Circle rates up 10%, experts say hike too small

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GURGAON: Despite the district administration raising circle rates in Gurgaon by an average 10% on Friday, real estate experts in the city feel the hike is inadequate as the new rates are much lower than existing market rates.

Pointing to circle rates in prominent condominiums such as Aralias, Ambience Island and Unitech World Spa, an expert said the rate has been revised from the earlier Rs 4,500/sq ft to Rs 7,000/sq ft whereas the market price is somewhere around Rs 10,000/sq ft. In some cases, the expert added, it is as high as Rs 15,000/sq ft. Distinguishing them from other areas, circle rates in luxury condominiums were hiked by almost 70%. “We don’t think the realty market will see any decline in future. The market is already looking up. As circle rates near market rates, the sector will become more mature and properties will get more into the approach of salaried individuals. This will help in keeping a check on rotation of black money,” said Anckur Srivasttava, chairman, GenReal Property Advisers.

Any steep hike in stock markets is always followed by a corresponding rise in realty rates. “Every stock market rally is followed by a subsequent rise in realty rates. Considering financial markets are at their all-time high, the realty market is heading towards a historical high, too,” Srivasttava said.

Echoing similar sentiments, the owner of Raheja Developers, Navin Raheja, said the Gurgaon realty market will witness a hike of over 20% soon and the annual circle rate hike will not be a dampener. “We are getting a lot of customer queries of late. The market is looking up substantially and things will change for good in a month. We expect prices to increase by more than 20%,” he said.

“The commercial segment is a precursor to the overall trend across the spectrum. When there are a lot of deals fructifying in the commercial market, it means things are improving,” said Srivasttava.

Retail investors are, however, yet to get the drift. “The retail market is still in bad shape and I think the administration should have deferred the circle rate hike for some time until the market improved,” said Deepak Sharma, general manager of a real estate firm in the city.

Source: The Times Of India

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Mr. Raheja at the NDTV debate at the Rics Real estate conference 2014

From Left to Right: Brotin Banerjee- MD & CEO - Tata Housing Development Company Ltd; Anshuman Magazine- CMD - CBRE South Asia; Yash Gupta- MD & Country Head - Hines India Real Estate Pvt. Ltd; Manisha Natrajan- Senior Editor-Real Estate – NDTV Group; Navin Raheja - CMD – Raheja Developers Ltd; S K Sayal- Director & CEO - Alpha G Corp Devt.Pvt. Ltd.;Gaurav Gupta- Director - Omkar Realtors & Developers Private Limited

From Left to Right: Brotin Banerjee- MD & CEO – Tata Housing Development Company Ltd; Anshuman Magazine- CMD – CBRE South Asia; Yash Gupta- MD & Country Head – Hines India Real Estate Pvt. Ltd; Manisha Natrajan- Senior Editor-Real Estate – NDTV Group; Navin Raheja – CMD – Raheja Developers Ltd; S K Sayal- Director & CEO – Alpha G Corp Devt.Pvt. Ltd.;Gaurav Gupta- Director – Omkar Realtors & Developers Private Limited

RICS Real estate conference 2014- Celebrating Indian Real estate was organized on the 11th of April, 2014 at the ITC Maurya Sheraton hotel, New Delhi and the session on the CEO’s high powered  TV debate on NDTV too was held in the evening. The topic of the debate was “The Blue print of success- the future potential of real estate in the country”. The debaters included Brotin Banerjee- MD & CEO – Tata Housing Development Company Ltd; Anshuman Magazine- CMD – CBRE South Asia; Yash Gupta- MD & Country Head – Hines India Real Estate Pvt. Ltd; Manisha Natrajan- Senior Editor-Real Estate – NDTV Group; Navin Raheja – CMD – Raheja Developers Ltd; S K Sayal- Director & CEO – Alpha G Corp Devt.Pvt. Ltd.;Gaurav Gupta- Director – Omkar Realtors & Developers Private Limited and Sachin Sandhir, MD, South Asia, RICS.

The debate touched almost all the subjects and important issues of real estate like the key things that happened over the last decade in Indian real estate that were worth celebrating, the emerging areas of real estate, trends in luxury, vs affordable vs value vs retail, FDIs, REIT’s, Wish list for changes that should happen in the sector that would fast track its growth and banking reforms to ensure that the real estate industry can realize its true potential and also the measures to be undertaken by RBI etc.

Speaking at occasion Mr. Raheja said that the last 10 years were full with ups and downs for real estate players. The sector has grown a lot and seen lot of changes. The sector is more organized, transparent and it has taken shape of the industry. But Most wanted single window clearance system, availability of cheap finance and focus on affordable housing will make next decade memorable. He mentioned that the biggest challenge a developer faces includes availability of land and finance. The land cost has gone very high and post new land acquisition act, it will go further. Finance cost has also gone very high and liquidity is very tight in current market scenario. However, affordable housing is an challenge looking at land prices, approval timelines, lack of public private partnership for creation of affordable housing.  He added that the land acquisition Act, Real estate regulatory authority- will serve the intended purpose only if, its balanced and other stakeholders such as buyers, authorities and other agencies are held equally accountable and responsible. Not only this, Single window clearance system, setting up regulatory authority, focus on vertical development by increasing FAR and population density, creation of self substantial integrated township outskirt of major cities, investment enclaves, Regulatory reforms, E-governance etc are also most important and desirable reforms required for the sector to maintain the growth of the sector. The Banks, Financial Institutions and government needs to work on alternative model to finance the development of real estate as the project finance cost in real estate is very high when compared to lending to other sectors.  He affirmed that based on world bank estimates, by 2050, 41% of Indian population will be urban population. Secondly, as per housing ministry report, there is shortage of 26 millions houses in the country. Read combined, real estate sector has huge potential to grow and we firmly believe that in next decade, the sector will grow with full pace. However, adequate reforms and government support is must for this. Effective Single window clearance system, E-governance and cheaper capital for the sector is most desirable to happen.

Full house, roaring audience and a charming couple… at Main Tera Hero promotions!

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The ‘Student’ of the Year looks all set to shrug off his pretty, boy-next-door image with Main Tera Hero, an out and out commercial potboiler, set to roll on April 4. And with two million views in the first week, the trailer already has the audiences agog. The enthusiasm was as palpable at the CineGrand theaters, Gurgaon last night, where the star cast of the film dropped by to promote their latest venture. Varun Dhawan made a rather shy, quiet appearance, to a roaring audience, with the pretty, petite Ileana DCruz. No star swagger. No tantrums. A delightful mix of charm and warmth, both Varun and Ileana humbled to a thumping response even as the cheers grew louder and spirits zippy.

It took him a while to loosen up. But once he did, he was in his element, chatty, playful and dancing with his fans. Nargis was missing from the scene (apparently, away for a Hollywood project) but that didn’t take away from the evening, that was fun, memorable and wholesomely entertaining. Let’s hope the film lives up to all the noise!

Source: The Times Of India