HC tells NHAI to maintain Delhi-Gurgaon Expressway

Punjab and Haryana high court on Thursday asked the concessionaire, Delhi Gurgaon Super Connectivity Limited ( DGSCL), the Gurgaon police and all others concerned to put their heads together to resolve all outstanding issues to smoothen the vehicular traffic at the toll plaza on the Delhi-Gurgaon Expressway.

The high court directed the National Highway Authority of India (NHAI) to improve the condition of the Delhi-Gurgaon Expressway and service lanes near the Sirhol toll plaza in Gurgaon at the earliest for the smooth flow of traffic.

The division bench comprising justice S K Mittal and justice Amol Rattan Singh, hearing the petition filed by the concessionaire, Delhi-Gurgaon Super Connectivity Limited (DGSCL), also directed all the parties concerned in the case to convene a meeting before the next date of hearing and inform the developments to the court.

During the arguments of the case, the Haryana government’s counsel informed the court that the NHAI was not taking the case seriously and there was a need for the maintenance of road and service lanes near the toll plaza.

The Gurgaon police informed the court that authorities were conducting meetings at regular intervals to ponder over the issue and to make the toll plaza less congested for smooth flow of vehicles. Justice S K Mittal said that he would himself be making a visit to the Sirhol toll plaza in a day or two to get a first-hand account of the ground situation. He also cited an example where a serious patient could not reach the hospital in time due to the traffic jam at the toll plaza.

However, justice Amol Rattan Singh asked the Haryana government to also look at the condition of traffic snarls at Karnal toll plaza where sometimes the traffic comes to a halt for almost on a distance of one kilometre.

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JLL Makes India Property Predictions for 2013

According to global real estate consulting firm Jones Lang LaSalle (JLL), India’s property markets closed 2012 with a few notes of positivity as the inflation was below the Reserve Bank of India’s (RBI’s) projected levels and the Index of Industrial Production (IIP) growth increased in the last two months of the year, giving new hopes for 2013. Overall, 2012 remained inactive, affecting all the major sectors in real estate.

Office space absorption remained lower compared with 2011. Meanwhile, retail faced challenges of quality supply, affecting the overall absorption.

The residential demand improved; however, developers continued to struggle with unsold inventories, yet expect moderation in inflation and strengthening policies.

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Below are 13 interesting India property and market insights for 2013 from various Jones Lang LaSalle India analysts.

1. Economy – As per RBI, the policies will focus towards growth in 2013, although risks of inflation will continue to remain. Interest rates are expected to witness a downward correction of 100 to 150 bps in 2013.The softening of interest rates is expected to reduce the home loan rates, in turn increasing the buying of real estate assets. Increasing urbanisation and consumption despite the slowdown in GDP growth will be the key drivers of the economy in 2013.

2. Policies – The recent policy initiatives are expected to improve the investment climate and business environment, and they are likely to benefit the real estate sector in 2013. Few policies to look at in 2013 are: the Real Estate Regulation Bill, likely to be tabled in the upcoming winter session of the parliament; the real estate investment trusts (REITs) or real estate mutual funds (REMFs), expected to get launched in 2013; and the Land Acquisition and Rehabilitation and Resettlement Bill, likely to be tabled in the upcoming budget session in 2013.

3. Infrastructure
 – The infrastructure sector achieved a substantial FDI of USD 2.8 billion, accounting for a notable 7.7% of the total FDI inflow in FY 2012. In the year 2013, the relaxation of FDI policies in multi-brand retail is expected to surge the investment in back-end infrastructure development such as logistics. Moreover, an FDI of up to 100% is also permitted under the automatic route in built-up infrastructure and is likely to surge the development of the city and the regional level infrastructure in 2013.

4. Office Real Estate
 – Office space absorption in 2013 is likely to remain equal to that in 2012. Supply correction will lead to fewer options for occupiers, and steady absorption will decrease vacancy levels. Competition for space in prime buildings in prime locations is expected to increase in 2013, and these spaces will start earning a premium. Rents are expected to increase from 2H13 onwards as fewer new projects are being launched, and vacant spaces are steadily filling up. Decisions on occupying special economic zone (SEZ) spaces will be taken by occupiers who are sure of taking a position in India as they have to go live by March 2014 to avail the benefits.

