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Affordable housing options

Yamuna Expressway: Affordable housing options

The prospects of real estate market at Yamuna Expressway corridor are promising. The announcement of new affordable housing scheme by YEIDA may help revive the realty market.

The growing demand for affordable homes in Delhi NCR circuit is the main driving force that has led to a launch of low-cost residential options in the region. This new trend has been well captured by the realty developers to cater this rush. In the last couple of years, NCR has seen rapid real estate development in this regard, supported by social infrastructure and civic amenities.

The Yamuna Expressway Industrial Development Authority has taken new initiative to pump the new life into the real estate market along the entire corridor by offering new affordable housing scheme. The authority has come up with five new housing schemes, especially to attract mid-budget groups.

The YEIDA, in its new scheme, has put on offer five different land use categories across the expressway corridors. The residential category brings 280 flats with 200 smaller units and 80 bigger units. The smaller units are dedicated to low-income groups and will cost Rs 11 lakh. The small ticket size flats are of sizes 29.76 meters while bigger units will have sizes of 54.75 meters and will costs Rs 19 lakh. These affordable apartments are said to be constructed in Sector 22D of YEIDA.

According to realtors, this lucrative offer is to bring the attention of new home buyers who are hunting to get shelter for a long time in NCR regions within their price bracket. This move is also believed to aid the new development in the locality.

These residential flats will be made available through lottery scheme only.

The YEIDA in its next scheme commercial plots for commercial use only has put on offer for public sale. This scheme has been brought to attract investors and entrepreneurs. The authority will also auction 106 institutional plots in its area. These plots are located in Sectors 18, 20 and 22 and allotment will be made through first come and first serve and interview basis.

Why affordable housing is getting so popular?

According to Dhiraj Jain, director, Mahagun Group, “Housing choices that people make are completely dependent on their economic, social and psychological impulses. While some may choose to spend more on housing because they feel they can afford to, others may not have a choice. This portion of population that migrates to urban areas for jobs is the main driver of affordable housing”.

The area spotlight

The area came on international radar with the opening of Buddha International Circuit and successfully hosted two F1 Grand Prix consecutively in 2011 and 2012. And today, the locality is buzzing with ample of real estate activity. The improved infrastructure and smooth connectivity via expressways provides rapid commuting to and fro from the city. So that is why area along the expressway has seen strong presence of builders arena launching their premium projects in commercial, residential, hospitality and retail categories. The good arterial network of roads as well as metro connectivity will upsurge the demand of housing units.

Housing options available at expressway corridor

The average property prices here is low as compared to other realty segment of Noida due oversupply of open land plots in the area. For example, you can get a 1 BHK flat of 625 square feet at Rs 20 lakh and 2BHK apartments of 1,000 sq. ft. at Rs 28 lakh.

The locality has seen the presence of some of the leading developers like Gaur, Lotus Group, Nirala and Oasis.

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Bangalore: Time to invest in Hoskote

Hoskote is new emerging property hub in the neighborhood of Bangalore that has high supply of residential properties of all kinds. Here is sneak peek into the realty cluster.

Hoskote, located 25 km from Bangalore city, is set to become a hot destination for new home buyers. The residential property prospects of this locality are promising.

Cut to last three to four years, the entire Hoskote road belt was chiefly an industrial area. Today, the expansion of IT industry and setting up of domestic and international BPOs has attracted more migrants looking to settle close to their working places. This move has given momentum to the real estate activity in the locality.

Rebin Thomas, a real estate advisor in Kalyan Nagar, said, Hoskote is a well-planned township set around manufacturing industry and auto hubs and has smooth connectivity to railway and metro stations, airport and notable IT hubs like Electronic City & Whitefield. Hence, the area is witnessing remarkable development in the residential property market.

Hoskote is one such locality in south of Bangalore where real estate development is taking place at a fast pace.

Emprasa is building Bangalore’s first ‘smart city’ in Hoskote. The project sprawls over 48 acres and would comprise of 10,000 apartments for offices and living spaces. The city of the future is dedicated to startups looking for innovation hubs, VCs, incubators and angels at one place.

