Tag Archives: Indian property market news

Top 10 office property markets witnessed highest rental growth in 2017

Posted on by Track2Realty

News Point: As the office demand continued to intensify in Q2 2017, an upward pressure on rental values was observed in a few micro markets across India.

Office space in India, Office space absorption, Commercial real estate in India, Commercial property trends, Indian real estate market, Indian property market, India office market report, Real estate news magazine, Real estate news portal, Real estate website, Track2Media Research Pvt Ltd, Track2Realty, NRI investment in IndiaA high rental growth was seen mostly in South cities like Bengaluru, Chennai and Hyderabad where y-o-y change ranged between 8-17% at some locations. In H1 2017, Bengaluru and Hyderabad both witnessed single digit vacancy levels hovering between 8-9% due to a dearth of quality Grade A stock, thus leading to increased rental values in some micro markets.

In 2016, a few Pune micro markets witnessed a y-o-y rental growth of up to 19%.  Although the supply woes continue across Pune micro markets, rental values have stabilised in Q2 2017, after a considerable increase in 2016. According to Colliers Research, the top 10 office micro markets that witnessed the highest rental growth in 2017 are as follows:

Bengaluru – CBD

Bengaluru CBD micro market has always been the first preference of BFSI and IT occupiers primarily due to its connectivity and prime location. In spite of having limited availability of office spaces and supply, the micro market has witnessed 17% y-o-y rental appreciation.

Chennai – Off CBD

Chennai office CBD micro markets which is predominantly an IT market has observed 13% y-o-y rental growth. Apart from IT and BFSI, consulting companies have their setup in Guindy, MRC Nagar and Saligramam. In Q2 2017, Chennai Office CBD micro market accounted for 16% of total absorption.

Gurugram – DLF Cyber City (IT)

DLF Cyber City is an iconic and landmark commercial hub in Gurugram and is the top preference of domestic and international occupiers. Due to superior infrastructure and quality office spaces, DLF Cyber City has witnessed 12% y-o-y rental growth. The micro market holds 9% share in the total office space absorption in Q2 2017.

Pune – Hadapsar/Fursungi

Hadapsar market is emerging due to some notifying projects such as Magarpatta city and other projects offering large floor spaces. This micro market is predominantly an IT/ITeS market with residential localities in the nearby catchment area. Hadapsar market has observed 10.2% y-o-y rental growth.

Pune – Kharadi

Kharadi is one of the fastest growing commercial micro market and is rising as an IT hub. In the past few years, Kharadi has seen good projects like EON IT Park which is one of the largest IT Park in Pune. It will also witness significant amount of office spaces in the next 3 years. Rents in this micro market have increased 10.1% y-o-y.

Bengaluru – EPIP/Whitefield

The commercial micro market in EPIP/Whitefield has ample availability of large floor spaces and Grade A developments are attracting occupiers to consolidate their operations in this micro market. The micro market in the eastern Bengaluru has witnessed rental growth of 10% y-o-y.

Hyderabad – SBD

The SBD market in Hyderabad has prominent locations such as HiTECH City, Madhapur, Gachibowli and financial district. In Q2 2017, 89% of total leasing volume was concentrated in SBD due to superior amenities and reasonable rentals compared to other cities. Rents in SBD grew by 10% y-o-y.

Bengaluru – Electronic City

One of the preferred micro markets in Bengaluru with comparatively cheaper rents than other markets of the city offering large floor spaces and superior quality office spaces which grew by an average of 9% y-o-y.

Chennai – OMR Post Toll

Increasing popularity of OMR Post Toll micro market has shifted occupiers focus to this market and witnessed gross leasing of 33% of total absorption in Q2 2017. This micro market includes locations like Navalur, Sholinganallur and Pallavaram-Thoraipakkam Road which is popularly known as IT corridor of Chennai and has observed 8% y-o-y rental growth.

Bengaluru – Hosur Road

Hosur road is an emerging IT/ITeS micro market in Bengaluru with cheaper rates mainly due to its location. This micro market is located in the peripheral area of the city and has the potential to develop large projects due to ample land availability. Hosur Road market has witnessed 8% y-o-y average rental growth.

Options for Jaypee homebuyers after insolvency

Posted on by Track2Realty
Track2Realty Exclusive

Bottom Line: Despite of uncertainty and legal limitations after the NCLT’s insolvency verdict against Jaypee Infratech, all is not lost for the invested homebuyers. Ravi Sinha explains the options in hand for the homebuyers.

Jaypee Wishtown, Jaypee homebuyers, Jaypee cheated homebuyers, Jaypee Group Insolvency, Legal options for Jaypee homebuyers,  Homebuyers asking Jaypee Group, India real estate news, Real estate news India, Indian property market news, Investment with Jaypee Group, Track2Media Research, Track2RealtyAbhinav Kanchan works with one of the most reputed developers of Bangalore. He naturally understands the importance of home buying with a credible developer. He therefore booked his flat in Noida around seven years back with Jaypee Group’s integrated township Wish Town. After all, Jaypee Group had been among the market leaders at that point of time. On the insistence of the builder he even made an upfront 90% amount and is paying a hefty EMI (Equated Monthly Installment) to the bank every month since then.

Today, the news of insolvency and bankruptcy of Jaypee Group has completely shattered his post retirement plans of settling in Delhi-NCR with the family. Abhinav is not alone to curse his fate and question where has he gone wrong in his judgment.

Doctor D N Rao has a similar story where he bought an apartment with an upfront payment of 90% at Garden Isles apartment with Jaypee Wish Town. This retired doctor with all his post retirement corpus stuck with uncertainty is today making frenetic calls to friends and relatives to find out whether his hard earned money has been washed out by the builders’ fiscal mismanagement.

