Unique scheme triggers record sales in Purva Westend project

Bengaluru: Thanks to the first-of- its-kind method, Puravankara Projects Limited, a leading real estate developer in India, has been able to sell half-a-million sq ft of property within four days of its launch of Purva Westend in Bangalore.

The overwhelming response was due to an Innovative Book Building Method (IBBM) adopted by the developer, according to which, customers get an opportunity to book their dream home at a price that was released through a transparent price discovery mechanism, possibly the first time in Bangalore real estate market, the company claimed in a press statement.

Purva Westend

Inspired by the effervescent culture centres of New York's Broadway and London's West End, Purva Westend is situated at Hosur Road, the prime of south Bangalore.

Surrounded by lush greens, this project has sprawling leisure and cultural amenities such as culture club, a grand central boulevard with design symbolic to art, music & cinema, children's musical play area, piano paving with fantasy fountain and ambient music in entrance lobbies, etc that gives you priceless pleasure of participating in an assortment of cultural events in an unruffled abode.

Purva Westend offers numerous firsts - first of its kind and possibly India's largest private open air cinema with private viewing cabanas, the ownership is etched into concrete -motivated by Hollywood's walk-of-fame, swimming pool in the silhouette of a guitar headstock, lego building block room for kids,

Acoustically designed jamming room with music instruments, sing-along karaoke room, tiptoe ballet room, a roof top sky gazing telescope, etc.

Commenting on the pre-launch Jackbastian Nazareth, Group CEO, said, "Purva Westend sets an innovative yardstick in our capital. The project is designed aesthetically keeping in mind the new age and well travelled end user who seeks international sense and comfort at his disposal. We have seen a healthy response amongst our buyers. The introduction of book-building method has helped our customers to discover a fair price in a transparent manner. As a transparent organisation, we are concerned of what we sell should neither be overpriced nor be under-priced. The buyer is assured that he is paying a price which is market-determined."

Situated about 4 km away from Koramangala, Purva Westend connects residents to Silk Board Junction, Hosur Main Road and Kudlu Gate.

The project features 2 and 3 bedroom apartments (approximately sized between 1150 sq ft to 1850 sq ft) along with ultra-modern amenities inspired by art, music & cinema.

Puravankara Projects Limited

Puravankara Projects Limited is a leading real estate company in India, with significant presence in Bengaluru, Kochi, Chennai, Coimbatore, Hyderabad, Mysore and overseas in the United Arab Emirates, Kingdom of Saudi Arabia and Sri Lanka. The company has successfully completed 43 residential and two commercial projects encompassing 18.92 million square feet. Currently, it has 27.97 million square feet of projects under development with an additional 83.22 million square feet in projected development over the next 7-10 years.

Puravankara has the distinction of being the first developer to obtain FDI in the Indian real estate industry through a joint venture with Singapore-based Keppel Land Limited, the property arm of the conglomerate Keppel Corporation Limited. One project under the joint-venture initiative is underway in Kolkata.

Puravankara Projects is listed on the National Stock Exchange of India Limited (NSE) and the Bombay Stock Exchange (BSE).

Realty prices in Hyderabad set to go up 50 per cent: CREDAI

Hyderabad: With bifurcation of Andhra Pradesh is being finalized with the Presidential assent and new government, both at the central and state levels post elections, bringing high scope for development, the Confederation of Real Estate Developers' Associations of India (CREDAI), the apex body for private real estate developers in India, believes that the Hyderabad Real Estate is poised to grow further as the outlook is positive.

Presently, the city of Hyderabad, which has infrastructure comparable to other metros, has been offering residential properties at a much lower price.

With the political clarity after the Parliamentary and state elections coming in few months from now, CREDAI is confident that brand Hyderabad will emerge as the leading destination for the real estate investments going forward.

To offer various kinds of properties under one roof, CREDAI has recently organized Hyderabad Property Show 2014 at Jalavihar, Necklace road, Hyderabad.

The three-day property show, which ended on Monday was inaugurated by Ponnala Lakshmaiah, state minister for IT & Communications, along with the M. Maheedhar Reddy,  Minister for MA&UD, D. Nagender, Minister for Labour, E, T&F, ITI, in the presence of CREDAI senior leadership team comprising of C. Shekar Reddy- President, CREDAI National, N. Jaiveer Reddy-President, CREDAI Hyderabad, S. Ram Reddy, General Secratary CREDAI Hyderabad and a large number of developers, stakeholders and industry members.

