Tag Archives: Greater Noida West

Shift from product-based to service oriented mindset

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View Point: Indian real estate has always been addressed as a product-based industry which runs on independent guidelines and regulations varying from developer to developer, writes Nikhil Hawelia, Managing Director, Hawelia Group.

Nikhil Hawelia, Managing Director, Hawelia GroupBest practices in any industry have been identified as the means by which result superior from all other alternatives can be achieved. It mainly refers to the standard way of executing a task which is among the best available methods.

Real estate industry in our nation has always been in question due to prevailing autonomous rules and guidelines of every developer. There is an immediate need of a governing body which can address all such concerns of the sector. Government of India at national level has already introduced RERA which will address all these concerns.

In my opinion, apart from this commendable initiative of our government, developers too should undertake at all possible levels the best practices in the sector such as commanded fiscal management, timely execution capabilities, perception building, transparency, functional professionalism and last but the most significant ‘consumer connect’.

In my experience and belief, lack of financial management discipline is also the key reason to make any developer fiscal risky. Over leveraged balance sheets, unreasonably high cost of acquisition of newer land parcels, too many launches of new projects and at the same time unforeseen challenges in the construction business is hurting the sentiments of real estate companies which in turn forces the developer to expand on funding even at high cost of finance.

The major concerns like delay in possession and quality issues directly or indirectly occur because of over-limit & uncontrollable growth especially in the north region of the country. Involvement of higher management at all verticals is crucial to meet up the commitments and promises. Working in such controlled atmosphere and leveraging rightly at every cycle of business will help scaling their business positively while achieving the progress in execution capabilities.

Perception building and transparency are inter-linked or we can say inter-dependent on each other. The existing perception can only be changed if the developer fraternity adopts practice of transparency and streamline their professional intent. Foremost the developer should draw a limit to the quantum of work which is under their control for a certain business cycle. Execution capability ratio plays important role to inline these two aspects. It is the capability of the company to execute the amount of work in controlled manner in all respect.

Functional professionalism is the need of the hour at all segments and levels of a real estate company. Developers have undertaken far beyond the limit range of work and projects which is directly impacting the professional approach at all in-company department(s) right from sales, marketing & purchase to customer support, finance, accounting & construction.

It has been noted that whatever the team represents at one end of the chain is what is being flowing from the top end. Highest management vision and work direction should be based on transparency and professional approach, so that the system can never go in misguided path.

As per the traditional mindset, many developers consider that a homebuyer is a onetime consumer because of which they have always failed to explore the benefit of relationship management. The Indian real estate sector has gone overboard with brand campaigns and publicity rather than identifying the gains by connecting with the customer. The developer should take extra care to face and answer all types of queries of the customer as well as third parties to gain the confidence of the market.

Addressing the concerns and issues of consumer on realistic ground with assurance will give a meaningful result oriented solution. One should prioritise the customer needs and focus on their actual problems. In today’s real estate scenario, most of the developers who are gaining grounds are mainly focusing on customer satisfaction and relationship management, which in turn is the best marketing medium for word-of-mouth publicity. Exploring this medium by gaining trust of one customer for lifetime will surely open threshold for many satisfied referred clientele and direct boost in sales graph.

It has been wisely said that period of product specific industry had gone; now the time is for service industry. One should be approachable, answerable and responsible towards their customer(s). Indian real estate developers immediately need to adopt best practices in the sector for survival and growth in time to come. Clearance to real estate regulatory bill will also ensure much awaited transparent business practices in the real estate sector.

This is being considered as the first step towards organising this unorganised and immature sector into a professional industry with values and commitments. The Act ensures organization of Indian real estate sector with required transparency and strengthening of relation between consumer and developer.

I sincerely request the respective State Government(s) to accelerate their action on formation of RERA so that sincere real estate players could gain the momentum and the sector will get a boost and confidence of the homebuyers. This will surely help genuine developers to come in front and will show exit doors to most of the fly-by-night operators of the sector.

Victoryone buyers coerced to pay arbitrary demands

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News Point: Victoryone buyers in Noida Extension are protesting against unjustified and arbitrary financial demand by the builder. 

Victoryone Central, Victory Group, Victory Infraprojects, Victoryone Infraprojects, Sudhir Agarwal, Greater Noida West, Noida Extension, India real estate news, Indian realty news, Real estate news India, Indian property market, Track2Media Research, Track2Realty, Best news on Indian real estate Abuse of dominant position in the market is an unfair trade practice that is often perceived in the collective consciousness on part of the larger players having established their brand equity. But in Great Noida West (popularly known as Noida Extension) Victoryone Infraprojects, a lesser-known developer registered with a subsidiary Intellect Projects Pvt Ltd is a case study in abuse of dominant position as a builder against the hapless homebuyers.

