ICCPL PROPERTY NEWS

20 SMART CITIES DECLARED IN PHASE 1

     In an exclusive press conference held at New Delhi, chaired by the Minister of Urban Development Shri M. Venkaiah Naidu, 20 urban areas of the country have been declared to be revamped into future Smart Cities. Out of the 98 cities declared back on 25th June, 2015, 97 cities had made it to the ‘Smart City Challenge Mission’ out which 20 have been finally chosen in its phase 1. On the basis of the ‘marks’ achieved, 20 declared cities in the descending order are as follows:

  • Bhubaneshwar, Odisha
  • Pune, Maharashtra
  • Jaipur, Rajasthan
  • Surat, Gujarat
  • Kochi, Kerala
  • Ahmedabad, Gujarat
  • Jabalpur, Madhya Pradesh
  • Visakhapatnam, Andhra Pradesh
  • Sholapur, Maharashtra
  • Davangere, Karnataka
  • Indore, Madhya Pradesh
  • New Delhi Municipal Council
  • Coimbatore, Tamil Nadu
  • Kakinada, Andhra Pradesh
  • Belagavi, Karnataka
  • Udaipur, Rajasthan
  • Guwahati, Assam
  • Chennai, Tamil Nadu
  • Ludhiana, Punjab
  • Bhopal, Madhya Pradesh

The next two years will see the inclusion of 40 and 38 cities, respectively or, 40 and 40 cities in case the final two cities get declared. Also, an investment of Rs. 50, 802 crore has been proposed for the 20 winner Smart Cities and towns for the five-year tenure. There are 5 capital cities among the 20 winner cities announced. To qualify for the competition, states and local administrations had to provide ‘smart answers’ to a model with 43 questions. Factors for the same included, feasibility, cost effectiveness, citizen participation, result orientation, strategic planning and several others that accounted towards the ‘100 marks’.

Industry Reacts:

Mr. Kushagr Ansal, Director, Ansal Housing

Smart India Mission is finally underway, and it is good to see that through a tough series of competition, first 20 deserving future Smart Cities have made out. The capital region of the country, NDMC is also amongst the phase 1 list. With this announcement, there will now be a need of Smart Infrastructure to complement the Smart Cities, and the announcements of Union Budget are much more eagerly awaited.

Mr. Deepak Kapoor, President CREDAI-Western U.P. & Director, Gulshan Homz

With the first set of Smart Cities list declared, the competition for the next set is definitely underway. Uttar Pradesh’s cities missing out this time is quite a setback as there is already a lot of scope for Smart development. But for the next set, Uttar Pradesh’s shortlisted cities will certainly make it there. Overall, the work on the promises and announcements of the last year has begun and very soon, India will become Smartly visible on the global map as well. To complete this dream, the government must now take this Budget Session very seriously for the real estate sector, as Smart Cities Mission will heavily rely on private sector’s contribution.

Mr. Rupesh Gupta, Director, JM Housing

The dream of next level infrastructure and standards of living is not much out of reach now with Smart Cities Mission becoming reality. Phase 1 has given a set of 20 cities which will now strengthen the competition for the remaining cities. All eyes are now fixed on the Union Budget as the decisions during the same will somewhere directly affect the development of Smart Cities. Land acquisition, Single window clearance and GST have become more crucial now, as proper and timely Smart development will require the passage of these.

Mr. Vikas Bhasin, MD, Saya Group

For the country in general, it is a huge news as many were not anticipating promptness and seriousness of the government towards this. But still, somewhere we felt that Uttar Pradesh’s cities should have been a part of the first phase, as it acquired the most cities shortlisted during the announcement last year. The focus now shifts towards the upcoming Union Budget where government’s decisions for the realty sector will play the most vital role for Smart development of the cities in future.

Mr. Rakesh Yadav, Chairman, Antriksh India

The declared cities in future will be well equipped with basic infrastructure, efficient urban mobility and public transport, IT connectivity and e-governance mechanisms. The standards of living will be enhanced drastically which will promote sustainable development as well. The government must now work diligently for upbringing of the private sector through important decisions in the Union Budget such as, Industry Status, Single window clearance and execution of RERA for the realty sector.

