Tag Archives: Chandigarh real estate news

Residential market defies all economic indicators-I

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Chandigarh real estate news, realty news, property news, Track2Media, Track2REalty, Ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.comTrack2Realty Exclusive Yearly Analysis: Residential real estate is defying the conventional wisdom of economics where a constant price hike is not benefitting the real estate companies either. Track2Realty finds with pressure on both the demand and supply side, residential real estate has gone into a vicious cycle of ever increasing cost, falling demand, liquidity crunch and last, but not the least, delay in approvals adding to the woes of the developers.

After a turbulent couple of years following financial meltdown in 2008, when the market seemed to be on course of restructuring during 2011, crisis in the housing sector has yet again aggravated in the last one year due to paucity of funds as well as delays in securing approvals. Home sales have slowed down, private equity has dried up, the primary market is subdued, and banks have been reluctant to lend to builders. A combination of consumer activism, agitation by farmers, bureaucratic delays, labour shortage and legal wrangles has also contributed to holding up projects.

Facts speak for themselves. According to a pan-India survey by the real estate research firm Liases Foras, about 50 per cent of the 323,000 homes due for 2013 delivery will be delayed on slow construction approvals and liquidity issues. Most of the projects are lagging behind construction schedule, with a third not ready for a housewarming before 2014.

“There have always been delays, but it is a bigger concern today as the quantum of homes being built is much larger now,” says Deepak Parekh, Chairman of India’s biggest mortgage lender HDFC Ltd.

“Everyone’s money is stuck. It is not only bad for homebuyers, but also for the economy,” adds DK Mittal, Secretary, Department of Financial Services.

The delays leave lakhs of home buyers to grapple with another problem in the midst of rising prices and a slowing economy. “Individual home buyers have the option of taking recourse to the law, but almost no one does so as it is a cumbersome process and may lead to further delays if the builder digs in his heels,” says Vaibhav Gaggar, Partner at law firm Gaggar & Associates, which helps clients in real estate disputes, among others.

The track record of developers in the Delhi-National Capital Region have been the worst, with a 74 per cent late delivery rate, followed by Mumbai and Chennai at 61 per cent, Bangalore at 59 per cent and Kolkata at 57 per cent. “Data indicates that there would be more delays going forward because of the stress on cash flows of developers,” says Pankaj Kapoor, Managing Director at Liases Foras.

…….to be continued

Indians prefer ready-to-move house; find new launches risky

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Track2Realty Exclusive

Pan-India Survey

Chandigarh real estate news, realty news, property news, Track2Media, Track2REalty, Ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.comWhile buying a house majority of the Indians have now matured to pay for ready-to-move property than a castle in the air. No wonder, despite the high appreciation potential, the new launched projects have few takers and there is hardly any market for a pre-launch offer. Thanks to the poor delivery of the real estate developers, unmet commitments and execution risk involved, at least the end users are not interested in new launches anymore.

More than seven out of 10, as many as 74 per cent, prospective home buyers across ten cities of India are negotiating for a ready-to-move property as it is easier to evaluate the probability of appreciation, the reasonability of the imposed rates by the builder, exact specifications being met or not. Out of the remaining 26 per cent, who opted for new launches for price discounts in recent times, majority of them, as many as 82 per cent, are now repenting their decision due to delay in project completion. Having burnt their fingers, nearly nine out of ten, 88 per cent, blame a nexus between developers and greedy investors that makes the new launches a hot property.

These are the findings of ten city survey by Track2Realty, the real estate market tracker. Track2Realty conducted this survey in ten cities-Delhi, Mumbai, Kolkata, Bangalore, Kochi, Ahmedabad, Chennai, Patna, Pune and Chandigarh between April 1 and 14. A structured questionnaire that was based on the choices & concerns, risk exposure & appetite, and their satisfaction index was given to respondents who belonged to a mix of mid segment and luxury projects’ buyers to understand the choice of qualitative and quantitative socio-economic groups.

