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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What does the new-age buyer want?

Vineet Relia of SARE Homes talks to Lakshmi Krupa about financial innovations, Chennai’s fascination for villa projects, and the city’s changing needs…

Customers almost always come with a checklist these days, especially in suburban areas where we do gated communities. In Chennai, proximity to schools, health facilities and security are of great importance. They are not looking for super luxury but a good lifestyle at a low ticket price.

How different is it being an FDI developer in a traditional market?

In some sense, in the real estate market, we see ourselves as game changers. The real estate market usually has family-run businesses or one-man businesses but being a corporate body with an independent board helps us remain objective. There is no personal agenda and our projects are all from the capital provided by funders such as Morgan Stanley and Goldman Sachs.

You have announced a few financial innovations (such as pay nothing until possession after the initial 20 per cent). Is this your reaction to the current market scenario?

While we continue to believe that the market is as robust as ever, our innovation is an effort to reduce the financial burden on potential homeowners. Consider a typical buyer — a couple with double income, buying a home on loan. They apply for the loan and until possession they have to carry the burden of their rent and the EMI. Sometimes, projects are delayed due to approval issues and in these cases they save a lot of time with this offer.

There has been a marked increase in villa projects along OMR and GST over the last one year. What explains this?

We find that the Chennai customer wants to stay as close to the ground as possible. That’s probably why high-rises don’t catch their fancy as much as villas do. You own your own piece of land and it comes with the option of expansion later. In our projects, we are offering expandable villas that come with a pre-approved plan for expansion. Owners can build another room anytime they want to and not even necessarily through us but any builder.

Infrastructure-wise how does Chennai compare with other markets?

I don’t think a lot of people even know that Chennai has seen the highest amount of FDI in the last two to three years. A lot of activity is happening, especially around the Oragadam area, and a detailed Master Plan with more structure will take the city to a higher platform almost certainly.

Places you can buy a house in 2013 and gain from price appreciation

If you are looking to buy a house for investment in 2013 and are not sure where you can earn the best returns , don’t worry. We bring you what experts say about real estate destinations that will give good returns over the next three-five years.

New Ground

In the last couple of years, the real estate market has changed remarkably in both metro cities and small towns. Prices have crossed the peaks reached before the 2008 economic slowdown.

However, in 2012, the companies grappled with economic uncertainty, low demand, fund crunch and high inflation. “High inflation and interest rates dealt a double blow to developers by increasing input and debt costs. Sales fell as buyers became wary of rising interest rates,” says Shveta Jain, executive director, residential services, Cushman & Wakefield (C&W) India, a property consultancy firm.

Still, the mid-end residential segment continued to generate buyer interest. This, and increase in prices of raw materials, pushed up prices in most cities.

Realtors will grapple with a lot of inventory and debt in 2013, say experts. “In 2013, developers will price projects more judiciously and offer a lot more pre-launch benefits. Those with large projects and inventory will be under more pressure to give discounts,” says Anuj Puri, chairman and country head, Jones Lang LaSalle India, a property consultancy.

The Union Budget can also be a milestone as the sector looks forward to big policy decisions and reforms, including the grant of industry status.

DELHI-NCR

The Delhi-NCR is the favourite of property consultants. With massive infrastructure works in the pipeline, locations such as Dwarka Expressway, Noida Extension and New Gurgaon are likely to attract a lot of buyers-both investors and end-users.

“The market, once driven by investors, has slowly shifted towards end-users, as the former’s cash position worsens and end-users step in to capitalise on low prices,” says Aniruddh Wahal, co-head, occupier services, DTZ India, a real estate consultancy.

Dwarka Expressway:

Since 2009, developers have started residential development along the upcoming Dwarka Expressway, an eight-lane expressway that will provide an alternative link between Delhi (Dwarka) and Gurgaon. New projects, expected to be ready by 2015, cater to the middle and high-end segments.

“Its proximity to the capital city and the international airport gives it an edge over other emerging destinations such as Noida-Greater Noida Expressway, Yamuna Expressway, Bhiwadi and Dharuhera,” says Wahal.

The area is divided into two parts-the northern region on the side of Dwarka and the southern region closer to Gurgaon. The north (Sectors 103, 106, 109-113) is expected to surpass the south in returns due to proximity to Dwarka and the international airport.

DTZ India says prices in the region will go up by 25-30 per cent per year over the next five years. Knight Frank has forecast an annual return of 16 per cent during the period.

Noida Extension:

Though developers recognise Noida Extension as a separate location, it comprises Sectors 1, 2, 4, 16B, 16C, 16D and Knowledge Park V of Greater Noida. It is close to Noida (10km from Noida City Centre) and 18km from Connaught Place, New Delhi’s prime business location. A proposed metro rail link will improve connectivity between Noida and Delhi.

