List of Town and Country Planning Department for various states in India

Author: Sachin Gupta | Find me on Twitter Follow @sach_gupta

Town and country planning is an integral institution of state’s urban development. The Department of Town and Country Planning is responsible to regulate the development and also to check the haphazard development in and around towns in accordance with the provisions of state’s formulated urban development policy.

In order to involve the private sector in the process of urban development, the Department grants licenses to the private colonizers for development of Residential, Commercial, Industrial and IT Park/Cyber Park Colonies in accordance with the provisions of the State’s Development and Regulation of Urban Areas Act. These licenses are granted to the owners having clear title of land in their favor.

Private real estate developers or colonizers are expected to pay fee to ‘Town and Country Planning Department’ for land conversion, and License grant.

The Town & Country Planning Department is meant for the preparation of master plan for cities and towns, along with Zonal Development Plan. Department is also technical adviser to all the Development Authorities, Regulated Areas, Urban Local Bodies of the State. Other than this, the department is also involved in framing of the State Housing policies. Various Buildings Bye Laws, Zoning Regulations with reference to the administrative control of Housing and Urban Planning Department of the State come under the ambit of Town and Country Planning Department.

Customers who buy apartments from private developers should visit the local state ‘Town and Country Planning Department’ website to verify the project License number and other related approvals.

Here is the list of Town and Country Planning Department for Indian states.

List of town and country planning department for various states in india from Green Realtech Projects Pvt. Ltd

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Secunderabad gears up for transformation

Hyderabad has always been the first to see widespread development and infrastructural growth. One half of the twin city, Secunderabad came close second to Hyderabad for all major projects and plans by the state government. Despite the fact that both these cities come together to form the 6th largest urban agglomeration in India. But things have changed now, with Hyderabad getting densely populated and with little or no land availability, it has given an opportunity for Secunderabad to flourish. In the past few years there has been vast improvement in the area with better infrastructure and other basic amenities.

Connectivity and social infrastructure has remained an important asset for this city. It is connected to Hyderabad via Tank Bund Road, one of the most important arterial roads. This erstwhile British colony has also remained abreast with all major educational and healthcare facilities for its residents. Largely a cantonment area, it is also headquarters to the South-Central Railway- the largest railway junction in the state and many other defense units. Most Secunderabad properties have hence been a part of the public sector, owing to a number of government establishments.

Today this city has opened up to private commercial investment. Secunderabad has seen a surge of IT companies like ITC, Infosys, and Mahindra Satyam in the past decade. Like Hyderabad, it has also greatly benefited by the IT/ITES sector. Real estate in Secunderabad has been the biggest beneficiary of this trend. It has resulted in a major escalation in prices of both residential and commercial real estate. Land owners and property owners have greatly benefited from this, thereby fetching manifold ROI (return of investment).

Hyderabad 'Metro Rail’s Corridor 3' runs across Secunderabad at the railway junction and Parade Grounds area. This corridor which is running from Nagole to Shilparamam will be an important factor in determining the changing real estate scenario here. The city has been facing political and economic turbulence for the past few years. The prices have seen a good pace since the settlement of the Telangana issue, but post-election stability will have a great impact. This whole issue of Telangana came to rest in Feb 2014 with investors and Realtor heaving a sigh of relief. The completion of Hyderabad metro by December 2014 will improve the realty market too.

Populated mostly by individual homes, Secunderabad has seen a growing trend of apartments and gated communities. A recent development in the local real estate division, the residents have shown a good response to multistory apartments. The last quarter of 2014 will see the announcement of many new projects in the area to cater to the growing population wanting to live closer to the entertainment hub of Hyderabad. Flats in Secunderabad will see a huge price appreciation mostly after the completion of the metro rail project.

This infrastructure development will bring the twin cities together, as the transportation will not be a hindrance anymore. Things are looking up for Secunderabad this year with many important projects by top builders in the pipeline.


This is a guest post by Ramesh Yadav

List of Housing Boards in India

Author: Sachin Gupta | Find me on Twitter Follow @sach_gupta

To boost housing projects all over India and to achieve the goal of urban and housing development, Housing Boards have been formed in various States of India. These boards work towards expansion of the property market and development of well-planned and ideally located colonies. Incorporated by the Government of different States after hard work and strenuous efforts of many months, the mandate of the Housing Boards is to carry out well organized as well as aesthetically designed development programs all over the nation.

The objectives of the Housing Boards of India are:

• To provide housing solutions to needy citizens at reasonable prices.
• To construct houses and to allot them under the categories of high-income group, middle-income group, and low-income group.
• To select the sites for housing and decide the services to be provided.
• To formulate schemes for self-financing that helps the middle and high-income groups.
• To construct commercial complexes, multi-storied buildings, and shops and then to lease them out so as to secure financial resources.

Here is a detailed list of housing boards across India:

List of housing boards in india from Green Realtech Projects Pvt. Ltd

Source: National Housing Bank

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Low rental values make Miyapur the best place to buy property in Hyderabad

From being one of city's peripheries, Miyapur today boasts of having many multi-storied buildings and a number of housing projects. Although the landscape of Miyapur has changed in the past few years, this neighbourhood is blinking on the real estate map thanks to its great location and connectivity to other localities like Kondapur, Madhapur, Bachupally, HITECH City and Gachibowli. Located about 22 kilometers northwest of Hyderabad, Miyapur is part of Greater Hyderabad. This locality is home to many lakes, providing a picturesque view to all its residents. Another factor that is improving Miyapur’s real estate is its commercial developments.

