Real Estate Gurgaon

Thanks to a special economic zone (SEZ), the Haryana farmers have landed bang in the middle of money economy. Those who sold off their land for an SEZ near Gurgaon are now innovating with their newly found money, much in the manner of private equity firms.

These farmers want to know more about mutual funds, stock markets and other capital market investment options. "A few banks have already held special camps in the villages of this district offering investment options. While fixed deposits are still preferred, there are some farmers who have already invested in mutual funds and other instruments," says Satinder Juhan, sub-divisional magistrate, Jhajjar district.

Last year, Reliance Industries acquired 7,000 acres of land paying Rs 1,600 crore in Haryana, from Pataudi Village to Jhajjar, for an SEZ spread in 25,000 acres. While the most common investment option has been to reinvest the funds in land in other districts, there have been instances where farmers have purchased vehicles for leasing them out to call centres.

Juhan says land being an emotive issue, many of those who had sold land for the SEZ near Gurgaon have bought land in other districts. However, there have been instances where they have invested in transport businesses and commercial real estate Gurgaon and adjoining areas.

Ram Prakash (name changed) had sold 3.79 acres last year for the SEZ and received a sum of Rs 83.38 lakh. He has bought 25 Tata Sumo vehicles and leased them out to a call centre in Gurgaon. Prakash has funded the purchase of the vehicles through loans from a nationalised bank after paying the minimum down payment and has parked a large part of his liquid funds in the same bank as fixed deposits — a model similar to a leveraged buyout.

"I want to take the transportation business to new heights," says Prakash whose younger son studies engineering at Faridabad and the elder one assists him in his new enterprise.

His neighbour Krishan Singh has also taken a similar course. He paid Rs 4 lakh to purchase four Mahindra Bolero vehicles, leased them out to a call centre, and parked about Rs 80 lakh in the same bank from which he has borrowed money to buy the vehicles.

Mahaveer Kumar (name changed), who had also sold off land for the same SEZ at Jhajjar, is considering investment in the real estate projects promoted by firms such as Omaxe and Unitech. "I plan to save a portion of the money I received for my children's education whom I plan to send out for a management degree," he said.

There are others who have invested in brick kilns and associated businesses, while some are awaiting opportunities in the SEZ to emerge.

Resource://hindustantimes.com

The real estate boom in Tier 2 and 3 areas continues unabated. This has led to various players in the real estate and construction sphere looking beyond Delhi at NCR as a focus of their activity. One such player is the SRS Group.

The ISO 9001: 2000 certified SRS Group has a diverse portfolio that includes finance, retail, multiplexes, malls, tea, oil, rubber products, entertainment and hospitality. The fast growing group has a turnover of Rs 300 crore, made possible by its handling of many different projects and targets Rs 2000 crore turnover within 5 years.

A group company, SRS Real Estate Ltd, spearheads the SRS Group’s foray into the real estate sector. The company is engaged in the construction of both residential and commercial complexes all over NCR and northern India. According to Dr Anil Jindal, Managing Director, SRS Group, “We don’t compromise on quality. Keeping in mind the mushrooming growth of the construction sector, where customers have a plethora of options, we are committed to using the best construction material for meeting customers’ expectations from us. Timely delivery is the essence of our business philosophy”.

Completed projects from SRS Real Estate Ltd, include SRS World at Faridabad; SRS Gurgaon; amongst others. Amongst the major upcoming projects of SRS Real Estate Ltd are integrated townships- SRS City, Sector 6, Palwal; SRS Residency, Sector 88, Faridabad, spread over 80 acres; SRS Regency, Sector 87, Faridabad- ; 5 star hotel on main Mathura Road spread over 19 acres, comprising a helipad, commercial mall and service apartments, etc.

SRS City, Sector 6, Palwal is located just 3 kms from Palwal railway station and walking distance from the main Mathura Road. The area is on a fast developing track as it is only 20 kms from Faridabad, which is a major industrial hub.
The integrated township offers residential plots, flats, villas and a shopping mall cum multiplex, set amidst pollution-free sylvan surroundings with 60% green/ open space ratio.

