IL&FS Engineering wins Rs 244.46-crore housing project in Haryana

NEW DELHI: Infrastructure company IL&FS Engineering and Construction (IL&FS Engineering Services) today said it has received a contract for construction of a Rs 244 crore housing project in Haryana.

“IL&FS Engineering Services has received a Letter of Award (LoA) from Emaar MGF Land Limited for construction of civil structure… works of 150 numbers of residential villas “Marbella” (G+2 Storey building, including basement) at Sector 65 & 66 in Gurgaon, Haryana,” the company said in a statement.

The total value of this contract is Rs 244.46 crore, it said, adding, the project is scheduled to be completed in 30 months.

The company is already executing two buildings and structures projects for Emaar MGF – Palm Terraces Select Housing Complex at Sector 66, and Palm Garden Housing Complex Project at Sector 83 in Gurgaon, entailing Rs 475 crore investment.

The company executes projects under various domains like buildings, roads, railways, irrigation, power, ports and oil & gas.

Shares of the company closed at Rs 28.75 apiece, up 9.94 per cent from their previous close on BSE.

Source : http://economictimes.indiatimes.com/markets/real-estate/news/ilfs-engineering-wins-rs-244-46-crore-housing-project-in-haryana/articleshow/22550898.cms

Gurgaon:Sohna Road sees high demand for smaller commercial units

Delhi NCR

The corporate houses in Gurgaon are moving from bigger commercial office spaces to smaller offices. Sohna Road is one such destination that has become their preferred choice. Industry experts say that such trends in the commercial real estate are due to the sluggishness in the economy. “The transition from bigger office spaces to smaller units in Gurgaon has certainly channelised the demand for commercial real estate in Sohna Road. Apart from this, the lower rental values are what corporate houses are looking at,” says Ajay Bajpai, proprietor, Homes2offices.

Where rental values of commercial space in DLF Cyber City ranges from Rs 75-100 per sq ft, and at MG Road from Rs 75-150 per sq ft depending upon the furnished and unfurnished state, Sohna Road offers the commercial space in the range of Rs 40-60 per sq ft.

Although there is not much difference in commercial rental values in the premium commercial areas such as DLF Cyber City, MG Road and Sohna Road, companies still opt for Sohna Road as it offers smaller units.

Gaurav H Luthra, director, Foots and Yards, a city based realty firm says, “In an unfavourable macro-economic environment companies are cutting costs and are thus, interested in taking up smaller units”.

The minimum space available in DLF Cyber City is 3000 sq ft and at MG Road it is 1000 sq ft. Sohna Road,on the other hand, offers a wide range of options from 800–30,000 sq ft.

Apart from this Sohna Road also boasts of good connectivity. It is well connected to NH-8 in the north and is intersected by Golf Course Extension Road towards the south. According to Gurgaon’s new Master Plan, Sohna Road will be developed into a state highway. Already, work on converting it into an eight-lane road is underway. The master plan also shows a Southern Peripheral Road which will intersect Sohna Road near Vatika City in Sector 49.

Stating another reason for corporate houses showing their interest in Sohna Road, Pankaj Bansal, proprietor of Oxford Realtors and Arbitrators, says, “The real estate opportunities with corporate houses are quite few. They are not capable of, or are not in a position to earn big money after bearing high cost in terms of rental values and maintenance charges”.

Source:http://content.magicbricks.com/gurgaonsohna-road-sees-high-demand-for-smaller-commercial-units/

Real estate investors go slow, home buyers in NCR to benefit

Delhi NCR

A lack of activity from the investor and underwriter segments is increasingly leading to a situation where real estate developers have no choice but to cater to the requirements of an end-user – as a result, a home buyer is in a better position to negotiate and take benefit of the softening prices.

It is due to the upcoming general elections and volatility in the national and global financial order, investors have adopted a cautious approach.

“Underwriters enter the market for short-term gains. Their presence may provide developers a sense of comfort, but at the same time, it results in escalated prices, of which an end-user has to bear the brunt,” says Abhay Kumar, chairman and managing director, Griha Pravesh Buildteck.

This is why, developers in the NCR cities such as New Delhi, Gurgaon, Noida, Faridabad and Ghaziabad, are seen fine-tuning prices to keep the ball rolling.

For instance, in sectors 76, 77, 119 and 120 in Noida, 1,000-sq ft multi-storey apartments that had touched the levels of Rs 50-52 lakh in the beginning of 2013, are now available in Rs 45-48 lakh.