“It is the most attractive location in the NCR for affordable housing and is expected to see yearly growth of 15-20 per cent in the next five years,” says DTZ’s Wahal. Knight Frank says properties in Noida Extension will give an annual return of 16 per cent over the next few years.

 

Quote:With options ranging from Rs 3,200-15,000 per sq ft and returns of 18-30%, residential real estate looks promising over the next five years.

SAMANTAK DAS Director, Research & Advisory Services, Knight Frank India

Greater Noida:
Situated around 40km from the south-eastern part of New Delhi, Greater Noida is emerging as an industrial region and an educational hub.

It has good infrastructure and is home to several big companies. It is connected to Noida by a six-lane highway operational since 2002. You can drive from Noida to Greater Noida in 15-20 minutes. The Yamuna Expressway, which has also become a property hotspot, connects it with Agra via Mathura. A metro link will connect it with Noida, Ghaziabad and New Delhi.

Greater Noida is an attractive location for mid- and high-end residential segments. “Though there was not much activity in last 15-17 months due to land acquisition and master plan issues, things are expected to pick up. The area may witness a year-on-year price increase of 20-25 per cent,” says Wahal.

MUMBAI

The Mumbai market was subdued in 2012 with prices rising just 2-7 per cent. The demand is expected to pick up in 2013, mainly in the mid-end segment. The eastern suburbs of Mumbai (mainly Chembur, Kurla and Wadala) are expected to provide good returns on account of lower prices compared with areas in central Mumbai and western suburbs.

Ulwe:

Ulwe is an emerging location south of the Panvel creek. It is connected with the Uran Road that connects it with the Thane-Belapur Road as well as the JNPT Road to Jawaharlal Nehru Port. While Ulwe is just 7km from Belapur, a commercial hub, five other office destinations are within the 22km radius. Once the Nerul-Seawood-Uran rail network is ready, Ulwe will be connected with major office locations through a mass rapid transport system. At Rs 4,000 per square foot, one can buy a one-bedroom flat here for Rs 20 lakh. Ulwe is the most attractive destination in the Knight Frank report, which says it may give an annual return of 20 per cent in the next five years.

Quote: In 2013, developers with large projects and inventory will be under more pressure to give discounts than those with smaller projects and limited inventory.

ANUJ PURI Chairman and Country Head, Jones Lang LaSalle India

Chembur:

Located in the Mumbai Metropolitan Region’s central zone, Chembur’s proximity to the Bandra-Kurla Complex and other office destinations will fuel demand for residential properties here, say experts.

The upcoming rail, metro and road networks such as the Eastern Freeway, the Santacruz Chembur Link Road and the Chembur-Wadala-Jacob monorail will boost connectivity to the area.

Limited land availability will limit new construction and keep supply under control here.

Knight Frank says prices here are expected to rise from the current Rs 12,000 per square foot to Rs 27,000 per square foot by 2017. This comes to an annual return of 18 per cent.

Wadala:

Strategically located in the MMR’s central zone, Wadala is at a comfortable distance from the MMR’s main employment centres. The Eastern Expressway connects it with other regions of the central zone as well as business hubs in the island city. It is also connected through the suburban train network. It will also benefit from the under-construction Chembur-Wadala-Jacob monorail project as the Wadala-Chembur part is expected to be ready in 2013.

The regional development authority’s plan to develop Wadala on the lines of the Bandra-Kurla Complex may add to its appeal. Knight Frank says the area may give an annual return of 18 per cent over the next five years.

 

BANGALORE

This information technology (IT) hub saw steady sales in 2012, prompting developers to launch new projects. Prices in under-construction projects in growing submarkets have risen by 10-30 per cent in the past one year.

“The demand for houses is expected to remain stable or grow moderately in 2013,” says Wahal.

Bangalore is expected to offer an annual return of 15 per cent over the next five years.

“The city is the lowest in terms of capital values (compared with Delhi and Mumbai) and has seen moderate price appreciation,” says Jain of C&W.

The international airport and other infrastructure projects have shifted momentum towards the northern and eastern regions.

Kanakpura, Sarjapur Road, Bannerghatta Road, JP Nagar, Jaya Nagar, Whitefield, Varthur, Mahadevapura, CV Raman Nagar, Uttarahalli, KR Puram and Electronic City have emerged as the city’s main residential markets.

Hebbal:

The Bangalore international airport has made Hebbal an important destination. It has also emerged as an IT hub with several technology parks and companies.

