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Options for Jaypee homebuyers after insolvency

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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

Developers’ strategic shift to align with RERA

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News Point: From cash management to planning & execution, more professional outlook and Project Management System (PMS), the builders have suddenly woken up to the RERA realities to escape from getting penalized.

RERA, Real Estate Regulatory Authority, RERA realities, RERA for homebuyers, RERA helping homebuyers, RERA changing Indian real estate, RERA compliance for real estate, India real estate news, Real estate news India, Indian property market, Track2Realty, Track2Media ResearchA developer in Pune recently advertised for a Project Management Team for one of the upcoming projects. On a cursory look, it could have gone unnoticed like many other advertisements of real estate developers.

However, what could not be overlooked is the fact that Project Management System (PMS) that had till now been one of the most neglected areas for most of the developers has suddenly been in demand. Welcome to RERA realities where focus has shifted to compliances!

It seems RERA has suddenly made the PMS as one of the most sought after areas of expertise. The developers can no longer afford to delay their projects due to mismanagement by the execution team. In most of the cases the developer himself and/or his top management was thus far taking care of the execution with no seamless process of execution handed over to the experts.

Today, even those developers who are not hiring an expert PMS consultants are at least inculcating the PMS software into their processes. The idea is to manage estimation and planning, scheduling, cost control and budget management, resource allocation, collaboration software, communication, decision making, quality management, documentation and administration systems more professionally managed.

RERA alignment strategy 

PMS being adopted by the developers

Companies going through restructuring to align with RERA realities

Cash management, Planning & execution converted to process driven than ad hoc 

Cautious approach in promising to the buyers 

PMS is just one of the changes that the developers have introduced in order to make sure they fall in line to align with the RERA realities. After all, the developers are conscious of the fact that they have to align their business practices with the stipulations of the RERA Act.

Of course, the developers are facing some initial challenges too. But they are also realizing that they need to adapt sooner than later to equip themselves and their teams about various provisions and its impact over the fortunes of the business. There is hence increasing focus to restructure the organization and streamline the operating processes to ensure compliance.

“The buyers have everything to gain in the process as they can look forward to live in a RERA compliant regime that ensures a far more disciplined regime of developers. A homebuyer can thus be rest assured of the developer keeping his delivery promises. After all, one of the key aspects of the project cycle that the RERA regime focuses on is delivery,” says Arvind Nandan, a leading property consultant.

The developers are also re-working out their marketing offerings to make sure they comply with the committed timelines of project delivery. The usual over-promising features have suddenly gone missing with the realistic promises also being in undertone than over-asserted. The developers have suddenly learnt the business wisdom of under promise and over delivery to not get under the regulator’s stick.

The new regime has made them realize the importance of documentation as they have to register their projects with all the details by phases, submit the approved plans and meet the completion timeline of each phase to get payments released from the project account and avoid penalties. Any changes to the structural plan now require consent of two-thirds of buyers.

“Let us face the fact that we have no other choice left but to comply with the highest standards of construction because now we are accountable for structural defects up to a period of five years from the date of possession. I feel this one area will ensure that the developers’ buyer interface will improve and conflict management or I should say crisis management will be less,” admits Nikhil Hawelia, Managing Director of Hawelia Group.

Another significant change in the operating style of the developers has been with respect to the cash flow management as the Act limits any collections in advance from buyers (on registered projects), and restricts withdrawals from the project account to the accomplishment of delivery milestones.

“What it ensures for the buyers is the fact that now onwards the project delays would be only due to genuine issues. What has been happening till now is that the developers never focused on building the enhanced delivery capabilities. The project delays was well accepted as part of business cycle,” says Pawan Katara, a property agent in Pune.

Now the developers are suddenly focusing on the quality of the management processes. The developers in their own cost & benefit analysis have evaluated that meeting the stipulations of the Act would require a professional project management where a seamless integration of various departments and teams will offer more benefits than what it will cost to them.

