Tag Archives: Noida Real Estate

Why Noida commands lowest rental in India?

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News Point: Due to the absence of sound economy in the region, Noida property commands lowest rental yields among the major property markets of India. 

Noida, Noida Skyline, Noida Property market, Noida real estate, Rental value of Noida property, India real estate news, India property market, Track2Realty, Track2Media, Noida newsSome harsh realities of Noida property market that would scare any investor. It may nevertheless tempt the tenants due to affordability:

Noida commands the lowest rental value among the top 10 cities

In some of the locations the rental yields are even less than 1 per cent

The tenants are renegotiating with landlords to reduce the rent or include maintenance in the rent

Investors in Noida are struggling as the tenants are commanding the rent which has taken 5-15% hit in recent times 

Rakesh Sharma, a retired doctor spent his lifetime saving to buy an apartment on the Noida-Greater Noida Expressway. With already having a house in Delhi he had it in mind that the rental income of the property would be enough for him to lead a comfortable life post his retirement.

Today, he repents his decision after having spent INR 1 crore for the said property. With only INR 13,500 as the rental return, including the INR 3,500 as maintenance outgo, he feels he has made the biggest investment blunder of his life. This income, after paying the EMI and inflation adjustment, is making this investment more of a liability than asset.

Welcome to Noida reality! Contrary to the dynamics of property market where lesser transactions lead to skyrocketing of rental values, in Noida this conventional wisdom of market does not hold true. Noida, as a matter of fact, is a classic case in contrast where the supply is huge, transactions are less and the rental values are the lowest. Reason: imbalance of demand & supply in the same catchment area.

Why low rental yields? 

Absence of economic infrastructure & job market

No takers for Grade A office space due to absence of international airport

Perceived to be cheapest market of Delhi-NCR

Over-supply in select pockets without proper development of catchment area

Demand-supply mismatch leading to tenants controlling price point 

What actually makes Noida one of the worst markets for the rental yields? There are many contributing factors but the single biggest stumbling block is the absence of economic activity in the district that makes it a last choice of those tenants who can not afford in any other part of Delhi-NCR.

Ashok Sinha, a local property consultant believes the low rental yield of Noida is a reality and will continue to be so in the foreseeable future. He feels unless there are quality Grade A offices and quality occupiers in the market that could add to jobs, the residential segment will not be witness to the high priced rental transactions.

“I recently negotiated for an office space with much difficulty. On an extended lease of nine years the occupier accepted to pay only the maintenance part for the first three years, followed by 50 per cent rent in the next three years and full rental only for the last three years. My point is that unless the quality employers will not come to this market the affordability and its offshoot with low rental yield will continue to be a reality,” says Sinha.

Developers, on their part, are mostly in denial about their own miscalculation to add to the demand & supply gap. After all, premium housing and bigger housing units in a market that is the last choice of the buyers defies the conventional wisdom of economics.

Nikhil Hawelia, Managing Director of Hawelia Group candidly points out that the developers themselves have to introspect why the rental values have gone down over the years. According to him, the more one goes up the value chain, either with luxury elements or with size, the least are the chances of commanding decent rental yields.

“I do not think affordable houses are not commanding the rental yields of around 2 per cent, like other parts of the country. The problem is with the premium housing and projects with bigger units where the supply far exceeds the demand. The owners have no option but to compromise with even 1 per cent rental yields or lesser because there are hardly any takers,” says Hawelia.

Analysts believe in the absence of an international airport the multinational companies are reluctant to set-up base in this part of the Delhi-NCR and hence Noida continues to be affordable and low-cost market. This is reflected in both the property sales velocity as well as in its rental yields. All that the property owners are left with in Noida is a wish that one day the property rally will compensate them for their stuck up investment.

By: Ravi Sinha

False promises land Amrapali Group in serious trouble

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News Point: Delayed possession and false promises land Amrapali Group in serious trouble, as homebuyers cry foul, celebrities backing off and political connections deserting.

Anil Sharma, Amrapali Group, India Real Estate News, Real Estate & Crime, Indian realty news, India property market, Noida real estate, Track2Media Research, Track2RealtyAfter taking the homebuyers for a ride long enough, the Amrapali Group seems to have ran out of luck with the homebuyers taking to social media to mobilise support, the brand ambassador Mahender Singh Dhoni exiting as face saver and the political support to the builder deserting.

