Ahmedabad, October 29, 2007 - Ganesh Housing Corporation Ltd has announced that the Company has acquired land admeasuring 35000 sq.ft. in a posh area near Vijay Cross Roads, Memnagar, Ahmedabad.
The said land is situated in the heart of the city. The Company is putting up a shopping mall which will be studded with four screen multiplex and high end retail stores. The estimated area of construction is approximately one lakh sq.ft.
Ganesh Housing had earlier in the month announced that the Company is planning to make a retail foray and for this purposehad identified five properties in Paldi, Ambawadi, Thaltej - SAL Road, Thaltej - S G Road and Sola areas.
Ahmedabad
Wednesday, September 29, 2010
Real Estate Bubble Building- NHB Cautions Banks
The National Housing Bank (NHB), the regulator for housing finance companies, on Monday advised lenders to exercise caution on lending to high-value properties, even as it warned that a potential real estate bubble was building as residential prices in several regions in the country were breaching their lifetime highs. “There is some sort of real estate bubble building up in the residential property market in several regions. I expect banks and other institutions to show their due diligence before providing high value loans,” RV Verma, chairman and managing director at National Housing Bank, told Financial Chronicle.
Verma, who took over at the helm of NHB recently, also said developers should be cautious not to hike prices and instead should launch more projects that are appropriately priced. In the past three quarters, residential property prices have grown by over 10 per cent in the National Capital Region (NCR), 12 per cent in Kolkata, 13 per cent in Bangalore, 10 per cent in Chennai, 13 per cent in Pune and over 20 per cent in Mumbai, according to real estate consultants Jones Lang Lasalle India.
Verma said a cautious approach was needed to ensure that a repeat of the crisis in the housing market in late 2008 is not repeated. “I expect the real estate firms to be mature and not repeat the mistakes of 2008,” Verma said. The global markets went tumbling in 2008 as sub-prime real estate lending in the US created several defaults forcing the valuation of assets crashing down by over 50 per cent. Several banks and insurance firms were on the brink of bankruptcy including Citibank and AIG. Lehman Brothers has already filed for chapter 11 bankruptcy protections in the US.
In 2008 and 2009, Indian banks put curbs on lending to the real estate sector. The prices of some residential projects in Gurgaon have reached Rs 7,000-8,000 per sq ft, which in some cases is higher than the previous peak seen in the city. In central Mumbai, prices for some projects have risen to Rs 20,000-25,000 per sq ft. Verma said NHB is looking to increase its loans disbursements by about 23 per cent in 2010 to Rs 10,000 crore compared with last year’s Rs 8,160 crore. It announced its annual results for the year ended June 30 and posted net profit of Rs 280 crore
Verma, who took over at the helm of NHB recently, also said developers should be cautious not to hike prices and instead should launch more projects that are appropriately priced. In the past three quarters, residential property prices have grown by over 10 per cent in the National Capital Region (NCR), 12 per cent in Kolkata, 13 per cent in Bangalore, 10 per cent in Chennai, 13 per cent in Pune and over 20 per cent in Mumbai, according to real estate consultants Jones Lang Lasalle India.
Verma said a cautious approach was needed to ensure that a repeat of the crisis in the housing market in late 2008 is not repeated. “I expect the real estate firms to be mature and not repeat the mistakes of 2008,” Verma said. The global markets went tumbling in 2008 as sub-prime real estate lending in the US created several defaults forcing the valuation of assets crashing down by over 50 per cent. Several banks and insurance firms were on the brink of bankruptcy including Citibank and AIG. Lehman Brothers has already filed for chapter 11 bankruptcy protections in the US.
