When interest rates go down...

Good times seem to be smiling yet again on the real estate sector. Several banks have cut their prime lending rates (PLR), making home loans cheaper for the borrower.Borrowers are eagerly waiting for the benefit of slashed rates to be passed on to them. What are the options before the borrower when the rates are set to fall? Let us explore.

Your next move is determined by what you foresee for the real estate sector. Some borrowers may perceive this reduction in rates as a temporary phenomenon.Others may expect more rate reductions in the future. It is impossible to accurately predict the direction of the interest rate movements.
Source:http://economictimes.indiatimes.com/quickiearticleshow/3904577.cms

Delhi Real Estate Gears Up For Future

Delhi has always been a trendsetter in the real estate industry of the country. So forth, the city swirls its way ahead into the future, big revamp plans awaits it. Delhi real estate in the next few years is expected to witness a major revolution in the infrastructure segment.
A significant improvement in the road and transport system is on the cards. A six-lane National Highway 8 connecting Delhi and Gurgaon, which is already functional substantiates the statement.

Amid the current 65 km-long Delhi Metro Rail's expansion plan taking shape, it will not only be providing commuting convenience but will also offer better connectivity to suburban areas. More than 400 km lines will interweave the city and extend to the suburbs of Ghaziabad, Noida and Gurgaon before the commencement of 2010 Commonwealth Games in the capital.
Delhi has always been a land of equal opportunities for real estate developers, investors and professionals. The city is a significant destination for MNCs and Corporates and with more investments pouring in the corporate sector, the commercial real estate market of the city can only boom.

In view of these large scale investments and Commonwealth Games 2010, the city is gearing up to host huge number of expats and tourists from across the globe. Considering this, the hospitality industry in Delhi-NCR is likely to go through a substantial overhaul.
According to industry reports, Delhi-NCR is expected to have 27 new hotels, serviced apartments and mixed-use developments with approximately 4,900 rooms in various categories in the next three to four years. Delhi Real Estate is anticipated to have at least a hundred shopping malls by the year 2010.

Source:http://ezinearticles.com/?Delhi-Real-Estate-Gears-Up-For-Future&id=1235170

Affordable housing next focus for developers

The slowdown in property market will see developers focusing more on mid-range and affordable housing with a considerable correction in prices of existing residential projects, says a recent survey by an industry lobby.The Federation of Indian Chamber of Commerce and Industries' (FICCI) survey on 'Impact of Global Financial Crisis on Indian Real Estate Market' says while scarcity of funds has affected the supply side, high interest rates have led to demand dwindling.

“The corporates are postponing their expansion plans as they are expecting the prices to fall further. There is time and cost overrun in the existing projects, while new projects are being deferred. This would eventually lead to a reduction in price in the coming four quarters and the market is expected to turn in favour of the end user," the survey report says.The survey says developers also seem to have finally realised the need for affordable and mid-range housing with emphasis on the quality of product to survive the current slowdown, as there is a dearth of low-cost affordable units that will be the main focus of investors.

"Due to higher risks of investing in real estate, the real estate sector will witness lower PE (private equity) deals in the next 12 months, as funds will not be easily accessible, valuations are expected to go down further and the costs are going to be very high for developers," the survey says."PE funds will put forward their own terms and conditions like guarantees and assured rates of return. In view of higher risks due to adverse market conditions and the ongoing financial crisis, investors expect internal rate of return (IRR) of above 25 percent from Indian real estate projects," it says.

To fight the impact of slowdown, FICCI has proposed an eight-point agenda to boost the realty sector and help the foreign direct investment in this sector.The FICCI agenda includes policy changes like availability of adequate and cheap long-term finance, simpler legal framework, single-window clearance, land reforms, incentives for housing projects, check on speculation in land prices and stricter laws for defaulting developers to boost confidence of consumers.

Home loans under this scheme should be offered till March 2010 and not till June 30, 2009 to encourage buyers to return to the market.Private sector banks should also follow suit by cutting down interest rates on home loans significantly to benefit both existing and potential home loan customers.

FICCI is of the view that as the right climate for a revival of real estate sector has set in now, banks should consider lending funds to developers selectively so that existing and new projects do not face significant delays.

Source:http://www.hindu.com/thehindu/holnus/006200812211431.htm

Tips For Buying a New Home

If you are a first time home buyer, the process may seem overwhelming. However, there are some tips for buying a new home that will ensure the process goes as smoothly as possible. Check out these tips for buying a new home, and get ready to find the house of your dreams.

The first step that will help the mortgage process go off without a hitch is to review your credit history and your financial condition. Handling this homework up front will prevent any unpleasant surprises as you get further into the process.

