Home sales in India may be on the rebound, with real estate firms launching new projects to tap a revival in housing demand, but Ajay Jain remains an angry customer of DLF Ltd, the country’s largest property developer by sales.
Singapore-based Jain, 49, who signed up in August 2006 for a four-bedroom apartment in DLF’s Belaire project in Gurgaon, a satellite town south-east of New Delhi, is upset that he has paid the developer at least 85% of the cost of the flat—Rs2.4 crore—but only half the work has been completed so far at the site.
At the time of booking, Jain said, he was told that the project would be completed in three years—by August 2009. After paying two-three instalments, DLF gave Jain the buyer agreement in February 2007, which said that possession would be given within three years of signing the agreement.
More : livemint.com
Delhi Metro acquired excess land: CAG
Delhi Metro has been rapped by the Comptroller and Auditor General of India (CAG) for acquiring excess land for implementing the Phase-I of the ambitious new age transport system.
In nine locations, it was observed that total land acquired was 642,000 square metre, which was in excess of the project requirement by 14 to 354 per cent, the CAG said in its report on the Phase-I of the DMRC.
It added the DMRC has acquired 3.22 million square metre of land for the Phase-I of the project, under which three lines were constructed, but has not maintained location wise data of land used for the project and property development.
More : business-standard.com
Endless demands of tenants
They are very demanding. They can give run for money to their landlords. The demanding tribe of tenants is growing manifold. Welcome to the world of new breed of tenants. Actually they have emerged in the capital over the years. This fast growing tribe is extremely demanding. They expect everything from their landlord at the cost of paying almost nothing. The situation has come to such a stage when many landlords are thinking on the lines of not giving their flats or floors or flats on rent at all. As recently as a few years ago a floor of 500 sq. yard house in areas like Chankaypuri, Hauz Khas,Vasant Vihar, Panchsheel Park of the capital used to fetch up to Rs 1.50 thousand per month. Agreed, those were the days when property market of the capital was its peak.
Things, however, have changed over the last couple of years. The emergences of DLF and to some extent Noida have hit the real estate market of elite areas of the capital. The current situation is that finding a tenant who can pay more than Rs 75 thousand for the 500 sq. yard floor or flat is almost unthinkable.
But, the breed of prospective tenants have others ideas. They are asking for such type of floors or flats for from Rs 45 to 60 thousand only. Almost 70 per cent less than the rates of peak days. Mrs Madhuri Jain, who owns an 800 sq. yard house in Shanti Nikaten, says that she meets number of people in order to give one floor to them on rent. Almost all of them are very unfair in their thinking. Given a chance they wouldn”’t mind living in somebody’s house without spending even a single penny. Agreed, Mrs. Jain says, that there is a slump in the property market and many new options have come up for both buyers and tenants, but that doesn’t mean that prospective tenant offer unrealistic price to their landlord.
More : mynews.in
DLF in talks to sell wind energy business
Two Euporean companies, including the world’s secondlargest energy utility, are in advanced discussions with DLF to buy the property developer’s
wind energy business, a person familiar with the development said.
Gaz de France (GDF) Suez, which has a market capitalisation of $80 billion, and renewable energy group Akuo Energy have completed due diligence and a final decision on pricing will be taken by the end of this month, the source added.
While the size of the deal is not known, DLF hopes to raise at least Rs 900 crore from the transaction which is being advised by Ernst & Young. A DLF representative told ET NOW that several bids have been received, but declined to disclose the identity of prospective buyers. Akuo Energy and GDF Suez did not reply to emails.
More : economictimes.indiatimes.com
Budget housing to leave little room for profit margins
The real estate sector, which has been languishing for some time, appears to have found its feet with focus on affordable housing and this may reflect in the June quarter results of the companies. The move has led to higher sales for many companies, but on the flip side, it has also impacted the margins negatively. The reason being that the mid-segment housing is a high volume, low margin business.
The June quarter results, therefore, may be a tad better on a quarter-on-quarter basis. But much lower than those reported in the corresponding period of the previous year. The average of estimates of ET Intelligence Group and eight brokerage houses shows that the overall industry sales are expected to decline 30% on a year-onyear (YoY) basis. On a quarter-on-quarter (QoQ) basis, industry sales would grow at an average 30%.
