Jaypee Greens - Noida + Greater Noida

Here is an exclusive review of Jaypee Greens Noida and Greater Noida Projects. Jaypee Greens is wholly owned company of JP Associates.

Jaypee Greens Noida:
JPA highlighted its intent to create a township by launching a blend of asset classes to ensure offtake. The company plans to offer a mix of entry point as well as premium properties. Of the total 1250 acres in Noida (75 mn sqft of development), 452 acres will be developed in Phase I (currently in progress), and the balance later

Product offerings: As per the company, apart from golf centric development, adequate greenery and a township concept, attractiveness of the project lies in various price points at which products are available. Till date, the company has launched 2 types of properties - super deluxe (Imperial and Kalypso) and mid-range (Pavilion Court and Pavilion Heights)

Selling Price at Imperial Court, Kalypso Court, Pavilion Court and Pavilion Heights are Rs 6400 / sft, Rs 5,700 / sft, Rs 4,800 / sft and Rs 4,500 / sft respectively.

Jaypee Greens - Greater Noida:

Product offerings:
Premium glass towers: Total 3 towers. Current rate of INR 10,000/sqft. Estimated realization of ~INR 8000-10000/sq ft. Cost of construction of ~INR 3000/sqft. This is being built in collaboration with Shapoorji Pallonji.

Premium individual villas: These are individual housing units. Of the launches, the company is left with 5% inventory.

Mid range apartments: These are called Crescent apartments. Of the total launch, the company is left with 40% inventory. Current rate is INR 7500/sqft.

Entry level apartments: Current rate of INR 5750/sqft in Star Court. Total 450 units have been sold. Moon Court was launched last week at INR 5400/sqft. Of the total 100 units launched, 80 has been sold. Earth Court has been launched at INR 3500/sqft.

Of the total 2000 units planned, 1100 units have been launched for sale till date. Future launch dates and product types will depend upon market demand. The Hotel is planned to be completed before the CW games.

Residential price prediction - Regression Model

Using nonlinear multi variable regression approach to developing a model for predicting change in residential property prices in India. JP Morgan has developed a model which uses Nominal GDP growth and rate of change in housing prices (second order effect) as the key input variables. Model takes the form,


Since predictions are very close to actuals in the past 25 years, expect at least 20% fall in FY 2009.

Logistics - Real Estate's New Power House

Over the next five years, approximately 110 logistics parks and 45 million square feet of warehousing space is expected to be developed across the country by various logistics companies. This upsurge in the logistics and warehousing industry will in turn boost real estate activities in key locations across the country.
The following Map Shows Proposed Logistics Parks on PAN India basis.
According to a report by Cushman and Wakefield, the following places in India will see tremendous activities in terms of Logistics - Mumbai, Kolkata, Chennai, Hyderabad, Nagpur, Gurgano and Vizag. Next level promising cities for Logistics operations are - Bangalore, Indore, Ambala, Ahmedabad, Jamshedpur, Alwar and Kochi.

So if you are one of those Real Estate Investors / Speculators, then you may try your luck in one of these cities. Go for strategic locations so that it will be in demand and earn you good rentals.

Housing Loan Outstanding Top 6 Cities

According to data released by the RBI, Mumbai, Bangalore, Delhi NCR, Hyderabad, Chennai and Kolkata are the top 6 cities in India where most of the housing loans have been availed.
Citywise Total Housing Loan Outstanding at the end of FY07

• Mumbai including Thane - Rs 345 bn
• Delhi NCR - Rs 225 bn
• Bangalore - Rs 203 bn
• Chennai - Rs 126 bn
• Hyderabad - Rs 115 bn
• Kolkata - Rs 67 bn

They constitute 25% of the number of accounts, with 47% of home mortgage loans by value.

SEZs await definition of vacant land

The fate of Essars steel SEZ in Gujarat is dependent on the clarification of vacant land phrase. Lack of a clear definition with regard to special economic zones (SEZs) is raising a number of issues and the authorities are now looking to come up with a clean and definitive interpretation of vacant land.

