Godrej Properties enters Noida, ties up with Lotus Greens

NEW DELHI: Godrej Properties has signed a development management agreement with NCR-based builder Lotus Greens to build a housing project on 36 acre land parcel in sector 150 of Noida. This is its first foray into the Noida market. 

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This plot of land is part of the 300 acre sports township that builder Lotus Greens had acquired in late 2014 with the backing of private equity funds Clearwater Capital and SSG Capital Management. The two funds had put in Rs 450 crore together to help the builder make the first tranche of the payment for the land to Noida Authority. The total value pof the land is around Rs 2,500 crore. 

"We have seen strong growth in the scale of our operations in NCR and look forward to building on this momentum through our entry into Noida, which is one of the country's leading real estate markets," said Pirojsha Godrej, managing director and chief executive officer of Godrej Properties. 

The project in Noida by Godrej Properties will have around 4 million sq ft of saleable area. 

While this is Godrej Properties' first project in Noida, it is its sixth in the National Capital Region (NCR). It has four projects through joint ventures with land owners in Gurgaon and one in Delhi that it had signed in 2013 with Southend Infrastructure for a five-acre group housing project in Okhla. 

Source - ET
 

Why housing prices have dipped on Noida Expressway

Radiating out from Delhi into the National Capital Region are two expressways. The one in the east runs 22 km through Noida and Greater Noida. The other in the south stretches for 18 km between Dwarka and Kherki Daula. On either side of both these expressways are vast expanses that have been opened up for development by realtors. 

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While the southern dream has been soured by the inability of the authorities to provide basic amenities like water and sewage in the proposed residential zones, the eastern hub enjoys excellent infra structure, but completion of housing projects there has been hampered by unforeseen reasons. 

Along the Noida Expressway that links the capital to Greater Noida — and from there via Yamuna Expressway to Agra — the authorities acquired huge tracts from farmers and auctioned them to realty companies after putting into place reliable water, sewage, electricity and road systems. The delays in implementing the housing projects there are, therefore, clearly due to the failure of realtors to raise finances as well as legal and other hurdles. 

The Unitech project called Grande was launched in 2007 across 350 acres. After eight years, it is yet to be completed.Launched at a premium pricing of Rs 7,000 per sq ft, the houses were to be built around an 18-hole golf course. But paucity of funds has slowed down the construction. As for the golf course, all that Unitech has come up with is a sorrier 9-hole course.

 While funds are a problem for real estate companies, they are ironically unable to collect more money because the incomplete projects have led to a fall in prices. At Jaypee's 800-acre Wish Town, for instance, where construction started in 2008, prices have remained stagnant in the Rs 4,000-10,000 range. 

Jaypee launched around 35,000 housing units along with a hospital, school and two golf courses -one 18-hole and the other a 9-hole one. The golf courses are ready and the group has started giving possession. A company spokesperson claimed by February 2016, around 5,400 buyers will get possession and by December, another 7,000 apartments will be handed over. He said the Wish Town project will be completed by 2018.

Similarly, the projects undertaken by 3C such as Boulevard, Panache and Zing are running behind schedule, as are many others initiated by other companies. The builder claimed that one of the biggest factors for the delay was the agitation for higher compensation by farmers whose land had been acquired. As Anil Sharma, CMD of Amrapali, pointed out, a number of his company's projects on the Noida Expressway was affected by protesting farmers who descended on the roads several times between 2011 and 2014. The air of uncertainty caused by these protests kept potential buyers away. 

There was also the October 2013 judgment of the National Green Tribunal banning construction within a 10-km radius of the Okhla Bird Sanctuary. While the ban was finally lifted in August 2015, the interregnum saw no possibility of the completion certificates being awarded and, therefore, no possession being given by the builders despite the construction of thousands of apartments being completed. 

