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Archive for August, 2009

Sunshine Post Slow Down

August 3rd, 2009

nasir

Bewilderness say DEMYSTIFICATION continues in either situation of SLOW-DOWN or SUNSHINE. But certainly, now it is a ‘SUNSHINE’ status after passing through a short & sudden stage of ‘SLOWDOWN’.

As it has been ‘MYSTIFYING all the way, all trade – pundits analyzing & sudden Global ‘Slow-Down’ – did it pulled the situation worse?.

The REALTY (specially Residential) will stay a long-term attractive preposition in our country. Hopefully the cycle after the current showdown is going to be the one which is more efficient & self sustaining.

Mystification is not in one field, it has been

surrounded in multipliers of complexes.

Mystification surrounded 1 year back is being cleared by clearing the float of short term / High Expectation of Realtor goes vanishing.

As matter of fact, the Indian real estate is going through a vertical in sense structural variation changes. “Since 2001, it has grown exponentially. It is by increasing urbanization, better affordability and the on-going multiplier coefficient effect on housing demand. The life style changes, because of growth, & naturally resulting ultimately for Housing from their higher disposable incomes.

From bigger development and rental fields, offered by the reality markets together with strong economic growth & unmatched demographics, has helped the sector attract large overseas, investments too i.e. ‘SUN SHINE’ in real.

Further more, today developers are facing liquidity crunch as well as 30% rise in construction cost. Sky touching property prices have reduced affordability & lowered end-user demand. So, does all employ that the boom is over, signaling a road down hill? Certainly not.

As dealt in my earlier article of two strengthening

factors of BRAND & MATURITY. So, once the slow down gipps-up the weaker players will move to back-burners. In the process the companies with ‘Brand’ & Maturity – the established developers operationally will emerge as ‘WINNERS’ – moving away the existing ‘mystification’ while purchasing ‘HOME’ for young & able buying couples etc.

In the trade of Realty, we say it is the time of ‘CORRECTION’. This will be positive outcome leading to improved affordability, creating significant demand again.

Developers all around in the country has already amassed huge land bank. Accommodating the supply, demand to consumption levels need to be raised. This level correction would bring down the price. This will make developers – price takers, rather than price-makers.

And above the phenomena of BRAND & MATURITY amongst the possession (the two) partners with certainly reduce the mystification – cloud of mystify cleaning – part by part.

India has been devoid of

sophistication in the Realty field, which we can just see happening i.e. institutionalization of investment, PE Funds, REMF hedge funds, REIT funds, insurance companies, pension funds, banks, & other institutions would master, invest or operation in office, residential, hotels, industrial retail space etc. etc.

The synergy I found, while in West Germany in early 90s and Australia since the beginning of this 21st

Century.

But very different from the western economy, Indian Real Estate will be fit enough to stay as a staying longer as attractive proposition. Behind these

misty-clouds of current slowdown (presumably stated),

which would grow a long lasting and worthy of

self-sustaining.

sunshine

Bewilderness say DEMYSTIFICATION continues in either situation of SLOW-DOWN or SUNSHINE. But certainly, now it is a ‘SUNSHINE’ status after passing through a short & sudden stage of ‘SLOWDOWN’.

As it has been ‘MYSTIFYING all the way, all trade – pundits analyzing & sudden Global ‘Slow-Down’ – did it pulled the situation worse?.

The REALTY (specially Residential) will stay a long-term attractive preposition in our country. Hopefully the cycle after the current showdown is going to be the one which is more efficient & self sustaining.

Mystification is not in one field, it has been surrounded in multipliers of complexes.

Mystification surrounded 1 year back is being cleared by clearing the float of short term / High Expectation of Realtor goes vanishing.

As matter of fact, the Indian real estate is going through a vertical in sense structural variation changes. “Since 2001, it has grown exponentially. It is by increasing urbanization, better affordability and the on-going multiplier coefficient effect on housing demand.

The life style changes, because of growth, & naturally resulting ultimately for Housing from their higher disposable incomes.

From bigger development and rental fields, offered by the reality markets together with strong economic growth & unmatched demographics, has helped the sector attract large overseas, investments too i.e. ‘SUN SHINE’ in real.

Further more, today developers are facing liquidity crunch as well as 30% rise in construction cost. Sky touching property prices have reduced affordability & lowered end-user demand. So, does all employ that the boom is over, signaling a road down hill? Certainly not.

