and in early 2015, as developers introduced easy payment schemes to stoke demand."
Earlier in the month, Fitch raised its forecasts for India's GDP growth to 8 per cent for the current fiscal, up from 7.4 in per cent in 2014-15, and 8.3 per cent for 2016-17.
Domestic property purchases remained weak in 2014 due to high interest rates and some political and policy uncertainty in an election year, it said, adding that several buyers postponed their purchases, which drove up inventory levels steadily during the last 12 months.
Most developers, Fitch said, "responded by introducing easy payment plans for certain products. These payment plans typically require 20 per cent of the property price to be paid upfront and the remainder at the end of construction, usually several years later. This has lengthened cash collection cycles and contributed to higher leverage".
Fitch estimates that around 20 per cent of the sector's sales over the last two fiscal quarters were financed by easy payment plans and observed "the longer cash collection cycle will continue to weigh on developers' balance sheets in the near term."

17/04/2015

Housing Loans to Grow 22% This Fiscal Year: Icra

New Delhi: The Centre's focus on affordable housing for all could push overall home loan growth to 20-22 per cent this fiscal year, rating agency Icra said.

The segment has seen growth of 17 per cent in the first nine months of 2014-15.

"Government's focus on affordable housing, favourable regulations could push overall housing credit growth to 20-22 per cent FY16 onwards, which could lead to improved mortgage pe*******on from current levels of 8.2 per cent," the rating agency said in a report.

The housing finance market has crossed the Rs 10 lakh crore mark, as of December 31, 2014, it said.

Of this Rs 10 lakh crore housing loan book, Rs 6.3 lakh crore loans is with the banking sector and the balance Rs 3.7 lakh crore with housing finance companies (HFCs) and non-banking financial companies (NBFCs).

The report said investor sentiment for the housing sector has also improved as reflected by the recent capital infusions to the tune of Rs 1,780 crore in various housing finance companies (HFCs) in 2014-15, and they are expected to report gearing levels of 7.5-8 times by March 31, it said.

In Icra's estimates, HFCs will need external capital of around Rs 18,000-28,000 crore to grow at 20-22 per cent over the next 5 years, assuming an internal capital generation of 16 per cent while maintaining the capitalisation levels at current levels.

HFCs have been able to maintain an asset quality gross NPA percentage of 0.74 per cent as of December 31, 2014, it said.

Going forward, the report expects gross NPA percentage to remain range bound between 0.7 per cent and 1.1 per cent.

While the market continues to be dominated by the five large groups namely SBI Group, HDFC Group, LIC Housing Finance, ICICI Group and Axis Bank, accounting for 60 per cent of the total housing credit in India as of December 31, 2014, there has been an emergence of a number of new HFCs in niche segments like affordable housing.

This segment has been growing at a faster pace higher than 50 per cent for the nine months slowly gaining market share.

15/04/2015

Real Estate Bill May Be Introduced in Next Parliamentary Session

Hyderabad: The government is considering introducing the Real Estate Development and Regulation Bill in the coming session of Parliament, Union Urban Development Minister M Venkaiah Naidu said on Saturday.

"It is regulation and not strangulation. This is to see that the sector is run in a proper way and in the interest of consumers and real estate developers, mainly for the benefit of consumers. The intention is not to trouble the sector," Mr Naidu said here.

The Bill is being introduced against the backdrop of some real estate developers not fulfilling the promises made to consumers despite giving attractive advertisements, he said.

The Union Cabinet has approved the Bill and the ministry is thinking of moving it in the coming session of Parliament, Mr Naidu said.

He hailed Prime Minister Narendra Modi's initiative to take care of people affected in natural calamities.

The enhancement of compensation to the affected families and compensation to crop damages, loss of milch cattle, damaged houses and also for weavers and artisans are aimed at helping the helpless and needy, he said.

"This is as per the stated policy of NDA helping the helpless. Another pro-poor and pro-middle class initiative in this direction is opening of Mudra Bank to fund the unfunded," he said.

The push-cart vendors and small businessmen who were neglected so far will be benefited by the initiative, he said.

The Jan Dhan Yojana scheme, aiming to end financial untouchability through financial inclusion by opening 12.37 crore bank accounts is a major initiative, he said.

"All these show the inclusive politics of this government and its priority for uplifting the poor (Antyodaya)," he said.

14/04/2015

Realty Bill May Force Developers to Speed Up Stuck Projects

New Delhi: With the government bringing in ongoing projects under the ambit of the proposed real estate law, developers are looking to speed up construction of existing housing units to escape any regulatory action, but funds may be a constraint.

The real estate market, particularly in Delhi-NCR, has been facing a huge delay of 6-7 years in project completions, which in turn has affected buyers' interest also.