It is not just a story of one or two, but more than 30,000 homebuyers are cursing their fate and asking the same question: how can they recover their hard earned money?

Possible remedy for homebuyers 

Never stop paying the EMIs

Join the NCLT proceedings to register your claim

No litigation is possible during the NCLT proceedings of 180 days

One can also explore remedy under the RERA

If not satisfied with NCLT judgment, appeal to higher tribunal of NCLAT

There is no High Court jurisdiction into it

If not satisfied with NCLAT then case with Supreme Court is the final recourse

Genesis of crisis

The Allahabad bench of NCLT on 9th August admitted a petition by IDBI Bank for insolvency proceedings against Jaypee Infratech and approved the appointment of an interim resolution professional. The professional will get 180 days (plus 90 days) to turn around the company’s finances and see if a resolution of the company’s debt is possible. In case this is not possible, the company’s asset will be liquidated. 

The company, with interests in road and real estate sectors, had a consolidated debt of INR 7,922 Crore as on March 31st 2017. 

Desperate instinct

Many of the homebuyers in their desperate instinct are thinking of immediately stopping EMIs (Equated Monthly Installments) to banks. However, many of them are conscious of the fact that stopping EMI is not a solution. If buyers stop servicing their home loans (as they are not sure if they will get a house), it may impact their credit rating.

Many of the homebuyers, mostly in their first few years of job, are stuck as they can neither get a new housing loan nor any other study loan. If they stop paying the EMI, banks will also get affected and their NPAs will increase manifold.

However, any future interpretation by courts will definitely take into account the defaults, if any, on part of the homebuyers. It is hence advised that during this interim period buyers remain legally compliant in order to be declared defaulter.

Legal limitations 

As per the prescribed norms defined under the Insolvency and Bankruptcy Code, 2016, the amount will first be distributed among secured creditors such as banks and the remaining amount will be passed on to the unsecured creditors who are the homebuyers.

The homebuyers demand that NCLT has to consider them as stakeholders in the insolvency proceedings since they have financed Jaypee Infratech for the construction of these projects. However, the legal position is that the homebuyers are not the financial creditor at par with banks. 

Catch 22 

The case has been admitted under Insolvency and Bankruptcy Code and an Interim Resolution professional has been appointed. He will first take stock of company’s finances, assets and liabilities and try to work out a restructuring package in consultation with all stakeholders. 

Homebuyers have been given time till 24 august to raise claims related to their investment in the Jaypee projects. But the whole process of refund is complex as under the Code, an insolvency resolution professional appointed by the NCLT will have to address the financial issues during this stipulated period and if he fails to turn the company around in order to make it financially viable again, the NCLT will have to liquidate the assets of the company to recover money owed. 

All the aggrieved parties will be heard by the insolvency professional and it shall depend on the NCLT to decide whether aggrieved homebuyers will be treated as financial creditors or not. 

Homebuyers’ options

Suvidutt Sundaram, Advocate-on-Record at Supreme Court of India suggests that any order can be challenged by the homebuyers. He suggests that the homebuyers must explore other options before approaching the Supreme Court. The homebuyers should immediately join the NCLT proceedings and register their claim. But they must never stop paying the EMIs.

“No litigation can be initiated right now against the debtor during this 180 days of period, that is what the Insolvency and Bankruptcy Code clarifies. If they are not satisfied with the final order of the NCLT, they have the option to appeal it before the National Company Law Appellate Tribunal (NCLAT). There is no role of High Court into it and the buyer, if still not satisfied, can approach the Supreme Court,” says Suvidutt.

Advocate Aditya Pratap of Bombay High Court makes it an important observation when he says that unlike Maharashtra Ownership Act the UP Apartment Owners’ Act of 2010 is a very shoddy piece of legislation which leaves many loopholes for builders. According to him, as per the Companies Act the homebuyers are also creditors since they can also file a winding up petition, if the company is unable to pay the debt.

“Homebuyers are technically creditors to the company. The definition of creditors under the Companies Act is a very open-ended definition. But with the Insolvency and Bankruptcy Act there are many kind of creditors, including the secured creditors, unsecured creditors and the Decree Holders.  Now this Decree Holder term is very important as it implies that any homebuyer who could get a decree from any court of law. So, if you get a decree from a court or RERA then the decree can be executed through the Interim Professional appointed by the Insolvency and Bankruptcy Act,” says Pratap. 

By: Ravi Sinha

Track2Realty Impact: Noida MLA Pankaj Singh calls for unified apartment associations’ meet

Posted on by Track2Realty
Track2Realty Impact

News Point: Noida MLA Pankaj Singh takes cognizance of Track2Realty Open Letter; calls for unified meeting with elected members of apartment owners’ associations. 

Noida MLA Pankaj Singh visits Sector 137,  Pankaj Singh Noida MLA, Dump yard in Noida Sector 137, Shift dump yard in Noida, Residents demand dump yard removal from Noida Sector 137, India real estate news, Indian property market news, Real estate news India, Track2Realty, Track2Media ResearchNoida MLA Pankaj Singh today, August 12, took cognizance of the Open Letter by Track2Realty asking for elected members of apartment owners’ associations to represent respective societies and the sector.

Track2Realty had on Thursday, August 10, wrote an open letter to the MLA to apprise in-fighting among the volunteers on the issue of campaign for shifting dump yard from the sector. The real estate think-tank media group had suggested him to meet the elected representatives of the apartment owners’ associations.

On his visit to Sector 137 today, the MLA suggested that instead of a motley crowd it would serve more purpose if the residents’ causes and concerns are represented through elected bodies and formal channel of communication with the government representatives is established.

