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Gurgaon realty developers reducing apartment size to make them more affordable, revive demand

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Gurgaon realty developers reducing apartment size to make them more affordable, revive demand

GURGAON: The days of large, swanky flats in Gurgaon may be taking a back seat for a while. Real estate developers are reducing the size of apartments to make them more affordable and prop up the housing market in the satellite town, where slowing sales have been made worse by demonetisation.

Traditionally, Gurgaon’s apartments range in area from 1,800 to 6,000 square feet, according to Surabhi Arora, a senior associate director at Colliers International India, a real estate consultancy. “In the recently launched projects, the area of apartments is anywhere between 1,100 to 1,600 sq. ft.,” Arora said.

According to brokers, the prices of these smaller apartments vary from Rs 60 lakh to Rs 1 crore. Over the past year, developers have trimmed apartment sizes, claiming they’re launching a different category.

At Tata Housing’s Tata La Vida located off the Dwarka Expressway, there are two- and three-bedroom apartments with areas from 1,276 to 1,579 sq. ft. At Supertech Azalia in Sector 68 on Sohna Road, the flats come in two sizes: 1,020 and 1,225 sq. ft. M3M’s Sierra in Sector 68 offers seven types of flats, ranging from 1,197 to 1,545 sq. ft., and ILD’s GSR Drive in Sohna has units ranging from 985 to 1,335 sq. ft.

“Smaller-sized units have become popular due to affordability factor and changing profile of home buyers,” said RK Arora, chairman of Supertech Ltd. “The trend for smaller units is likely to continue as families become smaller and more single working individuals buy property. Further, it is much easier to maintain small-sized apartments even as builders offer a wide range of facilities even with such units, including parking space, clubhouse and swimming pools.”

The growing popularity of smaller apartments ties in with the government’s emphasis on affordable housing. The finance minister proposed in the budget earlier this month to grant infrastructure status to affordable housing, which will allow developers to borrow funds at a lower cost.

“The time ahead will be completely dominated by the affordable housing segment as the government has also stressed towards diminishing the shortage of over 2 crore housing units in the country,” said Pradeep Aggarwal, chairman of Signature Global Group, a Gurgaon-based developer. “New project launches have shifted mostly towards the affordable housing segment supporting the Housing for All mission.”

The sale of residential property in Gurgaon plunged to about half of the peak numbers in 2016, while new launches, too, declined. Only 6,700 units were launched last year, which is one-third the level in 2015, according to a report by Colliers International India.

Delays in completion of projects and lack of infrastructure development in emerging corridors such as the Dwarka Expressway – another road linking Gurgaon and New Delhi – adversely impacted demand. The central government’s demonetisation move, scrapping Rs 500 and Rs 1,000 notes in November, made the situation worse. Transactions almost came to a halt in the last two months of 2016.

Speculators who fuelled demand during the peak times have all but disappeared from the residential market due to the fall in the percentage of their profit in the resale market. Those remaining are end-users.

“Before demonetisation, we were looking at a 65:35 ratio between end-users and investors. That changed to 90:10 post-demonetisation,” said Avneesh Sood, a director at Eros Group.

In the past couple of years, slowing sales have brought drown prices by about 10% in Gurgaon. Even after discounts and incentives offered by developers, buyers have kept away. Traditionally known as a luxury real estate destination, Gurgaon has a high supply of units with a price tag of Rs 1 crore and above. End-users comprising middle-class and service-class home buyers find such high property prices out of their reach.

Source: Economic Times

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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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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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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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