The survey demography belonged predominantly to the middle and upper middle class of society, being educated professionals and a significant number of respondents were buyers of mid segment houses. Majority of these buyers were first time buyers who wanted a new house for self-use.  While 70 per cent of the buyers were first time buyers, new launch projects were equally disliked by the second time buyers. 30 per cent of these buyers who had bought the new launch project were not even aware that pre-launch offered by many developers is actually banned in some parts of the country.

A total sample size of 2000 house buyers was targeted. Out of these 1672 samples were finally zeroed down and considered for analysis. Rest 328 respondents were not considered for evaluation since they either gave incomplete questionnaires or were rejected for non-seriousness of their choices & concerns. The total sample size had 34 per cent females and 66 per cent males as a representative set. The surveying method was one-on-one interviews, in which the researchers explained the theme and purpose of the survey and then handed over the questionnaire to the respondents to be filled and returned the next day. All the researchers being the local residents of the city, they managed to assure the respondents complete anonymity.

The results were based on a set of 27 questions and the answers were grouped into seven key factors of choices & concerns, risk exposure & appetite, and their satisfaction index, which were weighted according to how important buyers said they were. Projects were divided into four categories of Ready-to-Move, Under Construction, New Launches and Pre-Launch offers. The survey found that “home readiness” is the No. 1 issue for buyers.

Delay in the delivery is cited as number one reason of their reluctance to book a new launch by almost all the home buyers, 92 per cent. Default in design, construction quality and fear of faulty construction is what scares the home buyers, 70 per cent, to better opt for “you get what you see” project. Frustration of home buyers is not only with the small developers, but even the leading developers suffer from the trust deficit of buyers. Nearly eight out of ten, 78 per cent, say they have not got what was showcased as the sample flat.

Almost as many, 72 per cent, are cribbing about the lack of amenities like the water splash as the swimming pool, clubs being no more than cafeterias and under-equipped gyms etc in their housing project. Nearly nine out of ten, 88 per cent are not taking the verbal promises of the developer, like cost of parking, club, swimming pool, gym etc, and want it to be clause of the agreement paper with all details and delivery milestones. More than seven out of ten, 72 per cent, are scared of going to consumer courts and face all the legal hassles, something that developers so smartly use as a saving grace.

Nearly seven out of ten, 68 per cent, home buyers prefer ready-to-move property because they can avail for tax benefits only after the possession of the house. Saving tax on the EMI’s is one of the big reasons why nearly eight out of ten, 78 per cent, plan their house buying. Nearly all, 92 per cent, agree that buying under construction property makes them suffer from double burden of paying rent and EMI and not getting any tax benefit. Immediate relief on rent and EMI is cited as one of the main criterion for choosing a property worth possession. Even the penalty clause in case of delay in construction is something that does not remove frustration of 70 per cent of the buyers.

Furthermore, in case of just launched projects, the majority of the buyers, 64 per cent, believe the developers’ assurance to the buyer of no loss by notifying the penalty clause for deferred delivery and construction-linked payment plan is just a marketing gimmick to retain a buyer and crack a deal. Over promising by builders is something that deters nearly eight, 77 per cent, home buyers. Any promise by the developer that is forward looking (for instance, municipal water supply after 3-6 months of completion of project) is looked with disbelief by almost all, as many as 90 per cent, the home buyers. They all believe that once the objective of builder in selling the flats is over, he would be least interested in the problems that people in his project face.

Contrary to the general perception of inflated price in ready-to-move property, more than half of respondents, 56 per cent, believe prices are more rationalised after the exit of investors in the project. A fact that 60 per cent of home seekers active in the property market (those who are on lookout for house in the last 12 months) agree. They believe there is artificial demand in a new launched project and after 12-24 months, prices can be realistic, if not outrightly downward. No wonder, more than six out of ten, 62 per cent, would prefer to settle for a flat in the secondary market as against the temptation of brand new in the recently launched apartment.