CREDAI Hyderabad Property Show 2014 has witnessed the participation of over 100 developers and other stakeholders. The homebuyers were given an opportunity to find out the best projects in the city at one location.

Speaking about the show, N Jaiveer Reddy, President CREDAI Hyderabad, said, "Hyderabad offers the best infrastructure facilities and connectivity across the city. The city is a preferred destination for most of the IT & ITES organizations, Gaming and Animation industry besides the health care sector. The property prices are the lowest when compared to cities with comparable development and infrastructure. 

The CREDAI Hyderabad Property Show 2014 is being organized to bring all the best projects in the city under one roof so that the consumer can choose the best property taking the advantage of the present low prices. This is right time to purchase property after the declaration of Telangana as the prices are going to increase in the near future.”

S. Ram Reddy President CREDAI AP said, "Hyderabad has a current population of about 8 million and plans are in place for setting up a 50,000 acres ITIR region in the city, which is likely to employ almost 15 lakh people directly and about 53 lakh people indirectly in the next 2 decades. This will create a huge demand for housing in the city across segments. We are likely to experience a good growth in the property prices. It is a golden opportunity for the consumers to make the most of the present rock bottom price at Hyderabad."

C Shekar Reddy, President CREDAI National, said, "CREDAI Property show in Hyderabad has always generated a lot of interest with the people. With the political clarity coming, the real estate sector in the city is likely to see a spurt in the demand going forward. Presently the real estate prices in Hyderabad are the lowest hence it is the best time to purchase a property in Hyderabad as we expect up to 50 % increase in residential apartments prices within 12 months."

Govt is looking for partnership to create more affordable homes: Minister

To encourage state concessions and creations of affordable housing stock for construction of half a million houses for Economically Weaker Section (EWS)/ Lower Income Group (LIG) segments, the Centre has recently launched a revised affordable housing in partnership schemes, informed Union Minister for Housing & Urban Poverty Alleviation Dr. Girija Vyas.

Inaugurating the 6th Affordable Housing Summit & Excellence Awards,’ organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) in New Delhi recently, the Minister said, to create more housing stock under affordable category, the government is looking for partnership between various agencies i.e Central &  State government/ housing boards and development authorities and Urban Local bodies (ULBs).

Informing the gathering that the scheme now gives increased subsidies to the tune of Rs. 75,000/- to economically weaker section (EWS) or low income group or LIG dwelling units of size 21-40 sq mt, in affordable housing projects being undertaken through various public private partnerships (PPP), the minister said, “Between Rajiv Awas Yojana (RAY), Rajiv Rinn Yojana (RRY) and Affordable Housing in partnership schemes (AHP), the government of India will support establishment of 2.5 million housing units.”

  

She said, the Rajiv Rinn Yojana (RRY) scheme focuses on demand side incentives wherein ministry of housing & urban poverty alleviation provides 5% interest subsidy on housing loans up to Rs. 5 Lakh. This scheme is also likely to be launched by August this year, mentioned Dr. Vyas.

She said, “The top 10 cities in India viz. Mumbai, Delhi-NCR, Bengaluru, Chennai, Kolkata, Ahemdabad, Kochi, Chandigarh, Pune and Hyderabad account for 15-20% of the overall supply in urban India.”

With the effort to reduce the demand-supply gap in this segment, it is noteworthy that from 2007-2012, housing shortfall has declined from 24.8 miilion to 18.7 million, a 25% reduction, she informed

Speaking on the occasion, Arun Kumar Misra, Secretary, Ministry of Housing & Urban Poverty Alleviation said, government in its last cabinet meeting would likely take a decision on Foreign Direct Investment (FDI) in Real estate sector.

On the popular demand on single-window clearance system, being demanded by developers across the country, he said, “At least a large part of central clearances out of 45 are digitized and should be online for clearance system. In the last one year, more than 43 towns in India have adopted the single window clearance system.

He also pointed out, “Without the amendment of rent control laws, we really add much to the system. Nearly 30% people live on rent and more than 10% of houses are lying vacant because of the rent control laws archives.  We can’t have the central law, it has to be state law because the guidelines are already there, and next group of engagement will have to be amendment of rent control laws with the state government.”

