Month: June 2012

Godrej Properties to launch fifth phase of Godrej Garden City township at Ahmedabad

20 Jun 2012, PTI.

AHMEDABAD: Godrej Properties Ltd (GPL), the real estate arm of Godrej group, is going to launch the fifth phase of Godrej Garden City (GGC) township project here soon, a top company official said today.

“The phase five of this township project shall have 1.8 million sq ft of land…around 1,200 to 1,500 units. Currently its sub-phases are being worked out,” Godrej Properties CEO Pirojsha Godrej told reporters here.

“So far four million square feet (3,300 units) in the township has been launched, of which 90 per cent (2,900 units) has been sold. The total size of the project is 24 million square feet which proposes to have 13,000 units,” he said.

The company plans to give possession of first phase bookings for 888 units in the GGC ahead of the scheduled delivery time in September this year.

The property prices at GCC have escalated from Rs 2,200 per sq ft at launch around two years ago to nearly Rs 3,000 per sq ft. The company had launched 888 units in first phase.

GCC is one of the two projects in India and amongst 17 worldwide to be chosen as a partner by the Clinton Climate Initiative with the goal of achieving a climate-positive development.

Ozone announces luxurious project ‘The Gardenia’

16 Jun 2012, PTI.
CHENNAI: Infrastructure developer Ozonegroup announced its luxurious project ” The Gardenia” coming up at Anna Nagar in city. The multi-storey luxurious apartment, houses 32 exclusive four bedroom of size 3,640 square foot. Each apartment is fitted with modular kitchen, furniture and vertical gardens, Chennai-headquartered Ozonegroup said in a statement.

Some of the recreational facilities located inside the apartment include gym, spa, swimming pool, jacuzzi and sauna and steam rooms.

Besides, it also offers a tripe basement car parking, multi-level security system and a centralised air-conditioning system to each apartment, it said.

The Ozonegroup is currently engaged in various projects including its affordable housing project “Evergreens”, “Ozone Urbana” in Bangalore, Metrozone in Chennai and island development near Goa,it added.

Property deals in Delhi’s unauthorised colonies after regularisation

5 Jun 2012, PTI.

NEW DELHI: The Delhi government today said restrictions on sale and purchase of properties in over 1,200 unauthorised colonies will be lifted once the process to regularize them is completed.

“Sale and purchase of properties in those colonies will be allowed once the process to regularize them is completed,” Revenue Minister A K Walia told the Assembly while replying to a question.

Government is in the process to regularize over 1,200 colonies, which were given provisional regularization certificates. These colonies are home to around 40 lakh people.

Answering a separate question, he said restrictions were put on General Power of Attorney (GPA) as a mode of property transfer following an apex court order.

He, however, clarified that the Supreme Court had not banned GPA but ruled that property transaction through GPA will not be considered valid.

The Supreme Court had on October 12 last year ruled that sale transactions carried in the name of GPA will have no legal sanctity and immovable property can be sold or transferred only through registered deeds.

In a bid to ensure strict adherence to the Supreme Court order on property transactions, the Delhi government last month had said no sale deed will be registered if it is done through GPA.

Walia said property transaction done through GPA prior to the Supreme Court order will be valid and parties concerned can regularize such transactions by paying the required registration fees.

In such transactions, he said the value of the immovable property at the time of the transaction will be considered for registration but stamp duty will be applicable as per current rate.

“The stamp duty will have to be paid as per current rate. But we will consider the value of property when the transaction had taken place to calculate the registration fee,” Walia said.

India sees 3rd highest rise in housing prices in January-March quarter

5 Jun 2012, PTI.

NEW DELHI: India witnessed the third highest rise of 12 per cent globally in housing prices in January- March quarter of 2012 over the year-ago period, according to consultant Knight Frank.

Housing prices in India, however, declined by 0.9 per cent when compared with the previous quarter.

“Brazil recorded the strongest annual growth (23.5 per cent) and Ireland the weakest (minus 16.3 per cent),” it said.

The Knight Frank Global House Price Index monitors and compare the performance of 53 mainstream residential markets across the world.

Austria ranked fourth with 11 per cent rise in housing prices, followed by Germany (9.8 per cent), Colombia (9.6 per cent), Turkey (8.7 per cent), Russia (8.2 per cent), Iceland (7.3 per cent) and Canada (6.8 per cent).

In China, the prices have declined by 2.2 per cent. “The Chinese housing market has had a tough 12 months as developers and purchasers alike have had bank finance squeezed as a consequence of the ongoing cooling measures.

“Lending restrictions, new taxes, the curbing of multiple property purchases, and new regulations to restrict the inward flow of hot foreign money have had the desired effect,” Knight Frank’s Director of Research in Asia Pacific Nicholas Holt said.

The report further said that during the first quarter of 2012, the housing prices fell in 58 per cent of the countries monitored by the index.

