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affordable housing

Realty market rides on new affordable housing launches

A new real estate research shows high demand for affordable housing has led to doubling of launches in first half of 2016. Here is what is driving this market.

The introduction of an affordable housing scheme has changed the face of real estate industry in the NCR region, even when the development of high-end properties hasn’t come to a halt. The current real estate market is driven by an affordable housing price tag. Steady demand for affordable housing and the government’s move to increase its supply has led to a near doubling of new launches in this segment in the first half of 2016.

In a recent report by real estate services firm Cushman & Wakefield – the number of new launches in affordable housing has increased by nearly 100 per cent on year to 17,000 units across top realty market such as Delhi NCR, Mumbai, Bangalore, Pune, Kolkata, Chennai, Ahmedabad and Hyderabad.

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. Developers across the country know better the potential demand in this segment and new launches is part of their strategy”.

 Property supply and absorption trend observed in quarter (Apr-May 2016)

As per the study by Cushman & Wakefield, total launches across the segments rose by 17% from a year ago to 60,000 apartments. Low-cost housing saw the highest number of launches at 36,267 units which is 10% on-year rise. Pune witnessed highest number of launches with 4,170 units followed by Bangalore at 4,155 units. In the first quarter of 2016, Mumbai was on the top with over 12,000 units while Bangalore stood second with approximately 11,000 units of new residential units launched.

However, the performance of Delhi-Capital Region is recorded poor in this segment. Affordable housing launches in Noida and Greater Noida, recorded a drop of 44 per cent. The Delhi-NCR locality witnessed 19 per cent decline in average launch price from a year ago, while the average unit saw a 5 per cent increase. The recent hike in residential land allotment rates in Noida might have affected the market, says real estate experts.

City-Wise New Launches in the Affordable Housing Segment

  • Pune – 4,170 Units
  • Bengaluru – 4,155 Units
  • Delhi-NCR – 2,985 Units
  • Ahmedabad – 2,445 Units
  • Kolkata – 2,000 Units
  • Mumbai – 1,266 Units
  • Hyderabad – 109 Units
Bangalore real estate

Things to know about Bangalore real estate

The establishment of world-class IT industries, advent of metro and good arterial roads has made Bangalore one of the most sought-after realty destination in India. Here are more details.

A study on real estate market reveals that despite market slowdown Bangalore has emerged as a strong and mature realty market in the last couple of years. Recent new launches in the low cost housing options within price range of Rs 4,000- 5,000 per sq ft have grabbed the buyer attention, with good inventories in different corridors of the city.

According to real estate consultancy firm JLL, inventories will soon dry out in 2016 and 2017 and property prices will firm up or perhaps many micro markets may go up significantly.

Especially, the IT driven micro markets of Bangalore city such as Whitefield have shown signs of strengthening in the last one year. Some locality with projects in the affordable and mid segment category have performed well in the pre-launch and resale stage itself.

In recent study of Bangalore realty market, the affordability factor is playing a decisive role during the sale of flats. The 2 BHK and 3 BHK apartments of sizes between 800 – 1300 sq ft are being offered, keeping the buyer budget in mind.

Infrastructural Development

The civic infrastructural development of the city is monitored by Bangalore Development Authority (BDA). Moreover, the entire Bangalore Metropolitan Region is divided into five Area Planning Zones (APZ) and six Interstitial Zones (IZ).

Peripheral Ring Road (PRR): 65-km long – 1,920 acres – Connects Hosur Road and Tumkur Road, cutting across Old Madras Road and Ballari Road. The PRR connects major highways and city roads from Tumkur Road and Hosur Road.

Satellite Town Ring Road: This project is to connect Bangalore’s satellite towns – Ramnagar, Dobbespet, Devanahalli, Hoskote, Attibele and Magadi.

Signal-Free Corridor to the International Airport: The 22-km stretch between Hebbal flyover and the International Airport is fully developed as a signal-free corridor connecting Kempegowda International Airport, which has reduced travel time to 20 min.

Prime Localities

Central Bangalore: MG Road, Lavelle Road, Langford Town, Vittal Mallya Road and Richmond Road

East Bangalore: Whitefield, Old Airport Road, Old Madras Road, KR Puram and Marathahalli

West Bangalore: Tumkur Road, Yeshwanthpur, Malleswaram, Rajaji Nagar and Vijay Nagar

North Bangalore: Hebbal, Bellary Road, Hennur, Jakkur, Yelahanka and Banaswadi

South Bangalore: Koramangala, Sarjapur Road, Jayanagar, JP Nagar, HSR Layout, Kanakapura Road and Bannerghatta Road

Prominent Developers

Prestige Group: The group came into real estate projects in 1986. Today, it is known as one of the trusted realty developers in South India. The Prestige group has 65 ongoing projects and around 28 under-construction projects.