You can even take the process a step further and get prequalified for your mortgage loan. Not only does this tip for buying a new home speed up the lending process; but pre-approval will offer you clout when you are negotiating on the price of a home.

Once you know how much house you can afford, the next step is to find that perfect home for your family. Begin by selecting a real estate agent to assist you in your search. It is also a good idea to create a wish list of features you are looking for in a home.

Write down your preference in number of bed and bathrooms, square footage, location and lot size. By giving this list to your agent, he can narrow down your prospects to homes that would truly fit your needs.

Home buying is a complex and sometimes confusing process, but a little preparation will make the task a bit easier. By following these tips for buying a new home, you can be on your way to finding your dream house in no time.

Source:http://ezinearticles.com/?Tips-For-Buying-a-New-Home&id=1746463

Buy our unsold flats at current rates: squeezed realtors to ask Govt

In the first of its kind bailout demand, real-estate companies are planning to ask the Government to buy out their unsold flats at current market prices and sell these at a later date. The proposal floated by one of the big Delhi-headquartered and listed real-estate companies is one of the many ideas to be hard sold at the Planning Commission tomorrow.

A real estate company’s chairman and managing director who did not wish to be quoted told The

Indian Express, “We will discuss this tomorrow with Planning Commission Deputy Chairman Montek Singh Ahluwalia.” He, however, did not disclose the inventory position of the large firms in India.

According to Jaskirat Singh, owner of Delhi-based real estate broking firm Grand Real Estates, about 30-45 per cent of properties worth Rs 50 lakh and above launched over the last six months remain unsold for DLF and Unitech. In the case of Omaxe, it is 25-30 per cent, he said. These companies do not disclose their ready but unsold assets.

When contacted, a promoter of another leading Delhi-based and listed developer said this was not the only proposal on the table to bail out the sector. “We want states to enter into joint ventures with big real-estate players by offering land as equity. State-owned banks must also be directed to start disbursing home loans now that they do not have a problem of funds,” he said.

To boost consumer demand and give a fresh stimulus to the sector, the companies are also seeking a further cut in interest rates on home loans. “It should be slashed to 6 per cent for loans up to Rs 5 lakh and to 7-7.5 per cent for loans up to Rs 30 lakh. What the public sector banks have done is grossly inadequate,” a developer said. Tax incentives to home buyers must be enhanced and rental income be made tax-free to incentivise purchases, he added.

Stung by the liquidity crisis, real estate companies also want the Reserve Bank of India to refinance the cash gap in existing projects. Most companies are borrowing at rates over 20-22 per cent to complete ongoing projects. “But, now, loans from banks have virtually dried up,” a promoter said.

Source:http://www.indianexpress.com/news/real-estate-prices/399424/

Gurgaon the new big thing in the world of real estate

Gurgaon is one of the fastest developing sub cities in India and no one actually ever imagined that the real estate in Gurgaon would achieve such sky-scraping heights. It is the hottest commercial as well as residential choice in the whole NCR and also has becomes the greatest emerging hub of BPO and IT. The boom in the real estate in Gurgaon has touched the unprecedented heights, which is quite clear from the amount of projects that are being planned to satisfy the escalating demand for buy, sell, rent, flats, apartment, plots, floor, land, banglows, kothis, commercial and residential property. In addition, Gurgaon is also well linked with the capital city of India Delhi through the Delhi Jaipur national highway as well as an 8 lane expressway is to link Gurgaon directly with Delhi. Likewise, the Delhi metro would also be extended on the way to Gurgaon. Both these aspects along with software industry add a lot to the worth of the properties in Gurgaon.

The most important highlight of real estate in Gurgaon is that, that Gurgaon has got the best location providing commercial and residential complexes close to each other. Another main feature of properties of Gurgaon is that properties are constructed or builded with earthquake resistance as well as stringent fire safety guidelines. This guarantees a total peace of mind for everyone who is considering investing in Gurgaon property.

With such vast choices and excellent features, searching a property in Gurgaon can be a bit difficult or say confusing. If you are determined to purchase real estate in Gurgaon or spend in the real estate market of Gurgaon real, then the most excellent best place to locate your ideal property is through taking the help of the real estate investors or property dealers. The real state agents takes keen interest in selling and arranging real estate properties that are situated near to the highway and at the same time well linked with the main city in order to satisfy you and make some profit for themselves as well.

Source:http://www.bignews.biz/?id=790928&keys=buy-sell-rent-plots

Gurgaon Metro Project will boost real estate sector

HUDA has offered 250 square metres of floor area in each of the six stations which the concessionaire can rent out to kiosks and retail outlets. The concession period is for 99 years. The land, however, would be owned by the Haryana government which would give it on lease to the concessionaire.