“The recent price correction is a result of withdrawal of investors from various projects,” said Aman Agarwal, director, KV Developers.

Property prices in many parts of Gurgaon such as sectors 84 and 92 are down by 10-15 per cent as compared to the prices that prevailed until March 2013. A similar trend has been observed in Kaushambi and Vaishali areas of Ghaziabad as well.

The prime South Delhi areas such as Vasant Vihar and Defence Colony are reportedly witnessing a correction of 20-35 per cent, mainly because of cash-strapped investors who are now losing their patience and want to liquidate their holdings. Thus, a 1,000-sq ft apartment which was earlier priced at Rs 4.5-5 crore in these areas could now be purchased in Rs 3.5-4 crore.

Source :- http://content.magicbricks.com/real-estate-investors-go-slow-home-buyers-in-ncr-to-benefit/

Demand spikes prices of luxury housing in Gurgaon

Delhi/NCR

The luxury housing market of Gurgaon is currently registering greater end-user demand, in contrast to the previous trend of the investment-driven purchases. The sale of luxury projects has gone up by nearly 30% in past few years-with end users and foreign nationals not averse to pay a steeper price for the world-class lifestyle features that most of these projects boast, demand has spiked, along with appreciation in their value.

Luxury and ultraluxury housing projects in the price range of Rs 1-15 crore in the residential market of Gurgaon like Dwarka-Gurgaon Expressway, NH-8, and Golf Course Extension Road are being snapped up eagerly, spurred by new product offerings, greater end-user demand, and an increasing upwardly-mobile segment. The capital value of these luxury apartments varies from Rs 6,000-15,000 per sq ft depending upon the services offered and their location.

With rising aspirations, better infrastructure, and proposed mega projects in the vicinity, Gurgaon is expected to keep on the growth track in this segment of the housing sector. Keeping this trend in mind, developers like DLF, Ansal API, Sobha Developers, Chintels Ltd, ATS, Godrej Properties, Raheja Developers, Homestead, Adani, Puri Constructions, Ireo, Vatika, Tata Housing, Oberoi Realty, Assotech Ltd, Supertech Ltd, etc, are partnering with international players to design exclusive apartments and condominium space here.

Ireo has roped in the international hospitality chain Hyatt Hotels to introduce its branded housing product, Grand Hyatt Residences, in Gurgaon, which will be managed by the hotel firm. To cost between Rs 11 crore and Rs 25 crore-or even higher-the owners of these exclusive apartments will enjoy hotellike facilities like valet service, concierge, laundry, in-residence dining, housekeeping, etc.

Residents would also be able to walk down to a nearby 7-star Grand Hyatt hotel, an office complex, and an opento-sky market in the 29-acre integrated complex set to come up on Golf Course Extension Road. South India-based Sobha Developers is building an ultraluxury project, International City, in Sector 109, 106, and 108 on Dwarka-Gurgaon Expressway.

International City is a 150-acre exclusive villa community in the vicinity of the IGI airport and is on a 25 minute drive from the posh south Delhi areas like Vasant Vihar, West End, Shanti Niketan, as well as the business hub of Gurgaon. With just six villas per acre and ample green and open spaces, International City offers low-density villa living right at the edge of Delhi. International City offers exclusive presidential and duplex villas along with large, landscaped open spaces, a secured community living, planned roads with broad, tree-lined walkways, a spokesman of the firm said. Launched in 2011, International City is being built by Sobha Developers in association with Chintels Group and QVC Realty Co.

Homestead Infrastructure, a Londonbased real estate player, has announced a new luxury residential project in Sector 73, Gurgaon, in association with sports icon and tennis superstar, Maria Sharapova. The developer

has also roped in UHA-London, Indian architect DFI, and Halvorson & Partners to execute the project. Homestead Infrastructure, which focuses on building niche and branded houses, recently launched its first project, Michael Schumacher World Tower in Sector 109 on Dwarka-Gurgaon Expressway.

Manoj Shrivastava, COO of Homestead Infrastructure, says: “This project is located in one of the prime sectors of Gurgaon and the current product is being designed for elegance, style, class, and perfectionhence we chose Maria Sharapova as the brand ambassador.”

Maria Sharapova Tower is in Sector 73, within a suburb called Golf Course Extension, an emerging residential and commercial hub; it offers 4- and 5BHK luxury apartments.