Knight Frank’s report noted that the Global House Price Index recorded its weakest annual performance since the depths of the recession in 2009, recording only 0.9 per cent growth in the year to March 2012.

“Doubts over the Eurozone’s future, along with the Asian governments’ staunch efforts to cool their markets and deter speculative investment, have taken their toll,” it explained.

Realty firm Omaxe cuts gross debt by Rs 213 cr last fiscal

4 Jun 2012, PTI.

NEW DELHI: Realty firm Omaxe has reduced its gross debt by Rs 213 crore in the last fiscal to Rs 1,339.55 crore from internal accruals.

According to investors presentation, Omaxe’s gross debt has come down to Rs 1,339.55 crore as on March 31, 2012 from Rs 1,552.3 a year-ago.

The debt-equity ratio has been brought down to 0.76 in 2011-12 fiscal from 0.93 in the previous financial year.

The scheduled debt repayment for the current fiscal stands at Rs 530.39 crore, it added.

Omaxe sold 8.82 million sq ft worth Rs 1,526 crore in the last fiscal. In 2010-11 fiscal, it had sold 9.76 million sq ft for Rs 1,709 crore. The sales realisation has declined to Rs 1,729 per sq ft in 2011-12 from Rs 1,751 in the previous fiscal.

Last week, the company had reported more than two-fold jump in consolidated net profit for the quarter ended March 31, 2012 at Rs 23.73 crore as against Rs 11.67 crore in the year-ago period.

The income from operations grew by six per cent at Rs 603.58 crore in the fourth quarter of last fiscal compared to Rs 568.60 crore in the corresponding period of previous year.

In 2011-12 fiscal, the net profit fell marginally to Rs 90.38 crore as compared with Rs 92.71 crore in previous year. But, income from operations rose by 21 per cent at Rs 1,848.75 crore in FY’12 as compared to Rs 1,525.94 crore in 2010-11.

Omaxe has more than 4,500 acres of land bank across the country with a developable area of 106 million square feet. It is working on 42 projects, including 17 townships, 16 group housing, seven shopping malls & commercial complexes and 2 hotels.

That apart, the company is constructing 10 projects in infrastructure segment comprising of EPC contracts, roads and bridges having a book value of Rs 1,018 crore.

Realtors look to redevelopment as land supply dries up in city

3 Jun 2012, PTI.

MUMBAI: With limited availability of open land parcels in the city, major developers are now looking at venturing into the redevelopment space, say industry experts.

“Due to scarce availability of unoccupied land, growth in real estate, particularly in terms of fresh supply is largely dependent on redevelopment activities,” global property advisory DTZ India chief executive Anshul Jain told PTI.

“As a result, slum redevelopment schemes as well as redevelopment of old cessed-buildings are playing a key role in realty development in Mumbai,” he said.

Scarce availability has made land parcels expensive in the city, resulting in higher project cost, he said.

“However, in case of redevelopment and rehabilitation, land cost is much lower and provides better returns to both developers as well as investors,” Jain said.

There are over 20,000 housing societies, 17,000 cessed buildings and over 3,000 MHADA (Maharashtra Housing and Area Development Authority) structures, which are waiting for redevelopment proposals.

Maharashtra, which is planning to prepare a master plan for the development of megapolis, has recently through an amendment to Section 33(7) of the DC Regulations of 1991, proposed to raise the floor space index (FSI) to 3 from the current 2.5, for redevelopment of cessed buildings.

DB Realty, Tata Housing, HDIL, Unitech, Godrej Properties, Kalpataru group, Omkar Realtors, Hiranandanis, Oberoi Realty, Hubtown, Kumar Urban Development, Vakratunda group and S Raheja are some of the players who are into redevelopment space now.

CREDAI seeks PM intervention to curb black money in realty business

31 May 2012, PTI.

NEW DELHI: CREDAI, the apex body for real estate developers, today sought Prime Minister’s intervention to bring reforms for curbing black money in the realty sector.

The Confederation of Real Estate Developers Association of India (CREDAI) suggested reforms in four key areas that impact the real estate – administrative, land, tax and banking.

“The economic reforms initiated by Manmohan Singh as the Finance Minister over 20 years ago have seen the end of the Licence Raj, but the real estate sector is still governed by controls and increased controls,” CREDAI President Mr Lalit Kumar Jain said in a statement.

He regretted that industry’s demand for quick approvals of project through single-window clearnce system has received poor response from authorities like the Environment Ministry.

“We are victims of the system, not the beneficiaries! We hate this system which makes us look ugly. We curse every person who exploits us to give us a legitimate permission which we deserve instantly and without any illegitimate demand,” Jain observed.

CREDAI has been pointing out that there are over 40 clearances that a developer is supposed to get which leads to human interaction with over 150 officials at various stages.