Mr. Rajesh Goyal, Vice President CREDAI-Western U.P. & MD, RG Group

With this news, finally the much awaited Smart India Mission is underway albeit, it is disheartening that none of the U.P. cities made it to the top 20 list. Now, since the list is out and the proposed budget announced, it is even more important that real estate sector gets into the deserving limelight in the Union Budget 2016-17 through Industry Status, Single window clearance and GST, as these bills will hold key to the proper implementation of the Smart India Mission.

ICCPL PROPERTY NEWS

SECTOR HOPEFUL FOR A FRUITFUL BUDGET 2016-17

      Real estate sector is considered as one of the mainstays of the Indian economy and correctly so; as it contributes at an average of 6 percent to the nation’s Gross Domestic Product (GDP) each year, and employs over 50 million people making it as the second biggest employer in the country, after the agriculture sector. Being an end user for over 30 allied industries and sectors, a lot is always expected from it. Over the past few decades, this sector has developed leaps and bounds, and has attracted a hefty amount of Foreign Direct Investment (FDI) as well. In the year 2015 itself, the sector brought an inflow close to $35 billion in FDI. Lakhs of crores of Rupees has been already spent on the infrastructure front as well that serves as the backbone for the realty sector, with much more announced and to be allocated. Therefore, this sector being extremely significant for the country’s growth requires a strong support through the government’s initiatives and decisions and hence, this year’s Union Budget, which is to be declared on 29th February, 2016 will play the most vital role in shaping up the upcoming years for the real estate sector.

2015 saw a very different behaviour in the real estate sector with end users becoming much prominent than the investors, who were looking for other opportunities to invest into. With interest rates coming down due to reduced repo rates, falling property prices, stabilizing cost of raw materials attached with economic revival and controlled inflation rate had pulled the buyers back in the market. 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 second comprehensive budget by this government who has been featuring infrastructure and real estate as the core behind this country’s unprecedented growth.

What this Sector craves for?

  • Status of being an Industry – This has been the demand of this sector for over several years now. How does the attainment of industry status help? Amongst various other reasons, it’ll give developers an access to funds at much reduced interest rates and diminished insurance thereby creating housing more affordable which will support this government’s current motto of Housing for all.
  • Removal of multiple taxes – Presently, home buyers need to pay taxes indirectly in the form of service tax and VAT. Apart from this, stamp duty is also paid while registering the flats. Government needs to ensure the quick passage of Goods and Service Tax (GST) that went for rounds and rounds in the last two sessions of the parliament and never made out on a positive note. GST will help in substituting numerous taxes with a single tax that will also help in bringing transparency.
  • Governing body for the sector – This is the real need of the hour as otherwise end users in this sector will become dried out of the market, because of rising fraudulent cases and delay in delivery of units. This sector is currently valued at over $50 billion and is projected to grow to over $200 billion by 2020. There is a big need for an apex body which will address the concerns of the customers and look into issues of this sector in order to enhance the much needed limpidity.
  • Encourage FII participation in infrastructure – India is still an infrastructure lacking country and requires huge investments to help bridge this gap. This Union Budget should make more provisions to enhance foreign investors’ contribution in this sector.
  • Fully functional REITs and REMF – Presence of REITs will allow a low entry level and are expected to provide a safe and diversified investment option at much reduced risk; all under proficient management that will ensure the highest return on investment. This new investment vehicle is categorized by its investment in real estate assets as well as limited liability for the unit holders. On the other hand, REMF will help in fulfilment of three major purposes; raising of funds for the expansion of retail businesses, to provide required capital for the development of retail infrastructure and to enhance the quality of housing projects.

Mr. Rajesh Goyal, Vice President CREDAI-Western U.P. & MD, RG Group

The Indian Real Estate Sector has been anticipating Industry status for long now. A sector that generates massive revenue and employment deserves extra attention from the government. Time and again we learn about the urgency to build 2 crore affordable houses. It can be achieved in due time only with the help of Industry status which will give builders’ access to funds at reduced interest rates and reduced collateral thereby making housing more affordable, thus assisting the cause of Housing for all as well.