In 2008 and 2009, Indian banks put curbs on lending to the real estate sector. The prices of some residential projects in Gurgaon have reached Rs 7,000-8,000 per sq ft, which in some cases is higher than the previous peak seen in the city. In central Mumbai, prices for some projects have risen to Rs 20,000-25,000 per sq ft. Verma said NHB is looking to increase its loans disbursements by about 23 per cent in 2010 to Rs 10,000 crore compared with last year’s Rs 8,160 crore. It announced its annual results for the year ended June 30 and posted net profit of Rs 280 crore
Real Estate Trends in Ahmedabad, Gujarat
Gujarat’s healthy economy finds expression in all its cities, bustling as they are with activity on all fronts. Ahmedabad, being primus inter pares among other cities in Gujarat is recognized as one of the fastest growing Tier II cities in the country today
The very strong connections of NRI to Ahmedabad, and the Gujarati’s spending power and entrepreneurial skills have encouraged a healthy movement in real estate prices of late.
Though still at a very nascent stage, Ahmedabad is slated for steady growth in the next few years. Residential property ranges between Rs.600 in Ahmedabad North to over Rs.1200 on Ring Road currently. Builders like N.G Developers, Navratna, BGP Builders and Saumya Constructions are catering to the globe-trotting Gujarati with quality residential apartments.
Cashing in on the deep pockets of the local population, major builders have laid out commercial projects for the city to accommodate retail malls and luxury hotels. Niho’s Scottish Mall is coming up on the main Ashram road on 4.5 lakh sq. ft area at a cost of Rs.180 crore. An NRI-funded exhibition-cum-convention centre at Ahmedabad at a cost of $9.2 million will further promote commercial activity in the city.
The State Government’s vision is to develop Ahmedabad into a world-class city through reforms and infrastructure development. Its mission to make the city clean, liveable, productive and self sustaining has translated into the setting up of IT parks in and around Ahmedabad.
DLF has chalked out 30 acres for the city’s IT park, while the road to Gandhinagar will see another IT SEZ project by K.Raheja Corp coming up at a cost of Rs.8,000 million. Three projects have been identified for urban infrastructure development in the city including the Sabarmati riverfront project and integrated public transit system.
With property available at very competitive rates, Ahmedabad is a sound place for real estate investment. The progressive policies of the state government in pushing for SEZs, an organized workforce, considerable investment from NRIs, and the enterprise of the local population will sustain the upward trend the city is experiencing
The very strong connections of NRI to Ahmedabad, and the Gujarati’s spending power and entrepreneurial skills have encouraged a healthy movement in real estate prices of late.
Though still at a very nascent stage, Ahmedabad is slated for steady growth in the next few years. Residential property ranges between Rs.600 in Ahmedabad North to over Rs.1200 on Ring Road currently. Builders like N.G Developers, Navratna, BGP Builders and Saumya Constructions are catering to the globe-trotting Gujarati with quality residential apartments.
Cashing in on the deep pockets of the local population, major builders have laid out commercial projects for the city to accommodate retail malls and luxury hotels. Niho’s Scottish Mall is coming up on the main Ashram road on 4.5 lakh sq. ft area at a cost of Rs.180 crore. An NRI-funded exhibition-cum-convention centre at Ahmedabad at a cost of $9.2 million will further promote commercial activity in the city.
The State Government’s vision is to develop Ahmedabad into a world-class city through reforms and infrastructure development. Its mission to make the city clean, liveable, productive and self sustaining has translated into the setting up of IT parks in and around Ahmedabad.
DLF has chalked out 30 acres for the city’s IT park, while the road to Gandhinagar will see another IT SEZ project by K.Raheja Corp coming up at a cost of Rs.8,000 million. Three projects have been identified for urban infrastructure development in the city including the Sabarmati riverfront project and integrated public transit system.
With property available at very competitive rates, Ahmedabad is a sound place for real estate investment. The progressive policies of the state government in pushing for SEZs, an organized workforce, considerable investment from NRIs, and the enterprise of the local population will sustain the upward trend the city is experiencing
Saturday, September 25, 2010
India Property Prices, Rents May Fall Up to 30%, Goldman Says
Nov. 19 (Bloomberg) -- Property prices and rents in India may be poised for a ``major correction'' as supply of affordable housing remains limited and office space exceeds demand, according to Goldman Sachs Group Inc.