To ensure compliances and meeting delivery timelines the developers are reevaluating their business processes to make holistic changes. PMS hence is being introduced to make sure a system of optimum project management is put in place that would outline the scope of the project, determine the timeline for delivery with the associated cost for effective cash flow management, ensure optimal management of vendors and quality control in the procurement and construction process.

In a nutshell, the developers are now leaving no stone unturned to adopt more structured approach of development. Right from the cash flow management to project planning and scheduling to the final execution, the changes are being made to align with the RERA realities.

Of course, it will take time before these changes are noticed in the collective consciousness of the buyers in the market. However, the strategy to align with RERA compliances definitely indicates the willingness of the developers to adopt the compliances as part of the professional management practices.

Ready to move property a common wish across cities

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Bottom Line: Post GST the homebuyers across the country prefer a ready to move property.

Ready to Move, House Keys, India real estate news, Indian realty news, Property new, Home, Policy Advocacy, Activism, Mall, Retail, Office space, SEZ, IT/ITeS, Residential, Commercial, Hospitality, Project, Location, Regulation, FDI, Taxation, Investment, Banking, Property Management, Ravi Sinha, Track2Media, Track2RealtyBe it Mumbai or Pune in the Western part of India or Hyderabad, Bangalore and Chennai in the South, the homebuyers seem to be convinced with the reality of GST and its implications with various stages of construction. It is hence not surprising that most of the homebuyers across the cities today wish to invest in ready to move apartments to save from the hassles of paying the GST.

Reasons to buy ready to move apartment

Saving from GST with ready to move apartments

Saving the dual burden of EMI and rent

Saving from the execution risk borne out of new compliances

Saving from the unknown future charges

Saving from future builder-buyer conflict 

There is a general feeling that a ready to move apartment is the answer to save from the GST and other implications emerging out of RERA compliances.

“My reasons of buying a ready to move apartment is pretty obvious – it is freedom from the GST burden. Nowadays most of the homebuyers avoid buying a pre-launch or newly launched apartment. So, instead of buying a near-completion apartment, it is better to buy a ready to move apartment,” says Kalpana Chitre in Pune.

Urvashi Dua in Mumbai is equally clear that it makes more sense to buy a ready to move apartment. Doesn’t it mean paying a bit of premium over the ready to move apartment, if not GST? She believes the developers will no doubt pass on the input cost burden to the buyers but it still makes more sense to buy a ready apartment.

“Even if I pay a premium of say 10-15% for the ready to move apartment, I am still not under the burden of paying both the rent as well as the EMI. In a way, I will end up paying the same but without carrying the simultaneous dual burden,” says Urvashi.

Abhinav Sharma in Bangalore has an altogether different reason to go for a ready to move apartment. He believes now with the GST and RERA implementation the developers themselves admit it is a phase of teething trouble. So, in a way it is safer to buy a ready apartment.

“I will pay for what I like with no execution risk involved. A project after OC (Occupation Certificate) is a safer bet now since there are so many new compliances to follow. Even the developers are not sure that despite of the best intentions whether or not they will get the OC and that too on time,” says Abhinav.

Yaduraj Pai in Chennai is convinced that the RERA compliances and the GST will in any case escalate the property prices marginally. According to him, whether one buys it under construction or the ready apartments the cost implications would be more or less the same. But buying a ready apartment has added advantage of knowing the all inclusive price rather than paying for many other charges like parking, club etc that would be unknown at the initial stages of construction.

“In the initial stages of construction even the developers can not gauge some of the costs, like the monthly maintenance charges. It is only when the project reaches the level of completion and amenities are ready that the maintenance charges are calculated. I wish to buy a house with all the knowledge beforehand and hence ready to move suits me,” says Pai.

Girigaja Reddy in Hyderabad is also clear that there are distinct advantages with the ready to move property. He feels a common end user buys a house where one would like to live with the peace of mind. Any mismatch in promises could lead to a builder-buyer conflict for endless time and hence he would prefer a ready to move apartment.

