The city is famous for its innovative construction, planned infrastructure, transportation facilities, wide roads, huge shopping malls and commercial complexes. Property prices are also affordable as compared with Delhi and other region of NCR. Hence, the demand of residential apartments is increasing day by day. Noida is emerging with a city of ready to move flats in affordable rates.
Noida offers a wide range of flats that fits almost for every budget. The city reflects an enjoyable living due to lush greenery, shopping complexes, restaurants and proximity to Delhi. Various residential projects are going on with the option of one bedroom to four bedrooms, and price varies as per the location. The city also enjoys a realty growth from Greater Noida where many companies are shaping their headquarters.
Many builders are offering ready to move flats that are close to corporate hubs and shopping malls. Many sectors are offering fully or semi furnished modern housing apartments in reasonable rates. Several societies are proffering high end securities and power backup with modern lifestyle. Most of the projects are surrounded with lavish greenery, lots of open space, magnificent sunlight and ample amount of breeze for healthy lifestyle and clean environment.
The capital and its suburbs have always been country’s one of the robust realty markets in the country. The demand of mid-segment housing has significantly increased. The luxury residential sector has lately witnessed a slight market drop. This has lead to a slump in the economy. Subsequently, buying a home is a distant dream for many buyers.
The residential sector of Delhi NCR is moving towards affordable houses in upcoming locations. It includes residential projects in Noida, Greater Noida and Ghaziabad. The real estate developers are constructing innovative and robust infrastructure in tier 2 and tier 3 cities.
The demand of homes has increased and changed drastically from low-rise plot development to high-rise apartments and complexes. Builders in Noida and Greater Noida have introduced a diverse range of affordable projects that boast prime locations and greenery. These housing societies have been developed with privileges such as sports club, gym, spa, swimming pool, amusement park, gardens, covered parking space and health club.
Mohan Nagar and Noida Extension are becoming a hub for newly launched residential projects. These projects are perfect for those with limited means. This area offers good connectivity by bus and proposed metro stations to Delhi. The residential area is a perfect combination of high end living surrounded by lush greenery.
NEW DELHI: Office space absorption in NCR, the largest office market in the country, is slightly higher at 4.9 million sq ft during January-September period of this year despite economic slowdown in India as well as globally, according to property consultant Knight Frank.
In the first nine months of 2012, office space absorption stood at 4.8 million sq ft.
The NCR (national capital region) office market has remained rock solid amidst economic woes. The fact that office space take-up during the first nine months of 2013 has marginally exceeded that of the same period in 2012 clearly indicates strong fundamentals in the NCR office market.”
Gurgaon remains at the forefront of both new office space and absorption in the market, the consultant noted.
“Considering the current run rate of transactions and the level of pre-commitments, total absorption for the current year is likely to be in the range of 6.3-6.8 million sq ft. This is commendable given the weak global and domestic economic scenario,” the report said.
The consultant projected that the total absorption for the current year would marginally exceed the 2012 level.
“NCR is the largest office market in the country with an operational stock of 118 million sq ft of wh ..
The consultant attributed the upward movement in vacancy due to an additional 20 million sq ft of office space in the year 2010 and 2011.
Knight Frank pointed out that even though there has been remarkable improvement in occupiers’ interest this year, absorption levels still fall short by 20 per cent compared to 2011 when nearly 5.8 million sq ft of space was taken up.
A total of 173 transactions were recorded during January- September 2013 as against 163 transactions during the same period in 2012. The weighted average rental value stood at Rs 53/sq ft compared to Rs 56 in the year-ago period.
Majority of these big transactions took place in Gurgaon, clearly showing a preference for the market. Simultaneously, there was a notable rise in the number of smaller transactions with an area less than 5,000 sq ft due to increasing non-IT transactions.
Nearly 30 per cent of the absorption was contributed by the IT/ITeS sector which accounted for 1.5 million sq ft of office space during the first nine months of 2013, which is a substantial dip of 51 per cent compared with the same per iod in 2011.
On future outlook, Knight Frank said that leasing activity is expected to witness moderate improvement as corporates align their real estate strategies towards consolidation and relocation for cost benefits.
“Rental values are expected to move in narrow ranges as demand remains buoyant and supply is constrained especially in select micro-markets of Gurgaon,” the consultant said.