According to recent reports localities like L.B. Nagar and Miyapur are considered to be the best places to buy a house. Due to low rental values, Miyapur is slowly becoming a destination for builders to create affordable housing options for potential buyers. Apart from these, the vicinity has a number of multi-storey apartment, independent houses and many residential plots. One is definitely spoilt for choice every time they decide to buy a property here. With the locality having all basic amenities like healthcare centers, schools and entertainment zones, a house for sale in Miyapur could cost anywhere between Rs. 2,600 to 4,000 per sq ft.

Being a developed industrial area, Miyapur is also a home to a number of government offices. Bharat Sanchar Nigam Limited, the bus body building unit of Andhra Pradesh State Road Transport Corporation and the Department Registration and Stamps for Miyapur has their offices in Miyapur. Because of these establishments, the land prices in Miyapur are all set to skyrocket in the near future. If buying is not your option, you could always opt to rent a property. Apartments in Miyapur for rent can cost anywhere between Rs. 8 and 11 per sq ft.

With its excellent connectivity, Miyapur has a number of significant roads that keeps this locality connected with the city. Hafeezpet Roads, Kukatpally Road and the upcoming Yellamma Banda road are driving the realty sector here. Apart from these internal roads, the Outer, Inner and Regional Ring Roads along with the state and national highway helps connect Miyapur to other sections of the state, making this locality a hotspot for builders and investors.


This is a guest post by Sulabha. Want your content to be published at NirrtiGo, contact us at nirrtigo@nirrtigo.com

Don’t blame the ‘Babus’ of town planning departments and city development authorities

Author: Sachin Gupta | Find me on Twitter Follow @sach_gupta

Another one bites the dust! Well, we are talking about the latest scam or scandal or irregularity or blunder or whatever you may call it in real estate sector in India. This time, it’s the Supertech’s Emerald Court project in Sector 93-A Noida on Noida – Greater Noida expressway.

What happened? The project was started in 2006 and permission for 15 towers of 11 storeys each was given. However, in 2009, 2 towers namely ‘Apex Tower’ and ‘Ceyane Tower’ of 40 storeys each were added to the project. That means addition of 857 new apartments.

So what? It all looks fine, where is the irregularity? Well, these two new towers violate the UP government’s 2010 apartment act. The 2010 apartment act which was being designed by ‘Babus’ says that builder should take permission from existing buyers before construction, and should also follow the maximum density norm (maximum number of people in one acre), FSI norm, minimum distance between two towers, etc.

So, were these guidelines of the ‘Apartment Act’ flouted? Yes, that seems to be the case and therefore Allahabad High Court has ordered to demolish these 2 towers of 40 storeys each.

So, whose fault is it primarily? Builder says, we will appeal in the Supreme Court against the judgment because project is legal and has all the necessary approvals from the Noida Authority? Whose fault is it then? Is it the fault of ‘Babus’ of Noida Authority? Nah….it can’t be, they work hard to make sure that whatever they design (2010 Apartment Act) is implemented by hook or crook. Then whose fault is it? It’s the customer’s fault you stupid…why did they buy these apartments? They should have done their due-diligence….isn't it? Hmm…..

Well, on a serious note, time has come for Courts to look at the role of the ‘Babus’, and if necessary spank them at their back side severely for allowing illegal construction.

Customers can not be taken for a ride by colluding builders and authorities. The babus who are supposed to protect the interests of home buyers are busy amassing tens or hundreds of crores of illegal property for themselves by taking advantage of their positions.

Since, 2011, these scams have been a common phenomenon:

In 2011, DLF’s Belaire project in Gurgaon met the same fate wherein charges of project delay, illegal construction of additional floors were raised by the Resident welfare association of the project.

In 2012, Noida Extension fiasco came to limelight wherein farmers agitated against the authorities for acquiring land at throw away prices and also changing the land use from industrial to residential. The matter was resolved after courts intervened in and farmers were compensated adequately.

In 2013, we had Campa Cola fiasco in Mumbai wherein illegal floors were built in late 1980s and were ordered to be demolished in 2013.

And now in 2014, we have the Supertech Emerald Court matter in Noida wherein again the court has ordered demolition of illegal towers.

So, will this continue in coming years? Will the ‘Babus’ pay attention to the sufferings of home buyers? Will the ‘Babus’ stand up and implement the laws and acts in all fairness? We will see….But, thankfully for the common man; all is not lost as long as Courts discharge their duties.

Greed on the part of the property developer is ubiquitous, but what explains greed of these Babus who in reality are supposed to keep a check on the greed of developers???

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Foreign Direct Investment (FDI) Flows in real estate and housing sector in India

Author: Sachin Gupta | Find me on Twitter Follow @sach_gupta

Foreign Direct Investment (FDI) is a good indicator of a country’s attractiveness to global investors. India has been able to attract substantial amount of FDI into various sectors such as services, construction development, telecommunications, computer hardware & software, drugs & pharmaceuticals, chemicals, automobile, power, metallurgy, hotel & tourism. Significance of Foreign Direct Investment can hardly be underestimated and therefore government of India has devised policies which have attracted FDI into various sectors mentioned above. Here is a quick look at the flow of FDI into India since April 2000.

It can be noted from above chart that FDI flows into India jumped from financial year 2006-2007 on account of policy initiative by the government which permits FDI under the following forms:

1. Financial collaborations.
2. Joint ventures and technical collaborations.
3. Capital markets via Euro issues.
4. Private placements or preferential allotments.

Foreign Direct Investment (FDI) in CONSTRUCTION DEVELOPMENT: TOWNSHIPS, HOUSING, BUILT-UP INFRASTRUCTURE

The FDI Equity flow in housing and real estate sector was 8.9% in financial year 2008-2009, 11% in financial year 2009-2010, 5.3% in financial year 2010-2011, 8.9% in financial year 2011-2012, 5.9% in financial year 2012-2013 of total FDI equity flows into India. Overall, the sector has attracted a total of 23046.61 US $ Million from April 2000 to January 2014. The total FDI equity flows into India during this same period has been 212153 US $ Million. In other words, from April 2000 to January 2014, the construction development sector including of townships, housing, built-up infrastructure has attracted about 11% of total FDI equity inflows.

