Wednesday, April 30, 2014

Noida Real Estate’s Hottest Growth Corridor

Noida Expressway and Greater Noida (including Noida Extension) form a contiguous stretch of land that is the hotbed of real estate activity in the Noida region.

Property prices in the area have risen a staggering 21 percent over the past year. With residential and commercial properties mushrooming all around, home buyers and investors alike have plenty to choose from. From budget apartments to luxury villas, commercial complexes to retail spaces, themarket is catering to all the verticals of the real estate industry—residential, commercial and hospitality.

Price Trends in the Region
Real estate prices have risen considerably in the Noida Extension and along the Noida Expressway in the recent past. Interestingly, price rise in the Noida Extension has been far more impressive than in the Noida expressway, primarily due to lower base prices.

Real estate is difficult business for a normal home-buyer. The jargon prevalent in the domain like Carpet Area, Built-up Area, Super Built-up Area, among others can be very confusing for investors who are not acquainted with the domain.

Yes, You Could End Up With Less Space Than You Thought!
Taking advantage of a buyer’s naivety, brokers and developers often mislead them into buying small liveable spaces at exorbitant prices. Many a time an unsuspecting buyer books a flat assuming that he would get ownership of the entire area he is paying for. It is only on possession of his flat that he realises that what he has received is substantially less than what had been promised to him.
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Sectors to watch out for on Noida Expressway

Sector 137 and sector 143 have shown double digit growth over the last one year. While other sectors in Noida have also seen downward trends before showing a revival in this last one year, sector 137 and 143 have displayed consistent rise in capital values.

Sector 137 has seen an increase of about 17 per cent in residential prices to Rs 4,900 per square feet in the January-March quarter of 2014 compared to the same quarter a year ago. Meanwhile, Sector 143 has witnessed a rise of about 13 per cent in values to Rs 4,350 per square feet in Q4 2014 compared to Rs 3,850 per square feet in Q4 2013.

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Monday, April 28, 2014

Godrej Properties looking to enter Noida real estate market

Godrej Properties Ltd is keen on entering the Noida real estate market and is looking for a partner to develop a housing project, according to a top official at the company.

The real estate arm of the Godrej group is developing 3 premium housing projects in Gurgaon in joint venture with land owners and has already tied up for a residential project in Okhla, Delhi.

Godrej Properties has a strategy to develop real estate projects through joint ventures with land owners.

“Mumbai, Delhi-NCR and Bangalore are our major markets. We are looking at more projects in Delhi-NCR,” Godrej Properties Managing Director and CEO Pirojsha Godrej told PTI when asked about expansion plan in the national capital region.
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Authorities fail to meet ‘transparency’ demand of flat buyers

Despite repeated demands of homebuyers to make details of developers public, Noida, Greater Noida and Yamuna Expressway authorities have failed to upload them on their websites. This move was supposed to ensure transparency and help propertybuyers check legality of housing projects.

With the region witnessing a boom in real estate sector, investors have to beware of land sharks and property frauds, which have barely been reported because of laxity on part of police and authorities. All their claims to ensure transparency in the realty business have been in vain in the past two years.

Several buyers’ associations, too, have demanded that authorities upload important details about developers on their official websites as it’s impractical for each homebuyer to visit their offices to check details of a project.

Buyers' expectation from the NEW GOVENMENT

Market wants a STABLE REGIME

Thursday, April 24, 2014

Noida plans to slash circle rates

NOIDA: The department has decided to reduce circle rates, especially in group housing and commercial categories, as it has failed to achieve the annual target revenue. Senior department officials said they were not able to generate the revenue due to a steep hike in circle rates undertaken earlier.

The target revenue for Gautam Budh Nagar for financial year 2013-14 is Rs 1,536.60 crore. However, till January, the department has only managed to earn Rs 1,083 crore. Officials said that in the past few months the number of properties being registered have gone down due to the steep hike in circle rates. In 2012-13, the department's target was Rs 1,835.30 crore, but it was only able to earn Rs 1,015 crore.