S.0. 2687(E).— Whereas, certain modifications which the Central Government proposed to make in the Master Plan for Delhi-2021 as mentioned hereunder were published in the Gazette of India, Extraordinary, as Public Notice vide S.0. No. 990(E) dated 18-4-2013 by the Delhi Development Authority in accordance with the provisions of Section 44 of the Delhi Development Act, 1957 (61 of 1957) inviting objections/suggestions as required by sub-section (3) of Section 11-A of the said Act, within forty five days from the date of the said notice.
2. Whereas, objections/suggestions received with regard to the proposed modifications have been considered by a Board of Enquiry and Hearing, set up by Delhi Development Authority and also approved at the meeting of the Delhi Development Authority.
3. Whereas the Central Government has, after carefully considering all aspects of the matter, decided to modify the Master Plan for Delhi-2021.
4. Now, therefore, in exercise of the powers conferred by sub-section (2) of Section II-A of the said Act, the Central Government hereby makes the following modifications in the said Master Plan for Delhi-2021 with effect from the date of publication of this Notification in the Gazette of India.
3. A new Chapter 19.0 Land Policy is added to the MPD 2021 as under:19.0 LAND POLICY
The large scale Land Acquisition, Development and Disposal Policy of Delhiapproved in 1961 is still in operation. However, land acquisition and planned development has not kept pace with the increasing demands of urbanisation during the last five decades. Moreover, the process of acquisition is increasingly challenged by land owners due to low compensation as compared to the market value. Therefore, the new land policy is based on the concept of Land Pooling wherein the land parcels owned by individuals or group of owners are legally consolidated by transfer of ownership rights to the designated Land Pooling Agency, which later transfers the ownership of the part of land back to the land owners for undertaking of development for such areas. The policy is applicable in the proposed urbanisable areas of the Urban Extensions for which Zonal Plans have been approved.
19.1 Guiding Principles
i) Govt. / DDA to act as a facilitator with minimum intervention to facilitate and speed up integrated planned development.
ii) A land owner, or a group of land owners (who have grouped together of their own volition/will for this purpose) or a developer, hereinafter referred to as the “Developer Entity” (DE), shall be permitted to pool land for unified planning, servicing and subdivision / share of the land for development as per prescribed norms and guidelines.
iii) Each landowner to get an equitable return irrespective of land uses assigned to their land in the Zonal Development Plan (ZDP) with minimum displacement.
iv) To ensure speedy development of Master Plan Roads and other essential Physical & Social Infrastructure and Recreational areas.
v) To ensure inclusive development by adequate provision of EWS and other housing as per Shelter Policy of the Master Plan.
19.2 Role of DDA/Government
i) Declaration of areas under land pooling and preparation of Layout Plans and Sector Plans based on the availability of physical infrastructure.
ii) Superimposition of Revenue maps on the approved Zonal plans.
iii) Time bound development of identified land with Master Plan Roads, provision of Physical Infrastructure such as Water Supply, Sewerage and Drainage, provision of Social Infrastructure and Traffic and Transportation Infrastructure including Metro Corridors.
iv) DDA shall be responsible for external development in a time bound manner.
v) Acquisition of left out land pockets in a time bound manner shall only be taken up wherever the persons are not coming forward to participate in developmentthrough land pooling.
19.3 Role of the Developer Entity (DE)
i) Assembly and surrender of land as
per policy in the Prescribed time frame to
be specified in the Regulations.
ii) Preparation of the layout plans/detailed plans as per the Provisions of Master Plan and the Policy.
iii) Demarcate all the roads as per Layout Plan and Sector Plan and get the same verified from the concerned Authority within the assembled area and seek approval of layout plans/detailed plans from the DDA.
iv) a) Develop Sector Roads/Internal Roads/ Infrastructure/Services (including water supply lines, power supply, rain water harvesting, STP, WTP etc. falling in its share of the land.
iv) b) DE shall be allowed creation of infrastructure facilities, roads, parks etc. at city level subject to approval of Competent Authority v) Return of the prescribed built up space/ Dwelling Units for EWS/LIG Housing component to the DDA as per the policy. vi) Timely completion of development and its maintenance with all the neighbourhood level facilities i.e. open spaces, roads and services till the area is handed over to the Municipal Corporation concerned for maintenance. The deficiency charges if any, shall be home by the DE at the time of handing over of the services to the Corporation.