It may also be understood that only the residential market has seen a recovery, while the commercial and retail segments are still under stress.
More : economictimes.indiatimes.com
Hiranandani co buys land worth Rs 800 cr
Hiranandani Upscale, a fully-owned company of Mumbai-based developer Hiranandani Group, is learnt to have bought 135 acres in Bangalore, Chennai and Hyderabad for Rs 800 crore.
According to a person involved in the transaction, the agreement had been signed last month between Hiranandani Upscale and three individual sellers in these cities. The three land parcels comprise 80 acres in Bangalore, 35 acres in Chennai and 20 acres in Hyderabad, said the person. Hiranandani Upscale plans to develop townships in these cities at a later date.
The sale of these land parcels have been on an outright basis and Hiranandani Upscale would make the payment in three tranches. It is believed that the company has paid an initial amount (token money). When queried on the deals, Surendra Hiranandani, managing director, Hiranandani Group and Hiranandani Upscale confirmed to ET the companys plans to start new projects in South India but refused to share exact details about the deals.
More : economictimes.indiatimes.com
Cheap housing offers lifeline to Indian developers
No frills, Simple homes reads the banner hanging in the Delhi headquarters of Unitech, Indias leading property developer.
Its a mantra that has been taken up by realtors across the country with a new-found passion for affordable housing that owes little to their social conscience and everything to their bottom line.
The global economic downturn ended a four-year property boom in India that had largely been driven by the luxury housing segment and saw a near three-fold increase in residential prices in major cities.
Now developers are turning their attention to middle and lower income buyers and low-cost housing that offers lower profit margins but enjoys much greater demand.
More : google.com
Indiabulls Securities recommends to buy Unitech
Indiabulls Securities Research has recommended a buy rating on Unitech in its July 01 report. Unitech Limited operates as a real estate development company in India and internationally. Its real estate projects include residential complexes, golf course communities, integrated townships, amusement parks, commercial offices, IT parks, and
retail malls
Indiabulls report says, Unitechs stock is currently trading at a 19.8 percent discount to our Net Asset Value (NAV) of Rs.103. We believe that the stock has a long-term upside potential, primarily due to the increasing residential sales volume coupled with the company’s comfortable liquidity position. Hence, we recommend buy rating on Unitech.
The company performed very badly in Q4′09 due to stringent market condition and marginal sales booked during the period. Net sales of the company went down 66.8 percent year over year (YOY) and 21.2 percent quarter to quarter (QOQ) to Rs.385.6 crore. In the financial year ended March 31, 2009, the net sales of the company were Rs.2889.74 crore against Rs.4140.4 crore in previous fiscal.
More : siliconindia.com
DLF Sells 2,500 Apartments in First Quarter Ended June
DLF Ltd., India’s largest property developer by sales, said Tuesday it sold 2,500 housing units in the first quarter ended June 30 as residential demand rose between 15% and 20% during April and May.
Sales in April and May were exceedingly good in Delhi, Gurgaon, Bangalore and Hyderabad cities,” DLF’s group executive director, Rajeev Talwar, said at an industry conference.
Demand also picked up in Chennai and the southern state of Kerala, he said.
Increased borrowing costs and high property prices in a slowing Indian economy reduced demand for residential apartments, shopping malls and cineplexes last year.
More : online.wsj.com
The Leela Kempinski Hotel and Residences opens in Gurgaon, Delhi
The Leela Palaces, Hotels and Resorts has announced the launch of its first property in northern India — The Leela Kempinski Hotel and Residences — in the business district of Gurgaon, Delhi (NCR). The property is located within 15 minutes drive from the Indira Gandhi International Airport and is on the Delhi-Gurgaon border. The hotel offers 322 luxuriously appointed guestrooms and suites and 90 Residences in configuration of one, two and three bedroom options.
The Leela Kempinski, Gurgaon is the first property among the upcoming properties of The Leela Palaces, Hotels and Resorts in north India and is the first managed property of the group. The rooms feature modern amenities and facilities including Wi-Fi internet connectivity, Internet Protocol phones, LCD Television with Blue Ray Player, Bose iPod Dock, electronic safes and ergonomic mattresses. Two exclusive floors of The Royal Club will offer guests personalised and complimentary services with added Royal Club Lounge facilities.