The Union Cabinet last week approved amendments to the long-pending Real Estate Bill to bring under its ambit all ongoing projects, which would need to be registered with a proposed regulator after the new law comes into force.

Credai, the apex body for real estate developers, has opposed the decision to bring the ongoing projects under the proposed law, saying that provisions should be prospective and not retrospective.

"If given a choice developers would like to push ongoing projects so that the they do not get stuck in the registration process of the regulatory department. One must understand that to compress the delivery time, adequate fund would be required, besides robust technology," Credai (national) president Getamber Anand told PTI.

"The bottom line is that retrospective effect of the bill would definitely cause delay in ongoing projects if they get entangled in the regulatory process," he added.

Property consultant JLL India's chairman and country head, Anuj Puri, said that it would be difficult to bring ongoing projects under the purview of the new law.

"If it does, there will be a rush to secure completion certificates, wherever developers are in a position to do so, before the implementation of the Act," he added.

Mr Puri, however, said consumers would be benefited if the construction activities of those projects, which are nearing completion, speed up because of this provision.

"Overall, the real estate regulation is a good move to bring in more transparency and corporate governance in the real estate sector. This will no doubt protect consumers and also w**d away with unscrupulous developers," he said.

The amended bill, which is likely to be introduced soon in Parliament, also seeks to make it mandatory for all developers to keep minimum 50 per cent of funds collected from buyers in an escrow account to meet construction cost.

The Real Estate (Regulation and Development) Bill aims to protect the interest of consumers, promote fair play in real estate transactions and ensure timely ex*****on of projects.

The Bill contains provisions of registration of realty projects and real estate agents with the proposed Real Estate Regulatory Authority.

13/04/2015

Paying EMIs but no sight of house? Find out how to avoid buying into such projects

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11/04/2015

Indian Hotels board clears 80.1% stake acquisition in LEPPL

New Delhi: Tata Group firm Indian Hotels Company (IHCL) on Thursday said its board has approved the proposed acquisition of the remaining stake in Lands End Properties for a sum not exceeding Rs 17 crore.

"The Board of Directors of the company, at its meeting held on April 9, 2015, has accorded its approval to the proposed acquisition by the company of the balance 80.1 per cent equity stake in Lands End Properties Private Ltd (LEPPL), for an aggregate consideration not exceeding Rs 17 crore...," Indian Hotels Company Ltd (IHCL) said in a filing to BSE.

This will make LEPPL a 100 per cent subsidiary of the company, it added.

"Pursuant to the foregoing, ELEL Hotels & Investments Ltd, the licensee of the erstwhile hotel Sea Rock site, will become a subsidiary of the company, IHCL said.

Shares of Indian Hotels Company today traded at Rs 117.45 per scrip on the BSE in the afternoon trade, up 1.78 per cent from its previous close.

10/04/2015

Real Estate Bill Could Increase Property Prices: JLL India

The Real Estate Bill will bring in better transparency and better corporate governance into the real estate sector but property prices could go up, said Anuj Puri, chairman & country head of property consultant JLL India. The Cabinet on Tuesday approved amendments to the Real Estate Bill 2013 to regulate the sector and protect home buyers from unscrupulous developers.

The new bill will "dramatically" change the financing model of the industry, which will increase the cost for developers, Mr Puri said. The bill, which has to be passed by the Parliament to become law, stipulates that a project cannot be launched without getting registered with the proposed regulator. Another key provision of the amended bill also makes it mandatory for developers to put aside 50 per cent of the money collected from and use that only for funding construction of the project.

Mr Puri said since developers cannot collect money from the buyers during the pre-launch stage, they have to look at alternative sources of funding, increasing their project costs. (Pre-launch state involves means raising money from buyers for projects which are yet to get all regulatory approvals.)

Explaining the current funding models of many developers, Mr Puri said, "They buy a plot of land and quickly get an architect to build dummy plans and start selling it at the pre-launch stage. In many states, the law does not prohibit them from doing a pre-launch.

"They collect the money and with that money pay the balance to the land owner from whom they have bought the land. And utilise the rest of the money to buy another plot of land or spend that money on construction."

But if the new bill becomes law, the pre-launch stage is going to disappear and only after approvals, developers can launch the project , said Mr Puri. "Now, the developers have to buy land through their own equities. Or they need institutional investors for debt to back these projects," he added.

This is likely to increase the cost of real estate, Mr Puri said, because developers have to borrow money for one year or one and a half years from institutional investors.

Mr Puri however does not see a big jump in real estate prices because they are already near its peak.

Despite some rise in prices, consumers benefit overall, Mr Puri said. The Real Estate Bill takes away many risks associated with a project from a consumer stand point, he said.