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Property News
 
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Rightpropertydeal.com is a New Technology Real Estate Portal
Among the myriad of options for listing your property for selling or renting or simply searching for property to buy, there is no good portal which actually results into a deal done fast and efficiently. RPD is aiming just that for you through its free services on the internet. The difficulties associated while buying, selling or renting a property are well known. If you want to sell your property then you are invariably offered less than the market value under some pretext such as the market is down presently or your property has some defect or it is not well located. Whereas when you want to buy then you have to pay through your nose, no matter what the market condition is, there is always a scarcity of the kind of property you are interested in, whatever be the property location or defect in it, you are invariably told a property is a property and has same value as that of a property which is well located. It is also not an easy task to find a trustworthy property dealer, agent or broker who would get the best monetary deal for you, take care of all legal aspects and charges nominally. Heres a new technology portal which is simple, easy, free and provides a direct link between parties at the click of a button. Team RPD says they are committed to facilitating transparency in property deals and better their technology each time to achieve this aim. Instead of providing lakhs of property options where you find it difficult to make decisions, RPD is happy to provide just a few good options for your benefit. New circle rates in NCR With hi-tech townships, industrial and commercial development coming up at a rapid clip, circle rates are set to go up by in the NCR, says A K Tiwary. Even though property prices have not skyrocketed in the NCR in the last 6-10 months, the concerned authorities have a proposal to review the circle rates here. The government of Haryana has already hiked the circle rates by 10-12% in Gurgaon and Faridabad. Now, the government of Uttar Pradesh is also set to hike circle rates in Noida-Greater Noida and Ghaziabad by 10-20%. The new circle rates have been proposed to bridge the gap between the real estate prices and existing sector rates and the sub-registrar offices have been asked to submit their proposals. It is expected that the new circle rates will be effective from end-July in Noida-Greater Noida and Ghaziabad. The new circle rates for a hyper-potential zone like Gurgaon have already been tagged in revenue records and already effected. In DLF City Phase 1-4, where the market rate of land ranges between Rs 50,000 and Rs 70,000 per sq yard, the circle rates have been increased from Rs 19,000-21,000 to Rs 21,000-23,000, according to revenue officials. Revenue officials say that in Sushant Lok Phase 1-3 the circle rates now stand revised at Rs 20,000-21,000 as against Rs 18,500-19,000 per sq yard. K P Yadav, assistant stamp commissioner, Ghaziabad, says that after receiving proposals from sub-registrar offices, the district administration will revise the circle rates. The new circle rates are likely to be effective from end-July. According to some reports, the new circle rates in Mehrauli village near NH-24 will be nearly Rs 1 crore per acre. The new rates will be on the basis of distance from the National Highway. The current circle rates of Bamheta village are Rs 80 lakh to Rs 1crore per acre, while the revised rates are likely to be Rs 90 lakh to 1.1 crore per acre. In revenue oriented villages like Dundaheda, Arthla, Sihani, Nahal, Dhukna, Karhaida, Masuri, Dasna, Akbarpur-Behrampur, Mainapur, and Sadarpur the circle rates are likely to be hiked by 10-20%. Rakesh Yadav of Antriksh Builders says the reason behind circle rate revision is that these villages are near NH-24 and with most of the high-tech townships and developmental projects coming up here land becomes costlier. Interestingly, there is a likelihood of a steep increase in the circle rates for residential land. The circle rates at Ramprastha, Surya Nagar, Chandra Nagar, Vaishali, Kaushambi, Indirapuram, Vasundhara, Kavinagar, Rajnagar, Nehru Nagar, Brijvihar, Lohia Nagar, Patel Nagar and Rajendra Nagar are also likely to be hiked by 10-20%. Obviously, the demand of residential, industrial and commercial plots plays a big role in pushing the revision in the circle rates. Lalit Srivastava, chairman of Noida-Greater Noida authority, commenting on the proposed circle rate, says the right implementation of new circle rates is more important in valuing the price index and area development. For securing ones property, one must pay the stamp duty individually; otherwise, a person can have no legal right to claim that property. Recently, the district administration and the authority declared a list of defaulters in residential, commercial, institutional, and industrial plots and crores of rupees had to be recovered from these defaulters. Thus, paying stamp duty makes it easier