An emerging property hub

An auto hub spread over 1,500 acres has been planned in Narsapura near NEO Bangalore. Logistics parks have also been proposed in the locality. The industrial area of Hoskote comprises of 200 small and large industrial units, engaging a massive number of professionals.

An affordable property market

Low-ticket size apartments are available from Rs 19 lakh only – this is a lucrative price bracket for investors or home buyers who wish to invest in Bangalore real estate market without taking much burden on their pocket. The average price range for all residential apartments in Hoskote Bangalore is between Rs 2,300-Rs 3,500 per square feet.

Attractive payment plans

In Artha smart city project, investors need to pay only 10% and the rest 90% is will be funded by financial institutions. In some cases, buyers need not pay any EMI till possession and hence the interest liability is removed for the time period. This new payment plan enables end users to participate in the growth of Bangalore real estate.

Price appreciation trends

Prices are up from Rs 2,800 per sq ft in December 2015 to Rs 3,000 per sq ft in March 2016, showing 7% growth in five months.

Investors can gain assured rental value after they get possession of their property as in the near future, the locality is expected to be inhabited by a large number of working professionals.

Location advantage

There is excellent connectivity with the road since a six-lane super highway to Chennai originates from here. The proposed satellite township ring road (STRR) will be linked through this area. NH 4 can be accessed after 3.5 km and international and CBD airports are located at a distance of 18 km and 20 km, respectively.

Civic amenities

The area is well-mapped with several good educational institutions, hospitals, public sector banks, shopping malls and community halls.

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YEIDA launches 5 new land use schemes, including land for housing

Yamuna Expressway Industrial Development Authority has come up with five new lucrative offer just to recharge the real estate market along the Yamuna e-way. In its offer authority has announced five categories of land use on offer are flats in residential and plots in industrial, institutional and commercial land use.

The real estate market in its area is expected to gain momentum with new initiative of Yamuna e-way authority. YEIDA has put on offer 280 residential apartments of sizes 29.76 meters and 54.75 meters, while the smaller units number 200 and will cost Rs 11 lakh. The second scheme offers residential flats of bigger sizes and they are 80 in number and it will cost Rs. 19 lakh each. According to authority these affordable units will be allotted through draw of lots to prospective allottees. These low-cost homes will be available through lottery basis only, no other means will be followed to distribute these schemes. These residential segment is developing in sector 22D of YEIDA area.

YEIDA will also auction commercial plots in its area to accelerate development in the area. These commercial plots have been fixed at a prices of Rs. 34,080 per square meters dedicated only for commercial use for investors and entrepreneurs. The authority has decided to finalize its technical bids on June 30, 2016. The development or construction of buildings in these plots will be used only for commercial purpose and will be offered on 90 year lease. The lots will be developed by YEIDA, while construction will have to be carried out by the prospective allottees.

YEIDA in its next scheme, 106 institutional plots are also available for the investors. The allotment price for these plots has been fixed at Rs. 7,560 per square meter. These institutional plots are located in sectors 18, 20 and 22 and the scheme is open-ended. These allotment will be made on the basis of first come first serve basis and based on personal interviews. Meanwhile, authority has put 339 industrial plots on sale up to size 2000 square meters at a price of Rs. 6,405/ sq. m. These plots are located in sectors 29 and 32. This scheme will get closed on June 30, 2016.

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Gurgaon circle rate cut to help market: Realtors

Developers say this is the first time such an initiative has been taken by the Gurgaon administration, proposing a 15 per cent cut in circle rates.

The Gurgaon administration has proposed a 15 per cent cut in circle rate of properties. This move is aimed at pushing more home buyers towards investing in the realty market and injecting momentum in an otherwise sluggish realty market. The proposal has been sent further to Haryana government for approval.

Realtors say that this move by the administration will help to restore confidence in the real estate market which is reeling under a prolonged downturn.

Realty developers are saying this is the first time such an initiative has been taken in Gurgaon which will see the circle rate graph going downward. Otherwise, the past record has been that circle rates have only been hiked, never slashed.

According to the Gurgaon administration report, the property circle rate was kept static in the last two financial years 2014-15 and 2015-16 but this approach failed to raise the home buyers’ sentiment.

