Latest Property News on 'Faridabad'

Haryana plans to revive mining in ravaged Aravalis

Some 20 months after the Supreme Court suspended mining in the Aravalis in May 2009 due to the havoc wrought upon this crucial range around Delhi,the Haryana government has drawn up a fresh plan to revive mining in the ravaged parts of Aravalis in Faridabad district.In fact,it has already identified 609 hectares for mining.

Records accessed by TOI show about 280 hectares of the areas identified for mining fall under the restricted zone while 400 hectares are covered under existing mining leases.

Documents available with TOI show that Mangar village in the district is likely to be the prime target for mining.At least 210 hectares in Mangar and Mohabatabad villages have been identified for future mining.The other villages where the government plans to allow mining are Khori,Sirohi,Dhauj,Kot and Alampur.

Shockingly,the areas identified by the state government include approximately 179 hectares covered under section 4&5 notification of Punjab Land Preservation Act (PLPA) and Aravali plantation.As per norms,areas under PLPA notifications cannot be put to any non-forestry use without prior permission of the ministry of environment and forests.

Though the Haryana government has to wait for a go-ahead from the Supreme Court before allowing mining,the design behind identifying these areas seems to be to revive the old leases.The Supreme Court had stated in its order that actual mining in 600 hectares in Faridabad would commence only after the state submitted a detailed rehabilitation and reclamation plan and it was approved by the apex court.

Source: http://lite.epaper.timesofindia.com/mobile.aspx?article=yes&pageid=1&edlabel=CAP&mydateHid=16-01-2012&pubname=&edname=&articleid=Ar00103&format=&publabel=TOI

ग्रेटर फरीदाबाद के नाम पर द ग्रेट गेम

फरीदाबाद

नहर पार इलाके में ग्रेटर फरीदाबाद के नाम पर लोगों की गाढ़ी कमाई लूटने का काम जारी है। यहां दिल्ली से आने वाले कॉलोनाइजर एग्रीकल्चर लैंड और पंचायती जमीन पर आवास का सपना दिखाकर इनवेस्टर की मोटी रकम लूटने में लगे हैं। इस बारे में आए सरकारी आदेश की भी परवाह नहीं की जा रही है, जिससे टाउन एंड कंट्री प्लानिंग डिपार्टमेंट दिखावा बन गया है।

ग्रेटर फरीदाबाद इलाके को सरकार ने कंट्रोल एरिया घोषित कर दिया है। यहां पर टाउन एंड कंट्री प्लानिंग डिपार्टमेंट की इजाजत के बिना निर्माण नहीं हो सकते हैं। नियम के अनुसार ऐसे क्षेत्र में कॉलोनी बसाने के लिए कॉलोनाइजर और किसान को आपसी समझौते के आधार पर डिपार्टमेंट से लाइसेंस लेना जरूरी है, लेकिन बिना लाइसेंस लिए लोगों को बसाने का काम जारी है। दिल्ली से आने वाले कॉलोनाइजर यहां सुबह ही अपने अस्थायी ऑफिस जमा लेते हैं। इन्होंने नैशनल हाइवे पर अपने ऑफिस बनाए हैं। जहां से साइट तक लाने ले जाने की मुफ्त सुविधा दी जाती है। लोगों को 3000 से लेकर 6000 रुपये प्रति वर्ग गज जमीन किस्तों में ऑफर की जा रही है। उन्हें गांवों की देह शामलात भूमि (पंचायती जमीन) को लाल डोरा बताकर भी बेची जा रही है, जबकि इस जमीन को कोई बेच ही नहीं सकता।

लोगों को ग्रेटर फरीदाबाद, मेट्रो, आईएमटी, पृथला डिवेलपमेंट प्लान, इंडस्ट्री, रोजगार, बाजार, मॉल्स आदि के नाम पर हसीन ख्वाब दिखाए जा रहे हैं। इस मामले में टाउन एंड कंट्री प्लानिंग डिपार्टमेंट की कार्रवाई महज ऊंट के मुंह में जीरा मालूम होती है। यदा कदा डिपार्टमेंट निर्माणों को तोड़ने की कार्रवाई करता है। हालांकि डीटीपी (एनफोर्समंेट) देवेंद्र पाल का दावा है कि अवैध कॉलोनी बसाने वालों से सख्ती से निपटा जा रहा है। लोगों को भी ऐसी किसी योजना में पैसा लगाने से पहले उनके डिपार्टमेंट से जानकारी ले लेनी चाहिए।