Prices and rents in some regions could fall as much as 30 percent, Goldman said in a report today. Retailers may find it tough to remain profitable at current rents, the note said.
``We believe affordability is low in the residential market with a lot of supply targeting high income households,'' analysts Vishnu Gopal and Shruti Gandhi wrote in the note. ``We believe the risks of a major correction in property prices and rentals are mounting.''
Sales have dropped as the global financial crisis pushed stocks toward their worst year on record and borrowing costs rose, putting pressure on developers to slash prices. After growing at an average of almost 9 percent over the past four years, expansion in India's $1.2 trillion economy may slow to as little as 7.5 percent, the central bank said last month.
Goldman reiterated its ``cautious stance'' on the industry and maintained its ``sell'' ratings on DLF Ltd., the biggest developer, as well as for Parsvnath Developers Ltd. and Sobha Developers Ltd.
The Realty Index of the Bombay Stock Exchange has dropped 86 percent since Jan 1. DLF has declined 79 percent this year.
Prices and rents in some regions could fall as much as 30 percent, Goldman said in a report today. Retailers may find it tough to remain profitable at current rents, the note said.
``We believe affordability is low in the residential market with a lot of supply targeting high income households,'' analysts Vishnu Gopal and Shruti Gandhi wrote in the note. ``We believe the risks of a major correction in property prices and rentals are mounting.''
Sales have dropped as the global financial crisis pushed stocks toward their worst year on record and borrowing costs rose, putting pressure on developers to slash prices. After growing at an average of almost 9 percent over the past four years, expansion in India's $1.2 trillion economy may slow to as little as 7.5 percent, the central bank said last month.
Goldman reiterated its ``cautious stance'' on the industry and maintained its ``sell'' ratings on DLF Ltd., the biggest developer, as well as for Parsvnath Developers Ltd. and Sobha Developers Ltd.
The Realty Index of the Bombay Stock Exchange has dropped 86 percent since Jan 1. DLF has declined 79 percent this year.
Saturday, September 18, 2010
Tuesday, September 14, 2010
FSI-made-chargeable-in-R1-zones-of-Bopal
AHMEDABAD: The fate of Bopal has been sealed with the state urban development department (UDD) making FSI chargeable in the newly designated R1 zones. The notification would be officially ratified on Monday and officials in Ahmedabad Urban Development Authority (Auda) have already been intimated. Urban minister Nitin Patel also confirmed the new development.
The notification would in fact be a benchmark policy and have an effect on the new development plan maps prepared by Auda for the newly inducted 68 villages. The newly introduced FSI charge' is directly linked to the latest jantri' value of the land on which the property stands.
However, Auda officials have called the fears of developers of an imminent price rise a false alarm'. The new notification will be applicable in town planning-2 (TP2) area, where the density is high and there exists no room for any extra civic services.
Earlier 75 per cent of Bopal, considered to be in R1 zone, had an FSI of 1.8 for high rises while 25 per cent remaining was under R2 zone where FSI was 1.2 for low rises. Developers making high rises in erstwhile R1 zone will now have to purchase 0.6 FSI from Auda for extra floors after the UDD officially brings out the notification on Monday.
"There may be a marginal rise of just 6 per cent against the 25 per cent anticipated by the builders. The FSI charge calculations have taken the price factor into consideration. The UDD has made sure that the interest of buyers is not harmed. The 25 per cent price rise is sheer speculation by builders," says a senior Auda official.
"We had no other option but to pursue for an FSI charge as Auda required at least Rs 217 crore for various developmental works in the area. This is a huge amount and a mere development charge may not have covered for the costs. Bopal will set an example in land economics after the new policy comes into effect on Monday," adds the Auda official.
Another major reason for the UDD to bring out this policy is to control density in the already packed Bopal area, which is almost bursting at the seams.