As dealt in my earlier article of two strengthening factors of BRAND & MATURITY. So, once the slow down gipps-up the weaker players will move to back-burners. In the process the companies with ‘Brand’ & Maturity – the established developers operationally will emerge as ‘WINNERS’ – moving away the existing ‘mystification’ while purchasing ‘HOME’ for young & able buying couples etc.

In the trade of Realty, we say it is the time of ‘CORRECTION’. This will be positive outcome leading to improved affordability, creating significant demand again.

Developers all around in the country has already amassed huge land bank. Accommodating the supply, demand to consumption levels need to be raised. This level correction would bring down the price. This will make developers – price takers, rather than price-makers.

And above the phenomena of BRAND & MATURITY amongst the possession (the two) partners with certainly reduce the mystification – cloud of mystify cleaning – part by part.

India has been devoid of sophistication in the Realty field, which we can just see happening i.e. institutionalization of investment, PE Funds, REMF hedge funds, REIT funds, insurance companies, pension funds, banks, & other institutions would master, invest or operation in office, residential, hotels, industrial retail space etc. etc.

The synergy I found, while in West Germany in early 90s and Australia since the beginning of this 21st Century.

But very different from the western economy, Indian Real Estate will be fit enough to stay as a staying longer as attractive proposition. Behind these misty-clouds of current slowdown (presumably stated), which would grow a long lasting and worthy of self-sustaining.

Dr. Shailendra Kumar, who figures in “WHO IS WHO” in Asia, with his global-exposure in the Building Engineering, as an extended working after UN assignments as well in Germany & in other European & American continents,. By education a Civil Engineer from one of the national best institutes to Masters in Arch. Engg. & Management, contains only after obtaining Ph.D. in Environmental Engineering from CA, U.S. Back Home first careered with TATAS, followed a stint in L&T & Unitech, has been associated with others i.e. Omaxe, Eldeco etc.

Meltdown of States EXCHAQUER - a Global Impact is betting physical impact on common man purses; some Nations less some more but certainly it make the world CHURN-AROUND - a first thrust in the 21st Century of negative financing & made the people feel lack of ‘liquidity’ which was enough to do the world going aspiring for the future DAYS ‘MERRY’- MERRIER & MERRIEST, “Fine”, but did the falling economical ‘HIT’, the slow down of realty market is indeed? Did this contributed making the mystifying Realty worse? Or it has just passed away touching the tangent.

Is it virtual? – A brighter

Sun-shine after shad out.

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COST OF HOUSE

August 3rd, 2009

nasir

When it comes to real estate investments or purchase of a residential house, most people do not factor in all the costs. One of the big reasons is ignorance about different cost. So typically, while buying a house, one suddenly realizes that the budget has gone haywire completely because additional costs have to be incurred.

So what are the various cost’s involved in? There are indeed many and most of the major ones have been outlined below:

BSP – Basic Sale Price

PLC – Preferential Location Charge (there could be multiple preferential locations in the project)

EDC – External Development Charge

IDC – Infrastructure Development Charge

IBMS/IFMS:

Club Membership:

Parking Charges:

Other Miscellaneous Charges:

Brokerage Charge (If you are taking the flat through a broker):

Stamp Duty & Registration Charges:

Home Insurance:

Interest cost: If you have taken a home loan

Cost of Interiors: (depending upon what additional, over and above delivered by the builder, is required by you before moving in)

Cost of Delay of Project

Typically during the initial discussions, we get guided by the basic sale price quote. Advertisement and discussions of rates are typically on per square foot rate. We tend to ignore rest of the costs in beginning!

For example quoted price is Rs 2500 per sq ft and size of 3 BR flat is 1750 sft. So the total cost of the project is Rs 43 Lakh 75 thousand.

In additional to the basic quoted prices, following were additional charges:

>> EDC & IDC: Rs. 200- psqft

>> Ground Floor – 4th Floor: Rs. 200 psqft

>> Park Facing / Landscape Facing / Piazza Facing / Corner: Rs. 200 per sq.ft.

>> Any 2 PLCs: Rs. 250/- psqft, o Any 3 PLCs: Rs. 300/- psqft

>> Car Parking: Rs. 3,00,000 (Covered & Reserved) Compulsory : Rs. 2,00,000 (additional open parking, Optional)

>> Club Membership: Rs. 50,000

>> IBMS: Rs. 50 per sq.ft.

