ICCPL PROPERTY NEWS

DELHI BASED REALTY FIRM, SIKKA GROUP RAISES 230 CRORES

Noida: Real estate company Sikka Group has raised 230 Crores from a leading Indian bank for three of its housing projects Sikka Karnam and Sikka Kaamna in Sector 143 on Noida Expressway and Sikka Kimaantra in Sector 79 in Noida.

The amount raised would be utilised towards speeding up the construction of the mentioned projects, two of which along the Noida Expressway are already in the advance stages of completion. Where as Sikka Kimaantra is also in full swing and will be delivered post the delivery of Sikka Karnam & Sikka Kamna.

Sikka Karnam which is spread in 10 acres and Sikka Kaamna which is spread in 12.5 acres are set to start the delivery by the last quarter of this year and have approximately 1247 and 1710 units respectively and Sikka Kimaantra has approximately 364 dwelling units and is spread across 5 acres.

Speaking on accruals, Gurneet Singh Sikka, Director, Sikka Group said, “Our focus has always been to deliver on whatever we promise to our customers. On similar lines, we are also planning to raise funds for our other projects so that we can deliver them on time as well. The total saleable area which will be delivered through the accrual of these funds is close to 45 Lakh Sq. Ft. which will be the abode of over 3300 families. Partial disbursement of the funds has been done recently and the remaining instalments would soon follow.”

ICCPL PROPERTY NEWS

FNG EXPRESSWAY: THE GATEWAY TO NCR’s PERIPHERAL CONNECTIVITY


      Decongestion of Delhi has long been on the cards and ever since the idea of satellite cities was formulated, there have been talks of interlinking them from the outskirts making sure that vehicular traffic between them does not need to pass through the national capital. Eastern Peripheral Expressway was one such project, a part of which is termed as the FNG Expressway connecting Faridabad, Noida and Ghaziabad. The six lane expressway is touted to be around 56 Kms long and will connect NH 24(NH 9) with NH 2 engulfing Ghaziabad, Noida and Faridabad. 20 Kms stretch of the expressway falls under the Noida – Greater Noida region and is expected to be complete by this year end. Once complete in true senses, this expressway will not only unlock land parcels in the regions along it but also allow working classes to buy affordable houses on the outskirts of the city which will cumulatively change the urban landscape of the region.

Throwing light on the same, Rakesh Yadav, Chairman, Antriksh India Group says, “History has been a witness to how well-developed infrastructure and connectivity shapes up the real estate prospects of a region. There exist a direct relation between real estate in a region and the region’s development with respect to infrastructure and connectivity. You talk about India and other countries, everyone’s real estate performance bets upon decent infrastructure and connectivity in the region to make sure that target audience is grabbed for short term which can be carried till long term as well. Localities with better road connectivity always get picked first in case of buying or developing the property and hence one can say that the completion of this expressway will boost real estate to a great extent in the adjoining regions.”

The same goes on to exemplify for both commercial and residential real estate which is very well reflected in the words of Manoj Chaudhary, MD, Airwil Infra who says, “Connectivity and quality of roads reduces the travel time between places hence increasing the approachability between them. Connectivity improves the social meetings with friends and families with low fuel expenses, low travel time and low distance. Travelling to workplaces also gets improved as the amount of time taken for reaching workplaces is reduced. As the time taken to travel to workplaces is reduced; hence people can enjoy their life apart from the office and spend more time with friends and families thus enhancing their lifestyle. Also, once a commercial property sets up in a region, it banks high on external catchment and if the location is well connected with decent infrastructure, it becomes 50 percent easy for the commercial property to meet its supply.”

FNG Expressway is bound to outshine the existing status of Noida’s already famed real estate because of the seamless connectivity it will provide to its multiple sectors such as sectors 137, 142, 150, 168, etc. Describing this further, Dhiraj Jain, Director, Mahagun Group says, “For a real estate region to be successful, location, connectivity and infrastructure play the maximum role. The supreme positioning of this expressway is sure to enhance the unmatched connectivity of these regions and give buyers another reason to invest in these sectors. This will ensure that people employed not only in Noida or Greater Noida but also in Faridabad can look out for residential options in these sectors. Also, with a proposed SEZ in vicinity of this expressway, it will open employment opportunities for people from both ends of the expressway.”  

