Real Estate Market Would Be Improved Soon.
So Jaypee Greens Wish Town having affordable price in luxurious apartments which are ready to move in.
Real Estate Market Would Be Improved Soon.
So Jaypee Greens Wish Town having affordable price in luxurious apartments which are ready to move in.
Presently, there is a buzz around the affordable housing segment after the Prime Minister announced a slew of rebates on home loans under the Pradhan Mantri Awas Yojana (PMAY), on December 31.
Under this, the central government would give a 4% subsidy on the interest rate for home loans of up to Rs 9 lakh, and a 3% subsidy on home loans of up to Rs 12 lakh. Taking the cue from the PM’s Address to the Nation, several leading banks have also cut their lending rates. The State Bank of India (SBI) reduced its marginal cost of funds based lending rate (MCLR). It means that if you are planning to get a loan from SBI, the new rates will be 8.65% against the earlier 9.55% per annum.Other banks like PNB, Union Bank of India, IDBI, etc, have also reduced their MCLR for loans to customers.
With HUDA already coming up with its own Haryana Affordable Housing Policy in Gurugram and Uttar Pradesh also set to launch its own version under the Samajwadi Awaas Vikas Yojna, the demand for affordable housing projects has suddenly shot up.
Ever since the “affordable housing“ and “Housing for all“ missions were launched by the Modi government, developers across the country shifted their focus to budget homes.
One estimate says that nearly 1.5 lakh units would be ready for delivery by end 2022, in the NCR regions like Gurugram, Bhiwadi, Neemrana, Ghaziabad, and the twin cities of Noida-Greater Noida. This figure would only multiply once the Budget gives more clarity about the policies and concessions to this segment.
The Delhi NCR has the highest demand for this category of property but, with most projects costing over Rs 50 lakh, customers ended up renting a flat for a lifetime. But, things are now changing with developers like Raheja Develop ers, Supertech, Signature Global, Eros Group, Nirala World, Gaursons, Land Crafts, Antriksh India, Mahagun Group, Aditya Builders, SARE Homes, Ashiana Housing, Krish Developers, and Falcon Realty offering the mid-segment homebuyers quality housing projects at much more competitive prices.
These developers say that they would help the Modi government achieve its stated objective of providing “Housing for all“, nearly six crore houses, by 2022. Some of these projects are already nearing completion, while new ones are also being launched.
Gurugram-based Signa ture Global has recently launched affordable housing projects like “The Roselia“ in Sector 95A and “The Serenas“ in Sector 36, South of Gurugram.Pradeep Aggarwal, chairman of Signature Global, said: “Affordable housing has always been in huge demand but there has always been a large vacuum in supply. We have launched several affordable housing projects in the last two years and have just launched two more affordable projects on a cumulative investment of over Rs 500 crore.“
R K Arora, CMD of Supertech, says: “We, have launched `Basera’, a residential project in Sector 79, Gurugram, at a very competitive price. The project offers 1and 2BHK apartments, starting from Rs 12.87 lakh, and the units have been planned with well-designed layouts and optimally-sized living spaces.With the launch of this project, we are redefining affordable living in the Millennium City of Gurugram.“
Avneesh Sood, director of Eros Group, said: “With the recent rate cuts and policy makeover, demand for affordable housing or, rather, the demand in end user market, has increased. In recent times, Greater Noida West has emerged as a much sought-after investment destination where the prices are much more affordable compared to Noida or Delhi. We are already offering Phase 1 of Eros Sampoornam in Greater Noida West for possession; as the project is in the affordable category, response from customers is very encouraging.“
Rakesh Yadav, chairman of Antriksh India, said: “We are inching closer towards fulfilling the Prime Minister’s dream of building six crore affordable housing units for the urban poor by 2022. The reduced lending rate on home loans will create fresh demand and developers across the country would focus on affordable housing projects for some time to come.“
Dhiraj Jain, director of Mahagun Group, says: “The rebate on lending rates on af fordable housing is big news. The lowest rate in the market is 8.60% at present; thus, prospective buyers will basically be borrowing at 4.60% for loans up to Rs 9 lakh and at an effective rate of 5.60% for a home loan of up to Rs 12 lakh. The EMIs for this category have fallen by nearly 40%, which will en hance the demand for housing amongst the buyers of this segment.“
Raheja Developers is developing Kr ishna Housing Scheme, an affordable housing project in the price range of Rs 12 lakh, over 10 acres in Sector 14, South of Gurugram, abutting the Aravali hills and within walking distance of the Mod el Industrial Township of HSIIDC. The group also has plans for a new afford able, plotted project under the Deen Dayal Jan Awas Yojna, an affordable housing project of the Haryana govern ment.
