The new proposed land acquisition bill, in our view, makes private land acquisition far more difficult to achieve than it already is. Land, under the proposed legislation, can be acquired by the state only for public purposes (highways, etc) and not for any "for profit” enterprise including any PPP project, thus leaving the private sector to fend for itself.
The matter will likely be debated by the parliament before it becomes a law. Nonetheless, even on a "watered down" basis, land prices will likely increase as a result.
The standing committee, in its review of last year' proposed land bill, has rejected a key provision of allowing the government to acquire plots for private companies.
Given that land is also a state subject, in a Federal structure such as India, a lot of “progressive” states are likely to bring in their own land acquisition acts, which the respective governments may think is more progressive than the Central act in order to aid industry and job creation. These provisions thus additionally may temper down the potential impact of the central act.
Land aggregation and conversion was one of the most complicated part of any industrial activity in the best of times and post this bill becomes potentially even more difficult.
Wednesday, May 23, 2012
Saturday, April 21, 2012
Gurgaon Residential Prices Rising - High End Converge with South Delhi
Realty Ears on the Ground Suggests that prime Gurgaon projects, have the dominant theme that came out from the discussions was a "price convergence" of South Delhi and Gurgaon. While at first instance this suggestion looks lofty, we note that price appreciation for DLF's Golf course and Ambience projects has been far better than South Delhi. DLF's finished golf course inventory now retails between Rs 20-30K (Aralias and Magnolias) psf and non golf course facing between Rs 11-14K psf (Belaire / Park place)
Residential volumes in the markets have been driven by infrastructure initiatives to improve the connectivity to Delhi and relatively affordable price points. Most project launches in these regions have met with good success and have seen sharp appreciation over the last 2 years. The demand at this point seems to be more investor driven and speculative. However, as commercial activity picks up in the region as envisaged in the master plan, end user demand should pick up in the medium term.
Overall sales activity in the city is much better than rest of the country. Inventory levels are reasonably sound. Gurgaon, however, is expected to witness large number of deliveries in 2012. This could potentially result in sales activity shifting to the secondary market from the primary market.
DLF has close to 40-45 msf in the Phase V location (residential/commercial etc) and above 100 msf in New Gurgaon. Indeed these two locations are the company's biggest projects and hence it should then be a prime beneficiary of these rising asset
values.
Further down Gurgaon, in Sohna Road, completed rates in Unitech and competition projects are between RSs 6-7K psf and this rate used to be between Rs 3500-4000psf during 2009 (Nirvana Country I). Land rates here are near 10-12cr/acre (township land parcels).
New Gurgaon Current Residential Market Price is between Rs 3,500-6,000 psft
Sohna Road Current Residential Market Price s between Rs 5000-7000 psft
Residential volumes in the markets have been driven by infrastructure initiatives to improve the connectivity to Delhi and relatively affordable price points. Most project launches in these regions have met with good success and have seen sharp appreciation over the last 2 years. The demand at this point seems to be more investor driven and speculative. However, as commercial activity picks up in the region as envisaged in the master plan, end user demand should pick up in the medium term.
Overall sales activity in the city is much better than rest of the country. Inventory levels are reasonably sound. Gurgaon, however, is expected to witness large number of deliveries in 2012. This could potentially result in sales activity shifting to the secondary market from the primary market.
DLF has close to 40-45 msf in the Phase V location (residential/commercial etc) and above 100 msf in New Gurgaon. Indeed these two locations are the company's biggest projects and hence it should then be a prime beneficiary of these rising asset
values.
Further down Gurgaon, in Sohna Road, completed rates in Unitech and competition projects are between RSs 6-7K psf and this rate used to be between Rs 3500-4000psf during 2009 (Nirvana Country I). Land rates here are near 10-12cr/acre (township land parcels).
New Gurgaon Current Residential Market Price is between Rs 3,500-6,000 psft
Sohna Road Current Residential Market Price s between Rs 5000-7000 psft
Thursday, April 19, 2012
Rise of Gurgaon to Support New Delhi Part - I
Gurgaon has risen from being a small manufacturing suburb of Delhi to now a full fledged city of its own. Starting as an early auto manufacturing / IT center, the city now has most of the top corporates in North India with their head offices in Gurgaon as the city now has 3x the office space of entire Delhi city combined with a population that is a fraction of Delhi.
From being a suburb, the place has developed into a city in its own right. Despite the perceived “urban” mess the city does have a master plan to aid development till year 2025. Gurgaon has followed the classic Indian model of city development wherein the infrastructure problems are being sorted out after population has started to move in.
