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Demonetisation drive: Real estate to be impacted

Demonetisation drive: Real estate to be impacted

The central government’s decision to demonetise Rs 500 and 1,000 currency notes has hinted at positive signals for the real estate fraternity, say market experts.

The Indian real estate sector has witnessed a series of government decisions and laws passed this year. While the quick implementation of RERA Act has increased the interest of genuine buyers and enforcement of new exit policy has brought happiness among the developers fraternity. The latest is the government’s decision to ban currency notes of Rs 500 and Rs 1,000 promise the much-needed transparency in the realty market.

Many experts have called this an excellent step towards bringing transparency in real estate transaction.

“The sudden move taken by Modi Government to demonetize the currency notes of Rs. 500 and 1000 is a welcome measure and will positively work towards the long term content of the Indian Economy as a whole. There will be teething troubles involved in the switch over to a transparent system based on our bank transactions, but the much-required transition will go a long way to help the economy. With more money coming into the banking system, the interest rates are likely to suffer in the long run, which will act as an impetus for investment and contribute to a further improvement to GDP. With reduced/no availability of black money, the property prices are likely to decline which will ultimately lead to better quality and healthy competition among developers, who will be in a position to offer better products to consumers at reasonable prices”, says Dhiraj Jain, Director, Mahagun Group.

Similarly, the money supply in the system will get better utilised in production and productivity and lead to the generation of employment, rather than being wasted in lavish weddings, election rallies and such activities, he adds further.

According to Vikas Pudir, CMD, SKB Group, “This is one of the best decision taken by government which will also go in the favor of real estate market. This action will continue to have a positive impact on the realty market and end users are going to benefit in the long run. The action will boost the sentiments of home buyers.”

It will bring stability in the real estate market: Harish Arora, MD, Saksham Services says, “Right now it’s difficult and too early to declare anything about the impact of currency recall decision by center government on real estate market. But definitely this decision will give a long term stability to the real estate market. The positive impact is that it will ends the fictitious demand created by finances and investors holding black money in real estate and because of that market will become end user friendly. Also the property prices are likely to see a correction in time ahead.  One positive impact of this decision is that it’ll bring transparency in deals for some times, till big currency note not comes in circulation. So for common man or end users it’s a win – win situation as they can avail maximum loan amount at the time of buying house because no cash will be involved in deals. So hopefully this decision will put positive impact on Real estate market.”

“It is a positive move and will affect the real estate industry in a positive way in the coming time as home loan finance will increase and transparency will prevail in real estate transaction”, says Akshay Taneja, MD, TDI Infratech Ltd..

The Confederation of Real Estate Developers’ Associations of India (CREDAI), NCR wing has said that that buying, selling of property, builder-buyer transactions have not affected by the ban as they are all made either through fund transfer or via cheques.

“The market would experience gap in demand and supply scenario. But the demand for the affordable housing sector will not be impacted. It is only because cash component in affordable sector is typically minimal as buyers need home loans for up to 90 per cent of the purchased property price”, says Sunil Pandey of Real Homez.

Residential property market picks up in Noida

Residential property market picks up in Noida

New findings for real estate suggest a significant increase in fresh flat launches in Noida, showing green shoots of recovery in realty market.

India’s realty market may be reeling under sluggish growth but Noida’s residential market is going through a very interesting curve right now. In the previous quarter (Q2) where developers were struggling hard to sell their piled inventories while on the other hand in July-September quarter (Q3) of the current financial year, the Noida real estate market is showing good signs of recovery. Happykeys brings the findings of the quarterly report that shows the Noida residential market on the edge of recovery.

According to a third quarter micro-market report released by real estate consultancy firm Colliers International, has shown clear sign of comeback in term of new flat launches in Noida. A high volume of 4,000 fresh residential units were launched in the city in the last three months compared with only 1,700 fresh launches in Gurgaon. Cut to second quarter – Q2 2016 where Noida and Gurgaon residential market remained low in terms of new launches. This new research has been carried out nationally for the last three months for the cities of Bengaluru, Pune, Mumbai, Chennai, Noida and Gurgaon.

Key findings of the report:

  • In all; 25,000 units were launched across these six cities in the last three months alone
  • Of the total chunk of new residential launches across the country in the last quarter, 16 per cent were in Noida alone
  • Number of cumulative launches in Noida for Q1 and Q2 was 3,000 units, which increased to 4,000 units in Q4
  • Only 7 per cent of the total fresh launches reported in Gurgaon
  • Comparatively, of the total share of launches, Mumbai hosted 28%, Pune 23%, Bengaluru 17%, Noida 16%, Chennai 9% and Gurgaon 7%

Bright spot:

According to the report most of Noida’s residential projects were launched in newly developing sectors along the Noida-Greater Noida expressway and Greater Noida. Despite the fact that most of the demand is in the mid-end segment, the city also saw the launch of a luxury project in Sector 124 at Rs 13,000 sq ft, making it the most expensive residential project launch of 2016.

