Metro Extension to Boost Ghaziabad Real Estate Market

May 29,2018 / By Priyanka / No Comment

The Metro construction work is in full progress to connect the extended pockets of Ghaziabad via Metro, from Dilshad Garden in Delhi to the New Bus Stand in Ghaziabad’s Madhopura. The trial runs on the 9.41-kilometre stretch had been deferred from March to June while the line is expected to be operational by September this year.

After too many delays, the things would soon be on a fast track as the Ghaziabad Development Authority (GDA) and the Delhi Metro Rail Corporation (DMRC) have finalized the funding model.

According to sources, the slowdown in the real estate sector, among others, are the reasons for a delay in payments. According to the note prepared by the GDA, the agencies and departments such as the UP State Industrial Development Corporation (UPSIDC), UP housing board, the GDA and the Ghaziabad Municipal Corporation (GMC) will be able to fund 10 percent of the total project cost of Rs 4,048 crore.

The latest deadline (September 2018) is subject to the final approval from the Centre and release of funds by the Ghaziabad Development Authority (GDA).

Metro Project: In 2014, an agreement was signed between the DMRC and the GDA for the development of this Metro line. The elevated corridor under Phase-III will have eight stations – Shahid Nagar, Raj Bagh, Rajendra Nagar, Shyam Park, Mohan Nagar, Arthala, Hindon and New Bus Adda. Close to 90 percent of the work has been done, which covers structural works on 12 out of 14 Metro station buildings.

Cost of the Metro Project: The project is being developed at a cost of nearly Rs 2,210 crore with about Rs 1,479.6 crore shared between various agencies based on the funding pattern sanctioned by the UP cabinet.

The share allocation for the various agencies are Rs 695.8 crore for the GDA, Rs 246.35 crore for the GMC, Rs 440.45 crore for the UP Awas Vikas Parishad and Rs 97 crore for the UPSIDC.

Reason for the Delays: While the GDA has been prompt in submitting its share, which includes Rs 80 crore on land, the other agencies have slowed down and have been asked to pay in installments.

This delay in financing has been one of the main reason, besides issues in the land acquisition that extended the project deadline by a year.

Impact on Real Estate: The new Metro line will pass through the Sahibabad Industrial Area and will considerably impact the residential market in the areas lying in the vicinity where the infrastructure is poor.

Once the Metro line is operational to the public, the projection of the areas lying along the Metro corridor would develop which is at present limited to the lower-middle-income segment. Connectivity to Mohan Nagar from Dilshad Garden would improve. Presently, the route remains chock-a-block all the time.

Buying property Real Estate Smart Residential Living

All you need to know about Leasehold Property

Apr 23,2018 / By Priyanka / No Comment

Most people know the difference between owning and renting a home, but there is a third category many aren’t aware of called a leasehold property. Now the question is what a leasehold property is and what are the consequences of buying a house on leasehold land? We explain

Leasehold states to a property tenure, where one party buys the right to occupy the property for a given period of time (30 to 99 years). The primary owner of the leasehold land is usually the government or local development authorities. They give the land to builders, to develop projects on a leasehold basis. Homebuyers buying a residential apartment, in a leasehold land will own it only for the leasehold period of time.

Projects built on leasehold plots
Most projects in large metro cities like Delhi-NCR and Mumbai are constructed on leasehold plots that are bought by the builder or developer. This procedure is followed, mainly due to the scarcity of land in and around these metro cities.

So if you are buying a property in a project that is built on leasehold land, you would remain its owner only for 99 years, or for any other lease period and the authority/government will remain the primary owner.

Once the construction of a project is finished, the developer will transfer the lease in the name of the society formed. It is developers/builders duty to build the project and hand it over to the residents’ welfare association (RWA). Until the RWA is formed, the developer maintains the project.

Risks for home buyers
The major disadvantage for a home buyer is the vagueness that arises after the lease period on the land ends and the renewal of the occupancy contract. The renewal of the occupancy usually comes up when the lease tenure on the land is for a shorter period (30-33 years), which is common mainly in Mumbai. Along with the contract renewal cost, buyers will also have to bear other costs, such as property tax, etc.

Another issue that projects built on plots with shorter lease periods are of not receiving funds for construction. So, chances are there that projects can get delayed or even non-completion of projects is also possible. In addition to it, renovation of such projects becomes challenging, since the approval of all the involved authorities is required, to carry out any renovation or construction work.

While applying for a home loan for a property built on leasehold land, the home loan tenure cannot be higher than the balance period of the lease. In cases, when the lease period for the land is less or is nearing completion, lenders would be reluctant to risk the possibility of the lease not being renewed and therefore, may not grant a home loan.

Advantage for home buyers
The benefit of buying a property in a project that is built on leasehold land is that it will be considerably cheaper than buying one that was built on a freehold plot.

In metro cities, developers usually pay the less FAR cost to lease a plot in a good location. This financial benefit trickles down to home buyers, as well.

Such leasehold plots, for residential projects, are commonly part of a larger development. This means that the surrounding areas usually have good infrastructure and connectivity.

What can home buyers of leasehold properties do?

Register the property in your name.
Get a transfer memorandum – a permission granted by the development authority to the owner (seller) of the property, permitting him/her to transfer the rights to the homebuyer
Always buy or invest in a project built on land that has a long leasehold period.

Buying property Real Estate Real Estate News Smart Residential Living

NRIs reshaping the Indian Luxury Real Estate Market

Apr 10,2018 / By Priyanka / No Comment

There is an interesting trend that has been noticed in Indian real estate market. In a market riddled by lack of demand from buyers, developers are seen launching luxury residential projects.

