Prospective buyers flocked in numbers on the last day of the property show organized by Gujarat Institute of Housing and Estate Developers (GIHED). The event that was organized to showcase the new and upcoming property schemes has brought the oblivious smile on the developers and those concerned with the real estate industry.
Sunday, the last day of the event, registered almost around two Lakhs property enthusiasts from all walks of life that included IT professionals, government employees, businessmen and some foreigners also. Though many visitors came to gain a know how of the existing rates and offers in the affordable housing schemes there were plenty of prospective buyers also who showed genuine interest in buying the property and in fact, visited the sites also so as to gain a comprehensive knowledge of their investment prospects.
The purpose being different, the gist was synonymous-aplenty of visitors wanted to relish the current slashed price along with the freebies that the developers promised. Some wanted the house for residing while some felt that buying the houses at the existing price structure was an alluring investment proposition. There were sizeable enquiries for the commercial plots also and for the plots in the proximity of city or in the outskirts which was being seen as a long term investment options by many.
The event has brought relief to a waning real estate industry which was till recently, fighting with the cash drought and plummeting demands. And this relief was evident on the glittering faces of realtors at University Convention Centre on Sunday.
Wednesday, August 19, 2009
Will 1% Subsidy on Home Loans given by the Govt of India benefit Individuals?
Even after working day and night at office for many years if an individual is not able to buy his dream home then it shows either he has failed in his attempt or the government of India has failed to take up its responsibility to help its citizens in buying their dream homes. The recent announcement made by Pranab Mukherjee that the government of India would give 1 per cent subsidy on home loan interest rates for the first year has dawn many complaints. This plan is valid only for home loans which cost between Rs. 10 lakh and Rs. 20 lakh.
This home loan subsidy scheme attracts individuals belonging to the lower and mid-income groups. Moreover, this scheme will hardly be accessed by the working people in tier I cities: Delhi, Mumbai and Bangalore. The reason is that houses costing within the range of Rs. 10 lakh-20 lakh are not available in such renowned metropolitan cities.
Property critics are even commenting that even it is quite difficult to buy homes with this piece tag in tier II cities like Jaipur, Indore, Pune, Hyderabad and Chennai. Rs. 20 lakh house unit is only available in tier III cities and smaller towns. In most of the metropolitan cities the realty companies only develop luxury apartments which are focused on the individuals with higher annual income. Talking on the announcement made by the Govt of India it does not seem that it will solve the housing problems faced by a majority of Indians.
This home loan subsidy scheme attracts individuals belonging to the lower and mid-income groups. Moreover, this scheme will hardly be accessed by the working people in tier I cities: Delhi, Mumbai and Bangalore. The reason is that houses costing within the range of Rs. 10 lakh-20 lakh are not available in such renowned metropolitan cities.
Property critics are even commenting that even it is quite difficult to buy homes with this piece tag in tier II cities like Jaipur, Indore, Pune, Hyderabad and Chennai. Rs. 20 lakh house unit is only available in tier III cities and smaller towns. In most of the metropolitan cities the realty companies only develop luxury apartments which are focused on the individuals with higher annual income. Talking on the announcement made by the Govt of India it does not seem that it will solve the housing problems faced by a majority of Indians.
They did it when everybody said it was impossible…Yes Tatas, after lots of odds, produced the Rs.1 lakh car, Nano and the first Nano will be presented today to the owner by Mr. Ratan Tata. Boosted by the huge response to the Nano, the Tatas have decided to dole out cheap dwelling units to the lower middle class of India.
Coined as Shubh Griha, the housing unit will be priced between Rs. 3.9 and Rs. 6.7 Lakhs. The project will be handled by the Tata Housing Development Company, the property development wing of the company. The first township is slated to be developed in the Mumbai suburb Boisar in Thane district. The company will then launch several projects under the same scheme at various metros, tier II and tier III cities.
After doling out cheap transportation in the guise of Nano which has created ripples in the market, the company strongly feels that cheap dwelling units will have the same effect and will contribute to the company’s philosophy of an inclusive business for all the strata ( low and mid level income group) of the society. According to Brotin Banerjee, MD of Tata Housing, there is a huge deficiency at the base level of the pyramid in the housing sector. And his proposition is well supported by the statistics that place a deficiency of 24.7 million dwelling units.
