It has been a great year so far for the residential as well as the commercial real estate segment in Chennai as compared to the metros in the North where speculation has caused significant corrections in prices .
The growth in Chennai has been primarily fuelled by a healthy demand and supply equation and opening up of new integrated townships on the outskirts.Increase in job availability as well as job security is a prime factor in making Chennai a preferred destination in the South.
The preference for Chennai as a real estate destination has several interesting factors behind it.
Firstly Chennai has stayed clear of speculation and has seen minimal corrections in recent past which encourages the investors to put in their money on real estate in Chennai.
There has been a slow but significant movement of IT/ITES industry into the city which has scaled the demand upwards. The job opportunities in the city have risen tremendously, though subtly.
The prices of properties have been kept within affordable limits by the developers who are happy to trade in volumes. Chennai has an annual capacity of absorbing 28,000-30,000 residential units a year. This is likely to increase by 10-15 per cent in the next 2 years due to the influx of IT-based industries.
The projects on offer provide a host of new facilities and amenities. This has generated considerable interest among prospective buyers. These include generous landscaping, schools within the campus, serene environment, health club facilities for both indoor and outdoor sports, big club houses, multiplexes in vicinity, restaurants health care, and swimming pools, etc.
The customer in Chennai is clear about the requirements from the real estate developer and thus there are specific sub-segments that are in greater demand as compared to the others. However it is not just the property that creates the demand. There are several other factors which include open spaces, minimal plot cover, living and community related facilities, access to commercial centres and proximity to educational institutions.
A 3BHK flat at an affordable rate of between Rs 35- 45 lakh is the hottest property in Chennai currently. Earlier the standard size of the 3BHK was 1,200-1,300 sq. ft which has now increased to 1,400-1,500 sq. ft after recession. The preferred 2 BHK sizes have also gone up from 850-950 square feet to about 1,100-1,200 sq. ft. Even quite a few 1 BHK or studio apartments have been booked and sold quickly in the last one year indicating a growth in demand of such units too.
There are several upcoming localities that have witnessed a surge in demand for residential units all throughout Chennai and its outskirts. The most preferred location in Chennai this year has been the Madhya Kailash – Sholinganallur stretch and the Velachery area. Madhya Kailash – Sholinganallur: Due to the large number of IT companies that have moved in this locality creating thousands of new jobs there has been a rapid increase in the demand for decent housing in the area. However there is an acute shortage of residential units which has further fuelled the prices of dwelling units. All projects that have been completed in this year have been fully occupied which indicates a healthy trend of growing demand. Velachery: There has been consistent development of this locality with a number of self sustaining facilities coming up. The arrival of infrastructure for holistic living in good environs encourages most buyers to prefer this locality. In fact growth of Velachery has had positive fallout on adjoining areas such as Medavakkam, Pallavaram, Pallikarnai, the 200 FT. MMRD Road, Thoraipakkam and even Rajakilpakkam. The Outlook for Chennai
The healthy absorption of residential as well as commercial units with a steady rate of appreciation heralds a positive outlook for the city as a whole. The rates have increased within a range of eight to 20 per cent across the city in the past two years varying as per locality and other conditions. This is a healthy trend as it facilitates continuous growth without speculative sudden spikes in rates of properties.
The overall scenario of real estate in Chennai is quite positive with predictions for a steady growth in the years to come. Due to the conservative nature of investors in this southern metro it has so far been clear of real estate bubble bursts that wrecked across the major cities of the north and the west a few years back. It is a safe and stable place to buy real estate both for the purpose of self occupancy or as an investment only. (The author is CEO, BankBazaar.com)
Source:Business Line : News / Real Estate : Chennai blinking big on national realty radar
Centre gives in, allows states to set up real estate bodies
Moushumi Das Gupta , Hindustan Times
New Delhi, October 11, 2012
Buckling under pressure from states, the Centre has decided to allow them to set up their own grievance redressal mechanism to protect property buyers' interests from unscrupulous realtors. In a U-turn, the Housing and Urban Poverty Alleviation ministry, which has finalized the draft of
Real Estate Regulatory Authority Bill, has dropped the original provision to set up a central real estate appellate tribunal.