For a park facing ground floor flat, you gave to pay Rs 200+Rs250 = Rs 450 per sft. IBMS is Rs50 per sft. That means Rs 500 per sft. Additionally you pay Rs 3Lakh for parking and Rs 50 Thousand for club membership. That is Rs 3 Lakh 50 thousand for 1750 sft flat (equates to Rs 200 per sft). So that means, effectively your rate is Rs 3200 per sft. Now cost of your flat is Rs 56 Lakhs.

Are you done as yet? No, if you have taken the flat through broker, do account for the brokerage fees that could be upto 2% of your total transaction value. So let’s say in this case it’s Rs 1 Lakh. Several times broker offers you a must better deal compared to the company offered prices and it’s advisable to use a good and reputed broker for your transaction.

What’s more, do account for water connection and electricity deposit. It’s advisable that you insure your home. There could be unexpected additional changes. It will be safe to say you provision Rs 50,000 to 1 Lakh for these charges.

Now stamp duty and registration will be addition. Stamp duly say 6% of BSP will be Rs 2 Lakh 63 thousand. To that add cost of reistraton and legal charge of Rs 27 thousand. That amount to a total of Rs 3 Lakh.

Total cost till the registration in the above case is Rs 56 Lakh + Rs 1 Lakh + Rs 1 Lakh + Rs 3 Lakh = Rs 61 Lakh. Finally fully loaded per square foot cost comes to Rs 3500 as against our start of plan at Rs 2500!!!

Besides these, there could be a major interior work that could cost from a few lakhs to a much higher number. Then comes furniture, which could again leave a big hole in your pocket. However, you have an option not to incur this expense, especially if you plan to rent

The above calculations are done assuming that there is no delay on the project. If the project is delayed – what’s the cost of that delay? You do not get possession and hence you can not claim income tax rebate (this is very important point, often ignored by home buyers). You keep on paying your EMI as well as you incur rental loss. While some developers do compensate EMI if there is a project delay, please carefully look into the deal. Rental loss if lose that you are incurring by not using the property for your own use or income that you might have earned by renting out the property. No builder will be compensating you that rental loss.

Lesson is before investing in a project, do check each and every cost and plan according. The above example was indicative and costs may vary from builder to builder and place to lace. Do do Check your own numbers.

To additional important pieces of advice:

>> Rates that are quotes by the developers are for super built up area. This is 30 to 50% more than the effective carpet area you get. When comparing two projects, do understand fully the carpet area that you are getting and compare the project rate on that and not on the super built up area as criteria of calculating super built up area may vary from developer to developer.

>> Any variation in the final size of flat from original size can leave a big difference to your original calculation. Addition 100 sft in our above example will mean an additional cost of Rs 3.5 Lakh!!

>> If you are investing, do not worry about buying a flat on a preferential location. In resale, you do not get equivalent appreciation on your preferential location changes and discussions usually boil down to area of the flat.

Major point of dissent for a buyer is the unexpected costs that comes up in the end and leaves a customer unhappy.

Most of the good developers make all these points clearly to the buyer and at times some buyers tend to ignore points or do not do all calculations. Understanding the above points will help you make take correct financial planning and make you a happy

buyer.

make-money-online

When it comes to real estate investments or purchase of a residential house, most people do not factor in all the costs. One of the big reasons is ignorance about different cost. So typically, while buying a house, one suddenly realizes that the budget has gone haywire completely because additional costs have to be incurred.

So what are the various cost’s involved in? There are indeed many and most of the major ones have been outlined below:

BSP – Basic Sale Price

PLC – Preferential Location Charge (there could be multiple preferential locations in the project)

EDC – External Development Charge

IDC – Infrastructure Development Charge

IBMS/IFMS:

Club Membership:

Parking Charges:

Other Miscellaneous Charges:

Brokerage Charge (If you are taking the flat through a broker):

Stamp Duty & Registration Charges:

Home Insurance:

Interest cost: If you have taken a home loan

Cost of Interiors: (depending upon what additional, over and above delivered by the builder, is required by you before moving in)

Cost of Delay of Project

Typically during the initial discussions, we get guided by the basic sale price quote. Advertisement and discussions of rates are typically on per square foot rate. We tend to ignore rest of the costs in beginning!

For example quoted price is Rs 2500 per sq ft and size of 3 BR flat is 1750 sft. So the total cost of the project is Rs 43 Lakh 75 thousand.

In additional to the basic quoted prices, following were additional charges:

>> EDC & IDC: Rs. 200- psqft

>> Ground Floor – 4th Floor: Rs. 200 psqft

>> Park Facing / Landscape Facing / Piazza Facing / Corner: Rs. 200 per sq.ft.