"More high rises in Bopal mean more people. More people mean more vehicles, large sized ducts, tubes and underground pipes for water and drainage. More vehicles would also require wider roads. But in Bopal land available is minimal. How can you sustain this neighbourhood if you do not control density," asked the Auda official.
Read more: FSI made chargeable in R1 zones of Bopal - The Times of India http://timesofindia.indiatimes.com/city/ahmedabad/FSI-made-chargeable-in-R1-zones-of-Bopal/articleshow/6389231.cms#ixzz0zVunPTxN
The notification would in fact be a benchmark policy and have an effect on the new development plan maps prepared by Auda for the newly inducted 68 villages. The newly introduced FSI charge' is directly linked to the latest jantri' value of the land on which the property stands.
However, Auda officials have called the fears of developers of an imminent price rise a false alarm'. The new notification will be applicable in town planning-2 (TP2) area, where the density is high and there exists no room for any extra civic services.
Earlier 75 per cent of Bopal, considered to be in R1 zone, had an FSI of 1.8 for high rises while 25 per cent remaining was under R2 zone where FSI was 1.2 for low rises. Developers making high rises in erstwhile R1 zone will now have to purchase 0.6 FSI from Auda for extra floors after the UDD officially brings out the notification on Monday.
"There may be a marginal rise of just 6 per cent against the 25 per cent anticipated by the builders. The FSI charge calculations have taken the price factor into consideration. The UDD has made sure that the interest of buyers is not harmed. The 25 per cent price rise is sheer speculation by builders," says a senior Auda official.
"We had no other option but to pursue for an FSI charge as Auda required at least Rs 217 crore for various developmental works in the area. This is a huge amount and a mere development charge may not have covered for the costs. Bopal will set an example in land economics after the new policy comes into effect on Monday," adds the Auda official.
Another major reason for the UDD to bring out this policy is to control density in the already packed Bopal area, which is almost bursting at the seams.
"More high rises in Bopal mean more people. More people mean more vehicles, large sized ducts, tubes and underground pipes for water and drainage. More vehicles would also require wider roads. But in Bopal land available is minimal. How can you sustain this neighbourhood if you do not control density," asked the Auda official.
Read more: FSI made chargeable in R1 zones of Bopal - The Times of India http://timesofindia.indiatimes.com/city/ahmedabad/FSI-made-chargeable-in-R1-zones-of-Bopal/articleshow/6389231.cms#ixzz0zVunPTxN
Saturday, September 11, 2010
Precaution to be taken while buying property
A buyer should exercise utmost caution while buying property in India, be it for residential or commercial interests. Below is a real estate purchase checklist that includes tips for property buyers, discussion under specific categories.
Proximity afforded :- Whether location of property suits to your daily life schedule. Whether property is close to central business district, entertainment centres, hotels, restaurants, transport hubs, hospitals, market, schools, etc.
Quality of Construction :- Whether structural stability of the building, electrical systems, plumbing systems, drainage, sanitary fitting, roof, walls, ceiling, floors, paint work, foundation, doors and windows is sound or not.
Check the title and interest of seller :-
Thoroughly check and satisfy yourself with the marketability of the property title in terms of whether the owner is the original owner and whether the title deed is original. Obtain legal opinion through an Advocate of repute, who can examine the deeds to establish the ownership of the property by the Seller.
Similarly, if you are buying a resale flat, ask for the Purchase Agreement, which is the Agreement between the current seller and the previous owner and get it scrutinized by an Advocate. He/She will identify whether the seller is truly entitled to sell the property, whether any mortgage exists on the property and if it has been paid off and whether there is any lien on the property. Retain a copy of this document and also check the original.
Avoid engaging in negotiations over a disputed property.
Documentation :-
Ask for all the legal documents in original. Check whether a ‘No Encumbrance Certificate’ has been obtained to ensure that no mortgage exists/ has been existing on the property. Get a ‘No Objection Certificate’ from the Builder / Society.
Check for authentic approvals from government agencies like the land development, planning authority. Ask for original documents and certificates.