Brigade Group: Brigade Group has around 35 years of industry experience with presence across several cities in South India. Sonata in Vasanth Nagar, Metropolis in Mahadevapura, Bangalore and Crescent in Frazer Town are some of the top projects by the builder.

Sobha Group: Established in the year 1995, the Sobha group brings 21 years of experience in the industry. Today, the group has done with total 114 projects and 31 ongoing projects in the Bangalore city.

Tata Value Homes: The Tata carries legacy of experience in the real estate industry too. The group ventures into real estate in 2009. In 6 years the group has done with 15 projects and 7 ongoing residential projects across the country.

DMIC township

DMIC township work reviewed, 12% complete

Integrated Industrial Township in Greater Noida under the Delhi-Mumbai Industrial Corridor (DMIC), for which land is being developed, is on track with IIT-Delhi’s approval of its infrastructural design.

The Rs 600-crore Integrated Industrial Township in Greater Noida under the Delhi-Mumbai Industrial Corridor (DMIC), for which land is being developed by Shapoorji Pallonji, is on track with IIT-Delhi’s approval of its infrastructural design.

The secretary, department of industrial policy and promotion under the Union ministry of commerce, Ramesh Abhishek, and Alkesh Kumar Sharma, chief executive officer and managing director, DMIC, on Saturday conducted a site visit of the project, which is under construction. Satisfied with the physical progress of the township, officials told TOI that infrastructure design services of the project have been vetted by IIT-Delhi.

According to officials of the Greater Noida Industrial Development Authority (GNIDA), officials conducted a detailed inspection of the site besides reviewing the design phase of the project, which is now complete. “Since the design phase, which is critical, is mostly on paper, so far the project has completed only about 12%,” said Deepak Agarwal, CEO, GNIDA. “However, work has started on the ground and now the project will move ahead at a fast pace. By October-November we plan to open sale of plots in the area”.

Officials said IIT-Delhi has approved the design for infrastructure services including roads, sewerage, drainage, water supply, etc. “Design for the bridge, solid waste management is likely to be approved next week,” said K K Singh, officer on special duty (OSD – projects), GNIDA. “Currently, earth filling work is being carried out. We have to fill about 8 lakh cubic metres of earth. Our target is to put roads in place in the next four months so that future investors can approach their plots,” he said.

Sprawling across nearly 335 hectares of land, the township will be located in the Dadri-Noida-Ghaziabad investment region of the corridor

Officials said that the township would be located in Ecotech 11A in Greater Noida. Its boundaries include Ghodi Bacheda village, Maicha village, Howrah railway line and the Eastern Peripheral Expressway.

 

About the project:

 

The Delhi-Mumbai Industrial Corridor Project is an Industrial development project planned by Government of India and sponsored by state government. This ambitious project is world’s biggest infrastructure projects. The project include 24 industrial regions, eight smart cities, two airports, five power projects, two mass rapid transit and two logistic hubs.

4 most affordable localities in Gurgaon

4 most affordable localities in Gurgaon

While property prices may be increasing across several parts of Delhi-NCR circuit, there are still areas that promises residential property within budget price bracket. Here are four such localities from Gurgaon.

Whether high-end residential societies, studio apartments, resale properties or affordable housing options, Gurgaon real estate market has always been first choice for home buyers owing to the many options available. The housing demand here is driven by the flourishing IT sector and migration of working professionals from different cities.

If you are one of working professional in Delhi–NCR region and planning to buy house in the Millennium City, here are the four most promising areas in terms of residential budget property availability:

Hasanpur

Hasanpur is new emerging residential destination of Gurgaon. It is located 27 km from the Indira Gandhi International airport. The long stretch of national highway -08 passing through the suburb provides smooth connectivity with prominent locations of Gurgaon. Sectors such as 92, 69, 107, 50, 22, 62, 88B and sector 24 Dharuhera are the emerging localities of Hasanpur and buzzing with real estate activity too. The locality has witnessed several new project launches which are in affordable price range. The average property price here ranges between Rs 1,600 – 2,500 per sq ft.  The prominent real estate builders such as RLF, Paras City Homes, Piyush Group, MGI developers etc. are active in this locality. The affordable projects lined up in this area – Sarakar Residency, Parnkuti, The Habitat etc.

