Commercial property in Greater Noida west | Noida Extension
There are lot of upcoming commercial projects in Noida & Greater Noida. If you are looking to invest in commercial project then Noida-Greater Noida is the right choice. Competition is already established in Noida-Greater Noida areas. Before investment in any project, we have to understand that investment in fully constructed running project will always be a costly and prices of those property are already on a peak, so exit from project will not be profitable. Upcoming and under construction commercial project gives you the benefit of low price, discounts and payment flexibility. We have done some research work and analysis on the upcoming projects in Greater Noida west which are as under:
- Brand
TREHAN IRIS (Upcoming Project) | SAYA SOUTH X MALL | GAUR WORLD SMART STREET MALL | MAHAGUN MARINA WWALK MALL |
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- Location
TREHAN IRIS | SAYA SOUTH X MALL | GAUR WORLD SMART STREET MALL | MAHAGUN MARINA WWALK MALL |
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- Architecture & Design
TREHAN IRIS | SAYA SOUTH X MALL | GAUR WORLD SMART STREET MALL | MAHAGUN MARINA WWALK MALL |
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- Leasing
TREHAN IRIS | SAYA SOUTH X MALL | GAUR WORLD SMART STREET MALL | MAHAGUN MARINA WWALK MALL |
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- Price
TREHAN IRIS | SAYA SOUTH X MALL | GAUR WORLD SMART STREET MALL | MAHAGUN MARINA WWALK MALL |
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- Payment Plan
TREHAN IRIS | SAYA SOUTH X MALL | GAUR WORLD SMART STREET MALL | MAHAGUN MARINA WWALK MALL |
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- Expected Possession Date
TREHAN IRIS | SAYA SOUTH X MALL | GAUR WORLD SMART STREET MALL | MAHAGUN MARINA WWALK MALL |
December 2024 (Phase -1 till 5th floor) | September-2023 | September, 2024 | May 2024 |
After the analysis, it has been observed that among the above projects, Gaur City Center, Mahagun Marina Walk and Trehan Iris Broadwalk projects has a separate and superior concept and architecture, these three projects are based on leasing model where the builder is committed to get the mall leased and make it financially viable for the investor. . Further, Trehan projects gives business opportunity to women entrepreneurs by introducing a theme called Verve on the second floor of their project. With swelling population of Greater Noida west, this is the right time to buy a commercial property in this area. Second floor atrium facing shops in a good mall can give a good return as investment in such shops is comparatively smaller ( than ground and first floor shops ) and the rentals and profitability is high.
Commercial property investment in Noida | Greater Noida
Real Estate is the most popular investment option in the world. After Covid-19, several industries across sectors are experiences uncertainty, however real estate will continue to be a safe option post covid-19. Noida came into administrative existence on 17th April 1976. Due to its proximity to Delhi, it has developed into a land of opportunities and demand for properties. Noida come out as the most important investment destination of NCR. There are some reasons which justified that why one should buy commercial property in Noida:
- Location & Connectivity:
- The city is very well connected to Noida-Greater Noida Expressway and Yamuna Expressway.
- Noida International Airport, also known as Jewar Airport is under-construction international airport being constructed near the town of Jewar in Gautam Buddh Nagar, Uttar Pradesh.
- Its accessible from different key locations such as Buddh International F1 Circuit, Close to renowned MNCs, Connected with 5 Expressways, Near proposed Metro Station.
- Infrastructure & Development :
- Noida has emerged a hot spot for IT and IT-enabled service industry offering IT, ITeS, BPO.
- The major advantages include excellent power situation, engineering colleges and other educational institutions in Noida.
- Increased job opportunities will result in a significant increase in the demand for homes in the city. Accordingly, the value of commercial properties is only going to rise in the future.
- Noida ranked Best City in Uttar Pradesh and Best City in Housing in all of India in awards conducted by ABP news in 2015(Best City Awards 2015).
- Noida replaced Mumbai as the second-best realty destination, according to an analyst report.
- Investment in Noida :
- Noida and Greater Noida, provide affordable alternatives to High class, middle class and lower-class buyers in the national capital region.
- Property prices in Noida are significantly lower in comparison of Gurgaon. However, as per existing on-going development, the difference is going to reduce over next few years.
- Several builders and developers are significantly investing in commercial developments. Hence, who invest in Noida's commercial property may expect a steady profit in the future.
- Further, After RERA, Property registration in Noida has been simplified as new rules and regulatory regulations.
- Price & ROI :
- Commercial property in Noida was around Rs 16000/- per sq ft. After 5 years, Commercial property has jumped from to Rs. 16000/- to Rs 32000/- per sq ft.
- Commercial property has appreciated 100% in last 5 years.
- Noida has a potential to offer a decent ROI according to the kind of developments which are happening in the region.
- So, this is the best time for investment in Noida and Greater Noida as the price of real estate will surely go up.
Hence, buying a commercial property in Noida is a good investment for the secure future and steady quality life of individuals and families.
Food court price in Greater Noida west
Food courts in malls is a booming business as it makes good profit and the rent one gets in a food court is almost as good as that of a ground floor shop. One can get around Rs 150 sq ft of rental from a food court. Rental in most of the food courts is not direct as the companies give rental in terms of revenue sharing. Revenue from any Indian company is around 9% of profit and from any international food company is around 6%. Entire food court is generally managed by one company and the profit is distributed to the owner of the food court.
In Greater Noida west there is a high demand of food courts from buyers. The main reason for high demand of food court is good rentals and low investment. Food industry is also taken as recession free industry and does fairly well even in pandemic lockdown situation. The price of food court in Greater Noida west of best three malls are as under :-
- Mahagun Marina Walk - Rs 16500/- per sq ft
- Saya SouthX mall - Rs 20500/- per sq ft
- Trehan Iris Broadway Greno west (likely on launch) - Rs 17500/- per sq ft
Extra charges on above three malls are as under :-
- Mahagun Marina Walk - 265 /- per sq ft plus electricity , water and sewage connection charges (as per actual) plus 12 months advance monthly maintenance charges @ 35 /- per sq ft.