19.4 Land Use Distribution: 19.4.1 The Land Use distribution at the city level for the urbanisable areas in the urban extension adopted for this policy is as under: * Gross Residential: 53% (For every 1000 ha of Land Pooled, the gross residential distribution provides approximately 50,000 DU’s for EWS housing.) * Commercial: 5% * Industrial: 4% * Recreational: 16% * Public & Semi-Public Facilities: 10% * Roads & Circulation: 12% 19.4.2 The Recreational Land Use does not include green areas within the various gross land use categories. 19.4.3The share of city level remunerative land to be retained by DDA shall depend on the categories/size of land pooled under this policy. DDA’s share in Residential Land shall vary between 0-10%, Commercial Land shall vary between 0-2% and entire Industrial Land of 4% shall be retained by DDA.
19.5 Norms for Land Assembly / Land Pooling
The Land pooling Model proposed for land assembly & development with Developer Entities are as follows: i. The two categories of land pooling are Category I for 20 Ha and above and Category II for 2 Ha to less than 20 Ha. ii. The land returned to Developer Entity (DE) in Category I (20 Ha and above) will be 60% and land retained by DDA 40%. iii) The Land returned to Developer Entity (DE) in Category II (2 Ha to less than 20 Ha) will be 48% and land retained by DDA 52%.
iv) The distribution of land returned to DE (60%) in terms of land use in Category I will be 53% Gross residential, 2% City Level Public / Semi-Public and 5% City Level Commercial. The distribution of land returned to DE (48%) in terms of land use in Category II will be 43% as Gross residential, 2% City Level Public/Semi-Public and 3% City Level Commercial.
v) DE shall be returned land within 5km radius of pooled land subject to other planning requirements.
19.6 Development Control Norms:
i) Development Control Norms under the policy are:
a. Residential FAR, 400 for Group Housing to be applicable on net residential land which is exclusive of the 15% FAR reserved for EWS Housing. Net Residential land to be a maximum of 55% of Gross Residential land.
b. FAR for City Level Commercial and City Level PSP to be 250.
c. Maximum Ground Coverage shall be 40%.
d. Density of 15% FAR for EWS population shall be considered over and above the permissible Gross Residential Density of 800-1000 pph.
e. Adequate parking as per norms of 2 ECS/100 sqm of BUA to be provided for Residential development by the DE. However, in case of the housing for EWS, the norms of 0.5 ECS/100 sqm of BUA to be provided.
f. Incentives for Green Building norms as per MPD-2021 to be applicable to Group Housing developed under this policy.
g. Basement below and beyond building line up to setback line may be kept flushed with the ground in case mechanical ventilation is available. In case not prescribed, basement up to 2 mts from plot line shall be permitted.
ii) Sub-division of gross residential areas and provision of facilities (local and city level) shall be as per MPD 2021.
iii) Local level facilities to commensurate with the density specified at 19.6 (i.) (d ) above.
iv) Tradable FAR is allowed for development. However, in case of residential use, tradable FAR can only be transferred to another DE in the same planning Zones having approval/licence of projects more than 20 Ha.
19.7 Other terms and conditions
i) Land Pooling to be permitted as per this policy in the urbanisable areas of entire urban extension for which Zonal Plans have been approved. However, development along TOD corridors in these areas will be as per TOD policy.
ii) In case of fragmented land holdings coming forward for Land Pooling in the same Planning Zone, land shall be returned in the vicinity of the largest land holding within the same zone. If there is any shortfall / variation of land in any zone or category due to site conditions, the DE will be entitled to the entire built up area permissible to him in that category on the land returned, even though the actual land returned to DE may be lesser than due to him.
iii) EWS Housing unit size to be ranging between 32-40 sqm.
iv) 50% of the EWS Housing Stock shall be retained by Developer Entity (DE) and disposed only to the Apartment owners, at market rates, to house Community Service Personnel (CSP) working for the Residents
/ Owners of the Group Housing. These will be developed by DE at the respective Group Housing site / premises or contiguous site.