 

According to Dimple Bhardwaj, spokesperson of Raheja Developers, this is one of the appreciated course of action by the local body to cut the circle rate which will lead to the correction in property prices. It has been noticed that in some areas of Gurgaon, circle rates are higher than the market rates of land. So this has to be justified accordingly also to boost the realty market.

 

Everyone in the real estate market in Gurgaon/NCR has been expecting some positive steps from the government to boost the market. So, in that regard, this is a positive move. It will reduce the circle rates by 15 per cent in Gurgaon and 15-25 per cent in other cities of Haryana. We (real estate consultants) consider it a good step, says Harish Arora of Saksham Services.

 

This news is good for real estate investors also. The hike in circle rates in past years had pushed up the cost of property registration and investors were not showing interest in real estate. But this news may get them back to real estate. For end users also it’s good news as now they have to pay less stamp duty on the registration of properties. So it’s a win-win situation for both the government (as revenue will increase if the real estate trading increase) and end users/investors who will have to pay less for property registration,says Arora.

 

Understanding circle rate and market rate

Circle rate is the minimum price at which the transfer or sale of any kind of a property takes place. These rates are fixed by the state government and are reviewed from time to time according to market statistics. The circle rates may vary within cities in the same state depending upon the property rates of that locality.

 

Impact on real estate transaction

Property circle rate is the base value on which state government collects stamp duty and registration fee on the property being bought or sold. Apart from stamp duty, government collects 1 per cent of total cost of the property as registration fee. So we should be aware of such hidden costs while making real estate transactions.

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Electronic City: The property hotspot in Bangalore

Electronic City is one of the fastest growing real estate locations in the city and has emerged as a favourite residential destination for all income groups

The continuous rise in the price of property in Bangalore has led to emergence of many realty hubs in the city. Electronic City is one such area which is trending on the top of this list for many reasons.

Besides good social infrastructure, smooth connectivity and high potential for realty growth, Electronic City has some unique features that differentiate it from other realty destinations of the city.

Many IT companies and BPOs have set foot in this area in the past few years and are bright indicators that this area will remain buzzing with real estate activity for coming years. Here are a few dominant features that make it an ideal destination for investment.

Availability of huge land parcels: This area has largest industrial technology cluster in the country. During its inception, the government had allotted 330 acres of land for establishment of electronic manufacturing projects. Instead of developing it as a manufacturing hub, the locality has become a massive IT Hub.  Today, the city boasts of about 300 IT/ITeS companies giving employment to thousands of people.

Smooth expansion: The demand for residential land around IT hubs has increased. This has led to an extension of Electronic City to three phases. The second phase sprawls over 340 acres while additional 122 acres of land was reserved for phase three.

Smooth connectivity and improved social infrastructure: Realty development in Electronic City is triggered by its infrastructure plans. There is 10-km long elevated highway that connects the location to central Bangalore. The famous silk board junction in Madiwala is located only 9 km away. Neeladri Road provides connectivity to another popular IT hub Bannerghatta while NICE road connects Electronic City to various parts of the city. The upcoming metro rail will also boost the transportation network in the city. Some of the popular social infrastructure developments that act as a landmark for Electronic City include Manhattans Park, International Institute of Information Technology, Symbiosis Institute of Business Management, ISBR Business School and Infosys Golf Course.

High supply of mid-budget housing projects: The localities have good supply of residential properties which have huge appreciation value in near future. Though the area is known for construction of luxury villas and high-end projects, but it also caters to low-income buyers. Realty developers are also building 1BHK apartments to cater the high demand of affordable housing.

In Smart City list: The Central government has added Electronic City in the Smart City project.

According to Om Chaudhry, chairman and CEO, Astrum Homes, “Electronic City is an area which is offering good choice of residential properties with great connectivity options. The land availability is immense here and due to low price factor, there is high supply of mid-income housing. The region is infused with world-class facilities and is a housing number of IT companies. Growth in IT sector as well as increase in high net worth individuals, listing of Bangalore in Smart City project and proposed infrastructure by the government will influence the capital appreciation and rental potential of such kind of new suburb of Bangalore. The area is promising for home buyers and investors who are eyeing for next big story in Bangalore.”