Resultantly, there has been an unexpected emergence of interest in the luxury residential segment which has come from non-resident Indian clienteles and buyers with deep pockets.

A lot of Realtors have joined the trend in Pune and Mumbai as well. Following the implementation of the real estate Act, the market in all parts of the country was stirred up for better or for worse.

While the transparency and authenticity in real estate investments became apparent, the risk of seeing the project ever reach completion with respect to compliance has a lot of residential home investors backing out. To make-up for the miserable loss, developers are looking to make the most of this micro-market.

The demographic for luxury projects is limited. However, this is the segment that has kept non-corporate realtors out of the red in recent times. A remarkable fact about the NRI customer base is that even a risk-prone project does not disappoint them. As long as a luxury project is made debt-free, NRIs do not hesitate from paying extra to purchase the same.

Most of these luxury houses have a specific net worth that runs into hundreds of crores because each home comes with a price-tag of Rs 6-8 crore. In spite of the dearth, real estate big shot have done a booming business in Mumbai and Gurgaon.

This shows that in spite of the storms that were thrown its way, real estate industry is capable of sustaining through micro-marketing. The niche of investors may be thin, but it is not absent. According to real estate analytics, a list of real-estate developers have managed to snag end-user consumers enthusiastic about luxury housing projects.

Mumbai saw Lodha Group and Radius Developers making a profitable business. The Lodha Groups have launched about four new luxurious, high-end projects at Walkeshwar, Lower Parel, and are now concentrating on Pune. Radius Developers has two upcoming projects where each luxury home may get them approximately Rs 13 crore.

Real Estate Smart Residential Living Tips

How can you claim your money back if your developer is going insolvent?

Apr 5,2018 / By Priyanka / No Comment

Even though the Real Estate Regulation Act is now in force, property buyers, mainly in Noida, are failing to see much relief as it stands today.

When home buyers are faced with an insolvency proceeding, here’s what you can do to make sure that your rights are protected when the builder fails to complete the project

What is insolvency?
Insolvency is the state of being incapable to pay the money owed, by a person or company, on time; those in a state of insolvency are said to be insolvent.

In case of insolvency:
Insolvency proceedings should confirm that homebuyers get their respective properties and the flow of money remains non-disruptive by bringing in a government agency or co-developer to finish the project when a builder fails to do so.

What is the change?
The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, and the Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017, provide forms for submission of claims by operational creditors, including financial creditors, workmen, and employees.

Earlier, there was no provision for individuals to claim under the insolvency law. That hole has recently been plugged by a government notification.

How to make your claim?
The Insolvency and Bankruptcy Board of India notification says that a person claiming to be a creditor should “submit proof of its claim to the interim resolution professional or resolution professional in person, by post or by electronic means in Form F of the Schedule.”

The existence of the claim of the creditor may be proved on the basis of the records available in an information utility, if any, or other related documents adequate to establish the claim, comprising any or all of the following:
1. Bank statements of the customer showing non-satisfaction of claim
2. Documentary evidence demanding satisfaction of the claim
3. An order of court or tribunal that has arbitrated upon non-satisfaction of claim

How can it be resolved?
The best way to resolution could be the completion of the project through a change of developer (if the existing developer is insolvent) so that homebuyers get the unit which was promised to them.

Real Estate Real Estate News Smart Residential Living

Student Housing startup in Pune- “Youthville Hostel”

Mar 22,2018 / By Priyanka / No Comment

Youthville is transforming the Pune hostel category with its state of the art property at Bavdhan by giving, a living experience that is unforgettable These well crafted living spaces for students, offers facilities to enrich student’s stay in Pune. High speed 24 hours Wi-Fi, Laundromat, Fitness centre, Cafeteria, Music room, Library, Mini theatre, Common kitchenette, Smart access card, Shuttle service, Doctor on call, ,Housekeeping and daily room care, Bike on hire are few of the facilities that has set this property apart from other hostels in the city.

The hostel is strategically located at Bavdhan, which has close proximity to various education institutes and important destinations. After the launch of girls hostel in Bavdhan, Youthville has plans to expand to Mukund Nagar, Thathawade and Nagpur. Refining the hostel experience, where students lives unforgettably, the company has vision to deliver 25,000 beds by 2023-2024.

Rooms range from double and triple occupancy. The 4 storied property has 126 beds .En-suite shared rooms with upscale trendy interiors has private balconies. At Youthville there is no dearth of facilities. A student is looked after very well and the time spent over here is unforgettable. Equipped with state –of- the- art amenities living Youthville offers convenience, security and comfort for the students that is trusted by students, parents, and institutions across Pune. Food at Youthville is wholesome and nutritious. The menu is different everyday with variety of dishes to cater to everyone’s taste.

Mr. Vineet Goyal, Founder Youthville Hostel says “At present student housing is functioning in an unorganized way. Unfortunately students face issues related to hygiene, food and other necessities. They are deprived of facilities which are making their lives difficult. At Youthville we have addressed to these inadequacies and created a space, where students live unforgettably. The demand is huge and put together all the colleges in Pune are able to meet only 10 %– 15 % of demand. In short student housing is undersupplied and has high potential to grow in demand. With organized players coming in, it will help to cater to this growing demand. With high potential and sustained occupancy rates, this segment has immense of scope to be developed as an asset class for the realty developers.”

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Category : Real Estate

Metro Extension to Boost Ghaziabad Real Estate Market

All you need to know about Leasehold Property

NRIs reshaping the Indian Luxury Real Estate Market

How can you claim your money back if your developer is going insolvent?

Student Housing startup in Pune- “Youthville Hostel”