>> Any 2 PLCs: Rs. 250/- psqft, o Any 3 PLCs: Rs. 300/- psqft

>> Car Parking: Rs. 3,00,000 (Covered & Reserved) Compulsory : Rs. 2,00,000 (additional open parking, Optional)

>> Club Membership: Rs. 50,000

>> IBMS: Rs. 50 per sq.ft.

For a park facing ground floor flat, you gave to pay Rs 200+Rs250 = Rs 450 per sft. IBMS is Rs50 per sft. That means Rs 500 per sft. Additionally you pay Rs 3Lakh for parking and Rs 50 Thousand for club membership. That is Rs 3 Lakh 50 thousand for 1750 sft flat (equates to Rs 200 per sft). So that means, effectively your rate is Rs 3200 per sft. Now cost of your flat is Rs 56 Lakhs.

Are you done as yet? No, if you have taken the flat through broker, do account for the brokerage fees that could be upto 2% of your total transaction value. So let’s say in this case it’s Rs 1 Lakh. Several times broker offers you a must better deal compared to the company offered prices and it’s advisable to use a good and reputed broker for your transaction.

What’s more, do account for water connection and electricity deposit. It’s advisable that you insure your home. There could be unexpected additional changes. It will be safe to say you provision Rs 50,000 to 1 Lakh for these charges.

house-calculator

Now stamp duty and registration will be addition. Stamp duly say 6% of BSP will be Rs 2 Lakh 63 thousand. To that add cost of reistraton and legal charge of Rs 27 thousand. That amount to a total of Rs 3 Lakh.

Total cost till the registration in the above case is Rs 56 Lakh + Rs 1 Lakh + Rs 1 Lakh + Rs 3 Lakh = Rs 61 Lakh. Finally fully loaded per square foot cost comes to Rs 3500 as against our start of plan at Rs 2500!!!

Besides these, there could be a major interior work that could cost from a few lakhs to a much higher number. Then comes furniture, which could again leave a big hole in your pocket. However, you have an option not to incur this expense, especially if you plan to rent

The above calculations are done assuming that there is no delay on the project. If the project is delayed – what’s the cost of that delay? You do not get possession and hence you can not claim income tax rebate (this is very important point, often ignored by home buyers). You keep on paying your EMI as well as you incur rental loss. While some developers do compensate EMI if there is a project delay, please carefully look into the deal. Rental loss if lose that you are incurring by not using the property for your own use or income that you might have earned by renting out the property. No builder will be compensating you that rental loss.

Lesson is before investing in a project, do check each and every cost and plan according. The above example was indicative and costs may vary from builder to builder and place to lace. Do do Check your own numbers.

To additional important pieces of advice:

>> Rates that are quotes by the developers are for super built up area. This is 30 to 50% more than the effective carpet area you get. When comparing two projects, do understand fully the carpet area that you are getting and compare the project rate on that and not on the super built up area as criteria of calculating super built up area may vary from developer to developer.

>> Any variation in the final size of flat from original size can leave a big difference to your original calculation. Addition 100 sft in our above example will mean an additional cost of Rs 3.5 Lakh!!

>> If you are investing, do not worry about buying a flat on a preferential location. In resale, you do not get equivalent appreciation on your preferential location changes and discussions usually boil down to area of the flat.

Major point of dissent for a buyer is the unexpected costs that comes up in the end and leaves a customer unhappy.

Most of the good developers make all these points clearly to the buyer and at times some buyers tend to ignore points or do not do all calculations. Understanding the above points will help you make take correct financial planning and make you a happy buyer.

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HOME SWEET HOME THINK AGAIN

August 3rd, 2009

nasir

Once you have identified your house, you have got your loan approved and you think you have done it all …. Is that true? Think again, it’s your sweet home after all.

Once the formalities are complete, you should make sure you are not in any legal trouble. There are some very important parts that you need to take care off.

Let touch base with few of them:

What is the correct price of the house?

The agreement that you enter with the builder mentions all the cost plus some additional cost like electricity charges, maintenance charges, parking space charges, registration charges and various levies or taxes. However the builder may include some abysmally unwanted charges under various heads which may come as surprise factor.

Intelligence

>> Make sure you get the agreement vetted by a experienced lawyer for any anomalies in the agreement.

>> Check the agreement for any uncalled for charges.

>> If there are any extra charges for alteration in plans, ask for building sanctions provided by the government authorities for the project.

