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The Noida Authority has approved of hike in land rates by 20-25%. The board also cleared way for fresh draw of plots for the infamous residential scheme of 2004, while the matter is still pending in court. The Noida Authority has approved hike of land rates of residential, industrial and institutional plots by 20-25%. Fresh rate hikes would be announced soon, said Mohinder Singh, chief executive officer, Noida Authority. According to him, other major decision approved by the board was the reversal of July 2007 board order in respect of residential plot categories of A, B, C under which allotment was only through auction. At the same time, Greater Noida Authority is bringing down these rates. The Authority approved the rational rates formula, thereby decreasing land rates of institutional and industrial plots by 30%. During the last board meeting all land rates were hiked by 70-80% due to hike in land compensation rate, informs Lalit Srivastava, chairman and chief executive officer of G

Constructing a house is a cumbersome process. Many people prefer to construct a house rather than purchase a built house. A plot is purchased and the house is constructed according to one's requirements and lifestyle. There are two ways to get the house constructed. One option is construction on a turn key basis. In this case, the owner and the builder enter into a contract wherein the contractor completes the entire construction along with fixtures and fittings, and hands over the key to the owner on completion. The owner has no other role to play, except to make the payment and to enter the house on completion of the construction. The other option is to enter into a labour contract. In this case, the owner enters into a labour contract with the contractor. The material is purchased and arranged by the owner himself. Only the labour is supplied by the contractor. This is more suitable for people who want to maintain strict standards. Whatever mode is chosen, as a first st

Before buying a property, ensure whether there is a charge on that property or not in the form of an encumbrance. This certificate ensures that the property under discussion is free from any kind of mortgage or any other legal implication. ET Realty tells you what you need to lookout for and how you can obtain this certificate to make sure you bought the right asset Certificate of encumbrance is issued in respect of charges created on a property. In case the property has been offered as a security for a loan or has been purchased with borrowed money, a charge is created in the form of an encumbrance. The property may be mortgaged as a security for any debt or obligation. In case of any transaction of sale or purchase of property, a no encumbrance certificate is a very important document to be obtained. It is also issued for the purpose of mortgaging a property against a loan. It certifies that the property in question is not already mortgaged. If it is already mortgaged, the liab

60 UP MLAs get prime plots in Ghaziabad, 201 waitlisted Plots measuring between 180 and 198 sq metres allotted at Rs 9,000 per sq metre against market value of Rs 45,000 THE Ghaziabad Development Authority today held a draw to distribute 60 plots, measuring between 180 square meter and 198 square meter in Indirapuram, to UP legislators. The plots, which have a market value of Rs 45,000 per square meter, were given away at Rs 9,000 per square meter: the legislators got the plots for about Rs 16 lakh as against the market value of over Rs 80 lakh. The special draw was held at the Ganna Sansthan auditorium in Dalibagh, where MLAs and MLCs cutting across party lines, were seen enquiring whether their names figured on the list of beneficiaries. Of the total 60 plots allotted today, 58 measured 180 square meter while two were 198square metre. Before the legislators are given allotment letters, they are required to file an indemnity bond stating that do not own any plot developed either by th

Emaar MGF In $3.7 Billion, 30,000 Hotel Rooms Plan Across India By 2015 Emaar MGF Land Ltd, the joint venture firm of Dubai real estate giant Emaar and the New Delhi-based MGF Development, will invest about $3.7 billion or Rs 16,000 crore in its hospitality vertical to construct 30,000 hotel rooms by 2015, a top company official said. The funding for the project would be a mix of internal accruals, future public listing proceeds, debt, and private equity investments. "Emaar MGF has a long-term strategic focus on enhancing the hospitality infrastructure of the country," Sanjiv Rai, chief operating officer (hospitality) at Emaar MGF told DNA Money. Rai said the compay will continue to forge business relationships with hospitality brands of the world. The realtor said it plans to develop hotels pan-India covering the luxury, business, limited services and budget segments. The developer will partner groups such as Marriott, Hyatt, Intercontinental, Four Seasons, Whitbread and Acc

Cloverleaves At Akshardham, Crossing Will Turn Signal-Free Two Summers more and a major traffic bottleneck on NH-24 at the Akshardham crossing will be an easy-tonegotiate, signal-free junction. The Delhi Development Authority (DDA) has in principle agreed for a revamp of the junction - including a plan to add three cloverleaves to the existing flyover that would help commuters from all directions. Other plans include adding slipways and a pedestrian subway opening on all four sides. The revamp would specially benefit motorists coming in from Noida and going towards Ghazipur, and those headed towards Vikas Marg Chungi from Ghazipur crossing. The proposal, with the DDA's technical committee now, will be sent to the Delhi Urban Arts Commission for a final nod, DDA officials said. "This is a major long-term traffic management measure and the signalfree junction will help smoothen traffic on the stretch between Nizamuddin T-point and Ghaziabad border on the NH 24," traffic of