Construction Update at Vihaan Greens Noida Extension

Construction Update at Vihaan Greens
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रियल्टी की तेजी से सावधान रहने की जरूरत

NOIDA: The UP government has planned to draft a new law to tighten the noose around fraudulent real estate agents so that interests of homebuyers are protected. A senior official in Lucknow said that under the law dealers are required to register themselves with a local government body and obtain a license for practicing.

The UP urban housing department is drafting the bill to regulate property brokers. "Once the draft bill is ready, it will be approved first by the cabinet and then passed by the legislative assembly to make it a law," said an official.

With the boom in real estate, especially in areas like Noida, Greater Noida and Yamuna Expressway, a large number of cases of property fraud and cheating have cropped up. "Usually police do not entertain such cases or have no means to bring the fraudsters to book. The bill will ensure that interests of the common man are protected stringent action is taken against unethical dealers," the official said, adding that while brokers enjoy handsome commissions, with a few big players making crores of Rupees overnight, they hardly take any responsibility of buyers in cheating cases.
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Wednesday, April 23, 2014

Infra sectors to be hit by high land cost

There is a growing clamour against the provisions of a new land acquisition law with several infrastructure sectors - from road, to railway and power - fearing a three-fold jump in acquisition cost due to the new legislation.

While the other ministries are just fretting over the issue, the road transport and highways ministry has asked government to increase Budgetary allocation for land acquisition. In a letter to the Cabinet secretariat, the ministry has also suggested that the government can seek views from other ministries such as heavy industries and power on how to deal with this issue.

Real Estate Investing for Beginners: 14 Tips for Success

Are you just starting out?

Sometimes real estate investing for beginners can seem a bit intimidating and it’s easy to get lost in the lights and sounds of all the blogs, books, and television gurus with their slick hair. To help cut through the crap that’s out there I wanted to create a short list of tips you can use as you embark on your journey to find financial freedom through real estate.

No, this isn’t going to teach you everything you need to know. However, I hope this list will help point you in the right direction. It’s not exhaustive by any means, just a brief list of lessons I’ve learned along the way and hope will help propel you toward success. If you are reading this and have a little bit of experience in real estate investing – I’d love for you to share some of your favorite tips in the comments below; but first – here are fourteen tips for beginner real estate investors.

Are you looking for an affordable property near Delhi and Noida?

Are you looking for an affordable property near Delhi and Noida?
You need not worry! Noida-Greater Noida Expressway continues to attract investors, buyers and realtors owing to the infrastructure and good connectivity of the area. Demand for residential and the commercial property on this stretch, which further connects to the 165km-long Yamuna Expressway, is increasing at a fast pace. Residential sectors have developed on both sides of the Noida-Greater Noida Expressway. The main advantage of living along this passage is the rapid access to Noida and Delhi through one side and to Greater Noida through the other. Projects along the Noida-Greater Noida Expressway are coming up with integrated townships, which apart from world-class features also offer golf courses in their developments.

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Spotting Real Gems

Just like balanced diet, your portfolio should be a healthy mix of varied assets for good growth. That is why financial advisors say that you must invest a part of savings in real estate too.

If you are looking to buy a house for investment in 2014 and are not sure where you can earn the best returns , don't worry. We bring you what experts say about real estate destinations that will give good returns over the next threefive years.

New Ground

In the last couple of years, the real estate market has changed remarkably in both metro cities and small towns. Prices have crossed the peaks reached before the 2008 economic slowdown.

However, in 2012, the companies grappled with economic uncertainty, low demand, fund crunch and high inflation. "High inflation and interest rates dealt a double blow to developers by increasing input and debt costs. Sales fell as buyers became wary of rising interest rates," says Shveta Jain, executive director, residential services, Cushman & Wakefield (C&W) India, a property consultancy firm.

Still, the mid-end residential segment continued to generate buyer interest. This, and increase in prices of raw materials, pushed up prices in most cities.
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Noida, Greater Noida, Yamuna Expressway attract investors’ interest

NOIDA: UP government's efforts to lure industrial investment in the state have seen Noida, Greater Noida and Yamuna Expresswayemerging as the preferred destinations by a clutch of business establishments from IT, electronics and semiconductor industries. At a recent investment conclave held in Agra, these companies expressed their intent to make an investment to the tune of Rs 5,000 crore. The investment is likely to generate around 9,500 job opportunities.
"Industrialists, who attended the meeting, included- LG International, Oracle, Hind Terminals, India Electronics & Semiconductor Association, Delphi, PTC Industries, etc," said Dr Surya Pratap Singh, principal secretary, infrastructure and industrial development department (IIDD).

