For the past few years, the desire among millions of middle-class Indians to own a home remained just a pipe-dream as soaring prices and builders keenness to focus on exclusive gated communities shut them out of the market.
But that could be about to change. More middle-class Indians can hope to get a step on the housing ladder in 2009 as bank loans become cheaper and desperate builders, chastened by last years property market slump, cut prices to move unsold stock and build cheaper homes.
The past few years have seen houses become just another financial asset, as punters and wealthy investors, buoyed by surging stock market earnings, trooped into the property market in the blind faith that the only direction to house prices was up. Their faith was rewarded, and house prices were driven up to surreal levels. Builders were only happy to play along, and many of them focused on high-margin exclusive developments, almost oblivious to the fact that such properties were beyond the reach of the vast majority of Indias 300-million middle class.
More : economictimes.indiatimes.com
The Claridges, Surajkund, Delhi to unveil in March 2009
The Claridges Hotels and Resorts is set to soft launch The Claridges, Surajkund, Delhi, NCR.- a luxury five-star property in the National Capital Region of Delhi, in March 2009. Scheduled to open in two phases the hotel offers 204 rooms and suites and 40 serviced residences. In the first phase the hotel will open with 150 rooms, 18,000 sq ft of banquet area, an all day dining bar and an art lounge. The business and conference facilities will include a ball room with pre-function area, three meeting rooms, a board room, an auditorium with theatre-quality audio-visual equipments and a business centre.
The second phase of the hotel will unveil 55 rooms and 40 serviced residences, two specialty restaurants and a spa, salon and health club spread over an area of 15,500 sq ft, one of the largest in India. Peter J. Leitgeb, President & CEO, The Claridges Hotels & Resorts says, The opening of a world class business and leisure hotel is an important addition to our portfolio and we aim to make it a landmark destination on the lines of our flagship hotel, The Claridges, New Delhi.
Source : hospitalitybizindia.com
Cops smell scam in DDA house allotment
Just two weeks ago, 5000 new DDA flats were allotted to the chosen applicants by a computerised lottery. There were more than a 100 applicants for each flat.
But now the concern is - Has Delhi been scammed out of affordable housing?
Now, the Delhi Police is investigating whether property dealers faked papers to apply under the Scheduled Caste and Scheduled Tribe category, as 1000 flats were reserved for SC and ST applicants.
And now there are allegations that these flats ended up with property dealers who are ready to sell them. The flats in some of Delhi’s most-wanted colonies like Dwarka and Vasant Kunj are sold by the DDA at just 50 per cent of their market value, so anybody who sells them makes a huge profit.
Source : ndtv.com
DDA applicants allege lack of transparency
The Delhi Development Authority is allotting 5,000 flats through a computer lottery on Tuesday. And Delhi is waiting with baited breath.
The process, which began at 12 noon, saw hundreds of applicants protesting and shouting slogans outside the DDA’s office at Vikas Sadan.
The applicants say they were told that the draw would be shown live to them on a screen to ensure transparency. But the applicants are not being allowed inside the building. Instead, they’ve been asked to check the result at 3 pm on the DDA website.
The 5,000 DDA flats range from Rs 7 to 77 lakhs. They’ve been built in some of Delhi’s most-wanted colonies like Dwarka, Rohini and Vasant Kunj.
More : ndtv.com
Another brick in the wall, a difficult bet for realty
On a high since 2005, the Indian property market discovered in 2008 what a descent is like, with demand, particularly for housing, falling by up to 50% that triggered 15-20% decline in prices.
High interest rates regime and economic slowdown, coupled with the ripple effect of the US subprime crisis cooled off the overheated realty sector to some extent, forcing developers to adopt cost-cutting measures, such as deferment of projects, salary cuts and layoff of employees.
Developers, big or small, faced huge liquidity crunch as both end-users and investors shied away from the market. The sectors woes got further accentuated from the kind of battering it received at the stock market, with its share price falling like ninepins.
More : livemint.com
Sunil Jain Mr 20 per cent
Reports suggest the GMR Group-owned Delhi International Airport Limited (DIAL) is badly strapped for cash as it isnt finding too many takers for the 250 acres of land it can develop commercially as part of the Delhi airport modernisation project. While this is a serious problem for DIAL and its completion targets, more serious from the point of view of probity is that this will slash Airport Authority of Indias (AAI) share of revenues. Depending on how real estate recovers, the cut varies from 20-25 per cent.