He offered full cooperation and help in getting the civic issues addressed through joint and concerted efforts of the sector represented by the elected members.

The MLA promised facelift for Sector 137 with streetlights, plantation, surveillance cameras, security and safety for women. He nevertheless made no commitment for immediate removal of dump yard in the neighbourhood. He only asked the Noida Authority officials to look for ways & means to shift the dump yard in a phased manner. 

Noida MLA Pankaj Singh made this visit to Sector 137 amidst a growing demand for shifting of garbage dump yard from the sector to the proposed site at Astroli.

VK Ashthana,  senior citizen from Paras Tierea, raised the issue of lack of civic facilities, like sanitation and also called for the surveillance cameras, street lights etc to ensure safety and security in the locality.

“In the absence of street lights and camera the area has not only turned out to be accident prone but also it is a serious threat for the safety of women. Similarly, lack of public toilets is needed in the area to keep the city clean,” said Asthana.

The gathering was attended by residents from the 8 housing societies. They were joined by hundreds of villagers from the nearlby villages under the leadership of BJP youth leader Naveen Bhati.

By: Ravi Sinha

Bhiwadi turning into affordable luxury destination

Posted on by Track2Realty
Track2Realty Exclusive

Bottom Line: Though affordable housing might be its USP for long, the entry of malls, multiplexes and other lifetyle options have turned Bhiwadi into affordable luxury destination.

Ashiana Angan Bhiwadi, Ashaiana Angan Phase 3, Delhi NCR real estate, Bangalore Real Estate, JLLM, Jones Lang LaSalle Meghraj, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, KP Singh, DLF, Unitech, Emaar MGF, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Indiabulls real estate, BSE, Bombay Stock Exchange, Mumbai Real Estate, India PropertyMayank Talwar, a mechanical engineer was transferred by his office to Bhiwadi in the year 2010; much to his disliking. After all, he had worked in some of the leading cities like Pune, Nagpur and Gurgaon. At a time when the recession was at its peak and companies offering pink slip he had no choice but to move to what he thought like a capital punishment.

Four years down the line, Mayank has all the reasons to feel it was a stroke of luck that brought him to this city. Reason: Today he finds the same kind of lifestyle options emerging in Bhiwadi that he was missing out when he first moved over here. The best part of the deal is that he could afford to buy a relatively luxurious apartment in Bhiwadi; though he could not afford even affordable apartment in other luxury cities that he previously worked.

“I have all the reasons to smile for my stay in Bhiwadi as I could buy a luxury apartment with the kind of moderate budget that could not offer me even a decent roof over the head in other leading cities. Moreover, with the kind of malls, retail brands, hangout zones and night out options that are emerging in Bhiwadi I feel it was blessing in disguise that I was transferred to this city. Bhiwadi truly offers all the lifestyle options today and the best part is that it is affordable luxury living over here,” says Talwar.

Analysts tracking the market in this part of the world are not surprised either. They believe the seemingly two contrasting concepts of affordable and luxury has shaped up so very well in the city that the aspiring middle class with relatively moderate budget and luxury choices finds Bhiwadi a natural nestling zone. After all, Bhiwadi carries the tag of affordable destination since land price in this micro market is still on the lower side compared to Gurgaon and this is the reason why property in Bhiwadi is available at approximately one tenth the price of Gurgaon. However, due to its location, Bhiwadi has been pulling out buyers from NCR, Gurgaon, Manesar to name a few.

Moreover, Rajasthan State Industrial Development and Investment Corporation (RIICO) is providing excellent facility with no issues on infrastructure, water, power whereas these are the bottlenecks even in the neighbouring industrial model township Manesar. It is working two ways—while it is attracting more and more industries over here, even the aspiration level of the local population has gone up and that spells well for the overall economic growth and property market of Bhiwadi.

Nikhil Hawelia, Managing Director of Hawelia Group thinks for long the markets in general and the housing market in particular has been characterised by two contrasting mindsets of affordable and luxury but the quest of the biggest buying group in middle class has been a fine balance of both. He says it can easily be vouchsafed that Bhiwadi fits into this space and ideally this should be the positioning of Bhiwadi.

“The best part is that affordable luxury living in Bhiwadi has not emerged by design but by default to a large extent, as the city was initially planned as the industrial zone from commercial standpoint and retirement zone from residential standpoint. This natural evolution, instead of a concept being pushed by the market forces, suggests that affordable luxury is a sustainable concept in the city and it is here to stay. For the ultra luxury seekers there is always a high end property market in the nearby Gurgaon city,” says Hawelia.

However, Gaurav Gupta, Director of SG Estates finds the affordable luxury living ingrained in the very basic DNA of the city. He asserts that there are not one or two but a multiple of factors that have helped NCR locations like Bhiwadi and Raj Nagar Extension getting shaped up as affordable luxury locations. The best part is that these markets do have their own distinct identity without competing with the ultra luxury locations in the vicinity.

“It is not just about the vicinity to the ultra luxury locations like Gurgaon which is helping these locations; rather the economy of the region is driving the market to a point of affordable luxury. Very much like Gurgaon where the young expat professionals have raised the bar of living, in Bhiwadi too they are the prime demand drivers. However, unlike Gurgaon where the presence of IT/ITeS and hence better pay package leads to demand of ultra luxury living, in Bhiwadi the major economy is the manufacturing sector. In manufacturing sector you don’t have as high paying jobs as the IT/ITeS and hence the positioning of the city has been as affordable luxury destination,” explains Gupta.