In 2005, India relaxed the norms for FDI inflows into real estate and housing sector by allowing Foreign Direct Investment under the automatic route which means no prior permission is required for approval either from Government of India or the from the RBI. The policy permits FDI up to 100 per cent under the automatic route in townships, housing and construction development projects and hospitality sectors such as residential complexes, shopping centers, malls, multiplexes, Cineplex, commercial offices, hotels/service apartments, resorts, hospitals, educational institutions.

Here are the detailed guidelines for FDI in Real Estate:

Guidelines for fdi in real estate in india from Green Realtech Projects Pvt. Ltd

Can the sector see increased FDI in near future?

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Will real estate stocks recover after elections?

Author: Sachin Gupta | Find me on Twitter Follow @sach_gupta

Real estate S&P BSE realty Index was introduced in July 2007 at the height of real estate boom in India. The S&P BSE realty Index was hovering at 7019.88 on 17th August 2007, whereas the S&P BSE Index was 14141.52 on the same day. However, by the end of 2007, the S&P BSE realty Index grew by whopping 81% to reach at 12727.42, while S&P BSE Index grew by 43% to reach at 20286.99.

And after growing in initial few months of 2008, the indices fell sharply in 2008. Realty index fell by 82%, whereas BSE Index fell by 52% in 2008 because of global financial crisis which was triggered by US sub-prime crisis.

Here is a history of S&P BSE realty Index compared with the S&P BSE Index:

Fall of real estate stocks

The BSE Realty Index stands at 1468.4 on 31st March 2014. The fall has been substantial and retail investors are shunning from buying the stocks of realty companies. Among 12 Indices such as BSE Realty, BSE Power, BSE Metal, etc, the BSE realty has been the worst performer. In 2013, the BSE Realty Indices fell by 32%. What could be reasons for under-performance of real estate stocks? We list down the reasons:

Reasons for fall

• Rising debt levels

The debt on balance sheet of 11 listed firms in BSE Realty Index stood at Rs. 42000 crore till 31st December 2013. High debt levels erode the profitability of firms because major chunk of income generated goes in servicing of the debt. And which in turn, puts strain on sustainable growth of the firm.

• Falling demand

Demand from home buyers has remained low on account of lack of job creation and high inflation. Companies have put off or slowed down their investment plans and therefore job creation has been low. At the same time, Inflation has put off the investment by home buyers due to falling savings rates. Unless, inflation moderates, the sector will continue to see weak demand from home buyers.

• High interest rates

Interest rates have remained high for last 2 years resulting in high cost of borrowing for home buyers and it’s not surprising that transaction volumes have come down resulting in drop in sales of realty companies.


Recovery in last month (March 2014)

However, March 2014 witnessed some sort of recovery in real estate stocks.

Will the recovery continue? There is all the likelihood of it and post elections, economic recovery is expected. This in turn could result in revival of realty sector on account of the following:

1. Improved GDP Growth
2. Housing prices have corrected and it presents buyers an opportunity to buy the home now
3. Moderation in inflation
4. Reduction in interest rates

Appendix:

BSE Realty Index comprises of stocks of following companies:

Anant Raj, DB Realty, DLF, Godrej Prop, HDIL, Indiabulls Real, Mahindra Life, Oberoi Realty, Omaxe, Phoenix Mills, Prestige Estate, Sobha Developer, Unitech.

What do you think?

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Why National Housing Bank’s move to allow lenders (banks and housing finance companies) to give 90% of property value as home loan can actually be detrimental?

Author: Sachin Gupta | Find me on Twitter Follow @sach_gupta

Recently, country’s National Housing Bank floated a proposal that seeks to allow banks to lend 90% of property value to home buyers. According to the proposal, people seeking home loan above Rupees 20 Lacs can avail 90% of property value as home loan from banks and housing finance companies. However, these loans need to carry mortgage guarantee cover from companies registered with RBI. Lending institutions (Housing Finance Companies) need to enter into a contract with mortgage guarantee companies when the loan application is originated.

With mortgage guarantee companies coming into the picture, there is widespread belief that it will help in reducing the default risk. And at the same time, it can help in securitization of home loan portfolios. Now, isn't this what is practiced in USA? Where, one can avail 100% of property value as home loan and that loan is guaranteed by Federal Reserve supported fannie mae and freddie mac. When a loan is guaranteed by State’s agencies, investment bankers jump in and create a portfolio of home loans and securitize it and sell it to investors. These investors get returns on installments generated from home loan buyers.

The only difference it seems in Indian context is that 90% of property value is given as loan as against 100% of property value in USA. The other difference is that in US, person availing the loan is not personally liable to pay in case of a default, but in India, person will be liable to pay the amount in case default happens.

• 
  

What happened in USA?

We all know what happened in sub-prime crisis in USA in 2008. When property prices began to fall people simply walked away by putting the house key on the bank’s table and that triggered a financial crisis. Read more about the US sub-prime crisis here. We in India do not want to repeat that mistake. What can happen? Let us think, you buy a property worth Rupees 1 crore and avail 90 Lacs in Home loan with about 90K installment every month for 20 years. Now, due to slowing down of economy as is the case today, you are not able to pay those EMIs. What will bank do? Take possession of your house and sell it to claim their investment in that house. We all know, Banks will be left with no choice but to sell the house in distress in tough economy thereby making a loss. However, banks have already sold this portfolio to investors and the home portfolio is already guaranteed by mortgage Guarantee Company, who is registered with RBI. So, who bears the brunt of slowing economy, yes, mortgage Guarantee Company, just like fannie mae and freddie mac did in USA. So, ultimately, the system will be saved with tax payer’s money.