The state will have to come out with the urban housing policy (UHP). The transport and affordable housing has given us clearly what exactly requires to be done and I am very happy that states like Rajasthan, Karnataka and Haryana have taken a lead in affordable housing policy, said Secretary.

The real estate sector in India has been a high growth story.  The construction industry is the second largest industry of the country after agriculture accounting for 11% of India’s GDP. Indian construction industry employs 32 million people and its total market size is estimated at Rs. 2480 billion.

Dr. Vyas said, “Ministry focuses on housing for the urban poor, housing represents a key component of economic growth contributing 5% to the GDP and there still being a shortfall of 18.7% million units. I welcome and laud theses developers in supporting the government of India in progressing towards its goal of provision of housing for all”.

Ranan Kapoor, President ASSOCHAM said, “Nearly 28% of India’s population lives in cities and urban areas, a figure that is expected to rise to 40% by 2020. Majority of housing in urban areas caters to the premium segment; thereby a large section of society is unable to own homes. According to the National Housing Board (NHB), an investment of INR 8.5 trillion is required for construction of Affordable Housing in slum and non-slum areas.

Establishing policies that mandate developers to make provisions for the Economically Weaker Sections (EWS) and Low Income Groups (LIG) will encourage the private sector to take up Affordable Housing projects and ensure their timely delivery. Measures like ensuring availability of developed land, TDR, long tenor finance and cheaper loans, Priority Sector Lending, Viability Gap Funding and Single Window clearances will encourage private sector investment and provide much needed impetus to the Affordable Housing segment”, added Kapoor.

Other who also spoke during the conference were Navin M Raheja, Chairman, Real Estate Committee, ASSOCHAM & CMD, Raheja Developers Ltd., B C Jain, Co - Chairman, Real Estate Committee, ASSOCHAM & Chairman, Sunrise Housing Constructions Limited and D.S. Rawat, Secretary General, ASSOCHAM.

New areas under MRTS to witness realty boom in Chennai

CHENNAI: After the recent test runs of Chenai Metro Train from Koyambedu terminus to Ashok Nagar on the elevated corridor, all eyes now on the emerging new routes that the phase II of the project would connect in future.

The government has recently announced its ambitious plan to connect some of the fast growing neighbourhood areas in West parts of the city such as Iyyappanthangal, Kattupakkam and Poonamalle along with Muggapair, Padi and Kolathur with Mass Rapid Transport System (MRTS).

There will be a new line of Monorail network connecting Vadapalani to Poonamalle via Porur. The line will pass through the busy and congested Arcot Road, say sources.

According to sources, the government would soon begin a feasibility study on expanding metro rail network to connect fast developing neighbourhood on the west of Koyambedu and Poonamallee which are not connected by the MRTS.

The expansion idea is to build small stretches and connect them to other modes of transport including monorail. The study will exploit the possibility of having metro rail on two routes - one originating from Chennai Central Station towards Poonamallee High Road, and a second one from Koyambedu towards the Western suburbs. Sources said the routes and stations of the phase II corridors would be decided later.

Once the metro rail routes are identified, the government would commission a feasibility study, cost and detailed project report.

Some of the areas with would witness real estate appreciation due to commissioning of new metro and monorail routes are Mogappair, Padi, Ambattur, Kolathur, Thiruverkadu, Kumananchavadi, Iyyappanthangal, Kattupakkam, Poonamalle and adjoining areas.

"The government would be looking to fill in gaps in the network of the existing metro rail and mono rail lines that has been sanctioned for construction. In the last few years, several neighbourhoods have grown and there is a demand for fast and hassle-free public transport connectivity to different areas," said an official.

Officials want to solve the problem of limited connectivity options, through phase II of the metro rail project, by integrating different modes of public transport, said a senior government official. "We are primarily looking at areas not covered by phase I on Poonamallee High Road and the northern areas. This corridor may begin from Chennai Central," he said, adding, that the second corridor is to be extended from Koyambedu towards the western and the northwestern parts of the city.

Official said that the government would plan the new routes after considering demands from people who live in developing areas such as Mogappair, Padi, Ambattur and Kolathur and after studying several factors including the emerging industrial trend, real estate development and enormous level of migration.