Dhirender Gaba, Managing Director of Fairwealth Housing does not seem to agree with the theory of economy of sustenance that has positioned Bhiwadi as the affordable luxury destination. According to him, this is the first wave of luxury and lifestyle choice in the city and the process of evolution will take its own time before the city transforms into a complete corporate city that is a choice destination for the upwardly mobile young professionals. The early indications are definitely encouraging for all the stake holders in the city.

“Bhiwadi has rather picked up fast due to peer pressure of lifestyle choices in Gurgaon-Manesar region. Most of the urban corporate destinations have taken time to scale up in the value chain of luxury and lifestyle. But if the aspiration quotient of the city as affordable luxury destination is any indication, there is a mega global city emerging out of Bhiwadi. What I can bet over at this point of time is the fact that the positioning of Bhiwadi as a key corporate city can only be delayed but not denied,” says Gaba.

The question is in the absence of high paying economic activity like IT/ITeS will the city keep the desired pace to sustain the projected growth and the life style. Critics often point out that in the absence of steadfast pace of economic activity the market may end up being another investors’ haven. However, developers active in this market maintain that more employment opportunities have seen people preferring to stay in Bhiwadi than commute to work. Also, a large number of floating population from nearby cities and across the country is still high, which needs to be catered to in terms of their aspiration and lifestyle choices. The rise of nuclear families have further seen emergence of more demand for dwelling units in the region.

The biggest challenge for Bhiwadi for quite some time has been the socio-economic barrier as spending habit was not there in the old Bhiwadi population. But with the expat young population settling in the city not just the eco system but the whole mindset changed over a period of time.

Today, malls and lifestyle driven brands are further promising to change the lifestyle of the city and Bhiwadi may change its outlook in another few years. Most of the real estate developers in the city are also seasoned players in business who understand the opportunity cost with land being cheaper. They may eventually have the first-movers advantage and their initial foray have already been proved to be a game changer move for the city. It is still a transition phase of lifestyle and it is also a learning curve for Bhiwadi.

Noida Sector 137 residents form human chain to protest

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News Point: The residents of Noida Sector 137 are protesting against the garbage dumping in the neighbourhood that threatens serious health hazards.

Noida homebuyer protest, Noida Sector 137, Unhappy homebuyers in Noida, Protest in Noida Sector 137 against garbage dump, Homebuyers on streets in Noida, Indian real estate news, Indiaproperty market, Track2Realty, Track2Media ResearchA large number of residents living in the eight housing societies of Sector 137, Noida formed a human chain to protest garbage dumping in the neighbourhood. The residents had to take to streets after their repeated demand to stop garbage dumping in the area went unheard. The residents have now threatened to move to NGT (National Green Tribunal) over open garbage dump.

The official apathy has been dragging the issue for months despite of many RWAs (Resident Welfare Associations) agreeing to the suggestion of Noida Authority to bear the partial cost of purchasing compost biodegradable machine. All the complaints made to Noida Authority thus far have made no difference.

The Noida Authority had earlier proposed the scheme under which the Authority will bear 75% of the cost of the machine that would produce compost from biodegradable waste. The remaining cost will have to be borne by the respective RWAs.

The residents of the area complain that the dumpers are fetching the garbage from all across the city. Even the industrial waste from the nearby SEZ region is being dumped over here. It is thus slowly turning the locality into a Ghazipur landfill site kind of stinking place.

It is a serious health hazard for residents of the nearby housing societies and not only the ground water is being contaminated but the residents can not open their balconies due to stench.

The residents demand that the garbage dumping, a temporary arrangement made by Noida Authority, two years back, should be immediately shifted to the proposed solid waste cycling location at Astoli.

Noida Homebuyer ProtestIndependent study has pointed out that Noida’s 14 lakh population generates nearly 660 tones of waste daily. However, the 40-year-old city still does not have a landfill site to dispose its municipal solid waste, which instead is dumped on roadsides and in vacant spaces. The large chunk of this waste is, of late, being dumped along the Noida Expressway.

The residents of housing societies from Exotica Fresco, Paramount Floraville, Gulshan Vivante, Ajnara Daffodil, Paras Tierea and Purvanchal Royal Park took part in the protest. The local villagers are also supporting the move.

HO Katiyar, a senior citizen of the area says, “It is time for a collective action and unless we make our voices heard to the government and the authorities this place would not be worth living in the time to come. It seems the authorities have thus far not taken our requests on a priority basis.”

Gaurav Gupta, the founder President of resident association of Paras Tierea says he is happy for the fact that at least for the cause of healthy living the various societies of Noida Sector 137 came forward. We will take this fight forward till the issue is resolved.

“It is a welcome beginning. We have now realized that time has come to get out of our comfort zones for the sake of our healthy living and for the future of our children. The authorities have no choice but to listen to us and address our legitimate grievances,” says Gupta.

Raj Kumar Sharma, a resident of Supertech points out the plight of children of apartments who can not even move out in the society lawn due to stench. According to him, the representation to Noida Authority has not met with success and the parents are forced to keep children indoors to save them from polluted air.

“When we met the Noida Authority CEO we were told that the dumping would stop in the next one or two months. Now even after eight months of our meting they have not taken any step and now they are saying it will only be stopped as and when the officials make another arrangement. Nobody knows what is the deadline of this as and when arrangement,” says Sharma.

Vijay Rawat, another resident of Purvanchal Royal society has similar story to narrate. He asks when the Master Plan of the locality does not have any such dumping ground in the vicinity why are the officials forcing the residents to live with this unpleasant reality.

“When we bought the house here there was no such dumping ground in their scheme of things. This is like cheating with about 20,000 homebuyers spread over eight housing societies of the sector,” says Rawat.