What is the correct size of your house?

The agreement will clearly mention the size of your house that you are purchasing. However the agreement may also state that “designs are tentative and builders have right to change or modify the plan”. Hence the size of the house delivered to you would be different than originally stated.

Intelligence

>> Before committing to buy the property do some research on builders past precedence.

>> If possible, get in touch with customers who have purchased property from builder and take feedback.

>> Include the minimum and maximum size of the flat in the agreement so that builder can not deviate beyond these thresholds.

The actual area of your house?

The actual area of your house the area within the walls of your house, not counting the square feet’s under the wall. This area is commonly known as carpet area. The area including the wall and balcony is known as built up area and the area consisting of common zones of property like garden, lobby, lifts etc is known as super built up area.

Generally the carpet area of you house is 15-30% less than the super built area, which is being quoted by builder while getting into an agreement. This factor is unverified till the construction of flat is complete.

Intelligence

>> Purchase the property on the basis of carpet area of

the flat.

>> Ensure that this area is mentioned in the agreement.

>> Ensure a termination clause with builder, so that the agreement stand null and void if the carpet area provided is less than that mentioned in the agreement. Also builder needs to refund the amount along with interest in such scenario.

Project completion / possession date

This is big problem in the industry. Builders normally do not provide flats on time. There are lots of instances where the builders have delayed the projects by over a year or so.

Intelligence

>> Monitor the construction activity periodically.

>> Create an owners group and deploy third party monitoring company to provide update on construction status.

>> If the builders in not undertaking the project in time build pressure on builder by forming an owners group.

Completion Certificate

When you get keys to your house the builders needs to provide you with completion certificate. This certificate is necessary for registration of your house and various other formalities.

Intelligence

>> Make sure that agreement mentions “Completion Certificate” clause, wherein builder states that they will hand over the completion certificate on handing over the house to you.

>> If the builder delays a lot form an owner’s society and put pressure on builder to provide the same.

Quality of construction and

warranty period

It’s a menace in the industry that you spend your lifetime savings to get your dream house and its starts falling apart in no time at all.

Intelligence

>> Ensure that the agreement mentions all the brand and quality of material that are being used in the construction of the project.

>> Form an owner’s association and get it verified by an expert on regular basis.

>> Include a “Warranty period” clause in the agreement which binds builder to rectify the any fault due to wearing of construction.

Since there is no regular in for this industry, you

must use the legal agreement as much as possible to

get the best that you need. This will ensure that you

get what you have paid for, after all its you Home Sweet Home.

Once you have identified your house, you have got your loan approved and you think you have done it all …. Is that true? Think again, it’s your sweet home after all.

Once the formalities are complete, you should make sure you are not in any legal trouble. There are some very important parts that you need to take care off.

Let touch base with few of them:

home-sweet-home

What is the correct price of the house?

The agreement that you enter with the builder mentions all the cost plus some additional cost like electricity charges, maintenance charges, parking space charges, registration charges and various levies or taxes. However the builder may include some abysmally unwanted charges under various heads which may come as surprise factor.

Intelligence

>> Make sure you get the agreement vetted by a experienced lawyer for any anomalies in the agreement.

>> Check the agreement for any uncalled for charges.

>> If there are any extra charges for alteration in plans, ask for building sanctions provided by the government authorities for the project.

What is the correct size of your house?

The agreement will clearly mention the size of your house that you are purchasing. However the agreement may also state that “designs are tentative and builders have right to change or modify the plan”. Hence the size of the house delivered to you would be different than originally stated.

Intelligence

>> Before committing to buy the property do some research on builders past precedence.

>> If possible, get in touch with customers who have purchased property from builder and take feedback.

>> Include the minimum and maximum size of the flat in the agreement so that builder can not deviate beyond these thresholds.

The actual area of your house?

The actual area of your house the area within the walls of your house, not counting the square feet’s under the wall. This area is commonly known as carpet area. The area including the wall and balcony is known as built up area and the area consisting of common zones of property like garden, lobby, lifts etc is known as super built up area.

Generally the carpet area of you house is 15-30% less than the super built area, which is being quoted by builder while getting into an agreement. This factor is unverified till the construction of flat is complete.

Intelligence

>> Purchase the property on the basis of carpet area of

the flat.

>> Ensure that this area is mentioned in the agreement.

>> Ensure a termination clause with builder, so that the agreement stand null and void if the carpet area provided is less than that mentioned in the agreement. Also builder needs to refund the amount along with interest in such scenario.

