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Demonetisation disrupts Gurgaon housing market, brings sales & launches to a standstill

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Demonetisation disrupts Gurgaon housing market, brings sales & launches to a standstill

People ready to pay in white through cheques have a good chance to negotiate,” said Ashwin Chawwla, a Gurgaon-based broker and founder of BigDeals.in.

NEW DELHI: The residential real estate market in Gurgaon, already in the doldrums, has ground to a near halt in the wake of demonetisation, experts said. While launches have been put on hold, buyers have been able to drive a hard bargain in the few deals that are taking place, with discounts of 8% or so, they said.

Since the demonetisation announcement on November 8, sales slumped by as much as 90% from the same period last year, experts estimated. While prices are expected to decline further in the months ahead, some developers believe the situation will stabilise by the end of the June quarter, if not earlier.

That demonetisation would have a big impact wasn’t a surprise since cash forms a major component of most transactions, particularly in the secondary market. A significant proportion of unaccounted wealth has traditionally found its way into real estate, which the government aims to do away with.

The sector has also been hit by economic disruption caused by the note withdrawal, with the uncertainty compounded by frequent rule changes. “Many airy statements after demonetisation on price cuts have caused a sense of confusion and propagated a wait-and-watch policy for many buyers,” said Rohan Sharma, associate director, research and real estate intelligence service, JLL India.

IMPACT ON SALES Sales of new homes in areas such as Golf Course Road, Golf Course Extension, New Gurgaon (Sector 74-92), Sohna and Dwarka Expressway have dropped by 90% or so, said Arjun Puri of Puri Constructions. Gurgaon witnessed a decline of more than 30% in new home sales to 278 units in November from 410 in October, according to PropEquity. The year-on-year drop in November was over 50%.

The year-on-year fall in new home sales in Gurgaon in the December quarter is estimated at 60%, according to a property consultant who didn’t want to be identified. “This would be more than the National Capital Region average of about 50%,” he said, adding that Noida has been surprisingly more resilient, with sales dropping 41% in the December quarter.

Gurgaon had an unsold inventory of 33,262 units at the end of November. In the September quarter, Gurgaon witnessed the lowest home sales in 11 quarters at 1,277 units, according to PropEquity.

“Post demonetisation, secondary market transactions (resales) have come almost to a standstill over the last one month in volume,” said Samir Jasuja, CEO, PropEquity.

IMPACT ON LAUNCHES As for the primary market, there have been no project launches since demonetisation in Gurgaon. The new apartment supply this year till September was over 70% down, against the corresponding first three quarters of 2015, according to JLL. Some are optimistic that the market may revive in the New Year.

Navin Raheja, chairman of Raheja Developers, said, “Launches are on hold at present, but will start after some clarity in January.”

Sharma of JLL India feels the implementation of the Real Estate Re gulatory Act (RERA) in Gurgaon may also lead to shortterm supply constraints. “Developers are looking to recalibrate their operations to become RERA-compliant,” he said. The slump will persist for the first two quarters of 2017 in Gurgaon with a possible revival in the latter half of the year, according to Samantak Das, chief economist at Knight Frank.

Source: economictimes.

Residential

NTR Housing Scheme In Full Swing: Chief Minister N. Chandrababu Naidu

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NTR Housing Scheme In Full Swing: Chief Minister N. Chandrababu Naidu

On Thursday, Andhra Pradesh Chief Minister N. Chandrababu Naidu said with the estimated expense of Rs. 5,556.74 crore, the construction of more than 2,44,164 houses, out of the proposed 3,03,044, has been commenced under the NTR Housing Scheme 2017.

While addressing the second day of the Collectors’ Conference he also said the construction of the remaining houses will begin soon. He mentioned that Prakasam and the Kurnool districts are ahead of the schedule in the urban housing scheme. Also, the works are in full swing in the Nellore and the Guntur districts under the rural housing scheme.

According to Naidu, the government will complete 2.5 lakh houses by January next year and another lot of two lakh houses by June.

By October 2, 2018, the state government intends to finish the construction of all the houses and plans to celebrate with massive house warming ceremony with local public representatives. This will help them set an example for housing schemes in other states.

Also Read: Raunak Group Presents Apna Pehla Ghar Campaign

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Residential

A Mumbai Suburbs’ Swift Transformation From Industrial To A Residential Zone: Wadala

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A Mumbai Suburbs’ swift transformation from industrial to a residential zone: Wadala

An industrial zone primarily, Wadala has undergone a drastic transformation in the past decade. Now an upcoming residential area, this Mumbai suburb is one of the seven islands to form the modern Mumbai. It is located on the Harbour line of Mumbai’s railway network.