-Navbharat times

BPTP buys out Merrill Lynch’s 49% Stake in Gurgaon Project for 180 crore

Real estate developer BPTP is buying back Merrill Lynch’s 49% stake in its Crest office building in Gurgaon for Rs 180 crore. The developer has its corporate office in the same building. Merrill Lynch had invested Rs 100 crore in the project in 2007 at the peak of the real estate cycle in India. Now, Merrill Lynch’s Asian real estate assets, including those in India, are managed by Blackstone. BPTP recently raised Rs 270 crore through lease rent discounting of the 625,000 sq ft office building in Gurgaon that has tenants such as Deloitte, Fidelity as well BPTP itself, a person close to the development said on condition of anonymity. The company is using a part of this money to buyback the stake from Merrill.

The asset is valued at Rs 530 crore, including a debt of Rs 170 crore. Net of debt, the value of the asset is Rs 360 crore. The source said BPTP has used the money raised to repay this debt. A Blackstone spokesperson refused to comment. Email sent to BPTP remained unanswered. “Merrill has been looking at exiting its investments in India after the buyout by Blackstone to show returns to investors,” said Amit Goenka, national director (capital transactions) at property consultancy Knight Frank India. Besides Merrill Lynch, other investors like Citi Property Investors and JP Morgan have bought stakes in BPTP’s projects as well as at the entity level. In 2008, Citi had invested Rs 640 crore to buy 40% stake in four of BPTP’s special economic zone projects.

While a number of private equity exits have already taken place in 2011, the number of exits is likely to soar in 2012. Property consultancy Jones Lang LaSalle said in a report last month that 2012 is likely to see $3-5 billion worth of exits by private equity funds that have invested in Indian real estate. A majority of these investments were made in 2005 and 2006 after the real estate sector in India was opened up for foreign direct investment. Many of these investments, which were made for 5-7 years by the private equity funds, are now coming to the end of their cycle. In the last four years, private equity funds have already exited $3 billion worth of investments in real estate, which is about 23% of the total investments since 2005.

Source:http://articles.economictimes.indiatimes.com/2012-01-05/news/30593128_1_bptp-private-equity-citi-property-investors

Real Estate Firms Drop Overseas Plans, To Stay Grounded in India

Real estate companies, which started venturing overseas around 2006-07, are reviewing their global plans. With the slump in international realty markets, many domestic companies are either withdrawing from weak markets or putting their global plans on hold, reports Business Standard. Raheja Developers, for instance, has shelved plans to enter markets such as Mauritius and Colombo. Hiranandani Group, which has a major presence in Dubai, has changed its strategy. It’s stopped launching new projects, and is focusing on completing existing projects for other developers on a contractual basis. Omaxe has already exited Dubai.

Darshan Hiranandani, director and chief executive officer, Hircon International, a joint venture between the Hiranandani group and ETA Star, told Business Standard the company was not launching any new project in Dubai due to the slump. “Our strategy is to complete the incomplete projects for other developers on a contractual basis.” According to him, 23 Marina in Dubai, which was recently completed, has been sold out. However, the launch of Business Bay, which the company says ‘coming soon’ on its website, will not be for sometime. He was optimistic the market would recover soon.

But Nayan Raheja, director, Raheja Developers, is not so hopeful about prospects of the international market. The Dubai market would not recover, at least in the next five years, he said. “Nobody should be looking at the Dubai market as of today,” said Raheja. Raheja Developers, which was evaluating opportunities to enter Mauritius and Colombo, is giving it a miss in the wake of the global economic and realty gloom. “There is negative sentiment internationally. At this point, we are not even considering venturing out,” Raheja said. Tata Housing is one of the few companies looking overseas at this point. After establishing itself in the Maldives, the company is looking at Colombo in Sri Lanka.