Project completion / possession date

This is big problem in the industry. Builders normally do not provide flats on time. There are lots of instances where the builders have delayed the projects by over a year or so.

Intelligence

>> Monitor the construction activity periodically.

>> Create an owners group and deploy third party monitoring company to provide update on construction status.

>> If the builders in not undertaking the project in time build pressure on builder by forming an owners group.

Completion Certificate

When you get keys to your house the builders needs to provide you with completion certificate. This certificate is necessary for registration of your house and various other formalities.

Intelligence

>> Make sure that agreement mentions “Completion Certificate” clause, wherein builder states that they will hand over the completion certificate on handing over the house to you.

>> If the builder delays a lot form an owner’s society and put pressure on builder to provide the same.

Quality of construction and warranty period

It’s a menace in the industry that you spend your lifetime savings to get your dream house and its starts falling apart in no time at all.

Intelligence

>> Ensure that the agreement mentions all the brand and quality of material that are being used in the construction of the project.

>> Form an owner’s association and get it verified by an expert on regular basis.

>> Include a “Warranty period” clause in the agreement which binds builder to rectify the any fault due to wearing of construction.

Since there is no regular in for this industry, you must use the legal agreement as much as possible to get the best that you need. This will ensure that you get what you have paid for, after all its you Home Sweet Home.

Posted in Articles

No Comments »

Faridabad – an emerging-hot real estate destination

August 3rd, 2009

nasir

Last few years has seen a major change happening on the real estate radar of Faridabad city and city’s landscape is fast changing. What’s making it one of the hot destinations? What’s the current ground situation of residential real estate market?

Faridabad is the industrial town of Haryana and has seen growth on account of the industries in Faridabad (see inset)

Focus on Infrastructure development, specially connectivity makes Faridabad a very interesting real estate destination, Faridabad is on broad gauge of railway line of New Delhi- Mumbai Line. The trains for big cities like Mumbai, Chennai, Hyderabad, etc are easily accessible from here. Delhi-Metro is likely to cover the city by 2012 as proposed by Government. Roadways services of Haryana and neighbouring states like Delhi, Uttar Pardesh and Madhya Pradesh, etc. are easily accessible. National Highway-2 (Delhi – Mathura Highway) passing through the city makes it well connected with Delhi. Faridabad, Noida Ghaziabad expressway (FNG) passing from Greater Noida will make easy connectivity to Noida, Greater Noida and Ghaziabad.

In the last 5 years, the city has experienced a big economic boom with skyscrapers, malls and architectural wonders filling the city beautifully. The malls offer a refreshing break with shopping and wholesome food and fun. Places like SRS Multiplex, Crown Plaza mall are just the beginning of an idea. 10 such malls by renowned builders like like Eldeco Station-1, Mall Manhattan by Parsavnath are in pipeline in and around Mathura Road (National Highway no.2).

AUGTICS carried out survey of residential projects that are developed by the private developers. Please note that not in distant past the real estate market was driven by re-sale of HUDA plots. But survey indicates that things are changing very fast.

Results of detailed survey

There are total 74 Residential Group Housing projects in Faridabad. Only 12 projects are completed where people are living. Other Projects are under construction and are supposed to be completed in the span of 2-3 years.

faridabad

Last few years has seen a major change happening on the real estate radar of Faridabad city and city’s landscape is fast changing. What’s making it one of the hot destinations? What’s the current ground situation of residential real estate market?

Faridabad is the industrial town of Haryana and has seen growth on account of the industries in Faridabad (see inset) Focus on Infrastructure development, specially connectivity makes Faridabad a very interesting real estate destination, Faridabad is on broad gauge of railway line of New Delhi- Mumbai Line. The trains for big cities like Mumbai, Chennai, Hyderabad, etc are easily accessible from here. Delhi-Metro is likely to cover the city by 2012 as proposed by Government. Roadways services of Haryana and neighbouring states like Delhi, Uttar Pardesh and Madhya Pradesh, etc. are easily accessible. National Highway-2 (Delhi – Mathura Highway) passing through the city makes it well connected with Delhi. Faridabad, Noida Ghaziabad expressway (FNG) passing from Greater Noida will make easy connectivity to Noida, Greater Noida and Ghaziabad.

In the last 5 years, the city has experienced a big economic boom with skyscrapers, malls and architectural wonders filling the city beautifully. The malls offer a refreshing break with shopping and wholesome food and fun. Places like SRS Multiplex, Crown Plaza mall are just the beginning of an idea. 10 such malls by renowned builders like like Eldeco Station-1, Mall Manhattan by Parsavnath are in pipeline in and around Mathura Road (National Highway no.2).