As the month of June approaches, students will be making a beeline for admissions in various colleges and universities across the country. In the National Capital Region (NCR) the same saga of earlier years, in which the number of seats fell far low in comparison to the student populace, will be repeated again. The reason primarily for this phenomenon is that Delhi has always been the number 1 choice of students. However, this notion is not totally true. Western UP, especially Ghaziabad and Meerut are coming up in a big way to meet the requirements of professional education of lakhs of students, be it engineering, management, medical or any other stream. According to former director, Jaipuria Institute of Management, Ghaziabad and currently a faculty at AIT, Greater Noida, Professor Anoop Pant, "NCR which includes parts of Ghaziabad, Noida and Greater Noida has developed as one of the leading business and educational hubs of our nation." He elaborated, "Today, business o

Removing bottlenecks could see Indian real estate soar Property developers in India, analysts agree, need to raise large sums of money to ease the shortage of everything from office towers, warehouses and shopping malls to apartments, multiplex cinemas and hotel rooms. The financing itself shouldn't prove very difficult. At $400 billion a year, domestic savings in India now represent a significant source of funds for any profitable enterprise, including construction. There's also ample interest globally, including from hedge funds and buyout specialists. Lenders such as ICICI Bank Ltd are seeking billions of dollars from investors in North America, Europe, Japan and the Middle East to invest in property projects in India. Yet, Indian real estate can absorb a lot more capital than is currently flowing into it -- if only policy makers can fix a few basic loopholes in the laws governing property titles, taxation and creditor rights. Failure by lawmakers and regulators to set clear

Stung by the bearish realty market, which is reeling under a price correction, real estate developers are now unleashing discounts, freebies and innovative schemes to lure buyers into residential space. Consider these: TDI is offering a free international trip for its Kingsbury Luxury Apartment buyers; Ansal Buildwell has advertised an inaugural discount on its project Florence Abode; scores of players are offering an ‘EMI holiday’ till possession on specific projects; while yet others are willing to waive prime location and such other charges or throw-in complimentary club memberships for new homeowners. “In various markets, despite a slowdown in demand, developers have refrained from reducing rates. Instead some of them have started offering incentives such as club membership, parking lot, and better amenities to attract buyers,” says Ms Shveta Jain, Associate Director (Residential), Cushman & Wakefield India. Assotech Ltd is giving buyers the flexibility of taking loans on vanil

The India property market is on the cusp of a massive change. Land prices in India have quadrupled over the past three years as developers paid major sums for land to build developments of luxury housing, with starting prices upwards of $250,000 per unit. The number of people earning over $5000 per year is expected to double to more than 20million in the next two years, not least because of the 2.5 million students teaming out of Indian universities each year. And land prices are expected to fall again in the near future, as developers realise that the real demand in India is for affordable housing. David Stanley Redfern Ltd got in on the new trend early with their Mountain View development in Rudrapur, in which 2 bedroom apartment were available for under £30k. Mountain View is almost completely sold out now but another development is being built just up the road, and it will also offer affordable housing, ready to capitalise on the massive demand there will be for such housing in the

No land for plantations, GDA says it cannot achieve the state government's target The Ghaziabad Development Authority (GDA) has written to the state government expressing inability in achieving the plantation targets for the city. The state government's target of planting one lakh saplings in the city this year cannot be achieved because there is no land. The Horticulture Department has stated that at least 50 acres is required. Despite an angry reminder by Special Secretary, Housing, Ram Bahadur Singh to initiate an intensive greening drive for the city, the agency has pleaded helplessness. "The land bank is zero. Acquiring new land for plantations will require time. While last year we had overshot the plantation targets, this year there is no land to plant," says S. K. Dwivedi, GDA Vice Chairman. Vision Plan 2021 In a joint drive this year, the District Administration and GDA planted 16,000 saplings in Kanavani near the Hindon riverbed only. Now with the GDA unable