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The realty sector has demanded some big-ticket fiscal incentives in the coming Budget
The realty sector has demanded some big-ticket fiscal incentives in the coming Budget to lift the sector out of the current slump, writes Prabhakar Sinha The Budget was losing importance of late as the economy was on an auto mode, growing at around 9% for five years in succession, prior to 2008-09. But the global slowdown has changed all that, making industries world over look towards their governments for help and stimulus packages. No wonder that the coming Budget will be one of the most important events for the industry in the recent past. Every industry, from export units to real estate, is looking for some packages from the government to regain the high growth path of the recent past. Real estate sector is a major employment generator - second only to the agricultural sector - in the country. This Budget has given a historic opportunity to Indian government to give the much needed boost to real estate sector, which has been facing various bottlenecks, and it is time to set things right, says Shruti Gupta, head of real estate consultancy firm Hamptons International, India. Sanjeev Srivastava, CMD of Assotech group, echoes Shruti and says the sector is expecting an encouraging announcement in the Budget so that the activities could pick up, which is also necessary for the turnaround of manufacturing sector. Section 80-IB (10) The reintroduction of Section 80-IB (10) of Income Tax Act in the coming Budget is high on the wish list of developers this year. This section caters to the exemption of income tax on the profit made by developers in constructing small houses of less than 1,000 sq ft in Delhi and Mumbai, and less than 1,500 sq ft in other cities. The provision lapsed on March 31, 2007. If this provision is reintroduced, the construction of small-size apartments will get encouragement. Council of real estate developers, NAREDCO in its pre-Budget memorandum to the finance minister said there is a huge demand for smaller houses in the country, which requires a lot of private investment. But as the real estate industry is passing through unprecedented slowdown, there is an urgent need to boost housing activity by restoring fiscal concessions available before 2007 under Section 80-IB (10). Also, since a large number of projects sanctioned before March 31, 2007, which were to be completed in four years from the end of financial year in which they were sanctioned to get the tax concessions, have not been completed due to liquidity crunch and fall in demands consequent to economic slowdown

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Thirty Indian cities, other than major metros will be the focus of new Real estate activity over the Next decade
With the slowdown cloud gradually drifting away, domestic realty players can now seriously consider expanding rapidly into Tier III cities.Over the longer term it is anticipated that the 30 Indian cities will offer new opportunities for both domestic and foreign real estate investors,developers and occupiers. The India 30 includes all tertiary cities with populations over 1.5 million (16 cities), together with 14 smaller cities selected on the basis of IT, retailer and hotels activity. The India 30 account for a relatively small proportion of real estate activity (21 per cent of modern offices and 34 per cent of shopping malls), but with 41 per cent of the countrys wealth, the potential of these tertiary markets is clearly evident, according to a recent report entitled India 30 Real Estate Opportunities in Tier III cities by Jones Lang LaSalle Meghraj. The first group of five cities Ahmedabad, Chandigarh, Kochi, Jaipur and Nagpur already have rapidly growing real estate markets due to city size, market reach and connectivity. The second set of five cities Coimbatore, Mangalore, Thiruvananthapuram, Visakhapatnam and Goa are continuing to emerge as favoured real estate destinations amongst the India 30 due to the unique aspects that they can offer affordability, tourism and a rapidly developing consumer base. The top 10 cities have disparate risk profiles with Chandigarh, Kochi and Nagpur scoring the same risk levels as Indias Tier I and Tier II markets. The remaining eight cities, while possessing slightly higher levels of risk, should not be ignored as opportunities continue to abound there for those savvy enough to understand the unique dynamics of these markets, the report said.

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Demand from IT sector gets back some sizzle for SEZ
Demand for special economic zones (SEZs) appears to be reviving even as realty developers are shying away from developing these tax-free enclaves due to liquidity crunch, according to experts who are tracking SEZs. Recently, DLF requested the commerce ministry to derecognise at least five of its nine notified information technology SEZs. Parsvnath, another real estate developer, put its plans for developing 12 SEZs on hold and stopped land procurement for most of them. However, market experts say that this does not mean that demand for such SEZs, especially aimed at the IT sector, has crashed. In the past two weeks, I have got many queries on IT related SEZs as well as some engineering zones, said Tapan Sangal, Senior Manager, PricewaterhouseCoopers, an audit and consulting firm. Simultaneously, investors are also doing some due diligence on SEZ projects to see whether some projects are bankable, Sangal added. According to the data available with the commerce ministry, there are 274 notified SEZs in the country which are eligible for tax benefits under the SEZ Act of 2005. However, many of these notified SEZs have been witnessing muted development activity, due to lack of funds as well as absence of interest from prospective clients. Experts say they have also come across some immediate demand for the SEZ space in the National Capital Region in the past few days. We see a demand and supply mismatch for SEZs, at least in North India. While demand is there, developers are now looking at bridging their present cash flow requirements and have put SEZ projects on hold, said Rajiv Chugh, partner, Ernst and Young. Analysts feel that good infrastructure and talent pool in North India could be a possible reason for the immediate requirement of certain foreign companies in setting up base in SEZs. Overall, the new queries, as well as the demand for space, experts feel, has resulted out of the new business strategies that are looking at cost effective business locations. Companies abroad, especially in the US, are undertaking cost benefit analysis of outsourcing in the wake of the local tax benefits offered to them to retain jobs in the US. However, the cost arbitrage would still make these companies realise that it is still economical to outsource certain processes to India, added Chugh. In a region like Chennai, of the 5.8 million square feet of SEZ space available, only 0.6 million square feet is vacant. This is not a bad vacancy. Developers have put SEZ projects on hold. Hence, existing players, with ready available space, should do well, said Ramesh Nair, Managing Director, Jones Lang LaSalle Meghraj. SEZ denotification to improve cash flow management: While experts see some renewed interest in the SEZs, real estate developers are tuning their business interests to suit their immediate cash flow requirements. Analysts point out that a SEZ project means back-ended revenues.