One can argue that we are stretching the matter too far, yes, we are stretching the argument, but there is ever so slight possibility of such a scenario happening in near future. Hope, policy makers will consider that scenario before bringing in this new policy. As we see today, real estate sector is in doldrums and property prices in India have in fact fallen or remained stagnant. Will people who have bought the property stay invested when returns from property investment are actually less than what they will be paying to the banks against home loan? If the returns from property investment stay low for several years, then we might see the US sub-prime situation repeating in India with the implementation of new policy.

As a matter of fact, Indians banks were praised in 2008 for being conservative. Looking around the globe, Chinese banks have a limit to what they’ll lend for housing. Currently, buyers need to put between 20% and 30% down on the value of a house before securing a loan. While in Singapore it is 80% for first home and 60% for second home. Why are Indian policy makers raising it to 90% when we do not have huge scale infrastructure plans? Isn't the whole move going to put pressure on existing cities, further increasing the property prices?



OK, let’s think of the consequences of this new move

Pros

• More people will be able to buy a house

Of course, the move is aimed at encouraging people who are sitting on the fence to buy the house. Till now, it took people some time to arrange for the 20% of the property value. But with this new move, all they need to do is arrange for Rupees 10 Lacs to buy a Rupees 1 Crore house.

• Revival of real estate sector demand

With increased sales velocity of homes, the demand for overall real estate sector can pick up. The industries such as cement, steel will also see revival in demand. Overall, the move can boost the economy.


Cons

• More speculators will come into the picture

With only 10% of property value to be paid by the investor, it will encourage property flippers to take advantage of the new policy. One would simply invest in an under construction project and exit as soon as the prices have risen substantially. Can government bring in measures wherein property speculation is controlled? Can government differentiate between first time home buyers and second time home buyers as is the case in Singapore? It seems unlikely. Who will suffer? The real property buyer will suffer due to higher property prices.

• Without new cities or infrastructure, it might increase the property prices further

Do we have plans in place for city infrastructure development? Or build new cities? Unless, those plans are in place, the new move will actually put pressure on the existing cities and property prices will further increase with the new move. Simple because, more people including the speculators will purchase a house in the existing cities.



What we instead need?

• Securitization

Surely, securitization is the need of the hour. But it can be brought in at existing 80% Loan to Property Value (LTV) ratio. More on, how securitization can help in housing finance in India?

• REITs

Real Estate Investment Trusts are important and we need them in India. REITs will encourage retail investors to participate in property markets who till now cannot afford to invest in real estate. REITs can provide the necessary financing for realty sector which it needs today. Find more about REITs in India here.

• Rent Laws

The government needs to reform the Rent act which is outdated. There are large numbers of people in India who own multiple properties and do not bring that stock into the market because of the fear of illegal possession of their properties by the tenants. Reforming the rent laws will revive the rental market and that will bring some sanity to the property prices.

• Policies to differentiate between first time home buyers and second time home buyers

Government is right in encouraging home ownership. But differentiate between first time buyers and speculators. It should be quite simple to track at registrar’s office and by making it obligatory for real estate developers to disclose the details of their buyers to a central authority. If the 90% Loan to Value (LTV) policy has to be brought in, it should be for first time home buyers and not for property speculators.

what do you think??

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Why should we all rate and review real estate and housing projects? Your opinion matters!

Author: Sachin Gupta | Find me on Twitter Follow @sach_gupta

Sumit is working in an IT company for the last 12 years. He got married 6 years ago and having been relocated to many parts of the country in these 12 years, he finally decided to settle down in Bangalore. With this in mind, he started hunting down for the house within his budget. After some 4 months of home hunting, he zeroed in for a developer project in an upcoming region within Bangalore. He signed in on the sale purchase agreement and made the booking amount. He booked an 1800 sq ft apartment in January 2008; he was looking forward to moving in by late 2011, as promised by the builder. But even after four years of paying the entire sum, the developer seems in no hurry to hand over the possession of Sumit’s house.

"I had aggregated mine as well as my wife’s savings to purchase this house. The company was to hand over the possession by December 2010, but even by January 2011, they had not begun any construction activity on the proposed site," he says.

Sumit is not alone. There are countless such cases where buyers are still waiting for their homes and have not received a single rupee as compensation from the builder. The wait has been particularly tough for those whose EMI clock has begun ticking.

There have been cases where cost of home has been unjustifiably escalated during the construction stage; possession has been delayed; short changing on carpet area and super area of the home; sub-standard amenities; and so on.

So what is it that is plaguing the industry?
Why does this happen? Why don’t builders deliver on their commitments as stated in the sale purchase agreement? There are many reasons ranging from lack of demand, paucity of funds for the developer, delay in getting regulatory approvals, unethical practices, greed, etc.


Steps taken to cure the problem (At Government and private sector level)
Can the situation be resolved? There have been efforts made by developer community. An industry body has come up with a code of conduct for its 6,000 members to 'maintain the honor and dignity of developers, promoters and builders'. The government has proposed to form an industry watchdog “Real Estate Regulatory Act”. However, will these steps solve the issues? There is cynicism among public and experts alike about these remedies.


What can we do as a community? Why should we rate and review the real estate and housing projects?