Since the Noida Authority has failed to respond to the complaints of the residents, people hence formed today’s human chain to mark their protest. All eyes are now on the NGT to make a positive intervention. After all, the sector is a planned township project carved out by the Noida Authority and the residents have paid good amount to buy their apartments over here. Today, they get a feeling as if living in an illegal colony where the garbage and all sort of solid waste are arbitrarily being dumped.

By: Ravi Sinha

Mumbai ready for ready to move apartments

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Track2Realty Exclusive

News Point: A Track2Realty survey in Mumbai finds that more than seven out of ten, 72%, of the homebuyers wish to buy ready to move apartment now.

Mumbai City, Mumbai property market, Indian real estate news, Indian property market, NRI investment in Mumbai, Track2RealtyIt seems post the GST and RERA the focus of the buyers have shifted to ready apartment with no execution risks and the GST liability. The buyers even maintain that they won’t mind paying a premium for the ready to occupy apartment.

Ready to move apartments are even bringing the fence sitting buyers back to the market now. With many ready to move and near completion projects available in the Mumbai market, the prospective homebuyers are now coming forward for the standing inventory with more confidence.

“With a ready apartment paying the premium is a myth. It is basically the interest paid by the developer that is shifted to the buyer, which is reasonable. If I get the house immediately after having made the payment and I am not under the double burden of the rent as well as the EMI, I won’t mind paying a premium for that. This is anyway saving me from the execution uncertainties and endless delays,” explains Rajat Pathak, a homebuyer in Ghatkopar.

It is interesting that the RERA which should have ideally served as a comforting factor for the buyers of under construction projects is viewed very cautiously in the Mumbai market. Nearly half of the respondents, 48% say RERA alignment with the  market will take sometime and as of now it is better to buy a ready apartment.

The verdict in Mumbai is loud and clear: majority prefer ready to move property even though degree of choice might vary in various locations. As a matter of fact, within the Mumbai Metropolitan Region (MMR), the established locations and the locations that are business destinations are more sought after for ready to move properties. On the other hand, periphery locations have less preference, compared to established locations, for ready to move properties.

The survey finds that in the business driven markets like Bandra, BKC, Juhu, Goregaon or Andheri a vast majority, 78 per cent to be precise, wants a ready to move property. On the other hand periphery locations like Dahisar, Mira Road, Vasai, Virar, Kalyan or Dombivali the preference for ready property is relatively lesser. But a majority of buyers, 56 per cent nevertheless prefer ready to move property only on the periphery locations also. In between there are locations like Cuffe Parade or Bombay Central where the demand for ready to move property is as high as 64 per cent.

Why Mumbai prefers Ready to Move

Buy what one sees: When a buyer invests in a ready-to-move property, he/she buys all the amenities or facilities that are present on the property, including furniture, electrical switchboards, fans, air conditioners and other appliances. Given this scenario, there are no chances of being cheated with regards to the amenities involved. 

Enjoy immediate possession: Be relieved from rent; in case the buyer was previously residing in a rented home. 

Avoid paying GST: There is no GST liability on the ready to move property.

What discourages ready-to-move

The arrangement of money in a short span of time: The total cost must be paid at one go, for down payment, registration, etc. 

Price premium: Higher cost price as compared to an under-construction flat, since it includes cost of risk premium and developers’ interest cost. 

No customization option: Little or no option for internal changes/custom design in configuration. 

Industry speaks

Manju Yagnik, Vice- Chairperson of Nahar Group admits that in Mumbai ready to Move flats will be more in demand as homebuyers are now gradually opting for ready possession flats. Under construction purchases lead to consumers bearing additional financial burden of paying rent for existing accommodation along with home loan installments. With keeping the current scenario in mind, buyers would want to go with the safer option, which is ready to move flats.

“With the downturn in the last couple of years and a high unsold inventory, it is a good option for buyers to invest in a ready to move flat, rather than wait for a new project to come up over a period of time. Ready possession apartment offers homebuyers a chance to side-step the risks of buying under-construction properties that may be prone to inordinate delays,” says Yagnik.

Rahul Shah, CEO, Sumer Group, on the contrary, advocates for the under construction projects that are RERA compliant. He maintains that since developers are required to complete the projects in the time frame declared originally, the buyer’s interests are protected under the RERA Bill.

“Given the scenario, it would be wise to invest in projects that are under construction. This will help the buyer save upon the cost price of the property, “ says Shah. 

The voice vote in the city property market nevertheless is for ready to move apartments. The primary benefit of buying a possession-ready house is that a buyer can save on rent for current accommodation while shelling out EMIs on the home loan. Also, if one does not plan on using it as the residence, one can let it out on rent and start earning an income right away. One of the key factors while purchasing ready to move in apartment is that one gets to see the overall view of the house, the apartment and amenities.

By: Ravi Sinha  

Cushman & Wakefield appoints Somil Agrawal as Head of Strategic Marketing

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News Point: Cushman & Wakefield, has appointed Somil Agrawal as the Head of Strategic Marketing for its India business.

Somil Agrawal, Cushman & Wakefield, India real estate news, Indian property market news, Investment in Indian real estate, Track2Realty, Track2Media ResearchIn his new role, Somil will be responsible for strengthening the Cushman & Wakefield brand in India and driving demand generation in line with our global strategy. He will be reporting to Anshul Jain, Managing Director – India, Cushman & Wakefield.

Somil has over a decade of experience with leading organizations like Airtel and Cisco, across different functions and geographies. In his last role at Airtel, he was responsible for driving product innovations for the national mobile internet business and leading strategic business partnerships.

Prior to this, he was responsible for leading the marketing strategy and Go-to-market initiatives for the national mobile business. Somil completed his MBA from IIM Lucknow and is an engineering graduate from NSIT, New Delhi.