“There could be slight deviation with the project, compared to what was promised at the time of launch, despite of the best of intentions of the builder. Now if those deviations were something that is one of the reasons to opt for that project, I would end up fighting with the builder. So, there is no point in going for that. A ready apartment is there to buy what you see and select,” says Reddy.

In a nutshell, the buyers in all the major cities might be having different reasons to make their property choices but the wish is the common – ready to move. The developers are hence today evaluating the build & sell model. This will save them from some of the harsh provisions of the RERA compliances. Also, they will know the exact tax liability and interest liability in quoting the final price of the ready apartment.

Is build & sell model the next big idea for the Indian real estate that could bring the fence sitter buyers back to the market? Well, only the time will tell but going by the homebuyers’ wish list it appears to be closer to the reality.

By: Ravi Sinha

 

Ahmedabad property magnet to neighbouring developers

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Bottom Line: Developers from Mumbai, Pune and many other parts of the country are finding Ahmedabad property market to be a happy hunting ground.

Ahmedabad, Gujarat Real Estate, Gujarat Jantri,india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India PropertyReal estate is predominantly a micro market driven business and even the largest of the developers are often grounded in their home turf. Most of the realty brands have evolved in their own given geographical locations first before they branched out to other locations for expansion. Such expansions have also been more of metro centric.

There are very few case studies where the developers have flocked out to cities on sheer promise without registering their presence in the four metro cities. However, such migration to magnet territory is today quite visible in Gujarat where the developers from other states are increasingly flocking, most notably in the city of Ahmedabad.

Real estate developers from Mumbai and even Delhi-NCR are increasingly looking for greener pastures in and around the city of Ahmedabad. Whether it is a realty giant like Hiranandani or Ajmera or an emerging player like Grih Pravesh Buildteck, they are all gaining ground in Ahmedabad property market today. While expat influence is a known reality of Indian property market with expats emerging as a key home buyer, Ahmedabad is today witness to another set of expat influence – that of developers.

The developers have their own reasons as well. Some find the land prices attractive at this level, while the others find the approval mechanism conducive; Some are driven by the Gujarat growth story, others are goaded by the political reasons. But almost all these developers whose roads lead to Ahmedabad maintain that the overall eco system in the State is much better than other parts of the country.

Niranjan Hiranandani, Chairman, Hiranandani Group says the developers are bullish about Gujarat property market with arrays of infrastructural projects in the pipeline. Projects like Delhi Mumbai Industrial corridor (DMIC), bullet trains, metro rails, setting up of manufacturing SEZs, Dholera SIR, GIFT City, Port development, Smart Cities like Surat will boom the growth prospects in State of Gujarat. All these opportunity makes Gujarat State safest and bullish market for investors.

“State Government of Gujarat has ensured regular supply of basic amenities required by industries to set up their plants and other establishments.  State Government furnishes with continual power & water supply, better connecting roads, great infrastructure, set up strong telecom & fiber optical networks magnetizes corporate to draw their projects in the region to augment the project viability,” says Hiranandani.

Extremely bullish on his choice of future location, Abhay Kumar, CMD of Grih Pravesh Buildteck believes Dholera will lead the pack and the corridor from Dholera to Ahmedabad and Dholera to Bhavnagar area would see the maximum investment. These corridors look best for realty development because there is going to be most infrastructure support by government as it has got good connectivity and trade potential.

“Numerous developers are showing interest in Gujarat basically due to low cost availability of land and ease of doing business. By nature Gujaratis are law abiding and peace loving people and they have an attitude of non interference which makes this State a unique proposition for investment. Over and above Prime minister’s interest to develop this State as the best example for attracting investment; this has generated lots of interest among developers to move to Gujarat for launching their projects,” says Abhay.

Neeraj Tomar, Head – Ahmedabad, JLL India agrees that a large numbers of developers are looking to invest in the Gujarat market and are eyeing categories like industrial parks and commercial office projects. This market is still not perceived as expensive. The government is also acting as a catalyst and is providing all support in terms of developing the requisite infrastructure.