Key infrastructure Projects in Gurgaon are,
From being a suburb, the place has developed into a city in its own right. Despite the perceived “urban” mess the city does have a master plan to aid development till year 2025. Gurgaon has followed the classic Indian model of city development wherein the infrastructure problems are being sorted out after population has started to move in.
Key infrastructure Projects in Gurgaon are,
- Monorail development which will connect Cyber city developments of DLF with the existing metro thus reducing traffic congestion
- Road extension between Cybercity and DLF Golf course project in a JV between DLF and Government which should improve connectivity to DLF's phase V development
- Metro extension till New Gurgaon both from Dwarka and Gurgaon towards new Gurgaon office space (Northern Peripheral Road and Via Golf course extension).
- Southern Peripehery and Central periphery (4-6 lane roads) connecting Unitech's Sohna Road and Emaar's golf course extension land to the new upcoming office space in Sec 74 and 75 and Sector 88
- A 500MW power plant in the state should ease the electricity supply situation. Against the present electricity supply of 15-16 MM units daily, Gurgaon will get 20-22 MM units by the end of June 12
Saturday, March 17, 2012
TDS on Property Sale to Catch BlackMoney
The Government of India just a while ago introduced the new Finance Bill in the Parliament where it Orders all the authorities across India to deduct Income Tax at source for the following property transactions.
The Bill States As Follows,
194LAA. (1)Any person, being a transferee, responsible for paying (other than the person referred to in section 194LA) to a resident transferor any sum by way of consideration for transfer of any immovable property (other than agricultural land), shall, at the time of credit of such sum to the account of the transferor or at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to one per cent. of such sum as income-tax thereon.
(2) No deduction under sub-section (1) shall be made where consideration paid or payable for the transfer of an immovable property is less than fifty lakh rupees in case such immovable property is situated in a specified area, or is less than twenty lakh rupees in case such immovable property is situated in any area other than the specified area.
(3) Where the consideration paid or payable for the transfer of an immovable property is less than the value adopted or assessed or assessable by any authority of a State Government for the purpose of payment of stamp duty in respect of transfer of such immovable property, the value so adopted or assessed or assessable shall, for the purposes of sub-section (1) or sub-section (2), be deemed to be the consideration paid or payable for the transfer of such immovable property.
(4) Notwithstanding anything contained in any other law for the time being in force, where any document required to be registered under the provisions of clause (a) to clause (e) of sub-section (1) or sub-section (1A) of section 17 of the Indian Registration Act, 1908, purports to transfer, assign, limit or extinguish the right, title or interest of any person to or in any immovable property and in respect of which tax is required to be deducted under sub-section (1), no registering officer shall register any such document, unless the transferee furnishes the proof of deduction of income-tax in accordance with the provisions of this section and payment of sum so deducted to the credit of the Central Government in the prescribed form.
(5) The provisions of section 203A shall not apply to a person required to deduct tax in accordance with the provisions of this section.
Explanation. - For the purposes of this section,-
(a) “agricultural land” means agricultural land in India, not being land situated in any area referred to in items (a) and (b) of sub-clause (iii) of clause (14) of section 2;
(b) “immovable property” means any land (other than agricultural land) or any building or part of a building;
(c) “specified area” shall mean an area comprising-
(i) Greater Mumbai urban agglomeration;
(ii) Delhi urban agglomeration;
(iii) Kolkata urban agglomeration;
(iv) Chennai urban agglomeration
(v) Hyderabad urban agglomeration;
(vi) Bangaluru urban agglomeration;
(vii) Ahmedabad urban agglomeration;
(viii) District of Faridabad;
(ix) District of Gurgaon;
(x) District of Gautam Budh Nagar;
(xi) District of Ghaziabad;
(xii) District of Gandhinagar; and
(xiii) City of Secunderabad;
The Bill States As Follows,
194LAA. (1)Any person, being a transferee, responsible for paying (other than the person referred to in section 194LA) to a resident transferor any sum by way of consideration for transfer of any immovable property (other than agricultural land), shall, at the time of credit of such sum to the account of the transferor or at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to one per cent. of such sum as income-tax thereon.
(2) No deduction under sub-section (1) shall be made where consideration paid or payable for the transfer of an immovable property is less than fifty lakh rupees in case such immovable property is situated in a specified area, or is less than twenty lakh rupees in case such immovable property is situated in any area other than the specified area.
(3) Where the consideration paid or payable for the transfer of an immovable property is less than the value adopted or assessed or assessable by any authority of a State Government for the purpose of payment of stamp duty in respect of transfer of such immovable property, the value so adopted or assessed or assessable shall, for the purposes of sub-section (1) or sub-section (2), be deemed to be the consideration paid or payable for the transfer of such immovable property.
