Indian Property Review » ishani

HUDA Faridabad Plot Scheme Draw Result

ishani — Sun, 20 Jun 2010 19:02:06 +0000

Today, HUDA is announcing the results for its Plot Scheme (Faridabad and other areas).

As usual, in order to help our users, we are providing the procedure to check the results.

Go to HUDA Site http://huda.nic.in/ and click on Reg No./ Result.
Click on “Registration No. of Schemes” to find your registration No.
Go to Draw Result and enter your registration number to check your result.

We will also post the direct link to check results as soon as they are declared.

Team IPR

Gulshan Homz Vivante Noida Reviews & Ratings

ishani — Mon, 07 Jun 2010 10:18:59 +0000

Gulshan Homz has launched a new project – Vivante in Sector 137.

Should you buy this property? Is this the right property for you?

The collective reviews and ratings from multiple users carry more weight than builder’s claims and help the potential buyers in selecting the right property.

Therefore, before you decide to buy this property, Read Reviews and Ratings on this project at http://www.indianpropertyreview.com/

You can also find research reports on various projects (only at http://www.indianpropertyreview.com/) which provide detailed analysis & information to help you take an informed decision.

Indians feel the pinch as property bubble bursts

ishani — Sat, 07 Mar 2009 08:11:26 +0000

From building boom to bust, India was part of a larger real estate bubble created partly by loose monetary policies.

Al Jazeera’s Matt McClure reports from a Delhi suburb where both investors and labourers are losing hope fast as cash-strapped builders halt work on housing projects.

India lowers growth forecast to 7.1%, blames global slump

ishani — Mon, 26 Jan 2009 10:16:57 +0000

A top Indian government panel cut its growth forecast for Asia’s third-largest economy on Friday, blaming a battering from the global slowdown, and its chief said there was room for more cuts in interest rates.

In its review of the economy, Prime Minister Manmohan Singh’s Economic Advisory Council said expansion would slow to 7.1 percent for the current fiscal year to end March, from a previous estimate of 7.7 percent.

The economy has faltered from growth rates of about 9 percent in the past three years as high borrowing costs at home and recessions in key markets hit demand for manufactured products, automobiles and real estate.

But the overall fall-off still looks less significant than that in most developed economies and less than the halving of growth rates some now predict for Asia’s other emerging colossus China.

Tremendous growth in the world’s two most populous nations has been a major factor in world expansion in recent years but both now worry over the implications for jobs and poverty reduction of a slowdown in the developed world.

China’s annual GDP growth fell to 6.8 percent in the fourth quarter from 9.0 percent in the third quarter and 13 percent in all of 2007. The Indian panel, headed by economist Suresh Tendulkar, said a “painful adjustment to abrupt changes in the global economy” was underway.

Rising inflation in the first half of the fiscal year, when surging oil prices drove the most widely watched price measure to nearly 13 percent, followed by the global financial meltdown piled on the misery.

Indian authorities have slashed rates, cut duties and rolled out extra spending over the last four months to limit the negative impact of the global slowdown.

“The December quarter was the worst. March quarter growth will also not be great. There will be some recovery from September onwards,” said Saumitra Chaudhuri, economic adviser at domestic rating agency ICRA and a member of the panel.

“Perhaps one of the reasons why we are still having some decent growth is that the additional expenditure and other steps taken are in play.”

RATE CUTS?

Before the release of the economic review, Tendulkar had told Reuters in a telephone interview there was scope to reduce key interest rates but said the central bank may not announce a cut in its policy review next week.

The central bank reviews monetary policy on Tuesday and a Reuters poll forecast it would hold rates steady to assess the impact of recent aggressive reductions. But a sizeable minority of analysts bet on yet another cut.

“There might be a scope for reducing both the repo and the reverse repo. Unless they reduce the reverse repo it will be difficult. The reverse repo acts as a problem as banks park funds with the RBI,” said Tendulkar. “So I think they will have to reduce both.” The repo rate, the key short-term lending of the Reserve Bank of India, stands at 5.5 percent after being slashed by 350 basis points since mid-October. The reverse repo rate, at which the central borrows short-term funds from banks, stands at 4 percent. The panel’s new forecast is pretty much in line with analysts’ expectations.