“The slowdown era vis-à-vis the Indian economy is diminishing slowly and the winds of change are in the air. With these changed sentiments all across the country, Gujarat will also have to carve out for its share of investments over the long term. The current scenario for Gujarat indicates that it has an advantage, but the challenge will be sustaining it over an extended period of time. Investors are always on the lookout for good investments, irrespective of physical boundaries. The principal fundamentals for attracting investments are fair valuations, expected returns on investments and risk management. Given the current scenario, Gujarat is figuring well on all these parameters,” says Tomar.

Gujarat can become an example for other States on how government can create room for investment. Analysts point out that to attract investment there is requirement of CCL- Corruption control, Clearances by government and Law & order and Gujarat is proving to be leading the pack in these benefits.

The developers who have forayed into the City are conscious of the fact that Ahmedabad’s real estate market is booming because of the huge growth of its industrial sector and overall high rate of development, fuelling both the commercial and residential properties. This commercial capital of Gujarat is rich in textile, pharmaceutical and chemical industries. Apart from being a well-established education centre Ahmedabad has also established itself as a major IT/ITeS and retail destination. The combination of the favourable factors naturally makes it a highly desirable destination.

Flats, apartments, serviced apartments, bungalows, penthouses and township properties are cropping up all over and the residential development in Ahmedabad is no more only in the form of individual bungalows. Though even today new bungalow schemes can be found on the outskirts of Ahmedabad city, especially along the Sardar Patel Ring Road coming under zones R2 and R3. However, the scarcity of land and expensive real estate prices in the city have brought in the trend of apartment houses in form of high rise towers in the city.

The prime residential areas that many of the expat developers have spotted in Ahmedabad are Shahibaug (in the northern part of the city), Satellite, Bodakdev, Vastrapur, Prahladnagar, Thaltej (in the western parts of the city), Maninagar and areas around Kankaria and Chandola Lake in the southern eastern parts of the city. The growth corridors for real estate development are the SG Road (Sarkhej-Gandhinagar Road), Sardar Patel Ring Road, Maninagar and on the north side of the Inner 132 ft Ring Road in areas like Nirnaynagar and Ranip.

Though locations in and around Ahmedabad are top picks for the expat developers in the State but apart from Ahmedabad, Surat and Vadodara also rank high in the State’s real estate sweepstakes. As Gujarat’s second largest city, Surat is all set to become an international diamond trading hub. It is located on the Golden Quadrilateral Highway and is well connected to Mumbai and Delhi. These are major magnets for the developers who are flocking to the State. Vesu, Piplod, Pal, Adajan and Varachha Road are the traditional residential destinations, and suburban locations like Bamroli, Khajod, Palsana and Puna Kumbharia Road are coming up.

Vadodara is Gujarat’s third largest city and is another preferred emerging investment destination for the developers trying to make inroads into the State. The prime residential areas are Alkapuri, Race Course Road, Old Padra Road, Jetalpur, Akota and Fatehganj.

Gujarat is no doubt a land of opportunities for these developers as it is strategically located on the west coast of India. Gujarat is well connected to the major cities of the world by air and sea routes. Gujarat, with a coastline of 1600 km is well connected to all the major port-based trade routes, such as USA, Canada, Europe, Australia, China, Japan, Korea Gulf & African countries and other major trade cities of the world by air route.

The State acts as a Gateway to the rich northern and central hinterland of India; connecting them via road, rail and air thereby providing immense trading opportunities.

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

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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

H1 2017 witnesses a 17% decline in the number of new launches: Colliers Research

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News Point: Affordable housing to grasp major share in new launches in H2 2017: Colliers Research 

india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India PropertyAlthough the market had returned to normal after the demonetisation drive in November 2016, it was further impacted by the implementation of the Real Estate (Regulation and Development) Act (RERA) and then the nationwide execution of the Goods & Services Tax (GST). 