- Saya SouthX mall - Rs 600/- per sq ft plus Rs 60,000/- approximately
- Trehan Iris Broadway Greno west (likely on launch) - Rs 500/- per sq ft approximately
Maintenance on the food court on the malls are as under :-
- Mahagun Marina Walk - likely Rs 34 per sq ft per month
- Saya SouthX mall - Rs not specified per sq ft per month
- Trehan Iris Broadway Greno west (likely on launch) - Rs 17 per sq ft per month
Apart from the above the interiors of the food court is done as per the theme of the mall. It is likely that Threhan Iris Broadway Greno west will spend good amount on interior of the mall and also on the food court of the mall. Apart from above parameters, loading, number of movie halls, entertainment zone, layout of mall, theme of mall and leasing makes a big difference in the over all pricing of a foodcourt.
Investment Commercial property vs Residential in Noida | Greater Noida west
Wisdom comes with time and in many cases it is passed on from one generation to another. However, in many cases either it comes too late or it comes after making mistakes. This is true in all spheres of life, including investment in real estate.
When many of us talk about real estate, we have only one thing in mind, that is, residential properties in general. For majority of people real estate investment is confined only to residential properties as they do not consider any other options. This approach is attributed to following major reasons:-
- Interest rate on loan for residential property is lower than commercial property
- House is considered as essential requirement
- People do not want to stay in rented house because of many nuances associated along with it
- Lack of guidance about investment in commercial property
- Tendency to avoid venturing into unknown field of investment
- Ignorance about commercial real estate investment
Two main components of real estate investment is rent and price depreciation / escalation. Rent is annual rent that one gets out of a property after deducting all expenditures. Price depreciation / escalation is the decrease / increase in the cost of the property after investment, this mostly depends on demand versus supply and inflation in the cost of raw material. Raw material in real estate is cost of the land and construction material. Price depreciation is a rare phenomenon in real estate, however, it may happen because of lack of demand, taxes / overhead cost, artificial inflation of prices and unrealistic expectations by investors.
Invest in one residential property makes lot of sense, however, making more than one investment in residential property is not recommended. There is no point in making a house and giving it on rent to someone else to live into, as rental income from a residential property is just 2 to 2.5% of the cost of investment. In many cases the rental return from residential property is even less than 2% of total investment.
Price appreciation of a residential property mostly depends on demand and supply equation. If demand in particular area is expected to rise then the price of such property will increase. If price of property has increased sharply in last few months / years then chances of further appreciation is less.
Commercial property on other hand can give rental income that is four times the rental income of a residential property. A good commercial property, if taken initially at under construction stage can give rentals up to 12% of the investment. Average rental from a good commercial property can be taken as 8%. Very low risk investment in commercial property can give rental returns of 5 to 6%. Price appreciation of commercial property again depends on the demand and supply of such property in that area.
Commercial property investment vs residential investment in Greater Noida west. When talking about residential and commercial property in a new location like Greater Noida west, the price escalation of residential property has gone up from Rs 2800 per sq ft to Rs 3700 per sq ft in last 5 years. In same time period the commercial property has jumped from Rs 12000/- per sq ft to Rs 34000/- per sq ft in certain areas. In terms of percentage the residential property grew 32% and commercial property grew 183% in five years. Rent of gourd floor commercial property in Greater Noida west is around Rs 160/- per sq ft per month and that of a residential property is Rs 7/- per sq ft per month.
Commercial property investment vs residential investment in Noida. Commercial property in Noida was around Rs 16000/- per sq ft when residential property was Rs 3800/- per sq ft. Commercial property in five years is around Rs 32000/- per sq ft in Noida and residential property in Noida in same duration is around Rs 5500/- per sq ft. In terms of percentage residential property has appreciated 44.7% and commercial property has appreciated 100%. Rent of a ground floor commercial property in Noida is around Rs 160/- per sq ft per month and that of a residential property is Rs 14 per sq ft per month
Commercial property provides social security as it is taken as a source of steady monthly income i.e monthly income that is 3 to 4 times the income of a residential property. Commercial property can also gives an opportunity for self employment by starting ones own business. Vacant commercial properties generally provide high appreciation once it is rented, buying a vacant commercial property , putting it on rent and selling it as a pre rented property results in good profit.
Buyers of commercial properties are always present in the market, reason for this is beyond the scope of this article.
Most of the business class families invest in commercial properties as they see good business sense in doing so. Salary class people are mostly oblivious of the investments in commercial properties.
Overall, investment in commercial real estate is something that one should look into, such investment is likely to result in high monthly income and thus, improves the living standard and quality of life of individuals / families.
Property Rent agreement registration in Noida
Property rent agreement registration is mandatory in Noida as per Noida Authority rules, registered agreement is also a valid address proof at most of the places. Notarised rent agreement is valid for rent agreement of 11 months, however, in Noida same is not considered valid. If you take loan or want address change or make passport then you need registered rent agreement in Noida. Getting your agreement registered takes some time and money. Total charges for getting a rent a rent agreement registered in Noida is as under:-
- 2% stamp duty
- 1% court fees
- Rs 5000 lawyers fees
- Rs 600 other minor charges
If case rent agreement registration is for more than one year, then one has to get the registration done for minimum three years. Cost of registration of rent agreement is shown as an example, lets say, if you take a flat on a rent at a monthly rent of Rs 30,000/- per month then the rent for three years will be Rs 10.8 lacs. Then the cost of registration of rent agreement in Noida will be as under:-
- Total Amount = Rs 10.8 lacs
- Stamp duty is 2% ot total amount i.e 2% of Rs 10.8 lacs = Rs 21,600/-
- Court fees will be 1% of total amount i.e 1% of Rs 10.8 lacs = Rs 10,800/-
- Lawyer charges for getting the rent agreement registered is = Rs 5000/- to 7000/-
- Other charges = Rs 600/-
Thus total cost of getting a rent agreement registered in Noida is ( Rs 21,600 + Rs 10,800 + Rs 5000 + Rs 600 ) total Rs 38,000/-. This amount is almost equal to 38 days of rent of the flat in consideration. The process for getting the property rent registration done in Noida is as under:-
- One is required to go to court in sector 32 Noida or any other court nearby
- Get a proof of sample registered agreement from a lawyer
- Buy online stamp of 2% from the authorised stamp sellers
- Make rent agreement on stamp paper of 2 % with sign of lessor and lessee and two witnesses
- Submit the documents in the court
- Both lessor and Lessee then go to court and verify the document. Presence of witnesses is also required in the court
- Generally submission rent agreement documents in court and verification of documents is done of the same day
Documents required for registration of rent agreement in Noida are as under:-
- PAN Card of lessee and lessor
- Adhar card of lesse and lessor
- Adhar card of two witnesses
- Two photographs of lessee and lessor
- One photograph of each witness
- Details of authority of ownership of property by lessor, property registration details
Rent agreement registration in Noida comes out to be almost 4% of the cost of the total amount in many cases. For more details regarding registration of rent agreement please contact us.