Mr. Rakesh Yadav, Chairman, Antriksh India

A major miss of the last year was GST whose implementation will basically work on three major elements for this sector; simplification of tax structure, reduction in construction costs and better transparency. Speaking about its contribution post acceptance, we are predicting a nationwide realty sector growth by almost 15-20 percent than projected in the course of next 5-7 years. There will be a quick reaction towards the sector by its customers as demand is bound to increase due to reducing costs and improving transparency in the sector that has been the hurdle making this sector suffer for long now.

Mr. Vikas Bhasin, MD, Saya Group

It is high time that SEBI had approved the structure of REITs in the country but it is still in lurks over its implementation. This budget session would be crucial keeping this in mind, however few changes would be much appreciated like reducing on the current minimum stock size and minimum investment amount of Rs. 1 lakh and Rs. 2 lakh respectively. Also, provisions should be brought in to allow investments in residential real estate as well, which till now is limited to commercial real estate only. Simultaneously, Real Estate Mutual Funds also need to be picked on a serious note so that money can be equally channelled into REITs shares and infra related shares.

Mr. Sushant Muttreja, CMD, Cosmic Group

No doubt the real estate sector is one with very high returns but the period of investment in the real estate has to be judged over a period of 8-10 years, since it is a long term investment. The sector is very confident that the Budget 2016-17 will bring in Real estate regulatory bill, GST bill, Land Acquisition Bill and industry status to the sector. We need a lot of positive sentiment to usher a new era where real estate as always will contribute aggressively to the overall growth.

What customers’ desire

  • Reduction in interest rates – Even with 125 basis points reduction and repeated nods by the RBI last year, banks have not passed on the complete benefit to the customers. This has led to higher EMIs than expected which is keeping back the actual demand.
  • Correction in cost of registration – Stamp duty and Registration costs amount to around 6 percent in most places, which is still 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 towards the registration 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.
  • The right to know – In this sector, customers often complain about not knowing the development progress on their units or if there are any changes made, they aren’t notified, and in certain cases, even worse; builders making exit with the hard earned money of the customers. This transparency has become extremely significant which can only be addressed through the passage of RERA.

Mr. Deepak Kapoor, President CREDAI-Western U.P. & Director, Gulshan Homz

The three most important drivers for the real estate sector this budget will be; implementation of RERA to help curb the corruption in this sector and enhance transparency for the customers, execution of single window clearance system across the country to assist in timely commencement and delivery of the projects and proper passage of GST, to avoid multiplication of taxes that confuse most customers. Apart from these, industry status has been in the request queue for long now and must become real this time so as to help the developer pass on direct benefits to the customers through reduced cost of units.

Mr. Ashok Gupta, CMD, Ajnara India Ltd.

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 sentiments will be determined to a large extent by how this session directs the course for this sector. Most eyes are set on the misses of last year such as RERA, GST, Land Acquisition Bill and Industry Status. These are extremely important for this sector to grow and perform, and this government has left no stones unturned in announcing mega plans for the future that will be directly affected by the implementation of aforementioned bills.

Mr. Kushagr Ansal, Director, Ansal Housing

At present, the income earned from renting is treated as normal taxable income. This Union Budget, the government needs to provide tax incentives for renting out of residential properties. Providing tax breaks specific to rental income will provide a noteworthy boost to rental housing segment which will help increase rental supply in the metros especially. At the same time, developers have been campaigning for a faster project approval process for timely completion of projects. Faster approvals will push up the supply pipeline, lower prices and also ensure that this sector remains practical as a business. The Budget must also ensure that construction quality norms are not compromised in the process and that faster approvals do not result in support infrastructure failure in new grounds being developed.

Mr. Rupesh Gupta, Director, JM Housing

The country’s real estate stands in anticipation of a lot from this year’s annual budget. There are few pointers though which need immediate attention and that would include the awarding of much awaited industry status and allowing single window clearance for approvals. Industry status once accorded will mean cheaper loans for developers and work flow becoming much more realistic. Single window clearances will mean timely approvals and allow developers to avoid unnecessary delays in their promises of delivery time frames.

Developers’ wishlist

  • Decrease the lending rates – Raising capital is a mammoth task for developers. The interest rate for builders from a bank can go as tall as 24 percent and on an average is about 22 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 of a unit for the customers.
  • Prolonged approval system – Developers need to get over 30 approvals 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 of raw materials has enforced many builders to pause their projects in many parts of South India and gaining momentum in the Northern parts as well. Although, the cost of cement and steel has decreased by almost 30 percent over the past few years, but 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 caps on their prices.