As per Colliers Research, RERA and GST compliance will remain a challenge for several developers for at least the next six months. We expect a decline in the number of launches in H2 2017. However, the sales are likely to pick up during the festive season due to higher optimism among buyers after RERA.

This will further address the issue of unsold inventory in the market. As per Colliers, buyers who are looking to invest in the next three to four months should opt for RERA-registered and ready-for- possession projects. 

The residential market witnessed a 17% decline in the number of new launches since H2 2016 with 40,600 new units introduced in the first half of 2017 in prime cities. Mumbai and Bengaluru were at the forefront with 35% and 33% of total launches respectively, while Chennai, Pune and NCR accounted for the remaining 13%, 10% and 9% share.

The luxury market has been affected the most, and the number of launches reduced considerably in this segment. Colliers forecasts similar sentiments to prevail in the next six months, with affordable housing grasping a major share in new launches.

“Supply of new projects will remain restricted in the market in short to medium term but this will help to mitigate the oversupply situation in most markets. After the recent bank rate cut by RBI in July 2017, we do not expect any further rate cut in H2 2017. Also, the prices have been stabilised in most markets, and any further reduction is unlikely. Thus, buyers should expedite their buying decisions and take advantage of lower interest rate regime. The first-time homebuyers can also get benefit from the incentives under Pradhan Mantri Awas Yojna (PMAY)”, said Surabhi Arora, Senior Associate Director, Research, Colliers International India.

Mumbai

Against the backdrop of the demonetisation drive and the announcement of RERA implementation, market sentiment was suppressed and impacted the new project launches significantly during H2 2016. For Mumbai, H1 2017 was marked by the finalisation of the RERA’s norms and the website launch for registration of projects. Although developers were expecting it, the transition towards a RERA-compliant regime has been difficult for many. 

In H1 2017, we noticed a slight improvement in supply to 14,000 new launches (including 3,800 pre-launches) in the Mumbai Metropolitan Region (MMR) and its suburbs representing a 16% increase over H2 2016.

About 58% of the new launches were in the mid-end segment, whereas luxury and high end properties represented only 17% and 25% share in the total new launches.

Bengaluru

Strong office sector performance indicates a healthy demand scenario for the residential sector in medium to long term. Colliers forecasts the mid-range segment would continue to drive sales as the festive season approaches in September and October and developers offer various promotions and attractive payment plans amidst a soft home loan interest rates environment.

With about 13,400 of new unit launches in H1 2017 the city ranks second in total residential launches in India, next to Mumbai, though the residential market in Bengaluru faced a notable drop of 23% compared to H1 2016. Localities such as Yelahanka, Devanahalli, Ranchenahalli and Kogilu recorded the highest number of launches in the city. Most of the new launches were in the mid-segment category catering to the higher demand from information technology employees of the city.

Private equity investment was sustained with notable investments by KKR India Asset Finance Management, Edelweiss Group and the HDFC Realty Fund.

Chennai

After the instability in the market at the beginning of 2017, the residential sector is now recuperating. With the notification of Tamil Nadu RERA, Colliers would advise developers to obtain all necessary approvals on time, pay attention to project planning, use modern construction technologies to speed up the development process and manage project funds efficiently to avoid delays and align for a smoothertransition towards RERA compliance.

Chennai’s residential market witnessed the launch of nearly 5,300 residential units, representing a rise of 19% from H2 2016. Of the total launches, 33% were concentrated in peripheral locations of the city’s south quadrant along Old Mahabalipuram Road (OMR), Grand Southern Trunk (GST) and East Coast Road (ECR). Reputed developers in the mid-market category accounted for about 70% of the total launches.

Pune

In H1 2017, the Pune market witnessed about 4,034 new residential unit launches mostly in the mid-range segment. Although the government has granted infrastructure status and incentives to affordable housing, we have not observed much expansion in this sector from Pune developers. Developers are still exploring the feasibility of such projects in Pune. The average capital value of mid-range segment projects is already in an affordable range of INR4,000 – 5,000 per sq ft (USD 62 -77 per sq ft).

