New home launches in NCR decline 39% in January-March

New Delhi: The property market of the National Capital Region (NCR) saw a 39 per cent fall in the new launches of apartments to about 7,600 units during January-March period compared with the previous quarter, global realty consultant Cushman & Wakefield said today.

In the top eight cities of the country, Cushman & Wakefield (C&W) said that an estimated 38,000 residential units were launched in the first quarter of 2013, registering a marginal fall of about 2 per cent over the previous quarter.

These major eight cities are -- NCR, Chennai, Kolkata, Bengaluru, Mumbai, Hyderabad, Pune and Ahmedabad.

"National Capital Region (NCR) witnessed the launch of approximately 7,600 units, a decline of 39 per cent compared to the previous quarter," C&W said in a statement.

The new launches were concentrated in the suburban locations of Gurgaon (66 per cent) and Noida (34 per cent) with over 80 per cent of units catering to the mid-range segment.

"Due to the subdued demand, Noida witnessed a steep decline in new launches at close to 70 per cent and ended up being the primary contributor for the overall decline in number of launches in the NCR," the consultant said.

Chennai, Mumbai, Hyderabad and Ahmedabad also witnessed decline in new launches of residential units by 39 per cent, 3 per cent, 89 per cent and 62 per cent, respectively.

"New residential units launched more than doubled in Bengaluru and Pune in the last quarter, increasing by 144 per cent and 109 per cent, respectively," C&W said. Kolkata saw a modest increase of three per cent.

On prices, the report said that most locations in Delhi witnessed stable capital values in both mid and high-end segments.

However, capital values in high-end segment in South Central Delhi witnessed 15 per cent appreciation over last year due to limited supply and high demand.

Among the suburban locations, Gurgaon saw higher appreciation due to the high demand from both end-users, the workforce working in the various companies located here and investors, coupled with the limited project completions.

Gurgaon saw a change in the capital values in the luxury/high-end and mid-end residential segment at 29 per cent and 18 per cent respectively over last year, C&W said.

"The country's residential market witnessed some vibrant launch activity during the quarter despite the sluggish economic environment. Funding will remain a major challenge for developers while executing these projects," C&W executive managing director (South Asia) Shveta Jain said.

"Capital values have largely remained stable across most micro markets except for some key locations in NCR, Chennai and Bengaluru. Prices are expected to remain largely stable in the coming months as developers will be looking mainly to boost sale and increase cash flows in projects being currently executed," Ms. Jain added.

source:- http://profit.ndtv.com/news/industries/article-new-home-launches-in-ncr-decline-39-in-january-march-322962

Gurgaon, Noida property markets gain, Delhi loses ground

To beat the blues, builders in Delhi are attempting new initiatives like throwing in maintenance and facility management services. Despite all this, builders are wary of cutting prices just yet, fearing a crash

Suburban Delhi property market is seeing a lot of action, while the South Delhi market is reeling under pressure. Demand for projects in Gurgaon and Noida has risen on the back of better specifications and overall amenities, and often at the cost of central and south Delhi properties.

Delhi's posh Defence Colony, Vasant Vihar, New Friends Colony and Safdarjung are witnessing a slowdown in demand, with many new floors remaining vacant. To beat the blues, builders are attempting new initiatives like throwing in maintenance and facility management services. Despite all this, builders are wary of cutting prices just yet, fearing a crash. The correction is assumed to be largely on account of an increase in supply and general slowdown in the market.

The National Capital Region (NCR) is often called India's most speculative real estate market. Delhi's suburbs Noida and Gurgaon are seeing plenty of action, but at the cost of premium real estate in the capital. The focus is on the South Delhi property market that is reeling under immense pressure.

Also Read: Middle class chase elusive dream of buying affordable homes

Manish Aggarwal, ED, Cushman and Wakefield India, says, "Though the prices being quoted are stable, which is at par with what we had seen around a year back. However, because of low investor activity and the market being completely end-user driven right now, there is a discount on the offering should somebody want to negotiate."