What are profit margin on food court
By Amit :- Ph 8375924100
Food court make high profit in a mall because of better business planning. Firstly, all shops in a mall are scattered except food court, all food outlets are concentrated at one place with good number of sitting facility, this attracts customers to one common place.
Secondly, there are variety of food available which can caters for all different food choices of people visiting food court. The food is cheaper than what one finds in a fine dine restaurants as the staff at the food court is common and mostly the food is provided on self service basis.
Thirdly, service at food courts is fast and ambience is good. Running of food court does not require any publicity or advertisement, all customers are able to locate the foodcourt area and the challenge for a food court owner is just to attract the customers from the table to their counter. Most of the builder ensure that the food court provide variety of foods with little or no competition of same kind of food. A well planned food court will have one south Indian counter, one pizza counter, one burger counter, one punjabi food coutner etc.
So, food court is a profitable business and the profit varies from city to city and location to location, it also depends on the cost/rent of the food court. At good location a food court if purchased on pre launch can proved a rental return of up to 14% in a good location. An example of the same is as under:-
- On launch a food court of size 300 sq ft is purchased for Rs 53 lacs.
- At possession the cost of the food court is say Rs 90 lacs
- Rent of the food court per month is Rs 60,000/- per month
- After few months of business, the market price of the food court goes up to Rs 1.2 crores
- Cost of the commercial property is calculated as per the rental return of the property and stability of the rent
- Rental ROI of a commercial property for sale is calculated on 4 to 6% for a good brand
If one opts to open his/her own business by taking a franchise of any good food brand then the income from food court can reach around Rs 2 lac per month, Pilferage from food courts is less as cash transactions at food court is not possible at counter. One needs to charge a transaction card to buy food at food court complex. One can install CCTV cameras to check pilferage of food items at ones counter.
At a good location a food court can give rent which is five times the rent of a flat in same area of same cost. Price escalation of food court can be as high as 6-7 times the price escalation of a residential property. Food court is considered as one of the best investment of real estate.
A smaller size food court of size 300 sq ft to 500 sq ft should be preferred as smaller size food courts are high on demand and availability of such food courts is less. Moreover, the common sitting area is common for all food courts, irrespective of the size of the foodcourt. Food court worth Rs 50 lacs will get same sitting area as a food court of Rs 2.5 crores.
Food courts of size 300 - 400 sq ft are mostly not available in the market as the same are picked by investors in bulk during launch of any project. Smaller size food courts give more profit and are easy to liquidate.
To get good profit out of a food court one has to understand the food habits of the community, the location of the food court and management should be good. Good hygiene and quality of food should be the top priority of food court owners. A good chef can make whole lot of difference in any food related business. Management of a food court should be good and there should be zero pilferage from the shop. Good incentive schemes work wonders with employees, target based incentive schemes keeps the employees motivated and ensures good distribution of profit at all levels. When food court outlet becomes popular then additional profit can be expected from the franchise model where income can be generated from various other cities and malls by giving franchise and taking profit from these outlets. Food business is an evergreen business and it flourished in all situations. With change in eating habits of people and high number of migratory population, profit margin of food court business will keep increasing in future,
For best deals contact Ph :- 8375924100
Food court vs residential investment
Comparison of commercial food court investment vs residential investment shows that profit from a food court investment is much higher than that from a residential property investment. In Greater Noida west / Greater Noida flats worth Rs 1 crore gives a rental of Rs 14000/-. Out of this amount 30% goes into taxes.
Food court in a mall worth Rs 1 crore, when invested in the right time, can give a rental of around Rs 70,000/- per month. This is the case when food court is taken on initial launch price. With construction of malls the cost of food court goes high, till possession the cost of a food court that was of Rs 1 crore reaches around Rs 1.5 crores. Once rented the cost of the food court is decided by the brand in the food court, profit made by the food court and consistency in payment of rentals.
For a ready to move in food court rental return is around 5% for a good brand and 6% for local or lesser known brand. Thus if one is getting a rent of Rs 70,000/- per month then the cost of the food court will be Rs 70,000/- X 12 = 8.4 /.05 = Rs 1.40 crores.
A good brand of food court can be sold for rental ROI of 4.5% that means the cost of the food court will be 8.4 / 4.5 = 1.866 crores. On the other hand the rental return on a residential unit will be around 2 - 2.5%, this rental return is 3 times lesser than a commercial property.
When comparing food court with a commercial shop on a ground floor it is seen that there is around 15% difference in the rent, say the monthly rent of a ground floor shop is Rs 150/- to 180/- per sq ft and rent of a food court is Rs 110/- to 140/- per sq ft. However, the difference in the cost is very high, If ground floor shop is for Rs 26000/- per sq ft and food court is for Rs 14000/- per sq ft.
Other advantages of food courts is that food courts have captive footfall and sales at food court counters are almost assured. Sitting area in front of a food court is mostly available for free. Shops of specific goods are scattered in a mall but food court units are clustered together and this assures good foot fall in that area. Eating in a food court is an upcoming trend and when mixed with Multiplex cinema halls and entertainment zones / kids zones, business from the food court shops is high and steady.