The allotments will follow the same pattern which has been employed in the allotment of Nano. The 1000 housing unit at Boisar’s proposed township will be allotted through the lottery system. The Shubh Griha’s, as they are called, will range from 283 to 465 Sq. ft. and will comprise of one bedroom-kitchen flats.
The company has tied with SBI and HDFC to help the buyers with loaning facilities and the application form will be sold at Rs 200 with the booking amount placed at Rs. 10,000. The company expects to raise an amount in the range of Rs. 100 crores.
Coined as Shubh Griha, the housing unit will be priced between Rs. 3.9 and Rs. 6.7 Lakhs. The project will be handled by the Tata Housing Development Company, the property development wing of the company. The first township is slated to be developed in the Mumbai suburb Boisar in Thane district. The company will then launch several projects under the same scheme at various metros, tier II and tier III cities.
After doling out cheap transportation in the guise of Nano which has created ripples in the market, the company strongly feels that cheap dwelling units will have the same effect and will contribute to the company’s philosophy of an inclusive business for all the strata ( low and mid level income group) of the society. According to Brotin Banerjee, MD of Tata Housing, there is a huge deficiency at the base level of the pyramid in the housing sector. And his proposition is well supported by the statistics that place a deficiency of 24.7 million dwelling units.
The allotments will follow the same pattern which has been employed in the allotment of Nano. The 1000 housing unit at Boisar’s proposed township will be allotted through the lottery system. The Shubh Griha’s, as they are called, will range from 283 to 465 Sq. ft. and will comprise of one bedroom-kitchen flats.
The company has tied with SBI and HDFC to help the buyers with loaning facilities and the application form will be sold at Rs 200 with the booking amount placed at Rs. 10,000. The company expects to raise an amount in the range of Rs. 100 crores.
When a realty company runs out of money or needs sufficient amount of money then it has to gather money by selling some of its assets. The same step has been chosen by DLF while accumulating Rs 1,000 by selling its land in some major cities in India. It is reported that the company sold lands in cities like Mumbai, Gangtok and NCR. In addition, sources have told that the company has also sold off a hotel project in Delhi as well as another project in Gangtok.
It is not that DLF is the only Indian realty company which is trying hard to make the cash ready, there are other companies which have tighten their belts to sell off their assets in various locations in India for clearing off their heap of debts. Unitech, a rival of DLF has also sold its hotel in Gurgaon and a hotel in Saket in the last few months. Of course, the recession has been a great hit for Indian property market and the crunch of money has forced many reputed realty developers to sell off their lands at a range of lower price.
It is not that DLF is the only Indian realty company which is trying hard to make the cash ready, there are other companies which have tighten their belts to sell off their assets in various locations in India for clearing off their heap of debts. Unitech, a rival of DLF has also sold its hotel in Gurgaon and a hotel in Saket in the last few months. Of course, the recession has been a great hit for Indian property market and the crunch of money has forced many reputed realty developers to sell off their lands at a range of lower price.
The Indian property market is passing through a turbulence time. The recession has been a great threat. A recent study by Crisil Research reported that Indian home prices will endure a 10% downfall in the 2nd half of 2009. This news is making the faces of many realty developers shrunken but anyways it has to be overcome with a great challenge.
The report submitted by Crisil Research also highlighted that Faridabad in the National Capital Region, Derabassi and Zirakpur in Mohali, High Tech City in Hyderabad and Rajiv Gandhi Salai in Chennai would go through another downfall because of the excessive supply of residential properties.
Most of the home buyers in India are adopting the ‘wait and watch policy’ which is leading to a sheer deficient of liquidity in the property market. However, there are many property developers who are passing arguments that they do not agree with all the points forwarded by Crisil. They are saying in unison that the home prices would not go another downfall as these are already at the most bottom line. A Bangalore-based developer, Ravi Ramu, director of Puravankara Projects stated that he would not even think to make the prices thinner in the undergoing projects.
The report submitted by Crisil Research also highlighted that Faridabad in the National Capital Region, Derabassi and Zirakpur in Mohali, High Tech City in Hyderabad and Rajiv Gandhi Salai in Chennai would go through another downfall because of the excessive supply of residential properties.