Quote: In 2013, the demand for residential units in the top eight cities is expected to be 3.3-3.5 lakh as against the supply of 2.2-2.3 lakh units.

SHVETA JAIN Executive Director, Residential Services, Cushman & Wakefield India

KR Puram:

Closeness to the IT hub of Whitefield and Manyata Tech Park makes it a desired residential destination for IT professionals. KR Puram is located on the National Highway 75. The Baiyappanahalli metro station is just 3km away. The proposed Peripheral Ring Road and widening of the Old Madras Road will improve connectivity.

Realtors defer launches, shift focus from luxury

Property developers who have been holding onto high prices despite falling demand, especially in the luxury segment, are finally changing course. They are not dropping prices yet, but are holding back new launches and focusing on relatively affordable homes, industry researchers said.

New project launches came down by 16% in 2012 compared to 2011 levels, and high-end and luxury segments saw a drop of 24% and 23%, respectively, says a report by real estate consultants Cushman and Wakefield (C&W). “Of the number of units launched, a majority were launched in the middle segment comprising 83% of total launches,” the C&W report said.

https://i0.wp.com/www.hindustantimes.com/Images/Popup/2013/1/09-01-13-biz02.jpg

Developers consider one and two-bedroom flats in Mumbai and upto three-bedroom flats in Delhi to be middle income. Those above this are considered luxury property.

Industry experts say that real estate companies are also facing liquidity issues as bankers have become cautious about lending to the sector. While private equity deals were visible till the first half of 2012, it has come down sharply in the second half.

“Banks’ credit exposure to developers has fallen from its peak growth rate of 23.21% in June 2011 to 3.88% as per the latest reported data on September 2012,” a separate report by Knight Frank India said.

“The demand of residential apartments has come down substantially but prices have remained high and in some cases developers have increased prices, especially in the National Capital Region (NCR) and Mumbai. Now a correction is taking place and prices are not likely to increase for next 18-months,” said Pankaj Kapoor, managing director at realty research firm Liases Foras.

Increasing share of peripheral markets are likely to keep prices under check, especially in Mumbai and the NCR, the Knight Frank report said.

The analysts say controlled new supply of apartments in the NCR, primarily in new sectors in the Gurgaon area, will likely keep a check on the quantum of unsold stock.

NPR delay leaves realtors, homebuyers worried

The delay in the completion of the Northern Peripheral Road (NPR) is causing financial loss to thousands of homebuyers and real estate developers who have invested their money in projects along the multi-crore project.

The investors will have to wait at least three years to reap the benefit of the much-hyped corridor. Scores of projects are coming up here. “The buyers and builders are worried as overall value of the land and flats along NPR has gone down in the past two years,” said a member of the National Real Estate Developers’ Council (NAREDCO). The decline of land value has burnt a hole in the pockets of real estate players.
The 18-km road, also known as the Dwarka Expressway, is likely to be completed by April 2015. According to the latest project status report submitted to the state government by the Haryana Urban Development Authority (Huda), the completion of the stretch in 2015 will be subject to vacation of stay order on some portion and allotment of alternative plots to the people likely to be displaced from its 4-km stretch in New Palam Vihar and elsewhere.

The NPR is being built under the public-private partnership (PPP) model and will provide connectivity between Dwarka and NH-8 at Kherki Daula. About 200 residential and commercial projects are coming up along the stretch.

At present, out of the total length of 18 km, work is underway on 14-km stretch. The project report says the construction work on the 14-km stretch is slow as only 8-km portion is ready with bituminous work. The project has already missed its earlier deadline. The stretch was supposed to be completed by March last year and the total 18-km road by end of 2012. Huda, later on, extended the deadline to December 31, 2012 and end of 2013, respectively.

Investors are now worried about the project. Amit Bhatia, a resident of Sushant Lok who has invested in a housing project in Sector 85 along NPR, said, “I have been closely following the development related to the construction of NPR ever since I invested in the project in early 2012. The developer is ready to deliver the apartment by the end of this year. But I’m worried about the completion of NPR which looks far from completion.”

The Huda report does not mention, unfortunately, about penalty on the contractors responsible for the delay on the 14-km stretch.

JSR Construction Private Limited and India Bulls Construction Ltd are jointly constructing the 14-km stretch.
A sum of about R28 crore has been spent till date out of total estimated cost of R57 crore. Pankaj Kumar, chief engineer, Huda refused to comment on the delay when contacted by the Hindustan Times.The construction work is hampered by several reasons including legal cases against the land acquired by Huda for the project. Several cases are pending in the court.