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REALTY COSTS - Oct to Dec 08 saw steep fall in prices
October-December 2008 has been the worst quarter during the year gone by. Property prices faced pressure and continued to spiral down during that period. Some of the most affected areas in Delhi-NCR are Janakpuri. It saw a 33 per cent decline in rental rates for 2-3 BHK homes, Vasant Kunj (20 per cent down), Connaught Place (17 per cent down), Dwarka (14 per cent down), Pitampura (13 per cent down), and Malviya Nagar (13 per cent down). Falling further Property prices in Delhi declined during Oct-Dec 08 as compared to the previous quarter (July-Sep 08). Dwarka witnessed a steep decline of 15 per cent, Noida went down by 20 per cent while Gurgaon saw a drop of 7-8 per cent. Dwarka saw a drop in prices by 15 per cent during Oct-Dec 08 as compared to the previous quarter. The prices in the locality were Rs 4970 per sq ft in Oct-Dec 08, compared to Rs. 5870 per sq ft in Jul-Sep 08 In South Delhi, prices dropped by 5 per cent in OctDec 08 as compared with the previous quarter. Vasundhara Enclave, a popular locality in east Delhi, saw a marginal drop of 4 per cent in property prices in OctDec 08 as compared to the previous quarter. Noida experienced a sharp drop in prices of up to 20 per cent in some localities during Oct-Dec 08 as compared to the previous quarter. Sector 93 and Sector 50 settled at about Rs 3900 per sq ft and Rs 4900 per sq

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Women Gaining Benefits from Real Estate
Women have much to smile about. Be it in terms of tax exemptions, lesser stamp duties or easier availability of home loans, women are reaping the benefits in real estate. No wonder then that even a large number of single women are now enquiring about their dream home from developers. A major benefit is the lower stamp duty charges. Uttar Pradesh, for instance, has reduced its stamp duty rates for both men and women. In the past, other states such as Delhi, Orissa and Punjab had also reduced rates. A lower stamp duty rate helps in saving on the overall costs while purchasing property, thus acting as a significant boost for prospective woman buyers. According to Aman Gehlot, director of Ambience Group, Several states charge lower stamp duty on properties to women as compared to men. Women even enjoy the benefit of a higher tax rebate as compared to men. These factors act as a great incentive for women keen to buy property. There have been many factors that have led women to come to the forefront. The emergence of the new breed of women achievers who place career before marriage, the desire for self-acquired security and awareness of tax benefits has fuelled interest levels. Plus, the lack of hesitation showed by banks in lending to women is an added bonus. Says Raminder Grover, CEO (Homebay Residential) of global real estate consultancy Jones Lang LaSalle Meghraj (JLLM), Women, regardless of whether they are married or single, face no specific problems in obtaining home loans today. It is true that banks were earlier hesitant about granting loans to single women since they saw a possible loss of income and therefore inability to service the loan following marriage. However, this is the age of double-income families and such misgivings are a thing of the past. Many banks also have special schemes for women who avail of home loans and offer discounts of around 0.25%. Banks, however, say they have no special incentives or schemes specifically for women. It does not matter whether its a man or woman. The schemes are not gender specific, a senior source from IDBI told SundayET. Ditto is the case with Kotak Bank which also follows the same policy. Single women buying property usually happens at a higher age bracket. Mostly the home loan applications come via the couple route. We do not have any specific schemes lined up only for women, says Kamlesh Rao, senior VP, Kotak Bank. Developers such as Omaxe, Ambience Group and CHD Developers, however, reveal that the number of queries from women have been increasing. Says R K Mittal, CMD of CHD Developers, More single women are now coming forward to invest in real estate. About 15-20% of all enquiries we get are from women and almost half of these are unmarried. Women today are on the same professional, personal and financial platform as men. They are independent, earning high salaries, driving their own cars, and have an impressive lifestyle full of luxuries. Owning a house, no doubt, is topmost priority. It makes them feel safe and secure for the future and serves as a wise investment option. Agrees Rohtas Goel, CMD of Omaxe, Today, more women are buying their own homes. Yes, we are getting more queries from prospective women buyers now, but they are more for Tier-I cities as compared to Tier-II & III cities. Also, mature female buyers will often b