• We seek advice of others when purchasing a smart phone, laptop, car, and many other commodities. For many buyers, buying a home is a lifelong commitment wherein one has to pay EMIs for several years. Therefore, it makes sense to share and discuss the details about a realty project before making a purchase.
• Discussing at an organized online platform goes a long way in making an informed decision wherein people can express their opinions in form of reviews, ratings, common causes, and so on. The whole system would act as a preliminary home search tool wherein good developers are segregated from the bad ones.
• People who have bought the property or have the knowledge of real estate sector can rate and review their housing project. This will not only help future buyers but also put a check on the current real estate practices.
• Writing a review and rating a project on various parameters such as location, floor plan, amenities, etc. will clearly help in differentiating the good project.

How to rate and review real estate projects in India?

Step 1: Visit NirrtiGo

Step 2: Find your project by typing in builder name, or project name, or search by locality

Step 3: Click on ‘Rate this project’ button

And then simply write the “Title of the review” and “detailed review including your recommendation”. At the same time, rate the housing project on various parameters such as location, floor plan, amenities, specifications, value for money, ratio of carpet area to sale-able area, etc.

So, did you rate and review your project??

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An overview of Bangalore residential real estate market

Author: Sachin Gupta | Find me on Twitter Follow @sach_gupta

When one thinks of Bangalore, the first picture that comes to mind is beautiful weather and the hub of information technology companies. Since past few decades, among all cities in India, Bangalore has grown the fastest. The driving industry in Bangalore is IT and ITES and this has had a positive impact on the supporting industries as well.  The revenues from IT-BPO sector has grown substantially over the last 5 years which has resulted in increased job opportunities for engineering talent from across the country.

India’s technology and BPM sector (including hardware) is estimated to have generated USD108 billion in revenue during FY13 compared to USD100.9 billion in FY12, implying a growth rate of 7.4 per cent. The IT-BPM sector in India is estimated to expand at a CAGR of 9.5 per cent to USD300 billion by 2020. The sector increased at a CAGR of 25 per cent over 2000–13. This whole economic activity generates employment opportunities and at the same time enables growth opportunities for other industries.

Real Estate in Bangalore has grown on account of job creation by IT/ITES industry. Multi-cultural population with good social infrastructure, excellent educational institutes and constantly upgrading physical infrastructure has presented real estate developers with the opportunity to develop quality real estate projects, particularly in the residential space.

Number of ongoing projects in respective regions

Approximately 672 residential projects till 2013 (high-end, mid segment, and affordable segment) are under various stages of construction in Bangalore. 

• Here is a snapshot:

South Bangalore (Banashankari, Electronic City, Hosur Road, Gottigere, Chanda Pur, Bannerghatta Road, JP Nagar, Koramangala, Vijayanagar, BTM Layout, Kudlu Gate, Jayanagar, Bommanahalli, ChandaPura, Attibele, Kanakapura Road, Begur Road, Anekal, AnjanaPura, Ananth Nagar) – 168 residential projects out of which approximately 26 projects offer villas/row houses.

East Bangalore (Haralur, Sarjapur Road, Horamavu, Whitefield, HSR Layout, Sarjapur, Hoodi, Hosa Road, ITPL, CV Raman Nagar, Nagavara, Haralur Road, Banasvadi, Marathahalli, Mahadevapura, Old Airport Road, Indira Nagar, Bellandur, Brooke Field, Basava Nagar, Amrutahalli, Varthur, Outer Ring Rd, Old Madras Road, Ramamurthi Nagar, Kadugodi, Panathur Village, Doddanakkundi, TC Palya) – 255 residential project under various stages of construction out of which 55 are villas/ row houses project.

North Bangalore (Devanahalli, Doddaballapur Road, Yeshwanthpur, Malleswaram, Hebbal, Hebbal Flyover, Jakkur, Jalahalli, KR Puram, RT Nagar, Yelahanka, Airport Road, Bellary Road, HBR Layout, Hennur, Hennur Road, Rajaji Nagar, Sahakar Nagar, RMV Extension, Thanisandra, Tumkur Road, Vidyaranyapura) – 149 residential real estate projects under various stages of construction out of which 31 are villas / row houses project.

West Bangalore (Mysore Road, Rajarajeshwari Nagar, Kengeri, Sanjay Nagar, Magadi Road, Uttarahalli, Nagarbhavi) – 24 residential real estate projects under various stages of construction out of which 3 are villas / row houses project.

Other areas including Bangalore central – 76 residential real estate projects under various stages of construction out of which 19 are villas / row houses project.

Total number of apartments in each respective region till 2013

1.87 Lacs of housing units including the high-end, mid segment, and affordable segment are in the process of construction.

Types of apartments

Out of the total of 672 residential projects under various stages of construction, the proportion of projects offering 1BHK, 2BHK, 3BHK housing units are given below in a detailed graph. The graph signifies that more than 70% of all projects offer 2BHK, 3BHK housing units with about 10% of projects offering 1BHK, 5BHK units.

Housing Prices trend

Prices in Bangalore central have been stable over the last few quarters. However, in micro markets such as Madivala, Banaswadi , Jagjeevan Ram Nagar, Yeswanthapura, Mathikhere, BTM Layout, Sultanpalya, Lingarajpura, BCC Layout prices have fallen in last 2 quarters.

Recently launched projects

Following residential projects have been launched in the Oct-dec 2013 quarter.