Its managing director and chief executive, Brotin Banerjee, said, “We are confident of finalising a few projects in Sri Lanka this financial year — Colombo will be one of the locations. All these international projects are being planned through separate special purpose vehicles formed for each country or project.” Banerjee said the company was in the final stages of due diligence for two mixed-use development projects of two million square feet each in Colombo. Of this, one could be affordable housing. “With peace returning to the island nation, real estate will be a big growth story there,” Banerjee said. Tata Housing has earmarked Rs 1,000 crore for various ventures in 2011-12. “We work on a multi-city strategy and projects targeting all customer segments and hence, a slowdown in some geographies or customer segments does not adversely impact us,” said Banerjee.

Omaxe Group entered Dubai in 2007, with a goal of expanding in West Asia. But after investing Rs 50 crore (the first instalment of a Rs 1,600-crore project) through a joint venture with Dubai World’s property developer, Nakheel, Omaxe withdrew from the market due to a near lull. “We got the investment back, as Nakheel put the projects on hold indefinitely,” said Rohtas Goel, chairman and managing director, Omaxe. And now, the company has no plan of expanding outside India.
According to Sunil Dahiya, managing director of Vigneshswara Developers and vice-president of the National Real Estate Development Council, it is not just real estate developers, but also construction companies, which are withdrawing from the Gulf. “Indian companies in West Asia, especially into construction projects, are experiencing a near lull, as no major work is happening there. The contractors are not being paid,” he said. At least 10 to 15 construction companies present in the Gulf are suffering from the slump. Real estate consulting firm Cushman & Wakefield’s chief executive for Asia Pacific, Sanjay Verma, said, “For those over expanded, it would be a sensible move to focus on their core strength at this point.”

Source:http://www.realtyplusmag.com/rpnewsletter/Fullstory_Newsletter.asp?news_id=18086&cat_id=1

Water Holds Home Projects in Gurgaon and Faridabad

Falling ground water table has put a spanner on new real estate projects in sprawling Gurgaon and Faridabad districts of Haryana. The Central Ground Water Authority has refused to give permission for further extraction of ground water for construction in these two districts, pushing an Environment ministry committee to put half a dozen mega housing projects on hold. The ministry’s Expert Appraisal Committee (EAC), mandated to review and decide on construction projects, refused to give approval to housing projects from companies such as Tulip Infratech, DLF New Gurgoan Home Developers Limited, Golden Glow Estate.

A DLF spokesperson refused to comment saying the state government will reply to the concerns raised by the environment ministry committee. DLF has proposed Manesar Urban Complext in Sector 82-A, for which it required 389 kilo litres of water every day but failed to indicate from where the water will come. Similar was the story of other developers as they were relying on permission from the authority to extract ground water.

All the projects considered by EAC were approved by Haryana State Pollution Control Board but did not examine the impact of the projects on underground water level. The underground water in non-flooded areas of Gurgaon and Faridabad has fallen in recent years because of unprecedented growth and is as low as 70 meters below the ground level in certain areas. This was a major concern of the ministry’s committee, which in its last meeting observed that most of the constructions proposals from Gurgaon and Faridabad lacked assured source of “water supply both for construction and also for operation of the projects”. Although the companies claimed that the water will be supplied through tankers, the committee expressed anguish at they failing to indicate from where the water will be transported.

“In some of the proposals project proponent presented a letter issued by the Municipal Corporation of Gurgaon that water supply will be made available in three to five years whereas in others cases no details were submitted,” the committee said, while pointing out these projects will not sustain without assured supply of water. The EAC sought comments of the government agencies related with management of the underground water. Authority’s member secretary Sushil Gupta ruled out giving permission to these companies to extract ground water for construction. In Faridabad, withdrawal of water outside the municipal limit was permissible, he said. The saving grace for the companies is that the committee has asked Haryana Urban Development Authority (HUDA) to present its case at the meeting this month end.

Source:http://www.hindustantimes.com/India-news/Haryana/Water-holds-home-projects-in-Gurgaon-and-Faridabad/Article1-792401.aspx

Godrej Properties assigns development rights for second Gurgaon project to subsidiary

A subsidiary company of Godrej Properties will develop a residential project for the company in Gurgaon’s sector 104. The Mumbai-based real estate company informed the Bombay Stock Exchange that it has assigned all the rights and obligations of the company under the development agreement entered with Magic Info Solutions Private Limited & Others dated August 05, 2011, to its subsidiary Godrej Premium Builders Private Limited, for developing the project located at village Gurgaon, district Gurgaon in residential sector 104 of the Gurgaon-Manesar Urban Complex, Haryana.