Mr. Sudeep Agrawal, MD, Shri Group

As India is gearing up for major infra revamp and 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, brick, 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 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. Ankit Aggarwal, CMD, Devika Group

Markets are keen and waiting eagerly for the Union Budget 2016-17 to be presented on 29th February. We have a very strong belief that the upcoming budget could be a make or break event; as this would be the second full budget from the government which has now spent good enough time at the centre to plan out things, supported with huge announcements. Hopes are high with the Finance Minister indicating start of second-generation reforms going forward. Important decisions to look into will be the single window clearance system, decrease in lending rates for the developers and most importantly, Industry Status which itself will help in making funds available at much reduced rates.

Mr. Rahul Chamola, MD, One Leaf Group

The real estate sector has a long list of expectations; as this sector alone contributes to about 6 percent to the nation’s GDP. Biggest challenges for the Government are infrastructure, decreasing the lending rates for developers, regulating prices of raw materials across the nation, etc. 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 on the customers. Single window clearance and Industry Status will bring cheers in the developers’ fraternity and bring desired results for the customers.

Mr. Vikas Khurana, Co-Founder, HomzCart

2015 has been a year full of promises by the government that will require key reforms to move forward. For instance, the Smart Cities mission will require next level of infrastructure, the presence of which is possible through acquiring huge land banks. This will need quick implementation of Land Acquisition Bill. Similarly, Housing for all by 2022 initiative will remain a dream if Single window clearance is not adopted at the earliest. Also, in order to keep this sector’s contribution maximum towards GDP, balance between demand and supply along with proper transparency is necessary, which brings our focus back to RERA’s execution. Finally, to bring down the cost of units, Industry Status will allow acquisition of funds at much lowered cost which will directly benefit the customers through reduced cost of units. Thus, this Budget is extremely crucial in terms of future development of the nation’s realty sector we expect government’s full support.

ICCPL PROPERTY NEWS

ROARING CUSTOMERS, DISMAYED BUILDERS

    Real estate sector has been one of the most unorganised sectors of the Indian economy and the situation has only worsened over the years due to the ever increasing presence of fresh entrants. Eventually, it is the end user who is taking the final hit because it’s them who have invested their hard earned money. Customers put in their savings or take over additional loans, but this decision is usually taken in a hurry without proper checks and verifications, hence the trouble. Also, they need to payout their current rentals, pledge the fixed EMIs against the loans borrowed, etc. which adds to the mess. With no promise of delivery, no time frame disclosed on the progress of work, no details divulged on the work style of the developer, but still there is an investment which has now turned into a non – performing asset. In light of the recent happenings, which incited buyers of Unitech who had no way out but to knock on the doors of the judiciary, one can imagine the extent to which people have been exploited by developers.

Sharing his views on such developments off late, Mr. Rajesh Goyal, Vice President CREDAI-Western U.P. & MD, RG Group shares, “With more and more new players coming into Indian realty, people have been spoiled with options to invest their money but that also brings along the need for home-buyers to be even more cautious while short listing or finalising their home. A lot of nuisance is being created by these newbie who either do not carry a strong background or sound technical knowledge/ expertise or professionalism that the sector demands thus failing to deliver their promises and bringing a bad name to the whole sector. We are hopeful that, in 2016 the implementation of RERA will put an end to all these misdoings.”

What has been in store?

This sector has brought cheers to a lot many people but off late it has gained the status of a swindle. The sole reason being the entire hoax which has been rough-hewn by the new builders and isolating these from the lot is like finding needle in a stack of hay. Not only are the end users affected, even the channel partners are also on the suffering side. Adding weight to this, Mr. Vikas Khurana, Co-Founder, HomzCart believes, “We being channel partners are no less at risk in these scenarios. In our model of business when we get into contract for the exclusive marketing and branding rights of a project and the project gets delayed, we cannot expect to sell out the project on time. Be it any reason, the end user who invests will never understand, the simplest reason being consumer psychology. If you are paying for anything, either tangible or intangible, you will definitely expect the product or services to be delivered on time. Failing this, you are sure to gain mistrust in the market.”

