Gurgaon - Hottest Real Estate Destination

As per the new Master Plan, the proposed Dwarka - Gurgaon Link Expressway will touch Delhi near Dwarka Phase II  very close to upcoming Diplomatic Enclave and current Metro Corridor. Proximity to International Airport and South Delhi will make new Gurgaon one of the most sought after destinations.

SC asks Noida banks to inspect allotted plots

The Supreme Court on Monday directed the managers of the banks, facing eviction from residential areas, to inspect on Tuesday the plots allotted to them by the New Okhla Industrial Authority (NOIDA). 

A bench of Justices Swatanter Kumar and Ranjana Desai told the banks that their managers should get in touch with the manager of NOIDA and conduct a joint inspection of the plots allotted for them to shift out of the residential areas. Over 120 branches of banks are facing eviction on the basis of an apex court judgment which had ruled that commercial operations in residential areas were prohibited under the NOIDA Master Plan and had given marching orders to banking institutions, nursing homes and other business entities operating from houses in residential sectors of the satellite town of the national Capital. 

NOIDA’s counsel said that 77 plots were allotted to the banks but there were many which had not been opted for by the banking institutions. Bank branches had complained that the plots were located in secluded areas unsuitable for banking operations. 

Dated: 24 April 2012

SOURCE: Times Of India

Realty good savings tool for retirement

The West is rewriting the phrase “as safe as houses”, considering the drop in real estate values. But in India, real estate continues to make sense as a retirement savings option. 

    Three factors that support real estate as a retirement savings option are: India’s housing shortage, favourable demographics and a tax regime that favours borrowing to buy a house. While this is clearly not an option for a large section of the population because of steep realty prices, it is viable for those with enough savings and good cash flows. A sharp correction in property prices in late ’90s and immediately after the Lehman Brothers crisis in 2008 may have raised doubts in the minds of some, but financial planners continue to support real estate as a retirement tool. With an entry barrier for a two-bedroom apartment within the Mumbai city limits nudging Rs 1 crore, this is clearly not an option for all. But given that there is a sizeable population with high disposable incomes and tax liabilities, real estate makes an interesting proposition.

“For those who don’t yet own a home, buying a house has to be a top priority. But even for homeowners in a high tax bracket, there are a number of factors such as tax savings, capital appreciation and cash flow that would tempt them to definitely look at a second home,” says Pankaj Mathpal, a certified financial planner. 

Dated: 21 April 2012

SOURCE: Times Of India

VCs, PEs connect with property sites

Marquee venture capitalists (VCs), which have stayed away from funding real estate developers, are warming up to the digital property market. Facebook investor Accel, along with private equity (PE) firm SAIF Partners, have made a$5-million growth investment in PropTiger, an online property marketing start-up targeting first-time homebuyers. 

    This follows Indian Angel Network’s $1-million equity investment in Groffr, a groupbuying portal for properties, and Helion Venture Partners pumping $12 million into e-broker India Homes. Three American venture capitalists Canaan Partners, Mayfield and Bessemer Venture Partners have jointly invested $20 million in Consim Info, which also owns online portal IndiaProperty. 

    “Portals are engaging customers with technology to disrupt the property buying space. They are, right now, more of an enabler-providing tool to help homebuyers find a good deal rather than selling hard assets,” said Mohanjit Jolly, MD of VC firm Draper Fisher Jurvetson (DFJ) India. 

    “Online portals are exhaustive in catering to requirements based on price and location. There are roughly three million people visiting various online property portals in a given month,” said Sudhir Pai, business head at MagicBricks.com, which offers over four lakh property listings to a monthly traffic of 40 lakh people. 

   The digital boom has already spawned several me-too start-ups, fragmenting the online property market just as the real estate industry. Group buying sites like Groffr now search for a constantly evolving and differentiated strategy (it will soon launch 25% cash back offer) to break the clutter and sustain decent commissions — pegged between 1% an 2.5% of the purchase value. 

 Dated: 20 April 2012

SOURCE: Times Of India