Top realty player DLF has plans to develop DLF Garden City over 450 acres in Sectors 86, 87, 90, 91, and 92. This zone will comprise group-housing, commercial, and plotted development. Garden City comprises projects like Primus, Regal Gardens, and New

Town Heights, plotted development, and a commercial complex, Galleria 91. Galleria will house multiplexes and anchor stores.

Alpha G:Corp is set to build a 12.5-acre residential project in Sector 84, Gurgaon, with 670 apartments; adjacent to the 210-meter-wide forthcoming expressway that connects Dwarka and the IGI airport, the project is around 2.5km from the Metro hub and the Inter State Bus Terminal planned in the Gurgaon Master Plan-2021.

Paras Buildtech is developing a luxury project, Paras Quartier, on Gurgaon-Faridabad Road. The project has a spiral Iconic Tower and two grand condominium towers. Iconic Tower offers lavish amenities in its 4BHK units like family lounge, modular kitchen, contemporary bedroom, separate service corridor and balconies with glass all around.

Harindra Nagar, MD of Paras Buildtech, says: “Paras Quartier’s unique private clubhouse delivers a stunning modern design. It has a sports center, squash courts, and facilities for table tennis, card-billiards, etc.” Puri Construction has two high-end luxurious projects, Diplomatic Greens and Emerald Bay, in Sector 104 and Sectors 110-111 respectively. Diplomatic Green is a 20-acre residential, gated property that’s part of an 82-acre master plan of mixed development inclusive of hotel, retail, and commercial spaces.

Encouraged by the launch of Supernova, one of the tallest mixed-use realty projects in Sector 94, Noida, Supertech Ltd has recently embarked on an integrated township project over 200 acres in Sectors 68 and 79, which will offer high-end luxurious residential housing.

R K Arora, CMD of Supertech Ltd, says: “With rising demand in residential, office, retail, and hospitality sectors, Gurgaon is a prime development corridor in the country. A large number of white-collar jobs have been created in Gurgaon after it emerged as a hub for MNCs, IT and IT-enabled services. Transportation facilities with other neighboring states, close proximity to the IGI airport, and Metro rail connectivity to Delhi, have all added to its position as a preferred residential as well as commercial destination.”

Harpreet Singh Batra, MD of Imperia Structures Ltd, says: “Gurgaon continues to rule the NCR realty market and is a favourite among end users and investors as it promises high returns, while providing a secure investment environment. The biggest strength of the city lies in the massive employment opportunity available, which translates into strong demand for housing in peripheral areas as well.”

Source: Times Property, The Times of India, Delhi/NCR

New industrial policy fixes time for setting up units

Delhi/NCR

The Noida Authority has decided to do away with a policy that provided industrial plot allottees extended periods for setting up functional units. This clause allowed allottees to pay insignificant amounts as penalties in lieu of delay in running units. The move is expected to put industrial development on the fast track.

The city’s industrial association said that according to the latest scheme launched by Noida Authority for allotment of industrial plots, allottees would not be allowed to hold on to their plots after three years if they do not set up functional units. The Authority recently launched a scheme for allotting industrial plots in Phase-II and Phase-III industrial areas through a lucky draw scheme.

Industries affiliated to the Noida Entrepreneurs’ Association (NEA) said that the move will help improve industrialization in the city as it will prohibit purchase of industrial plots for investment in land. The association said clauses in the scheme, however, confer upon the Authority the right to allow for extensions in genuine cases. “This would ensure protection for genuine investors who want to set up functional units,” said Vipin Malhan, president, NEA.

At the same time, the association claims that setting up functional units within a set time period would not be a constraint for well-financed investors. Industrialists said there were delays earlier in setting up functional units because the Authority used to allot industrial plots in those sectors that were not well-developed in terms of infrastructure, like roads, water or electricity. “The region where plots are being allotted at present are in well-developed sectors with all back-up facilities needed for industries,” said Malhan.

Source: The Times of India, Delhi/NCR

Rising defaults by short-term realty investors add to developers’ woes

Delhi/NCR

Short-term real estate investors, a source of quick funds for housing projects, are increasingly defaulting on payment to developers, as economic slowdown and rising cost of living keeps regular homebuyers on the fringes, narrowing exit routes for speculators.

A large number of such investors— who generally buy multiple properties and sell them in six to eight months for quick gains—are approaching developers for refunds, and in some cases even taking them to court, according to some real estate consultants.

“The number of defaults by short term investors has gone up in recent months,” said Navin Raheja, president of National Real Estate Developers’ Council.

