real estate india

Subhash Projects and Marketing Ltd (SPML) has forayed into BOOT projects in road construction with the commencement of work on the four-laning of the Jaora Nayagaon state highway by Madhya Pradesh Road Development Corporation (MPRDC). SPML is actively pursuing similar opportunities for the development of highways on Build Own and Operate (BOOT) toll model elsewhere in India.

A special purpose vehicle (SPV) - Jaora Nayagaon Toll Road Company Private Limited - has been formed for implementation of the project which covers a length of 126 kms on SH-31 to 4-lane section in Madhya Pradesh. The total cost of the project is Rs. 847 crores with a concession period of 25 years including construction period of 2.5 years on BOOT basis. The consortium will pay annual premium (negative grant) of Rs. 15.39 crore over a period of 22 years increasing @ 5 per cent per annum to MPRDC.

Courtesy: - HT dated: - 21^st June 2008                                   

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Having surplus land during a realty boom is similar to sitting on a goldmine. While many corporates continue to hold on to this valuable asset in anticipation of a further price appreciation, quite a few have decided to cash in on the opportunity and boost their bottom lines in the bargain. Corporates have reported a significant improvement in net profit riding on the large extraordinary income earned in the form of profit on the sale of property. The list includes ACC, Ranbaxy Laboratories, Pfizer, Rallis India and BOC India. Others like Bombay Dyeing, Century Textiles and Godrej Industries own several acres in Mumbai and Thane, thereby creating huge assets for themselves.

                                        Courtesy: ET dtd. 20/06/08

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The realty sector is projected to grow at the rate of 30 per cent annually over the next decade, attracting foreign investments worth USD 30 billion, with a number of IT parks and residential townships being constructed across-India, industry body Assocham said. Currently, the domestic real estate market is expected to be worth 15 billion dollar in which the FDI is estimated to about 6 billion dollar, it said.

                                                                 Courtesy: ET dtd. 20/06/08

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Instant karma has emerged as the driving force behind the state’s multimillion-dollar realty industry, with religious tourism turning the twin towns of Haridwar-Rishikesh into hot spots for developers, industry trackers say. With the two holy cities located some 200 kilometres from the national capital, Haridwar and Rishikesh are fast becoming a favourite with residents of Delhi and its adjoining areas looking for a bit of quick spiritualism. Subsequently, these places have become almost an extension of Delhi-Gurgaon for spending the weekend.

    Courtesy: ET dtd. 20/06/08

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The recent bloodbath in the real estate sector has started taking a toll. Almost all large developers are facing a severe cash crunch and finding it difficult to complete their ongoing projects. The situation is so bad that most of them have reported a 50-70% cash shortfall. Liquidity crunch has forced many developers to pick up cash from the unorganized market at interest rates as high as 35% to 50% annually. The lending rate of banks is between 18% and 20%. The grade A developers which are facing crash crunch include DLF, MGF Emaar, Shobha Developers, Unitech, Omaxe, Parsvnath Developers, Hiranandani Group, Ansal API, BPTP Developers and TDI Group.

                                            Courtesy: ET dtd. 20/06/08

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India’s largest property firm DLF is planning to launch villas in Gurgaon for Rs 1-1.5 crore, reports Sanjeev Choudhary. The company feels villas will score over apartments in offering a value proposition to home buyers in a market hit by slowdown. At a time, when Rs 1-crore apartments have become a commonplace in metros and their suburbs, providing a villa for a similar price will enthuse all potential home buyers, says a DLF executive. The company plans to launch its latest offering in a month. The total number of villas on offer is not clear yet, but the company executive said it could be over 500.

                                Courtesy: - ET dated: - 18^th June 2008

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Making it easier for urban cooperative banks to extend housing loans, Reserve Bank has relaxed the risk provisioning norm for purchase of residential properties up to Rs 30 lakh. The central bank issued notification on Monday in pursuance of the annual credit policy announcement made by Reserve Bank governor Y V Reddy on April 29. Earlier on May 15, the central bank had relaxed the risk provisioning norms for housing advances by the commercial banks. “It has been decided to enhance the limit of Rs 20 lakh to Rs 30 lakh in respect of bank loans for housing in terms of applicability of risk weights for capital adequacy purposes. Accordingly, such loans will carry a risk weight of 50%,” Mr Reddy had said. 

Courtesy: - ET dated: - 18^th June 2008

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2% TAX IMPOSED ON VALUE OF PROPERTY, BUT WOMEN HOUSE OWNERS WILL GET TO PAY 1% LESS

Gurgaon: While property buyers across Haryana have welcomed the recent government decision to reduce the stamp duty on conveyance deeds and sale deeds from 6% to 5%, it has brought no relief to residents of Gurgaon. The district administration has imposed a new levy of 2% of the value of property to generate revenue for the recently-created Gurgaon Municipal Corporation (GMC).

Therefore, the buyer has to now pay 7% of the transaction instead of 6% earlier. On an average, Gurgaon generates daily revenue of about Rs 2 crore from stamp duty and registration fee. However, there is some relief for women buyers who have to pay one per cent less than men i.e. 6%.