Amrapali Group, after much-publicised “Mission Possession” has only been diverting the attention of the buyers till the residents of Amrapali’s Saphhire project in Noida lost their patience and went viral on Twitter. They also tagged the brand ambassador Mahender Singh Dhoni in their tweets asking the cricketer to dis-associate himself from the builder.

Residents are complaining about the pending civil and electrical works in the project. The company said it would complete the same in next three months.

Amrapali Group CMD Dr Anil Sharma said, “Sometimes there are so many unforeseen reasons. There are so many force majeure, which are beyond the control of a developer. So, during those periods construction is stopped for two years, three years, four years, five years. Those period can’t be contracted. There are two losses, one is time loss, another is finance loss. We are not burdening that finance loss to our esteemed customers, but time loss we can’t make up. Ultimately, time loss has to be extended.”

As the homebuyers were welcoming the Dhoni’s rebuttal to Amrapali, another cricketer Harbhajan Singh tweeted: “Well done @msdhoni for dropping #Amarpali builders’ brand ambassadorship..they didn’t gave us VILLAS they announce after 2011 worldcup win”.

“At least they should give them houses who paid..may be announcing a villa for us .. was a publicity stunt,” he said in another tweet.

Reacting to Harbhajan’s complaints on social media, Amrapali CMD issued a press statement, “We offered these villas to World Cup winning team as to honour their efforts, for that we did not charge anything. Amrapali Group never denied to handover those villas, nor now.”

“In this duration, cricketers or their representatives did not ask about the status of their villas and also there were some relevant process and formalities need to be done from their end.

“Whenever they will ask us, we will share the required details of their villas with them. I would also like to clarify that the project is in final stage where villas were promised,” Sharma said.

However, it is not just a case of one or two projects of Amrapali Group getting delayed. The homebuyers allege most of their projects are delayed and they are just unresponsive to the buyers.

Over 4,000 buyers of the Group’s Golf Homes project are also the sufferers after the developer delayed the possession by about 15 months and allegedly stalling the construction work.

As if the ire of homebuyers and the celebrity cricketers was not enough, sensing the public mood even the political patronage of Amrapali Group has deserted. Anil Sharma, who contested Lok Sabha Elections on JD(U) ticket in 2014 found his party distancing itself from Dr. Sharma. The party’s General Secretary, K C Tyagi, said, “Anil Sharma for the last Lok Sabha Elections was on the ticket of JD(U), but after 15 days he was an independent candidate.”

Tyagi added, “As a member of the Real Estate Committee, I am on record to say that they (builders) must be prosecuted. I am with the buyers of Amrapali Golf Villas and stern action must be taken against him. Homebuyers must go to the court and they must present their case to the Parliamentarians. From the 25th, Parliament session will start and I am hopeful that entire Parliament, after passing the Real Estate Bill, will stand by the consumers.”

Once a powerful man as an influential builder with connections in cricket to film and politics, it is not just fall from grace for Anil Sharma, but could be termed as self-inflicted disaster. It is a learning curve for the builders who think they are too powerful to take the homebuyers for a ride.

By: Ravi Sinha

ATS Infrastructure establishes ‘Professional Chair’ in ‘Infrastructure Management’ at IIM-A

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ATS Infrastructure, Geetamber Anand, Noida real estate, IIM, Indian Institute of Management, Indian property market, India real estate news, Indian realty news, Track2Media Research Pvt Ltd, Track2RealtyTrack2Realty: ATS Infrastructure has partnered and established a ’Professional Chair’ with the prestigious business school Indian Institute of Management, Ahmedabad on ’Infrastructure Management’. A professional chair is established to enable higher levels of learning and research activities in the focus arena.

“Good infrastructure acts as a catalyst in a developing economy. Implementing latest technology in this field as available within and outside India has become imperative now.  ATS Infrastructure Ltd, which is in the field of construction and housing in Northern India is pleased to establish ‘ATS Infrastructure Chair’ at Indian Institute Management, Ahmedabad for the purpose of research and learning in the area of infrastructure & housing management, given the Prime Minister’s plan of providing housing for All by 2022”, said Getamber Anand, Chairman & Managing Director, ATS Group of Companies.