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Our dreams have been demolished, say buyers of flats in sealed Noida towers

Buyers of flats in Apex and Ceyane towers of Supertech Group’s Emerald Court Complex in Sector-93 here — which the Allahabad High Court has ordered demolished — said they would approach the Supreme Court as the High Court verdict was passed without giving them an “opportunity to be heard”.

The Residents Welfare Association (RWA) of Emerald Court Complex, the petitioner of the case, has already filed a caveat in the Supreme Court.

The two towers house 857 flats, of which almost 600 have been sold. While there is no occupancy, homebuyers said the High Court order that the developer refund them money, along with 14 per cent compound interest, won’t help them.

“When the order for the demolition came, it also demolished our dreams. Most of us weren’t even aware of the dispute and learnt about it from newspapers,” M R Chhikara said.

According to the aggrieved homebuyers, when the units were first being sold in the two towers in 2009, the rate per square feet was Rs 2,600. In the last five years, it has increased to more than Rs 6,000 per square feet.

Millionaires See Real Estate as Top Investment for 2014

About 77 percent of investors with at least $1 million in assets own real estate, according to a survey released today by the New York-based investment bank’s wealth-management unit. Direct ownership of residential and commercial properties was the No. 1 alternative-investment pick for 2014, with a third of millionaires surveyed saying they plan to buy this year. Twenty-three percent said they expect to invest in real estate investment trusts, the second-most popular choice.

Wealthy investors are turning to a rebounding real estate market as fixed-income yields remain historically low andequities surge. U.S. commercial-property values rose 8 percent in the 12 months ended Jan. 31, and have jumped 71 percent since hitting their post-recession bottom in 2009,

Sunday, April 20, 2014

Why You Should Be Investing Your Money In Real Estate

As entrepreneurs find success with their primary business ventures, many search for the proper investments for their profits.

Of course, we can and should all start traditional tax preferred vehicles like an IRA and 401k. These are the bedrock of good 'benefit' planning for ourselves and our employees. I'm also convinced more entrepreneurs should consider rental real estate as an important part of their portfolio.

I realize many business owners shrug off this concept after the recent downturn in real estate values, but let me list a few reasons that may change your mind:

1. Gain more leverage. Real estate is one of the few investment vehicles where using the bank's money couldn't be easier. The ability to make a down payment, leverage your capital, and thus increase your overall return on investment is incredible.

2014 housing outlook: Still a seller's market but better for buyers than 2013

If you're looking to sell a home, 2014 will be a good year though probably not as good as the current one. But if you're looking to buy, 2014 will likely be a better year than 2013. These are just some of the expectations thatJonathan Miller, president and CEO of Miller Samuel, a real estate appraisal and consulting firm, shared with The Daily Ticker.

Take home prices, which have been rising at a rate of 10%-12% -- depending on which data you use, for example. Miller says home prices will rise half as much in 2014 because more supply will come on to the market. Inventory is now below the usual six-month average, credit remains tight and unemployment and underemployment will remain high even if they've declined over the past year.

"How can we have price growth that we didn't see in decades? It doesn't make any sense," Miller explains in the video above.

Friday, April 18, 2014

JP Infra to raise up to Rs 3000cr for Yamuna Expressway

Co plans to raise capital for the Yamuna Expressway project. It is a 6-lane, extendable up to 8-lane project. It is 165 km long and connects Greater Noida with Agra. The total project cost was Rs 12,839 crore.
Jaypee Infratech is in talks with private equity (PE) players to raise up to Rs 3,000 crore for the Yamuna Expressway project. PE players in the race are Macquarie PE, IDFC PE and IDBI. According to sources, the company will also be initiating talks with other PE players. The PE players will be given part equity in the project.