The Rs 1,000-crore project envisages the development of a metro link for providing last-mile connectivity from Delhi Metro’s Sikanderpur station on MG Road to NH-8 over a 60-metre-wide sector road (Vishwakarma Marg), where DLF Cybercity is located. The project provides further scope of extending the metro link to sector 55-56 in south Gurgaon and Udyog Vihar and Sector 21 Dwarka in the north.This is the second project in the country in which a metro rail project is being undertaken through a PPP model after the 71-kilometre Hyderabad metro project was won by Maytas Infrastructure.

Under the request for proposal (RFP), the contract was to be awarded to a company which would offer HUDA the highest revenue share of advertising and real estate rental which it earns from the project. However, it does not have to share revenue of the fare it collects.According to industry sources, infrastructure major Larsen & Toubro (L&T) had also initially shown interest for the project, but backed out finally.The two players are planning to set up a special purpose vehicle in which IERS will have 74 per cent equity holding, while the rest will be with real estate major DLF. The entire debt component of the project will be raised by IERS.

A consortium of ITNL ENSO Rail Systems Ltd (IERS), a group company of IL&FS and real estate major DLF, has emerged the sole bidder for the 3.2-kilometre Gurgaon Metro rail project being implemented through public-private partnership (PPP) by the Haryana Urban Development Authority (HUDA).

The company will be required to finance, design and construct all the civil works. The concessionaire is also required to procure and install all systems including the rolling stocks, overhead electrification, track, signalling and telecommunication, ventilation, air-conditioning, automatic fare collection, depot and other systems and facilities required for a successful metro link.

Malls under construction, developers pray Delhi-like culture sweeps region too

Even as two recently-opened multiplexes fell considerably short of footfalls, as many as 16 new malls and such complexes will hit the tricity in a year’s time.

Against much anticipation among the residents and the developers at the time of the launch, Uppal’s Centra Mall in the Industrial Area and DT Mall at IT Park Chandigarh, are still looking for takers. Maximum number of visitors here comprise of cine-goers.

“The recession in the real estate industry is definitely going to impact the future developments of malls in the region. At the same time, we are hopeful that a lot of potential is there in the tricity to generate demand for malls,” said Pradeep Rai, brand manager, Paras Build-Call Pvt Ltd, Gurgaon. The company is constructing one of the largest malls in Punjab with a built-up area of 3.5 lakh square feet — Paras Downtown Square at Zirakpur.

While developers claim most shops have been sold and leased out both in the existing as well as under construction sites, experts are keen to know how this huge inventory of commercial space waiting to be launched in the tricity will generate demand. The malls, where space is usually available with a mix of lease, rent and sale, the rate varies from Rs 16,000 to Rs 25,000 per square feet, depending upon the floor and the location.

“At present, 14 brands are located in the mall with a total built-up area of 1.10 lakh square feet. Around seven will start operations next month,” said B S Arora, sales head, Uppal’s Centra Mall.

Sixteen malls are, meanwhile, under construction in cities like Chandigarh, Mohali, Panchkula and Zirakpur. These include the Shalimar Mall in Panchkula and the Paras Downtown Square Mall in Zirakpur, which are on the verge of completion and awaiting inauguration.

Developers, meanwhile, are banking on the “potential in Chandigarh as residents are exposed to shopping in malls in areas like Gurgaon and Delhi”. They have crossed fingers for the tricity, hoping the mall culture will sweep the region too sometime in the near future.


Source:http://www.indianexpress.com/news/

No slowdown in demand for industrial land in Gurgaon

The slump in the economy seems to have had no effect on demand for industrial property in Gurgaon. If officials at the Haryana State Industrial and Infrastructure Development Corporation Ltd (HSIIDC) are to be believed, there is a demand of 5,000 acres of industrial land in Gurgaon district.

“Industrial land rates around Gurgaon range from Rs 9,000 per square metre to Rs 20,000 per square metre. We do not have enough land to fulfill the growing demands and these rates are at present simply speculation,” said a senior HSIIDC official, adding they were in the process of acquiring another 160 acre of land for the upcoming Industrial Modern Township (IMT) in Manesar. The president of Haryana Industrial Association, Krishan Kapoor, said: “Initially the Haryana Urban Development Authority (HUDA) used to procure land from villagers and hand it over to HSIIDC for development before selling to end-users. Recently the authority to acquire industrial land was passed to HSIIDC, which now has the responsibility of acquiring land, developing and selling it to end-users,” said Kapoor. “Investors usually purchase industrial plots from HSIIDC and sell them to end-users at higher rates,” he added.

Source:http://www.indianexpress.com/