GMR won the bid for by promising to share 46 per cent of the airports top-line revenue with AAI — this included revenues from the airport operations as well as from the real estate. Last year, DIAL asked bidders for up-front deposits equal to six years of the average rentals during the 58-year lease (average rentals, not just rentals in the first six years). Based on a complex formula (see table), this meant DIAL hoped to get deposits of Rs 70 crore per acre — since the sub-lease was for 58 years, these values were significantly higher than the normal rental-deposits got for most land deals.
DIAL argued that these interest-free deposits were not revenue and so didnt need to be shared. This is incorrect since the deposits are being taken in lieu of rent; the higher the deposit, the lower the rent, and the greater AAIs loss. If a person gives a deposit of Rs 100 crore, and interest rates are 10 per cent, this deposit costs Rs 10 crore a year, so the annual rental will be cut by this amount.
More : business-standard.com
3-BHK in Alaknanda
Praveen K Singh and Ritu Sharma: Delhi
For residential use, one can get a 3-BHK flat at Alaknanda at this price. But, the amount is not sufficient for other areas in south Delhi for 3-BHK. The other places like East of Kailash, Kailash Colony, Green Park, Hauz Kash and Shivalik will offer 2-BHK normally.
In older constructions in Greater Kailash-I, one can get a 2-BHK flat at a rent of Rs.30,000 to Rs.35,000, describes Dinesh Ralli, who runs his property consultancy firm in the name of Ralli Property Agency. In South Extension part –II, 3-BHK flats can be rented at this budget. If one goes in inside colonies like Gautam Nagar and Priyadarshani Vihar, he can get even the entire floor at this rent.
According to Ralli, North Delhi offers much bigger flats in this budget. Builder floors of four-five rooms with impressive finishing can be rented at this rent, he informed.
More : indianexpress.com
Khyber Group aims to create banqueting destination
Mumbai-based Khyber Group has added a new brand into its portfolio. The company, which owned a discotheque in the Northern suburbs of Mumbai has recently converted the property into a banqueting space with an aim to scale up its banqueting business. The company has rebranded the property as Serai and aims to expand it to cater to the wedding and the corporate catering segment.
Speaking about the development, Sudheer Bahl, Owner, Khyber Group said, While Khyber, our flagship brand is recognised for North West Frontier cuisine, we wanted to offer different cuisines through our banquet. Thus, we developed a more generic brand called Serai. The property has the capacity to accommodate about 2000 sq. ft. of banqueting space. Bahl said that the group aims to create a banqueting destination across corporate and wedding events. It also houses a 4000 sq. ft. basement for all storage and central kitchen facilities. The development of an integrated central kitchen marks the Groups foray into the outdoor catering business. While the company owned the property and earlier operated a restaurant outlet under its Khyber brand, it has also undergone renovation to be adapted to the Serai brand. It has invested about Rs 1.7 crore for the development of the facility. In order to expand its banqueting presence in Mumbai and to nearby cities, the company is also open to adopt banqueting spaces on management contracts.
The Group is also in the process of expanding its restaurant brand Khyber. The company has its flagship property in Mumbai and is strongly considering introducing the brand in Delhi, Bangalore and Hyderabad. For the expansion, it is considering opportunities of alliances and Joint Ventures. While the company is currently focussing on developing its first facility of Serai, Bahl states that it will develop the restaurant brand only after six months. The company is also mulling over new restaurant and cuisine formats. Though Bahl didnt divulge more details about the concepts, the Group will focus on its development by mid-2009.
Source : travelbizmonitor.com
Closer to real prices
While interest rates and property prices are down quite a bit, things could be better in another six months.
In the last six months, things have changed for the better for the home buyer. Most of the cities are witnessing a sharp drop in prices, almost back to where they stood in December 2006. While most developers and brokers are unwilling to admit this, sit across the table to negotiate and you just might be surprised.
Besides property rates, interest rates have also been coming down, slowly but steadily. The recent move by all the 26 public sector banks (PSBs) to provide a concessional rate for housing loans up to Rs 20 lakh should also point towards the fact that interest rates are on a southward journey.
More : business-standard.com
DDA flat owners out to make profit
It was a lottery that had Delhi holding its breath, as there were 5000 DDA flats in prime locations at 50 per cent less than the market rate.