“Any delay at any stage obviously gives rise to ‘greasing of palms’ as the developer is always anxious to finish his project in time and avoid delays,” Jain said, while appealing to the Prime Minister to urgently call for discussions on comprehensive reforms for realty sector.

Commenting on the recent White Paper on Black Money, CREDAI said: “It is a good attempt at focusing the nation’s attention on the issue, but it unfortunately picks on the real estate and deals with just a couple of issues like the Stamp Duty as though that is the only cause of the problem”.

Jain lamented that the developer community has become a favourite punching bag for many whenever they talk about the national curse. “We too hate the system that labels us as crooks, cheats and breeders of black money,” he said.

DLF aims Rs 6,500 crore sales in FY’13; sale of non-core business soon

NEW DELHI: Realty giant DLF today said it is targeting Rs 6,500 crore of sales in the housing segment this fiscal, up by 23 per cent from FY 2012, and expects to sell three big-ticket non-core assets in the next few months.

In an analyst presentation, DLF, the country’s largest realty firm, said that it expects to raise up to Rs 4,000 crore from sale of non-core assets in the next six months. It is looking to sell its luxury hotel business Amanresorts, wind energy and a prime land in Mumbai.

“We expect to sell 12 million sq ft for Rs 6,500 crore in 2012-13 fiscal as against about Rs 5,200 crore in the last fiscal,” DLF Group Chief Financial Officer Ashok Tyagi said.

Of the expected sales bookings, the company is targeting Rs 1,500 crore from a luxury project ‘Magnolia’ at Gurgaon that would be launched in the second half of this fiscal.

On non-core assets divestment, DLF Executive Director (Finance) Saurav Chawla said: “We are close to the closure of these non-core assets sale. In next few months, we will be able to announce it”.

The company expects to sign definitive agreement with potential buyers in the first half of this fiscal, Chawla said, adding that funds might be received in the second half.

DLF has raised about Rs 1,774 crore in last fiscal through divestments of non-core assets, including plots and IT parks. The divestments proceeds has reached Rs 4,844 crore till date.

“Potential value for further divestments in the next 6 months stands at Rs 3,000-4,000 crore,” DLF said in a presentation.

The total target of divestment of non-core assets of Rs 10,000 crore would be achieved in the medium term, it added.

According to the presentation, DLF has been able to reduce its whopping debt by only Rs 33 crore in the fourth quarter of last fiscal to Rs 22,725 crore.

It plans to reduce debt through “strengthening of operational cash flows, enhance momentum on non-core divestments along with a moderation in land aggregation and capex”.

On debt, Tyagi said borrowings to the tune of Rs 3,900 crore is due this fiscal and clarified that the bulk of funds raised from non-core assets sale would be used to retire debt.

The CFO also divulged that about Rs 1,800 crore of debts are related to Amanresorts and wind energy businesses.

As part of business strategy in FY 2013, DLF wants to conserve cash with moderate capex and land acquisition and protect margins through ‘cost escalation’ clauses.

Vibgyor Group launches affordable housing projects across India

KOLKATA: Vibgyor Group has recently launched a slew of affordable housing projects across India. Priced at Rs 3 lakh and above, these flats will have modern architecture, layout, designs and amenities to cater to the needs of the buyers.

These complexes will also house clubs, guest houses, ATM counters, swimming pools, utility shops, community halls and landscape gardens with some area set aside for children to play. Some of these affordable housing ventures includes Green Garden in Bankura, Vibgyor Housing in Gurap, Kings Hut and Kings Residency in Rajarhat, Mira Garden in Madhyamgram, Vibgyor Housing in Durgapur, Gunjan and Lucknow.
31 May 2012, ET Bureau.

Affordable housing has become the new mantra for everyone related to the realty sector primarily because of scarce land and soaring property prices. Our mission is to provide the best of facilities at an affordable price and help low income group families realise their dreams of owning a home with modern decor and amenities”, said Raja Bhadra, chairman & managing director, Vibgyor Group, in a mediastatement issued on Thursday.

While many projects in the affordable housing segment are 1-2-3 BHK apartments, some of these projects like Green Garden, Bankura and Vibgyor Housing in Lucknow, Gurap, Durgapur and Gunjan will also house studio apartments.

Ghaziabad administration plans to increase circle rates

29 May 2012, PTI.

GHAZIABAD: Purchasing a dream home in Ghaziabad is likely to turn costlier with the district authorities planning to increase the circle rates soon.

At a meeting headed by District Magistrate Aparna Upadhyay on May 17, district authorities decided to hike the circle rates to cover the gap between circle price and market value, Assistant Commissioner Stamp K P Yadav said.

Following this, the registrars and tehsildars prepared a revised list which proposes a 10 per cent to 40 per cent increase in circle rates, he added.

The list of proposed circle rates is available in the office of all the registrars. The stamp and registry department has invited objections within a week.

Anyone having an objection can make the complaint at the collectorate, he said.

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