Ashish Nanda, Director, IIM-A said “I am thankful to CRISIL and ATS Infrastructure for establishing chairs in Financial Markets and Infrastructure respectively. SAP’s desire to foster the spirit of entrepreneurship is in line with IIMA’s long-term goals, and we are delighted to partner with them. The contribution of these companies will help the institute to strengthen its impact and maintain its quality. As we continue to connect with practice, I am confident the institute will benefit from access to current management practices and challenges; and also support for high-quality research”.

Amrapali Group CMD Anil Kumar Sharma booked in murder case

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Anil Sharma, Amrapali Group, India Real Estate News, Real Estate & Crime, Indian realty news, India property market, Noida real estate, Track2Media Research, Track2RealtyTrack2Realty-Agencies: An FIR has been lodged against seven persons including real estate baron, Amrapali Group’s Anil Kumar Sharma in Bihar’s Lakhisarai district in connection with the murder of a former secretary of an educational trust who was shot dead.

Sharad Chandra Kumar, former Secretary of Balika Vidyapeeth Trust, was shot dead by two unidentified persons on Saturday, August 2, after which an FIR was filed by his wife Usha Sharma.

“We have arrested one of the seven accused persons and raids are being carried out in Lakhisarai and Patna districts to nab other accused persons named in the said murder case,” Superintendent of Police of Lakhisarai Ashok Kumar said from Lakhisarai.

“We have simultaneously launched a massive manhunt for arrest of two unidentified shooters who committed the crime in order to find out motive behind the murder case,” the SP said.

Kumar said that a seven-member investigation team has been constituted with the Town Police Station’s Officer In-Charge (OIC) Manoj Kumar as the Investigating Officer (IO) to probe the case.

Refusing to share specific lead in the case, he said that the police will be able to move in the right direction only after the two shooters are arrested.

Chandra had served as the secretary of Balika Vidyapeeth Trust for 20 years before being succeeded in that post by Anil Sharma five years ago.

Meanwhile, Anil Sharma the CMD of Amrapali Group has rubbished the murder slur on him saying he has been ‘falsely framed’ in the murder case and the allegations of conspiracy against him were ‘completely false and ill-motivated.’

“I have resigned from the trusteeship of the Balika Vidhya Peeth Trust and also from its official position on March 9 last itself and since thereafter I in no manner related to the affairs of Balika Vidyapeeth,” Sharma has said in a statement.

“I have been falsely framed and the allegations of conspiracy against me in the murder case of Sharad Chandra Kumar are completely false and ill-motivated,” he said.

NOIDA Extension in trouble, farmers win in High Court

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Allahabad High Court, Greater Noida, Noida Extension, Amrapali, Supertech, Mahagun, Delhi NCR real estate, Noida 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 PropertyThe Allahabad High Court on Thursday quashed the acquisition of land by the Greater Noida authority in Sahberi village in Gautam Budh Nagar where leading builders Amrapali, Supertech and Mahagun have launched their residential schemes under the name of Noida Extension.

In its order, the bench comprising Justice Sunil Ambwani and Justice K.N. Pandey, denotified the entire land of Sahberi village for not giving the farmers an opportunity to file their protest under section 5 of the Land Acquisition Act (LA Act).

The Greater Noida Authority had on June 10, 2009 notified the village land of Sahberi and later took physical possession of it by entering it in revenue records. It deposited the compensation in the district treasury to be given to farmers whose land was acquired. After formalizing the process of the Land Acquisition Act, the land was allotted to the real estate developers.

Farmer leader Satya Pal Chaudhary and 20 affected farmers challenged the acquisition process and filed writ petitions before the Allahabad High Court against the ‘arbitrary acquisition’ of land by not giving farmers an opportunity to file their objections. The high court clubbed the 21 cases together and initiated legal proceedings.

After hearing arguments from both sides, the bench set aside the process of acquisition and declared the entire land of Sahberi village as denotified. In their judgment, the court observed that the entire process of acquiring the land was illegal.