ICCPL PROPERTY NEWS

Signature Global Launches Andour Heights

Move Up To the Next Level of Value Housing

Gurgaon: Signature Global, one of the successfully establishing real estate developers of Delhi/NCR, presents it’s yet another value based housing project in the heart of Gurgaon. After a grand accomplishment of “Solera and Synera” the projects by ‘Signature Global’ now they have come up with another affordable housing project ‘Andour Heights’ located at Sector 71, NH-8 Gurgaon.

Understanding the value of ‘homes for all’; the project will be for middle class segment which now a day is a rare sight in Gurgaon with property prices soaring. The company feels that developing value based housing project in the heart of city like Gurgaon is a courageous approach to remain in the realty market, but also creates the perfect blend of trustworthiness and accountability. Andour Heights is located in Sector 71, which is one of the New Gurgaon’s prime locations.

Signature Global’s Andour Heights is a truly unmatched residential opportunity. Being developed in conjunction with the government of Haryana, this residential complex will give a new meaning to the term ‘Value Based Housing’. The apartments will be allotted by a draw of lots – making sure that as soon as they are launched, the value of the property, including the retail centre, shoots up tremendously; the company is planning to offer 1 & 2 BHK apartments with features like zero maintenance for 5 years as per HUDA affordable policy, provision for power and water back up, Community Hall and Creche in the society, exclusive children and creche area, picturesque landscaping, state of art contemporary construction & architecture and well ventilated apartments with abundant natural light.

The USP apart from being an affordable project in the region of Gurgaon; the project is strategically located with Delhi being 25 mins away, 15 mins from Toll Plaza 2 mins from NH 8 and 26 mins from IGI Airport. The project is spread over 6 acres with 980 units in offer for public with varied sizes starting from carpet area of 325 sq. ft. onwards plus balcony(ies) for 1BHK & 514 sq.ft. plus balcony(ies) onwards for 2 BHK. The flats will be available at a cost starting from Rs. 13.37 lakhs onwards for 1BHK & Rs. 20.99 lakhs onwards for 2BHK per flat depending upon the category of flat applied by the customer, and the project will be offered for possession within 4 years.

Mr. Pradeep Aggarwal, Chairman, Signature Global says, “We have come out with yet another project in Gurgaon as we received tremendous response from our previous two projects. Today, demand is shifting more towards value based housing projects than any other segment as customers wish to fulfill their dreams of owning a home rather than staying on rent. We are very proud that we kept our promise of fulfilling customer’s expectations and demands in such an expensive market to provide value based housing solutions for home seekers. We consistently aspire to give value based offerings to our customers and our third project is in the same league. We are confident that “Andour Heights” will also be a grand success in this segment. Our primary aim is to provide quality homes at value to money prices and we are sure to achieve the success for the hard work and efforts that we have put in”.

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ICCPL PROPERTY NEWS

FREE WIFI ACROSS EXPRESSWAY TO BOOST DEMAND

Noida authority has come out with a great news for the daily commuters of Noida expressway. The authority recently announced that commuters along the Noida – Greater Noida expressway will soon be able to enjoy free Wi – Fi connectivity. The authority is planning to set up several wifi spots on the expressway by March 15, 2015.

The Authority officials have said that the infrastructure installed for the Intelligent Traffic Management System will be used to roll out the public Wi-Fi on the 23.6km stretch. Wi-Fi access will be provided on the long stretch starting from the expressway entry near Mahamaya flyover, Amity Crossing and Pari Chowk. They said the rollout would be part of a pilot project, and if successful, it will be extended to other locations across Noida as well. Mr. Deepak Kapoor, Director, Gulshan Homz says “This will be one of the major infrastructural breakthroughs in the region. Wifi connectivity in a region is a rare sight in our country and we are very glad that authorities are diligently working for the infrastructure of this region”. Officials also stated that 60,000 metres of optical fibre cable has already been laid out for the ITMS along the Noida-Greater Noida expressway.

It is being witnessed that regions and countries that offer free wifi have a better tourist footfall than others. One of the primary reasons for implementing the free wifi facility in the region is to allow the tourists commuting to Agra via the expressway to stay connected with internet. As tourism and footfall in a region increases, chances of site visits also goes higher. As a result, sales can be generated in higher numbers than usual. Mr. Mahipal Singh Raghav, CMD, MMR Group says “Somewhere it is true that there exists a direct relation between tourism and sales for real estate. As tourism in a region grows, chances of footfalls or site visits also increases and thus, better leads are generated. With this move of Noida authority, we are pretty sure that demand for real estate in the region will grow well”.