AUGTICS carried out survey of residential projects that are developed by the private developers. Please note that not in distant past the real estate market was driven by re-sale of HUDA plots. But survey indicates that things are changing very fast.

Results of detailed survey

There are total 74 Residential Group Housing projects in Faridabad. Only 12 projects are completed where people are living. Other Projects are under construction and are supposed to be completed in the span of 2-3 years.

Population census – (2001- 10,54,981) projected current population 15 L

Faridabad, a part of NCR, situated to the south of Delhi and located across the NH-2, Delhi-Madhura Highway. The city has been a hot tourist spot due to its nature filled environment. Badkal Lake and Suraj Kund are some splendid places to visit. Moreover, large Parks like Rose garden and Town Park also attract large visitors. Faridabad is an industrial town and famous for henna production on agriculture sector while tractors, motorcycles, switch gears, refrigerators, shoes and tyres are other famous industrial products of the city. The city also has a number of IT/ITes companies like Easy Infotech, Pixel India, Damco Solutions, Indiamart Intermesh Limited, NIIT centre, Telnet Technologies.

The city also has good options for education.

COLLEGES like : Niam Institute of Applied Management, , Aggarwal College, D.A.V. College, Govt. College, K.L.M Dayanand College for Women, Sarswati Mahila College etc. INSTITUTES like: YMCA Instt.of Engineering, Sudha Rustagi College Of Dental Sciences And Research, Career Institute of Tech., Echolon Institute of Engineering, Food Craft Institute, I.T.I., DAV Institute of Management, Govt. Ploytechnic, Govt. Polytechnic for Women, Applied College Of Management & Engineering, Al-Falah School of Engg & Tech., Advanced Institute Of Tech. & Mgmt. and Cement Research Institute, National Institute of Finance Management (M/o Finance), National Academy of Central Excise, Custom & Narcotics, Power Engineers Training Institute, Central Fertilizer Quality Control & Training Institute, Regional Directorate of Apprentice & Training(RDAT), Wireless Training Centre (Cabinet Secretarite), Oriental Insurance Staff Training College. SCHOOL:, Modern Vidya Niketan, Apeejay Sr. Sec. School, Central School No. 1, Central School, DAV Public School, Delhi Public School, , Govt. Girl’s School, Gold field public school, Grand Columbus Public School, Manav Rachna International School, Ryan International School, St Albans School, St. John’s School, St. Anthony School, St. Joseph’s School,St. Thomas School Sh.S.D.Sr.Sec.School, Vidya Niketan

graph

Conclusion

Amount of supply that is going to come in next few years is almost as much as what’s expected in Greater Noida. Once the planned connectivity with Gurgaon and Ghaziabad (via Grearter Noida) is done, once can expect major upward rise in the Faridabad real estate market. With adequate old and new infrastructure, education institutions and opportunities for jobs within Faridabad, will make it an attractive option for end users as well as prospective investors.

Posted in City Reports, Faridabad

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Delhi Ambala National Highway – One gateway to Another!

August 2nd, 2009

nasir

Delhi Ambala National highway (NH1) has plethora of activities in real estate domain. Delhi being capital of India also acts as gateway to Uttar Pradesh, Madya Pradesh and Rajashthan along with southern part of Haryana. Ambala on the other is gateway to Punjab and Himachal Pradesh.

This is one national highway in India wherein one can find development zones after every few kilometers, starting right from Kundli adjoining Delhi, Panipat, karnal, kurukshetra and Ambala.

With food processing activities giving impetus to development in Karnal, Carpet in Panipat and electrical motors in Ambala, the local economy is actively pursing investment in real estate space. Developers are moving ahead with their plans in these cities, owning to near proximity and economy dependent on Delhi.

Addition of Western and Eastern Peripheral Expressway will add to more development at Kundli and Sonipat. Sonipat also is on verge of becoming an integral part of NCR, increasing the scope of development in this area. The area boasts of lot of low cost flats and plots. These will certainly catalyse gains in real investment.

Delhi Ambala National highway (NH1) has plethora of activities in real estate domain. Delhi being capital of India also acts as gateway to Uttar Pradesh, Madya Pradesh and Rajashthan along with southern part of Haryana. Ambala on the other is gateway to Punjab and Himachal Pradesh.