However, just 48 hours after that lottery ended, many of those who won houses are ready to sell to brokers.
Effectively, that means a scheme meant to provide affordable housing is being misused. The DDA says re-sale is not illegal, but warns that in the future, it may introduce what it calls a lock-in period so that owners would not be able to sell their flats for a fixed period of time.
In few months, the owners will get the keys to the new flats. But many of them are not planning to hold onto it very long.
More : ndtv.com
Centre yet to sell off Dawood’s properties
The Centre is repeatedly asking Pakistan to extradite don Dawood Ibrahim. But it is doing precious little to dispose of his 24 properties in Mumbai seized by it.
Take the case of Mehzabeen Manzil, the multi-storeyed building at Pakmodia Street, Bhendi Bazar, where Dawood lived with his parents till the mid-80s when he fled to Dubai.
The building was attached by the income tax department and put up for auction a few years ago. But the fear of the gangster was so huge that there were no bidders. The building has collapsed due to non-maintenance and a vacant plot stares at visitors.
More : timesofindia.indiatimes.com
DDA housing flat results to come today
The Delhi Development Authority has prepared itself to allot 5010 flats through a computerized lottery system on Tuesday. A total of 5.67 lakh applicants have applied for the flats in areas like Vasant Kunj, Rohini, Dilshad Garden, Paschim Vihar, Motia Khan, Dwarka and Pitampura. The flats being allotted includes 352 three-bedroom units, 889 two-bedroom ones, 3,231 one bedroom flats and 236 expandable flats. These flats would cost between Rs 7.2 lakh and Rs 77 lakh. About 60 per cent of flats are newly constructed while other were surrendered by defaulters or vacated by the government.
DDA has invited senior bureaucrats, professors from IITs and experts from the media as jurists to ensure transparency in the allotment system and avoid any controversy. It is the 43rd housing scheme by DDA to offer flats through the lottery system at very low prices as compared to the prevailing market prices. First housing scheme was launched by DDA in 1968. It had allotted 371,215 flats by the 42nd house allotment scheme in 2007.
Director, PRO of Delhi Development Authority, Neemo Dhar said, Its 100 per cent transparent. The draw is totally computerized; all the application numbers and flat numbers have been fed and both the lists would be randomized by the computer. The cut off will be drawn by the judges and the computer will declare all the results.
The list of winners is expected to come by 3 pm onward on the official website of DDA.
Source : topnews.in
Another mega DDA scheme to offer 14,000 flats
If you fail to find your name in Tuesdays draw for allotment of 5,010 flats under the mega DDA scheme, dont lose heart. The housing agency is readying an even bigger project which will put a whopping 14,000 flats on offer across the city.
Having finally woken up to the acute housing shortage in the capital, DDA is in the process of constructing flats for all three income groups - high, middle and low - in places like Vasant Kunj, Dwarka, Rohini, Jasola, Narela and Pitampura.
Sources said the upcoming DDA project will deliver around 3,150 flats for the high-income group, around 770 for middle-income group, 8,000 for low-income and 2,000 for economically weaker sections.
More : timesofindia.indiatimes.com
DDA’s dream home draw results to be out today
The fate of 5.67 lakh applicants, all hoping to win the opportunity to own a DDA flat, will be decided on Tuesday. The draw of lots for the 5,010 flats up for grabs will be held at noon.
In an attempt at transparency, the computerised random draw of lots will be carried out before a jury comprising senior bureaucrats, professors from IIT and experts from the media. The results will be available on the DDA website from 3 pm onwards and the results will also be published in some newspapers.
In a mad rush to own a home, the DDA offer of 5010 flats had attracted over 7.5 lakh buyers of application forms. About 5.67 lakh forms came back to DDA at the final count. Further, not too many forms were rejected after scrutiny.
More : timesofindia.indiatimes.com
DLF, Unitech ask flat buyers to pay more
Buyers who bought apartments in Gurgaon and Greater Noida from DLF Ltd and Unitech Ltd are complaining that the builders have increased maintenance charges, sought advance payment of such charges, and increased the so-called super built-up area of their flat resulting in an escalation of costs.
At least three projects around capital New Delhi—DLF Pinnacle, Unitech Horizon and Unitech The World Spa—have seen changes in charges and terms from what was originally stated in the buyers contract, buyers say.