Among dining alternatives is a unique 225 capacity restaurant with live kitchens, Spectra; an elegantly designed 112 capacity Indian restaurant Diya; 76 seating capacity Italian restaurant, Zanotta and an eclectic bar. Apart from this, the hotel has a Business Club offering membership by invitation only. Located at the upper lobby level the Club’s plush interiors offer a relaxed ambience for unwinding. The hotel offers the largest banqueting facilities in the region with over 27000 sq ft of function space including pillar-less ballrooms, board rooms and meeting rooms with state-of-the-art equipment. In addition, a full service Business Centre is offered to guest for their business needs.
More : hospitalitybizindia.com
Centre seeks details of CBI probe on former CJI
For the first time, the government has asked the Central Bureau of Investigation (CBI) to provide details on the status of its probe into the serious allegations of corruption against former Chief Justice of India (CJI) Y.K. Sabharwal.
The government move comes ahead of its expected reply in the Rajya Sabha on Monday, where Law Minister M. Veerappa Moily is ikely inform the House on the outcome of the complaints forwarded to his ministry by the Central Vigilance Commission (CVC).
The CVC, acting on a set of complaints filed by Supreme Court lawyer Prashant Bhushan, after it found merit in his complaints supported by documentary evidence, had last year forwarded it to the CBI and the Department of Justice for necessary action.
More : hindustantimes.com
Analysts say smaller property markets will take longer to revive
As sales of residential properties start to pick up in the metros and other large cities, smaller cities such as Pune, Nagpur, Jaipur and Mysore are far from showing any signs of recovery.
Analysts say the smaller markets, where real estate prices have crashed 30-40% since mid-2008, will need another eight-nine months for demand to start reviving.
Between 2005 and 2007, a period that saw a surge in India’s realty market, firms such as Sobha Developers Ltd, Brigade Enterprises Ltd, Omaxe Ltd and Parsvnath Developers Ltd entered smaller, tier II property markets to cash in on cheap and easily available land. Millions of sq. ft of developed area remains unsold.
More : livemint.com
DLF raises Rs 1,000 cr through land sales
DLF has raised around Rs 1,000 crore through sale of land parcels across four cities in the past 4-5 weeks and is on course to close more such deals
worth another Rs 500 crore in the coming weeks, two company executives said.
This is in keeping with the country’s largest real estate developer’s announced objective of raising Rs 5,500 crore through asset sale and use these funds to halve its Rs 14,000 crore debt by the end of this fiscal.
DLF has sold off land parcels in Mumbai, Baroda, Gangtok and NCR. The plots in Prabhadevi, Mumbai and Baroda were not marked for any specific purpose, as the company hadn’t paid government fees and obtained licences for any specific use. DLF has sold a hotel project in Delhi and another in Gangtok.
More : economictimes.indiatimes.com
Government proposes property rights for slum dwellers
To empower the urban poor, the United Progressive Alliance government is initiating steps to give them property entitlements.
We will develop a model legal framework for consideration by the states and Union territories for according property rights to slum dwellers, Union housing and urban poverty alleviation minister Selja said here today.
Selja was announcing a 100-day plan of action for her ministry. There are about 81 million urban poor, or slum dwellers, in the country as per an estimate made in 2004-05.
More : dnaindia.com
Office, retail space is hot property
Some six months after they fled the real estate sector, investors are gradually making their way back. This time around, high networth individuals (HNIs) and domestic funds are putting money mainly into office and retail spaces.
As the economic meltdown unfolded in late 2008, commercial realty became the worst hit segment in the sector and lease rental and property rates fell by 30-40% in the metros and the bigger cities. The lower prices, in turn, have triggered some big ticket sales in recent months.
Big catch: The DLF tower in Gurgaon. The cash-strapped realty firm sold its 66% stake in a private mill property in central Mumbai to an undisclosed Chennai-based investor for Rs310 crore in May. Ramesh Pathania / Mint
In May, Unitech Ltd, India’s second biggest listed developer, sold a 200,000 sq. ft office property in Saket, New Delhi, to an investor for Rs450 crore, nearly Rs200 crore cheaper than in 2007-08. Unitech didn’t disclose the identity of the buyer.