5. Retail Real Estate
 – The relaxation in FDI policies in multi-brand retail interestingly has surged aggressive growth amongst Indian retailers to take the first-mover advantage. This is expected to drive the demand in 2013. However, as supply of retail malls remains a challenge, retailers are likely to opt for built-to-suit (BTS) options or high-street properties. As most developers are focusing on residential developments, the supply of malls will reduce in the major cities over the year. In 2013, retailers will be cautious and take more time to execute agreements as they will do a detailed analysis before closing transactions. Retailers will commit to space only if they see approvals in place and the construction of the space in progress.

6. Residential Real Estate
 – REITs in India allowing investments in rental housing is a new trend worth watching. The framework and details of REITs, once formulated, are likely to drive the investor demand across the prime cities in India in 2013. Another interesting trend observed in the last two years was that the stock in the range of INR 2,000-3,000 per sq ft was fast sold out. In 2013, this range is likely to shift to INR 3,000-5,000 per sq ft with the increase in inflation and construction costs.

7. Industrial Real Estate
 – Sale and leaseback of exiting industrial assets by existing companies is likely to increase in 2013. MNCs testing the waters in India are likely to focus on BTS industrial properties. Warehousing companies are now preparing for the goods and services taxes (GST) and are slowly moving from go-downs to distribution centers. The growing trend in e-retailing and FDI in multi-brand retail is expected to surge the demand for warehousing spaces in 2013.

8. Education and Health Care – There are aggressive growth plans in K-12 and skill-space educational institutions in 2013, particularly in the non-metro cities of India, where there are large opportunities. In the health care segment, hospital chains, along with day care centers, are expected to expand aggressively in 2013. Both these segments are expected to attract private equity investment in 2013.

9. Investment sentiments
 – Debt capital is likely to increase in 2013. Banks are expected to be more flexible in lending. Most of the realty funds are close to their exit periods as they were invested around 2006-2007. Therefore, the exit of real estate funds is expected to increase in 2013. Meanwhile, interest on income-producing assets by institutional investors is likely to increase over the year. However, the availability of such assets will continue to remain a challenge. Assets will witness a softening of yield rates amidst increased liquidity.

10. Delhi
 – Most of the absorption in Delhi NCR is likely to focus around Gurgaon and Noida, with the exception of Delhi International Airport Limited (DIAL) and few select stand-alone Grade A projects of Delhi. As the demand supply gap of quality office space is expected to increase because of the supply constraints in select precincts of Delhi NCR, rents are expected to increase in certain micromarkets by 2H13. Developers will focus on delivery of the products.

11. Mumbai
 – Office absorption and residential demand will continue to increase in Mumbai. The trend of completion of high-quality new office projects pushing up Grade A office vacancy levels and providing tenants with greater bargaining power will reduce in 2013. With banks drastically reducing lending activities over the last two years, resulting in debt remaining a constraint, not much of new commercial supply (except spillover from 2012) is expected to be completed in 2013 and 2014. Residential launches are expected to increase; however, price drop is unlikely to happen over the year. Amidst constrained supply of quality retail malls, rental gap between Grade A malls and Grade B malls will further widen in the year.

12. Bangalore
 – In terms of office space, Outer Ring Road will continue to be the sought-after destination in 2013. For residential real estate, North Bangalore is expected to continue to remain as the best performing region in the city with strong infrastructure development, increased demand and price appreciation in 2013. Meanwhile, Whitefield will continue to retain its sheen for both office and residential real estate because of affordability, proximity to key work places and good social infrastructure.

13. Other Cities – Chennai, which witnessed a historical high number of residential launches in 2012, is likely to slow down in 2013. This trend is also expected in Pune. Meanwhile, Kolkata and Hyderabad are likely to witness increased launches. Prices of residential units are likely to increase in all the cities because of the increased construction costs. Ahmedabad, Bhubaneswar Kochi and Coimbatore are other cities in India that are likely to witness immense development activities in 2013.

Delhi-NCR: The crown and the jewel

For real estate players and developers, if North India is the country’s crown, then Delhi-NCR (national capital region) is the jewel on it. Dotted with malls, swanky glass and steel façade and high-rises, some of which promise a glimpse of the skyline, the region is a realtor’s delight.

While real estate players across the country are battling slowdown in sales and inventory pile-up, Delhi-NCR has largely remained immune. Even during slowdown, the region has not witnessed a price correction either in commercial or residential segment. Prices continue to gallop as investors feel that property is an investment that cannot go wrong.

Almost all major real estate developers have a presence in the region. These include DLF, Unitech, Tata Realty, Parsvnath, Raheja, and Supertech. In the next couple of years, NCR will boast an 82-floor high rise, a well-developed Formula One Racing Track, a World Trade Centre and numerous sporting venues.