Get a full and true disclosure of all outgoings such as municipal and other local taxes, taxes on income, water charges, electrical charges etc.
Take a declaration from the seller on what add-on, if any, he is giving along with the property.
Make sure to include every conceivable clause in the Sales Agreement. A Sale Agreement is the only written evidence of the deal so it should-include everything from payment terms to exact description of the title.
Understand the finer details of the sale contract property to arm yourself with knowledge that shall be beneficial during and after the transaction is complete.
Take care that all the duties that are to be paid on the property like Stamp duty, Registration fees and taxes is included in the Sale Deed / Agreement to sell.
Ask for any other information and documents as may be prescribed under the law.
Post registration activities :-
Subsequent to the registration of the Sale Deed, you should:
Verify that all the taxes, statutory payments in respect of the property including power, water charges are paid till date.
Collect deposits receipts given by power and water supply agencies from the Seller. Without delay, apply to the power / water supply authorities to transfer the meters and deposits in your name.
Ensure that the records of the Local Bodies, AUDA or Municipal Corporation is transferred in your name. The original authorization letter of the Seller to be enclosed with the application of transfer.
Get a good idea of the costs of various components like monthly outgoings, costs of utilities. Do research on the mode of payment and the tenure for which you will be liable to pay taxes
Proximity afforded :- Whether location of property suits to your daily life schedule. Whether property is close to central business district, entertainment centres, hotels, restaurants, transport hubs, hospitals, market, schools, etc.
Quality of Construction :- Whether structural stability of the building, electrical systems, plumbing systems, drainage, sanitary fitting, roof, walls, ceiling, floors, paint work, foundation, doors and windows is sound or not.
Check the title and interest of seller :-
Thoroughly check and satisfy yourself with the marketability of the property title in terms of whether the owner is the original owner and whether the title deed is original. Obtain legal opinion through an Advocate of repute, who can examine the deeds to establish the ownership of the property by the Seller.
Similarly, if you are buying a resale flat, ask for the Purchase Agreement, which is the Agreement between the current seller and the previous owner and get it scrutinized by an Advocate. He/She will identify whether the seller is truly entitled to sell the property, whether any mortgage exists on the property and if it has been paid off and whether there is any lien on the property. Retain a copy of this document and also check the original.
Avoid engaging in negotiations over a disputed property.
Documentation :-
Ask for all the legal documents in original. Check whether a ‘No Encumbrance Certificate’ has been obtained to ensure that no mortgage exists/ has been existing on the property. Get a ‘No Objection Certificate’ from the Builder / Society.
Check for authentic approvals from government agencies like the land development, planning authority. Ask for original documents and certificates.
Get a full and true disclosure of all outgoings such as municipal and other local taxes, taxes on income, water charges, electrical charges etc.
Take a declaration from the seller on what add-on, if any, he is giving along with the property.
Make sure to include every conceivable clause in the Sales Agreement. A Sale Agreement is the only written evidence of the deal so it should-include everything from payment terms to exact description of the title.
Understand the finer details of the sale contract property to arm yourself with knowledge that shall be beneficial during and after the transaction is complete.
Take care that all the duties that are to be paid on the property like Stamp duty, Registration fees and taxes is included in the Sale Deed / Agreement to sell.
Ask for any other information and documents as may be prescribed under the law.
Post registration activities :-
Subsequent to the registration of the Sale Deed, you should:
Verify that all the taxes, statutory payments in respect of the property including power, water charges are paid till date.
Collect deposits receipts given by power and water supply agencies from the Seller. Without delay, apply to the power / water supply authorities to transfer the meters and deposits in your name.
Ensure that the records of the Local Bodies, AUDA or Municipal Corporation is transferred in your name. The original authorization letter of the Seller to be enclosed with the application of transfer.
Get a good idea of the costs of various components like monthly outgoings, costs of utilities. Do research on the mode of payment and the tenure for which you will be liable to pay taxes
Subscribe to:
Posts (Atom)