As per the norms, an SEZ can only be erected on a land, which was earlier vacant. However, since the definition of 'vacant' is not clear, it has led to some contentious issues. The fate of Essar’s steel SEZ in Gujarat is now dependent on the clarification of vacant land phrase.

The SEZ was being built on some pre-existing structures. However, the commerce department and attorney general had given a go ahead to the SEZ, considering the fact that no economic activity was going on at the land. The finance ministry however was not convinced and recommended stripping the entity of its SEZ status, saying that SEZ should be raise on a completely vacant land.

The empowered group of ministers on the SEZ had deferred this issue in the last meeting. In the forthcoming meeting, the group is likely to take up the issue and come up with a concrete definition of vacant land. This will clear the row of Essars SEZ and prevent any such issue to arise in future.

Bangalore + Chennai + Hyderabad Property Update

Excerpts from Citigroup Research on key takeaways of property visits in South India.

• Residential property sales are down 25-40%.
• Prices are holding for tier-I's, but small players and secondary market prices down 15-20%. Small Developers the worst hit.
  
• Construction delays of 8-12mth, softening demand and rising costs have pushed back supply across asset classes by at least a 1-yr.

Bangalore Property Update:
Housing sales are down 25-30%, residential prices (Rs~3500/sqft) still holding with yields of mere 3-4%; more pressure seen on apts with ticket size of Rs6.5-10m. Focus shifts to North, while South and East remain oversupply zones. Slow progress on infrastructure projects a major cause of concern.

Chennai Property Update:
Muted demand in residential; Delay in govt. approvals and wait for new master plan has pushed
back most project launches, supply time-lines and resulted in sales cancellations.

Hyderabad Property Update:
Worst hit amongst South Indian Cities pushing out the speculators. Residential sales down 30-40% and IT space requirements have also softened; land prices are down 25-30% as well from peak. New entrants, small developers worst hit in this slowdown. Progress on road/infra projects the only silver lining.

Upcoming Hotel Properties Delhi-NCR

Here is a list of upcoming Hotel Properties in New Delhi and NCR within the next 12-24 months.

Name of the Hotel Project followed by number of Rooms and expected date of operations is listed as below.

• Ibis Gurgaon Gurgaon 217 Jun-08
• Courtyard by Marriott Gurgaon 199 Mid 2008
• Courtyard by Marriott Noida 210 Mid 2008
• The Westin New Delhi Hotel & Residences Gurgaon 300 Sep-08
• Novotel Gurgaon Gurgaon 320 Sep-08
• The Claridges Surajkund, NCR 240 2008
• Radisson Hotel New Delhi Connaught Place 120 Dec-08
• Lemon Tree Jasola - South Delhi 72 Late 2008
• Park Inn Gurgaon 70 2008
• The Leela Palace Gurgaon 409 Oct-08
• Hilton Garden Inn Saket 180 2008/2009
• Aman Lodhi South Delhi 68 2008/2009
• Radisson Hotel Manesar Gurgaon (Manesar) 225 2009
• Marriott Executive Apartments Gurgaon 129 2009
• The Oberoi Gurgaon 150 2009/2010
  
• The Westin New Delhi Gurgaon Sector 29, Gurgaon 300 Jan-10
• The Leela Palace New Delhi 211 2010
• JW Marriott Jasola - South Delhi 300 2010
• Dusit Thani Near Gurgaon CBD 120-150 2010
• Hilton Garden Inn Rohini ~250 2010
• Taj Residency Noida 450 Sep-10
• Taj Residency Gurgaon 200 Sep-10
• Four Seasons Gurgaon 230 End 2010
• DLF Convention Centre Dwarka 800 2010/2011
• Lemon Tree East Gurgaon 150 Early 2011
• Holiday Inn Mayur Vihar 264 2011
• Intercontinental Mayur Vihar Mayur Vihar 200 2011
• Ginger Near New Delhi Railway Station 118 NA