Coercing the buyers at the project Victoryone Central in Noida Extension to pay arbitrary demands, the builder is flouting all business ethics, established market norms and his own one-sided Builder Buyer Agreement (BBA).

The homebuyers have taken to streets to protest against what they call a clear design to extract more arbitrary payment out of buyers with disregard to what has been agreed upon.

The buyers have alleged that in the final demand letter the Victoryone has not honoured the one-sided Builder-Buyer Agreement (BBA) that mandates the builder to pay penalty. However, the builder is referring the same BBA with wrong interpretation and forcing the buyers to pay more in the name of signed agreement.

The buyers allege that they got an opportunity to see the terms of BBA three months after making the payment of booking amount. They were left with no choice but to sign the document to save the signing amount being forfeited in case of cancellation.

Track2Realty has reviewed the one-sided BBA of the builder to find the agreement did not even follow the mandatory norms of two witnesses to be signatories. It clearly did not give the hapless homebuyers any chance to consult the lawyers.

However, beyond the legality/validity of the BBA, as the buyers have signed it in absence of any choice, what the homebuyers are finding surprising and objectionable is that while the one party (builder) is twisting the terms of the agreement to demand more money, it is not ready to honour the legitimate right of the other party (buyer) for delay in construction.

For example, the Total Super Area is increased by 3.5% and there is demand for more payment in lieu of. Buyers maintain that it is a clear case of abuse of the dominant position of the builder as against the buyers. The prescribed norm of +/-3% (as mentioned in Clause No. 5 of BBA) was meant for inadvertent deviation in the design & layout and anything over and above that is a deliberate act.

They question that if there had been the intent of the company to increase the Super Area by 3.5% the builder was liable to communicate the layout changes to the buyers to get the prior consent of the two-third of the buyers.

“Any demand against what has not been agreed upon or mandated by majority of the homebuyers in the project is not justified on part of the builder. Buyers of affordable housing projects like us are not in a position to arrange extra money all of a sudden for something that we have not agreed upon,” says a dejected buyer of Victoryone Central.

Furthermore, the builder is not ready to honour its own agreement with regard to penalty for delay in possession. Track2Realty has reviewed one of the documents to find that clause 15(c), states that builder has to pay the penalty, as there has been a delay of more than 1.5 years from the actual date of possession as per Allotment Letter Date that is dated 14th April 2013 with Construction Period of 30 months plus 6 month as a grace period (Total 3 Years).

But with the Offer of Possession Demand dated 21st Sept. 2017, there is no mention of any penalty or adjustment against it. The buyers allege that the builder has verbally refused to honour this clause. An email query sent by Track2Realty did not get any response, the builder even refused to speak when approached through the phone calls.

What also raises the doubts over the intent of the builder is the fact that Victoryone still doesn’t have Completion Certificate but there is demand for full and final payment, and even the additional payment. In Final Demand Letter it is clearly mentioned that Victoryone has applied for Completion Certificate which they have not received yet.

Also, as per the last email exchanged with the homebuyers, Victoryone on 13th July 2017, the builder had communicated that they have only applied for Completion Certificate and is expected to receive the same in August 2017 which they have not received.

Sending final demand without having Completion Certificate again raises questions on Victoryone’s intention. As per the market norms, the fit-out period notice of 30 or 45 or 60 days is given on offer of possession when the OC or CC has been obtained. But in this case, the certificate is still awaited.

A few questions that the builder, Victoryone has to answer:

Q. Why didn’t the builder take the consent of two-third of the buyers in exceeding the Super Area by 3.5%?

Q. How much has the carpet area in the given project extended? Or is it just a case of super area being extended that can’t be measured by the homebuyers?

Q. Why the homebuyers were denied an opportunity to evaluate/consult the Builder Buyer Agreement before making payment?

Q. Why is the builder abusing his own agreement with denial to pay penalty to the homebuyers for delay in delivery?

Q. Why is Victoryone asking for full & final payment even before the completion certificate?

Q. After having started fit out in the apartment and full payment received, will the builder compensate the buyers if tomorrow CC is delayed?

Q. Why many of the financial demands are not part of the agreement or were kept hidden at the time of booking?

Q. Does the BBA anywhere mention that only the builder has the right to penalize the buyers, in case of delay or alleged delay?

Q. Is the builder not liable to honour his own one-sided and arbitrary agreement with the buyers? 

These questions were raised before Victoryone Infraproject CMD, Sudhir Agarwal. But it seems the builder is so arrogant that he does not care to speak to the journalists.