Food court units are good for rental income and self use. Cost of a food court is lesser than a ground floor shop and is almost the same as that of a residential property. Food courts in good upcoming malls are available from Rs 40 lacs to Rs 1.5 crores. Rental return on investment (ROI) and profit of a food court is higher in comparison to a house or a shop.
Buy food court shops for high profits
Food court is a modern concept that has come up with number of malls coming up in various cities. Food court is mostly on higher floors and provide variety of food to the customers. If one opens up a food counter in a food court of a good mall then he is assured of good foot fall in that area. Food court owners need not advertise about their stalls as there is a large number of walk in clients for food court. ( For best food court deals contact Amit at 8375924100 )
If someone opens a food joint in a place other than the food court then he is taking a risk of isolation. If that area is not known / accepted by the customers then the chances of failure of the commercial venture is high. In food court of a good mall client visit is assured and is almost taken for granted. As there are number of food counters in a food court, the ambience of the space is more like a food carnival. In such environment chances of failure of a F&B commercial venture is almost zero.
Investment in food court is less in comparison to a restaurant, moreover, even the owner of restaurants or big brads are forced to open a food court along with their restaurants. In many malls one can see a restaurant of Dominos as well as a food court of Dominos, many such examples are there. This is because the food court has higher quick moving crowd, this ensures higher sales.
It is also a known fact that a customer is willing to pay more in a mall and pays less for a street food. One can charge 3 to 4 times in a mall for the food that is way cheaper on streets. With higher sales and better margins one can make good profit from a food court in a good mall. Even after corona virus fast food industry was one of the first industries to get revived, moreover, there is no major impact on this industry because of online business as the source of supply for online business are food counters of food court.
Branding is another major factor for F&B business. Food court is one of the best ways to promote a brand. Having a counter in a food court provides inherent branding and a customer is more comfortable if he finds same brand in number of malls. For many companies it is compulsory to have a food counter in all good malls as this defines branding and acceptability. This is one of the best ways to start a food chain business.
Food court gives better return than most of the residential and commercial properties. Investment ticket size in a food court is less and returns are higher, this the main reason why people prefer to buy food court over other residential / commercial properties.
Most of the food court is on higher floor and it is a known fact that food courts are crowd pullers. In most of the malls one has to wait to get a seat in a food court on weekends, even on weekdays there is a good number of people in food court. Food court near Multiplexes and entertainment zones fair better and has a better commercial viability.
( For best food court deals contact Amit : 8375924100 )
Food court loading on carpet area
Food court is a open space where there are counters for varieties of food. These counters are managed by either one company or many. There is generally a common sitting area in front of food court that is used by customers availing facilities of food court.
Loading factor in a food court is tricky because of the common area in front of food counter.Few builder do not load the common area on food court and as per going commercial norms the loading on the food court is 50% i.e the built up area of food court is 50% of the super area.
In most of the cases the loading of common sitting area is passed on to the food court owners and by doing so the loading of the food court touches almost 70%, this means that if the super are of the food court is 1000 sq ft then the built up area of food court is only 300 sq ft. In this case 50% loading of the commercial and 20% loading of the common area is passed on to the owner of the food court.
Another way of loading is that the built up area is loaded with 50% and common sitting area is provided with out loading i.e common sitting area is also registered to the owner with out any loading. For example if super area is 500 sq ft then the built up are is 250 sq ft and common area of say 200 sq ft is a part of the property which is taken by the buyer of the food court with out any loading. Therefore, super area is 500 sq ft + 200 sq ft = 700 sq ft and the built up area is 250 sq ft + 200 sq ft = 450 sq ft. Carpet area generally is 3% lesser than the built up area.
In some extreme cases the food court counter area is loaded by 66.66% and common area is also loaded with 50%. In this situation the loading on the property goes high and per sq ft cost on carpet area touches the sky.
Loading is one important factor that one must consider before buying a food court as it varies from property to property. As per RERA there is no fixed parameter about loading on property, however, RERA does dictate that the buyer should be informed by the builder about the super area, built up area and the carpet area that is given a buyer purchases.
Food court for sale in Noida options
Concept of a leased food court in Noida is that the food court is purchased by people and the food court is rented and run by the builder or another agency. The buy commits at the time of buying that they will get a rental for the food court after possession and the food court will not be used for self use. Various models are available for leased food court, the same are as under:-
Actual Rent:- In this arrangement the builder helps in leasing the food court and the builder takes a brokerage for getting the food court leased, however, the actual rent goes to the owner of the food court an builder does not keep any portion of the rent. This is one of the most profitable arrangement for the buyer.
Fixed Rent:- In this case the builder gives a fixed pre decided rent to the buyer, it is generally lower than the expected market price and builder can make a good rental profit in this scenario.
Fixed / Actual:- Builder in this case offer a minimum assured value and in case the rental is higher that the actual rental is given to the buyer
Fixed rent and 50% of difference if actual is higher:- A fixed rent is decided by the builder and in case the rent is higher then the difference of the actual rent and fixed rent is divided equally between the builder and the owner of the pre leased food court.
Advantages of Pre Leased food court are many. One of the biggest advantage is that the owner of the food court is assured of rental right from the beginning. Moreover, the maintenance costs of a shop in a mall is very high, therefor, in case of a leased food court the food court is never vacant and burden of paying the maintenance never falls on the owner.
Only disadvantage of a pre leased food court is that in few cases the rental return of the pre leased food court may be lesser than the self use food court and in case someone wants to start his own business then he can not do so.
Food court in Greater Noida west | Noida extension
Food court in Greater Noida west | Noida Extension
There are number of malls that are coming up in Greater Noida west which is also known as Noida extension. This is a preferred location for commercial property as there are around 2-3 lakh houses that has been delivered in this area, moreover, there are almost 3-4 lakh houses which are under construction in this area.
Food court in Greater Noida west or Noida extension is a good investment as it is coming up as a new city and people in this area are looking forward for a commercial Center near their townships. As of now there are few society shops and one mall by the name of Gaur City Center mall that is operational in this area. Gaur City Center mall is mostly managed and leased by the builder, therefore, as on date exact rental value of food court in Greater Noida west or Noida extension is not known. It is assumed that food court in Greater Noida west in a good mall will fetch a rental of around Rs 120 per sq ft per month.