Due to its proximity to BKC, large scale land development was inevitable, thus fueling the real estate market. Wadala is bordered by Dadar on the West, Matunga on the Northwest and Sewri on the South. Nestled between south Mumbai and the suburbs, Wadala enjoys strong connectivity by road and rail to most parts of Mumbai.

It has a number of flyovers like the Anik Panjrapol Link Road, Elevated road and Santacruz flyover. Thane, CST and Chembur are connected via the Eastern Highway while the Western Highway connects the locality to Bandra and Borivali. Wadala has the biggest bus depot in Mumbai. Furthermore, the multiple infrastructure initiatives like the monorail, Truck Terminal and the expansion of Highway are in various stages of development.

All this has given rise to residential demand and pushed the property value over the last few years. One of the most populated areas in Mumbai, Wadala has a large number of old temples, churches and dargahs, university campuses, schools, reputed hospitals and is also home to a former world’s largest IMAX dome theater. There are many stores, showrooms and malls around Wadala like the R Mall, High Street Phoenix and Palladium Mall.

Ramesh Nair, COO – business and international director, JLL India says, “A decade ago, property prices at Wadala were as low as Rs 2,800 per sq. ft. and it rose to Rs 14,000 a few years ago.”  As the infrastructure plans are on their way, so are the renowned developers like Ajmera, Dosti Group and Lodha Group among others.

Wadala at present offers one of the highest returns on real estate investments in the region. All the above-mentioned developers have their luxury projects in the area.

Ajmera I-Land introduces Aeon, Zeon and Treon towers with 2, 3 and 4 BHK plush homes. Conceptualized by renowned Singapore based Architects Space Matrix, these spaces with top-of-the-line lifestyle amenities exude exemplary class and finesse. The first residential floor begins at 110 feet from the ground level and offers several modern lifestyle amenities like kid’s pool, swimming pool, gymnasium, club house, open space and landscaped gardens, yoga room, kid’s play area and senior citizen corner.

Dosti Ambrosia is a 36-storey tower nestled in the 18 Acre Township of Dosti Acres. The architecture of the project was undertaken by renowned Hafeez Contractor in the 2 and 3 BHK apartments. It offers an exclusive rooftop swimming pool with 40,000 sq. ft. of landscaped gardens. You will find all modern conveniences like Gymnasium, Tennis Court, Indoor Badminton Court, Yoga and Meditation Room, Elderly Corner, Banquet Hall, Indoor Games, Indoor Badminton Court, Guest Rooms, Restaurant, Grand Entrance Lobby, Kids Play Area, 2 Club Houses and an Amphitheatre.

New Cuffe Parade by Lodha Group offers its residents all the comforts of a world-class lifestyle. The 2 and 3 BHK homes are spread in over 23 acres of land with 15 acres of stunning landscape and 75,000 sq. ft. of the club house. It includes 11 swimming pools, an organic farm, cricket pitch and multiple themed gardens. The buildings are designed by the world renowned WOHA in Singapore and the landscape was planned by Sitetectonix in Singapore.

Also Read: Mumbai to get Building Taller than Burj Khalifa, Road Bigger than Marine Drive

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Residential

Rajasthan Government May Hike The Affordable Housing Prices

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Rajasthan Government May Hike The Affordable Housing Prices

The prices of homes under the ambitious Mukhyamantri Jan Awas Yojana are expected to be increased by the state government.

According to the sources in the empowered committee meeting to be held on Monday, a proposal to increase the cost of a low-income group (LIG) and economic weaker section (EWS) houses will be proposed. Urban development and housing (UDH) minister Srichand Kriplani will chair the meeting. The LIG and EWS houses, presently are being constructed on government lands by private builders. These homes are sold at a fixed rate of Rs 1,250 per sq feet; out of which 1000 rupees per sq ft is given by Urban Improvement Trust (UIT), development authorities and local bodies to the builders.

According to provision 4(A) and 4(B), the developers are supposed to build EWS and LIG houses on government land. Seventy-five percent of such government land can be used in building EWS and LIG houses, while the remaining 25% can be sold by the developers. However, since the rates provided by the government are less the developers are not showing interest to construct houses under these categories. Sources said, “In Jaipur, not a single developer has shown interest in constructing houses under this model. The JDA has invited expression of interest (EOI) several times.”

The UDH is leaving no stone unturned to attract the builders in order to achieve the target of constructing 10 lakh houses by 2019. The sources mentioned, “As per the new proposal, the department has proposed to provide Rs 1,600 per sq feet rate to the developers. The land rates have increased subsequently over the period of time; this is why increasing rates has become a need of the hour.”

Sources further added, “The developers are constructing G+3 buildings at present. However, it is not cost-effective. It has been proposed to construct G+2 buildings for LIG and EWS category.”

Also Read: The Impact Of Regulations On The Real Estate Market

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