In a quarterly poll carried out by Reuters in December, economists expected economic growth to ease to 6.8 percent in 2008/09, its slowest pace in six years. They expected expansion to slow further to 6.2 percent in 2009/10, highlighting the deterioration in prospects over recent months, but Tendulkar’s panel said growth may instead pick up — if there were signs of some improvement in the world economy.

It said growth may slowly improve in the second half of the next fiscal year and projected it to be between 7-7.5 percent or somewhere above that. India’s ruling coalition will unveil an interim budget on Feb. 16 ahead of a yet-to-be-announced general election in April-May, and the Congress party-led government is expected to give an overview of the economy and may announce fresh populist measures to woo voters ahead of the elections.

But analysts say a tight fiscal situation would restrict its ability to roll out eye catching measures.

The panel report cautioned that the combined fiscal deficit of states and the federal government could touch 10 percent of gross domestic product in the 2008/09 fiscal year.

Real Estate Sector may witness more M&A activity: Rohtas Goel

ishani — Mon, 26 Jan 2009 10:15:43 +0000

The RBI’s move to cut the cash reserve ratio (CRR) thrice in quick succession is expected to help revive the real estate market and bring about an element of stability.

We believe that the economy will rebound again and recent cuts in CRR and repo rates and government tax rebates are already bringing in positive sentiments among investors. This step announced is favorable for affordable housing in suburban areas and not prime land. The real estate sector is heading towards being the favorable for end-users. For instance, we have already announced to offer 1-5% discount on the basic sale price of existing projects and 5-10% discount to customers for any new project.

The percentage will depend on the project size, type and location. However, the cut will be for customers who pay on the basis of the progress of construction at the project.

Input costs

The 4% Cenvat cut will have a positive impact on realty sector. It is expected that prices of most of input products like cement, steel, etc would come down.

The reduction in prices of these products would benefit the real estate sector, where steel and cement are significant cost components.

This cheaper resulting input cost will further relieve the rising pressure on the developers.

Also at a time when realty sector is facing a cash crunch, private equity firms have committed to infuse funds into the Indian real estate sector. Some especially depressed markets are already beginning to see slightly improving conditions and should see increased home sales through the summer.

Residential segment

The residential segment is heading towards being favorable for end-users.

In Tier II and III cities, this segment is seeing a complete image makeover with increase in demand for designer housing, condominium, group housing etc. In Tier I, the demand for boutique and luxurious properties is on a rise.

In the current scenario, Tier-II and III cities still offer a good deal in terms of potential price appreciation, which is driving the investment and growth phase of the country owing to the huge unexplored potential in these cities.

The growth in these projects has found a boost due to easy access to housing finance, multiple and affordable real estate options and lifestyle properties.

Cities like Bhiwadi, Faridabad, Ghaziabad, Noida, Gurgaon, Sonepat, Ludhiana, Lucknow, Chandigarh, Guwahati, Bhubaneswar, Jaipur, Ahmedabad, Surat, Nagpur, Indore, Goa, Vishakapatnam, Mysore, Coimbatore, Kochi and other state capitals are some of the emerging hot residential destination in India.

While a large number of end users are buying homes, there are also significant numbers of investors who are going in for residential property purely for the purposes of future returns.

Global funds

The current turmoil in Indian market is largely driven by global markets sentiment. We at Omaxe feel that the main challenge lies to gear ourselves in terms of reducing financial dependence on global funds.

Talking about the growth factor, it cannot be negated that this sector still shows a favorable growth rate, although the pace has taken a little beating. We believe that the real estate sector still holds the prime importance as the most lucrative investment option on long-term basis and will continue to hold the same position. Residential would be the most beneficial sector from real estate in near future followed by commercial, office space or any other.

Consolidation

Real estate slowdown has resulted in a lot of struggle ahead for mid-size developers with small projects. Going forward, we expect the Indian real estate market to witness greater M&A activity driven by consolidation and the growing maturity of the market.

This activity would ideally be supported by requisite regulatory framework and inherent attractiveness of the real estate sector, which in turn will be based on sound market fundamentals and relatively stable economic & political regime.

We believe that the Indian real estate will continue to remain a good medium for long-term investment and FDI in real estate sector will take a rise in coming time.