With almost 4 lac families moving in at Greater Noida west in next few years, commercial ventures in this area will do well. Ground floor shops and food court shops are most preferred investments in any upcoming mall. Ground floor shops are high on investment and a good ground floor shop costs around Rs 2 crores, in comparison, food court investment starts from a budget of Rs 50 lac onwards.
In Greater Noida west one can invest in food court in following malls:-
- Mahagun Marina Walk Mall
- Gaur City Center
- Gaur World Smartstreet Mall
- Apex Park Square
- Saya SouthX Mall
- Oceans Golden I
- Bhutani Grandthum
Out of the above malls of Gaur and Mahagun Marina Walk is likely to do well, Apex and Saya are also know builder and food court is Apex Park Square and Saya SouthX will do fairly well. Golden I project has a food court on a ground floor and is also providing assured return thorough bank guarantee of State Bank of India. Bhutani Grandthum will be a main commercial centre of Greater Noida west.
Few important factors to consider while investing in a food court in this area are as under:-
- Large area of Multiplex or Superplex should be preferred. Mahagun Marina walk will have one of the largest Superplex of Delhi - NCR
- If leasing is done or supported by the builder then one can prefer investing in such a food court. Apex Park Square will support leasing of food courts
- Gaming zones and entertainment zones are crown pullers. In this category Mahagun Marina walk food court has an edge over others.
- Good brand and closeness to population center. Gaur and Mahagun are well established brand of Noida and Greater Noida west.
- Ample parking space should be there for customers visiting the mall. Gaur City Center will be having one of the largest parking area with parking space of more than 3200 cars
- Large number of people will come for thrifty shopping and one of the most preferred place for thrifty shopping will be Gaur World Smartstreet mall.
- For assured returns during investment, good parking space and ground floor food court one can invest in Golden I project. Golden I is giving assured return with a bank guarantee fo State Bank of India till possession and is also giving assured rent post possession. Apex Park Square and Saya SouthX is also giving assured rent till possession.
Bhutani Grandthum has an IT&ITES project in Greater Noida west. Bhutani is known brand that has two more projects by the name of Alphathum and Cyberthum, both projects are on Noida - Greater Noida expressway. Bhutani Grandthum and Golden I will be the major business centres of Greater Noida west, therefor, one can expect good footfall in these malls during office hours and also during week ends
Golden I is one project that will provide easy parking on ground and one can walk to food court without wasting time as food court is on ground floor. Golden I has a good visibility and with assured rent by SBI, investment in food court of Golden I is very attractive.
In general prefer a place that has a good sitting area, good ambience and open spaces. For food court in Greater Noida west or food court in Noida extension one can prefer any of the malls mentioned above. Payment plan and return on investment during construction and post possession should be evaluated before investment. As on date ( jan 2021), the going rate of food court in Greater Noida west is around Rs 15000/- per sq ft. Rate may vary from builder to builder.
Investment in Food court makes more sense
Food court is a contiguous commercial space that has number of food counters with common sitting space. Food counters are of different agencies that provide variety of food options to the customer. Food court facilities are mostly available in malls, commercial buildings, airports etc. Food court spaces may or may not have fine dine restaurants nearby. Lately the trend of food court has picked up because of number of malls sprawling in various cities.
Food court is preferred over fine dine restaurant because it provides variety of food and is quick on delivery. It is a concept that works on saving time and provides quick food for shoppers, movie goers, visitors etc. Popular malls in most of the cities are jam packed on weekends and provide good business even on weekdays. For investors food court is a good choice because of following reasons:
Food court is low on investment in comparison to commercial shops:- Average cost of a ground floor shop in any good location is around Rs 30000/- per sq ft or more (as on jan 2021). If someone plans to buy a ground floor shop then one has to shed more than 2 crores. Thus, investment in a ground floor shop is heavy on pocket and is out of reach for many commercial property buyers / investors. When compared to firs or second floor commercial shops the risk of running a business on these floor is slightly risky as if mall is a partial success then there are no takers for shops on first and second floor.
Food court on other hand is visited by many customers even though the food court may be on third or fourth floor. It is an accepted norm that the food court will be on higher floors ( even top floor) and customers are willing to visit food court on these floors. Thus, investment on food court is low and returns are likely to be good. Food court in general comparison of commercial property is taken to be safe investment. Advantages of food court in comparison to other commercial properties are as under:-
- Rental income from food court is higher than shops and residential properties:- On comparison to a shop on third or fourth floor, food court on same floor will fetch higher rentals. This is because of high foot fall at food courts. Rent of a food court may vary from Rs 80 to Rs 200 per sq ft, where as the rent of shops on a higher floor may be 50% lesser than the food court.
- Food court is easier to rent out:- In most of the malls the food court is managed by the builder and they ensure good brand and good variety. If a space of food court is 500 sq ft then the likely rent of a food court is between Rs 50,000 to Rs 80,000 per month. Profit margins in food industry is high and in malls it becomes even higher, therefor, there is a commercial viability in paying high rent and still making profit in a food court.
- Online business and food court:- Online business is fast developing in all countries and shopping malls are available in ones mobile phones. Online business has a huge impact on retail business, however, for food court the impact is not big as most of the online apps collect food from the counter and they charge some profit for doing so. Online food delivery provides additional business to food courts. With lower rentals online delivery of food court give revenue to the food court operators.
- Food court along with Multiplex cinema halls:- Food court has a very high visibility and families visiting multiplex / entertainment zones prefer going to food court for a quick bite before / after visiting a multiplex / entertainment zone. This is a general trend as food inside multiplexes is very costly and in most of the household if one is watching a movie with family then there is no one at home to cook food. Asking wife to cook food after watching a movie is a dangerous preposition for many, thus, food court is a cheaper and practical solution.
- Profit for investors of food court:- Profit for investors of food court is high as food courts are launched at very reasonable prices and over and by the time of possession the price of a good court goes up by almost 50% , when rented the food courts are sold on the basis of rental ROIs. Rental ROIs are much higher that per sq ft cost of the food court. One get a buyer for food court of resale as investment on food court are low in comparison to other commercial properties.