Track2Realty maintains that in a market like Noida-Greater Noida that is notorious for the lack of professional practices, forget best practices, builders like Victoryone are breaching the low benchmark of builder-buyer trust quotient. It will not only dent the brand reputation of the builder but also affect the sales velocity of the overall market.

By: Ravi Sinha

Noida Extension weathered many challenges

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Bottom Line: No other property market or sub-city has weathered as many challenges as Noida Extension, now rechristened as Greater Noida West.

Noida Extension, Greater Noida Property, Greater Noida West, Delhi-NCR Property, Indian real estate market, India property market, Real estate news portal, real estate website, Real estate news in India, Track2Media Research, Track2Realty, NRI property market, Investment in Delhi-NCRStarting as an affordable destination, derailed by land acquisition litigations, regained with price escalation and higher FSI & density norms, and finally scaling up from affordable to premium housing, no other property market in India has weathered that many challenges and constant image makeover as Noida Extension. It has now been rechristened as Greater Noida West.

Largely viewed in the collective consciousness as the most affordable market of Delhi-NCR, probably the authorities did no justice to this market by positioning it as yet another micro market to supplement Noida and Greater Noida. More than the controversies and the litigations, the positioning of the market has been a challenge.

It was created as an altogether different micro market than Noida and Greater Noida but was never conceptualized as a sub-city, despite of the master plan having provisions of everything that a sub-city would need, including office spaces, IT spaces, retail, entertainment hubs, educational institutions and other necessary social infrastructure.

Post the controversies and clearances by the Supreme Court of India that ordered extra compensation to the farmers and the authorities, in turn, granting additional FSI (from 2.75 to 3.5) to the builders, the Noida Extension is still looking for an identity. This is despite the fact that the new launches in this part of the world, of late, are as much in the premium category as in the affordable segment.

The authorities, on their part, rechristened the name of the market from Noida Extension to Greater Noida West (that sounds like Meadows West of Texas). However, the market is still looking for an identity of a sub-city where even the official pin code has not been allotted thus far.

The question today is that with the kind of supply that is in the pipeline will Noida Extension grow out of affordable tag. Vineet Relia, Managing Director of SARE Homes feels that with upscale projects coming up in some areas of Greater Noida West and with the Stamp Duty in UP having been hiked from five to seven per cent, effective 1 April 2016, flats in Greater Noida West are bound to cost more. In such cases, the affordable tag will not be applicable to all projects in this region.

“Earlier, the positive verdict from the National Green Tribunal on the Okhla Bird Sanctuary issue was a big boost for developers and flat-owners in the region. But since properties in this region are on lease, transfer fees and lease rent also come into play, pushing up the total cost of the unit. Now, with the two per cent hike in Stamp Duty, there will be a further increase in property prices and that will impact sentiment negatively, putting a question mark on the affordable tag,” says Relia

Nikhil Hawelia, Managing Director of Hawelia Group points out that Greater Noida West is in line to deliver more than fifty thousand flats in the next three quarters and complementing Noida it will remain to be a destination for lower and middle income group. Majority of the apartment sizes in this region ranges from 700 square feet to 1500 square feet, whereas other adjacent sectors of Noida have 1200 square feet to 2500 square feet flats.

“Due to small ticket size and maintaining the equilibrium with Noida residential market, Greater Noida West will be considered as an affordable region for another couple of years. Initially the emphasis is always on meeting the basic needs and all construction and development works were majorly concentrated in fulfilling the required demand,” says Hawelia.

Analysts point out that with time and growth and settlement of MNCs, corporate houses and big scale industries in the next few years, a sense of high-end luxury residential as well as commercial establishments would be inevitable. After second phase of delivery, which is another four to five years down the line, this region will surely have great potential to become the next preferred destination for premium projects.

However, while Noida Extension is showing all signs to organically grow premium and shed the tag of affordable destination, the market is still looking for its distinct positioning as a sub-city.

 

Habitation challenges galore in Noida Extension

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Noida Extension, Greater Noida Property, Greater Noida West, Delhi-NCR Property, Indian real estate market, India property market, Real estate news portal, real estate website, Real estate news in India, Track2Media Research, Track2Realty, NRI property market, Investment in Delhi-NCRNo other residential micro market of India has arguably weathered as many challenges and controversies as Noida Extension. Its inception as a separate zone, other than Noida & Greater Noida, did lend credence to conspiracy theories against the farmers that culminated into land acquisition litigation. Since then it has been a sordid saga of project delivery uncertainties and homebuyers endless wait; not to speak of the additional charges levied as against the compensation amount hiked to the farmers.