Skylark Ithaca (Phase-I), SJR Blue Waters, Patel Smondo 4.0, Brigade Cosmopolis, Shriram Chirping Woods, Monarch Aqua, Sumadhura Silver Ripples, Prabhavati Daffodils, Goyal Orchid Woods, Nitesh British Columbia, Golden Panorama, Prestige Ivy Terraces, Adarsh Premia, Purva Skydale, Century Ethos, Ajmera Stonepark, Sterling Ascentia, Prestige Jade Pavillion, Mahaveer Amaze, Bren Paddington, Saroj Symphony, Concorde Epitome, Purvankara Purva Sunflower, Concorde Tech Turf, Mahaveer Oleander, Atlantis Liberty Square, Salarpuria Clarinet, Arge Helios, Zonasha Vista, Pranjape Wind Fields, Samruddhi North Square, Concorde Wind Rush, Shriram Chirping Woods, Radiant Elitaire, Salarpuria Aspire, Living Walls Another Sky, Pushpam Woods, JR Nexus, Eternity Ecstasy, Sarvana Esplanade, Vineyard Chrystolite, Nakshatra Celestia, Surya Shakti 80 Trees, Sipani Classic, Radiant Silver Oak, Chaitanya Sharan.

Data Source: In-house data collection, and National Housing Bank for price trends

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7 Ways That Help to Save for a Home in 2014

How can I buy an apartment this year? How much should I save or plan to help myself achieve the goal? These were the questions from my friend, who got me to remember the steps, the research, and the planning before buying an apartment.

Stage – 1

For a buyer, the most critical factor is the investment. First, you must plan to save the money for the down payment. Saving should start early in the process, so that it makes it easier for you to pay as large an amount as possible.

The other advantage of paying a bigger amount upfront is a smaller future burden. Making a size-able upfront payment reduces the tenure and the equated monthly installment (EMI) amount.

Once you decide to buy an apartment, start with a good saving habit. Keep the goal of owning your apartment and start saving every buck. To realize the   goal of saving, here are some tips…

1. Tighten your control on expenses
• Eating out, frequent movies and random shopping pushes up your monthly bills and inevitably eat into your savings. 
• Ask these questions:
• Do I need to subscribe to all these channels?
• Can I reduce eating out? Instead, can I make food and drinks at home?
• Do I need to use that expensive club subscription?
• Do I really need that outfit/smart phone/book?
• Try to exercise restraint and that will slowly reflect in your monthly statements.
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2. Whittle down your credit card purchases
• We all know the notorious interest rates charged by credit card companies, but most of us go weak in our knees when we see that lovely ring or a deal on Groupon! 
• Simply put, being over-dependent on credit cards will hurt your finances.
• Here’s a way to reduce credit card dues. Try to pay more than the minimum amount towards your credit card account. Consider using cash or even deferring certain purchases to a later date.
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3. Set timelines for payments
• Payment delays result in fines, service severance and last-minute hassles. Instead of finding yourself in that mess, create a schedule (time and date) to pay your bills. Following a regular routine makes it easier to meet all your financial commitments in time. A better way is to setup automatic online payments and that also works wonders for utility bills. 
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4. Invest wisely
• Investing in a bank through a savings account is secure, but there’s very little growth. Instead of putting all your bucks into savings, you can distribute your money into other investment avenues like stocks, gold, term deposits, mutual funds, etc. The idea is to make your money generate higher returns and possibly save more.
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5. Check deals and get the best buy
• When you’re planning to buy anything, check for the best deals before you sign your cheque. Compare various offers, and finalize on the most value-offering deal. 
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6. Stay within budget
• Maintain more control over money by keeping track of funds and expenses. Cut costs to keep your expenses within budget.
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7. Finally, do thorough homework
• Don’t just depend on what you hear from brokers or the hearsay on prices. Take an all-external advice and add your findings to it. While calculating the final price, add additional elements like stamp duty, legal fees, inspection fees, etc. 

This is a blog post by Bharath Joshi a Marketing Executive for apartments in hebbal

Was 2013 really bad for real estate sector in India? Yes, there is data to prove that!

Author: Sachin Gupta | Find me on Twitter Follow @sach_gupta

There were indicators, there were informal chat with property brokers, there were unsold supply of housing inventory lying with the developers, and now there is concrete data to prove that “YES” real estate prices across the country didn't produce yields which one has associated with property sector in India.

Compared with housing prices appreciation in Jan-Dec 2012, the price appreciation remained substantially low in Jan-Dec 2013 period. In fact, certain cities such as Kochi, Jaipur, Bhopal, Kolkata, Delhi, Ludhiana, Vijaywada, Indore, Chandigarh, Coimbatore, and Meerut registered housing price depreciation over the year 2013. Housing prices in Mumbai remained stagnant with no appreciation or depreciation in 2013. Cities such as Chennai, Pune, Surat, and Nagpur registered price appreciation in excess of 6% in 2013.

However, within cities, there were micro markets which fared better when compared with the overall price appreciation in the city.

Micro market price appreciation in 2013 in major cities across India:

Delhi with NCR: Housing Prices in Micro markets such as Yamuna Vihar, Inderpuri & Rohini, Vasant Kunj, Punjabi Bagh & Shalimar Extension depreciated sharply in 2013. Whereas prices in Govind Puri, Raghubir Nagar, Tri Nagar, Dilshad Garden, Karampura, Nirankari Colony, Pandav Nagar, Dakshinpuri, Hari Nagar, Jahangir Puri, Jhilmil Colony, Sangam Vihar, Mangol Puri, Ghazipur Dairy, Khyala(I-III), Sriniwas Puri, Sultan Puri appreciated handsomely.

Bangalore: Housing prices in most micro markets of Bangalore remained stagnant for the year 2013 with marginal appreciation in Jaya Nagar, Rajaji Nagar, Koramangala, Air Port Road, Basveshwar Nagar, Malleshwaram, J P Nagar, Banashankari, R.T Nagar, and Vijay Nagar.