Apprehending that the bill might face opposition over this clause, the ministry has decided to allow states to set up their own appellate authority.
The ministry had earlier received several representations from states demanding to set up their own grievance redressal mechanism.
The tribunal's role will be to adjudicate any dispute between a developer and an allottee as also between the developer and the real estate regulatory authority. “We have agreed to the states' demand to set up their own appellate tribunal,” said a ministry official.
The draft bill is likely to come up for cabinet approval soon. The original bill has gone through several changes over the past year to make it palatable to states, including Uttar Pradesh, West Bengal, Tamil Nadu and Chhattisgarh, which had opposed it on the ground that it infringes on the federal structure.
The bill proposes setting up of a real estate regulatory authority at every state.
All such builders — developing a project where the land exceeds 1000 square metre — will have to register themselves with the body before launching or even advertising their project.
Failure to do so will invite up to a maximum three years imprisonment or fine of up to 10% of the total project cost.
The developer will also have to submit project details including approved layout plan, timeline, cost and the sale agreement that prospective buyers will have to sign to the proposed regulator.
Only developers who fulfil this disclosure clause would be permitted to advertise their project to prospective buyers.
Source:Centre gives in, allows states to set up real estate bodies - Hindustan Times
रजिस्ट्री नहीं, डीड ऑफ अपार्टमेंट करें
Ghaziabad | Last updated on: October 13, 2012 12:00 PM IST
यूपी अपार्टमेंट एक्ट ने दिया ग्राहकों को अधिकार
गाजियाबाद। फ्लैट खरीदते समय सेल डीड (रजिस्ट्री) की बजाय डीड ऑफ अपार्टमेंट करवाना फायदे का सौदा साबित होगा। यूपी अपार्टमेंट एक्ट ने फ्लैट खरीददारों के लिए नई व्यवस्था लागू की है। इसके अंतर्गत बिल्डर और आवंटी के बीच बिक्री और इसके बाद के सभी अधिकार व दायित्वों का स्पष्ट लेखाजोखा होगा। डीड ऑफ अपार्टमेंट एक निर्धारित फार्मेट में होगी, जिससे बिल्डर छुपी शर्तें व शुल्क नहीं जोड़ पाएंगे।
आरडब्ल्यूए फेडरेशन के वाइस चेयरमैन आलोक कुमार ने बताया कि अभी तक सभी बिल्डर अपने-अपने मुताबिक एग्रीमेंट का दस्तावेज तैयार करवाते हैं। अधिकतर मामलों में यह दस्तावेज बिल्डरों के पक्ष में होता है। कई मामलों में विवाद की स्थिति में पता चला है कि सेल डीड में छुपे शब्दों में बिल्डरों ने शुल्क और शर्तें जोड़ ली हैं। लोगों को एक फ्लैट पर 1.25 लाख रुपये से लेकर दो लाख रुपये तक अधिक शुल्क देना पड़ जाता है। रजिस्ट्री की स्थिति आने तक चूंकि ग्राहक बिल्डर को 90 फीसदी तक का भुगतान कर चुके होते हैं, इसलिए वह इन शुल्कों और शर्तों का विरोध नहीं कर पाते।
सुप्रीम कोर्ट के एडवोकेट सुदीप्तो कुमार पॉल के मुताबिक डीड ऑफ अपार्टमेंट में सभी बातें क्लीयर होंगी। इसके फार्मेट में सभी शर्तें व शुल्क स्पष्ट होंगे। इसमें इस बात का स्पष्ट रूप से उल्लेख है कि छत और कॉमन एरिया के मालिक फ्लैट खरीददार हैं, ना कि बिल्डर। डीड ऑफ अपार्टमेंट से फ्लैट खरीददारों के साथ धोखा होने की संभावना कम हो जाती है।
NOIDA: The Yamuna Expressway Authority has ordered developers in the region to upload the status report of housing projects on their official website. The decision was taken by the additional CEO after a TOI report highlighted how flats were being booked by builders despite layout plans of their projects having not been passed by the Authority.