This project is close to the proposed Dwarka-Manesar expressway. In August this year, Godrej Properties had signed a joint development agreement with Magic Info Solutions to develop a residential project with two million sq ft of space spread over 22 acres of land. This is the company’s second project in Gurgaon. It had launched its first project, Godrej Frontier, in sector-80, Gurgaon in 2010. The project is being built on nine acres of land and will have a total of 1.05 million sq ft of space.

Source:http://economictimes.indiatimes.com/markets/real-estate/godrej-properties-assigns-development-rights-for-second-gurgaon-project-to-subsidiary/articleshow/11278116.cms

Delhi-NCR tops list for unsold homes

Real estate developers maintain price levels even as demand slows and interest rates rise. This year, the unsold inventory in residential real estate was the highest in Delhi-NCR at 102,758 units, followed by the Mumbai metropolitan region at 90,512. Bangalore came next with 46,596 units, and Pune followed with 40,734 units, according to PropEquity, a real estate intelligence platform. The inventory pile-up is due to a combination of factors like slowing demand, a rise in interest rates and developers maintaining price levels. The figures considered for the study were till September.

Limited access to funds, increasing cost of debt and high construction costs remained a concern for developers this year, said Samir Jasuja, founder and chief executive, PropEquity. Developers were also affected by regulatory bottlenecks like delays in project approvals and land acquisition-related uncertainties. Affordability was the biggest concern for buyers. The Reserve Bank of India (RBI) raised its key policy rates 12 times, aggregating 375 basis points, since March 2010. Banks responded with similar rises in lending rates. Though buyers were expecting a price correction in real estate prices, it hasn’t happened yet, Jasuja said.

Even as developers have slowed fresh launches, prices are mostly headed north. Gurgaon has seen the maximum price appreciation at 21.4 per cent, followed by Mumbai at 13.2 per cent, and Pune 12.5 per cent, compared with the previous year, the report shows. International consulting firm, DTZ, has said the residential sector is likely to remain under downward pressure in 2012, owing to high interest rates. “As increasing inflation levels continue to remain a concern for RBI, the residential sector may witness further increase in home loan interest rates. This would further impact demand for the residential segment, particularly among the mid-range and low-end segment,” said Anshul Jain, chief executive, DTZ India.

New project launches are likely to remain restrained in 2012, too, said Jain, adding the “rise in capital values would be low and specific across micro markets, particularly for ready and near-completion projects.” Ajit Krishnan, partner and national real estate leader, Ernst & Young, said the initial quarters of 2012 were likely to witness a wait-and-watch approach by investors. “The focus of most developers is likely to be on execution of existing projects in their portfolios and improvement in sales,” he said. On the residential sector, Krishnan said developers were likely to continue to face a liquidity crunch, owing to the soaring interest rates and a slowdown in sales. “This may lead to a slowdown of construction activity. Rising home loan interest rates shall keep buyers at bay in the short term. The rise in capital values would be marginally on account of the anticipated slowdown in sales,” he added.

PropEquity’s Jasuja said the near-term outlook for the residential real estate market in 2012 was likely to be cautious, owing to “the likelihood of low market sentiments”. Key market indicators, including absorption and new launches, were likely to remain low, given execution concerns, he said. “Developers may focus on execution and delivering the committed projects in 2012, rather than launching a slew of new projects to avoid an insurmountable inventory overhang,” said Jasuja. On prices, the appreciation may be marginal because of low sales volume and decline, he added.

Source: http://www.business-standard.com/india/news/delhi-ncr-tops-list-for-unsold-homes/459619/

Amrapali in funding talks with PE firms

Realty firm Amrapali Group is in the process of raising about Rs 220 crore from private equity (PE) firms to fund the construction of two of its large residential projects in Noida. The Noida-based developer is raising Rs 100 crore from IL&FS Investment Managers Ltd for its 20-acre Princely Estate mid-segment apartment project. From JPMorgan Chase & Co, it is raising about Rs 120 crore for its 60-acre Silicon Valley project.