Besides the delays, the poor buyer response has deflated the potential boom along the expressway . However, in all honesty, the buyers were only being wary about the generally poor quality of construction, except a few like JP and ATS, in the area.While this led to the flight of high networth individuals, the builders argue that they were forced to cut corners be cause the interminable delays were affecting their bottom lines. A builder explained that during the period when little work could be done, the prices of cement and steel went up, reducing their margins. 

The Expressway set back is a ruinous blend of causes and effects. 

The missed deadlines have scared away potential homebuyers, leaving constructors with depleted budgets and little money to complete their projects, further delaying the transfer of ownership to buyers. The vicious circle is yet to come to a halt. 

Source - ET 
 

Sector 150 in Greater Noida mooted as model of real estate development in NCR

NEW DELHI:To boost infrastructure in the newly developed sectors along the Noida-Greater Noida expressway, Noida Authority has started working on several projects envisaging connectivity with Faridabad and Greater Noida. All projects along the Expressway were reviewed recently by Noida Authority, which is also taking up a project to develop the 45-meter road which will connect Kalindi Kunj to Greater Noida. This road will cut the travel time from Kalindi Kunj to Greater Noida to 10 minutes.

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Noida Authority chief engineer AK Goel said that apart from that a 75-meter road in Sector 150 will connect to the two bridges being built on the Yamuna river to connect Faridabad. The official said that these projects will kick off in a couple of months.

Goel said major projects are being completed in Sector 150, which is being projected and developed as an ideal sector of the NCR. He added, "Sector 150 is developed over 600 acres of land. It is the greenest sector of NCR with 80% green cover and has 42 acres of parks. The authority also plans to develop a sports city and an international cricket stadium. Bridges to connect with Faridabad will also be developed in this sector," Goel said many leading developers including like ACE, Lotus Greens, ATS, Logix are developing green, low-density infrastructure and sports facilities and promoting greenery.

"Presently, people experience a nightmarish journey to south Delhi, Noida and Faridabad via Kalindi Kunj but with the connection of Kalindi Kunj road to Sector 150, people will be able to travel from Kalindi Kunj to Greater Noida in 10 minutes. We are expecting to start this project on ground in two months," he added.

"A flyover will be developed from the 45 meter road in Sector 150 to connect Sector 150 with Noida-Greater Noida expressway. This will help people to travel from Greater Noida to Noida to Noida to Greater Noida side of the expressway. This project will cut travel time from Kalindi Kunj to Greater Noida 10 minutes," he further said that the project will start on ground in couple of months.

Discussion is on with Haryana government to share cost of two bridges. Both bridges will be developed between Sector 149A-150 and Sector 168-187A in Noida region. The length of both the bridges would be 600 meter with eight lane each. 

Source - TOI

Bhasin Group Plans to Build Rs 150 Cr Noida Tower in 99 Days

New Delhi: Realty firm Bhasin Group on Tuesday said it will invest Rs 150 crore on construction of a 33-storey commercial tower in Noida in mere 99 days, a sort of record for the national capital region.

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To construct the composite steel structure tower covering 9 lakh square feet of area, the company has given a contract worth Rs 35 crore to Jindal Steel and Power Ltd (JSPL) for supply of pre-engineered columns, beams and allied structure.

"We are coming up with a 9-lakh square feet commercial building on Noida Expressway. The construction of this building will be completed in just 99 days," Bhasin Group managing director S S Bhasin told reporters here.

"This will be the tallest and fastest (built) composite steel building in the country," he claimed.

The construction started on October 21 and would be completed by January 29, 2016, he said, adding that this tower would be operational by April-May after getting the necessary approvals.

Mr Bhasin said the company would invest Rs 150 crore on construction of this office-cum-retail tower. It is selling commercial space at Rs 3,500 per square foot. This tower is part of a 25-acre project that the company would develop in Noida.

Although the construction cost of this building is 15 per cent higher than for a normal building, Mr Bhasin said the effective cost would be less as it will be completed in a very short span of time.

Jindal Steel & Power director (sales and marketing) V K Mehta said the company would supply more than 4,000 tonnes of steel of the highest strength for construction of this tower.