There is demand for projects in Gurgaon and Noida as their specifications and overall amenities are much better. Rohan Sharma, senior manager research, Jones Lang LaSalle India, says,"Most of the investor money is now being driven towards Gurgaon and Noida, as these suburbs are offering much better projects in terms of specifications and overall amenities. So, there are a lot of luxury projects being launched in these parts."

Businessmen, High Networth Individual (HNIs) and expatriates are going slightly slow because the prices have become unviable for them in the long run in terms of the overall cost that they are coming at to them.

The property market is made up primarily of builder flats, which till sometime ago were trading north of Rs 7-10 crore a piece. This space is occupied not so much by established pan-India players, but more by local builders like Salcon, Uppal and Saluja.

What typically happens is a family or landowner enters into an agreement with one of these developers to develop what are commonly known as builder floors. The number of flats depends on the plot size.

Delhi's posh Defence Colony has seen a surge in builder floors. Brokers say flats on a smallish 217 square yard plot are being quoted for more than Rs 6 crore and in excess of Rs 7.5 crore for a ground floor apartment or the top floor with a terrace. Starting price of a flat on bigger plot size of 325 square yard is Rs 9-11 crore. However, dozens of these new floors are currently lying vacant for want of buyers.

The story is the same in Vasant Vihar where a recent deal saw prices touch Rs 20 crore for a floor on 600 square yard plot. However, that was after heavy bargaining. Brokers say the situation is tough. Even other South Delhi colonies like New Friends Colony and Safdarjung are seeing the pain.

However, builders are wary of cutting prices just yet, fearing a crash. The correction is largely on account of an increase in supply and general slowdown in the market. So if you're in the market, this is your chance to negotiate a better deal.

Aggarwal says, "There has been no price reduction in the offering. However, there are good discounts to be taken from the developers. This is the right time to do so. The discount would be in the range of 10-15 percent, depending on the property size and the location. This can be even further, however, one needs to negotiate."

To beat the blues, builders are attempting new initiatives like throwing in maintenance and facility management services. Earlier the maintenance wasn't a part of the package developers used to throw in. Aggarwal says, "Now, some of the more reputable developers are offering that as a package and at a price which does not have too much of profit margins for developers. However, because of the slowdown, they are offering this as a package along with a price which they are offering. It is an extra cost and usually the kind of service offerings are facility management, which include common area cleaning, maintenance of your power backup, if the developer is providing central air conditioning then he would also maintain that and sometimes even provide you with basic services of a plumber and electrician."

Prices have not budged in the last one year and Delhi's loss has been Gurgaon's and Noida's gain. Cushman & Wakefield notes Gurgaon has recorded a much higher price appreciation with prices in the luxury residential segment rising almost 29 percent year-on-year (YoY).

Aggarwal says, "The South Delhi areas, these apartments or builder flats can be compared to the likes of super premium developments that developers like DLF are offering and which are pretty much in the same price range, however, offering far better amenities and the finishing's are probably comparable or even better."

The property market in the commercial capital Mumbai at best can be called subdued. High unsold inventory and low deal activity has kept the prices stable. To drive up sales, developers are launching apartments with smaller configurations. The 80:20 payment scheme is also becoming more popular in the city. Mumbai-based Lodha Developers is attempting yet another initiative.

The company has pre-launched the third tower of its Grande Project in Thane. It is priced at Rs 8,883 per square foot or Rs 1.08 crore for a two BHK spread across 1,134 square feet. The catch, the price is only for the first 27 residences and the offer is open only for two days, the weekend of 22nd and 23rd June. There is no information on what the prices would be post the special offer, but details were not forthcoming.

Lodha is following a similar strategy for its other project Lodha Golf Links in Navi Mumbai's Kalyan-Shil Road. It is pre-launching a seven storey tower called the Ramana at its 30 acre 9-hole golf course.

This offer is only for the first 18 units the company sells and the booking amount is the same as Lodha's Grande project at Rs 1.08 crore. The project can be previewed only by invitation and if someone manages to make the cut, then Lodha is throwing in a three-year free membership with the purchase of a unit.

Other Mumbai developers too are coming out with similar schemes for soft launches. A few are even reducing prices of unsold inventory for a limited period of two to three days.