Stimulus package should be focused on buyers of homes: CREDAI

ishani — Mon, 26 Jan 2009 10:09:49 +0000

Generally, in a buyers’ market things are advantageous to the buyer, whereas in a sellers’ market the advantage is for the seller. What is the status of the real estate market now? “Currently we are in a buyers’ market hence it is the best time for a buyer to be out there, looking for the best deal and closing it out,” advises Mr Kumar Gera, Chairman of CREDAI (the Confederation of Real Estate Developers Association of India).

He concedes that the slowdown in the economy has lead to significantly reduced velocity of sales from August-September 08 onwards. The mood, therefore, among CREDAI members at present is one of reviewing strategies, adds Mr Gera

“Many new projects that were to be launched are still on the drawing board, and where projects are being launched the focus is on lower total price of the units being offered in the market. This lowering of prices is being done by way of reduction of size of units and or reduction of the ‘frills’ and amenities in the project.”

Excerpts from the interview.

Has there been any impact of the recent measures of the Government?

Yes. The liquidity and the lowering of interest rates have eased the situation, to some extent. Many actual users who seek residences for their own use are back in the market closing deals. There are however many who are still fence-sitters and therefore a pent up demand is silently building up. As soon as there is a change in the sentiment and in the economy this demand will come forward and at that point will again push prices northwards. This is why the real estate market is always considered as cyclical.

Any specific demands that your Confederation is now pressing for?

Yes, we feel that a stimulus for the sector will help the economy. It is urgently needed as buyers are currently sitting on the fence waiting for a turnaround in the economy. There are numerous industries and services in the country that get impacted with construction activities; in addition, about 10 million skilled and unskilled workers are dependent on construction in the real estate sector.

The stimulus should be focused on the buyer of homes. Therefore, government should, for a restricted period of time, encourage buyers by incentivising them. This can be done by tax breaks for both purchases as well as rental housing. If this is a ‘limited time offer’ it can revive a slowing down economy.

Are there best practices of certain States that you would like to see emulated so that real estate development is enhanced?

In the current times State as well as local authorities need to look at ways of reducing the burdens of duties, taxes, fees and levies on the sector. All these ultimately add to the total cost a home buyer is burdened with.

In addition there is a need for expeditiously sanctioning plans for projects. Delay in sanctions adds significantly to end costs. The authorities also need to create infrastructure in future developable areas well in advance, as has been done in Ahmedabad.

Some States and local authorities are proactive on some of these issues; it is desirable that they be proactive on all the issues as their revenue is linked to the growth of housing and construction of real estate in many ways.

On the common myths about the industry…

There are many myths about the real estate industry. One of the most important ones is a perception that it is the developer who is responsible for increasing prices. In fact price is a product of input costs which includes land plus materials and service costs plus sanction and impact clearances.

It must be kept in mind that the land component is not a fixed price (regardless of the cost to the developer), as input costs vary, be it cement, steel or land cost in the area; the price per sq mtr of the real estate will also vary.

There is what is known as a ‘replenishment cost of land’ that is always factored in while fixing a price for sale. Thus as land values in the surrounding areas increase or decrease the developer has to tweak his end price so that he continues to be in a position to afford to replenish the land consumed in his next project. This method of pricing is followed by professional developers who are in this business on an ongoing basis.

How far away is ‘affordable housing’ for the common man?

Affordable housing is housing for various segments of income levels families. Thus there is a need to identify housing cost to a family based on its ability to bear the burden of EMI + utilities in light of the income of the family.

Generally, the affordable outgoing can be about 35 per cent of the combined family income. With these parameters there are affordable options in many towns and cities but generally starting from a combined family income of not less than Rs 3-4 lakh per annum. Obviously the level rises as we go into the metro cities.

Tata Realty returns Rs800 cr to its parent company

ishani — Mon, 26 Jan 2009 10:03:04 +0000

Less than a year after it received Rs1,000 crore as investment from its parent, Tata Realty and Infrastructure Ltd is refunding Rs800 crore to Tata Sons Ltd at a time when the group is hard-pressed to raise funding related to past acquisitions and expansion.

The decision, taken after Tata Realty decided to pull back some of its planned projects amid a downturn in the real estate market, will reduce its paid-up capital to Rs925 crore from Rs1,725 crore.

Tata Sons, the group holding company, had invested Rs1,000 crore in its closely held realty unit in March through a 5% non-cumulative convertible preference share issue of Rs10 for cash at par.