v) Remaining 50% of DUs developed by DE to be sold to DOA for EWS housing purpose will be sold to DOA / Local Bodies at base cost of Rs. 2000/- per sq. ft. as per CPWD index of 2013 (plus cost of EWS parking) which shall be enhanced as per CPWD escalation index at the time of actual handing over and can be developed by DE at an alternate nearby site. Necessary commercial and PSP facilities shall also be provided by the DE for this separate housing pocket.
vi) The EWS housing component created by the DE shall be subject to quality assurance checks, as prescribed in this regard by Govt./DDA. The final handing/taking over of this component shall be subject to fulfiling the quality assurance requirements.
vii) The DE shall be allowed to undertake actual transfer/transaction of saleable component under its share/ownership to the prospective buyers only after the prescribed land and EWS housing component is handed over to the DOA.
viii) External Development Charges and any other development charges incurred for the city infrastructure shall be payable by the DE on actual cost incurred by DDA.
19.8 Framework for Implementation of the Policy
i) The detailed Regulations for operationalisation of the Land Pooling Policy including process and timeframe for participation shall be framed separately in a time bound manner. In order to make the Policy people friendly and transparent the detailed Regulations shall be put up in Public domain for inviting views of the stakeholders giving 30 days time in the newspapers and website since it involves development through participation.
ii) Creation of a dedicated Unit in DOA for dealing with approvals of Land Pooling applications. The option of outsourcing of the scrutiny for legality of applications and online submission of building plans to experts may also be considered.
Notification of the Land-pooling policy as published in the Gazette of India on September 5, 2013
NEW DELHI: The richer middle class too is feeling the impact of the slowdown and isn’t buying homes like before, badly impacting sales of luxury homes.
In Mumbai, sales of luxury homes – anything above Rs 5 crore – in the last three quarters have dropped 35% while Gurgaon has witnessed a 40% drop in sales of apartments above Rs 3 crore. In Bangalore, sales are down at least 20% in the Rs 2.5 crore and above segment, says real estateresearch firm Liases Foras.
“When the economy is down and spending is cut, this is the segment that’s hit first,” says Lalit Kumar Jain, chairman of the Confederation of Real Estate Developers Associations of India.
Property brokers and advisory firms say home sales in this segment have tapered in the last few months. “It’s now getting increasingly difficult to sell luxury homes across major markets like Gurgaon, Mumbai and Bangalore,” says Mudassir Zaidi, regional director for global property consultant Knight Frank.
Many businessmen, who usually invest their surplus funds in real estate, have seen their cash flows getting tightened because of a slowing economy and the rupee touching 60. “These buyers, who made a majority of buyers in the city, are today out of the market. In fact, even end-users in this segment are today sitting on the fence,” says Abhay Khemka of KhemkaInvestments & Properties, a realty brokerage firm in Gurgaon.
Areas like Golf Course Road Extension and the Gurgaon-Faridabad Road have seen a number of luxury projects being launched in the past year. “It is now taking longer to sell apartments here,” says Khemka.
In Gurgaon, many investors who are stuck with apartments they bought earlier are no longer buying fresh ones.
There are some investors who are offering discounts of up to 20% to sell their apartments in under-construction projects compared to what a developer is offering in the same project. On the Golf Course Road Extension, for instance, an investor is selling an apartment for Rs 3.5 crore while the developer is selling a similar apartment in the same project for Rs 4.5 crore.
Prices of apartments in the luxury segment have risen too much in Mumbai, says Pankaj Kapoor, managing director of Liases Foras.
“Luxury housing is driven by increase in prices and developers launched projects in recent months without realising that the market for this segment of apartments is very small,” he says.
In Mumbai, areas like Mahalaxmi, Lower Parel, Worli, Lokhandwala, Juhu and Bandra saw a number of such projects being launched. While the supply of homes in this segment in Mumbai has increased by over 30% in the past year, sales have dropped because of a slowing economy and high prices, says Kapoor.
Bangalore is another market where supply has overtaken demand when it comes to the luxury-housing segment. According to Liases Foras, Bangalore has seen supply in this segment increase by 35% in the last three quarters, and this along with high prices and a slowdown in the IT sector has brought down sales. A number of luxury projects have been launched in areas like Bellary Road, Devanhalli, Outer Ring Road, Doddaballapur in north Bangalore and Whitefield.