Most of the home buyers in India are adopting the ‘wait and watch policy’ which is leading to a sheer deficient of liquidity in the property market. However, there are many property developers who are passing arguments that they do not agree with all the points forwarded by Crisil. They are saying in unison that the home prices would not go another downfall as these are already at the most bottom line. A Bangalore-based developer, Ravi Ramu, director of Puravankara Projects stated that he would not even think to make the prices thinner in the undergoing projects.
The hot air blow of the global recession had almost shaken the whole Indian realty market for quite a long time. Finally the Indian realty market seems to take a deep sigh of relief. Recently it was announced that soon big malls will be constructed in various parts of India. Out of all the metropolitan cities, Delhi NCR is the primary location for property developers. Prior to the recession the realty companies had prepared blueprints for erecting huge malls in India but they had to stop for a while due lack of funding.
Images, retail research group in association with the Shopping Centre Association of India, Jones Lang LaSalle Meghraj and Cushman & Wakefield India has revealed through its recent report, Mall Realities India 2010 that 31, 846, 504 sq ft will be allocated for mall space across India. Out of all the zones the north zone is allocated with 14, 790, 000 sq ft. It is reported that Delhi NCR will be given 7, 645 000 sq ft for the construction of high end malls.
The group executive director of New Delhi Delhi-based real estate firm DLF, Rajeev Talwar recently told that the NCR region is a big market for realty developers as this region is packed with numerous residential areas which attractive the mall culture. As more people live in the residential areas they look out for leisure centres which cannot be other than malls. Malls give all kinds of facilities like cinema halls, restaurants, beauty parlours and other entertainment means. Hence it’s time to keep recession in the shelves and better concentrate on the new things which are on the way.
Images, retail research group in association with the Shopping Centre Association of India, Jones Lang LaSalle Meghraj and Cushman & Wakefield India has revealed through its recent report, Mall Realities India 2010 that 31, 846, 504 sq ft will be allocated for mall space across India. Out of all the zones the north zone is allocated with 14, 790, 000 sq ft. It is reported that Delhi NCR will be given 7, 645 000 sq ft for the construction of high end malls.
The group executive director of New Delhi Delhi-based real estate firm DLF, Rajeev Talwar recently told that the NCR region is a big market for realty developers as this region is packed with numerous residential areas which attractive the mall culture. As more people live in the residential areas they look out for leisure centres which cannot be other than malls. Malls give all kinds of facilities like cinema halls, restaurants, beauty parlours and other entertainment means. Hence it’s time to keep recession in the shelves and better concentrate on the new things which are on the way.
The Indian property market has felt a big hit for almost 12 months. However, the present scenario shows us a few positive signs that the property market is breathing some fresh air. In the recent times two housing projects were launched in Delhi and NCR region. Quite surprisingly it received great response from the enthusiastic property buyers.
As per given data Jaypee Greens had received a booking of 3300 flats for its newly launched project called ‘Aman’ which is on Noida-Greater Noida expressway. These bookings were recorded on the first day of its new project. This boost has come into limelight because of the reduced property rates which are alluring middle class customers.
BPTP’s project Park Elite in Faridabad also had a grand sale because it had sold around 1000 independent floors. Specifically BPTP’s 3700 bookings were accounted for worth Rs. 80 crore for this state-of-the-art project.
The CEO of operations at JLLM Santosh Kumar told that the contemporary property prices are genuine which are helping realty developers to make a profit up to 25-40 per cent. In addition, the government of India is also endowing its full support for infrastructure and it’s a neon flash that the interest rates may witness further meltdown.
As per given data Jaypee Greens had received a booking of 3300 flats for its newly launched project called ‘Aman’ which is on Noida-Greater Noida expressway. These bookings were recorded on the first day of its new project. This boost has come into limelight because of the reduced property rates which are alluring middle class customers.
BPTP’s project Park Elite in Faridabad also had a grand sale because it had sold around 1000 independent floors. Specifically BPTP’s 3700 bookings were accounted for worth Rs. 80 crore for this state-of-the-art project.
The CEO of operations at JLLM Santosh Kumar told that the contemporary property prices are genuine which are helping realty developers to make a profit up to 25-40 per cent. In addition, the government of India is also endowing its full support for infrastructure and it’s a neon flash that the interest rates may witness further meltdown.
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