HOUSING SHORTFALL

The NCR is one of the biggest retail and real estate markets comprising nearly 27 per cent of the overall stock amongst the metros. The region has an interesting mix of retail development between the five micro-markets of Delhi, Noida, Gurgaon, Faridabad and Ghaziabad which have evolved over the years.

Shortage of housing units is expected to touch 27-30 million by 2013 and for this, huge amount is required to carry on the development.

With more people moving to cities, demand for affordable housing will outgrow the rest of the sector. If infrastructure and policy hiccups are taken care of, many more developers will like to have a share of the affordable housing pie, says Brotin Banerjee, Managing Director and Chief Executive Officer, Tata Housing.

Developers are banking on the untapped demand in the mid-segment housing bracket and low interest rates launched new projects.

The NCR residential market is flush with a large supply pipeline, majority of which is expected to become ready for possession in two-three years. Samir Jasuja, Founder and CEO, PropEquity, says: “ In order to afford a home in NCR, the annual household income of a family needs to be in the range of Rs 8-47 lakh in Gurgaon, Rs 5-32 lakh in Noida, Rs 4-19 lakh in Ghaziabad and Rs 3-37 lakh in Faridabad.” Largely targeting mid-income echelons in Delhi, Uttar Pradesh, Haryana and Punjab, majority of these projects are mostly in unexplored outskirts of suburbs and cater to the untapped budget housing demand.

Gaurav Pandey, SVP & Head – Research and Consulting, says: “Micro-markets of NH-24 Bypass, Crossing Republik, RajNagar Ext (Ghaziabad) and Greater Faridabad (Faridabad) region are comparatively cheaper; and an average buyer can afford a 4 BHK there. However, these markets have their fair share of concerns. For instance, Greater Faridabad region has internal infrastructure problems, Crossing Republik has a proposed dumping ground.”

YEAR 2013 (Y2K+ 13)

Industry players, analysts and Government are hoping that 2013 will be better than 2012. With residential prices breaching all affordability limits in major metros, offtake in real estate sector remained largely subdued in 2012.

After being in near comatose state, industry points out that the outlook for the next year will largely revolve around economic improvement.

Major listed realty players are swimming in debt and piling inventory. Transaction size remained smaller this year despite prices remaining stagnant unlike the previous two years where most of the cities witnessed a steep price rise.

One of the biggest hitches that cash-strapped developers faced was in getting approvals. They point that obtaining the 55-odd permissions to begin construction of a project can take as long as two years. During this time, the cost of acquisition or even just holding the land for a project rises.

Sanjay Dutt, Executive Managing Director, South Asia, Cushman and Wakefield notes, “…Given that most aspects of development such as construction cost, development cost, time taken for approval and debt all have been on an upward tangent developers have not been able to lower cost .”

CORRECTION AHEAD?

But the RBI instructing scheduled banks to not allow a rollover of loans given to real estate developers into next financial year will mean that developers will see an urgency to dispose of their unsold inventory to raise funds to pay back their loans. This holds the potential for a major correction in residential prices in the NCR region.

The average property price in the 10 small cities taken is pegged at Rs 2,200-2,500 for a sq. ft. This is comparable with Pune among the large markets, which has property prices in the range of Rs 3,000-3,500/sq. ft. Even when prices rose by 25-30 per cent in the large cities in fiscal years 2010 and 2011, the small cities saw increases of only 10-12 per cent, the report said. In 2011, Jaipur had the largest number of home sales.

FDI IN RETAIL: A BLESSING FOR REALTORS

FDI in retail will be the key driver in pushing demand for retail real estate space – with a large number of modern retailers entering the market, there is going to be increasing demand for commercial real estate space in metros and tier II cities. Lalit Kumar Jain, President – National – CREDAI, said, the Finance Ministry and the RBI needs to work together to strengthen the demand and supply side by a special housing development policy.

Michael Schumacher Tower – MSCWT, Sector 109 – Gurgaon

Michael Schumacher Tower By Homestead.

 Michael Schumacher Tower - MSCWT

Inspired by the concept of unique “Human Architecture”, planned by Michael Schumacher “The legend” himself and this project MSWCT (Michael Schumacher World Champion Tower) is been presented by Homestead.

Take a look of the previous delivered building.
MSWCT 090211 –

YouTube

Some of the fantastic specifications’ are as under —

Ø Project land – 5 Acres (approx)

Ø Project location – sector-109

(Best residential sector in Gurgaon with the neighborhood like Shoba, ATS, Chintel etc)

Ø Total flats- 125

Ø Single tower and rest open green area with hi-tech club and swimming pool.