While addressing the state assembly recently, governor K Rosaiah said the government would ensure faster clearance of Washermenpet to Thiruvottriyur corridor, besides taking up the detailed project report for phase II of the project in the newly-identified corridors.

Besides metro rail, an extended MRTS that connects Velachery to St Thomas Mount, development of outer ring roads, and an elevated freight corridor are some of the projects would not only reduce the congestion on city roads, but also trigger rapid real estate development in the concerned areas, feel realty experts.

Land buying becomes the latest fad in Chennai

True to the saying that ‘the best investment on earth is earth’, Chennaiites are now more inclined towards investing in land notwithstanding the strained economic condition and stagnancy the real estate sector has been witnessing for the last few years, says K Ramanathan.

With buying homes becoming increasingly difficult for lower and middle class segments, people who could invest as low as Rs one lakh to 10 lakh are increasingly looking for land on the outskirts of Chennai for investment purposes and what more, land promoters are jumping into the fray to tap the God sent opportunity offering land in newer locations around the southern metropolis at affordable prices.

However, real estate experts warn that the overwhelming rush towards buying land would encourage fly-by-night promoters to cheat the gullible land seekers.

“The city has been dotted with posters of various sizes informing people about the availability of land in various places like Redhills, Chengelpet, Oragadam, Avadi, Periapalayam, Sriperumbudur, Madurandagam, Melmaruvattur etc from prices ranging between Rs one lakh to Rs 10 lakh. Some even offer DTCP approved plots of 600 to 1200 sq ft for as low as Rs 6 lakh. People have a good chance to invest in properties at low price as land has less chance of depreciation unlike homes,” says Sathish Kumar, Managing Director of Anandam Foundation.

Though investment in land properties would be ideal considering the present slowdown, care should be exercised in choosing the property under one’s budget. 

What made people to go after land in Chennai? S Stalinraja, Senior Manager, Sales and Marketing of Omshakthy Homes Private Limited, says, ‘The present market condition guarantees more value appreciation for land properties compared to flats. For the last few years, some of the areas of Chennai have witnessed depreciation in capital value for flats whereas prices of land have been increasing steadily.’

S Stalinraja

Agrees Mayank, a property investor from South Chennai. ‘I bought a DTCP approved plot measuring 2400 sq ft in Madurandagam for Rs 6 lakh in 2012. It was sold to me at Rs 250 per sq ft. Presently, developers are offering land at Rs 450 per sq ft in the same area, almost 100 per cent appreciation one can say in one year,’ he says.

In the recent years the state government has been focusing on the infrastructure of Chennai and the surrounding suburbs. Adding to market growth, south Chennai suburbs are experiencing heightened activity as multi crore companies are changing the skyline.

Chennai City has grown and expanded exponentially, embracing what was once known as the outskirts, Guduvanchery, Singaperumal Koil and Oragadam, now becoming the hot hubs of Chennai with multi national companies investing in crores. With industries booming and the demand for real estate escalating, areas of south Chennai will continue to grow, no doubt the investment on land property will double in few years from now, says Sathish.

Of the promising investment hotspots for land around Chennai, Chengalpet on GST Road remains on top, offering varied investment options for middle class and upper middle class people. The reasons for those choosing Chengalpet for property investment are many with some of them being, close proximity to manufacturing & IT hubs and Mahindra World City, the business township of TIDCO.

Being the southern gateway to Chennai city, Chengalpet has been one of the fastest developing municipalities in recent times and situated just 30 km from the city center. Apparently termed as ‘New Chennai’, it is the metro’s first integrated business city and India’s first operational Special Economic Zone.

Air, road and rail networks have been expanded to provide handhold service to the public in South Chennai. New master plans have been proposed by Chennai Metropolitan Development Authority (CMDA) in terms of rail route that includes laying of the second lane between Chengalpet and Arakonam, which is about 60 km from Chennai. According to some front-line developers, Chengalpet will become a well-equipped metropolitan city in the next four years.

Chengalpet also has both quality education and medical facility under its belt. The district is equally endowed with top autonomous and affiliated educational institutions in the state.