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Bailout package for real estate units
New Delhi, Dec 2 (PTI) Cut in home loan rates, easing of norms for overseas loan and rescheduling of total debt are among the measures proposed by the Union Urban Development Ministry in a a bailout package for the real estate industry hit by ripple effects of the global economic meltdown. "We have drafted a package for the real estate industry which is passing through a bad phase. The draft would be sent to the Finance Ministry for approval," M Ramachandran, Urban Development Secretary, told PTI. About the measures in the package, he said "we have suggested relaxation in norms for foreign loans so that real estate companies can tide over the liquidity crunch." The UD Ministry has also suggested certain other sops including rescheduling of total debt of real estate units and reduction in home loan rates for affordable houses. "We need for a significant number of affordable houses in the country as there is a shortage of these houses", he said. National Real Estate Development Council (Nardeco) has demanded certain sops from the Finance Ministry for the real estate sector and "we have included some of their demands in our package", he said. Once the Finance Ministry clears the package, it would go for cabinet approval. PTI

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Lowering of interest rates on home loans is a welcome development says Prabhakar Sinha -(TOI - 8Nov08)
There is good news for the home buyers. The RBIs efforts to infuse liquidity and lower interest rates have yielded result. Following the RBIs move and governments assurance to monitor the liquidity condition on daily basis, public sector banks have cut interest rates on loans by half to 0.75 percentage points. Now the floating rate home loan will be available in the range of 10.25% to 11% on loans up to Rs 30 lakh, and 11% to 12% on loans above Rs 30 lakh. In the last couple of days, all the major government owned banks, including State Bank of India, Bank of Baroda, Bank of India, Oriental Bank of Commerce and Central Bank of India have cut their benchmark prime lending rates (BPLR) by 0.75 percentage points. Banks like Punjab National Bank and Union Bank of India cut the rates by 50 basis points. As all the rates are linked to BPLR, the cut in BPLR will be reflected in the home loan rate. However, the cut in the rate will be applicable to the old loans taken on floating interest rates and will not benefit those who have borrowed at the fixed rate. That means, the interest rate of a borrower, who has borrowed from a public sector bank, will come down by 50 to 75 basis points depending on the cut in the BPLR by the bank. This will bring down the equated monthly installments (EMIs) of 20-year home loan of Rs 50 lakh by Rs 2,527 - from Rs 51,609 to Rs 49,082. However, the rate will benefit all borrowers, who are now planning to buy houses. This is likely to prompt buyers to finally decide to take the plunge - for that sweet home. Therefore, it is likely to boost demand in the real estate sector leading to a ramping up of their activities. However, developers and consultants feel that the present cut of 0.75 percentage points in

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Dharuhera, Bhiwadi, and Faridabad are set to get high-speed road corridors
Far-flung emerging residential destinations like Dharuhera, Bhiwadi, and Faridabad are set to get high-speed road corridors, which will reduce travel time to Delhi drastically, says Monika Saini In the next few years, owning a house in the suburbs of Delhi is going to be as good as living in Delhi. Though upcoming residential hubs beyond Noida, Dharuhera, Bhiwadi, Indirapuram, Faridabad, and Sonepat, sound remote now, considering their distance from the national capital, a slew of improved highways and the Metro connectivity is set change this perception and make these localities more attractive for buyers. Town planners also believe the time has come when residential development has to move away from Delhi. So far, the alternate residential development has happened around Delhi, which is known as ribbon development. But to make the capital city sustainable you need to provide more affordable options to people outside Delhi. A good transport system, primarily rail, will make the system sustainable, says H R Suri, former president of Institute of Town Planners, India. While, Metro Rail and improved rail connectivity is yet to happen, the currently far-flung emerging residential destinations are set to get highspeed road corridors, which will reduce the travel time drastically. The focus of all expansion and widening of national highways starting and terminating in Delhi is to make them signalfree by eliminating traffic bottlenecks. Until there is seamless connectivity to key facilities in the capital from suburbs, decongesting Delhi will only remain a dream. The highway development work will redefine growth story of areas along the road network, says a senior official of National Highways Authority of India (NHAI). Its not just the highway regulator; even the timely push for completion of road infrastructure projects ahead of the Commonwealth Games by Delhi is going to improve connectivity to areas like Faridabad, Noida and Greater Noida in the next one and half years. Delhi-Meerut Expressway This proposed 61-km long expressway will change the development along the corridor and is one of the priorities of the highway regula