Overall food court investment in safe and gives good returns. As mall culture is growing in metros, the local vendors will also move to food court to have a shop / outlet. Eating habits of people are changing and in metros where most of the people are form other towns and are bachelors, eating out is becoming a growing trend. Online food delivery will further help sale of food items and contrary to retail market food court business will keep booking in coming years.
Farm House at Sohna Gurgaon
One of the most promising real estate investment is in farm houses at Sohna Gurgaon. There have been instances where the farm houses purchased for few crores reached a three figure mark, such cases are in abundance in Sainik farms, Chattarpur and Brijwasan.
Farm houses at Sohna Gurgaon is the next big thing in real estate of Delhi - NCR. Infrastructure development in this area is going on at a very fast pace. Major developments are as under:-
- An elevated road is under construction between Gurgaon and Sohna.
- Elevated Delhi - Mumbai rail corridor is under construction
- Western Periphery Road is now functional
- Work on Delhi - Mumbai Expressway is going on at a fast pace
- Cargo airport is coming up at Bhiwadi, Rajasthan
One of the most important development is Delhi - Mumbai expressway, which is a 1261 kms eight lane expressway that can be expanded to a 16 lane expressway. This expressway will start from Delhi and will go through Mewat, Alwar, Bhopal, Vadodra and Mumbai. This entire expressway is planned to run through rural areas of Rajasthan and Madhya Pradesh to ensure that commercial development takes place in these rural areas.
One of the exit of Delhi - Mumbai expressway is coming at village Khallilpur near Sohna, land prices in this village has jumped from Rs 45 lac per acre to Rs 1 crore in last 6 months.
A parcel of farm house at Sohna Gurgaon is developed by Vatika Group. There is a Westin resort and spa in these farm houses, the resort is run by Marriot Group. Rooms/villas in Westin demands anything from Rs 12,000/- per night to Rs 33,000/- per night. Going rates of farm houses near Westin spa and resort is Rs 1.5 crores to Rs 3 crores per acre. Land connected to the main black top roads is expensive, however, if someone buys land in bulk then the average cost of the land comes out to be quiet reasonable.
Land in village Aldoka, Kurthala, Gangauli etc is available at low prices. It is recommended that the farm land in these areas should be bought through a local contact i.e from a person who is trustworthy and has an ability to handle such deals. We have identified few people who are not into real estate business but are willing to support the buying and selling process of land in these areas,
There are number of places near Sohna where farm houses can be made. One acre farm house can cost anything from Rs 50 lacs to Rs 10 crores. With all the development taking place in this area, investment near Delhi - Mumbai expressway will give high profit.
Ivy County Noida - Best project in Noida to buy or invest
About County Group
( For more information call Amit Ph 8375924100 )
As on date the Ivy County project in Noida is one of the best projects to invest in, County Group has been doing well for the last few years and they have delivered two major projects, one in Noida and another one in Greater Noida west. Cleo County in sector 121, Noida, is one of the costliest projects of Noida. Cleo County was slow to pick up, a few years back it was trading around Rs 5600/- per sq ft and the trading price of the same project now is around Rs 8000/- per sq ft now.
Cleo County was delivered two years back, there was a bit of delay in delivery of the project but the customers were more than satisfied with the end result. It has one of the best club houses, construction quality is excellent and the ambience of the project is fabulous.
Within one year the price of the project, Cleo Count moved upwards, it jumped from Rs 6000/- per sq ft to Rs 8000/- per sq ft. After the success of Cleo County, the County Group came up with Cleo Gold towers in the project premise of Cleo County. Another project by the name of Cleo 107 was launched in sector 107, Noida. Both Cleo Gold and Cleo 107 are doing extremely well. This is to the extent that the smallest size flat i.e 3500 sq ft, in Cleo 107 is already sold out.
With most of the smaller size inventory in Cleo County, County 107 sold out, opportunities to invest in these projects are limited and ticket size of investment is very high.
About Ivy County
There is an opportunity to invest in another good project of County Group, this project is by the name of Ivy County and it is in sector 76 Noida. Ivy County project has a huge potential and is likely to set a new benchmark in Noida. Around possession, price in Ivy County is likely to be around Rs 10,000/- per sq ft.
As of now the basic price of Ivy County is around Rs 6500/- per sq ft and payment plan is 25% X 4. However, few units are available at lower price for a limited period. Therefore, if one invests in this project then till possession the return on investment can be more than 100% in 3 years as only 75% amount is to be paid till the offer of possession. The likely profit matrix for the Ivy county for 2100 sq ft flat could be as under:-
- In one year - investment Rs 70 lacs, likely profit Rs 30 lacs
- In two years - Investment Rs 1 crore, profit Rs 60 lacs
- In three years - Investment Rs 1 crore. Profit Rs 90 lacs
Above mentioned data is subject to market risk, these figures are based on the fact that any good project in Central Noida is now around Rs 7000/- per sq ft.
Price trends in Central Noida
Price of few projects in Central Noida are as under:-
- Mahagun Moderna - Rs 6500/- per sq ft
- Civitech Stadia - Rs 7000/- per sq ft for 4 BHK units
- Gaur Sportswood - Sold out
- Elite Golf Homes - Rs 6600/- per sq ft
- Mahagun Mezzaria - Rs 8000/- per sq ft
( For more information one can contact Amit Ph 8375924100 )
In central Noida there are three projects that have a potential to touch Rs 10,000/- per sq ft mark, these projects are Mahagun Mezzaria, Ivy County and Gaur Platinum Towers.
Risk Analysis
County Group in Noida is now a synonym of success as the County Group has delivered a project that is quite massive by any standards. The Cleo County project is around 25 acres and has around 2500 flats. Ivy county in comparison is a smaller project and is around 5 acres. Entire project is on MIVAN construction which is fast, stronger and easy to make. Location of the project is premium and the land being purchased is very costly, therefore, the builder is not likely to default on such a project. Land parcels in this location have been exhausted, all projects around this land are ready to move in. Metro rail, malls, shopping centres etc are nearby.