NCR-  3900 units were launched in NCR in H1 2017.

Gurgaon

In line with an earlier forecast by Colliers, the new launches in Gurgaon fell to an all-time low of only 3000 new units in H1 2017. About 90% of the total unit launches were in the affordable category under the government initiative of Pradhan Mantri Awas Yojna which was specifically designed for the affordable housing segment. Majority of the units launched in H1 2017 were in the price band of INR2-2.5 million (USD31,000-38,800) that caters to the affordable segment in Gurgaon.

As per Colliers, registration under RERA should start in Q3 2017 and it is likely to take at least six months for developers to become accustomed to the new regulation. Thus, Colliers expects new launches to remain subdued in H2 2017, but sales are expected to revive during the festive season primarily in ready-to-move-in projects as most developers would provide discounts and attractive payment plan options. 

Noida 

The completion of projects and the end-user interest in the ready to move in projects kept the market alive in H1 2017. Most of this demand was concentrated in newly developing sectors such as 72 to 78, sector 100, 107, 137 and Greater Noida West. Developers refrained from launching new projects in H1 2017 and focused on completion of existing projects. About 3,000 units got completion certificates in the last six months, while new launches hit bottom at under 1,000.

Cushman & Wakefield appoints Swapan Dutta as Managing Director Kolkata

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News Point: Cushman & Wakefield has appointed Swapan Dutta as the Managing Director Kolkata operations.

Swapan Dutta, Colliers International India, Cushman & Wakefield, Real estate professionals in India, India real estate news, Indian property market, Real estate news India, Track2Realty, Track2Media Research Swapan will be responsible for developing new avenues of growth in Eastern Region and will work closely with clients to provide innovative and value driven transaction solutions that are in line with their strategic goals. Swapan will be reporting to Anshul Jain, Managing Director, India, Cushman & Wakefield.

Kolkata as a market is at an advantageous position for future growth. With a good human resource base coupled with government announcements like the creation of the Financial Hub in Rajarhat and proposal for setting up of Industrial Parks in PPP mode, improving infrastructure and a legacy of being an economic centre, various industries have begun to show a keen interest in the market.

With its depth of services to clients across the region including the states of Odisha, Assam and Bihar and also overseas destination of Bangladesh, Cushman & Wakefield is well poised to provide real estate solutions to companies actively looking at expanding their operations in these regions.

“Having a presence in the Eastern region for over a decade, we at Cushman & Wakefield completely understand the huge potential of the market and is committed to investing herein. Swapan’s industry and regional knowledge would help us in identifying and developing new streams for long term revenue growth and maintaining our relationships with clients, thereby strengthening our operations and services in Eastern region. Anshul Jain, Managing Director, India, Cushman & Wakefield.

“Cushman & Wakefield is a reputed brand known for putting the clients’ interest as foremost priority. I look forward to working with a group of very talented and dedicated professionals to further fuel the growth of Kolkata business,” says Swapan Dutta, Managing Director, Kolkata.

Swapan joins Cushman & Wakefield with over 23 years of experience in business planning, business development, project management, sales & marketing across various industry segments. In his earlier roles he has conceptualized, formulated and supervised complete profit center operations to achieve business goals, operating profits and cost efficiencies.. Prior to joining Cushman & Wakefield, Swapan was the Director, East with Colliers International.

Sanjay Chatrath joins Colliers International as the Executive Director, NCR operations

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News Point: Colliers International India has appointed Sanjay Chatrath as the Executive Director – NCR. 

Sanjay Chatrath, Cushman & Wakefield, Colliers International India, India real estate news, Real estate news India, Indian property market, Professionals in Indian real estate, Track2Media Research, Track2RealtyAn industry veteran, Sanjay has over 16 years of real estate experience and joins Colliers International from Cushman & Wakefield (C&W), where he held diverse leadership positions providing strong contribution in driving strategic growth for the firm.