Metro To Go Up To Sector 62 And Greater Noida There is good news for Sector 62 residents. Their longpending demand for a Metro connectivity has been fulfilled. A decision was taken to extend the Metro line to Greater Noida and from there to the Taj International Airport (TIA) coming up in Zevar on one side and to Noida's Sector 62 on the other The decision was taken at a meeting held last week. The project will ultimately benefit the airport project at Zevar as passengers will be able to travel easily between DelhiNoida and Greater Noida. The Metro is expected to reach Greater Noida by 2012 and the Zevar airport by 2015. The proj- ect is estimated to cost Rs 11,000 crore. The expenditure of extending the track from Noida to Greater Noida and further will be borne jointly by the three authorities - NA, GNIDA and TIA. The work will be carried out in three phases. In the first phase, the Metro rail track will be extended from Sector 32 in Noida via the Noida-Greater Noida Ex- pressway

NCR Project Hits New Price High, It Indicates Market For Luxury Realty Remains Strong As Ever Setting a new benchmark for apartments in the super-luxury segment in the national capital region, a local developer is offering 7,672 square feet of super area at a basic price ranging between Rs 13,500 and Rs 14,750 per square foot (sq ft), the highest in the region. The property is attracting keen interest in the market and analysts said it indicates the market for luxury properties remains strong as ever. The 240-apartment property is being developed by Ambience Infrastructure Pvt. Ltd, a company promoted by Raj Singh Gehlot. Located 800 metres from the toll gate on the Delhi-Jaipur expressway of national highway 8, the 150-acre site borders the vast Rajokri greens. The smallest apartment in the Ambience project - The Caitriona - has a basic sale price of Rs 9 crore, while the largest carries a basic tag of Rs 11.31 crore. There are other charges that buyers have to bear: for preferential

Realty market investment to rise to $20 bn Investment in the Indian realty market is likely to increase to $20 billion by 2010 with a boost from Real Estate Mutual Funds and Real Estate Investment Trust, a recent report said. "The sector, which is growing at an annual rate of 30 per cent and is currently worth $12 billion, will get a further boost from the Sebi's Real Estate Mutual Fund (REMF) and the Real Estate Investment Trust (REIT) regulations," a report by Deloitte said. "The Indian real estate sector has emerged as one of the most appealing industries for both domestic and foreign investors and is presently the second-largest employing sector linked to about 250 ancillary industries," Deloitte Hakins & Sells' Partner Jayesh Kariya said. "Currently, investments of over $1,400 billion are being made by REITs globally and we expect these investors to start looking at Indian realty," he added. Both REIT and REMFs are investment vehicles whic

Residential Projects Are Feeling The Heat: register a 25% slump Till recently, houses were selling like hot cakes, naturally driving up the realty prices. While some builders might still be quoting high prices, the fact is the number of transactions have fallen. In fact, after land prices, residential projects are feeling the heat of the US subprime crisis and poor market sentiments. The most hit is the North India property market with project sales witnessing a steady dip in transaction volumes. New project launches and even the ones that were announced earlier are not finding enough buyers. Even figures from RBI are a glaring evidence of the slowdown in transaction volumes over the last year. As per RBI data for 2007-08, growth in bank credit in housing has gone up from Rs 2,24,758 crore to Rs 2,51,668 crore, an increase of just 11%. Compare this with bank credit growth in FY07 and FY06 that stood at 24.72% and 38.31%, respectively. Projects in prime markets such as Delhi/NCR, Chandi

Business Players Ready, Set, Go! For The 20th Commonwealth Games 2010 Just one look around New Delhi is enough to show that the 20th Commonwealth Games are approaching and approaching fast. The capital city is being turned inside out in an effort to dress it up for the games in 2010. While the preparations may spell chaos for the inhabitants of the city, the emerging business opportunity is a godsend gift for thousands of big, medium and small Companies. Hundreds of projects are up for grabs. Everyone from Indian real-estate giants to foreign Sports infrastructure majors and from hospitality bigwigs to training experts is gearing up to bite a slice of the Games pie. While some projects have been launched, others are still on the drawing board. With the government opening its war chest for the Games, the interest from the corporate sector is understandable. A look at the written reply by Mani Shankar Aiyar, Minister of Youth Affairs & Sports, to a question by an MP recently gives a

GDA Board Clears Rs 2249-cr Budget And Doubled Infrastructure Budget From Rs 1,173 cr To Rs 2,249 cr The Ghaziabad Development Authority (GDA), in its board meeting, doubled the infrastructure Budget from Rs 1,173 crore to Rs 2,249 crore. The board meeting, which was chaired by the State Principal Housing Secretary Harjinder Singh, passed the budget for infrastructure development. Although 48 proposals were included in the meeting but 34 proposals were taken into consideration out of which 28 proposals were passed. The board meeting passed the proposal to extend the Delhi Metro Rail Corporation (DMRC) track from Vaishali to Central Industrial Security Force (CISF) complex via Vasundhara, Kinaoni and Indirapuram. The board further passed the proposal to revise the Detailed Project Report (DPR) of the Metro track from Dilshad Garden to New Bus Stand at Ghaziabad. The GDA board passed the budget of Rs. 2,249 crore for the year 2008. The income has been targeted at Rs 1,173 crore from diff