JPMorgan had invested Rs 75 crore in the firm’s Zodiac project in Noida in 2010, reports Mint. “Bank lending is a little difficult and time-consuming if you want a higher sum of capital, and then we have to look at alternative sources such as PE funds,” said Anil Sharma, chairman and managing director, Amrapali Group. “A single bank won’t lend a large sum and arranging a consortium of banks takes time.”

Sharma said Amrapali is raising money primarily to complete the two Noida projects in time; the projects are due for delivery to buyers in 2013. “If you want to target completion on time, particularly for large projects, you need strong financial backing,” he said.

Source: http://www.realtyplusmag.com/rpnewsletter/Fullstory_Newsletter.asp?news_id=17752&cat_id=1

Delhi: Property prices may fall 20-30% by mid-2012

Real estate prices may fall 20-30% in several pockets of Delhi-NCR and Mumbai in six months, but experts are divided on whether and when prices will decline across the board. A study by HT of the balance sheets of India’s top 10 listed developers revealed a massive oversupply and a slowdown in sales: they are sitting on an estimated Rs 31,000 crore worth of unsold properties. Already, most developers are offering freebies amounting to 5-8% of the property value. And if you bargain really hard, mid-rung developers are offering discounts of 10-15% on a case-by-case basis.

“But real estate firms are not slashing prices (across the board) as they can still access capital from private equity funds or by restructuring loans,” said a real estate analyst.
“Companies are going for high margins compared to high volumes. In the long run, this model is not sustainable,” said Pankaj Kapoor, managing director at real estate consulting firm Liases Foras. Prices will fall when companies begin to feel the pinch arising from slow sales. “There is a downward pressure on prices,” added Ambar Maheshwari, managing director of corporate finance at Jones Lang LaSalle India, a leading property consulting firm. “But it’s difficult to say when prices will actually fall.”

“Developers selling properties in prime areas are seeing sales, especially in completed projects. The sales are not happening in the outskirts and unfinished products,” said Niranjan Hiranandani, head of the Mumbai-based Hiranandani Group, a leading real estate developer. But industry experts said that specific exceptions apart, the oversupply is for real.

Source: http://www.hindustantimes.com/News-Feed/BusinessRealEstate/Delhi-Property-prices-may-fall-20-30-by-mid-2012/Article1-785091.aspx

Does higher Delhi mean cheaper flats in NCR?

The reason why real estate in Gurgaon and Noida is flourishing today is because land is scarce and hence expensive in Delhi. But with the Master Plan proposing vertical growth of the Capital resulting in a leap in housing, will prices of Delhi’s tony neighbours be affected? Most experts believe so. The Master Plan intends to unlock large tracts of land pockets in Delhi, mostly in peripheral and untapped areas such as Narela, Najafgarh, Kanjhawla, Bawana and extensions of Rohini and Dwarka. Super tall structures are expected to come up in most of these areas with private partnerships, which would supply 14 lakh new housing units.

“Gurgaon and Noida are thriving today because no new housing was being developed in Delhi for many years. When new housing units in Delhi are made available, prices in the suburbs would be affected,” said AK Jain, former Commissioner (Planning), DDA. “In fact, most investors in Gurgaon and Noida are from Delhi,” he said. The DDA has failed to provide affordable housing in sufficient number since its inception more than 50 years ago. The demand for housing was evident when more than 12 lakh people applied for the 16,000 flats offered by DDA in its housing scheme last year.

“It is a misnomer that Delhi has no land supply,” said Ramesh Menon, director of Certes Realty Limited, a real estate consultancy firm. “Land is being released for urbanisation in Delhi and Zone L (near Dwarka) and Zone N (near Rohini), are the key areas. “Of the 70,000 hectares of land being available, at least 25,000 hectares are meant for residential townships,” he said. “While Gurgaon and Noida have to create demand, Delhi is sitting on captive demand,” Menon said.

There are others, however, who believe that even with an increase in housing supply in Delhi, Gurgaon and Noida wouldn’t be affected. “Gurgaon and Noida see a different kind of demand and cater to a different demographic. They have enough latent demand, which would not be impacted by additional supply of housing,” said Vineet K Singh, Business head, 99acres.com.

Source: http://www.hindustantimes.com/India-news/NewDelhi/Does-higher-Delhi-mean-cheaper-flats-in-NCR/Article1-785041.aspx