This is one national highway in India wherein one can find development zones after every few kilometers, starting right from Kundli adjoining Delhi, Panipat, karnal, kurukshetra and Ambala.

With food processing activities giving impetus to development in Karnal, Carpet in Panipat and electrical motors in Ambala, the local economy is actively pursing investment in real estate space. Developers are moving ahead with their plans in these cities, owning to near proximity and economy dependent on Delhi.

Addition of Western and Eastern Peripheral Expressway will add to more development at Kundli and Sonipat. Sonipat also is on verge of becoming an integral part of NCR, increasing the scope of development in this area. The area boasts of lot of low cost flats and plots. These will certainly catalyse gains in real investment.

Kundli

Kundli (Sonepat) Haryana is the fastest upcoming area in the NCR of Delhi. Delhi being a congested area to live in, and Kundli, being in close vicinity of Delhi(just 30 kms), has become an attractive and easily accessible place to live in. Good number of builders and developers have planned various residential and commercial projects. In future, Kundli will enjoy very good connectivity as both the Eastern and the Western Expressway will converge here.

Sonepat

Sonepat is the emerging Gurgaon of the west,” goes the refrain among realtors. Moreover, the Haryana government’s upcoming Kundli-Manesar-Palwal corridor or the Western Express, certainly augurs well to boost the demand for residential units in the region. The upcoming Rajiv Gandhi Educational University at Kundli is expected to add another fillip to the development of the area. Noted realtors like Ansals, Omaxe, Eldeco and Parasvanath also have projects in Sonepat in various stages of development.

Panipat

Panipat city is famous in India by the name of “City of Weaver”. Panipat District has significant place in International Market for “Handloom Production”. Darri, Carpet Mat, Table Cover, Bed sheet, Bed Cover, Curtain etc. Panipat also has heavy industry, with a refinery of the Indian Oil Corporation, a National Thermal Power Corporation power plant and a National Fertilizers Limited plant.

Panipat is only 90 kms away from Delhi on NH-I is another hot place for real estate investment. Real estate development has started here at fast pace since last 2-3 years. A number of developers are developing projects here.

Karnal

Karnal is famous for lush green pastures, Liberty shoes, the production of high-quality basmati rice and for its many agricultural and dairy research institutions. It is midway between Delhi and Chandigarh, being 123 km north of Delhi and 126 km south of Chandigarh, on the National Highway NH-1. ts location makes it a strategic interstate gateway to three important Northern Indian states Punjab, Haryana and Himachal Pradesh. The proximity to New Delhi has led to Karnal being acknowledged as an integral part of the future Delhi Mega-polis.

Kurukshetra

Modern day Kurukshetra continues to exude a sense of old-world charm and an enduring aura of peace and tranquillity. With as many as 365 holy shrines, it is an important destination for Hindu pilgrims. Moreover, the large number of heritage structures and archaeological sites makes it bustling centre of tourism.

Kurukshetra enjoys significant location advantages, being just 160 kilometres away from the Indian capital city of New Delhi. It is well-connected by road, rail and even air since the Chandigarh airport is a mere 116 kilometres away.

Ambala

Ambala city is famous for motor and grinder mixer manufacturing also the wholesale market of textile is famous all over India. Being located near Chandigarh, Haryana, the city is slowly turning a hot real estate investments destination. City has also witnessed real estate growth since last 2-3 years. The Galaxy mall in Sector 7, includes Fun Cinema, Spencers, Reebok, Madame, Archies, Hues, McDonalds etc. The Big Bazar in Ambala Cantt is also one of favourite shopping option for people of all age groups. A township by Vatika Group, Vatika City central at sector 23 is spread over 170 acres of landscaped greens. Vatika City Central offers world class amenities.

Each and every city on this highway has active local economy. The real estate activity in any area favours local economy, hence the area on Delhi Ambala highway are going to see good development and gains in future for investors / buyers. Each city has its own unique offering and hence they get lot of visitors to the city. This encourages lot of commercial developments in these cities.

Panipat invites lot of business visitors for carpets, Karnal for food processing business, Kurksherta for its historical importance & education activities, Ambala as transit point for Punjab & Himachal along with its local electrical motors business.

All major developers like Omaxe, Parsavnath, Vatika, Pearls, TDI etc have launched there projects in these cities. Although the returns might be moderate in present times, the cities will give good return on investment on long term investment horizon. As it’s said “The road between Gateways are for connoisseurs”, and the Dehi Ambala National highway entrust the quote.