Interestingly, Saudi Arabia's Prince Al Waleed Bin Talal is giving a second shot to his dream of building the world's tallest tower at one mile or 1.6 kilometers. The Prince said he's in talks with Dubai's largest realty firm Emaar Properties to team up with his investment firm Kingdom Holdings for this project. However, there's nothing concrete on the table yet, including the location of the project.

The prince is inviting offers from all major cities from New York to London to Shanghai and is clear countries interested in hosting the world's tallest one mile high tower would have to offer tax breaks, financial incentives and all other necessary government support.

If this tower is indeed built, it will stand at double the height of the world's current tallest skyscraper, that's the Burj Khalifa at 828 meters in Dubai. If built, the skyscraper will also dwarf the one kilometer tall Kingdom Tower currently under construction in Saudi Arabia. The Kingdom Tower was initially conceptualized at 1.6 kilometer or one mile high, but plans had to be scaled back as the soil was not strong enough to support the prince's towering ambition.

source:- http://www.moneycontrol.com/news/real-estate/gurgaon-noida-property-markets-gain-delhi-loses-ground_905331.html

Best property buys in Noida, Gurgaon

The Property Show

NDTV Profit introduces ‘The Property Show’ – your one-stop source for everything related to property matters. Write to us to get your queries answered on the show, with the help of leading industry experts Every weeknight at 7 p.m. In addition, Manisha Natarajan and Samir Jasuja scour the country to find the best deals for every budget, and help you navigate the property bazaar.

source:- http://profit.ndtv.com/videos/the-property-show/video-best-property-buys-in-noida-gurgaon-268350

Affordable housing project going up in North Austin

Crews broke ground recently on a 228-unit North Austin affordable housing community that will cost $21 million to construct.

The Paddock at Norwood, expected to open by April 2014, will offer one-bedroom units for $755, two-bedrooms for $895 and three-bedrooms for $1050, the Austin American-Statesman reports. The complex is for households earning 60 percent or less of the area's median income.

The project also features a clubhouse, fitness center, a playground and a business center.

Craig Alter, executive vice president of the Strategic Housing Finance Corp. of Travis County, told the Statesman that nearly 30 percent of the $21 million cost will come from income tax credits allocated from the state.

The community will be the first new affordable housing project to rise in North Austin since 1999, Louisville-based LDG Development said in the article.

The city of Austin is hoping voters will approve $65 million in bonds this fall to build and repair affordable housing across the city.

source:- http://www.bizjournals.com/austin/blog/morning_call/2013/08/affordable-housing-project-going-up-in.html?iana=ind_rre

Connecting the dots' in the global real estate market

I t's no news that Chinese real estate developers and property buyers are flooding into the US - something that's currently, to many Chinese, a better investment than gold - and it's bringing more than just cash into the market.

The increasing interest from the Chinese in US real estate is also creating new business opportunities.

Jason Chen, chairman of Shenzhen World Union Properties Consultancy Co Ltd, a listed company that provides real estate consulting services in China, sees it as a trend.

"So the idea is to team up with local agents in the US - even smaller ones (compared to the size of World Union) - to serve the growing number of Chinese buyers here," said Chen, who recently attended a business forum in New York to make new business connections.

"That is the trend now," said Chen, adding he has visited New York three times this year and has a few agencies in mind.

World Union employs some 15,000 people across China who broker all kinds of properties. With a market share of 3 percent, its revenue last year was close to $34.4 billion with the sale of some 300,000 apartments across China, and profits that make him look beyond the home market.

"We won't really operate solo here [in New York], and this won't be money-making in the beginning, but we see this as a trend that is still developing and we want to be part of it," he said. "We just need to find a trustworthy partner and feed them with our Chinese client source list."

Chen's plan is echoed by industry leaders in the US real estate market who call it a way to "bridge a gap".

"In various So Cal communities, we've experienced an upward trend in Chinese buyers purchasing our homes and the majority of those are not local Chinese buyers but those coming from China," said Brian Harrelson, a senior project manager in the Southern California office of Toll Brothers, a US luxury homebuilder.

As part of their strategy to attract more Chinese buyers, Toll Brothers has teamed up with realtors for joint events to provide more buyer services, including reimbursing home buyers' international airfare on their Fly-and-Buy program.