Impact on current residential market:

Market expert say that this is the positive sign for Noida real estate market. A combination of fresh flat launches coupled with responses on the implementation of the Real Estate Regulatory Act 2016 show people in the city are ready to buy.

 

GDA to work on 3 development plans for city

Gurgaon development authority to work on 3 development plans for city

The GDA will be structured under three different plans — the infrastructure development plan, mobility plan and urban environment and sustainability plans — to provide a better standard of living.

The Gurgaon Development Authority (GDA) will be structured under three different plans — the infrastructure development plan, mobility plan and urban environment and sustainability plans — to provide a better standard of living that people expect from a smart city.

Officials said the GDA team has already started the consultation process and are seeking suggestions from the public through online portals, making it the first development plan with a bottom-to-top approach.

Umashankar, officer on special duty (OSD) for the GDA, said the government looked at various models for GDA such as NOIDA, Jaipur Development Authority and Indore development Authority, and then decided “to invert the pyramid and work on the formation of GDA involving all the stakeholders right from the formation of the body”.

“A city becomes smart when the people get the expected standard of living and have enough employment opportunities. To ensure the standard of living, we will work with the three plans, including the infra development plan, mobility and urban environment plans,” Umashankar said.

Elaborating on the urban environment plan, he said the government will make procedures so that the sustainable projects such as those for soil conservation and water harvesting come with a legal mandate.

“This would be the first-of-its-kind model in the country, where there will be an urban environment plan to ensure sustainable development in a city,” said Umashankar. He was talking at the ‘Making Gurgaon a Smarter City’, a programme organised by the Rotary Club at the Rotary School, Gurgaon, on Saturday morning.

Others who were present at the event included Haryana’s chief secretary, DS Dhesi, state home secretary Ram Niwas, SY Quraishi, former chief election commissioner of India, Gurgaon’s divisional commissioner D Suresh and commissioner of police Sandeep Khirwar.

Talking about the role of GDA in redefining Gurgaon as a smart city, Dhesi said that Gurgaon was suffering from a lack of infrastructure because housing projects are coming up in a sporadic manner, making it difficult to provide basic infrastructure in some sectors, especially sectors 80 to 115.

“Though only one society comes up in some far-off sector, its infrastructural requirement is as good as a fully populated sector which makes it a challenge to provide amenities like road, water and sewage. However, I am hopeful that with the introduction of GDA, these problems will be tackled,” said Dhesi.

Source: TOI

Bengaluru’s trending property markets

Check out Bengaluru’s trending property markets

Bengaluru- the IT capital of India – is proving to be a bright destination for real estate investors. Most new home settlers find this city a perfect place to live and retire later.

It is a good time for the Bengaluru real estate market. In a recent report released by Colliers International, India for Q2 2016; Bengaluru stood first in terms of new residential launches and office space absorption. In April-June quarter of current financial year 24,000 fresh residential units were launched in top six metro cities with Bengaluru witnessing the maximum new launches.

This has changed the sentiments of new home buyers and the demand for residential units is on the rise and will remain consistent for coming years, say property experts. The property prices witnessed an increase as the supply and demand ratio has been neck to neck in the city.

According to the latest report released by real estate consultancy firm JLL India also, Bangalore and Pune would be the two markets which would see a favourable price rise over a period of time.

Om Chaudhry, founder and chief executive officer of the FIRE Capital Fund, says, “Bangalore is a rapidly developing with improved social and civic infrastructure and employment opportunities. The residential property market in Bangalore, has observed a stable phase as compared to other metro cities. Realty market here is comparatively mature than other regions of our country. Some of the key infrastructure projects like the elevated expressway, Bangalore-Mysore Infrastructure Corridor (BMIC), Metro Rail and proposed Peripheral Ring Road will come out to be positive and supportive of Bengaluru real estate market. There are many areas which have emerged across the city and are good for both end-users as well as for investors. Whitefield in Bangalore is such as a remarkable area, becoming an apt locality due to good connectivity, infrastructure and propinquity to work places. Electronic City is another good option for residential properties as the region is infused with world class facilities and is housing number of IT companies. Surajpur road is a booming realty destination with closeness to established IT hubs like Koramangala, Electronic city, Whitefield etc. This locality is emerging as a rental hub with great connectivity options. Areas such as Bannerghatta Road, Bellary Road, Hennur Road, HSR Layout are also promising for home buyers and investors who are eyeing for next big story in Bengaluru”.