Bangalore-based developer Puravankara group, for instance, has all approvals in place for a luxury housing project in Bangalore where apartments would be in the Rs 2.5 crore and above range, but the company has decided not to launch the project, for now.
“We have consciously taken a call to launch at a more suitable time as we see a supply-demand mismatch in this segment currently,” says Jack Bastian Nazareth, group chief executive officer at Puravankara group.
Brokers in Bangalore say local demand for apartments in this segment has dropped in recent times.
Source : economictimes.indiatimes.com
Saviour Builders and New Way Homes have joined hands and have come up with a new residential project at Greater Noida(West). It is spread over an area of 10 acres amid 1500 flats and is a house hunter’s paradise. The renowned architect, Hafeez Contractor has bared its splendid imaginations to bestow the remarkable gaze and experience. The entire project is eco-friendly, fastened by 130*45 m green belt around to witness the whiff of fresh wind in close proximity. Each house is furnished with the finest amenities and offers panoramic views of the surrounding. Only 20% of the total land would be used for construction leaving the rest for greenery.
A world class construction with modern techniques and eco friendly environment shall enhance the efficiency of the entire project. Keeping affordability and requisite in mind, the group has planned and offered flats with various sizes starting from 2 BHK + Study (1325 sq ft), 3 BHK (1630 sq ft), 3 BHK + Study (1890 sq ft).
Property market of the National Capital Region (NCR) saw 39 per cent fall in the new launches of apartments to about 7,600 units during January-March period compared with the previous quarter, global realty consultant Cushman & Wakefield said on Monday.
In the top eight cities of the country, Cushman & Wakefield (C&W) said that an estimated 38,000 residential units were launched in the first quarter of 2013, registering a marginal fall of about 2 per cent over the previous quarter.
These major eight cities are – NCR, Chennai, Kolkata, Bengluru, Mumbai, Hyderabad, Pune and Ahmedabad.
NCR witnessed the launch of approximately 7,600 units, a decline of 39 per cent compared to the previous quarter, C&W said in a statement.
The new launches were concentrated in the suburban locations of Gurgaon (66 per cent) and Noida (34 per cent) with over 80 per cent of units catering to the mid-range segment.
Due to the subdued demand, Noida witnessed a steep decline in new launches at close to 70 per cent and ended up being the primary contributor for the overall decline in number of launches in the NCR, the consultant said.
Chennai, Mumbai, Hyderabad and Ahmedabad also witnessed decline in new launches of residential units by 39 per cent, 3 per cent, 89 per cent and 62 per cent, respectively.
New residential units launched more than doubled in Bengluru and Pune in the last quarter, increasing by 144 percent and 109 per cent, respectively, C&W said. Kolkata saw a modest 3 per cent increase.
On prices, the report said that most locations in Delhi witnessed stable capital values in both mid and high-end segments. However, capital values in high-end segment in South Central Delhi witnessed 15 per cent appreciation over last year due to limited supply and high demand.
Among the suburban locations, Gurgaon saw higher appreciation due to the high demand from both end-users, the workforce working in the various companies located here and investors, coupled with the limited project completions.
Gurgaon (NCR) saw a change in the capital values in the luxury/high-end and mid-end residential segment at 29 per cent and 18 per cent, respectively, over last year, C&W said.
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With the three development authorities of Noida, Greater Noida and Yamuna Expressway having revised their land prices, the dream to build or buy a house of one’s own has become costlier. These authorities have raised the land prices by up to 40% of their current rates.
The Greater Noida Industrial Development Authority (GNIDA) has prepared a new formula for land procurement under which it can directly purchase land from the farmers. GNIDA has sent this policy to the Uttar Pradesh state government for its approval.
Under the new policy, landowners or farmers will have two options: either they directly sell their land to GNIDA or go through the provisions of Section 4/17 or Section 6/17 of the land acquisition policy. For direct land purchase, farmers or landowners will get an additional 20% of the declared compensation (Rs 1,512 per sq metres) as a no-litigation bonus. In addition, they will also benefit from the rehabilitation policy.