"There are a lot of agents in China," said Harrelson, "so we're thinking: how can we empower them by providing supporting information in Mandarin and develop relationships between the local and Chinese agents so they work together?

"If we can bridge that gap, there will be more potential buyers in the pool, rather than just what we see domestically," he said.

Chinese buyers accounted for 18 percent of the $68.2 billion that foreigners spent on residential properties in the US during the 12 months ending March 31, according to the National Association of Realtors.

Chinese shoppers are known for being "cash-buyers" and for buying expensive homes, spending a median price of $425,000, almost double the median of what other foreign buyers pay.

In California, the Chinese are the third-largest foreign buyers of real estate, after Mexicans and the Filipinos, according to Realtor.org.

"The growing number of international buyers in Los Angeles has been an ongoing trend," said Sally Forster Jones, an agent with Coldwell Banker International in Los Angeles.

"More and more of the high-end deals are going to international buyers, many of which are coming from China. This is a growing market so it makes sense to do everything possible to tap into the needs of this demographic," said Jones.

"I think that the willingness of local and international real estate agencies to work together can bring positive results," said Jones. "We are really living in a global marketplace and real estate is a very collaborative business where connections are everything."

In New York, Chinese are second only to wealthy Dominicans in purchasing homes.

"It's clear that wealthy Chinese are looking for good investments and NYC real estate is especially appealing to them, so it's nice to have brokers working together to connect those dots, especially when there are language barriers," said Todd Dumaresq, a marketing manager with Toll Brothers City Living in New York.

In late June, US developer Tishman Speyer and China's largest residential developer Vanke broke ground on a joint venture to build 655 luxury condos on the San Francisco waterfront.

Vanke is one of World Union's clients in China, so, according to Chen, it makes sense for them to follow their big client to the US.

"Our business follows our clients - most of whom are major Chinese commercial and residential developers in China - and they are all looking into the US now," Chen said.

source:- http://usa.chinadaily.com.cn/opinion/2013-08/08/content_16883091.htm

Bumpy Road Ahead for General Motors India

As things stand, General Motors (GM) India is not in the driver’s seat.

Late last month, the company announced its decision to recall 1.14 lakh units of its utility vehicle Tavera, manufactured between 2005 and 2013, because they failed to meet emission and specification norms. There has been no official statement on the cause, but media reports suggest GM engineers manipulated emission tests to comply with government standards. Post the controversy, GM has fired about 25 people, including Anil Mehrotra (India CFO), Sheila Jain Sarver (head of GM’s India technical centre at Bangalore) and Sam Winegarden (vice president for global engine engineering). 

The problem doesn’t end here. From early July, GM has halted the production of its Sail sedan and hatchback citing quality issues. It is contemplating a recall. 

Dealers believe this will affect business.And it’s not as if GM India’s cars have been selling big. In June, it sold 6,575 vehicles, down 11 percent year on year. 

Read more: http://forbesindia.com/article/checkin/bumpy-road-ahead-for-general-motors-india/35841/1#ixzz2bohucqny

Free Property Legal Advice is intended to provide FREE legal guidance on all aspects of Laws in India.

Ask Free Legal Advice is intended to provide FREE legal guidance on all ... Registration, Sale of Goods, Sale of Lands / Constructed Property, Property Legal Advice, Stamp Duty.



source:- http://www.askfreelegaladvice.com/

Swati Piramal: How to Make India a World Leader in Low-Cost Health Care

Swati Piramal is the vice chairperson of Piramal Enterprises and director of Piramal Healthcare. She was the first woman VP of Assocham in 2008. She’s also a member of the Planning Commission and has influenced public policies in health care. In 2012, she was awarded the Padma Shri.


The numbers are startling. The Indian pharmaceutical industry—once the pride of innovation and a leading Indian export to other countries—has slowed from over 17 percent just two years ago to 10 percent this year and trending even lower because the price control regime is due to kick in later this year. On the face of it, this may be seen as being in line with the slowing Indian economy. The truth is not so simple.