Read more at: http://www.moneycontrol.com/news/cnbc-tv18-comments/jp-infra-to-raiseto-rs-3000cr-for-yamuna-expressway_1066629.html?utm_source=ref_article

Noida Toll Bridge to consider final dividend

Noida Toll Bridge has informed that a meeting of the Board of Directors of the Company will be held on April 28, 2014, to consider and approve the recommendation of a final dividend to the equity shareholders of the Company for FY 2013-14, subject to shareholders� approval at the forthcoming Annual General Meeting.
Noida Toll Bridge Company Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on April 28, 2014, inter alia, to consider and approve the following:1. Audited financial results of the Company for the year ended March 31, 2014.2. Recommendation of a final dividend to the equity shareholders of the Company for FY 2013-14, subject to shareholders’ approval at the forthcoming Annual General Meeting

Read more at: http://www.moneycontrol.com/news/announcements/noida-toll-bridge-to-consider-final-dividend_1069665.html?utm_source=ref_article

Thursday, April 17, 2014

Robert Vadra, In-Law of Sonia Gandhi of India’s Ruling Congress Party, Quickly Built Real-Estate Portfolio

India—A taciturn man in a black SUV started buying up tracts of arid agricultural land around this small town in the western Indian state of Rajasthan in 2009. He would sit in the parking lot outside the one-story concrete building that houses the land office and dole out cash for sellers from the back seat, according to real-estate brokers and a local government land official. The buyer represented by the man in the SUV, according to state land records, was Robert Vadra, a member of India’s powerful Nehru-Gandhi political clan, whose Congress party leads the country today and has for much of its more-than-66-year post-colonial history.

Soon after he began buying, the federal government announced plans to promote large-scale solar-energy production, a land-intensive project for which the area was well-suited. He continued buying land, and in 2011 the state, too, announced solar incentives. The value of the land Mr. Vadra bought soared sixfold within three years, a state record of land transactions shows.

State officials say they are investigating whether there were any legal violations, such as exceeding land-purchase limits, in the investments by Mr. Vadra, who is the son-in-law of Congress party President Sonia Gandhi and brother-in-law of Rahul Gandhi, the leader of Congress’s campaign in elections now under way.

A spokesman for Mr. Vadra said he is a private citizen who has been subjected to a campaign to malign him for political reasons. “He has acquired and disposed of real estate in exercise of his rights and has obtained no favor or benefit from anyone,” the spokesman said. “He has complied with all applicable provisions of law and has nothing further to say.”

Indian realty industry looks to BJP to lift fortunes

The crisis-ridden real estate sector, feeling neglected by the United Progressive Alliance (UPA) government, is warming up to the Bharatiya Janata Party (BJP) and its prime ministerial candidate Narendra Modi to lift its fortunes. In the wake of economic instability, the realty industry has been facing severe stress with a clouded investment outlook. Its industry captains are looking forward to a strong and stable government that can put the battered economy back on rails and undertake the necessary reforms to revive the real estate sector.

The apex body of real estate developers, the Confederation of Real Estate Developers Associations of India (CREDAI), has been quite critical of the UPA government’s policies, and in denying the sector its rightful due. It laments that the real estate sector that contributes six percent to the country’s gross domestic product (GDP) is also burdened with heavy taxes – it amounts to over 30 percent, with stamp duty alone amounting to Rs.32,000 crore ($5.3 billion).

Without professionals, quality delivery will be a challenge

Real estate sector in India needs a reality check, says Sachin Sandhir, managing director, Royal Institution of Chartered Surveyors (RICS) South Asia, a self-regulatory professional body for land, property and construction. At a time when a lot focus is directed towards efficiency and fair play, he believes that the sector needs more professionals with high ethical standards to make this possible. Talking on the sidelines of RICS Real Estate Conference 2014 – Celebrating Indian Real Estate, Sandhir discusses the role that various stakeholders will play.

Has the real estate sector’s functioning in India become more transparent?
There are two parts to it. First is how the industry has evolved over the past decade. The quantum of change suggests a positive impact—housing finance has gone up from Rs.43,000 crore to Rs.7.47 trillion; and the total quantum of commercial leasing has gone up to 30-35 million sq. ft. The scale suggests that a lot has happened. It is important to highlight that there is a lot of professionalism that has come about as a result of the many global consulting firms that now provide services to the real estate sector. Similarly, on the construction side as well, if you look at execution, we have large contracting companies, some of them international, that have contributed to the overall quality of delivery. Also, 5-10% of the developers have changed their mindset.