(4) Notwithstanding anything contained in any other law for the time being in force, where any document required to be registered under the provisions of clause (a) to clause (e) of sub-section (1) or sub-section (1A) of section 17 of the Indian Registration Act, 1908, purports to transfer, assign, limit or extinguish the right, title or interest of any person to or in any immovable property and in respect of which tax is required to be deducted under sub-section (1), no registering officer shall register any such document, unless the transferee furnishes the proof of deduction of income-tax in accordance with the provisions of this section and payment of sum so deducted to the credit of the Central Government in the prescribed form.
(5) The provisions of section 203A shall not apply to a person required to deduct tax in accordance with the provisions of this section.
Explanation. - For the purposes of this section,-
(a) “agricultural land” means agricultural land in India, not being land situated in any area referred to in items (a) and (b) of sub-clause (iii) of clause (14) of section 2;
(b) “immovable property” means any land (other than agricultural land) or any building or part of a building;
(c) “specified area” shall mean an area comprising-
(i) Greater Mumbai urban agglomeration;
(ii) Delhi urban agglomeration;
(iii) Kolkata urban agglomeration;
(iv) Chennai urban agglomeration
(v) Hyderabad urban agglomeration;
(vi) Bangaluru urban agglomeration;
(vii) Ahmedabad urban agglomeration;
(viii) District of Faridabad;
(ix) District of Gurgaon;
(x) District of Gautam Budh Nagar;
(xi) District of Ghaziabad;
(xii) District of Gandhinagar; and
(xiii) City of Secunderabad;
Thursday, March 15, 2012
Puravankara's Purva Seasons in Bengaluru
Puravankara Projects launches Purva Seasons in Bangalore.
Puravankara Projects, one of the leading real estate companies of the country, has launched Rs 700 crore, city centre super-luxury project Purva Seasons in Bengaluru. This property institutes the idea of 24+ hours Lifestyle.
With its inviting landscape and prime location, these 2 and 3 BHK apartments ranging from 1392 square feet to 1980 square feet are the epitome of luxury, comfort and convenience. The project development totals a 1.08 million square feet and has 660 units.
Purva Seasons with its well-planned and aesthetically designed apartments is undeniably an elite setting in the heart of the city. The project offers a state-of-the art building with world-class specifications. The amenities include a very large one of its kind clubhouse, swimming pool, outdoor sport facilities amongst others for a modern living, in a neighborhood that lets the homebuyer experience an enriching lifestyle.
Wait for the Pricing and Other Details.
Puravankara Projects, one of the leading real estate companies of the country, has launched Rs 700 crore, city centre super-luxury project Purva Seasons in Bengaluru. This property institutes the idea of 24+ hours Lifestyle.
With its inviting landscape and prime location, these 2 and 3 BHK apartments ranging from 1392 square feet to 1980 square feet are the epitome of luxury, comfort and convenience. The project development totals a 1.08 million square feet and has 660 units.
Purva Seasons with its well-planned and aesthetically designed apartments is undeniably an elite setting in the heart of the city. The project offers a state-of-the art building with world-class specifications. The amenities include a very large one of its kind clubhouse, swimming pool, outdoor sport facilities amongst others for a modern living, in a neighborhood that lets the homebuyer experience an enriching lifestyle.
Wait for the Pricing and Other Details.
Friday, March 09, 2012
Top 10 Builders of Bangalore
Here are the Top 10 Developers of Bangalore / Bengaluru. Descending Order of Market Share.
Prestige Group
Sobha Developers
Puravankara
Brigade Group
Adarsh Developers
Mantri Developers
Shriram Properties
SJR Group
Mahaveer Reddy
Concorde Group
Prestige Group
Sobha Developers
Puravankara
Brigade Group
Adarsh Developers
Mantri Developers
Shriram Properties
SJR Group
Mahaveer Reddy
Concorde Group
Friday, March 02, 2012
DLF Worth just 50% of its Vaulation - Veritas
DLF known for its controversial IPO where small investors were looted is facing irk from professional Investment Research firm based out of Canada and very well known for its unbiased and bold SELL Reports due to bad management practices.
Veritas does not believe in the the disclosed book equity and asset base of the Company. DLF via its dealings with DLF Assets Ltd, from FY07 to FY11, the Company inflated sales by at least INR 11,236 Cr and its profit before tax (PBT) by INR 7,233 Cr. DLF has undertaken questionable related party transactions to boost the value of DAL prior to its acquisition by DLF, thereby subverting the interest of minority shareholders via a higher purchase price for DAL.