Resource://indiatimes.com

By making 14,930 hectares available for residential, and 1,404 hectares for commercial development, the new Gurgaon Masterplan is expected to boost in real estate Gurgaon development . Market sources expect the new supply could be good news for the middle-class— apartments at Rs 2,000-2,500 per sq ft in a market where very few are available for less than Rs 2,700 per sq ft.

This could also lead to some price correction in developed areas, say realtors.

Prices in the new sectors being created under the plan will be at least 30-40 per cent lower than in existing sectors, said Pradeep Jain, chairman, Parsvnath Developers. “You can expect the same rate differential between Noida and Gr Noida in Gurgaon and Greater Gurgaon,” he said.

With more land becoming available, he said, developers will start focusing on the middle and lower segments and not only on high-end housing as they have been doing so far.

“Infrastructure will have to be developed fast in the new sectors,” he said. “It will take at least four years before the first project is ready but demand will keep growing. So it’s difficult to see how prices will fall in sectors.”

“Secondary market prices in areas like Gurgaon-Sohna Rd have already seen a correction of about 10 per cent in the last six months. I expect a further correction of 10 per cent as more supply becomes available in the newly demarcated sectors, and as investors exit closer to the date of delivery of projects,” said Rajeev Behl, director, Realtech Group, a developer in Gurgaon. He said sectors near the Golf Course Road and along NH-8 will see hectic development activity in the near future.

According to market sources, DLF, Unitech, Pioneer Urban Land & Infrastructure, Vatika, Raheja, Vipul, Emaar-MGF, and Ambience group are the key players who have “land banks” in the newly demarcated sectors, and could be expected to launch projects in the near future. “We expect to launch four projects within the next two to three months,” said Navin M Raheja, MD, Raheja Developers. The group is planning six projects of about 6,000 apartments in some new sectors.

Developers are cagey about revealing the price band at which they will launch their projects. Market sources, say Raheja’s projects in new sectors like 78 and 88 could be priced around Rs 2,200-2,500 per sq ft at the time of launch.

Prior to the notification of the masterplan, very few new projects were being launched as most of the land available in residential zone of the previous masterplan had exhausted. And whatever was launched was priced at Rs 2,700 per sq ft and above. Most of these were small projects on less than 10-12 acres. “Expect large projects of 100-150 acres to be launched,” said Rajan Ahuja, director, Reality Vertical.

“In sectors situated near Golf Course Road, rates will be high, close to Rs 5,000 per sq ft. A project near Sohna Road would be priced at marginally less than Rs 3,000 per sq ft. It is only in the distant sectors that apartments priced at around Rs 2,000-2,100 per sq ft will be available,” said Ahuja.

End-users will have to be alert and rush in to apply as soon as there’s a project launch. “Since rates will be low in the new sectors, investors will try to corner a large portion of the supply,” said Ahuja.

Moreover, in most prime areas in new sectors, plots are unlikely to be available. “It is only further ahead on Sohna Road (near Badshahpur) that larger township type projects will be launched. The rates of plots in projects along NH-8 will be around Rs 20,000-25,000 per sq yd,” said Bansal of Akal Constructions.

“Rates for group housing in Manesar will be in the range of Rs 2,000-2,200 per sq ft,” he said. “Buyers who prefer buying directly from builders and paying in ‘white’ rather than from the secondary market because they can get loans for such purchases but had in recent times been driven out of the market by the high rates, will be able to buy projects in the new sectors,” said Pradeep Mishra of Zion Consultancy.

Source://expressindia.com

Lying dejectedly on the outskirts of Delhi, Gurgaon today, having travelled a long way, stands tall as the favoured investment hub for NRIs and the preferred destination for realty giants.