VIHAAN GREENS: It is a prominent residential project, which is being developed by Vihaan Group. To cater to its customers the builder has offered 2BHK/3BHK/4 BHK flats well equipped with first-class facilities.

Vihaan developer, a major realty player, has developed number of realty projects across several states such as Delhi, Rajasthan, Uttar Pradesh, Haryana, Gujarat, Maharashtra and Madhya Pradesh. Top clients like Indian Railway, CPWD, PWD, MTNL and DDA have relied on 35 years of rich experience and expertise of Vihaan Group.

The portfolio of Vihaan Group’s projects includes Rail underpass, Roads, Flyover, School buildings, Railway employees’ rest house and Hostel building etc. Its mission is to become an outstanding realty development organization and it believes it can do so by adhering to professionalism, customer service and ethics.

It has got perfect location as NH-24 can be accessed easily; 5 minutes away from Sector 32 metro station, 3 km away from sec-77/78 Noida and 1.5 km from FNG corridor.

First time in Noida Extension, the project offers flats with personal entrance way to provide privacy to its customers.

Meditation And Yoga Area in balcony in all flats to help you live a stress free life.

To keep your family safe, the project has got multilevel security through centralized CCTV surveillance

Financial Institutions such as HDFC and DHFL are at you service to provide financial aid so that you can accomplish your dream home.

Noida Authority seals Supertech towers

Noida Authority has sealed realty firm Supertech’s two 40-storey towers with more than 800 flats following the Allahabad High Court’s order to demolish the buildings. The towers — Apex and Ceyane — have a combined 857 apartments, of which 600 were sold, and are a part of Supertech’s Emerald Court project.On April 11, the court ordered the demolition of the two buildings in Noida and the refund of money to apartment buyers in response to a petition that alleged their construction had violated the law.

“The two towers have been sealed as per court direction,” a senior official of Noida Authority said.

Supertech, which has suffered a major setback with this decision, will move the Supreme Court in the next 7-10 days challenging the high court order, Chairman and Managing Director R K Arora had said on Monday. Mr Arora maintained that the construction of the towers was according to the approved plan and was authorised. Hundreds of affected buyers held protests against the company and the high court order earlier this week. “We held a meeting with the affected buyers. Nobody wants refund of money. They only want their flats,” Mr Arora said. A division bench comprising Justice V K Shukla and Justice Suneet Kumar ordered the demolition of the two towers erected in Sector 93-A of Noida as part of the Supertech Emerald Court Complex “within a period of four months.” The complex has residential premises and shopping establishments.

Buying a house? Mitigate risk with possession-linked plan

With sales in the real estate sector slowing down, developers are coming up with a variety of attractive offers to persuade customers to buy. One innovation that the current slowdown has spawned is the possession linked payment (PLP) plan. Until recently, the most popular plan was the construction linked payment (CLP). Here, the payment to developer, either by the buyer or the bank from which the loan is taken, is linked to construction milestones.

While this plan appears attractive, developers have found a way to circumvent it. By the time the super-structure is ready, the buyer or his bank has paid 80-90% of the apartment's cost. Next comes the stage when the interior and finishing have to be done. Normally, this stage should take between six months and one year. It is at this stage that the developer begins to delay the project, stretching it from two to five years. Having collected most of the apartment's cost, he now diverts the buyer ..

FDI in real estate

In Its zeal to enforce foreign direct investment (FDI) norms in the real estate sector, the government is becoming entangled in micro-regulation that runs the risk of stifling the flow of such investments. The FDI norms for the real estate sector — framed through the Press Note 2 (2005) over two years ago — were clearly designed for the simplistic situation of single projects from unlisted companies.

A host of restrictions including minimum project size in terms of area and a lock-in period were imposed to keep out speculative foreign capital. They did not take into account the fact that real estate companies could be listed. All problems flow from this basic issue. After labelling all pre-IPO investment or private placement to foreign institutional investors (FII) in real estate companies as FDI, the government has now decided to bar real estate companies from issuing depository receipts (ADRs or GDRs). The logic of the move is simple.