More : livemint.com
Private disputes over national property
The most significant aspect of the recent Bombay High Court ruling on the sharing of gas from the KG basin between RIL and Reliance Natural
Resources Ltd (RNRL) is that the judges completely refrained from making any value judgement on the government’s formal claim before the court that the Appellant and Respondent cannot settle between themselves how gas, which is a national asset, to be utilised for the welfare of the nation, is to be distributed
The high court merely examined the legal validity of the memorandum of understanding (MoU) between Mukesh Ambani and Anil Ambani on how gas from the KG basin is to be shared between RIL and RNRL as per the family settlement. It could be argued that the court’s mandate was limited to examining the MoU arising from the family settlement after the group assets were allocated to the two brothers under their mother’s guidance.
However, common sense would tell anyone that the bigger question which perhaps the court deliberately did not go into was one of whether a national and sovereign resource can be a subject of a commercial agreement between two private parties.
More : economictimes.indiatimes.com
Cyclone damages property in Dwarka, Okha
The Dwarka-Okha coast of Jamnagar district reeled under cyclone fury on Thursday with strong winds uprooting trees and temporary structures and damaging houses and shops.
At least 38 villages were under darkness as electric wires were snapped due to uprooting of electric poles. After causing havoc in the port town of Veraval, the depression in the Arabian Sea showed its fury in the temple town of Dwarka and nearby villages on Thursday.
Three houses crashed in Dwarka in the afternoon. The roofs and tiles were blown away. As the depression lay 70 km from Dwarka, authorities sounded alert in 16 villages in Okha-Dwarka belt of the possibility of strong winds.
More : timesofindia.indiatimes.com
Huge rush to avail property tax rebate
With the deadline for filing property tax returns (PTR) only a day away, property owners eager to avail the early payment rebate of 15% queued up from 9am various MCD tax collection centres in the city. Despite the option of filing returns online, many still opted to submit the PTR forms manually. Some said they found the online procedure slow.
At the Lajpat Nagar centre, the queue was particularly long. Said Kavita Sharma, a resident of Sarita Vihar, I don’t have much faith on online transactions. We get a receipt immediately this way.
Another taxpayer, K P Singh, added,"The online servers are not working properly and filing online is more expensive since we have to pay an additional Rs 50. I’m paying my taxes now because I did not find the time earlier.'’ Some also said that despite filing their returns last year, the payment hadn’t been updated online and still showed as arrears."I filed my returns by going to the centre. But this year, when I tried to pay it online, it showed as arrears. Why should I pay the tax twice?'’ asked a tax payer who did not want to be named.
More : timesofindia.indiatimes.com
RICS releases wish-list
The Royal Institution of Chartered Surveyors hopes the Finance Ministry will consider hiking the housing loan interest deduction limit and bringing down home loan interest rates in the coming Budget.
A press release from RICS quoting its Managing Director and Country Head, Mr Sachin Sandhir, says RICS believes that the Ministry of Finance will consider the proposals submitted by the Housing Ministry and increase the housing loan interest deduction limit to Rs 2.5 lakh or Rs 3 lakh a year along with lowering interest rates to 7.5 per cent for loans in the range of Rs 5 lakh to Rs 30 lakh.
Given the President of India’s ambition of making India slum free in five years, it would be imperative to provide fiscal concessions for building low-cost houses.
More : thehindubusinessline.com
Delhi cops land in Azamgarh on IM mens assets trail
A Delhi Police Crime Branch team today arrived in Azamgarh for the verification of the two alleged Indian Mujahideen (IM) operatives — Ariz Khan alias Junaid (23) and Shahzad Ahmed (20) — before initiating the procedure for the attachment of their properties.
The police team led by an inspector visited the property registrar office and city tehsil office in Azamgarh to verify the details of the assets related to the addresses of the two accused. They would be staying in Azamgarh till Wednesday evening.
The team had procured the property attachment order against Ariz and Shahzad from the Additional Chief Metropolitan (ACM) court, Delhi, on April 20.
But, the procedure could not be initiated as Ariz’s aunt Anjum Sahar and Shahzad’s grandfather Niyaz Ahmed had moved separate applications before the same court on April 25 challenging the proceedings of the property attachment. They had said that the named accused do not own the properties on the addresses mentioned in the order.
More : indianexpress.com