With over a decade in C&W, Sanjay has led numerous large transactions and has serviced clients across FMCG, BFSI, Government Organizations, Consulting Firms, IT/ITES, Telecom and Power/Energy sectors.

“Colliers International has built a robust delivery platform in India over the past decade. Simultaneously, we have been adding capability to our existing talent pool to leverage this platform and maximize output. This accelerated increase in capacity requires focused local leadership in all markets. Sanjay’s addition to our team provides exactly this leadership to our NCR operations. He not only brings with him deep & rich transactions experience, but also capability to provide direction to our occupier services, as a whole. I am very happy to have Sanjay on the team. These are very exciting times to be working at Colliers International”, said Saacketh Chawla, Deputy Managing Director, Colliers International India.

Sanjay Chatrath added, “I am thrilled to be part of the Colliers International team. My entire career has been spent in the real estate industry and I look forward to continuing that tradition by providing “best in class” real estate solutions to Colliers’ current and future clients. In my current role, I will be directing and overseeing the overall operations of Colliers International in North, with emphasis on providing superior services to clients and driving growth in North India”.

Assetz property joins LOGOS Group India expansion

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News Point: LOGOS Group has expanded its operations to India through a partnership with the India-based real estate developer Assetz Property Group. The partnership has established a new standalone platform named “LOGOS India”.

Logos India, Assetz Property Group, India real estate news, Real estate news India, Indian property market, MNCs in Indian real estate, JVs in Indian real estate, Indian real estate joint ventures, Foreign funds in Indian real estate, Track2Media Research, Track2RealtyLOGOS is a vertically integrated logistics real estate specialist, with operations in Australia, China, South East Asia and now India. The partnership will combine the institutional management and development expertise of LOGOS with the local development expertise of Assetz to create a leading developer and manager of logistics warehouses and light industrial real estate in India.

LOGOS India is headquartered in Mumbai and is led by Chief Executive Officer, Mehul Shah, a supply chain and logistics specialist with over two decades of experience. The LOGOS India team has specialists dedicated to investment, development, and asset management, and will initially focus on the key logistics hubs of Mumbai, Pune, Chennai, NCR, Bangalore, Hyderabad and Ahmedabad.

Commenting on the partnership, Trent Iliffe, Joint Managing Director LOGOS said, “LOGOS is pleased to announce this key strategic move to expand our operations into India. We are seeing extensive demand from our existing and new customers for institutional grade logistics facilities in the region. Our expansion into India continues to show LOGOS’ commitment to establishing itself in growth markets alongside our important customer relationships.”

John Marsh, Joint Managing Director LOGOS said, “LOGOS has significant experience delivering institutional quality logistics assets in the Asia-Pacific region. We are excited to bring that experience to India through LOGOS India and look forward to working with an established Indian operator of the quality of Assetz during what is an exciting stage in LOGOS’ growth.”

Ben Salmon, Co-founder and CEO of Assetz Property Group, said, “Assetz has a long history of partnering to enhance the growth of our business. I am confident that this association with LOGOS will deliver a market leading warehousing and logistics business in India. This is the coming together of two companies with complementary values. We look forward to lending our local development expertise to LOGOS India.”

LOGOS India is working on closing its first Indian logistics venture with an expected US$400 million of equity commitments. This venture is targeting the existing institutional capital partner relationships of LOGOS and will invest in the development of high quality, modern logistics assets across LOGOS India’s initial target markets.

Together with management, Ivanhoé Cambridge and Macquarie Corporate Holdings are shareholders in LOGOS. Macquarie Capital acted as financial adviser to LOGOS on the formation of LOGOS India.

An open letter to MLA Pankaj Singh on Noida dump yard controversy

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Bottom Line: While the interest and intervention of Noida MLA Pankaj Singh against garbage dump yard in Sector 137 is welcome move, it is time to apprise him that vested interests with political motive & media limelight in mind are trying best to hijack the cause and sabotage it.