Homebuyers had recently protested in the matter and demanded that transparency be maintained by the Authority and developers about the upcoming projects for the safety of their investments.
Yamuna Expressway Authority additional CEO, HK Verma, admitted that homebuyers were confused about the status of housing projects falling in the region. "We took up the issue after finding the concern of homebuyers genuine," Verma said. The layout plan and other related documents will now be uploaded on the Authority's website.
The idea of uploading status of projects is expected to reduce the burden on Authority officials. "With properties along the expressway increasing in demand, homebuyers have been queuing at the Authority offices to know the status of projects, and this has been wasting the time of officials," Verma added.
So far, homebuyers have to rely on developers for information about the project. Whenever they go to the Authority office, most of the times they have to return without information. "I went to the Authority office four times to check the status of a proposed housing project where I was planning to invest. Officials made excuses thrice and the fourth time told me that it was not their responsibility to tell me the status of housing projects. Finally, I dropped the idea of investing there," said Amit Singh, a resident of Delhi.
"This decision will definitely help homebuyers and give then a sense of security. The developers' fraternity should also take steps at their level to reduce the stress of buyers for finding their dream homes and right investments," said RK Arora, CMD Supertech and senior office bearer of CREDAI.
real scene: sale gimmicks Read the fine print S.C. Dhall
Last month when the Union Finance Minister urged banks to pressurise builders to reduce prices of their projects, the developer lobby had retaliated with a demand for special incentives from the government to boost sales. They had cited the growing cost of land and construction material and high rate of interest on arranging finance for projects as the reasons for the high prices of residential units.
While this argument over the price factor continues, it is interesting to note that the same builders who are not ready to budge an inch on the pricing front are more than happy to offer “discount offers” and freebies to the buyers. However, the catch here is that the cost of the free stuff is already factored in the total cost. Always remember that nothing comes for free and these are nothing more than sale-enhancing strategies. Here are a few gimmicks that are used to lure buyers to finalise deals: No free lunch
Builders are willing to promise anything to get clients to sign on the dotted line — from no registration fee and installed modular kitchens to a free luxury car. Some smart developers will rescind the freebie and agree to give you a discount on the base rate. However, one should check for hidden charges.
The latest to catch the buyers’ attention is the scheme wherein one pays only 10 per cent of the cost at the time of booking and the balance on possession.
The truth is that such schemes are being offered by developers who need cash urgently for the projects that are under construction. As such projects don’t have a stable finance source or plan; there is a risk that these will never be completed.
Some developers assure home buyers that if they make a down payment immediately, then they will get a good interest rate from a bank with which they have a tie up. For buyers in such a situation it will be better to look around and check for deals from various banks on their own.
Another favourite gimmick is the construction-linked payment plan, where a builder will ask the buyer to pay according to the stages of construction and not pay anything if the construction doesn’t progress according to the promised pace.
The fact is that irrespective of the pace at which the construction work progresses, the builder will ensure that the buyer pays on time.
Also remember a construction-linked plan is not an insurance against delayed projects. Riding on brand names
The more common way to make a project location more attractive is by highlighting the time required to reach the city’s hotspots from the said project. Builders are firm believers in the power of branding which is why they leverage the popularity of a nearby locality. So they will name their location extension or phase 2 or 3 of an already established project.
It will be wise for buyers to visit the project site before considering any such project. The new area is probably located so far in the suburbs that it borders another city rather the one it is named after.
Also don’t fall for any proposed infrastructure project that will be coming up in the locality. Such proposals may not even be in the planning stage let alone having got all approvals. Scarcity scare
Another sale gimmick is to create an impression of scarcity.
This is when a prospective buyer says that he would need some time to make up his mind. The builder just rattles off the list of buyers queuing up to buy the same property. Some will even insist that it is the last available apartment or how quickly the first phase of the project had sold out, while others will warn you that the prices will be increased from the next month. In over 80 per cent cases it is lie. The best strategy here is to stand your ground as this will, in all probability, get you a good deal.
These are just some of the most common lures that home buyers come across.
