Emerging Corridors of Delhi NCR
Aug27

Emerging Corridors of Delhi NCR

The vital factors behind the growth of satellite towns and various other NCR suburbs are mainly the close proximity to the national capital, availability of spacious residential units, inexpensive property prices and rapidly growing infrastructure. However, the improving property prices in Delhi, NOIDA and Gurgaon along with a scarcity of housing units to accommodate budding migrant populace has vitally impelled the real estate market in satellite towns and suburbs. What Industry Experts Say? According to the industry experts, the real estate sector in the NCR has undergone tremendous changes in the last decade. Discrepancy in the demand and supply equation previously emerged as the chief reason for the existence of new corridors in this region. This in turn has greatly resulted in further addition of novice urban accumulations to leap the increasing demand and response for real estate asset programs. Industry experts also predict that the new master plans are also a reflection to the aforesaid phenomenon. Moreover, as these localities develops completely, saturate and gets established with advancement of physical as well as social infrastructure, the affordability factor would certainly diminish forcing the populaces to move away from the region in search of the property to invest in. Rapidly Emerging Regions Below mentioned are a few of the hotspots, which are rapidly emerging as top locations for successful real estate development in the NCR. 1. NOIDA-Greater NOIDA Expressway The NOIDA-Greater NOIDA Expressway location has emerged as a great residential destination. This locality has a terrific potential for the development of other asset classes such as hospitals, retail outlets, shopping or entertainment outlets, and hospitals. These asset classes are yet in an emerging phase of development. Industry experts believe that the rents and prices of commercial properties in this region will tend to continue to be low in comparison to other commercial regions of NCR. They also predict that this reason makes it as a promising hotspot for corporate. Also, with the increasing rate of migration, the region will also provide the essential incentives for the high demand and growth of other vital asset classes.  Recent reports also reveal that the location has already witnessed intensified activity in office and establishment space development merely with large number under construction in several prominent sectors. Furthermore, it is believed that major IT industries and businesses have planned to develop their campuses and there is also possibility that they might use the region to set up the new business ventures and or expand their existing operations in this region. Enhanced connectivity via extension of NOIDA metro line is expected to offer the essential impetus for this corridor. The already existing expressway in...

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Save Delhi – one of the most polluted cities in the world
Aug25

Save Delhi – one of the most polluted cities in the world

Air pollution poses a greater impact on the human health. It’s not surprising to know that pollution in India is a never ending problem. And, to add to the woes, India has fallen down the Environmental Performance Index ladder, from 32nd rank to 155, as per the new survey conducted in 2014 by the agency. The Indian capital, Delhi has earned the title of the world’s most polluted city, unfit for human living, in the World Health Organization’s (WHO) recent report. The organization describes Delhi as the most polluted cities of the world, by considering the fact that an estimated data for fine dust was “improper” in a selected manner. The report further highlighted the fact, that Delhi & NCR ambient air quality contains two major pollutants namely PM 10 and PM 2.5 are high in quantity, when one of the Cabinet’s Minister retorted that Sulphur Di-oxide is in perfect percentage as per the prevailing air quality norms of the region. Despite, the hue and cry of Delhi labeled as a city with poor air quality, the Indian government has turned a blind eye to this critical matter, because the Public Health continues to remain lower on priority. Will there be a respite for the people living in the city? Magnitude of Air Pollution from Recent Survey The recent survey on global Environment Performance Index 2014 puts Delhi on the top spot among the most polluted cities on the planet. But are we proud of our failures? Where on one hand the National Capital is witnessing massive growth and development, with 810 million vehicles being registered every year, on the other, the rising air pollution is matter of deep shame and concern. The city’s atmosphere contains the highest levels of pollution, with particulate matter of 2.5 million pp in the world, nearly five times more than the safety threshold for humans. WHO’s latest survey also indicates that the air pollution is worsening every day, with officials  stating that numerous factors contribute to the increase in the fossil fuel consumption, including coal fired power plants, vehicles, inefficient energy use in building construction, and using biomass fuel for cooking and heating. As from a 2012 survey, air pollution has killed nearly 7 million people across the globe, which is a biggest threat to the health of the environment on the planet. Furthermore, the report stated that out of world’s 20 dirtiest cities, India has 13 to its crown. Among those 13, New Delhi, Gwalior, Patna and Raipur are top runners. The increasing use of coal-fired power plants, dung fuel used for cooking, and vehicle smog are the main contributors for air...

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India Needs Real Estate Investment Trusts
Aug18

India Needs Real Estate Investment Trusts

Real estate sector in India is presently undergoing an exciting phase where new trends and policies are being considered with an increased frequency. It is like a brave new foray for this industry, which has been suffering from disarray and stagnation since a long time. Originally, an unorganized sector, today it is undergoing a major transformation to develop in a more organized industry in the coming times. So what has changed suddenly necessitating such alterations? Some of the probable reasons may be,     Entry of global players     Foreign investments     Involvement of corporate houses During the past decade, a phenomenal growth is evident in the construction industry due to the rising income levels of consumers, rapid urbanization, and Foreign Direct Investments (FDI). Ever since the country opened its doors to FDI in 2005, reforms related to the Real Estate industry started gaining pace. Reforms have been sweeping across all aspects of this industry including,     Land acquisition     Customer interest     Industry regulations In the coming times, further liberation of policies related to FDI is being sought. Also in the offing is the introduction of the sorely needed Real Estate Investment Trust (REIT). What is REIT? REIT refers to a company that owns and operates profit generating real estate assets. Securities and Exchange Board of India (SEBI) has been contemplating this novel mechanism of investment for some time now. REITs generally own all kinds of commercial properties ranging from shopping centers, apartments, offices, hotels, hospitals, and warehouses. According to the World Bank, REIT refers to the security purchased by an investor for real estate investments. SEBI has finally broken its silence on the matter of approving REITs in India, after seven years. The regulatory body has finally cleared way for the investment property-backed vehicles to go for local exchange listings this month. By all indications, the rules seem quite relaxed with the main features being,     Green signal to investor selling & pooling of properties worth Rs. 5 billion ($82M)     Initial public offer needs to be at least ½  half of that size     Go ahead for Infrastructure Investment Trusts (InvITs) Infrastructure Investment Trusts will allow developers monetize infrastructure assets via listing on stock exchange. With approval for InvITs, investors now have the independence to own toll road tracks or data undersea cables directly. Crucial aspects based on SEBI guidelines A.    Eligibility Criteria Setup of real estate investments trust with trust deeds registered under 1908 Registration Act provisions. Involved parties include principal value, trustee, manager, and sponsor. The trustee will hold assets under REIT for investors benefit. To ensure a professional management, the manager should have a...