New launches to boost up Noida real estate
Real estate market in Noida has been sluggish for past 6-7 years. Slow market is keeping investors away from the real estate market of Noida. In past few years growth is observed in just few segments of real estate in this area i.e commercial and high end residential properties. Commercial properties of Noida is a steady performer and has given very good results, this is more because the ratio of commercial property viz a viz residential property is very low, there is just 3.78% of commercial property in Noida.
There is going to be a big boost in Noida real estate market as few big launches are going to take place in next 5-6 months. Some of the major launches will be as under:-
- One of the top South Indian brand, Prestige constructions, is likely to launch a project in sector 150 Noida. Project is likely to be launched in Jan 2020. They are likely to come up with high end apartments with 2 BHK of size 1300 sq ft plus and 3 BHK of size 1900 sq ft plus.
- Godrej is likely to launch a project in sector 43 Noida. Project will be based on a jungle theme with few acres of jungle in the centre and the towers will be on the periphery of the jungle. Godrej sector 43 will come up at a prime location of Noida near Botanical Garden metro station.
- Mahagun is likely to come up with a project in sector 107 Noida. Sector 107 is one of the most preferred location of Noida as it gives connectivity to Noida-Greater Noida expressway and is very close to central Noida as well. Sector 107 is very close to sector 104 which is an emerging commercial hub of Noida. Mahagun may come up with 3 BHK and 4 BHK apartments in this project.
- Exotica has a corner plot in sector 79 Noida. Exotica is likely to launch a project in next 6 months on this plot. Project is likely to be high end luxury flats.
- SKA builder is likely to launch a project in sector 143 Noida.
- There will be few more launches in sector 150 and sector 43 Noida in next one year. Few commercial projects will come up at sector 129 Noida
In all, real estate market of Noida is likely to get a boost because of these new launches. Launch by top brands of India will bring confidence back in the investors of real estate. Market price of high end properties has increased in last few years. Average price of high end property in Noida is now above Rs 7500 per sq ft. New launches along with Jewar airport and film city development may see revival of real estate market in Noida.
Why real estate agents are required for a deal
Few people choose to buy property on their own, that is without any assistance of a real estate agent. However, majority of people choose to keep a real estate agent in between for a real estate deal. Vast number of people value the knowledge and experience of a real estate agent, they know that. a professional can handle a deal in a much better way. Real estate agent may represent both buyer and seller or as in most of the cases they represent only one Parth, that is buyer or seller. The reasons why people carry out deals though a real estate agents are as under :-
- they (real estate agents) prepare the house for selling
- they provide information regarding the correct pricing of the property
- they advertise the property to various potential clients and investors
- they advertise the property on various social media platforms
- they arrange the visits for various potential buyers
- they prepare terms and conditions for sale / purchase and prepare sale documents
- they help in negotiation of the property price
- they are witness to the whole process and also helps in clearing any misunderstandings if it arises in the deal
- they have skills to assist the deal at various stages
Deals done through agents are trouble free, a good agent will be able to get a good negotiation for a property. Services provided by a real estate agent is worth the price they charge for a deal. One of the most important part is understand the requirements of the buyer and convincing the buyer to buy the property. Many experienced real estate agents have a ready data of the going price and the closure price of recent deals, they also give references of the people who have recently purchased a property in the area. Agents knows the strength and weaknesses of properties and they can also predict the price trend of a property in coming years. One generally compares a property with many other similar properties, agents can do a quick comparisons of properties and can also provide the same in form of a written report. A good real estate agent can save lot of time and energy, they can help is saving money and provide professional advice at all stages of property transections
Buy property 20% below circle rate
One can now buy a residential property from a builder at 20% lesser than the circle rates for houses below Rs 2 crores without attracting any notional penal income tax. Finance minister on 12 Nov 2020 announced this scheme and this will be applicable for all residential units up to 30 June 2021. Earlier this rebate was 10% and due to slow down in real estate market many properties are trading below circle rate. Earlier it anyone bought a property below circle rate then as per income tax act 1961, the difference of the market price and circle rate is added to the income of the buyer and tax is to be deducted as per the existing slab of the buyer. For example:-
- If circle rate of a property is Rs 100 lacs
- Buyer buys a property for Rs 80 lacs
- Difference between circle rate and the buying rate Rs (100 - 80) = Rs 20 lacs
- Above difference Rs 20 lacs will be added in to the income of the buyer
- If the buyer is in 40% of income slab then the tax to be deduced is Rs 8 lacs as income tax
- The above income is to be shown as income from other sources
- In case buyer does not disclose the difference as income source then penalty up to 300% may be levied
With new rule one can now buy property from a builder at a price which is 20% below the circle rate. There will be no penal tax and the registration of the property can be done at a price 20% lower than the circle rate. In all if one buys a property at Rs 80 lac whose circle rate is Rs 100 lacs, then one can save up to Rs 9 lacs. This new rule will help boost the real estate market and on the flip side this will also help people to hide their black money in real estate. Black money is not a major issue in here as big sharks of this segment prefer adjusting much higher sum and adjusting just 20% will not be a major attraction for them.
Jaypee Greens Wishtown Noida properties are on an upswing
Demand of Jaypee Wishtown properties is on a rise some major development has taken place in Jaypee properties. Few years back Jaypee Wishtown properties were the top choice of the buyers in Noida. In many projects the cheques were given in advance and the towers were sold out with in first week of launch. After seining the peak Jaypee properties went down as Jaypee Infra went bankrupt and NCLT proceedings were initiated. Along with Jaypee Infra cost of Jaypee Associate properties also went down. However in recent times Jaypee properties are again on the upswing after touching the rock bottom. Post covid there is a rise in demand of Jaypee wishtown properties in Noida. The main reasons for the upswing are as under:-
- There are just three properties that are proper golf course facing in Delhi NCR, Jaypee Greens Greater Noida, Jaypee wishtown sector 128, DLF Gurgaon. DLF Gurgaon properties are Rs 18 crores and above.