This idea was proposed way back in 2006 as well but could not be taken further but now the authority has finalized it for March this year. 3G cables already exist on the route and 4G cables are being laid down in the region as well. Any form of work for the infrastructure in the region takes the demand forward and IT work is very well understood and appreciated by the public as well. Mr. Prithvi Raj Kasana, MD, Morpheus Group says “The work of the authorities in shaping up Noida and Greater Noida has been immaculate. This entire stretch of the expressway is a key real estate destination of NCR in general. The prices and properties are very good and infrastructure is pretty well developed. The free Wifi along the way will promote visitors in the regions and investors will be keen to invest as capital appreciation will follow shortly as well”.

ICCPL PROPERTY NEWS

RG GROUP LAUNCHES NEW TOWERS AT RG RESIDENCY

Noida: Realty major of NCR, RG Group recently announced the launch of new phase at its grand residential project ‘RG Residency’. The company has introduced 3 new towers in the project.

RG Residency is Noida’s first Landscaped Podium residential complex spread across 12.75 acres with beautifully landscaped podium garden. The complex offers 1/2/3 BHK apartments, cocooned amongst lush green landscaped surroundings designed to meet the needs of the young and outgoing people, matured professionals as well as golden agers. For the convenience of the residents; the project has been developed with 3 side openings along with 3 spacious lifts for each tower. The safety and comfort needs of the residents have been thoroughly looked into with facility of 3 tier security system along with CCTV provision. The project also has a unisex beauty salon, 24X7 chemist shop and a supermarket in offer for the residents. The project promises 100 percent power back up in common area besides fresh water supply. No stones have been kept unturned to fulfil the leisure desires of the residents as the project offers pollution free Landscaped Podium garden, kids play area, cafeteria, state of art club, swimming pool along with toddler pool, steam & sauna, health club, ultra-modern gym, yoga centre, table tennis, card room, pool table, amphitheatre, jogging & cycling track, multi-purpose hall, tennis, badminton, basketball court and much more. The project shares a wonderful location advantage of being near to FNG corridor, 5 mins from Noida city centre metro station and Sai Mandir, 5-7 mins drive from Fortis Hospital and 10 mins drive from Atta Market and NH 24.

Apart from the mentioned amenities; the Group focuses on not just providing a property to the customer, but a complete home. For the same, the group is providing spacious modular kitchen, wooden flooring in master bedroom, cupboards in each bedroom, one car parking with 2/3 BHK, external electrification charges, power back up of 1/2/3 KVA, firefighting charges, club membership and lease rent; all of this free of cost. Each property is Vaastu-Compliant and is developed by using the eco-friendly construction. There is a provision of rainwater harvesting and solar energy utilization in the project as well. The new towers being launched will offer 2/3 BHK units available in varied sizes ranging from 967.68 sq. ft. – 1210 sq. ft. in built up area or 1209.60 sq. ft. – 1513 sq. ft. in super area for the same. The current BSP of the project is Rs. 4800 per sq. ft. and the company promises to deliver the project by September’2018.

Looking focused and determined, Mr. Rajesh Goyal says “We as developers perfectly understand the value of one’s hard earned money and believe in offering them the best at a price that is worth buying. Therefore, apart from location, in house project and add on benefits; we charge the sale price on built up area basis and guarantee timely possession with penalty clauses, if any. We follow a fixed price code and hence, there is no escalation for the booked flats and no hidden costs. The project has received a very positive feedback from the public till date and we hope to carry the same feat for our newly launched towers as well”.

ICCPL PROPERTY NEWS

REAL ESTATE REVIEW ON RBI POLICY 2015

The Indian economy is on an elevator of progress with inflation getting under control, a much slower WPI and CPI recently, fuelled with well contained fiscal deficit. At the same time, the RBI is working diligently to maintain the course and help revive the economy from a prolonged drought. Last month itself the apex body had reduced the repo rate by 25 basis points from 8 percent to 7.75 percent. This monetary policy by RBI, there has been an announcement of repo rate and CRR to be kept unchanged, but SLR to be reduced by 50 basis points from 22 percent to 21.5 percent. The repo rate been kept unchanged was pretty much on the cards with RBI already giving the breather last month. The SLR reduction of 50 basis points has been done for the second time inside 7 months thereby giving the option to banks to lend more.

Mr. Rajesh Goyal, MD, RG Group says “The effect on repo rate was gifted to the economy last month itself. Hence, we were anticipating it to be kept unchanged this time. Although, a reduction in SLR is good news for the banks and borrowers as any reduction in SLR allows a greater space for banks to lend more, which is important for liquidity and cash flow in the economy”. At the end of every business day, each bank in India has to maintain, a minimum proportion of their net demand and time liabilities as liquid assets in the form of cash, gold and un-encumbered approved securities. The ratio of these liquid assets to demand and time liabilities is known as the Statutory Liquidity Ratio (SLR). Reiterating the same, it is the percentage of total deposits banks have to invest in government bonds and other approved securities. A SLR bond also meets the requirements for the portfolio kept by banks to come across the liquidity requirement. RBI today has reduced the SLR for banks by 50 basis points and now stands at 21.5 percent.