Convertible preference shares differ from ordinary shares in that they do not normally come with voting rights, but promise a dividend until conversion into ordinary shares. The dividends in the case of non-cumulative preference shares are not accumulated in arrears.

“At the moment, we are well capitalized,” said Sanjay G. Ubale, managing director and chief executive officer of Tata Realty, confirming the refund, which was approved by the Bombay high court earlier this month. While seeking approval from shareholders for the refund, the firm had said, “In view of the significant downturn in the real estate markets, the company has now decided to shelve/reduce the size of some of its proposed projects, resulting in reduced fund requirements.” Tata Realty had embarked on major projects, including information technology parks and so-called special economic zones. It also planned to jointly develop real estate with group firms such as Tata Consultancy Services Ltd and Indian Hotels Co. Ltd.

Ubale said some of these projects would be financed through the $750 million (Rs3,690 crore) offshore fund, Tata Realty Initiatives Fund-I, that the company is managing.

For Tata Sons, the refund comes at a time when it is trying to raise money to fund the expansion and acquisition costs of its group firms. Brokerage India Infoline Ltd last week estimated the Tata group needs $3 billion over 18 months, mainly to refinance a bridge loan taken by Tata Motors Ltd for its purchase of Jaguar and Land Rover, or JLR. “In the worst-case scenario, if the group needs a large cash infusion at JLR and funds equity requirement for growth plans of some its operating companies, the cash required could jump to $5.5 billion,” analyst Bijal Shah wrote.

The closely held firm had also increased its borrowing limit by one-third to Rs20,000 crore.

Decapitalizing, as the exercise Tata Realty is going through is called, is rare among Indian companies. In recent times, only Colgate-Palmolive (India) Ltd made a similar move when it returned Rs9 a share from the face value of Rs10 through a Rs122 crore dividend to shareholders. The toothpaste maker had said it was “paying off excess capital”.

Tata Realty’s move comes in the wake of contracting demand for housing and commercial realty in the country after interest rates climbed in mid-2008, driven by a surge in inflation that has now begun to ease. In an 8 January report on the real estate sector, analysts Siddharth Bothra and Satyam Agarwal of Motilal Oswal Financial Services Ltd said an expected shift in the balance of power from real estate developers to home-buyers was becoming apparent.

“Global and domestic events since September 2008 have worsened the outlook for real estate,” Bothra and Agarwal wrote. “In September 2008, it appeared that price cuts by developers along with (a) drop in mortgage rates could revive the sagging demand. However, experts and developers now feel that property demand is unlikely to get stimulated in the medium term even if real estate prices correct 20-25%; and mortgage rates decline 250-300bp (basis points).” One basis point is one-hundredth of a percentage point.

As both Tata Realty and Tata Sons are not listed on the stock exchanges, only statutory approvals from the court and the registrar of companies were needed for returning capital.

Justice S.J. Vazifdar said in a 9 January order that the “company is entitled to the orders sought” as the reduction of paid-up share capital does not decrease the firm’s liability and is not adverse to the interest of its creditors. In its court petition, Tata Realty had said “creditors of an aggregate value of about 99.38%” of its Rs122 crore debt had given their consent “and that subsequently, the remaining creditors have been paid and/or have also given their consent”.

Right time to buy property in Delhi-NCR?

ishani — Sat, 24 Jan 2009 16:39:54 +0000

Is it right time to buy that house in Delhi that you’ve always wanted but couldn’t afford? From property developers to experts, the general opinion seems to be – the time is right now. Over the last six months or even one year, property sales have fallen in the National Capital Region by 50 per cent. And that has forced builders to drop their prices.

Unitech in trouble?

ishani — Sat, 24 Jan 2009 16:33:52 +0000

One of the leading real estate comapnies, Unitech is sinking in troubles.

What are they doing?
How are the investors affected?

Find out the answers to all these questions in this video!

Educomp Solutions and Ansal API tie up for Millenium School

ishani — Sat, 24 Jan 2009 16:25:01 +0000

Ansal Properties, a leading real estate developer and Educomp Solutions Ltd, India’s largest Education Company today laid the foundation stone of Panipat’s first Millennium School, located within the Ansals Sushant City. Millennium Schools are being set up in India by Knowledge Tree Infrastructure Ltd. (KTIL), a subsidiary of Ansal API and Educomp’s subsidiary, Edu Infra Pvt Ltd. (EIPL).