In what could mark its foray into the real estate and hospitality sectors, Reliance Industries has sealed a $1-billion joint venture with the New York Stock Exchange-listed Vornado Realty Trust to set up a real estate fund that will develop a network of mega malls and highway shopping centres in India, not just for Reliance Retail (RRL) but also others. Reliance is also in talks with the Canada-based Four Seasons Hotels and French group Accor to set up hotels at some of its properties in Mumbai and Ahmedabad. The RRL spokesperson, however, declined to comment. The joint venture with Vornado (ET had reported in February that the two were in exploratory talks) is Reliance’s fifth global partnership in three months—the other four being with Marks & Spencer, Vision Express, Miss Sixty and Office Depot. However, the latest partnership is important as it would deal with real estate acquisition and management, which is crucial for the viability of any retail company. Most retailers are bl

DIVERSIFICATION OF portfolio is the first rule of investment as it is insisted by any ethical professional. Usually, not more than 30 per cent of available investment funds should be assigned to any one category, including bonds, stocks and other savings instruments form one leg of a many-pronged platform. Direct commodity investment is a very risky venture, but it is safe only for the experienced investor who has time to monitor the market closely. So what else is left there? For many investors, investment in real estate is an essential part of a well-rounded portfolio. Real estate offers a wide range of opportunities, if you want to include ’paper’ in your investment scheme. Real Estate Investment Trusts (REITs), options, property oriented mutual funds and other mortgage backed securities are presently in disarray. REITs are entities, which invest in real estate related properties or assets that include office buildings, hotels, shopping centres and mortgages secured by real estate.

Setting a new benchmark for apartments in the super-luxury segment in the national capital region, a local developer is offering 7,672 square feet of super area at a basic price ranging between Rs 13,500 and Rs 14,750 per square foot (sq ft), the highest in the region. The property is attracting keen interest in the market and analysts said it indicates the market for luxury properties remains strong as ever. The 240-apartment property is being developed by Ambience Infrastructure Pvt. Ltd, a company promoted by Raj Singh Gehlot. Located 800 metres from the toll gate on the Delhi-Jaipur expressway of national highway 8, the 150-acre site borders the vast Rajokri greens. The smallest apartment in the Ambience project – The Caitriona – has a basic sale price of Rs 9 crore, while the largest carries a basic tag of Rs 11.31 crore. There are other charges that buyers have to bear: for preferential location, an open terrace with the penthouse apartment and two car parking spaces for Rs 6 lak

Landslide: Realty is facing a major cash crunch NEW DELHI: Land prices in the national capital region (NCR), Mumbai suburbs, Bangalore and Hyderabad have corrected by up to 25% as property developers slow down their land purchases. Poor sales and lower availability of credit at higher cost have prompted property developers to end the mad rush to acquire land. Some of the developers have even backed out of land deals which were agreed upon as the slowdown hit the sector. Prices have come down by up to 25% in Mumbai’s distant suburbs, including Thane and Belapur, and pockets of Hyderabad and Bangalore, according to property consultancy firm Knight Frank India. Prices in the NCR, with an exception of Faridabad and Delhi, too have witnessed a correction of up to 25%, says a senior Unitech executive, adding that transaction volume has dried up. Land prices in Faridabad have risen 10-30% in the past 3-4 months. However, Faridabad is just catching up with its neighbouring locations. The price

At a time when the burgeoning middle-class and high income people are becoming preferred target for property developers, realty firm Omaxe has lined up a 20-billion dollar (Rs 80,000 crore) investment to develop 10 lakh ‘affordable’ homes for low-income consumers. The company is planning to offer these housing units, to be developed in the next five years, in a price range of Rs 3-15 lakh per flat, sources said. However, these units may not come up in metro cities like Delhi and Mumbai due to high land costs and the company is rather targeting tier-two and three cities such as Sonepat, Nimrana, Bhiwadi, they added. BSE-listed Omaxe has set up a new subsidiary 'National Affordable Housing and Infrastructure Ltd' to develop these affordable housing units. When contacted, Omaxe Chairman and Managing Director Rohtas Goel confirmed the development and said, "We will deliver 10 lakh affordable housing in the next five years". However, he did not wish to comment on the inves