Taking NCR realty market as an example, the average delay range from 3-5 years and this has definitely played it’s part in the boil up to these events. Many builders had raised money from the market on the promises of assured returns but even after substantial time has elapsed, there is no construction work in progress and neither has there been any word on the returns which they had promised to the investors and buyers. There are various reasons which builders cite for the delay in projects like the authority not providing necessary approvals on time, limited availability of raw materials, labours, etc. but the actual reason is something else. Once a project is launched and they pick up money from the market, they tend to invest that money in acquiring land for new projects. Explaining further, Mr. Kushagr Ansal, Director, Ansal Housing states, “Most of the times, the greed to earn more is what makes these builders err and come in the wrong sight of the buyers. Once they are able to achieve a pompous launch to their debut project and collect handsome amount from the market, they invest that money in acquiring new land masses for future projects rather utilizing the funds on the development of the project. What follows then is what we all are very well aware of and the ruckus it creates.”

Will RERA be the saviour?

Various reforms and policies are in the pipeline to be implemented in the coming months which will change the entire landscape of real estate in the country, and several important ones have been lingering in the parliament for its approval. The most important being the Real Estate Regulatory Act which will redefine the concept of real estate in the country. Also, it will help regularise this sector which till this date stands much unorganised. Speaking his sentiments on the same, Mr. Ankit Aggarwal, CMD, Devika Group states, “No doubt the real estate sector is one with very high returns but the allurement to make more on immoral grounds has led us to this juncture wherein even prominent developers are looked upon with suspicion. A lot of effort will have to be put in to clear the pond which can commence only after RERA is implemented. This will not only restrict irrelevant builders to enter the developers’ fraternity but also tighten the noose on those who are already in it but not performing by the standards of the sector.”

Once RERA is implemented in full force, bills like GST, Land acquisition, etc. can follow suit. The sole reason to impart such high weightage to RERA can be adjudged by the recent amendments in the bill which were approved by the cabinet. Some significant points of it were to maintain escrow accounts for individual projects to ensure there is no shortage of funds for the project, making sure that builders stick to their proposed plan unless major architectural revamps are required, etc. Adding substance to this, Mr. Vikas Bhasin, MD, Saya Group avers, “In addition to RERA, single window clearance will hold key to the real estate sector coming to it’s own because agreeably or disagreeably, approvals do eat up a lot of time. Once these issues are addressed, notorious developers will definitely run short of excuses to give and help bring some sanity back in the sector. To some extent, RERA will also ensure much effective implementation of land acquisition bill and awarding of industry status to this sector.”

Aware of the dubious nature of this sector and the image it has built for itself, Mr. Vikas Sahani, CMD, Property Guru concludes, “RERA is not the ultimate goal of the real estate sector but yes, once RERA is in place, the road ahead for major revamps like Industry status for the sector, Single Window Clearance system, etc. will become easier because RERA will help ensure that malpractices in the sector are curbed and processes are streamlined. The roads ahead are tougher and tougher with deadline for various schemes like AMRUT, Housing for All, Smart City Mission, etc. in near vicinity, RERA will hold key to all these because it will work as the centre’s eyes to monitor developments on a Pan India basis.”

ICCPL PROPERTY NEWS

AJNARA INDIA DISTRIBUTES BLANKETS TO THE NEEDY

Ghaziabad: NCR’s well known realty major, Ajnara India Limited distributed blankets at their project Ajnara Integrity in Rajnagar Extension. As the country is shivering under the retreating winter, people have been caught unaware in the midst of falling mercury. The company and the management took notice of the same and provided blankets to the labours, workers and the needy in the adjoining areas. The distribution was done by the CMD, Ajnara India Limited, Mr. Ashok Gupta, the Directors, Mr. Vineet Gupta and Mr. Nikhil Gupta in the presence of A.E. Mr. P. K. Sharma and Mr. A. Benipuri from the GDA.

A total of 1100 blankets were distributed which were conducted under the CSR initiatives of the organisation. The various CSR activities overtaken by the company like Blood Donation Camps, Blanket Distribution, Free Check Up camps, Books Distribution, etc., has helped the company maintain a separate niche for itself in the real estate market. Ajnara India has been present in NCR’s real estate market for over two decades now and delivering quality construction along with serving the society has been their ultimate goal.