Bhasin Group, which deals in automobiles, has entered into the real estate sector. It has already developed a shopping mall in Greater Noida.

Source -  TOI

7,000 buyers can now take possession of Noida flats

NOIDA: Ten housing projects caught in the legal wrangle of demarcating an eco-sensitive zone around the Okhla Bird Sanctuary have received completion certificates from the Noida Authority, paving the way for 7,000 buyers to take possession of their homes.

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This is the major first set of completion certificates issued since the eco-sensitive zone around the park was notified by the Union environment ministry on August 19.

Nearly 53 projects coming up in sectors near the peripheries of the park are in various stages of development. Completion certificates for the remaining projects are also being processed.

Among housing projects where possession can now be given are ATS, Prateek, R G Residency and Eldeco. World Trade Tower, Garden Galleria and the DLF mall have also been granted certificates.

These projects were affected after the National Green Tribunal restrained the authorities from issuing completion certificates to projects located within a 10km radius of the Okhla Bird Sanctuary because the government had not notified an eco-sensitive area around the park.

"We are doing our best to expedite the procedure," Manoj Rai, officer on special duty at the Noida Authority, told TOI. "There is a standard procedure to give clearance to a project. Before giving the certificate, the Authority will have to address the objections filed by home buyers and other people, if any. It's a slow process as we have to conduct site inspections, compounding, if any and look into several other details both minor and major," he said.

Rai added, "Now that the completion certificates are being handed over to developers or builders, they will in turn be able to hand over possession of the residential units to homebuyers."

An officer said the delay in issuing completion certificates could be attributed to developers' inability to clear their dues to the Noida Authority. "Without a 'no dues certificate', completion certificates will not be given for any project. This has already been notified to the builders and developers," Rai, who heads the Authority's planning department, said.

The Authority, officers said, was prepared to accommodate the additional population that is expected to move into Noida as completion certificates for more projects come through. Around 35,000 flats can be delivered to buyers once the certificates arrive.

The eco-sensitive zone around the Okhla Bird Sanctuary has been marked at 100 metres to the east, west and south of the park and 1.27km to the north, up to the DND Flyway across the Yamuna riverbed. It doesn't affect any real estate project in Noida.

Source - TNN

Noida rushes to monitor water use after NGT rap

NOIDA: Following a rap from the National Green Tribunal (NGT) for their failure to restrain builders from extracting groundwater, the Noida and Greater Noida Authorities have swung into action.

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In Noida, project engineers of the city have been directed to constitute inspection teams and submit a report within two days. Strict action is on the cards for erring real estate developers drawing groundwater in violation of NGT orders, officials said.

According to officials, all of Noida and Greater Noida's work circles covering the twin cities' various land pockets will be checked for violations. "All the project engineers heading the 10 work circles in Noida have been asked to conduct inspections of their respective areas," said Manoj Rai, officer on special duty (OSD), Noida Authority.

"They will inspect the construction sites and report if any builder or developer is misusing the groundwater for construction purposes," Rai said.

Rai said the officers have been directed to submit a report within two days. "Strict action will be taken against any real estate developer found to be flouting NGT norms," Rai said.

Senior GNIDA officials have given out similar instructions to their project engineers. "We will issue notices to anyone found flouting the norms, followed by strict action," said an official.

On January 11, 2013, NGT had restrained all builders in Noida and Greater Noida from "extracting" groundwater for construction or any other purpose.

However, on Tuesday this week, the tribunal while hearing a plea of a Noida resident Vikrant Kumar Tongad who alleged that real estate developers were withdrawing ground water in violation of NGT orders, slammed the authorities for their failure to stop groundwater extraction. It constituted a committee to conduct surprise inspection at construction sites in Delhi-NCR, the report of which is to be submitted one week prior to next date of hearing on October 13, 2015.