“Cushman & Wakefield has led the international property consulting sector through its disruptive and innovative actions over the years, redefining the business in India. Somil comes to Cushman & Wakefield with a wealth of experience in the field of technology and consumer marketing and brings a fresh perspective to our initiatives to consistently delight our customers. I wish him the very best for his new role and look forward to working with him.” Says Anshul Jain, Managing Director, India, Cushman & Wakefield.

“Cushman & Wakefield is an established name in the industry renowned for its quality of service, integrity and its entrepreneurial attitude. The company has created landmarks in the International Property Consulting domain that have gone on to define the sector. I am happy to be a part of this organization and look forward to working for a brand which is a perfect blend of legacy and futuristic thought process,” says Somil Agrawal, Head of Strategic Marketing, India, Cushman & Wakefield.

Noida Authority CEO defiant amidst conflict of interest

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Track2Realty Exclusive

Bottom Line: Though Track2Realty doesn’t endorse or deny the allegations against Noida Authority CEO Amit Mohan Prasad by Grihpravesh Buildteck CMD asking for a free apartment, there are many unanswered questions in what appears to be a case of conflict of interest on part of Noida Authority CEO.

Noida Authority, Noida real estate, Noida Property Market, Noida in Delhi-NCR, Noida News, Noida Development, India real estate news, Indian property market, Investment in NoidaThe allegations by a real estate developer Abhay Kumar, CMD, Grihpravesh Buildteck, against Noida Authority CEO, Amit Mohan Prasad is not something that often happens in the real estate business in this part of the world. On the contrary, there is a collective conspiracy of silence on the issue of favours (both cash & kind) being exchanged between the two sides. And hence, on a rainy day the news of the Noida Authority CEO asking for undue personal favour spread like a wild fire.

With the kind of clout that the position of Noida Authority CEO enjoys, the media nevertheless went slow and treaded cautiously in what should ideally have been the headlines for the week. It was nevertheless the talk of the town and even the industry body CREDAI immediately huddled to whisper the whole day.

The story goes like this: builder accuses Noida Authority CEO of demanding bribery and harassing for free flat. Abhay Kumar took the moral high ground to sound like a war cry for clean system when he levied strong charges against Noida Authority incumbent CEO of continuous harassment after former declined to provide him with a free flat in his project at Sector 77, Noida.

Amit Mohan Prasad already has a purchased apartment in the project along with three of his other relatives but he later started demanding another one for free.

Abhay Kumar says, “Our project had acquired completion certificate in December, 2015 itself and Amit Mohan Prasad had also purchased a unit in the same. However using his rank and power as a senior IAS officer he kept insisting for a free flat in the same project. Things became worse after he took over as Noida Authority CEO. Registry of flats was stopped abruptly with no proper reason provided. However same was resumed after I sought intervention of a Cabinet Minister in UP Government.”

The builder alleges that a high power team was sent to demolish the fencing inside the project to build more pressure. Interestingly both Grih Pravesh CMD Abhay and CEO Amit Mohan come from same school in Jharkhand and are also known to each other through Alumni Association.

As expected, Noida CEO Amit Mohan Prasad has rejected these allegations and has called them false and fabricated. His version is, “The demolition of grills encroaching upon the common green area of residents was taken up by the Authority after giving notice and ample opportunity to the builder to remove the illegal encroachment on his own. The action was initiated on the complaint of residents of that group project”.

He also said that suitable action of defamation will be taken against the builder. The builder maintains that it has been pure vendetta against him.

Track2Realty is in possession of the correspondence between builder and the Authority CEO when he was in his previous position as Joint Secretary, Ministry of Health & Family Welfare in 2011 and later as Principal Secretary with NFL (Numaligarh Refinery Limited) in 2014. In what clearly appears to be a case of clash of interest Amit Mohan Prasad as the homebuyer always had correspondence with the builder on the letterhead of Government of India official position.

The builder claims, through his documents, he has obliged the officer with interest waiver many times due to his official position. According to the builder, ever since he became Noida Authority CEO the harassment started for a free apartment. He has lodged a complaint against him with Prime Minister Narendra Modi and Uttar Pradesh Chief Minister Yogi Adityanath.

The Noida Authority, on its part, claims the demolition at the project was as per government orders to conduct a drive against developers who are harassing homebuyers. However, Track2Realty also has in its possession the sting operation of conversation between the builder and the man sent for demolition, Praveen Shrivastava, Chief Architect & Town Planner (CAP) of Noida Authority.

In the audio conversation, the CAP is categorically saying that he is satisfied with the project but the mandate by the CEO is to target the builder. Shrivastava insists unless the builder goes and pacifies the CEO, he will be victimized for personal grudges.

Immediately after this sting audio was released in the public domain, a defiant Amit Mohan Prasad suspended Praveen Shrivastava, due to retire on 31st July. Praveen Shrivastava was suspended for allegedly not ‘respecting seniors, showing a lack of faith in the government and negligence in discharging official duties.’

It is not just about the senior expecting the junior to succumb. Even the media was subject to harassment, humiliation and high handedness. This journalist had to face the ire of relative of Amit Mohan Prasad. His brother-in-law, Purusheshwar Sahay, an employee of NHPC who also has a flat in the same apartment of Grih Pravesh, went on an abusing & accusing spree on social media. The journalist has been subject to filthy abuses and calling names for reporting on the subject. Even the threat of government power through Information & Broadcasting Ministry was attempted at.

The direct attack on media continued till he was warned that all the snapshots of his abusive discussions over Facebook would be sent to the CMD of NHPC. He immediately deleted all the discussion thread fearing disciplinary action in office. Track2Realty has screen shots of the same.