Mr. Ashok Gupta, CMD, Ajnara India Ltd. expresses his feelings and states, “We agree by the fact that whatever we are today, we are because of this very society and so it is our moral responsibility to give back whatever and in whichever form we can to the society. Blanket distribution is also a small part of these efforts and we will keep carrying on such efforts in future as well. Many people consider CSR activities as an image building source our sole objective is to fulfil the needs of the people which are they are not able to.

ICCPL PROPERTY NEWS

NOIDA IS SMART, WITH OR WITHOUT SMART TAG

      New Okhla Industrial Development Authority or Noida, as we know, has been a benchmark in the real estate sector of NCR for over a couple of decades. Being a neighbour of the capital of our country, it always received the fruits of acceptance by people more than any other region of the NCR. On the development front as well, Noida has been a skyline of NCR with infrastructure on a continuous development and upgradation spree. For Uttar Pradesh’s list of 12 announced Smart Cities against the 13, Noida couldn’t make it in. But the kind of development that it has witnessed over the years, along with the promise of better future, it does not look that this region requires a Smart City tag. In fact, in the eyes of the corporates and public, Noida as a region scores much above several cities shortlisted in the list of 98 Smart Cities.

“As a region, Noida has witnessed industrial, commercial and infrastructural development on a massive scale and looks quite a complete city. For residents also, civic amenities are present with scope of improvement. The presence of public utilities makes it a complete habitat. Developers across NCR have always favoured Noida as a realty region over others due to its approachability from Delhi, Ghaziabad, Greater Noida and Faridabad. This allows connectivity advantage, thereby gradually enhancing its capital value as well”, avers Mr. Sushant Mutterja, CMD, Cosmic Group.

Smartness quotient at present:

As per the parameters of declaring a Smart City, Noida might not have scored well. But does a resident actually require those facts and figures to get attracted towards a region? This brings our focus towards having a sound infrastructure in place, which serves as the true reason for a region’s attractiveness. “Over the last one decade especially, Noida has emerged as the perfect destination for residents and commuters. With already existing numerous residential and commercial spaces, it’s a ready city. Presence of metro rail, public transportation facilities, superior roadways and connectivity makes it an ideal destination for residential and official purposes”, shares Mr. Rupesh Gupta, Director, JM Housing.

Adding more to it, Mr. Vikas Sahani, CMD of Property Guru states “Noida never required a Smart City tag and according to its growth graph, it might never will. The kind of residential projects that have come up over the last 5-7 years, there are ample of options made available for the customers. Projects vary from affordable segment to even ultra-luxurious segment, thus satisfying every segment’s demand. On the other hand, infrastructure and Noida’s connectivity is on a continuous development track which will boost its future prospects of getting accepted by potential end users and even investors.” Thus, with the kind of infrastructure and habitat already available in the region and still a lot in pipeline, Noida might never require to be developed into a formal Smart City, as its existing Master Plan already has plans to take it to the next level.

Reasons why it will remain Smart:

What we are observing today in Noida is just about 40 percent of what is going to come our way in the next 7-10 years. Sighting a few examples, the metro line existing in Noida has plans to get extended till Greater Noida West. Construction work on the same is already taking place at the rate of knots, with a metro line coming up along Noida expressway as well. FNG expressway will be operational soon. Widening of NH 24 has been announced and the work is being promised to be complete within 30 months. Several underpasses and flyovers are also under construction across Noida. Apart from these, a number of educational institutes, financial institutions, hospitals, universities, civic structures, commercial spaces, residential complexes, power plants, water treatment plants, sewage treatment plants and other such assignments will be mushrooming across Noida in the upcoming few years. Now, do we really need a Smart City tag for Noida to address these needs of the future inhabitants of the region? “Smarter way of public and private development and promoting sustainable development is what a Smart City makes sure. With modern concepts of construction and living, coupled with this city’s clean & green campaign; we are rest assured that Noida will breathe a healthy air and promote sustainable development for the future generations. The work on the infrastructure front is also taking place at a world class level and thus, justifies being a region with Smart development”, affirms Mr. Sudeep Agrawal, MD, Shri Group.