Source - TOI 

 

Housing sales in Noida lowest in 8 years

NEW DELHI: Noida property market witnessed new sales of only about 3,800 homes during the April-June period, lowest in the last eight years, due to dip in demand from investors, according to a report by Bank of America-Merill Lynch. 

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"The housing market in Noida continues to remain difficult — absorption rate lower than 2009 levels, new supply/launches halved compared to period (calendar year 2008-13) and pressure on pricing," BofA-ML, an American brokerage firm, said in a research report. 

The second quarter of calendar year 2015 witnessed "new sales of about 3,800 units which is lowest in the last eight years", it added. "Absorption rate at 3.7 per cent is lowest in last eight years as investors who held the housing market in the past seemed to have deserted the market given poor visibility on timely delivery, price appreciation and exits," said the report. 

It also expressed concern over the unsold inventories in the Noida property market. 

"Although we believe unsold inventory has peaked at about 1,00,000 units, the same equates to 16 quarters at current sales velocity; again highest in last 8 years... 4-year inventory is worrisome...," the report said. 

It attributed the "slow growth in employment generation and perceived poor state governance" as the key reasons for "poor absorption and high unsold inventory in Noida". 

On the Gurgaon market, the report mentioned that during the last six quarters, launches have been twice as much in even quarters as compared to odd quarters. 

"We don't see this as a new trend but we shall keep a keen eye on the same," it said. 

The report said that the demand in Gurgaon is primarily limited to ready-to-move-in supply and new launches (stretched payment terms). 

"About 40 per cent of the total sales in 2QCY15 were contributed by new launches alone," it said. 

Gurgaon's unsold inventory has seen an exponential rise over last 2.5 years indicating significant slowdown in sales. 

"We foresee weakness to stay through calendar year 2015 before possible recovery in calendar year 2016," the report said. 

To improve sales and cash flow, the brokerage said that there is a need for notable rise in new launches with freebies and discount schemes as well as reduction in investor inventory in secondary market.

Source - TOI 

YEIDA to launch two affordable plot schemes in Noida

Delhi/NCR - Yamuna Expressway Industrial Development Authority (YEIDA) is getting ready to launch two affordable plot schemes — residential and industrial — by the end of this month. The Authority is also planning to allot land to develop an apparel cluster on the Yamuna expressway across 200 acres of land.

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According to officials, the two new schemes are being readied for prospective entrepreneurs, homebuyers and investors with an aim of aiding development in the YEIDA area. "On offer are plots available for setting up industry and residential homes," said Santosh Yadav, CEO, YEIDA. "There are more than 800 small plots, which will be available for individual homes, while industry plots on offer will number about 320," he told TOI.

Yadav said plots of sizes 120 and 162 metres will be available for the residential sector, while industrial plots will measure 300, 600, 1,000 and 1,800 square metres in size. "Plots under both the schemes will be allotted on a lottery basis," he said.

The reserve price for residential plots, which are located in YEIDA's Sector 22D has been fixed at Rs 14,250 per square metre. This means that a 120-metre plot would come at a cost of Rs 17.10 lakh, while a 162-metre plot would cost a homebuyer about Rs 23 lakh.

Industrial plots, meanwhile, will be allotted at Rs 6,100 per square metre. These plots have been earmarked in Sector 29. While a 300 sq metre plot would cost about 18.30 lakhs, 600 sq metre plot Rs 36.60 lakhs, 1,000 sq metre plot Rs 61 lakhs and a 1,800 sq metre plot a little more than a crore. YEIDA has fixed the floor area ratio for residential area at 1.8 and industry at 1. Ground coverage will be 75% and 65%, respectively.

UP chief minister Akhilesh Yadav has been approached for land to develop an apparel cluster in the YEIDA area on the expressway. Once in place, YEIDA expects an overall investment of about Rs 300 crore. "More than 100 factories will be set up in the land cluster spanning 200 acres, turning YEIDA into an apparel hub. It will be finalized by the end of the month," Yadav said.

Source - TOI