This whole episode has left many questions unanswered on part of Amit Mohan Prasad, Noida Authority CEO:

Question1: Why did Amit Mohan Prasad always use the Government of India official letterhead when sending letters to a builder for buying a house? Isn’t it clash of interest?

Question2: Why is he silent on waiver of interest penalty by the builder?

Question3: If there has been complaint by the homebuyers against the builder, why didn’t he call for a builder-buyer meet like with many other defaulter builders?

Question4: What has been the urgency to stop the registry of a project that received the CC (Completion Certificate) some 18 month back?

Question5: Why has he been lenient over other bigger defaulter builders in Noida?

Question6: If the builder had encroached upon the open spaces, what action did he take against the Authority officials who had given the CC?

Question7: What was the provocation and urgency to suspend Praveen Shrivastava who was due to retire on 31st July?

Question8: Is Amit Mohan Prasad aware that his brother-in-law Purusheshwar Sahay, an employee of NHPC who also has the apartment in the same society, is abusing the journalists with all possible foul language for reporting on the issue?

The larger question that everyone is interest to be answered is: whether the BJP Government that claims “Zero Tolerance” on corruption will take any action against Amit Mohan Prasad till he comes out clean???

By: Ravi Sinha

Realty growth changing Gujarat’s urban landscape

Posted on by Track2Realty
Track2Realty Exclusive

Bottom Line: The real estate markets of Gujarat, most notably Ahmedabad and Vadodara are case studies in rapid development. The cities have kept pace on all the given scales of development—real estate developments, infrastructure growth and the economic vibrancy.

Ahmedabad real estate, Surat real estate, Vadodara real estate, Gujarat real estate, Urbanisation in Gujarat, Property market of Gujarat, India real estate news, Indian property market news, Track2Realty, Track2Media ResearchUrbanisation is inevitable and it changes the very look and feel of the cities across the country. However, probably none other city has been completely transformed the way cities like Ahmedabad and Vadodara and traditional old world charm has been overtaken by a thriving urban metropolis.

Facts speak for themselves. In terms of investment and infrastructure the state has been the front runner and most of the investment and urbanisation has happened in the cities of Ahmedabad and Vadodara. No wonder, the developers from across the country, some of them even with a strong foothold in the matured property market like Mumbai and Pune, are today flocking to Gujarat. To add to it, some of the developers in the state have also grown big enough to expand their footprint in other markets across the country.

Analysts debate how far the real estate growth has affected the classic charm of Gujarat, as there is a visible change in the new buildings of the city as against the classic old ones. It seems there is a change of generation in terms of living standards and urban outlook in this part of the world. These cities are growing at the fastest pace ever and Ahmeadabad and Vadodara have seen urbanisation transform the perception of the cities from a mere trading city to an emerging global metropolis. People come here for jobs, to earn a livelihood and to improve their lot. This increasing population has impacted the society as well.

In any given developing economy, people move in to an area and infrastructure follows. Whereas in Gujarat the infrastructure has always been better than many of the other Indian cities and the migration has only made sure that the developers have kept up the pace of development extremely well with the growth of the city. Urbanisation has triggered impeccable makeover in the city of Ahmedabad and Vadodara. As a result, Gujarat today stands out as one of the best investment magnet and that is driving the migration and urbanisation. Needless to add, the role of the real estate developers cannot be denied or undermined in this growth story.

Though some of the urban experts lament the fact that Gujarat is fast losing its old look, residents of Ahmedabad and Vadodara are rather happy that the growth in the realty market and infrastructure has also brought economic prosperity in the state. They believe the only way forward is increased urbanisation, though the direction of the growth has often been debated as well. Urbanisation has impacted the Gujarat market in many ways. Primarily one can observe that it is not only the Gujarati which is the predominant mother tongue of the city. It is still the most popular language used but it is fast being replaced by Hindi and English. Secondly, it is no more a cost conscious market in terms of its spending habits. The migrant population and the entry of big brands have completely transformed the outlook of the state’s market and economy.

A local real estate agent says that Ahmedabad has grown fast and hence the look of old Ahmedabad has been restricted to old city. Vadodara has retained some of its look; however most of the new areas have no relation to classic Vadodara. According to him, the change is too fast to be noticed and he rates Ahmedabad as 50 per cent and Vadodara as 65 per cent in retaining the classic looks.

“Urbanisation has reduced the population in Villages. Rapid migration to cities both Indian and foreign has made ghost towns out of prosperous villages. At the same time the development of the cities has been very good. The infrastructure has been improving steadily and the lifestyle of people has improved like any other metro city. Surat, Vadodara and Ahmedabad have a healthcare, education, eating out options, hotels, etc like a good city. The mindset of people also has been opening up to modern society of cosmopolitan people,” says the agent.

A regular traveller of Vadodara, Pranay Vakil, Chairman of Praron Consultancy wonders whether there is any method in the madness the way city is growing. According to him, the city fast needs to adopt a planned development model, failing which it would be an urban nightmare.

“You travel to Vadodara on a regular basis and it may not affect you since the real estate growth in the city has been quite constant. But if you visit the city after a gap of a few years, it hits hard on you. You start wondering whether someone is actually monitoring in which direction the city is growing. Some method is indeed needed in this madness to make sure the city does not look completely different than what it used to be,” Says Vakil.

Some of the analysts tracking the market maintain that the load on land and infrastructure is leading Master Plans redundant in terms of uneven growth. They suggest that master planning needs to improve to handle the load. Uncertainty is no excuse of not planning. In fact planning should take care of all eventual possibilities so that the resource utilisation is optimum. If that is done, Gujarat can truly emerge as a global destination.