DLF and Unitech say they are within terms of the agreements with buyers and such changes are not unusual.
More : livemint.com
Now, drive into your dream home on free car
They say, desperate times call for desperate measures. Youve probably heard of realtors in Dubai, Spain, UK and US offering freebies like cars, mortgage perks, holidays and even cash backs to tide over the worsening realty slump.
Developers in Mumbai and Delhi have also taken to luring property buyers by offering free BMWs, Mercedes Benz, foreign getaways and even a flat on a bulk purchase of flats!
Now, the freebie bug is slowly, but surely biting the Amdavadi realtor as well. Even as some realtors in the city offer discounts to bring buyers back to their doorsteps, in a jaw-dropping offer, Ahmedabad-based Pacifica group is throwing in a car worth Rs 4.5 lakh with the purchase of a 3BHK apartment pegged at Rs 50 lakh.
More : timesofindia.indiatimes.com
LUXURY CRUNCH
A-class amenities, top-end luxury definitions, enticing locales, they have it all, but the million dollar question is — do the luxurious residential projects also flaunt a recession proof jacket, or are they also encountering the wait-and-watch attitude of prospective customers.
Recession woes At a time when the real estate sector is facing one of its worst lowdowns, it is not surprising that the luxury segment is facing tough times ahead. Once selling like hot cakes, luxury projects in the Delhi-NCR region are either being forced to cut prices or offer other discounts.
Says Pradeep Mishra, broker with Sainik Estates, Projects by the Jaypee Group in Noida and Greater Noida are now being sold at Rs 3,300 per square foot as opposed to Rs 5,500 to Rs 6,500 just a few months back. The focus of developers is more to standard apartments for instance 2-BHK. Projects in Faridabad, Noida and Greater Noida that were earlier meant to focus on the luxury segment are now being made to cater to standard needs. Gurgaon, a traditional favourite of high-end apartments, has such no new such projects coming up.
More : expressestates.in
UKs Avanta unveils serviced offices
Avanta, one of the leading providers of serviced office space in the UK, has entered India. The firms Indian subsidiary, Avanta India, launched its facilities in Delhi and Mumbai.
Looking at the current global slowdown as well as the recent events in Mumbai, the serviced office option provides sceptical corporates with immediate occupation of top quality offices for minimal upfront-cash requirements and total flexibility in terms of length of stay, Sean Morgan, managing director, Avanta India, told ET.
He said that Avanta, which was founded in London in January 2004 by a team of executives, will rapidly set a benchmark in this category of business in India.
More : economictimes.indiatimes.com
US to provide $250,000 for IPR protection training
The US will provide $250,000 dollars to India for training in protection of intellectual property rights and building IPR criminal enforcement capacity with a focus on the Delhi and Bangalore High Courts. With a view to enhancing efforts to combat transnational crime, promote the rule of law and the protection of IPR worldwide, the US State Department has approved nine new projects totalling three million dollars in anticrime funds, including one in India.
The projects will enable US law enforcement agencies and diplomatic missions to collaborate in the delivery of international enforcement training and technical assistance programmes on intellectual property rights protection. Training assistance to Indi a for $250,000 to build the IPR criminal enforcement capacity of India, with a focus on the New Delhi and Bangalore High Courts has been allocated, the office of the State Department spokesman said in a statement.
Training and technical assistance in the investigation and prosecution of intellectual property crime will be provided to foreign law enforcement partners in nations across the Pacific Rim, Latin America, Eastern Europe and Africa. – PTI
Source : thehindubusinessline.com
Property Prices Drop 10 Per Cent in Kerala
Indias real estate sector, which is undergoing a correction, is poised to witness further decline as the global economic crisis hits confidence of homebuyers, brokers and developers said.
Prices across metropolitan cities have already dropped 15 to 20 per cent. We could see further price correction in most big cities, they said while talking to Khaleej Times at the Kerala Builders Forum Exhibition which is under way at Al Boom Village, Dubai.
M C Sunny, chairman and managing director of Mumbai-based National Builders, said property prices In Mumbai and other metropolitan cities had dropped by 10 to 15 per cent. In Kerala, however, the drop so far has been 10 per cent as the market is not speculative but end-user driven.
More : khaleejtimes.com