Pankaj Singh Noida MLA, Pankaj Singh visits Noida Sector 137, Pankaj Singh on Noida Sector 137 dump yard,  Dump yard in Noida Sector 137, Noida Authority dumping garbage in Sector 137, India real estate news, Indian property market, Real estate news India, Track2Media Research, Track2RealtyDear Mr Pankaj Singh

As a journalist and socially conscious citizen of the city, I would welcome your interest and intervention for shifting the garbage dump yard from Sector 137, Noida. However, I would also like to bring certain ground realities on the table over the issue that has been brought to your notice in the guise of civil society initiative.

The fact today is that the cause itself has been relegated to the sidelines where some vested interests with political motive and media limelight in mind are gradually taking the center stage. The fact is that there is a fierce infighting among the leading faces of the shift dump yard campaign and I feel I must apprise you against getting motivated by these forces.

After all, the MLA should be least bothered with the dirty mohalla (locality) politics as he presents the entire constituency and not a selected set of self-styled representatives.

The fact is that the socially concerned citizens of the 8 housing societies who initially took up the issue and mobilized the masses are nowhere in the picture today. They have been working silently on the ground thus far and suddenly the media orchestrated vested interests jumped into the fray. Most of the characters probably lack social recognition in the world at large and hence they are finding a solace in the ten minutes of media fame within the mohalla politics.

This probably is the reason why the so-called activists are least bothered to get the issue of shifting the dump yard immediately. If the issue would be settled so early where would they go for recognition?

A case in point is Track2Realty last story “NGT stay likely on Noida Sector 137 dump yard”. A section of these so-called activists jumped into action to immediately question and contest the story vehemently as if saying, “Oh my God! How can it be solved so early”. This is despite the fact that the story is only talking about a likely scenario (as shared by a source with the NGT) and also puts pressure on the NGT and the other government agencies.

I would urge you sir to look into the following points before entertaining only a small set of people that has completely turned off a large section of people residing in the 8 housing societies of the sector:

Q. Whether a small group of people who come to you as representatives of the entire sector have the sanction of the respective societies to represent them?

Q. How many of these so-called representatives of the sector are elected office bearers of the respective apartment owner associations?

Q. How many of them have even contested the elections of the respective apartment owner associations, forget any sector level association?

Q. Will they still be active for socially relevant causes if there would be no media spotlight tomorrow?

Q. What legal action has thus far been initiated before roping in the media and the political establishment?

Q. Can selfie driven representation to MLA and Noida Authority solve the problem of dump yard in the vicinity?

I know you have many close aides in this part of Noida and if you look for an honest answer to the above queries/points raised, you will realize that only one side of the picture has been shown to you thus far. I would request you to look for complete picture and help the residents of the sector 137 Noida in a broader perspective.

Instead of entertaining a closed coterie in the name of Sector 137 representation, it would help you to get a pulse of the masses if you come to respective housing societies and meet everyone in general. There are a number of socially conscious citizens and senior citizens who could then bring to the table the real issues and could also be willing to assist you (beyond selfie sessions) in getting it addressed.

Furthermore, the 8 housing societies of Noida Sector 137 are only a fraction of the local population. There is a greater share of rural population, which is legally represented by the Gram Pradhans, but their involvement is not up to the desired extent. Despite the fact that they are the real voters of the constituency and hold more influence they have hardly been given the due voice in this campaign.

The bottom line is that, and coming from a political family you must understand that, the grass root connect works better and longer than connecting with a coterie of limelight hungry characters who are more interested in ten minutes of media fame.

Needless to say, most of the so-called voices of shift dump yard campaign in Sector 137, Noida are today least bothered with the cause. I rest my case sir and hope you understand the dirty politics behind a social cause that is now dragging you in the guise of civil society intervention. I have anyway some more expose ahead on the subject.

By: Ravi Sinha

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