This brings to the table the moot point as to what should be the roadmap ahead to stop the Gujarat markets from turning out to be urban nightmare. Analysts maintain proactive master planning body is a necessity. The urban development authorities across the state are a confused lot with the pace of development beyond their expectations. While there are thousands of illegal constructions across the cities of Gujarat, legitimate projects are delayed due to impractical rules. The government should have clear cut guidelines and focus on progress of the city rather than bring hindrance in form of impossible rules. The developers suggest that the government should learn from successful cities worldwide to make four of the top cities of Gujarat the best cities in India.

Redevelopment & luxury housing symbiotic

Posted on by Track2Realty
Track2Realty Exclusive

Bottom Line: Redevelopment and luxury projects are often seen at two different zones of real estate portfolio. However, some of the developers in Mumbai are redefining the rules of the game and Ravi Sinha finds there lies a symbiotic relationship between these two altogether contrast project portfolio.

Slum and Luxury, slum redevelopment in Mumbai, Luxury apartments on slum land, Changing face of slums, Housing for slum dwellers, India real estate news, Indian property market news, Track2Media Research, Track2RealtyWhen a few developers in Mumbai with deep roots in the slum redevelopment forayed into the luxury projects in the last few years, there had been stories galore in the media space and the realty community itself. Many questioned the reasons and the rationale of this sudden Bottoms Up approach, while others believed it is just a strategic shift to make moolah at the top of the realty pyramid. Some theories even suggested it is a brand makeover for a long term capital infusion, including the IPO in the years to come.

However, the fact remains that each company has its own reasons to foray into luxury and super luxury segment, with one or the other reasons mentioned above may or may not be the reasons behind their portfolio diversification. But what is worth understanding in this dynamics is the fact that redevelopment at the bottom of the pyramid always has a symbiotic relationship at the top of the realty pyramid in luxury and super luxury segment. After all, policy incentive is always there if the developer is smart enough to cater to the segment with well thought out strategy.

When one develops a slum, for instance, and even if 20 per cent of land is given for commercial use as incentive in the bargain, it is a deal for the developer. After all, in the space starved city like Mumbai even a small chunk of land in any of the prime location is a rare commodity. The question is if such a business dynamics is a feasible model, why did the developers shied away from making the best of it so far.

The answer lies in the infrastructure and better connectivity where the Worli Sea Link has made some difference and the Trans-Harbour Link, as and when it becomes a reality, is expected to be the game changer like never before. After all, developer needs separate entry roads for their luxury apartments. Failing this, roads linking with the slum rehabilitated apartments won’t fetch any dividend to the premium positioning of the project.

Pranay Vakil, Chairman of Praron Consultancy agrees that things are changing fast post the new DCR rules. According to him, arm twisting by a few, howsoever small group they may be has been the reason what deters the large developers and investment into redevelopment projects.

“Even if more than 90 per cent are willing for the redevelopment, a few vested interests can be game spoiler. And I feel it is here that the role of state machinery has to be pro-active and not populist. The decision making process can be democratic, but not the implementation. State must be a party to make sure the redevelopment plan is implemented in an authoritarian manner,” says Vakil.

Amit Nagpal, Director of Nagpal Developers says demand on prime land is more and hence it makes sense to get into such high end categories. He maintains many NRIs from Dubai and other parts of the world have approached them for prime locations of Mumbai that can offer new flats post redevelopment. Demand is more in the premium segment, depending on the locality.

“The government has to ensure that the developers get right opportunity based on their past projects and right redevelopment track record. The scope of redevelopment is so much in cities that even some of the bigger developers who had earlier avoided to get into this segment, are now focussing on redevelopment. Actually, everyone in Mumbai is looking for redevelopment options. Market has been stagnant so far due to policies coming in the way of redevelopment projects. There is always good demand and no stock available in prime localities,” says Nagpal.

Jaycee Homes is in Luxury segment housing with projects at Khar, Bandra Santacruz, Juhu and many other upmarket suburbs. But they are also into redevelopment and have a separate team looking after this division of our business.

Diipesh Bhagtani, Executive Director Jaycee Homes says redevelopment is another stream of construction and in no way inferior to developing any other building. According to him, maintaining your brand ethos if you are in luxury segment which is meant for the niche and communicating to the masses without diluting brand image is the biggest challenge

“If the final product is good, not only society members talk about it but also people in the vicinity. They tend to compare the old building with the new one and the good work is eminent. There is a lot of positive talking about this project. This makes a brand more visible. As we all know addressing to a few people is much easier then addressing to the masses which make the bottom of the pyramid. This is a very complex segment with various attitudes and temperament,” says Bhagtani.

Another developer which has made significant strides from redevelopment to super luxury segment is Omkar Realtors & Developers. Devang Varma, Director, Omkar Realtors & Developers believes that with more than 50 per cent of the city’s population residing in slums occupying a large share of the city’s space, slum redevelopment will continue to dominate the redevelopment share even as other forms of redevelopment including those of cessed and dilapidated buildings, cluster redevelopment, contravening structures (BMC), rehab of PAP and MHADA buildings are steadily gaining pace.

“Developers handling redevelopment projects are coming up with luxury residential offerings as the market holds good potential for this category and Mumbai has hardly any open land parcels. Also, the developers have invested substantial time and money in redevelopment projects whereby free sale portion is the only route to generate profits,” says Varma.

So, the taboo that earlier used to be due to work in the redevelopment has over a period of time turned the other way round. The developers are now finding it more symbiotic relation between the top and bottom of the pyramid, and that is fast evolving as a lucrative business model for them.

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