A few years ago, the real estate industry, having exhausted its potential in the capital, started investing in the National Capital Region (NCR) in the hope of minting some profit. Faridabad, Ghaziabad and Gurgaon - all enjoyed their fair share of investment which saw the opening up of malls, multiplexes, residential projects and townships.

While the other two merely grunted and gulped the investments that poured in, Gurgaon showed such overwhelming promise that realty giants were shaken out of their reverie and both national and international real estate companies began to take this area seriously.

The results are there for all of us to see.

The last five years have not only changed the look and feel of Gurgaon but have also redefined the property development graph of the nation. Who would have thought that the concept of 'malls', which acted as major crowd pullers abroad, would become big ticket items here? Would anyone have imagined that Indians would start living in apartments and townships which could put their international counterparts to shame? And who could have anticipated that land prices in Gurgaon would soar through the roof?

Yes, by the looks of it, Gurgaon has arrived. And what is more it is most certainly enjoying its top notch position on the realty map. A fact vouched for by the recently released report on the developments taking place in Gurgaon by Propertyvertical.com.

According to the report, the real estate Gurgaon market (at the moment) is ideal for actual end users and not for investors, all thanks to sky rocketing prices. The residential real estate scenario is overall slow as not many new projects are being launched, but commercial real estate is definitively experiencing a boom.

In the last six months there has not been much appreciation in residential real estate. It has been stagnant. On the other hand commercial real estate has witnessed around 10 per cent appreciation in the rates with a premium of around Rs 3,000 added in the last six months.

There is no denying the fact that property prices in Gurgaon are climbing up at a maddening pace. In such a scenario, the report by Propertyvertical.com has made our task simpler and our guess about price estimates more accurate. Going by the report, in the normal to middle residential segment (Category C Projects like JMD Group, Bestech Group, etc) the rates range between Rs 2,000 to Rs 4,000/ sq ft.

Whereas in the upper segment (Category BProjects like BPTP, Unitech, etc,) the rates range between Rs 4,000 to Rs 6,000/ sq feet. Owning property in the luxury segment (Category A Projects like DLF, Emaar-MGF Group, etc) would cost beyond Rs 6,000/ sq ft. The resale value of these flats on an average works out to more than Rs 4,500/ sq ft. A built-up house in Gurgaon may cost somewhere between Rs 1 crore to Rs 7 crore which includes duplex houses with an area ranging between 200 sq yards to 1200 sq yards.

Construction in Guragon on residential land under HUDA norms is allowed upto three floors ie ground, first and second with the option of a basement. The construction cost on a residential plot would work out to around Rs 500-700 per sq ft. The high price of apartments/flats vis-à-vis lower demand has caused inventory to rise as the market continues to see new developments and new products. But for the lower segment of apartments ranging between Rs 3,000 to Rs 4,000 per sq ft, there is considerable demand.

The Gurgaon residential segment constitutes around 30-40 per cent of premium end apartments and the rest, ie 70-60 per cent of middle and lower end apartments. In Gurgaon alone, around 5,000 to 10,000 flats would be ready to move into in the coming year.

A quick glance at the price index shows that property rates in New Gurgaon, which includes Sectors 27-34, 40-45 till 57, DLF Phase I-V, Ansals Sushant Lok Phase I-III and the development on the Sohna Road like Mayfield Gardens, Nirvana Country, etc are somewhere between Rs 25,000 - 1 lakh per square yard.

Whereas property rates in Sectors 2-5, 14-17 which come under Old Gurgaon are Rs 25,000 per square yards on an average. Apartment rates vary between Rs 3,000 to Rs 9,000 per square foot. Sectors 18 and 19 are Gurgaon's industrial segments. In Old Gurgaon, industrial sectors 18, Sector 52 and 56 and areas like DLF and Sushant Lok are completely developed.

With major infrastructure development in and around the city, not only Gurgaon but also suburbs like Manesar, Kundli, Bhiwadi, and the Sohna Road are proving to be excellent investment opportunities.

Source://hindustantimes.com