Mr. Ashok Gupta, CMD, Ajnara India Ltd. says “What the SLR does is it limits the bank’s influence in pumping more money into the economy. On the other hand, CRR is the percentage of deposits that the banks have to maintain with the RBI as a mandate. Greater the ratio, lower is the amount that banks will be able to use for lending and investment purposes. Hence, a cut in SLR means that the home, car and commercial loan rates might go down as banks will now have higher amount to offer”.

Mr. Prithvi Raj Kasana, MD, Morpheus group says “It is important for everybody to understand what the cuts do is that they construct the space for banks to strategies and plan. The most appropriate time to do these changes is when the credit demand is not so solid. Therefore, this is more about long term planning rather than instant effects and hence, we would not expect any large effects in the market immediately but it will definitely help the market going forward”.

What these little actions by RBI are doing is that it is forming a series of positive sentiments amongst the public. We are standing near to a comprehensive budget by the new government at the centre. For RBI to perform, it is extremely important that political stability is maintained at the centre. Mr. Mahipal Singh Raghav, CMD, MMR Group says “A stable government plays the key role for RBI to work consistently. For the last 7-8 months now, we have been looking at rates been kept unchanged or even decreased. This goes to show that RBI is assertive about the government and thus, it is taking decisions confidently that are directly benefitting the economy. Today’s policy decisions were very much anticipated as RBI had already done a surprise cut earlier. This second reduction in SLR inside one year has allowed the banks to free their arms further, thereby increasing lending opportunities for the public and the sector”.

Mr. Rupesh Gupta, Director, JM Housing says “On the whole, this result was very much expected. After the last month, it was quite possible that rate cut was to be kept unchanged and SLR movement was expected to occur over a period of time. It is good that RBI is taking a series of positive steps patiently and carefully. Although, we are expecting RBI to cut rates later this year if inflation and fiscal deficit is been controlled which will assist in boosting the growth in the manufacturing and infrastructure sectors”.

ICCPL PROPERTY NEWS

REAL ESTATE SECTOR OPTIMISTIC WITH THE BUDGET 2014 – 15

Real estate sector is considered as the mainstay of the Indian economy and correctly so; as it contributes to 6.5 percent of the nation’s Gross domestic product (GDP) and employs over 50 million people making it as the second biggest employer in the country, after agriculture sector. Over the past few of decades, the sector has developed leaps and bounds and has attracted close to $25 billion in foreign direct investment (FDI). This number is expected to grow to $180 billion by year 2020.

Last year saw a silence in the real estate sector with investors looking for other opportunities to invest into. High interest rates, escalating property prices, rising cost of construction attached with economic slowdown and high inflation rate had pushed away the buyers. NCR was worst affected by this, narrowly trailed by Mumbai and Chennai. Jaipur emerged as the strongest over the past few years with some micro markets recording an appreciation of almost 65 percent year over year basis. Bangalore has also mounted strong chiefly because it’s an end user driven market. This year started on a positive note as most builders believe that buyers are back and a surprise rate cut move by RBI. With a change of guard at the centre and a buoyant attitude amongst buyers, all eyes will be on Mr. Jaitley to see what he has in store for the sector this budget session, as this will be the first comprehensive budget of this government.

What this sector desires?
>: Industry Status – How does attainment of industry status help? Amongst various other reasons, it’ll give developers access to funds at reduced interest rates and diminished insurance thereby creating housing more affordable.
>: Elimination of multiple taxes – Presently, home buyers need to pay service tax, VAT as well as stamp duty when buying flats. Government needs to ensure the quick passage of Goods and Service Tax which will help in substituting several taxes and help the consumers.
>: Real Estate governing body – This is the need of hour. This sector is valued at over $50 billion currently and anticipated to grow to over $200 billion by 2020. There is a big need for an apex body which will address the concerns and look into issues from this sector.

Mr. Mahipal Singh Raghav, CMD, MMR Group states that “To begin with, Industry Status has been a request that’s been put forward and ignored many times now. It’s a wonder how a sector that generates so much attention and revenue is still not recognized as an industry. This will give builders access to funds at reduced interest rates and reduced collateral thereby making housing more affordable. Also, currently, home buyers need to pay service tax, VAT as well as stamp duty when purchasing flats. The Government should ensure the quick passage of Goods and Service Tax which will replace numerous taxes and help the consumers. Finally, setting up a Real Estate Governing body is much required. There is a big need for an apex body which will address the concerns and look into issues from this sector”.