While property still remains the preferred choice of investment of nearly all the Indians, as high as 92 per cent, they are pretty scared of trading in the property market now. While new launches have few takers, most of the transactions are happening in the ready-to-move and other secondary market options. 70 per cent of the Indians who are looking to invest again after occupying a house assert they prefer relatively safer bets like infra bonds than be sorry after the new launches are stuck up due to developers’ poor financial condition, regulatory hassles or other legal issues.

More than half of home buyers, 52 per cent are ready to pay slightly more for a ready-to-move property because they want to make sure who their neighbours would be and the overall community profile of the apartment. 77 per cent of home buyers maintain that the days of trading house (anything less around 12-24 months) are over and under construction house can give a sizeable return only if it is for a long term investment. Moreover, those who need a roof over the head have many other factors to worry than to be lured by the appreciation potential of the periphery under developed area.

CHD Developers Q4 net profit skyrockets

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CHD Developers, Quarterly results, Gurgaon real estate news, Chandigarh real estate news, Gurgaon Avenue 71, realty news india, property news india, track2realty, track2media, ravi sinhaCHD Developers Ltd. has reported its all time highest net sales of Rs.86.11 crore for the quarter ended March 31, 2011, compared to Rs.11.21 crore of the corresponding period of last fiscal year, registering an impressive growth of 668 %.

Net Profit for the quarter stood at Rs.34.4mn, a growth of 3893 %, as compared to Rs.0.08 crore posted in the same quarter ended March 31, 2010. Earnings per share (EPS) stood at Rs.0.30 (Face Value Rs.2/-). The operating margin for Q4 FY11 stood at 6.69%.

Net sales for the financial year ended March 31, 2011 grew by 235 % to Rs.1.33bn as compared to Rs.40.00 crore of last fiscal. Earnings per Share (EPS) worked out to Rs.0.55 (Face Value Rs.2). The operating margin for the year ended 2010-2011 was at 11.10%.

The Board Of Directors has also recommended a dividend of 5% to paid to all eligible share holders subject to approval at the annual general meeting of the company. This is 18.25% of the current years Profit.

After completing successful projects in New Delhi, Karnal, Vrindavan and Haridwar, CHD Developers Ltd. launched its premium residential project Avenue 71 on Sohna Road, Gurgaon. With a worth of over Rs.5bn  the project aims to bring a new level of elegance in Delhi/NCR. The project undertaken in an SPV called CHD Armaan Realtech Pvt. Ltd has sold around 85% of the total inventory in a record time.

Commenting on the performance, Gaurav Mittal, MD, CHD Developers Ltd. said, “We have witnessed a year full of change and we are encouraged by the progress we have made. We have completed a strategic review of the year and we are confident that the initiatives we are taking will further strengthen our position in the real estate sector. We expect higher revenue growth in the next fiscal as well”.

ASCC launches $33 million housing project in New Chandigarh

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Chandigarh real estate news, chandigarh realty news, chandigarh property, ASCC, Evader Corporation, Evader Inc., Delhi NCR real estate, Bangalore Real Estate, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Mumbai Real Estate, India PropertyEvader, Inc. subsidiary ASCC has announced to launch a 480-unit integrated group housing project, in New Chandigarh valued at $33 million U.S. The project offers eight-floor buildings with a total of 480 units located on the periphery of the city. These ultra-modern apartments range in price from Rs. 1.7 million to three million (approximately $38,000 to $67,000 U.S.).

ASCC is India’s leading real estate company and this is the first integrated group housing project developed in New Chandigarh by a national real estate player. It’s situated on 11 acres of lush greenery and 75% of the total property area has been reserved as open space for the comfort of residents.

ASCC CEO Avtar Singh Walia stated: “Having a strong foothold in other north Indian states, it gives us immense pleasure to announce our arrival with the first project in this area. The project will be distinct and modern in design and offerings, and yet will gel with the well-defined architecture and natural beauty that the region is so famous for. Work has successfully begun and is expected to take three years to finish.”