Competition leads to lower prices, a wider choice of goods, and technological innovation , all in the interest of the consumer. Competition policy laws are designed to protect the competitive process either in a particular sector or across various sectors of the economy .Probably one of the best ways for a competition agency to be proactive is to enhance competition advocacy activities, as the experiences in developing and developed countries have shown.

In light of the substantial changes in the real estate market and consumers interest in a competitive real estate industry , Competition Commission of India (CCI) along with Hudco had recently organised a workshop to provide a forum on the competitiveness of the real estate marketing activities, aimed at expanding consumer welfare by promoting competition and correcting market structures and functions, which may impede competition in real estate sector.

Hyman Minsky, the noted American economist, linked an economy's life cycle with speculative investment bubbles which are endogenous to it. He stated that during prosperous times when the economy booms, corporate cash flows rise higher than corporate debts, and this leads to speculative euphoria.

This euphoria continues to develop, allowing borrowers to borrow more until their income streams become inadequate to service their debts, creating a financial crisis. This speculative borrowing bubble then causes banks and financial institutions to reduce lending, which in turn causes a further contraction in the overall economy.

Our economy is currently facing such a contraction. Overall economic activity has slowed, with GDP growth estimated at 4.9 percent in 2013-2014. True, this is an improvement of 40 bps over the previous year and we have seen growth in the traditional agricultural and allied sectors; however, industrial output and manufacturing in India are currently in a stagnant mode in terms of growth.

What this means for realty

While infrastructure has been hit by rising input costs and delayed approvals, asset prices for residential real estate have recovered and grown over the past two years. The increasing residential asset prices have given rise to a potential bubble, causing stagnation over the past two quarters. From a pan-India perspective, new launches in the residential sector have dwindled over 2013, as developers have been looking at disposing of existing stocks to generate cash flow.

As India's mammoth general election approaches, jackhammer drills are quietening down at construction sites and earthmovers and cranes remain parked.

Many of the country's real estate and construction companies - their finances already squeezed by a sharp economic slowdown - are diverting funds from housing and other projects to election campaign contributions. Many projects are stalled, at least temporarily.

More than other businesses, developers and contractors in the countr ..
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Tuesday, April 15, 2014

Ten common investment strategies and why they may not work

How many times have you been told about 'the next big stock' by a broker, a friend or a colleague? The stock, you are told, has all the makings of the next blockbuster.

The argument is persuasive, either in the form of anecdotes or backed by data. Maybe an investment guru has made millions on the stock. Or, there is a chart showing the stock's past returns or, maybe, a study listing reasons why it will bring you enormous riches.

However, once you invest, the stock stops performing, or begins well and then starts to falter. You are disappointed and decide never to invest in any stock.

If this sounds familiar, take heart, for you have company. Aswath Damodaran, Professor at New York University, in his book 'Investment Fables,' captures the essence of these stories. "While there are hundreds of schemes to beat the market, they all are variants of about a dozen basic themes that have been around for as long as there have been stocks to buy and sell. These broad themes are modified, given new names and marketed as new strategies," says Damodaran.

We identify some of these strategies that appeal to stock investors and see if they are workable or, as Damodaran says, just fables.

MYTH: BUYING DIVIDEND-PAYING COMPANIES IS AS SAFE AS INVESTING IN DEBT. AND A COMPANY THAT HAS ANNOUNCED THAT IT WILL PAY HIGH DIVIDEND THIS YEAR IS A GOOD BET.

Reality: Investors with little risk appetite prefer the safety of government bonds or bank fixed deposits rather than stocks. The belief is that these are risk-free. Such investors are told that a dividend-giving stock offers safety, regular income, plus scope for capital appreciation. But what is not mentioned is that dividend payments can never be predicted, a big minus for any investor looking for regular income.

Take Bajaj Finance. Its stock went up from Rs 400 on 2 January 2006 to Rs 1,318 on 31 December 2012. The company paid dividend in each of these six years. In 2005-06, it paid Rs 4 per share. In 2008-09, it paid just Rs 2. Some say this is because 2008-09 was a year of economic crisis.

Wednesday, April 30, 2014

Monday, April 28, 2014

Saturday, April 26, 2014

Friday, April 25, 2014