Smart development will pave way for smarter returns. Capital appreciation and good returns on investment has been a highlight of Noida as a region. Over the last 5-7 years, the regions have appreciated by almost 40-60 percent varying with different sectors, with some sectors even reaching out till 100 percent appreciation levels. This has allowed Noida to become an investor’s paradise and an end user hub. “From 2008 till 2013, Noida lived a golden period with footfall of investors and end users being a prominent view at the project sites across most residential and commercial projects. The conversion rate was very high back then with resale value also earning profit for the investors. The period from last quarter of 2013 onwards till mid of 2015 witnessed a slack, but then onwards things are getting back on track with promise of returns getting better than before. Through this history, one can now easily imagine the extent of returns which Noida will yield in the next 5-7 years through smarter development”, explains Mr. Rakesh Yadav, Chairman, Antriksh India.

Carrying a tag is crucial at times as the attractiveness quotient increases in the eyes of potential parties interested for its development. Noida not able to make it to the Smart Cities list won’t be able to attract much FDI in terms of funds or manpower or ideation; but does it require any or all of it? With several global giants already having their footprints in the region and Noida sitting right in the middle of 4 smart cities of NCR namely; New Delhi, Ghaziabad, Faridabad and Karnal, Noida will not get bypassed so easily, rather receive benefits from all of them. “The government and authorities have kept no stones unturned if we speak about Noida’s current development and its future prospects. Not being a part of the Smart Cities list; this will never hurt Noida and its future progress as the ripple effect of Smart development around it due to four Smart Cities of NCR will allow Noida to be developed shoulder-to-shoulder with those cities. At the same time, the connectivity factor with those Smart Cities will anyways promote and serve Noida’s development in future as well”, concludes Mr. Ashok Gupta, CMD, Ajnara India Ltd.

ICCPL PROPERTY NEWS

WORK ON GULSHAN BELLINA KICKS-OFF

Delhi/NCR: In an exclusive event organised by NCR realty major Gulshan Homz, a ‘Ground Breaking Ceremony’ was performed at the site of their latest project Gulshan Bellina in Greater Noida West. The event was marked with a hawan event to start with which was attended by all the employees along with the management. Customers of the project were also seen present for the ceremony with the most distinguishing feature being the presence of Gulshan Homz’s previous customers who had gathered to wish them well on their new endeavour.

After the hawan event, excavation work kicked off then and there which went a great way to ascertain the customers on Gulshan Homz’s promise of timely delivery. The project has been welcomed a lot by the buyers’ fraternity which boasts of many exclusive facilities like rainwater harvesting, customer care center, special play-pen for kids. The project also features an exclusive welcome lounge along with a coffee shop which has been a highlight in their previous projects as well.

The event was graced by the presence of Mr. Deepak Kapoor, President CREDAI – Western U.P. who is also a director at Gulshan Homz. Being satisfied with the progress and steps in this direction he said, “The project was launched with some great expectations on the sides of the customers and it is very good that we have received the environmental clearances concerning the project. The work has now commenced and we expect to complete the project on time, delivering on the promises we made to our customers at the launch of the project.”

About the company:

Gulshan Homz is a leading real estate builder in Delhi NCR. Started with the core value of customer centrism in early 1990s, this company strives for excellence in their work. This they achieve by adhering faithfully to the highest ethical and technical standards of profession and business. They have always given top priority to customer satisfaction through relentless efforts to provide better services.  Customer value has been built through meeting delivery timelines. Over the years, Gulshan Homz has become a name synonymous with quality construction and flawless deliveries and this is what sets them apart in the entire developers’ fraternity.

ICCPL PROPERTY NEWS

2016 TO WITNESS THE UPRISING OF TIER 2 CITIES

      Our forefathers correctly quoted that food, clothing and shelter will always remain the basic necessities of every human being. Shelter, in other words, real estate is not only regarded as a basic necessity but now days as, an investment opportunity or something that fulfils lavish needs of a person. Indian real estate sector has been growing leaps and bounds over the last few decades and is able to reap the benefits arising out of the modern concepts of construction. The pace at which barren lands are being transformed into metros is something to be noted. Although, in a product life cycle, there comes a stage where decline is sure to begin and hence, the once prominent realty regions in the country are guaranteed to saturate. This shifts our focus towards understanding and upbringing regions that are next in line, i.e. Tier 2 cities.