India’s property market has slowed over the last few quarters. The slump is more pronounced in its housing segment, where developers are offering discounts to push sales. In the resale market, homebuyers are ready to wait it out. This has not just raised inventory and pinned down prices, but also shrunk the pool of buyers that shortterm investors target.

“A developer’s cash flow goes for a toss when investors don’t pay up,” said Samarjit Singh, managing director of IndiaHomes, a property broking firm. “Cancelling a booking is the worst option for a developer.”

According to property consultants, short-term investors have cornered 50%-60% of newly built homes on the Dwarka-Manesar Expressway in Gurgaon and about a third of homes coming up in Noida-Greater Noida Expressway. The equation would be similar for the different suburbs of Mumbai, they said.

While some speculators managed to exit these properties before the slowdown set in, a large number of them are still stuck for want of buyers. Many over-leveraged investors who had picked up properties in the last one year are now willing to offload apartments at handsome discounts, sometimes even going up to 30%.

While the discounts are a big attraction, the sentiment in the property market because of the higher inflation, jobs cuts, increasing interest rates and an environment of massive uncertainty all around is pushing end-users to stay away from the real estate market.

Real estate speculators generally pay 20%-30% of an apartment’s value over about six months. When the housing project developer increases prices, these short-term investors sell their apartments to either other investors or end-users at a profit.

“These were the investors who would bring in the much needed liquidity for the developer at the beginning of a project,” said Santhosh Kumar, chief executive officer, operations, at Jones Lang LaSalle India.

According to a Noida-based broker who did not wish to be named, developers generally use such investors to increase prices. “Many developers would offer special rates to them for coming in early, sometimes even before all approvals for a project are in place. The investor was happy because he entered the project at a much lower price than a regular buyer and exited with a good profit,” the broker said.

In view of the situation, some property developers are keeping short-term investors out of their newly launched projects. “They are weeding out such investors by running personal wealth checks on potential investor and asking them for their bank statements before selling homes,” said Abhay Khemka of Khemka Investments and Properties in Gurgaon. “They are also asking brokers to do tougher due diligence before bringing in investors.”

Source: The Economic Times, Delhi/NCR

‘Sectors 83 and 92 in New Gurgaon offer affordable property’

Gurgaon is an entity by itself when you talk about real estate. Because it is the premium commercial real estate that first drove Gurgaon, the tag of ‘premium’ even in residential real estate has stuck to Gurgaon. Having said that, the area is witnessing demand from all segments of the society – from affordable to high-end. In conversation, Adesh Munjal, proprietor, Homes2offices talks about the areas to invest in Gurgaon and in what budget. Excerpts from his interview with Neha Nagpal, Magicbricks.com Bureau:

Economy is wavering, job market is slow. In such bleak economic conditions, do you think it wise to invest in residential real estate market in Gurgaon?

In today’s economic scenario, property investment makes sense when it is done keeping the mid – long term investment in mind i.e. 3-6 years or more. Short term Investment will not reap much benefits. Residential market is volatile right now and no one wants to invest in an under construction property with a tag of Rs 1.25 crore or more.

Which areas are best to invest in that ensure good returns and why?

Those who are looking for early possession, then projects on the Southern Periphery Road (SPR) are a good buy. Most of these projects are either ready or will be ready in the next one-one and a half years. Sohna Road has already come up as a commercial hub with most of the facilities like schools, hospitals, markets etc nearby. Proximity to Sohna Road and NH-8 is also a major advantage. Average investment on SPR is somewhere around Rs 1.20 crore.

Another area for investment is New Gurgaon (Sectors 83-92). For investors looking for long term gain the prices are currently between Rs 3,500–5,500 per sq ft, which are on the lower side as compared to other areas. New Gurgaon has future potential because land has been earmarked for many public utilities such ISBT/MRTS and other recreational activities.

Which unit size sells best in Gurgaon and why?

The unit size selling best in Gurgaon ranges from 1000-1400 sq ft (2 & 2+1BHK). Many Investors and end users prefer to buy apartments in these sizes because of the low amount of investment involved.

Which budget range is most in demand in Gurgaon?

Property in prices ranging from Rs 60 lakh to Rs 1.25 crore is most in demand in Gurgaon. Infact, there is hardly anything available in the budget range of Rs 25-40 lakh.

Source :- http://content.magicbricks.com/sectors-83-and-92-in-new-gurgaon-offer-affordable-property/