Navin Raheja, CMD of Raheja Group, says: “Affordable housing is the next big thing. The recent announcement by the central government to encourage hous ing for lower-income groups through af fordable housing programmes will rein vigorate the sector. Low-cost housing, which is generally robust, has shown an uptick in the last two years.“
Ashish Agarwal, director of Aditya Builders, said: “Private sector develop ers, with some flexibility in planning, ex ecution and marketing, along with some incentives in taxation, would be of great help in meeting the housing shortage in urban areas. The new scheme for the new middle class in rural areas, which gives an interest subsidy of 3% on loans up to Rs 2 lakh, taken in 2017, for con struction of new houses or extension of old ones is very positive.“
Source TOI dated 21/01/2017
Jaypee Greens Greater Noida, with the world class facilities and the best connectivity
The enactment of the Real Estate (Regulation and Development) Act, 2016, was an unequivocal victory for the Indian real estate sector. This act mandates every state and Union territory to establish a Real Estate Regulatory Authority (RERA) to oversee the sector in their respective territories.
The Centre has formulated a set of model rules and procedures and the Union territories as well as two states, UP and Gujarat, have already implemented it. This major pro-consumer law will bring transparency to the sector like never before, while ensuring a level-playing field for developers and buyers.
Ssumit Berry, managing director of BDI Group, says: “RERA was adopted by only a handful of states and UTs, which have notified the rules. But, in 2017, we hope to see RERA operating in every state. We are confident that after the implementation of this act, builders will have more opportunity in investing in the real estate sector.“
Goods and Services Tax:
GST is the singlelargest taxation reform in modern India; it is aimed at doing away with geographical barriers for businesses by mitigating differences in indirect taxes applicable across various states. The initial deadline for its implementation–April 1, 2017–will most likely be missed though, with most states on board, it will almost certainly kick in by September 8, 2017.
“Clarity on tax credit for real estate transactions and allowing input credit could bring about a reduction in home prices.Clarity on the applicable GST rate for the real estate sector is expected in the next year,“ Anuj Puri, chairman and country head, JLL India, said.
Benami Transactions Act:
The Benami Transactions Act will curb black money flow into real estate and also render holding of property under fictitious names a punishable offence. Budget 2015-16 further announced imposition of a heavy penalty on property transactions carried out in cash.This amendment makes it next to impossible to park unaccounted monies in real estate.
Real Estate Investment Trusts (REITs):
An important development in the real estate sector, REITs will help smaller investors invest in `Grade A’ commercial real estate across India. “India’s first REIT listing could happen within the next one year.Currently, around 229 million sq ft of office space can be seen as REIT-compliant.If even 50% of this were to get listed, we are looking at a total REITs listing worth $18.5 billion,“ a JLL India report said.
After the Modi government’s demonetization drive, transactions in the real estate sector have virtually dried up, particularly in the land and capital raising business.
Residential sales’ enquiries have also dropped, and prices in secondary markets are softening. However–“It seems to be a short-term problem–particularly for commercial transactions, land deals, hospitality and retail. We are hopeful that combined with RERA, demonetization is bound to curb inconsistencies and unfair trade practices and will profes sionalize the sector in the long run, apart from helping reputed builders,“ Atul Banshal, president (finance and accounts) of M3M Group, said.
Thus, from the policy reforms perspective, 2016 was a big year for the Indian real estate sector. “Policy reforms like RERA, Benami Transactions Act, REITs, GST, and demonetization have considerable potential to change the way real estate sector works. The reforms are set to bring in transparency and build a robust ecosystem. Apart from being a definite advantage to responsible developers, they will be a game changer for the sector,“ Ravish Kapoor, director of Elan Group, said.
New Year Would be Better For Investment in Real Estate:
Due to cut of rate of interest in home loan, the demand of ready to move in apartments would be increased. The segment of affordable buyers are moving out in market after the demonetization.
The affordable apartments are available in resale at Jaypee Greens Wish Town, the projects are Jaypee Kosmos, Jaypee Klassic where most of apartments are ready to move in.
Dec 17 2016 : The Times of India (Delhi)
CUT AND THRUST – Banks to cut lending rates, sector set to revive soon
“After the recent demonetization of higher denomination notes, the affordable housing segment and the salaried class are going to be two obvious beneficiaries. Land prices are expected to see a correction in values, more so in the Tier II, III cities and the fringe areas of metros. This will pull down unit prices and help make houses more affordable in India,“ Anuj Puri, chairman and country head, JLL India, said.
Affordable housing, in fact, is mostly available in the fringe areas of metros as land prices are cheaper there compared to prices within city limits. With land prices coming down, these projects could see higher sales.
Buyers in this segment, on the other hand, stand to benefit from not only lower unit prices in the coming months but also a likely fall in home loan interest rates.
The Prime Minister recently announced at a rally that his government’s demonetization drive will push banks to cut lending rates significantly, triggering a revival in economic activity across the country.
Media reports have quoted the Reserve Bank of India saying that banks have collected deposits of nearly Rs 5.4 lakh crore between November 10 and 18, while they disbursed only about Rs 1 lakh crore.