GNIDA has already raised by 45% its existing budget for infrastructural development and social services, which now stands at Rs 7,005 crore in the financial year 2013-14. GNIDA and the Yamuna Expressway authority have also increased the compensation rate by 15% to be offered to farmers for acquisitions, besides providing a host of other benefits to them.
New Noida Metro Rail Corporation
The Noida authority has announced the setting up of the Noida Metro Rail Corporation (NMRC) as a special purpose vehicle to facilitate the construction of a proposed Metro line between Noida and Greater Noida.
The Metro line, first mentioned in January, will be constructed without DMRC’s help, and is an initiative of the Noida and Greater Noida authorities.
Rama Raman, the chairman and chief executive officer of GNIDA, says: “The NMRC will see an initial investment of Rs 1,000 crore. In an earlier board meeting held in January, a 29km-long Metro line was announced between Noida and Greater Noida, at an estimated cost of Rs 5,064 crore. To facilitate this, the Noida and Greater Noida authorities have begun the process of setting up a special purpose vehicle, the NMRC, which will see an investment of Rs 1,000 crore.
We will soon approach the registrar of companies, Uttar Pradesh, for clearance and work on the NMRC will begin soon. The board passed an MOU with regard to the extension of the DMRC line between Botanical Garden and Kalindi Kunj. The 3.96km line is to be built at a cost of Rs 845 crore. We have already passed the MoU from our end and will seek the clearance from the UP government. After that, the proposal will go to the Union urban development ministry for final clearance.” Around 22 stations have been proposed to be built on this Metro line, which will run along Noida-Greater Noida Expressway.
The line will between City Center, Sector 32 and Depot Station (Bodaki). The proposed stations on the route will include Sector 51, Sector 50, Sector 78, Sector 101, Sector 81, Dadri Road, Sector 83, Sector 137, 142, Sector 143, Sector 144, Sector 147, Sector 153, Sector 149, Noida and Knowledge Park 2, Knowledge Park (future), Pari Chowk, Alpha 1 Alpha 2, Delta 1 (future), Knowledge Park 4, and Depot Station at Bodaki, Greater Noida.
The authorities estimate that nearly 65,000 passengers will use the Metro every day. The proposal to extend the City Center Metro line by 6.67km to Sector 62, touching NH-24 has also been approved. The DPR for this much-delayed project has been forwarded to the UP government. In addition, the Noida-Greater Noida authorities have also decided to go ahead with civil work on the Metro link between Noida and Greater Noida West (Noida Extension).
FAR to be increased
Rama Raman says: “The total cost of the extension of the existing Metro track comes to around Rs 6,000 crore. The authorities will raise the funds through real estate development. The authorities will increase floor area ration (FAR) from existing 2.75 to 3.5 in certain areas. For this, the authorities will develop special corridors along Noida-Greater Noida Expressway. The FAR would be sold in group-housing projects dotting the expressway. The Noida authority has announced an increase in FAR allowed for land within 500 metres of the Metro corridor along the Noida-Greater Noida Expressway. The authority will increase the FAR by 0.5 for building within 500 metres of the Metro line.”
Rakesh Yadav, the managing director of Antriksh Group, says: “This will increase the value of land near the Metro line. The increased revenue will aid development work including that of the proposed Metro lines along Noida-Greater Noida Expressway.”
Land price goes up
In Noida, the allotment rates of group housing, residential and institutional properties have been raised by 15%, commercial and industrial land rates have gone up by 30% and 11.25%. In Greater Noida, the allotment rate for land across all categories, except industrial, has been uniformly revised by 8.53%. The Yamuna Expressway area has also seen a raise in allotment rates of all categories of land by about 15%. The allotment rate for industrial properties remains the same as last year.
In July 2012, the development authorities had raised the rates between 7.5% and 40%. The raise is especially important for the GNIDA, which is reeling under a major cash crunch.
“The increase in rates was essential considering our current funds shortage. The land row in Greater Noida West also imposed an extra burden on the authority in the form of enhanced compensation and rehabilitation packages for the farmers. Besides, many development projects have remained stalled for months,” Raman said.