Yet, Noida Extension is getting ready to be home to thousands by the end of this year. The well-planned region otherwise, the micro market still stands as a ‘no man’s land’ with not even an official pin code being given to the place.

From the standpoint of urban planning, it has the higher density of population than Noida or Greater Noida with around three lakh apartments under construction. The basic infrastructure is still very much a challenge and officially it is work in progress in Noida Extension. While the Greater Noida Authority (GNIDA) has laid power cables and built substations, the road network is still in a bad shape for habitation of nearly one lakh people very soon. There is only one school ready and the government officials claim land has been allotted for a few more as well as a hospital.

The GNIDA officials say water supply provisions for individual plot owners are in place, but for group housing societies, it is a builder’s responsibility. The industry body CREDAI does not seem to think it is their responsibility to take up the matter with the authorities. As a matter of fact, the CREDAI President Geetamber Anand even refused to speak on whether Noida Extension can be called habitation-ready.

The market is nevertheless going to be the address of those middle class who could not afford in any other part of Delhi-NCR. Most of the developers who started the projects early in the year 2010 are closer to delivery and many of them would offer the possession by early 2016. So, in all nearly 50000 to 60000 flats would be ready for delivery by that time.

In terms of its appreciation potential, the average salaried-middle class homebuyers got a shock in July this year, when the property consultant JLL in a report declared Noida Extension as high-risk zone and advised the homebuyers to stay away. The report had said that with around 2 lakh apartments coming up the market is not likely to appreciate. It seems now that Noida Extension is getting ready to deliver thousand of apartments, the outlook towards the market is changing.

Santhosh Kumar, CEO – Operations & International Director, JLL India says  that with the infrastructure developments happening in the region, and with better connectivity to Delhi and Gurgaon, Noida Extension is ready for habitation. With the rate cuts and cheaper housing loans, demand is going to be high in that region. Both the primary and luxury residential markets segments have high potential.

“At current estimates, around 21,000 units should be delivered by the end of the year. However, some projects may still miss the deadline. At a rough estimate, around 15-18 thousand units are likely to be delivered. The infrastructural developments in Noida, Greater Noida and Noida Extension are well planned, with road and metro corridors. Hence, there will not be much impact as far as the load on infrastructure is concerned,” says Kumar.

Nikhil Hawelia, Managing Director of Hawelia Group that is getting ready to deliver a project in Noida Extension early next year is bullish on the market. According to him, going with the present situation a number of developers has already started giving possession of residential units in different projects in Noida Extension. The region is on the fast track of progress. Great connectivity & infrastructure with required facilities have made this region a leading real estate market today. Already near to 300-400 families have moved and living here. At the same time the other related developments which are necessary for a comfortable and hassle free living are taking shape speedily.

“With the kind of development taking place in this region, it is undoubtedly all set to become an ideal destination for habitation by addressing all the required necessary facilities for a community living. Currently, basic daily needs are being addressed but it will take another 10-12 months for major facilities to be fully functional in the area. As of now, receiving a courier to your home address is a challenge in the existing scenario. Local transport facilities from authorities and state government are still not functional. Installation of a landline phone connection or internet facilities which are the necessity of today’s modern habitable living are still the concerns,” admits Hawelia.

Urban planning fundamentals suggest that for a city to grow as a residential or commercial hub and to lure its potential customers, there is the need to set in place its basic infrastructure and facilities which are the factors considered pivotal in decision making. Can Noida Extension be termed as investment magnet from that given benchmark? The opinion is divided but on paper there is definitely detailed planning of infrastructure, including the road connectivity network, sewage & sanitation, electrical, etc.

The developers active in the market assert that with a lot of developments across various sectors, and metro connectivity to all key destinations, this region will not add up to the load on infrastructure. They maintain it will become one of the fastest developing sub-cities in the NCR. Also in line to the residential developments, the required commercial developments, educational institutes, health & medical facilities and office & IT spaces are already part of the planning by GNIDA.

On the eve of festive season, as many of the homebuyers were evaluating their work-life balance post shifting to the new homes in Noida Extension, there came another blow to dampen the spirit. The Allahabad High Court ordered the demolition of numerous realty projects launched by various real estate developers including Supertech, Amrapali and Jagat Taran. The demolition of the high-rise building projects located in the Patwari Village of Greater Noida came in light of the fact that they are situated nearby graveyard areas, which according to the High Court, is illegal and therefore stand to be demolished accordingly.

The final vote of confidence, if not verdict, on Noida Extension is yet to come. However, within the built environment of Indian real estate everyone continues to whisper that Noida Extension has been a thriller micro market that has scripted many thickened plots.