As a result of this surplus liquidity, many banks have already brought down deposit rates by 15 to 25 basis points in a bid to increase lending. Some economic analysts further expect a reduction of 50-75 bp in lending rates in the next four to five months’ time.
“This can certainly bring down home loan interest rates, provided that the banks pass down the benefits to homebuyers. If previous rate cuts by the RBI are passed on too, interest rates on home loans could come down by up to 2%.This could spur demand among the service class for housing across the country,“ Puri said.
Atul Bansal, president (finance and accounts) of M3M Group, also says that low interest rates will give real estate a massive boost by raising positive sentiment–and demand.
“PM Modi’s demonetization move is bound to ensure a boost in the residential segment, especial ly affordable housing, as the interest rates are expected to fall. Banking systems are bound to see a windfall of funds as a positive impact of demonetization, which will increase their lending capacity and, in turn, drive down the interest rates for both deposits as well as loans. Lower interest rates will bring down the EMIs on home loans, making real estate more affordable by reducing the overall cost of investment,“ Bansal says.
Given the Modi government’s focus on affordable housing, the segment has already attracted big players like Mahindra Lifespaces, Tata Housing, Shapoorji Pallonji Group, Assetz Property Group, and Puravankara Projects, among others.Another player, Emgee Group, is planning an investment of Rs 1,600 crore in the affordable housing segment over the next five years.
A JLL India report says that private equity (PE) players are willing to partner with developers operating in this space and fund such proj ects. Nisus Finance Services, Brick Eagle Capital, Avenue Venture Partners Real Estate, Carlyle, Essel Finance Advisors and Managers LLP, Provident Housing and International Finance Corp are some of the PE firms helping developers with funding for their affordable housing projects.
All these developments, along with the removal of black money, to a large extent, are likely to make housing cheaper in the near future. “A fall in interest rates would further add on to the growth of affordable housing, which will be visible more in the longer term,“ Sumit Berry, managing director of the BDI Group, said.
Overall, demonetization is currently being seen as a blessing in disguise for affordable housing. “Land prices may fall by 20-30% in the coming months. This will help builders pass on the benefit to end users. Demonetization will also clean up the real estate and, together with RERA, may weed out the element of black money from the sector,“ Pradeep Aggarwal, chairman and co-founder of Signature Global, said.
Projects which are available for resale : Jaypee Greens Kosmos, Klassic in Jaypee Wish Town on Noida Greater Noida Expressway.
Affordable and Ready to Move in Apartments: Demand may increase :
Demonetization is a strong step towards curbing unaccounted money from the economy. There are mixed views on this when it comes to the real estate, but we firmly believe that with increased liquidity and home loan rates expected to decrease in the coming times, demand for ready-to move-in houses, or of those nearing possession, will increase. Homebuyers will surely like to take advantage of this situation and, for the first few months from now, we may see a major increase in demand for this category of housing. Gradually, we will see a huge boost in demand for the real estate in general, in the future; overall, 2017-18 will be a good phase for the real estate.
At present time Jaypee Wish Town having affordable projects such as Jaypee Greens Kosmos and Klassic in which 2 BHK apartments may start from 35 – 40 lakh.
Jaypee Kosmos a part of an integrated township where all amenities such as commercial, schools, banks, hospital are full operational. And the project is almost completed.
Now wait for the real housing crash
For a lot of people, the most tantalising long-term impact of demonetisation is the potential effect on real-estate prices. In the conventional way of thinking about the economy, a sharp fall in real estate prices would be a negative impact of demonetisation. For Indians who can’t afford a house, such a fall would be the biggest possible bonanza. I don’t think there is an official view on this, but in his first speech announcing demonetisation, Narendra Modi counted ordinary people’s inability to buy a house as one of the ill-effects of widespread black money.
And so it is. Real estate is the dominant form of investing black money and the resilience of house prices in the face of a long-term stagnation in demand is one of the results. However, demonetisation and it’s coming follow-up – a crackdown on benami property– are very likely to be what finally breaks housing prices and make housing affordable for a large number of people. The questions that most people are asking is– when will the fall in housing happen and how far will prices fall.
I’ll come to the question of when some other time but as to how much, there’s an interesting way to estimate this. Normally, the correct price for anything is determined by whatever buyers and sellers agree to transact at, but in a stagnant and dysfunctional market, that means nothing. However, there’s an easy way to estimate demand – real demand from people who want to live in the houses – and that is the rental market. Here’s a rule of thumb to follow– when the dust settles on all this, most housing will be worth 20 to 30 times today’s annual rental.
Houses that are easy to put on rent will be worth closer to 30 years’ rent and those where tenants are hard to find today will be closer to 20 years’ rent. Go ahead and make some mental calculations. Did you come up with results you can’t believe? Wait and watch. It’s going to happen..
Source: HT dated 28/11/2016