Sector 94, Bhiwadi

A well-developed locality, Sector 94, Bhiwadi in Gurgaon is witnessing many real estate activities. The locality is buzzing particularly with regards to several upcoming new residential projects. Sector 94, Bhiwadi is surrounded with many well-developed regions like Sector 106A, Sector 107, Sector 51, Sector 54, Sector 56, Sector 57, Sector 61, Sector 64, Sector 65 and Sector 73 in Bhiwadi. These sectors surrounds the locality which attracts home buyers to buy property in this locality.

The average property prices here ranges between Rs 2,250 – 2,700 per sqft. Some of low cost property options available in this locality include Trehan Home Developers Delight Residence, SSG Group Shivraj Residency, Innovative Groups Bhiwadi Heights, Trehan Home Developers Status Residency and SSG Group Shivraj Residency which offers 1 BHK and 2 BHK apartments.

Sohna Road 

After Gurgaon’s central location, Sohna Road is the fast emerging locality in the Delhi-NCR real estate market. It is growing constantly in terms of livability index and civic infrastructure. The area is located south of Gurgaon and proximity to Delhi and international airport. The locality is famous for affordabile housing projects and this has been rated high in a market research report by Cushman & Wakefield too. Most of the residential projects launched here lie between the range of Rs 37 – 58 lakh for 2 BHK flats and Rs 61 – 89 lakh for 3 BHK flats.

Sohna Road has number of functional shopping malls such as Galleria, Omaxe, Ninex Mall and is blessed with almost all civic amenities like schools and hospitals in the vicinity.

Sector 33, Bhiwadi

Sector 33, Bhiwadi is one of the most comfortable area of Gurgaon which offers ample property options like 1 BHK, 2 BHK and 3 BHK apartments with built up area ranging between 555 sq ft to 1,950 sq ft. The sector is enclosed with some of the well-developed area such as Sector 15 Bhiwadi, Sector 16 Bhiwadi, Sector 18 Bhiwadi, Sector 22 Bhiwadi and Sector 3 Dharuhera. The property price here ranges between Rs  2,600 – 3,000 per sq ft.

Airport in Gr Noida

Airport in Gr Noida gets defence ministry nod

The proposed Jewar international airport has moved a step ahead with the ministry of defence giving formal no-objection certificate for the ambitious project in Greater Noida.

The proposed Jewar international airport has moved a step ahead with the ministry of defence giving formal no-objection certificate for the ambitious project in Greater Noida, adjoining the National Capital Region of Delhi.

According to sources, the NOC was given only last month after BJP MP from Gautam Buddh Nagar and former minister of state for civil aviation Mahesh Sharma sought a push for developing airports in small towns as part of regional air connectivity scheme (RCS). Sharma has been pressing for the project, more so in the wake of ensuing UP assembly elections due in about six to eight months.

The Jewar airport, conceptualised to ease growing traffic congestion in New Delhi IGI airport had incidentally got all clearances way back in 2003. The project, however, was put on hold during the previous Congress-led United Progressive Alliance (UPA) government because of the clause that barred an airport to come up within 150km radius of the existing Delhi airport, which has been built and is being operated by GMR Infrastructure-led consortium Delhi International Airport Ltd (DIAL).

Even as the project got delayed consistently, Centre came up with a new civil aviation policy in 2011. When Uttar Pradesh Chief Minister Akhilesh Yadav stormed to power in UP in 2012, it contemplated shelving the project in Jewar while proposing a new one in Agra or Mathura.

The project, however, revived once again after BJP MP Mahesh Sharma started pressing for an international airport in his parliamentary constituency. “Eventually, state government had to start all over again,” said a senior UP government official. The project got AAI nod, while UP government was asked by the Centre to push the project afresh before the MoD. “The project will now need clearance from the steering committee of the ministry of civil aviation,” said a senior official in the civil aviation department.

Jewar airport project has been competing with the one proposed in Rajasthan’s Bhiwandi district, which also comes under the NCR. In fact, the ministry of civil aviation has already given its clearance to the Bhiwandi airport project last year. The Jewar airport project was also taken up keenly by the previous Mayawati government in UP. In fact, the project was one of the key features builders and real estate bodies used to lure the buyers with to invest in the upcoming residential and commercial projects.

Serviced apartments pick up in Noida and Gurgaon

Serviced apartments pick up in Noida and Gurgaon

A significant increase has been recorded in the demand and supply of serviced apartments in the NCR circuit due to the presence of large number of MNCs. More details available here.

Over the last few years, a huge surge has been noted from both the demand and supply of serviced apartments in the Delhi-NCR circuit. There is a keen interest of both buyers and investors in this market. Moreover, the rise of this segment has given birth to new secondary market in the Delhi-NCR real estate market.