The questions are mind-boggling. Why would a government metaphorically handcuff an industry that was once feared to be taking on the power of the world’s largest multinationals and was ahead of China in the sheer strength of scientific prowess? What has happened to a leader in generic medicines that could prove, using clinical trials, that our drugs are as good as that of the West?


Clinical trials approved by the health ministry have dropped from 500 two years ago to nearly zero. When activists petition the Supreme Court and advocate the banning of any studies, the knee-jerk response from the health ministry is to make notifications so absurd that global trials in India are halted by no less a global heavyweight in research than the American National Institutes of Health.

While activists who have no stake in the issue can take up airtime on TV, the nation’s ability to discover and develop new cures for untamed diseases in India are crippled severely. If India is to depend only on new innovations from the West without regard to the types of mutations in viruses and bacteria increasingly affecting the Indian population, it will be a very high price to pay. Research on tropical illnesses that ravage our citizens and drugs to treat these illnesses will not come from multinational research labs. An increasing cancer risk and the high prices of drugs imported into India are together making the burden of this disease unaffordable to most patients.

Can new cancer drugs be discovered in our huge biodiverse plants and microbes in India? Can we develop it in India at one-tenth the cost of the West and make it affordable not just for India but for the rest of the world? For many Indian scientists, that remains a dream. Has price control been effective in delivering good health to the consumer? More than 60 years after independence, tuberculosis affects nearly every other Indian, 20 million women have anaemia, 70 percent of children up to age 10 are anaemic, malaria continues to kill and, in a rapidly urbanising India, there’s a double whammy: Chronic diseases such as diabetes and heart disease have increased. Drug prices are so low that there is no money left to create awareness or to make sure the drug reaches rural areas. Drug price controls have failed to deliver medicines to those who need them most.

Recently, the head of the Dairy Development Board, Amrita Patel, observed that women employed in the dairy industry have a problem of anaemia. They refuse to take the iron tablets doled out free as they cause gastritis. Innovations in iron delivery are not taking place at all because iron tablets are under severe price control and there is no money that can be invested in research and development for a new iron delivery system with fewer side-effects.

The much-vaunted India advantage of an English-speaking scientific manpower, doctors trained in Western medicine, institutes of higher education, and a large number of chemists has come to naught. The long bureaucratic delays of more than a year for almost any permission, the plethora of expert committees, and aggressive pursuit of leadership in science by China, Singapore and South Korea have nullified any ‘India advantage’.

 So where is the good news? A few years ago, the Reserve Bank of India made a small but critical change. Hospitals, which were previously classified as a real estate industry to which banks could not lend, were reclassified as infrastructure. The growth in small hospitals in second and third-tier towns as well as the rapid expansion of hospital chains such as Apollo and Fortis is creating new hospital beds and new competition, which is pushing up health care standards. India is a laboratory for low-cost innovation in health care delivery. Affordable cardiac care is being pioneered by brilliant doctors such as Devi Shetty and in eyecare at Aravind Eye Hospitals. New methods of mobile delivery are being pioneered in many states.

Digital health services take more than a million calls a month to answer basic questions on health. Cloud computing and RFID (radio frequency ID) technology is being used by clean drinking water provider Sarvajal in rural India (which recently won them a Frost and Sullivan technology award). The Mid-Day Meal schemes provided by large NGOs have totally automated plants that bring costs down and maintain high standards of nutrition and hygiene. To scale up these models and success stories we need support from the government. Technologies must be accepted and diffused quickly so that the common man may benefit.

On the pharmaceutical side, too, there is a silver lining.  Although Indian trials have halted, Indian companies are sending their dossiers to Western regulators. The high quality of science is being accepted and the number of new chemical entities discovered in India and developed globally is going up. If India is to take her rightful place at the head table of nations to make the lowest health care solutions in the world, she must quickly put in place a regulatory system that is fast and efficient.

Read more: http://forbesindia.com/article/independence-special-2013/swati-piramal-how-to-make-india-a-world-leader-in-lowcost-health-care/35867/1#ixzz2bogsPU9F

Property Investment in Delhi-NCR in India

Investing in real estate in India is one of the most preferred investment avenues today. Survey shows that 91 percent of people want to go for property investment in India. Surprisingly Delhi-NCR tops the chart of investment. It is suggested by the property investment advisors as well. Also in the Wealth Report 2012 by Knight Frank & Citi Private Bank, Will Dickens, senior vice-president at Citi Private Bank's global real estate investment team said that investment is fast emerging as a favourite investment option for the rich.