According to the new allotment rate, residential properties in Noida have been revised by at least Rs 8,115 per sq metre in A Category sectors like 14,14A, 15A, 17, and 44 and by Rs 2,950 per sq metre in E Category sectors like 102, 115, and 158. Grouphousing flats in Noida have are costlier by almost Rs 11,065 per sq metre in A category areas and by Rs 4,180 per sq metre in E category zones. In the institutional category for IT/ITeS properties, Noida buyers will have to shell out Rs 33,940 per sq metre now. For plots in Phase I and III industrial areas of Noida, the allotment rates are Rs 20,990 and Rs 7,740 per sq metre.
Now residential flats in Greater Noida will be costlier by almost Rs 1,592 per sq metre while for commercial space, an extra Rs 3,155 per sq metre will be charged. The new allotment rates in Yamuna Expressway Industrial Development Authority (YEA) have also been increased between 14% and 18%.
Impact of increased price on realty market
R K Arora, chairman and managing director of Supertech Limited, says: “Undoubtedly, it’s a steep raise and going to affect the buyers and investors who were looking at this booming region as a reasonable and affordable zone. It can be detrimental to real estate business. The fast developing zones like Noida, Greater Noida and Yamuna Expressway are known as prime and ideal location for affordable range houses. Now it is no longer the same due to the rise by 8.53-30% in allotment prices across all categories of land.
The burden will fall on the customers and they need to pay more now.”
“The increase in the allotment rate is a bit too much as a marginal increase could have been a better idea. Though the present buyers need not worry about the increase in prices, in new projects there can be an increase in prices. Buyers would be affected by the increase in prices. People who have been buying smaller plots of 100, 200, 300, and 500 sq metres will now be more interested in group-housing projects due to the increase in prices,” Ashok Gupta, managing director of Ajnara India Ltd, said.
Deepak Kapoor, director of Gulshan Homz, said: “The increase has become a periodic feature which happens every year. The effect is yet to be calculated but it’s certain that future projects will become costlier. The main issue to be looked into is the feasibility of affordable housing, which looks diminishing. With such increase in land rates every year, affordable housing will become a distant dream.”
Source: MagicBricks.Com, June 3, 2013
UP UNTIL a few years ago, malls meant big international labels and bigger departmental stores.
Traditional retail brands, or powerful local brands as they’re called now, were conspicuous by their absence. Even if they were present, they would mostly be tucked in some corner, away from vantage viewpoints.
Cut to the present. Walk into any new mall that’s come up in the last few months, the first thing that strikes you is the overwhelming presence of those powerful local brands.
Nallis, RmKV, Pothys, Vama, Malabar Gold and Joy Alukkas -they’re all here now, becoming the early occupiers of the new-look mall set-up.
What has led to this change? A combination of factors, it seems. A change in the mindset of traditional retail brands as well as that of the mall developers is the main reason. Also, the general economic slowdown that has not only restricted people’s spending, but also limited the expansion scope of established national and international retail brands that accounted for a bulk of the occupancy at malls earlier. This had even led to some talk in the industry about “ghost malls“, with little footfalls and even less conversion into sales. Some even went to the extent of saying, “some malls have become disasters and not many developers are keen to consider such projects as part of their future plans“.
But Shubhranshu Pani, managing director (retail) at Jones Lang LaSalle India brushes aside such views. “For a mall to succeed, it has to attract an average footfall of 8,00010,000 people a day on weekdays and 25,00030,000 a day on weekends. Of the around 250 operational malls in the country, around 125130 are operating at above these benchmark levels,“ he says. “Of course, due to various factors, some malls are doing well and some not,“ he adds.
S Raghunandan, CEO (retail) of the Prestige Group, a realty developer in the forefront of promoting the Forum brand of malls, highlights five key factors that make a mall succeed. “If a mall is located right, planned right, zoned right, leased right and managed right, it will succeed,“ is his simple mantra.
“If a mall is attracting high footfall, but still not doing well, then there is something fundamentally wrong in its product mix,“ says Rajesh Babu, director, RECS Group, a Chennai-based property advisory firm.
“Some malls may have the best of national and international brands of which only a handful of people are aware, obviously it won’t do well. One needs to have a fair mix of local brands that have a strong brand recall value interspersed with global names. Since there is a general perception that malls are for high priced shopping, accommodating popular local brands enables walk-in customers to loosen their purse strings,“ he points out.