“Apart from Chengalpet, which provides short-term gain for investors, other places which offer quick appreciation of land value are Oragadam, Sriperumbudur, Singaperumal Koil, Poonamalle, Madurandagam and up to Thiruvallur. One should also look for transport, educational, medical, employment facilities before choosing a land for either investment or residential purposes,” feels Badal Yagnik, Managing Director – Chennai and Coimbatore, Jones Lang LaSalle India, a leading real estate research firm.

Making a pitch on southern and western outskirts of Chennai to get fast and consistent appreciation of land value, Bala however, cautions against buying land in northern and north eastern localities such as Redhills, Periyapalayam, etc, which he feels, have less chances of appreciation in short term. ‘Even for long term also, compared to southern parts, these areas will have less appreciable values. So, one must be very careful from the road-side advertisers offering plots in these areas at affordable prices with hosts of freebies such as free patta, registration, EC, gold coins, scooty etc,” says Badal.

On the percentage of appreciation, southern Chennai areas can appreciate between 30 per cent to more than 100 per cent depending upon the location with in 3-5 years, people who are investing in other areas can expect appreciation between 30-50 per cent in the span of 5-10 years.

The price also varies depending upon the appreciable values, which depend on the infrastructure facilities available and future prospects in the area. For example, a person having a budget of Rs one lakh can look for a land at far off places near Thiruvallur or Arakkonam and can wait for ten years to get a decent appreciation, where as those who look for a fast appreciation of their money can buy a land measuring 1200 sq ft for Rs 10 lakh at places like Oragadam or Sriperumbudur and book profit within three to five years, says Stalinraja.

Legal side

Though there has been a landslide rush towards buying land, legal experts believe that buying land through reputed promoters would save them from being cheated.

“Though lands bought through prominent and reputed developers would be little costlier, these properties would have less chance of having title deed-related problems. One should not blindly believe builders or developers as properties to be purchased should be thoroughly checked for legal problems through a competent authority,” says S Ramaswamy, senior advocate, Madras High Court.

While purchasing land, one should see for appropriate approvals from local panchayat, DTCP or CMDA authorities for using the piece of land for residential or commercial purpose. Encumbrance certificate would give details about the details of liabilities, if any, on the property to be purchased. Transition of legal heir/s should be thoroughly screened for any anomalies in subsequent property sales. One should also demand for Patta, chitta, adigal, copies of necessary approvals and legal opinion.

Lack of awareness drive people to buy land from unscrupulous developers without checking the documents. ‘Most of them do not even ask for a copy of documents such as parent documents, patta, EC, approvals, etc. They simply pay the advance money and give the rest at the time of registration. If any problems arise after few years, at the time of building home in the land, landowners seldom find those who sold the property to them. So it is better to check the documents before registering a land, say legal experts.

“A genuine developer would handover all these copies to the prospective buyer after a token advance which is refundable in case of any legal problem, found later by the client’s lawyer,” says the advocate.

Places to ponder

Areas for short term gain (3-5 years)	Areas for long term (5-10 years)
Oragadam, Sriperumbudur, Singaperumal Koil, Poonamalle, Madurandagam, Kanchipuram, Thiruporur, Sholinganallur, Chengalpet, Padappai, Mahabalipuram, Guduvanchery, Chungavarchathram, Melmaruvathur, Walajabad, Karapakkam	Dindivanam,  Marakkanam, Periapalayam, Redhills, Paruthipattu, Tiruvottiyur, Thiruvallur, Kalpakkam, Uthiramerur, Putlur, Minjur, Athipattu, Thirumazhisai,

Is it the Right Time To Take A Home Loan?

Since there are no prospects of home loan interest rates rationalizing over the mid-term, and price correction in the near future, it is the right time to avail of a home loan and purchase a property in Pune,  says Kishor Pate, CMD - Amit Enterprises Housing Ltd.
 
Because of the on-going economic uncertainties, many aspiring home owners in Pune are still hesitant about taking a home loan and buying a residence. One of the questions that people who seek to make this beautiful city their permanent home is whether it makes more sense to rent now and await a price correction.

For those who are thinking of renting a home in Pune, there are many aspects to consider. In the first place, the affordability of both rental and purchased property is highly location and project specific. To illustrate – someone in Pune who can afford to buy a home in Undri may not even be able to afford the rentals at Boat Club Road, Koregaon Park or Kalyaninagar.