Why people seek options for Real estate investment in Delhi NCR?

Well the answer is simple. It is because of growth and development that is taking place on a high scale. Not only commercial but residential property demand is on rise too.

It investment is also gaining favour due to the lucrative returns it is offering. People are investing in real estate in Delhi NCR on high scale. Sometimes a group of people with smaller investment amounts put their money together in a single real estate project. Many people also think that putting property on rent in Gurgaon yields more especially if it is commercial property. Take for example the trend of property investment in Gurgaon. Talking about commercial property in Gurgaon people prefer furnished offices. But when it comes to residential accommodation both apartment and plots are on high demand. People often look for wealth management solutions which is cost effective and has high returns.


Real estate wealth management is not rocket science. If you want to make a better investment in properties in Gurgaon, you should be reasonable and savvy enough to know the pulse of the market and determine the right time to buy. You only need common sense to know that the best time to buy is never the right time to sell. However, consulting a property investment advisor not only assures you that you are in the right direction but also provides you with perfect wealth management solutions.
Wealth management is basically a mechanism for delivering advice which is provided by multiple specialists, including property investment advisors, accountants and attorneys. In all cases, however, advice is customized, taking into account many facets of the investor's life, but with an emphasis on service and communication.
So all you need to do is to consult a property investment advisors, talk him about your requirement and budget, understand the frame work he decides for you and just go for it.


source:- http://goarticles.com/article/Property-Investment-in-Delhi-NCR-in-India/7469347/

Demand for plots picks up in Gurgaon

Gurgaon known for its opulent and luxurious homes is witnessing a slow and gradual shift towards residential plots. Even though multi-storey apartments are the most preferred property type in Gurgaon today, a large number of buyers are opting to go for independent plots instead of an apartment.

As per MagicBricks.com, demand for plots has shot up by 33 per cent since the Jul-Sep 2012 quarter. Nearly 20 per cent demand was recorded for plots during the Jan-Mar 2013 quarter.

When Gurgaon began developing as a residential destination plots were the norm. However, with time multi-storey apartments took over the real estate market in the sub-city and buyer demand gradually shifted towards the same. The major reason for this was the various amenities one could get with an apartment.

However, today demand for plots is witnessing resurgence in the Gurgaon market. “Amongst buyers, for whom budget is no constraint, residential plots are again gaining preference. Buyers chose apartments over plots because of the security and facilities that a gated community offered. Now, with developers offering independent plots with all the amenities that one could get in apartments including power back-up, buyers are more inclined towards these,” exclaims Ranjeev Kalia, GM Marketing, Ansal Buildwell.

Further, if you have the money, buyers would want to customise the designing of their homes as per their wish. Investing in residential plots gives this flexibility to buyers.

Giving his insights on why residential plots are gaining popularity in Gurgaon, Pankaj Bansal, Managing Partner, Oxford Realtors and Arbitrators says, “Plots cost lesser in Gurgaon as compared to Delhi, and thus we see that maximum demand for plots is coming from buyers in Delhi. Most of these buyers are those who have sold their plots in Delhi and bought property in Gurgaon. Good connectivity to Delhi via NH-8, MG Road and Metro also acts as a boon.”

Moreover, plots appreciate faster than apartments and thus prove to be a promising investment avenue. “A minimum annual ROI of 50 per cent is guaranteed in case one invests in plotted development in Gurgaon. Further, you are the owner of the plot as well as the house you construct on it, while one has no ownership right on the land on which your apartment is built. This realization has also led people to opt for plots over apartments,” adds Bansal.

Thus, if one can afford it, plots might just be the better option in Guragon today!

Sruthi Kailas, MagicBricks.com Bureau

source:- http://content.magicbricks.com/demand-for-plots-picks-up-in-gurgaon/?utm_source=toi-article-slider&utm_campaign=article-slider-article_link