Fake Promises of DLF Management:
JV with Hilton has ended and Silverlink Resorts is up for sale
build mega townships (exited Bidadi in Karnatka and Dankuni in West Bengal)
build a mega convention center in the NCR region (exited in 2009)
None of the above have materialized.
Veritas finally concludes the report with a best case valuation of DLF is worth INR 100/share - less than half its current stock price of INR 226.9.
Ministry of Corporate Affairs Orders Inquiry: The MCA has ordered an inquiry to Audit the Books of Accounts of DLF after it has received complaints from Investors.
Veritas does not believe in the the disclosed book equity and asset base of the Company. DLF via its dealings with DLF Assets Ltd, from FY07 to FY11, the Company inflated sales by at least INR 11,236 Cr and its profit before tax (PBT) by INR 7,233 Cr. DLF has undertaken questionable related party transactions to boost the value of DAL prior to its acquisition by DLF, thereby subverting the interest of minority shareholders via a higher purchase price for DAL.
Fake Promises of DLF Management:
JV with Hilton has ended and Silverlink Resorts is up for sale
build mega townships (exited Bidadi in Karnatka and Dankuni in West Bengal)
build a mega convention center in the NCR region (exited in 2009)
None of the above have materialized.
Veritas finally concludes the report with a best case valuation of DLF is worth INR 100/share - less than half its current stock price of INR 226.9.
Ministry of Corporate Affairs Orders Inquiry: The MCA has ordered an inquiry to Audit the Books of Accounts of DLF after it has received complaints from Investors.
Tuesday, February 28, 2012
Price List of Various Sobha Developers Projects
Here is Price List of Various Projects of Sobha Developers in Bangalore / Bengaluru, Chennai and Pune.
Price List of Sobha Developers Projects in Bangalore
Bangalore Sobha City - Phase II Near Hebbal flyover - 4500 / sft
Bangalore Sobha Pristine Belandur, ORR Residential apartments 4500 / sft
Bangalore Sobha City - Phase I Near Hebbal flyover Mixed-use residential 4500
Bangalore Sobha Signature Off Sarjapur Road Residential apartments 4500
Bangalore Sobha Forestview Kanakpura Road Residential apartments 4500
Bangalore Sobha Habitech Hopefarms, Whitefiled Residential apartment 4750
Bangalore Hosakerehalli Property Hosakerehalli, Mysore road Residential apartments 3500
Bangalore Sobha Tranquility Hosahalli, Kanakpura Road Residential apartments 3500
Bangalore Sobha Gladiola Thalaghattapura, Kanakpura Road Residential apartments 3500
Bangalore Dairy Circle Property Bannerghatta road Mixed use residentia 4000
Bangalore City Property Minerva Mills, Gopalapura Mixed-use residential 8000
Price List of Sobha Developers Projects in Chennai
Chennai Sobha Serene Seneerkuppam, Porur Residential apartments 4500
Chennai Sobha Meritta Pudupakkam Residential apartments 4500
Price List of Sobha Developers Projects in Pune
Pune Sobha Garnet NIBM Kondwa 3900
Pune Sobha Ivory NIBM, Kondhwa 3500
Pune Thergaon property Thergaon 3000
Price List of Sobha Developers Projects in Bangalore
Bangalore Sobha City - Phase II Near Hebbal flyover - 4500 / sft
Bangalore Sobha Pristine Belandur, ORR Residential apartments 4500 / sft
Bangalore Sobha City - Phase I Near Hebbal flyover Mixed-use residential 4500
Bangalore Sobha Signature Off Sarjapur Road Residential apartments 4500
Bangalore Sobha Forestview Kanakpura Road Residential apartments 4500
Bangalore Sobha Habitech Hopefarms, Whitefiled Residential apartment 4750
Bangalore Hosakerehalli Property Hosakerehalli, Mysore road Residential apartments 3500
Bangalore Sobha Tranquility Hosahalli, Kanakpura Road Residential apartments 3500
Bangalore Sobha Gladiola Thalaghattapura, Kanakpura Road Residential apartments 3500
Bangalore Dairy Circle Property Bannerghatta road Mixed use residentia 4000
Bangalore City Property Minerva Mills, Gopalapura Mixed-use residential 8000
Price List of Sobha Developers Projects in Chennai
Chennai Sobha Serene Seneerkuppam, Porur Residential apartments 4500
Chennai Sobha Meritta Pudupakkam Residential apartments 4500
Price List of Sobha Developers Projects in Pune
Pune Sobha Garnet NIBM Kondwa 3900
Pune Sobha Ivory NIBM, Kondhwa 3500
Pune Thergaon property Thergaon 3000
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