Mukesh plans big for real estate, goes headhunting Mukesh Ambani-led Reliance group is planning a splash in the real estate business, for which it has initiated a process of recruiting large number of professionals to work on its captive as well as independent business projects. The country's largest corporate house is seeking professionals with at least 15 years of "hands on experience" with major civil constructions, hotel chains, interior designers, architects, real estate developers as well as contractors and engineering consultancy Companies working in this field for its real estate projects. In an advertisement inviting job applications for real estate projects, Reliance Group said that the potential candidates should have "worked on and successfully completed projects for major residential complexes, 5-star hotels, malls or IT office complexes in India and abroad," the group said. "Reliance Group has substantially large portfolio of real estate proje

Landmark Group to invest Rs 4,000 cr in 12 projects Real estate developer Landmark Group on Thursday said it will invest over Rs 4,000 crore in developing 12 properties across the northern region in the next 3-4 years. "Currently our 12 projects are undergoing in North India, which will be completed in the next 3-4 years. We will be investing about one billion dollar in developing these projects," Landmark Group Director Amit Kumar told reporters here. The company would fund the projects through internal accruals and raisings from private equities, he said. "We will try to fund our projects through our own resources, but also, we do not mind private equity players' participation. Starting from 25 per cent, we are ready to sell up to 40 per cent to PE players in different projects," he added. The NCR-based firm has planned to develop three hotels, two five star and one budget hotels in the next three years, which could entail an investment of about Rs 700 crore.

Jaiprakash Associates is learnt to have acquired the entire 165 kilometres of land it needs to build an expressway between Greater Noida and Agra. The company earlier had only 7.2 kilometres of land in its possession, a company executive said. Jaiprakash Associates is building the 165-kilometre-long Taj Expressway through the majority-owned unit Jaiprakash Infratech Ltd, created specially for implementation of the project. Bharat Parekh, Reena Verma Bhasin and Joseph Jacobelli, Merrill Lynch analysts, said the entire 165 kilometres of land was acquired last week. Jaiprakash Associates organised a roadshow for US investors last week to highlight the acquisition. "This (the land acquisition) should create the room to boost engineering and construction revenues from the second half the fiscal year 2008-09," the Merrill analysts said in a note Tuesday. The company is also likely to get about 160 acres of land for real estate development at Noida next week, taking the total to 107

Thanks To Indira Gandhi International (IGI) Mess, Noida airport may become a reality The international airport at Greater Noida may end up becoming a reality after all -- and not because of a push from the Uttar Pradesh government led by Mayawati but thanks to a growing realisation at the Centre that their plans for capacity addition at the Indira Gandhi International (IGI) airport in the capital has almost fallen flat. The civil aviation ministry officials and the Planning Commission were in for a rude shock on Monday, when during a review meeting on the modernization of the New Delhi international airport, they found that IGI's expansion, decongestion and modernization plans cleared by the Cabinet about a year back, have already proven insufficient. Following the stock taking done by Planning Commission Deputy Chairman Montek Singh Ahluwalia on Monday, the authorities realised that there is hardly any space left for expansion and no amount of changes in the design can do away the

Development Projects In Cold Storage In Greater Noida Due To High Prices of Building Material Sharp rise in prices of building material appears to have put quite a few development projects in cold storage in Greater Noida. The current prices of cement and steel have become a big problem for the construction companies. The cost of construction has reportedly increased by 30 per cent during past three months, stalling work on numerous projects. In Greater Noida alone, projects worth crores of rupees have been put into cold storage. Prices of cement, steel, diesel, petrol and other materials have been hiked, which in turn have adversely impacted a number of projects. According to the secretary of NCR Construction Management Association, Kuldip Singh, six months ago the construction cost per sq ft was at Rs 700 which had risen to Rs 830 per sq ft by March 2008 and now it stands at Rs 910 per sq ft. It has made completion of works, the tenders for which were procured three to six months ago

Builder Must Pay Compensation For Delay In Delivering Flat A Builder cannot refuse compensation to a buyer if he fails to keep his promise of handing over possession of a flat within a stipulated time, the national consumer court ruled on Monday. The court said the builder also cannot pay less than the agreed amount of compensation, on the plea that the price of the property has gone up and, therefore, the buyer stands to gain anyway. What It Means There is no way the builder can avoid paying the fixed compensation in case of delay in flat possession Make sure not to forget the compensation clause in the agreement paper. "Such a contention of any builder is unjustified and unreasonable because after sale of the property all the benefits accrue to the purchaser and not to the vendor," the National Consumer Disputes Redressal Commission said. "In any case, if such contention is accepted, the builders/contractors would earn crores of rupees by delaying the delivery of pos-