Chennai: Housing prices in Chennai’s micro markets such as Tondiarpet; Narayanappa Garden, Perambur; Choolai; Edapalayam, Virugambakkam; Anna Nagar; Kilpauk; Nungambakkam, Mylapore; Adyar; Velachery; Thriuvanmiyur appreciated in 2013. Whereas micro markets such as Ayanavaram; Purasawalkam; Kolathur, Ashok Nagar; Thyagaraya Nagar; Saligramam, Kodambakkam; Guindy; Chromepet witnessed a downward trend in 2013.

Mumbai: Kurla East, Tungwa/ Chadivali, Chembur, Malad, Borivali/ Kandivali, Dahisar, Goregaon, Bhandup, Mulund, and Mira Road are some of the micro markets of Mumbai where housing prices actually appreciated in 2013. However, prices in Cuffe Parade, Malabar Hill, Bandra West, Andheri East, Oshivara, Vashi, Khar Garh Road, Pokaran Road 1 & 2, Virar, Nala Sopara, Badlapur fell in 2013.

Hyderabad: Housing prices in Kanchanbagh, Begumbazaar, Rajendra Nagar, Qutubullapur, Alwal, Malkajgiri, Begumpet, Marredpally, Tarnaka, Mehdipatnam, Abids, Kachiguda, Narayanguda, Himayathnagar, Tolichowki, Khairatabad(West), Panjagutta, Ameerpet, Srinagar Colony, Somajiguda, Jubilee Hills increased slightly in 2013. While micro markets such as Shamshabad, Kapra, Uppal Kalan, L.B.Nagar witnessed significant price fall.

Pune: Micro markets such as Kharadi, Parvati; Bibvewadi; Dhankawadi; Katraj; Hadapsari; Ghorpadi; Kondwa Khudra; Wanowarie; Undari; Kodwa, Hinjewadi; Thergaon; Chinchwad; Baner; Yerwada; Wakad; Pimple Saudagar; Chakan saw price appreciation in 2013. Whereas Erandawana; Aundh; Pashar; Kothrud; Bopadi; Vadgoaon Bhudruk witnessed price fall in 2013.

Kolkata: Bhawanipur, Jadavpur, Rajpur Sonarpur witnessed significant housing prices appreciation in 2013. While Jodhpur Park, Dhakuria, Santoshpur, EM Byepass, Behala, Madhyam Gram, Rajarhat witnessed price fall in 2013.

Appendix:

Housing Price trends across Indian cities till December 2013.

Data Source:
National Housing Bank

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Grab a slice of the property pie at Gachibowli

In 2013, Hyderabad witnessed fall of housing sales by 4% to 16500 housing units and the overall residential market remained stagnant during the entire last year. With absorption rate slowing down and sales volume dropping, property developers had no choice but to postpone the new launches and it is no surprise that new launches in 2013 dropped by 15% compared to year 2012.

However, with the government finally passing the Telangana bill, real estate developers and trade bodies across the two states have heaved a sigh of relief. Hyderabad is under the scanner again, as the prolonged phase of uncertainty is finally ending. Many experts believe that the Telangana bill will greatly benefit Hyderabad real estate where prices of residential units have been stagnant since 2009.

Gachibowli- a major IT suburb in Hyderabad is one such locality that is expected to benefit from the real estate resurgence. According to a real estate survey done in 2013, Gachibowli has been listed as the next popular IT/ITES destination of the city after HITEC City in Hyderabad. This IT node has grown into a software hub for companies operating from Hyderabad. It is home to some of the top IT companies like Microsoft, Amazon, Accenture, TCS, WIPRO, Capgemini, Polaris and DLF Cyber City.

With such a high concentration of software companies and being close to HITEC city, majority of the population is composed of cosmopolitan IT professionals, many of who have migrated from other parts of the country. Due to the employment generation potential of this locality, many working professional prefer staying in and around Gachibowli where they can also enjoy the benefits of the walk-to-work concept.

Additionally infrastructure projects like Hyderabad Metro and Outer Ring Road that connect Gachibowli to the international airport have contributed to the demand for residential apartments in Gachibowli and apartments in Hyderabad.

Gachibowli also offers top educational institutions for residents such as Oakridge International School, Kendriya Vidyalaya, Delhi Public School, Indian School of Business (ISB), International Institute of Information Technology (IIIT) and the soon to be opened Indus International Junior school. With projects like the Lanko Mega Mall planned in the future, Gachibowli will also grow into a recreational hub boosting the social infrastructure in the locality.

Several builders in Hyderabad are offering 2BHK, 3BHK and 4 BHK apartments and villas in Gachibowli, most of them are ready for possession. Popular residential projects in Gachibowli include Aparna Sarovar Grande by Aparna Constructions, The Botanika which overlooks the picturesque Botanical Gardens by Universal Realtor, Mayfair villas spread across 27 acres of land by Pranit Projects etc. According to a recent reports, prices of homes range from Rs.3,700 to Rs.6,000 per sq. ft. while commercial properties are available from Rs.6,000 to Rs.14,000 per sq. ft. Property prices are likely to go up by about 20 per cent over the next few months.

With political stability in place, growing economic opportunities and rising property prices, it is the right time to grab a share of the property pie in the upcoming locality of Gachibowli.

Will falling Rupee lead to investment in real estate sector in India by Non Resident Indians? How can property developers tap this?

Author: Sachin Gupta | Find me on Twitter Follow @sach_gupta

Data Source: Reserve Bank of India, Ministry of overseas affairs

The Indian Rupee has fallen substantially against US dollar, and other international currencies. The value of one US dollar was Rupees 53.289 in Jan-2013, whereas in Jan-2014 it stood at 62.4768. It’s a fall of whooping 17.24% in one year, reaching a low of Rs. 69 odd.

During the course of this one year, at one point of time in August 2013, the rupee stood at 66.5742 against 1 US $. If not for the measures taken by RBI and finance ministry, the free fall of rupee would have continued. Exporters were happy but importers were crying and this had an adverse impact on current account deficit because of India being a net importer country.

