Tag Archives: real esta

Ready homes find more buyers than under-construction flats

Six months ago, Amish Kapoor turned down an offer from a Noida-based broker for a ready apartment, saying it was priced more than the market.

The 30-year-old, who works as a flight steward with an international airline, said he would rather go for an under-construction flat, which came a tad cheaper. He is now ruing that decision.

Last week, when he went hunting for an apartment in the same area, the ready flat was 35% more expensive, while the under construction apartment, where construction seemed to have slowed down, was on offer for the same price as last time around.

Prodded by his family, he decided to shell out more and buy the ready flat. “At least we can move in right away and save the money we pay as rent,” he says.

Demand for ready homes is growing as homebuyers are becoming even more weary about the viability of projects that are under construction. If the price gap between under construction apartments and ready apartments about six months ago was 20%, it has increased to 35% today.

“It is important to note that the appetite for homes is still high. Only, buyers are unsure about the financial health of developers and not willing to bet on projects that are still to see the light of the day,” says Sanjay Dutt, chief executive officer – business at property advisory firm Jones Lang LaSalle.

In sector 93 on Noida Expressway, for instance, a residential project that was delivered about six months ago and was selling at a price of 6,500 per sq ft is now selling at 7,500 per sq ft.

Another project, which is under construction in the same area, is available at around 4,500 per sq ft. In Mumbai’s Lower Parel area, homes that can be occupied immediately are being sold upwards of 40,000 per sq ft while properties still under construction can be had at 28,000-30,000 per sq ft.

“Delivery uncertainty is pushing prices of ready apartments higher,” says Abhay Khemka of Khemka Investments and Properties in Gurgaon. On Golf Course Road in Gurgaon, a project where construction is visibly slow is selling for 8,000 per sq ft while another where possession will be handed over in the next two months is fetching the developer 11,000 per sq ft.

According to a recent report by research firm PropEquity, residential projects in the top three real estate markets in India are facing massive execution delays – around 45% of all projects that were launched prior to 2008 in these three markets are still under construction.

“Buyers today are putting a bigger emphasis on timely completion of projects. This gap will narrow as construction activity picks up,” says Ajay Chandra, managing director of Unitech, which has projects that different stages of completion in Noida, Gurgaon and other cities. Even in some of their projects in Gurgaon, this gap can be seen starkly.

While there will always be buyers for a new project being launched, the psychology of home buyers in the current market environment is different. “The risk profile of buyers has changed,” says Chandra.

In the last one year or so, the market has seen interest rates being increased 13 times and the economic slowdown deepening with news about a crisis in Europe percolating. There is still uncertainty about salary hikes this year, all of which has made many buyers risk averse.

“There is a general increase in risk perception among buyers, which is pushing them towards more certainty that comes with ready properties,” says a Mumbai-based developer who did not want to be named.

For developers, though, this widening gap is throwing up an incentive to finish their projects on time, as that would mean higher realisable value. “Developers might have to look at higher investments in a project from their end as a lot of the sales would happen at the end,” he says.

“In recent months, we have got buyers who are confused about which one to buy. Eventually, they are willing to stretch their budget a little to settle on the side of certainty,” says Sumit Joshi, director of Noida-based real estate brokerage firm Real Credit Consultancy.

Source: http://articles.economictimes.indiatimes.com/2012-04-07/news/31304847_1_residential-project-ready-homes-new-project

Think Green. Think Us.

think-green

With a view to contribute positively towards the society, Tata Housing Development Company Limited pioneered sustainable green developments in India at a time when such concept has just picked up pace in the west. It has been one of the biggest proponents of green initiatives in the Indian real estate space under the guidelines of Indian Green Building Council (IGBC). The company’s first green development executed under this motto is Xylem, which is also Bengaluru’s first LEED (Leadership in Energy and Environment Design) Gold-certified green IT Park. The design boosts employee productivity as well as helps reduce the operational cost of the building. This is one of the most environmentally friendly buildings of its size in the entire country.

Tata Housing’s recently launched Myst is India’s first residential development designed using biophilic architecture, a design ethos that integrates nature and architecture to create living spaces that are invigorating and comforting. Myst’s unique design incorporates natural elements like flowing water, green roofs, and airy open living spaces to reconnect residents to nature. It’s an approach that brings residents closer to the pristine nature of the Kasauli hills, while presenting them with every luxury. The company’s other properties such as Aquila Heights, the tallest residential development in Bengaluru and Raisina Residency in Gurgaon are also IGBC gold certified green developments, while the company’s premium luxury villas – Prive at Lonavala are platinum rated by IGBC.

As on today, Tata Housing is developing over 44 million sq. ft., which is under various stages of developments, all built under the guidelines drawn by IGBC. Tata Housing aims to provide customers a whole-building approach in all key areas of human and environmental health with natural ventilation and illumination, designed to work with the exterior environment. These advanced standards optimize comfort and utility thereby contributing to an excellent living and working lifestyle.

Some benefits are:

  • Energy savings: 20 – 30%
  • Water savings: 30 – 50%
  • Enhanced air quality
  • Excellent day lighting
  • Health & well-being of the occupants
  • Conservation of scarce national resources
  • Enhance marketability for the project

This policy confirms the commitment of TATA HOUSING DEVELOPMENT COMPANY LTD to carry out its health and safety responsibilities and duties in a manner designed to achieve and maintain a high standard of protection for our employees, the environment, property, equipment and the public in the conduct of our business. While complying with the governments’ Environmental Health and Safety regulatory requirements, we will also meet or exceed recognized standards as an integral part of this policy.

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