Top localities by price

Bengalur trending property markets

According to Happykeys data, the top localities Bengaluru are Electronic City, Whitefield, Sarjapur Road, Hennur Road, HSR Layout and Bellary Road. Though Sarjapur Road has the highest average price (Rs. 4,000 – Rs. 7,000) per sq ft , Electronic City has witnessed the steepest rise with 25 per cent hike in property prices in last two  years.

All these localities are in high demand among new home buyers and investors due to high supply of all kinds of property. It is noticeable that Electronic City is one of the most happening real estate market of Bengaluru and has lower average price (Rs. 2,900 – Rs. 5,000) per sq ft.

Locality profile

All six localities have been given good ranking in terms of key livability parameters. The civic infrastructure of these areas are almost well developed. All daily needs of residents are available in proximity to the locality. Shopping complexes, entertainment hubs, schools, educational institutions, health centers, restaurants are established within the locality itself. The railway station is easily accessible from these areas.

They offer an ideal ambiance for IT professionals, families, senior citizens and young couples. A good location is important when buyimh a home. New home buyers should check thoroughly for discounts also. Real estate builders are offering good deal around this festive season.

Residential inventory available

Here’s is a summary of residential units available with their prices. In Electronic City, a 1 BHK flat will cost between Rs 15 – 40 lakh. In Whitefield, the same will cost Rs 25 – 42 lakh and in Sarjapur you need to pay Rs. 19 – 60 lakh.

A 2 BHK flat will cost between Rs 25 lakh – 1 crore in Electronic City, Rs 45 lakh – 1.5 crore in HSR layout and Rs 21 – 90 lakh in Bellary Road.

While on the other hand 3 BHK apartments are bit more expensive in these areas. In Electronic City a villa and 3 BHK flat costs around Rs 70- 80 lakh.

Real estate market trends

Experts say, Bengaluru has been always a star performer in terms of new residential launches and inventory absorption. The balance between demand and supply of the housing unit in the city remains balanced. The real estate market of Bengaluru is stable and has steady prices. The city has neither experienced violent ups and down nor a recession which could generate negative sentiment in home buyers or investors.

A high proportion of new launches was concentrated in the peripheral areas of existing commercial hubs in the city. In terms of location, Devanahalli, Budigere Cross and extensions of Kanakpura Road comprised a significant share of total new launches”, says Chaudhary.

real estate hotspots across India to buy homes

Top 3 real estate hotspots across India to buy homes

Experts believe that the realty market of India can be a promising destination for investors.

If you are planning to own a house this year, one that fits your pocket and holds a great scope for price appreciation; check out our list of top 3 real estate destinations in India where one could buy property for investment or end usage purposes. Happykeys identified these realty hubs based on connectivity and infrastructure, integrated model township, proximity to commercial hub and relatively affordable prices. These hotspots are ranked based on the high livability index and number of available inventories –

  1. South of Gurugram (Sohna), NCR

South of Gurugram is fast emerging as a prime residential location. According to a report by Cushman & Wakefield – the areas of south Gurugram such as Sohna have shown promising improvement on many key livability parameters.

Happykeys micro-market report reveals that the locality has potential for future urbanisation. The report is based on assessment of key parameters such as existing and potential connectivity with emerging commercial hub, health care infrastructures and educational facilities, rail and road connectivity etc.

Gitamber Anand, President, CREDAI says, “Sohnais an upcoming location with great potential for the future. We are looking at it very keenly especially to see the support the government initiatives are providing to this location. We are seeing definite interest from end users and investors for the currently underway projects.”

Major factors favouring Sohna:-

  • Excellent connectivity
  • Integrated model township (as per new city master plan)
  • Rail Corridor along Kundali-Manesar-Palwal Expressway
  • Mumbai – Delhi corridor
  1. Horamavu, Bengaluru

Horamavu is strategically located centrally between Whitefield and Manyata Tech Park. And these two suburb areas cater major chunk of young IT professionals. Horamavu- the sub-city of Bengaluru has become an important realty market of India.

According to R. Rohit who runs a property brokerage service in Chikkanna Line, Horamavu, “Strong connectivity with the rest of the city and even suburb areas make Horamavu a preferred choice of investment for many. The locality is surrounded by KR Puram, Hebbal, Ramamurthy Nagar, Banaswadi and Kalyan Nagar. The area is witnessing massive construction that leads to creation of affordable homes. In and around commercial area pushing the demand for homes in the locality. The locality is well connected through Outer Ring Road (ORR) and Commercial Street such as MG Road. It is also in proximity to HAL Airport. It is also known for housing IT giants and multinational companies, thus, witnessing a rising demand for real estate from professionals working in and around”.

Major factors favouring Horamavu:-

  • Close to ORR
  • IT hubs at Whitefield

 

  1. Magadi Road, Bengaluru

Located towards west of Bengaluru, Magadi is another location that has a huge potential in terms of real estate development. The popularity of this location is largely based on its smooth connectivity and easy access to Bengaluru airport.