Which is exactly what is happening in the present scenario now. But the transformation has not been easy to come by. “We at JLL have been trying to get traditional retail brands to come into malls for the last five to seven years. Somehow they were not convinced about the viability of it all. But finally, they are opening up to malls in a big way,“ says Pani.
There are a few reasons behind the retailers’ initial reluctance. Most of them operated from self-owned properties and had their own way of keeping the operational costs lower. They had developed their own business model, and for them, lease rentals and high operational costs for just a presence in the malls were simply not a viable option. They were also skeptical of the newage mall concept of revenue sharing. “We know our business. You tell us the commercials. If it matches our thoughts, we will come,“ was the approach that most retailers adopted.
“Yes, there are higher operational costs when doing business in a mall. But there are positives as well. Better infrastructure and parking facilities are enabling people to look at malls rather than the old city streets beset with traffic woes and parking hassles,“ says Sanjay Chugh, founder, Skylines, a Chennai based property advisory. “Moreover, thanks to the multiplexes and food courts, combining shopping with movie-watching and eating out is turning the malls into occasions for family outings,“ he adds Incidentally, there’s also a flipside to the story. If traditional retailers have been reluctant to enter malls, some mall developers too have not been very welcoming to some retail brands. For instance, when owners of a retail brand in Chennai approached the management of an upcoming mall to set up shop there, they were summarily turned away.
Later, property consultants had to step in and explain at length the advantages that the retailer could bring in and the increasing footfalls it could generate during wedding and festival seasons. When the retailer finally opened shop at the mall, its advertising blitzkrieg benefited the mall in a big way.
Another reason why mall developers initially turned away local retailers was the slew of conditions that international brands put forth when signing up for space in a mall. This prevented the locals from co-existing with globals. But JLL ‘s Pani brings in a touch of clarity.
“The international brands do not prevent others. They prefer like-minded brands to be present near them,“ he says. A Levis may prefer a Pepe Jeans to be its competitor, rather brushing space with a local menswear shop. But in most cases, it used to be the mall developer who understood it wrong and ended up avoiding local popular brands, Pani adds.
“Now, mall developers understand the power of traditional retail brands. They are aware that a Pothys or RmKV or Nalli’s will bring the traditional crowd, the festival crowd and the wedding crowd. Further, the mall developers also know that these brands are so powerful, that if they put up a standalone store in that part of the city, people will go running there,“ observes Pani.
“We strongly believe in the power of local retailers. We will get the best into our malls, whichever city we enter,“ says Raghunandan. RmKV has opened its largest store, spread over 30,000 sq ft across three levels in the Forum Vijaya Mall that recently opened up in Chennai. The garment retailer has already established a presence in Phoenix Mall, also recently opened up in Chennai, besides malls in Coimbatore and Bangalore.
Gold jewellery retailers are another segment that have taken to malls increasingly over the last couple of years. Malabar Gold and Diamonds has tied up with Phoenix group to open stores in its upcoming malls in Chennai, Mumbai, Bangalore and Pune.
M P Ahmed, the jewellery company’s chairman, believes that malls are the future of shopping in India. “The developed world has already moved to shopping malls. With parking constraints and the hot and humid weather, malls are the only answer,“ he says.
Not everyone is as gung ho. Joyalukkas, on the other hand, is still apprehensive. “Malls have not yet evolved to do serious business and it is still not attracting serious buyers.
Food, films, apparel brands and accessories will always do well in malls, but not gold jewellery. You may have lot of footfalls and it is a good brand-building exercise, but the conversions, especially in gold, will be very less,“ says Joy Alukka, chairman of Joyalukkas.
While the brand has a diamond boutique in Lulu Hypermarket in Kochi, all its 12 mall stores in West Asia have been closed down.
“Many jewellery stores are vacating malls in Dubai and other cities because of unsatisfactory sales. I believe customers still prefer the traditional old shops to make gold purchases,“ he says.
Prestige Group’s Raghunandan sums it up neatly: “Traditional retailers and modern retail infrastructure will have to learn to merge and come together. That is in the interest of both the buyer and the seller. We make money when the retailers make money. The reason why we have never faced emptiness in our malls is because we have always been very retailer-focused.“