A serviced apartment is a kind of furnished accommodation with all modern facilities and amenities such as modular kitchen, modern communication facilities like internet, fax and telephone connection. Some apartments provide conference rooms also.

The idea of such apartments started grabbing attention of Indian realty developers in 2003-2004. The concept gained its popularity in big metro cities, such as the Mumbai, Bangalore, Delhi and now in the NCR regions. Most of the new projects launched have registered good inventory sold in pre-launch stage”, says Narendra Diwedi of Ojaswi Associates.

Cost based analysis

The serviced apartments serve boon for owners as these assets can be leased out easily. Investors can reap out decent rental return when compared to rental value gained on standard hotel rooms. Property owners easily get different types of tenants including business travellers or working professionals.

The grey area in this segment is the initial investment rate. It can put extra burden on investors pocket as rates are higher than the residential apartments. For instance, the property prices of serviced apartments along the Noida- Greater Noida Expressway, is around Rs 6,000 – 7,000 per sq ft. While other apartments option on the same stretch will cost Rs 4,000 – 5,000 per sq ft.

 

Check out the serviced apartments that are coming up at various locations of Noida and Gurgaon

 

Project Name Location Size Configuration Price per sq. ft. (in Rs.) Project status
Gaur Suites Greater Noida West 500 sq. ft. 1 BHK Rs. 6,000 / sq. ft. Under-construction
AIPL Business Club Sector 66,  Gurgaon Studio & Serviced Apartments On request Under-construction
Unnati Fortune Vesta Suites Sector 144, 500 sq. ft. 1 BHK Rs. 6,000 / sq. ft. Under-construction
Wave City Centre Livork Sector 32, Noida 672 sq. ft. 1 BHK Rs. 8,950 / sq. ft. Possession Jun – 2017
M3M One Key Resiments Sector 67, Gurgaon 550 sq. ft. 1 BHK Rs. 9,700 / sq. ft. Under-construction
Central Park 3, The Room Sector 33, Gurgaon 837 – 1188 sq. ft. 2 BHK Rs, 6,008 / sq. ft. Under-construction
Ireo Ascott Managed Sector 59, Gurgaon 908 – 1692 sq. ft. 1-2 BHK Rs. 15,750 / sq. ft. Possession in 2017
Shubhkamna Loginn Sector 137,   Noida 500 sq. ft. – 995 sq. ft. 1 BHK Rs. 6,200 / sq. ft. Possession March 2017

 

Greater Noida metro

Work on second substation for Noida Metro begins

With the DMRC gearing up to start metro services between Noida and Greater Noida by Dec 2017, the corporation has started to set up two substations to supply power for the stations and trains along its route.

With the Delhi Metro Rail Corporation (DMRC) gearing up to start services on the elevated line between Noida and Greater Noida by December 2017, the corporation has started to set up two substations to supply power for the stations and trains along its route. DMRC laid the foundation for the second of the two Receiving Sub-stations (RSS) along the corridor.

These substations will be 100% gas-insulated and maintenance-free. The construction of the first one was launched in January this year. These receiving substations will cater to the energy needs of the Metro corridor. Coming at a cost of Rs 100 crore, the stations — located in sectors 148 and 83 in Noida — will be completed by December 2016.

Reliable electric power is a critical requirement for operating a Metro network. The receiving substations convert electric power to an appropriate voltage and frequency for the metro to operate. The two RSS will be constructed by DMRC and the work contract has been awarded to Siemens (India).

Anoop Kumar Gupta, director electrical, DMRC, said, “At both RSS, incoming power supply at 132kV voltage level will be taken from the grid substation of the state electricity board, namely, Uttar Pradesh Transmission Corporation, and will be stepped down to 25kV for traction (train operation) purpose and 33kV for power to feed station loads, like lighting, air conditioning, lifts, escalators, etc.

Officials said these RSS would be provided with gas-insulated systems (GIS) and would be fully automated. They will have a series of eco-friendly features such as solar power panels, LED bulbs, carbon dioxide sensors and a rainwater harvesting system, officials said. There is also a proposal for the substations to generate their own power for their lighting and air conditioning needs.

The power from this substation is planned to be made available by August 2017. Work on the substation in Sector 148 is already under progress and is about 25% complete.

Once the metro corridor between Noida and Greater Noida becomes operational, it will provide easy commute to the residents. The new infrastructure development in the locality is likely to push the real estate market. Experts say that, this would be the milestone achievement in the history of Noida which will inject new life into realty market and property prices will increase significantly.