Mr. Kushagr Ansal, Director, Ansal Housing says “This time we are expecting the RBI to start cutting the interest rates possibly after the budget in first quarter which shall give them extra confidence on handling inflation expectations and stability in currency environment. There is a greater probability of start of rate cut cycle by RBI in the very first quarter this year which will definitely boost a number of sectors and progress corporate earnings from a medium to long term perspective. Moreover, government is expected to pay attention on the implementation of key reforms like GST and other bills that would ignite the investment cycle that will work in the favour as well”.

What customers need?
>: Reduction in home loans rates – Minister for Urban development and housing Mr. Naidu had stated that plummeting home loan interest rates would be his key focus area Financial institutions, developers and home buyers, are deeply anticipating the finance ministry’s nod to this.
>: Decrease in cost of registration of property – Stamp duty and Registration costs amount to 6 percent in most places, which is quite high. Decreasing the registration cost by a few basis points would greatly reduce the burden over the end customers. Alternative approach would be to adopt a slab based approach to register fee. However, stamp duty mainly comes under the jurisdiction of the state Government, an instruction from the centre to reduce the cost would definitely help.

Mr. Deepak Kapoor, Director, Gulshan Homz says “The three most important drivers for the real estate sector this budget will be; RBI’s interest rate cuts, decision on the land acquisition bill and execution of single window clearance system. Whole sector is atleast expecting the rates to come down so as to revive the market. There is a lot of demand in the market which is being held hard by the affordability factor and we are pretty hopeful that the RBI will bring about good news for interested buyers”.

Mr. Prithvi Raj Kasana, MD, Morpheus Group says “The government must focus on and ensure smooth operation of the budget session this year and try to pass as many bills as possible as the market sentiment will be determined to a large extent by how this session directs the way. Most eyes are set on the reduction of home loan rates so as to provide the required push for the sector and this budget; the chances are very high that the new government might get it done also”.

Mr. Rajesh Goyal, MD, RG Group believes that “One of the prominent reasons why people hesitate while buying property is due to the affordability factor. Even though the bank loans are easily available in recent times, owing to the Government policies, the high rates of Interest on these loans and thus huge EMIs cause reluctance among the home buyers. In the upcoming Union Budget we expect the Government to provide some relaxation in the home loan rates. This will help many in realising their dreams of owning a home by making the homes truly affordable”.

What the developers want?
>: Decrease the lending rate – Raising capital is a mammoth task for developers. The interest rate for builders from a bank can go as tall as 14 percent and on an average is about 12 percent and in fact; raising capital from other sources is more expensive than this. Reducing this rate of interest for builders will help in decreasing the cost of construction and in turn, bring down the cost.
>: Prolonged approval system – Developers need to get as many as 50 signatures from various Government officials to get a project rolling. Delay in getting those clearances is one of the prime reasons for delays in projects. Any effort towards reducing this, increasing transparency and rationalizing the process of getting clearances will positively impact the industry.
>: Regulating the cost of raw materials – A sudden rise in the cost of construction raw materials has enforced many builders to pause their projects in many parts of South India. The cost of cement has increased by over 25 percent and prices of few other materials have doubled over the last few years. The Government must regulate these prices for at least key raw materials like cement, iron, concrete, etc. by putting upper limits on their prices.

Mr. Ashok Gupta, CMD, Ajnara India Ltd. says “As India is gearing up for Make in India, the challenge greatly lies on the manufacturing industry. Over the next few decades, the construction industry will witness a massive growth globally and hence, raw materials such as cement, bricks, steel, concrete, etc. will be used in abundance. Therefore, we need to create a perfect balance between the demand and supply along with appropriate consideration for the environment. This immensely depends upon the costs of the raw materials used during construction process such as cement, iron, etc. This budget, the government needs to regulate the prices of these materials so as to curtail rising property prices”.

Mr. Rupesh Gupta, Director, JM Housing says “Markets are keen and waiting eagerly for the Union Budget 2015 to be presented in February. We have a very strong belief that the upcoming budget could be a make or break event; as this would be first full budget from the new government which has spent good enough time at the centre to plan out things. Hopes are high with the Finance Minister indicating start of second-generation reforms going forward. Real estate sector will greatly benefit from this budget if loan rates are decreased by RBI. This will create a positive sentiments wave in the market which will excel the demand greatly. Other important decisions to look into will be the single window clearance system and land acquisition bill”.

Mr. Arvinder Singh, MD, Agrante Realty Ltd says “The real estate sector has a long list of expectations; as this sector alone contributes more than 6 percent to the nation’s GDP.  Markets are keen and waiting eagerly for the Union Budget 2015 to be presented in February. Biggest challenges for the Government are infrastructure, decreasing the lending rate, reduction in home loan rates across the nation. Further, we expect that the upcoming budget should give developers access to funds at reduced interest rates and eliminate multiple taxes; thereby creating housing more affordable and in turn will help reduce the burden of the customers. Other important decisions to look into will be the single window clearance system and land acquisition bill”.