Secondly, whether it makes more sense to rent rather than buy a property would also depend on one's future plans in a particular locality. Does one wish to settle down there, or is one also open to other areas? It definitely makes sense to rent a home while one is making up one's mind about a particular locality.

If an individual is certain of a locality in Pune and is committed to settling down there, the right time to buy a home is now. There are many projects available in the excellent new residential areas that have come up in Pune, and prices are still competitive. There will not be a correction in real estate prices in Pune, as demand for a movement of residential properties in the city is healthy.

The watch-and-wait policy is only valid if there are informed reasons for anticipating a correction in a certain locality. On the whole, property rates in Pune will either remain stable or appreciate, depending on the area. Also, there are no prospects of home loan interest rates rationalizing over the mid-term, and economic indicators suggest that inflation will continue to drive up costs.

Given that it is the right time to avail of a home loan and purchase a property in Pune, one still needs to consider the financial implications. As a thumb rule, an individual's home loan EMI should not exceed a rational percentage of his or her net monthly disposable income. Generally, EMIs can amount to 50% of monthly income.

However, home loans are not the only cause of debt in the contemporary context. People take out personal loans and have pre-existing debts, too. In other words, even a 'fair' EMI percentage could prove unaffordable. The 'ideal' EMI component can only be calculated vis-à-vis a debt-free person's salary. This would be between Rs. 1000-1200 per lakh.

People availing of home loans sometimes forget that they are under legal obligation to repay. There are numerous cases where borrowers have neglected to undertake a due diligence with regards to their financial capabilities and the suitability of the loan of which they have availed. As a result, they find themselves in debt traps and sometimes default on their repayments. Borrowers should stretch themselves only to the extent that they realistically foresee their financial position improving in a given time frame.

No home loan strategy should ever be based on anticipated financial windfalls as a means to pay off the loan. It should be based on realistic factors such as reasonable salary hikes and maturing of insurance policies and investments. If one anticipates a salary hike, even if this amounts to only a certain annual increase, one can consider a 'step-up' option for the existing home loan. Here, the borrower pays a lower EMI initially and steps up the repayment of the home loan in proportion to the assumed percentage increase in income.

HIgh price and interest rates kept housing demand weak in 2H2013: CBRE

New Delhi: High prices and steep interest rates coupled with slow economic growth have kept the housing demand 'weak' in the second half of 2013 , according to a report. 

"A slowing economic growth, coupled with high property prices and steep interest rates, resulted in weak demand for housing during the second half of 2013," global property consultant CBRE said in a statement.
 

In its bi-annual India Residential Market View report for H2 2013, CBRE said high vacancy level and rising construction cost led to a slowdown in construction activity, leading to a decline in new launches, and further delay in project completion timelines.
 

Commenting on the report, CBRE South Asia Chairman and Managing Director Anshuman Magazine said: "Home buyer sentiments remained cautious and subdued due to high price points, with preferences shifting to secondary and emerging micro-markets of leading cities."
 

On the outlook, he felt that housing demand in the high-end and mid-end, as well as in the luxury segment, could remain sluggish across India’s leading cities during the first half of 2014, due to the subdued pre-election macro-economic environment.
 

The report said that liquidity issues and an increasing inventory caused developers to shift their focus from new launches to the completion of existing projects. Still, the consultant said, the delays in project execution continued to remain an over-riding concern in most emerging housing markets. "Developers reduced prices across select projects and offered discounts or marketing promotions to attract buyers in micro-markets with high inventory levels," CBRE said.
 

While the premium housing segment saw a steady interest from high net worth individuals (HNIs) and non-resident Indians (NRIs), end-user demand in the high-end and mid-end segments remained low. The depreciating rupee resulted in an increase in NRI enquiries for property in India.
 

"The Delhi NCR witnessed capital appreciation across most micro-markets. Capital values in locations such as Sohna Road and MG Road in Gurgaon increased by 4–5 per cent owing to strong demand for high-end properties over the last review period," CBRE said.
 

Mumbai’s housing market remained largely stable, with a slight appreciation in select premium micro-markets. The exception was Central Mumbai, where values declined by 4–5 per cent, owing to sluggish demand, in comparison to the first half of 2013.