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Power Demand in Delhi & NCR
Aug09

Power Demand in Delhi & NCR

The sad plight of Delhi and NCR facing power cuts is evident for all to see. According to reliable news sources, the power demand in Delhi & NCR city are showing a record all-time high at 5810 MW, a new record of this sort. Despite electricity reforms introduced in 2003 for reduction in AT&C losses, power theft, power cut, with privatization of generation and distribution the dismal picture has changed little. Average users still suffers frequent outages mostly due to a generation capacity shortfall coupled with the peak demand, during the afternoons and evenings in summers. Distressed citizens blame the present condition on lack of clear decision-making, shortage of proper infrastructural investments, and absence of any forward planning from way back in 2002. A recent Daily Mail report has clearly delineated the plight of people residing in Delhi and nearby areas. The situation is worst in Rohini, Mukherjee Nagar, Uttam Nagar, Adarsh Nagar, Safdarjung Enclave, Lajpat Nagar, C.R. Park, Mayur Vihar, Dwarka, Janakapuri, and other parts as well. Sadly, even the NCR- Ghaziabad and NOIDA is no better. Here, the power outage extends for hours on an end, making life miserable as the mercury soars outdoors. People living in Gurgaon are reeling under acute power shortage, their situation aggravated due to unreliable water supply as well. More than 2.5M residents of the city have to suffer power outages that mostly extend even beyond 12 hours on a regular basis! The majorly affected areas are R.D. City, DLF Area, Baldev Nagar, Sector 10, Sector 56, Kaman Sarai and Sushant Lok. No wonder, in view of the excessive power cuts people complain of sleep deprived nation, tiredness, and sleepless nights leading to work inability in the mornings. Healthcare centers are unable to do their job properly with their electricity dependent equipments unable to work through extended outages. Mosquito menace is also adding to the woes of the people. Even public transport as railways and metro services are also getting disrupted because of this. Reasons for Power Outage Huge Demand One of the main reasons for frequent power cuts in Delhi and NCR is the constantly growing demand, which the dilapidated grids are unable to meet. According to a recent Economic Times survey, 26 to 28% people living in these areas blame both increase in demand and delayed approval of power projects for outages. Daily Mail reports that current power requirement in Delhi is 5800 MW and a get this availability is only 5300 MW. The city is able to absorb just 400 MW. Availability of good quality transmission network seems to be the only solution that will help to produce an...

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Internet Influencing Real Estate Decisions worth Billions in India
Aug08

Internet Influencing Real Estate Decisions worth Billions in India

In the era of Information, Communication and Entertainment, the world, especially the Real Estate industry, has evolved to be increasingly digital. Over the past decade, more and more consumers have been witnessed to search the Internet for gathering information, and to take smart buying decision. They look for valuable information on search engines, read review sites, watch videos, and even research on their Smartphones and tablets on the go. Modern India pictures, the true scenario of how more and more home buyers are seeking information online before signing the property deal. According to Google, the search engine giant, the Internet is estimated to be influencing real estate decisions worth about $43 billion in India. The market study reports that over 50% of real estate buying decisions in India is influenced by the Web, today. Furthermore, this phenomenal growth in the Internet research trend is not merely limited to metropolises, but has also influenced the real estate buyers in Tier II cities. Google calls this trend as “Zero Moment of Truth;” where shopping is not merely limited to visiting an open house or a broker’s office, seeking counsel on the latest property trends, hot properties, what to buy, and how much to pay. Modern technology-empowered consumers do their homework well, and in advance, before making the property buying/selling decision. They conduct scrupulous Internet research, read avidly through reviews and ratings, consider styles and prices, and then search again. They see advertisements on television, local newspapers, and online. They gather more information from the Social Media. Key Highlights… Today, consumers are informed and urban-connected. Nine out of ten home buyers search the   property on internet and consider it as a primary research source, and 50% go online as their first step. Additionally, 1/5th of the property related searches are done on mobile devices. According to the study by Google, the real estate transaction value of both commercial and residential properties, including rentals, have amounted to $43 billion, with $12 billion for commercial properties and $31 billion for residential properties in the country. The survey was conducted across 15 cities with over 6000 respondents, which revealed that 74% of property research online was primarily focused on residential purchase and 26% on residential rental. Among these, 30% were searching for property under construction and 23% for resale property. House hunters using search engines for real estate buying decisions are actively engaged, seeking valuable information for assistance. Key highlights of the trend are: Home buyers will perform 11 searches on average before taking action on any real estate site Home buyers using Internet are 9% more likely to take action on real estate website...

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