Real Estate India

 As soon as inflation is controlled and the interest rates come down, the current slowdown in the real estate sector will seem temporary and the sector will perk up. The persistence of inflationary pressure in the market will further affect the recovery in the real estate sector. As the government measures to improve supplies of essential commodities, so far, have had limited impact on controlling prices, RBI is likely to further take harsh measures to push the interest rates up on July 29 when it review its credit policy.
  
Because of the central bank’s monetary measures taken so far to contain inflation, the interest rates on home loan have gone up by 2 percentage points - to over 12% in the last one year. Prior to this, the central bank, in order to contain the rise in the prices of real estate, had curtailed the flow of money to the sector. This has resulted in the rise in interest rates by over three percentage points between 2005 and 2007.
  
As the land cost and cost of construction increased substantially, builders find it difficult to cut the prices on the finished products to absorb the rise in EMI due to increase in the interest rates. Assotech MD Sanjiv Srivastava said that in the last one year, developers and builders have not increased the prices of their products while the input cost has increased by almost 30% to 50%. Therefore, he said, his profit margin has already been squeezed. And, any further cut on the prices of built up apartments and plotted houses will turn his business into a loss-making proposition.
  
Even in big city like National Capital Region of Delhi, builders have slowed down construction activities. A senior consultant said that the construction activities at present are concentrated in commercial real estate only, where demand is still there. In the residential real estate, he said, as demand has dwindled, developers are going slow in launching new projects.
  
As inflation is rising to touch 12%, bankers feel that RBI is likely to take measures that will push interest rate further up. If that happens, a banker said, the affordability factor will be affected very badly. This will have a direct bearing on demand for residential real estate. This will also impact the construction activities in the country.
  
Any slowdown in the construction activities will affect the future supply of the residential units. However, as demand for the commercial real estate continues to be good, the requirement for residential units will also be felt soon.
  
The consultant said that if the interest rate goes further up from here, the investors will feel the pinch. As their EMI goes further up, they would like to exit from their investments in real estate sector. This will increase the supply of the residential units, putting downward pressure on their prices.
  
Therefore, a consultant feels that this could be a good time for the end users to buy their sweet home. He said that it is unlikely that developers will bring down the prices of their products as this would result in a loss making proposition. He said that developers would be forced to bring down their prices only if the authorities, which own most of the land, cut land prices. He said that this would be possible if the downturn in the sector continues for a long period. But at present, it is felt that the present downturn is a temporary blip and the sector will revive as soon as inflation is brought down and interest rates come down. But, that will see the sudden jump in the real estate prices also. Therefore, the end users, consultants and bankers feel, should take advantage of current downturn in the property prices. At present, if you borrow at floating interest rate, you will have to pay high EMI as the rates are high. But, if the interest rate falls, your EMI will also come down.                                                            Courtesy:- ET dtd:- July 25, 2008 

                                                                                                Courtesy: - ET. Dt.23 July 2008

Parsvnath Developers has announced the launch of an ultra-modern township,

Parsvnath
Paliwal
City, at Panipat’s Sector 38 and 39. The project will cost of Rs. 235 crores. It has plots ranging from 250 sq. mtrs. to 836 sq. mtrs. Parsvnath would now develop the township in Sector 38-39 of Panipat.  

Devilal
Choudhary
Park and is spread over 162 acres. There will be group housing, shopping mall with multiplex, club with swimming pool, dispensary, school, taxi stands etc. Vast stretches of metallic and well-planned roads will stand out as another impressive factor.  The township is to be built keeping in mind the opportunities to explore the huge demand for quality services in this Haryana town.   

  such as wide roads, reliable power supply, 24 x 7 water supply, cycle tracks, and footpaths. These will be developed and maintained across the township by the developer.  The entire township is spread across 400 acres and will include schools, college, hospital, restaurants and a sports complex within its boundaries. The first phase of