Magadi is located at a distance of 42 km from the Bengaluru East Railway Station. The International Airport- Kempegowda is 80 kilometres away via National Highway 07.

The real estate market of Magadi is driven by its proximity with the BengaluruAirport. The flat built-up area in Magadi ranges from 1,200 – 2,400 sq. ft.

Major factors favouring Magadi:

  • Good connectivity via Nice Road
  • Outer Ring Road make easy access to other parts of the city
Gurugram Sector 83

Gurugram Sector 83: An emerging residential hub

Real estate market of Gurugram has always been promising. We take you through a popular location- sector 83 and understand how realty market is moving there.

This new emerging sector is witnessing a buzz in property market with ample housing options to choose from –  luxurious flats, row houses, villas and townships. When the realty market in other places of Delhi-NCR nearing stagnation, the property prospects of this region are still considered favourable. This is also visible in the significant increase in property prices in the sector.

According to the Happykeys Property Price Tracker Report – the realty prices in sector 83 was Rs 6,800 per sq ft in January 2016 which rose to Rs 7,000 per sq ft in September later. This scenario validates the high demand for flats in Gurugram’s sector 83 has been increasing. This rising demand for apartments in the area is backed by the establishments of IT and BPOs offices in locality.

Happykeys takes a look and describes why demand for flats in the area has been rising in Gurugram’s sector 83:

Growing commercial hub in the vicinity –

The improved civic infrastructure and excellent connectivity via nice road in sector 83 increases the scope for commercial real estate market in the locality. The infrastructure of the area is good, hence inviting more and more companies to set up their offices.  The giant multinational IT companies such as HCL and Adapt software Ltd. have already established their offices in sector 83. This scenario has led to an increase in demand for open plots in the sector.

Buzzing with residential estate activity –

The sector 83 residential market is mainly dominated by end-users, due to high supply of flats and apartments. The demand for high-end luxury apartments in the area is driven by working professionals in the locality which are mainly IT class with handsome source of income.

Some key developers who have their ongoing projects in sector 83 include Emaar MGF, Vatika and V Square. Some of the real estate projects lined up by these builders include Lifestyle Home and City Homes by Vatika Group, Paradise by Mapsko etc.

The average price of an apartment in Sector 83 is Rs 5,100 per sq ft with built up area ranging from 500 – 3,745 sqft. Currently, there are 6 projects in progress in and around Sector 83.

Shopping malls & entertainment –

Popular shopping centres around Sector 83 include Mega Mall and Central Mall. Recreational spots around the locality include Appu Ghar, Sultanpur Bird Sanctuary, Tau Devi Lal Bio Diversity Park and 32nd Milestone.

Govt nod for mixed use on SEZ land in Noida

Govt nod for mixed use on SEZ land in Noida

The UP government has cleared a proposal to change the land use of about 1,000 hectares along the Noida-Greater Noida expressway.

The UP government has cleared a proposal to change the land use of about 1,000 hectares along the Noida-Greater Noida expressway that had been earmarked for Special Economic Zone (SEZ) in Master Plan-2031, more than two years after the Noida Authority asked for it. The land will now be categorised as mixed use, including residential use in 865 acres.

The Authority had proposed the following pattern of land use division — 50% for industry; 15% for residential, including group housing and allotment of farmers’ plots; 10% for commercial use; 10% for institutional use; and the remaining to be earmarked for planned development and green spaces. The SEZ land is located across nine sectors, including sectors 145, 146, 147, 149, 156 and 157, spanning the villages of Gulavli, Jhatta, Mohiyapur, Nalgada.

The Authority has been facing a shortage of land and this approval from the state government will provide us with a much-needed land bank,” said PK Agarwal, CEO of Noida Authority. “We will soon start the development of this land. Not only will it help us create industry and housing, it will also generate employment for many,” he added.

According to officials, the land had been notified for developing the SEZ in 2006 and allotted to Reliance-Anil Dhirubhai Ambani Group and nine other IT companies.

It has been lying vacant and idle for many years now,” said SC Gaur, chief architect planner of Noida Authority.

As updated on March 14, 2016.

Fast Facts:

According to Noida’s Master Plan 2031- Noida development authority has allocated 98.59 hectares of land for the development of mixed use land projects. A city level commercial center has been proposed in sectors like 32 and 25A near city center. Some major commercial centers have also been proposed along the Noida-Greater Noida Expressway. The Noida Authority had already declared sectors like 62, 78,105, 108,124,125, 126, 127, 132, 135, 136, 142, 143, 144, 153 and 154 open for commercial activities.

Keeping this fact in mind, Noida Development Authority has prepared a roadmap to promote mixed land-use activities along the several parts of Noida, Greater Noida and the Expressway. This will subtly fulfill the rising demand for commercial and retail structures in this region