Here is the sharp fall of rupee against US dollar in last 6 years.

Now, the question to be asked is if the fall of rupee results in increase in NRI remittances to India? And the answer is resounding ‘YES’. According to World Bank report, in 2013 international migrants (NRIs) will remit $71 billion of their earnings back to India, highest among all developing countries. "With the weakening of the Indian rupee, a surge in remittances is expected as nonresident Indians take advantage of the cheaper goods, services and assets back home.

Here is a look at what NRIs are remitting back to India on a yearly basis:

Now, the second question to be asked is, where is all this money going to? Is an NRI buying Property in India, or investing in NRE/NRO accounts, or investing in capital markets, or bond market, or in entrepreneurial activities? Although, there is little segmented data with regards to the share of each asset class, a quick look at the RBI database highlights that NRE/NRO accounts are the preferred choice by Non Resident Indians.

As per the RBI definition, Non-Resident Ordinary Rupee Account (NRO Account) may be opened / maintained in the form of current, savings, recurring or fixed deposit accounts. NRI/PIO may remit from the balances held in NRO account an amount not exceeding USD one million per financial year, subject to payment of applicable taxes. The limit of USD 1 million per financial year includes sale proceeds of immovable properties held by NRIs/PIOs. NRO (current/savings) account can also be opened by a foreign national of non-Indian origin visiting India, with funds remitted from outside India through banking channel or by sale of foreign exchange brought by him to India. Whereas Non-Resident (External) Rupee Account (NRE Account) may be in the form of savings, current, recurring or fixed deposit accounts. Such accounts can be opened only by the non-resident himself and not through the holder of the power of attorney. Accrued interest income and balances held in NRE accounts are exempt from Income tax and Wealth tax, respectively.

Whereas as per RBI definition; Foreign Currency Non Resident (Bank) Account – FCNR (B) Accounts are only in the form of term deposits of 1 to 5 years. All debits / credits permissible in respect of NRE accounts, including credit of sale proceeds of FDI investments, are permissible in FCNR (B) accounts also. Account can be in any freely convertible currency. Loans up to Rs.100 lakh can be extended against security of funds held in FCNR (B) deposit either to the depositors or third parties. The interest rates are stipulated by the Department of Banking Operations and Development, Reserve Bank of India. When an account holder becomes a person resident in India, deposits may be allowed to continue till maturity at the contracted rate of interest, if so desired by him.

There could be various reasons for preference of NRE/NRO accounts by NRIs ranging from volatility in stock markets, risks involved with entrepreneurial activities, low yield on bond market, relative safe nature of NRE/NRO accounts, and poor execution by real estate developers of their projects.

Why is real estate market in India not being able to attract NRI money to ease the current liquidity pressure? Our team debated on this issue and came out with 4Cs.

Cost - No Escalations – costs escalations during the course of the project construction has been a key detriment for NRIs wherein it has been noted that real estate developers escalate the cost of the project arbitrarily on account on various parameters such as rising labor cost, regulatory cost, and raw material cost. Why do we still observe a builder asking for additional funds from buyers for parking slots, development charges, and so on when those were not included in the builder buyer agreement at the time of selling of the project inventory? Why can’t there be transparency as far as project pricing is concerned? There needs to be more transparency in builder-buyer agreements.

Commitment to timeline – It is a common practice that developers sell their projects by claiming that they will deliver the housing units in 36 months at the time of agreement between them and the buyer. And yet, we have noticed umpteen numbers of cases where projects have been delayed by not just by 1 year but by more than 2-3 years. And in some cases, project delays have stretched to 4 years. Why can’t developers stick to their promise which they had made at the time of agreement? Or else, simply state the time it will take to develop the project (say 5 years). This matter needs to be addressed directly in contractual terms or through legislation.

Construction quality – With NRIs living in different parts of the world, it becomes difficult for them to verify the construction quality of the project? What are the construction materials being used? Will the specifications and amenities be as per the builder buyer agreement? To overcome this, a 3rd party periodic construction quality check can be brought in.

Carpet area to sale-able area ratios – maintain a transparent mechanism to calculate carpet area and sale-able area. This is a regulatory function, that authorities need to address. 

Along with the 4 'C', An NRI also worries about who will manage or take care of his/her Property? Sumit Bhargava bought a 3 BHK in Gurgaon, but he had to relocate permanently to UK for his work. Since, there were no Professional Property Management Company in Gurgaon, Sumit eventually sold his apartment at lower rates.

It is widely believed that if real estate developers can focus on these 4Cs, then there is absolute certainty that NRI money will flow in property sector in India at a scale unprecedented in real estate history of India and eventually it can ease the pressure of liquidity on real estate developers, and for that matter speculators, investors, banks, and other financial institutions that finance this huge economic activity.

Are the developers listening??? Real estate developers can reach our team of professionals for advisory at nirrtigo@nirrtigo.com

Data Source: Reserve Bank of India, Ministry of overseas affairs

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Appendix – I
As per the May 2012 estimates by Ministry of Overseas Indian Affairs, the population of Indians living abroad is 21.91 million. However, more than 50% of them live in high income countries and have been the major contributor to NRI money flowing in India. We present below the overall break-up of population of Indians living in high income countries:

• United States of America (USA) – 2.25 million
• United Kingdom (UK) – 1.5 million
• United Arab Emirates (UAE) – 1.75 million
• Singapore – 0.67 million
• Saudi Arabia – 1.79 million
• Malaysia – 2.05 million
• Canada – 1 million
• Australia – 0.45 million
• And in other countries across the globe – 10.45 million

Total Population of Indians living abroad– 21.91 million

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