Gurgaon 2031 Masterplan

Gurgaon 2031 Masterplan

As per the article the major proposed changes in Gurgaon Manesar Masterplan 2031 comprises converting the major Reliance SEZ designated lands into designated 7 new residential / commercial sectors. At the same time the size of area under development has been reduced despite increased projected population .

There are 2 ways of looking at it, removing SEZ means that the employment opportunities in New Gurgaon areas are that much reduced and they have to largely depend on the clusters existing in the Golf course Road / Sohna Road / NH8 areas near Delhi Gurgaon border and also existing manufacturing hub along NH8. The things added are wholesale markets near new sectors & heavy vehicle parking areas, which are not a great alternative to SEZ as far as employment is concerned.

Another way to look at it is this allows more residential space in the new sectors creating a high density residential cluster in Gurgaon, which will make it the residential core of Gurgaon.

Hope there is clarity on the creation of other infrastructure in this masterplan related to water/ power/ transport / STP etc.

Definitions of Super Area and Carpet Area

DEFINITION OF SUPER AREA
Super Area for the purpose of calculating the Sale Price in respect of the 
Said Apartment shall be the sum of Apartment Area of the Said Apartment, its pro-rata share of Common Areas in the entire said building and pro-rata share of other Common Areas outside apartment buildings earmarked for use of all apartment allottees in the project. Whereas the Apartment Area of the Said Apartment shall mean entire area enclosed by its periphery walls including area under walls, columns, balconies, deck, cupboards, space for AC unit and lofts etc. and half the area of common walls with other premises/ apartment, which form integral part of Said Apartment

Common Areas shall mean all such parts/areas in the project which the allottee shall use by sharing with other occupants of the project including entrance lobby, driver’s/common toilet at ground floor, lift lobbies, lift shafts, electrical shafts, fire shafts, plumbing shafts and service ledges on all floors, common corridors and passages, staircases, mumties, services areas including but not limited to lift machine room, overhead water tanks, helipad, underground water tanks & pump room, electric sub-station, DG set room, fan rooms, Laundromat, maintenance offices/ stores, security/ fire control rooms and architectural features, if provided.

Super Area of the Said Apartment if provided with exclusive open terrace(s) shall also include area of such terrace(s), Apartment allottee however, shall not be permitted to cover such terrace(s) and shall use the same as open terrace only and in no other manner whatsoever.

It is specifically made clear that the computation of Super Area of the Said Apartment does not include the following :

a) Sites for shops and shop(s).

b) Sites / Buildings/ Area of Community facilities/ Amenities like Nursery/ Primary/ Higher Secondary School, Club / Community Centres, Dispensary, Creche, Religious Buildings, Health Centres, Police Posts. Electric Sub-Station, Dwelling Units for Economically Weak Sections/ Services personnel.

c) Roof / top terrace above apartments excluding exclusive terraces allotted to apartments/ Penthouses.

d) Covered / Open Car Parking Area within / around Buildings for allottees / visitors of the project.

What is carpet area?

There are many definitions, however Let me explain in simple terms. It is the area under the roof of your appartment which can be exclusively used by the buyer. In other words built up / appartment area minus the walls. Some also exclude balconies from built up, but for all practical purposes, I consider the above simple definition.

What we pay for?

All buyers pay for super area but exclusively use appartment / built up area. In other words we pay for “Loading” or common areas as well.

What is the standard?

There is no standard or norm for “loading” % in RE. All that depends on the architecture, size of the project, amenities and density of the project. The common “Loading” % is usually seen between 25-28% of Super Area, which means we pay BSP for so much of non exclusive space. However many projects have loading beyond 35%.

Conclusion

Hope with the above terms explain what we actually pay for and what we actually get to live-in finally. A decision to buy a property must be based on the appartment to super area ratio. Don’t think you pay for eg Rs 4500/ sft as BSP, but you may actually pay 6250 for the appartment / built up area in which you are going to live-in or which you can call your exclusive home.

Also decision not just be based on loading % alone. One must also take into account the density of the project. Density means in simple terms, no of dwellings per acre of land, while there may be many other words such as FAR etc used.

A project may have lesser loading but of high density. For eg Bestech Ananda in sec 81 has the lowest / best loading number -25% but the project is high density 720 units in 13 acres i.e, 56 units per acre. As the no of units go up within acre the loading comes down. Any project with above 45 units per acre can be considered as high density. In high density projects the no of dwellings per acre and no of human beings living per acre would be high. In laymen terms, comparing south delhi to chandini chowk, not in literal terms, but used the example to make one understand.

Hope the above explanations help people decide logically what they are actually buying.

PS: I would like to thank Mr. Krishna of IREF for this post.