Ø High rise floors- 34.

Right now launching only 25 flats on 24th July with BSP 10,500/-sq.ft.

Ø Michael Schumacher himself will inaugurate the launching function and the construction will be started on the same day as 24thJuly 2012

Ø Completion of project within 3 Years.

Ø There is a Helipad on the top floor of the Tower.

Ø In this whole world there are only 7 such towers

Ø Club and swimming pool is free for the persons booking the flats during this launch.

Ø There is a swimming pool and gym in each flat of this project.

Ø Air conditioning VRV system and highly luxurious flats with imported wardrobes in the entire bedroom.

Area BHK BSP
3700 4 9000
5500 5 9000

1000 rs/sq.ft Inagural discount for first 25 units (27/6/2012). One can also bargain some broker discount.

Booking Amount- 20 lakh rupees only

Payment Plan-

30 days – 20% including booking amount

60 days – 10%

After this CLP < Construction Linked Plan > will be considered .

Ø Next revision of rates on 24th August 2012 = BSP 12000 rs/sq.ft.

Ø Possession keys will be distributed by Michael Schumacher during a grand celebration.

Ø The world is full of magical things waiting for our wits to grow sharper .

Location Map

 

Michael Schumacher Tower - MSCWT, Sector 109

How can you tax Gurgaon without basics in place, SC asks Haryana

Describing the lack of facilities to the residents of Gurgaon as “shocking,” the Supreme Court on Friday said the Haryana government or the Municipal Corporation of Gurgaon (MCG) had no business to collect property taxes from them when they had failed to provide basic amenities like sewer and drain in the “so-called most posh colonies in the National Capital Region (NCR).”

“Do you have sewer lines or fresh water or even drainage system? How can you levy a tax for maintaining a service that you don’t even have?,” a bench of Justices D K Jain and Madan B Lokur said.

“No property there is worth less than Rs 1 crore. However, they don’t even have basic facilities. What have you done regarding providing external services, particularly drains and water? You tell us in an affidavit what external and internal services you provided for these township colonies,” said the Bench.

The court was also anguished by the absence of a counsel for the Haryana government and decided to call its Principal Secretary (Law) to explain lapses in their representation and to clarify their stand on providing basic facilities to Gurgaon residents.

The court was hearing petitions by NGO ‘Gurgaon Citizens’ Council’ and a resident of the area, challenging notices by the Gurgaon civic agency to collect property taxes from the residents.

Victory Valley Carpet Area calculations

VICTORY VALLEY     (Figures in SqFt)  
2BHK 1435 3bhk 2428
Bedroom 1 133.37 Bedroom 1 213.96
Toilet 1 66 Toilet 85.56
Bedroom 2 168 Dress 85.56
Toilet 2 67.47 Bedroom 2 181.25
Kitchen 77 Toilet 2 50.31
Drawing / Dining 211.51 Kitchen 72.67
Bedroom 3 168
Toilet 3 55.73
Dining 143.56
Living 154.89
Servant 49.32
Servant Toilet 33.13
Total 723.35 Total 1293.92
Loading without Balconies 49.59 %   Loading without Balconies 46.71 %
Balcony 1 59.66 Balcony 1 49.8
Balcony 2 40.01 Balcony 2 48
Balcony 3 34.02 balcony 3 48
Total 133.69 Total 145.8
Total with Balconies 857.04 Total with Balconies 1439.72
Loading with Balconies 40.28 %   Loading with Balconies 40.70 %

Spaze AT4 – Carpet Area calculations

Spaze AT4 1708 sqft   2070 sqft
 Master Bedroom 194.45 191.25
Toilet 1 46.61 48.13
Bedroom 2 113.3 135.13
Toilet 2 42.56 40.69
Kitchen 82.4 81.67
Bedroom 3 132 126.5
Toilet 3 47.4 40.69
Dining 130.9 92.5
Living 180.8 199.75
Lobby Entrance 27.31
S Toilet 19.5
S Room 45.25
Lobby 60 51
Study 94.92
Total 1030.42 1194.27
Loading without Balconies 39.67 %   42.31 %
Balcony 1 80 Approx 102
Balcony 2 75 Approx 96
Balcony 3 42 Approx 42
Balcony 4 Approx
Balcony Kitchen 20 Approx 28
Total 217 268
Total with Balconies 1247.42 1462.27
Loading With Balconies 26.97 %   29.36 %

Effective carpet area is 73% and 70% of the advertised super area.