Concluding on the benefits of this patch on NCR’s realty market, Deepak Kapoor, President CREDAI-Western UP & Director, Gulshan Homz says, “This project once completed will be a true blessing in disguise not only for a daily commuter as it will smoothen the nightmarish traffic on the 56 kms stretch, but is also one Infrastructural development which will prove to be a true boon for Real Estate Developers. Along with the stretching metro connectivity, all farfetched areas of Delhi NCR will slowly become more and more accessible and bring them to the forefront for the general masses. There are further plans to connect all five prime regions of Noida, Ghaziabad, Faridabad, Greater Noida and Gurgaon through a network of planned expressways which will further enhance the connectivity of the entire NCR.”

ICCPL PROPERTY NEWS

NO CHANGE IN THE PRE-GST REVIEW BY RBI

          With the biggest tax reform in the country to be implemented from the first day of the next month, today’s bi-monthly monetary review came out with no surprises as India’s central bank governor Dr. Urjit Patel kept the key rates unchanged in it’s second policy review for the FY 2017-18. With the apex bank currently holding excess liquidity and the economy unable to tackle the growth slowdown, keeping the rates unchanged was a balanced and cautious move, also keeping in mind the implementation of the Goods and Services Tax (GST) from 1st of July.

   With today’s decision in the monetary review, Repo rate remains unchanged at 6.25 percent, Reverse Repo rate at 6 percent, Marginal Standing Facility (MSF) at 6.50 percent and Cash Reserve Ratio (CRR) at 4 percent respectively. Although, the Statutory Liquidity Ratio (SLR) has been brought down by 50 basis points to 20 percent from 20.5 percent previously, which will take effect from the fortnight beginning 24th June. In the post demonetised era, RERA implemented across the country with majority states still to follow suit and GST to come up next; residential demand and prices are expected to make an upward movement. Realty experts and stalwarts feel that this monetary review should have provided a rate cut as prices after RERA and GST are projected to go up.

Industry Reacts:

Avneesh Sood, Director, Eros Group

Looking at the market dynamics, we were projecting the RBI to maintain the status quo as it is currently holding high liquidity and a historic tax reform in the form of GST is in the pipeline. A balanced move today will allow the market to absorb the upcoming impacts from GST on various industries and sectors. The next policy review might allow the RBI to cut repo rate, the benefit of which might be passed on by the banks in the near future.

Manoj Chaudhary, MD, Airwil Infra Ltd.

We were anticipating a rate cut this time which would have pushed the banks to further reduce the lending rates. Any reduction in lending rate allows the sentiments to improve as the net cost on the buyer for the housing unit gets decreased. With RERA and GST to have a joint impact on the realty sector, a rate cut this time could have provided a much needed breather for the sector, its players and the buyers as well.

Dhiraj Jain, Director, Mahagun Group

Even though the RBI has not cut the repo rate today, still there is a lot of room for the banks to further reduce the lending rates. The previous repo rate reductions by the apex bank are yet to offer the complete results; that is held by the banks. A lending rate of 6-7 percent is ideal for our realty sector as we are moving towards strong policy changes at the national level which will leave long term effects on the realty sector and its allied industries.

Kushagr Ansal, Director, Ansal Housing

A rate cut of 25 bps could have helped ease the pressure off the market which has been balancing itself through the confusion still pertaining with RERA. With GST to become operational from July, prices for properties are expected to shoot up. During such scenarios, a slash in repo rate would have meant drop in home loan rates by banks, which ultimately reduces the burden off the buyers. With no change today, we expect the market to run uniformly with a static demand in the short run.

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

This decision of RBI to keep the rates unchanged will prove very substantial in the first quarter post GST is implemented. Before questioning the judgement of the apex bank on holding the rates, one must not forget that it has to keep sufficient cushion for the economy with the massive changes that will come about in the next few months in form of REITs, InvITs, GST, and SPVs.