“Development on a piece of land cannot be redone or can be at most, revamped. The space once utilised does not allow further additions and here comes the importance of having land parcels in other regions. Depending upon certain parameters like infrastructure, civic amenities and others, Tiers are divided. Tier 1 cities in India are nearing its saturation as development has almost reached its peak. Therefore, the developers will now have to broaden their avenues and reach out to Tier 2 markets to gain back the momentum and this year will be the year of this possibility considering AMRUT and Smart Cities plans”, avers Mr. Ankit Aggarwal, CMD, Devika Group.

SCOPE OF IMPROVEMENT

The benefits that something new hold over the previous is the fact that it is new and has ample of scope to improve than previous. “Why Indian real estate has been a superior performer than others is because that it is blessed with today’s technology, ideation, concepts and skilled manpower. This allows better innovation and development for domestic developers that directly results in better structures and facilities. In a similar manner, Tier 2 cities in our country will grow much better than today’s Tier 1 cities which are the key for smart futuristic development. We are already underway with mammoth infra upgradation plans in our country that are guaranteed to aid the development of Tier 2 regions”, shares Mr. Vivek Gupta, Director, Vardhman Estate & Developers (P) Ltd.

CONVENIENT PRICING

Pricing plays one of the most vital roles in the attraction of real estate prospects of a region. Tier 2 cities being emerging hot spots for investors and developers are offering deals at competitive prices that much lower than Tier 1 cities. “Prices at key Tier 1 realty regions begin from Rs. 4,000 per sq. ft. whereas country’s top Tier 2 regions at present are offering properties starting from Rs. 2,500 – Rs. 3,500 per sq. ft. There are two angles of looking at it; one being the return on investment factor and other being lesser cost than Tier 1 cities which help in creating a better demand from investors as well as end users. Customers interested to invest in Tier 2 cities must start investing in these regions as big plans are in pipeline for them, which in near future will fuel the property prices”, states Mr. Sushant Muttreja, CMD, Cosmic Group.

LONG TERM RETURNS

Carrying a low price tag with promise of capital appreciation, Tier 2 cities are ready to offer better returns for their customers. Long term investment and second home buying will be the initial reasons of growth momentum for emerging Tier 2 cities. “Regions that are available at lowered prices today with well laid future infrastructure plans are sure to offer greater returns to the investors in future. With AMRUT offering 500 cities to be revamped, Tier 2 cities will become more prominent once infra upgradation takes place in the regions. Properties bought today will cost less along with rapid and sudden price appreciation, which will take place gradually in the next 2-5 years and yield massive returns, that are projected to be as much as 50 percent”, affirms Mr. Rahul Chamola, MD, One Leaf Group.

WHAT’S NEXT

As Tier 1 cities reach saturation point, Tier 2 cities will become the next big fish for the developers and potential buyers. “The future case study of every Tier 2 city of today will be much like Tier 1 cities, where the infrastructure came up followed by housing demand that provoked developers to enter and put a foot in those regions. With the government actively promoting urbanisation, this will pave way for developers to enter in Tier 2 cities and offer residencies and office spaces. The growth and return prospects are great in Tier 2 cities with huge scope of development”, says Mr. Sudeep Agrawal, MD, Shri Group.

It has now become crucial for Tier 2 regions to come up as there will be no point developing in regions where there is almost no demand left and prices are skyrocketing. Major Tier 2 regions in India such as Kochi, Nashik, Vizag, Vadodara, Trivandrum, Jaipur, Mangalore, Indore, Goa, Coimbatore and others are witnessing wonderful infrastructural and civic upgradation, and thus are perfect destinations for realty developers and buyers to look out for. “The graph and direction of growth has become pretty clear for Tier 2 regions of India to make their presence felt in the sector. It is now just a matter of time when the infra execution starts taking place. Many Tier 2 pockets are settling well with residential and commercial projects mushrooming with quality construction and modern amenities in place. Due to well-planned infrastructure, the connectivity to these projects is already very good and is sure to become better. As the catchment area gets broader, these Tier 2 regions will be able to cater to better demand and offer greater supply, especially in 2016”, concludes Mr. Rakesh Yadav, Chairman, Antriksh India.