According to officials of the revenue department, the better deal for women buyers is already having an impact. They pointed out that in places like Gurgaon and Faridabad, or for that matter any NCR city of Haryana, the property transactions are in crores. ”In case, a plot costs Rs 1 crore, the buyer would like to get it registered in the name of a woman since he will save at least Rs 1 lakh on account of stamp duty. So, we are witnessing a major shift in the pattern of property ownership with women becoming landlords,” said a senior official.

Estimates suggest over 60% of properties sold recently have been bought in the name of women. So far as the reduction in stamp duty is concerned, the Haryana cabinet had approved the draft of the Indian Stamp (Haryana Amendment) Ordinance, 2008, and the rates of stamp duty on conveyance deeds and sale deeds were reduced to discourage alienation of property on general power of attorney and to raise more revenue from stamp duty.

The Government of India has launched three schemes for improvement of infrastructure in urban areas and the Centre is providing substantial assistance to the state for this purpose. One of the conditions for providing this assistance is to reduce stamp duty to 5%. The Haryana finance minister had also made this announcement in his budget presentation early this year. A senior official of the revenue department said the move is also aimed at pushing the sale of properties. ”This is also an encouragement for the buyers since due to the reduction in the stamp duty, they are going to save more, he added.

Property dealers said since there has been a slowdown in the real estate market, the government might have taken this decision to push property transactions. Areas in Gurgaon, Faridabad, Sonepat and Panipat have witnessed increased business in this sector. ”This is a positive development. But in Gurgaon, with the new municipal duty of 2%, while the state government gets only 5% of the stamp duty, buyers pay 7%. So, how much this will help government achieve its goal here remains to be seen,” said G L Sharma, a property consultant.  

District officials said earlier buyers had to pay 2% extra stamp duty in case of properties falling under the erstwhile Gurgaon Municipal Council. ”Now the additional 2% is being charged on all transactions for properties in the entire urban conglomeration, including the colonies developed by private developers and villages which have been included in the corporation,” said a senior official.

 Courtesy: - TOI dated: - 19^th June 2008                          

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Panchsheel Group, the real estate perfectionist has redefined perfection with various dream projects that include Panchsheel Park Colony -Ashok Vatika, Lajpat Nagar, SPS Apartments Phase 1- Main GT Road, SPS Apartments PhaseII-Radhey Shyam Park, GT Road, Euro Apartments- Rajendra Nagar, SPS Residency Vaibhav khand, Indirapuram, and SPS Heights- Ahinsa Khand II, Indirapuram.

The Group has also created Panchsheel Wellington in India’s first global city, Crossings Republik. In its series of uncharted success, the Group has now created budget apartments on Hapur Road, Ghaziabad, for home seekers who want a complete lifestyle and that too at an affordable price. This living abode is strategically located in the bustling township of Ghaziabad. It is an ultimate destination for people desirous of settling in Delhi and NCR. It has become one of the favourite destinations for living due to easy accessibility from the capital and its other suburbs. 

With the proposed Metro Station, World class infrastructure, Residential and Commercial Complexes, Shopping Malls, Multiplexes Schools, Hospitals Community Centre, Parks and Shopping Centres and other luxuries of modern living, Ghaziabad is fast becoming the choice of upwardly families. It has been listed in the top 10 most dynamic cities of the world in’06 by Newsweek international. Catering to the needs of different strata of the society, it has become the most sought-after destination for Business Groups, Industrialists, Technocrats and Home Seekers. These are the advantages why Panchsheel has found Ghaziabad as the most sought after location for their budget apartments. Today the world is fascinated with a culture called Interior Design and Better Living. The lifestyle of the people gets a facelift with contemporary lifestyle that starts at their home and remains with them. The people today are not considered as general buyers but designated as smart home seekers who don’t want just homes but a perfect habitat that reflects their attitude and style. Keeping all these minute details and reasons in mind, Panchsheel has created Primrose, the budget apartment that offers luxury with affordability.

 Courtesy: - HT dated: - 14^th June 2008                          

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The Bhoomipujan for Phase I of Supertech’s upcoming residential project, Livingston was started of recently by R K Arora, CMD along with the Directors and VPs. The Livingston apartments are a part of Crossings Republik, which is an integrated township spread across a 360acre plot, situated on National Highway - 24.

 Livingston has been built keeping in mind the importance of space for rejuvenation. The Company will develop 635 units of 2 /3 Bedroom luxurious apartments in Phase I. The area surrounding it is clutter free and pollution free with a lot of natural foliage. There is also very easy access to all the amenities that one needs along with world-class facilities. These flats are especially for Middle Class Category and the price of these flats is starting from 21.60 Lakhs which is very much effective for a Middle Class family. The areas of these flats are from 1000sq.ft to 2075sq.ft. and the possession of Phase I will be on June 2010.Speaking at the ceremony R K Arora said, “Livingston will add value to the trust that Supertech has earned in the past 20 years. We see our aim of changing the face of still developing cities into realty destinations of the future becoming a reality.” Livingston is set in the heart of Ghaziabad, a city that has been featured in Newsweek International as one of the top 10 dynamic cities in the world in 2006. It promises to be the perfect investment and housing destination.

Courtesy: - HT dated: - 14^th June 2008

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