Smart builders and those most desperate to sell will be more innovative. Some will offer guaranteed returns to investors. It is only after one makes the down payment that he is told about the fine print that you will get the return only if you share the property with two others or the advertised returns are only for investment above a certain amount. The builder knows that after putting in the money, a buyer has little choice as he would either stay put or invest more for better returns.
The bottomline is: Do not look at freebies as an incentive, and try to get a cash discount on the property instead. Not the ones to be ‘banked’ upon
And if you think that it is only the builders who can pull wool over buyers’ eyes, then think again. Banks are no less aggressive when it comes to “making” new clients. Banks send mails promising the lowest interest rate, minimum processing fee, and fast loan approval. Most of the buyers neither have the time nor the patience to go through the terms and conditions, which are usually cushioned in legales that can make one's head spin.
Some banks have also brought back the ‘infamous’ teaser rates —dual-rate loan where the interest rate is fixed at low figure for the first two or three years and then gets converted to a high fluctuating rate. Some of these schemes are toxic.
Home loan takers should know that the Interest rate of a home loan has two components — the base, which is the rate below which a bank cannot lend, and the spread, which is the margin based on customer and product specific factors. The spread is often fixed arbitrarily by banks, so between two banks that offer you the same effective rate, choose the lender that offers you a lower spread above the base rate.
Further there are chances where interest rates of two banks are the same but the sanctioned loan amount may vary. One should find whether the bank is willing to give a lower amount than the one you have asked for. In that case one may have to take a personal loan to cover the shortfall. The high interest rate of a personal loan could be a dampener.
As the sanctioned amount depends on your total income, the banks may ask for additional collateral, too.
Some banks are also coming out with special rates as this increases their customer base. However, one gets a special treatment only till one signs the papers. Any new rate will be applicable to the home loan taker, even if one had taken the loan just a month ago.
Most borrowers, who had opted for teaser rates of 8 or 8.25 per cent in 2009, have suddenly found their interest rate jumping to 12 per cent, while new borrowers are being wooed with lower rates.
In case you are paying an interest rate higher than 10.5 per cent, consider switching the bank. If your credit score is good and the property is ready, the new bank will be willing to lower the processing fee. One can also negotiate with one’s own bank and pay a small conversion fee for a lower interest rate.
LUCKNOW: Officials in the Uttar Pradesh State Tourism Development Corporation have come across a number of private operators, agencies and institutions have rented out tents that belong to the UPSTDC for the 2013 Mahakumbh. The transactions have been made through certain unauthorised websites which have been identified by the Kumbh Mela office in Allahabad.
It may be noted that tourism corporation raises some 45 luxury cottages inside the Kumbh Mela site, which are like a hotel room on the banks of the river. It is also building 345 Swiss cottages (suite comprising drawing and bed room and properly constructed and tiled toilets) along the road to Sangam.
Director general tourism, Manoj Singh said, "We have sounded an alert, while the mela officer has asked the inspector general Allahabad zone to examine the matter and register a case against the people or organisations behind these websites." Mela officer, Mani Mishra said that the way in which these websites have packaged their deals could lure anyone. For instance, one the website promises to provide a luxurious stay inside the Swiss cottages. "But the fact is that they have no right to rent cottages inside or along the mela premises. What they are doing amounts to forgery prima facie," Mishra said.
In a letter to police officials in Allahabad, the mela officials informed that the mela administration has been providing free accommodation to pilgrims inside the mela kshetra (mela premises) during the mela period. The tradition has been continued even this year.
For tourists, land is allocated to the UP tourism development corporation, which builds cottages and provides them at reasonable rates to the visitors. Bookings of these cottages are solely in the hands of the state tourism department. The district administration has no plans to allocate any other chunk of land for building cottages to any other people or government or non government organisation.
Therefore, it is clear that these websites, which claim to provide cottages to tourists, are misguiding people planning to pay a visit to the Sangam city during Kumbh Mela. The luring package deals and offers let out by people, organisations' and institutions behind these websites amounts to cheating with the tourists.