Amanora
Park
Town will have 10 towers, each between 18-22 storeys high; hosting a sum of 680 apartments in the configuration of 2, 2.5, 3, 3.5 and 4 BHK luxury dwellings. The township will also allow its residents easy access to the latest technological innovations powered by Intel Inc. that includes paying for groceries with your thumbprint, monitoring family health status on your cell phone and ensuring the safety of your CCTV-protected home and garage from the convenience of your laptop.   In another interesting revelation, the township has been planned on the concept of a 999-year renewable lease which essentially would arbitrate in the event of any disputes that may arise from issues like non-payment of maintenance dues, clashes between residents over space usage, etc. The lease will also facilitate the timely collection of all payments and ensure that the machinery of the township functions normally.  Additionally, the rights of the Amanora resident will also remain unaffected allowing him to buy or sell property and for all practical purposes still have the ownership rights to avail a loan on the apartment, mortgage it or rent it for that matter. The project has also earmarked about 3 million sq. ft. for a market city which will host a hotel, office premises, club, multiplex, showrooms and a hypermarket among other things.

  Real estate company “Aeren R Enterprises Pvt. Ltd.” are bringing theme mall ”

Festival
City in Ludhiana of Punjab 20 lakh sq.ft. covered area is being Punjab 20 lakh sq.ft covered area is being constructed based on the concept of “Malls within a Mall” The customers shall be able to enjoy kids Mall Fashion and Lifestyle mall, Interior’s Mall, Theme entertainment park, food and fiesta etc.

  Zoom Developers have secured tender for construction of four lane
Bhopal by-pass road in MP. This 52 km long and 24 km wide project will be prepared on the basis of built-operate & transfer. 

Parsvnath developers‘ ltd. has announced to construct “Knowledge City” in Haryana at Panchkula to be made ready based on publia & private partnership between entrepreneur Sabir Bhatia and Haryana Government, the name of this city will be “Parsvnath Nano City.” Having 38% partnership in this 50,000 crore project, parsvnath will spend Rs 400 crores. Haryana Govt. will have 10% and sabir will have 52% partnership. This project will be completed within a period of ten years. The company will develop 5000 acres out of 11000 acres in the first phase

  Pushpanjali group has brought a residential project at birth place of
Krishna in vrindaban in the name of “pushpanjali baikunth, six hundred luxury homes shall be constructed in it in an area of 110 acres. People would be able to live in luxury duplex villas alongwith all modern facilities of this project situated near the world famous iskon and bankey behari temple. Here meditation and yoga center, naturopathy, gaushala, gurukul, preaching/ satsang bhawan, musical fountain and nature’s best scenes such as peace giving thing to the heart shall be available. . 

  In this historic land of Rajasthan, Narayan Group has been pioneering a silent revolution. Rajasthan’s largest private township developer, Narayan has to its credit, instilling of the concept of private townships in the region and living spaces that are profoundly influencing the way people would live in future. With over hundred million square feet of land under various stages of development, and 20000 satisfied families the group has a resounding leadership status in the region. All its projects have struck the vital balance between closeness to nature and modern and contemporary lifestyle. Its existing projects — Narayan Vihar, Narayan
City, Narayan Sarovar, Narayan Garden Residency, Narayan Infinity and Narayan Industrial Estate — carry this unique signature.  Courtesy:- HT dtd:- July 11, 2008

  International Land Developers Ltd. (ILD) & Millennium Spire Ltd. (MSL) have joined hands together to create an architectural wonder — ILD Spire Greens. The project is ideally located at Sec-37C, Gurgaon, the most enviable and prestigious residential project in the Capital’s neighborhood with 82% greenery to maintain harmony with nature.    If you are the type who prefers the company of like minded people, there are 2-4, bedroom apartments with an area ranging from 1175 sq ft to 3450 sq. ft. & penthouses with an area of 5200 sq. ft. to choose from which combine modern design and stylish elegance. Designed by a collaborative effort by Europe & India’s renowned architects BDP Groupe 6, (
France) Ajoy Choudhury & Associates and Abaxial Architects, ILD Spire Greens is being planned to match international living standards. So, come and dwell in a place where life blends with the symphony of elegance.                                                                                           Courtesy: TOI dtd:- July 11, 2008