Therefore, the tourism department has written to IG Police (Allahabad Zone) and SSP, Allahabad to register a case against these website owners under relevant sections of cyber crime act and Indian Penal Code.
Director, tourism development institute, UP, Prof Manoj Dixit suggested that it is the responsibility of the tourist to verify details claimed in the tour package. "They should always book packages from reliable agencies and operators. Sometimes the offers appear to be quite luring. But do not let the fancy deal steal your common sense," he said recommending verifying of all details from the UP tourism department's helpline number.
NOIDA: It has been two months since the NCR planning board approved the Greater Noida master plan, clearing the decks for resumption of work at 1 lakh housing units. However, there is no end in sight to the troubles of homebuyers. Those who had booked flats in Greater Noida (west) before the land acquisition row erupted, gathered at a real estate developer's office here on Saturday to protest against the demand and cancellation letters being sent to them on "flimsy grounds".
The buyers, who have given all developers time till October 19, threaten to intensify their protests if their problems are not addressed. They claim several developers have hiked the rates for existing buyers and even issued cancellation letters. "After the master plan was approved, developers have started making unethical demands. They are fudging numbers and offering us refund," said a buyer. tnn
Court orders stay on golf course work in Ghaziabad
GHAZIABAD: Ghaziabad Development Authority (GDA) has been ordered by the Allahabad high court to maintain status quo in relation to plans for converting a 'city forest' area into a golf course. GDA has been told to halt work in forest areas marked as 'Sai Upvan' and 'Kanha Upvan' in its Master Plan 2021 after a petition was filed by residents of an upscale society in Indirapuram.
GDA has already floated an "expression of interest" and invited companies for consultation services and management of a nine-hole golf course on 32.5 hectares in the forest area known as Sai Upvan.
The PIL, filed in the last week of September, has asked for 'restoration' of the forest,in addition to a time-bound action plan for development of the city's infrastructure.
"Thousands of trees in Sai Upvan died a slow death over a period of two years because of sewage overflowing and entering the forest area," said Alok Kumar, the petitioner, who lives in Indirapuram. "Instead of upgrading its sewerage system and restoring green cover, the authorities, in violation of the master plan, have decided to build a golf course," he added.
The decision for the golf course had been taken by GDA and the Ghaziabad Municipal Corporation in a meeting in June.. According to the terms of reference, all proceeds from profits likely to be generated after completion of developmental work in the area are to be shared by the corporation and GDA in a 60:40 ratio. However, residents complain that reduction in forest cover at a time of population growth would be detrimental to the city's environment.
"The green lungs of the city need to be protected. Since there is a huge increase in population in Ghaziabad over the last few years, there is a greater need for increasing notified forest areas," said Kumar.
It has also been alleged in the petition that earlier the GDA and the municipal corporation had embarked upon a group housing scheme in the Sai Upvan area but it failed to take off due to paucity of funds. "The development authority should respect the sanctity of the master plan to avoid haphazard growth as ulitmately the residents would suffer," added Kumar.
Hi everybody! Who would you guys rank as your top 15builders in india. I am sure it would be value Info for all us members, specially if for those intending to invest in a home or any category of real estate this festive season.
I assume you would base your ranking on past track record, delivery, quality, terms and conditions, relations, after sale service, reputation, and design. Looking forward to some valuable insight.
Removed from Greater Noida, property kiosks abound in Noida
GREATER NOIDA: Property kiosks which were earlier removed from here on a direction by the Greater Noida Authority, have now sprung up in Noida area.
Greater Noida Industrial Development Authority (GNIDA) Chief Executive Officer Rama Raman had directed last month to demolish the roadside kiosks after tension prevailed between property builders and farmers over the issue.
Now, the kiosks have come up in Noida area from Sector 71 till the Hindon bridge.
"We have shifted to Noida as GNIDA was not allowing us to set up kiosk in Greater Noida West," an agent at one of these said.
In anticipation of greater activity of private builders after the approval of the master plan on National Capital Region Planning Board (NCRPB), there was a spurt in illegal roadside property agents kiosks in and around Noida Extension area roundabout.