- Jaypee Greens Greater Noida is far away, taking Delhi as a central point
- Jaypee Greens Wishtown Noida is the only option for golf facing properties. Cost of golf facing apartments is increasing with every passing week as the lowest price flats are getting sold out and there are lesser and lesser unregistered units (as TM charges are very high)
- As per court's orders NBCC will carry out the unfinished work of Jaypee Infra
- After some time there will be no flat that will be available below Rs 7200/- per sq ft all inclusive
- Unfinished towers have recently come under RERA, thus cost has increased of even under construction towers of Kalypso
- Infrastructure of Jaypee is good, this is the reason why top builder of Mumbai (Kalapatru) and Noida (Mahagun) are making their projects in Jaypee sector 128
- Kalapatru and Mahagun is asking price of under construction property as almost Rs 9000/- per sq ft
- Expected average price of sector 128 Noida after 4 years is expected to be between Rs 12000 - 20000/- per sq ft
- Jaypee being a big township of 1192 acres provides space for long distance cycling, walking, golf, sports etc
- Future of Jaypee stops affecting the project as RWA is formed after 2 years from possession
Demand of golf facing properties like Kalypso court and Imperial court is high on demand. Kalypso court prices has increased almost 15% in the secondary market post COVID lockdown. Trading on Kalypso court is mostly on unregistered properties and in such transaction the deals are reasonable as TM charges in Noida are whooping 6% of the cost of the property. This is one of the best time to buy Jaypee properties, range of properties in Jaypee is quiet wide. One can choose from plots, golf plots, villas, flats, bungalows, penthouses etc.
For more information contact Ph: 8375924100
India's biggest Film City in Noida
Development of “Biggest film city in the country “ has been announced recently by CM Yogi Adityanath , Uttar Pradesh . About 1000 Acers of land has been set aside near sector 21, Yamuna expressway. This will employ people in large numbers in various sectors and provide a boost to the nearby economy. Also a direct boost to the Bhojpuri cinema . This place is just 6 kms away from upcoming Jewar airport . The area has been renamed to Infotainment city . Out of this 200 acres of land will be set aside for commercial activity. Its expected to attract Rs 5000 cr investment . There will be facilities to support regular production as well as digital OTT and media streaming platforms and hence high capacity data center. The film city’s presence in Noida will benefit the artists from Uttar Pradesh, Bihar and Jharkhand. It will have a film university, film museum and five star hotel among other things . A Singapore based company has already offered to invest 80 cr as initial investment for setting up film academy. Ernst and Young has been nominated to prepare a detailed project report .
Effect on the reality sector of Noida region
This announcement has already caught investors attention ,across all sectors. It is expected to boost property prices in Noida ,Greater Noida and Yamuna expressway. Development of infrastructure would spur the demand for residential and commercial properties. However the real benefits will be seen once the project sees visible signs of construction activity or nears completion . It is a welcome step of course which will boost the demand of accommodation , offices , hotels ,in the nearby region . Noida will emerge as a healthy robust luxury real estate destination and also the projects with niche market will fetch good prices. An escalation in prices in the radius of 50 kms from this infotainment city can be easily expected . The demand for customised setup , be it residential or office will go up.
Free Cement for construction of house to NOK of Martyrs
Memorandum of Understanding (MOU) has been signed and executed on 15 Oct 2020 between Kendriya Sainik board and Shree Cement Ltd to provide free cement to NOK of Martyrs for construction of one house on a plot size of upto maximum 4000 sq ft. Cement will be provided to next of kin (NOK) of Armed Forces of martyrs (Battle casualty - Fatal) with effect from 01 Jan 1999 and 01 Jan 2019.
NOK will be wife/husband of Martyr, in case wife/husband has expired the next of kin will be children below 25 years of age. If martyr was unmarried then the NOK will be the parents of martyr. Date of application should be after the date of signing of MOU. Free cement will be provided for only one house of a plot unto 4000 sq ft. In case there is more than one martyr in one family then the facility will be provided for every martyr. Photocopy of documents required for the claim are as under:-
- Discharge book
- Battle casualty certificate
- Address proof
- Building plan
- Registration papers
- Aadhaar card
Zila saint board will be the organisation that is going to help the NOK of martyrs to avail this facility. The documents are to be forwarded to the office of Shree cement at address mentioned below:-
HOD CSR DeptSHREE CEMENT LTDP.B No - 33, Bangur NagarBeawarDist - Ajmer (Rajasthan)PIN 305901
Cement will be given for one ground floor construction. Calculation factor for construction of house will be as under:-
- 0.3 bag of cement per sq ft of construction,
- 60% of the plot size if the plot is unto 2000 sq ft
- 65% of construction if the plot is between 2000 - 4000 sq ft
- weight of one cement bag will be 50 Kgs.
- 1000 sq ft plot - 195 bags of cement
- 1500 sq ft plot - 293 bags of cement
- 2000 sq ft plot - 390 bags of cement
- 2500 sq ft plot - 450 bags of cement
- 3000 sq ft plot - 540 bags of cement
- 3500 sq ft plot - 630 bags of cement
- 4000 sq ft plot - 720 bags of cement
This is a good CSR initiative by Kendriya Sainik Board and Shree cement. It is requested that this information be spread to maximum people so that NOK of martyrs can avail maximum benefit out of this scheme. For more information is one should contact Zila Sainik board at nearest location.
Gaur City Center Kiosk | Gaur City Center
Gaur city center Kiosk is available for sale. Gaur city center kiosk is a outlet of 94 sq mtr super area. These kiosks are on lower ground floor and near food court. These kiosks are one of the Best Buy as this property has a very high visibility. These kiosks are on the walk ways and atrium of the Gaur city centre. Because of high visibility commercial value of this property is very high.
Earlier kiosks were used only as food outlets, however, now kiosks are used to sell high end products like beauty products, mobile phones, laptops etc. Sales from the kiosk is very high because customers take immediate notice of these kiosks. If we talk about mobiles phones then at many places sales of mobile phones from the kiosks is much higher than that from the shops. Beauty product is also one of the business that benefits a lot from kiosks.
Kiosk rentals are very high and it is a good alternative for those who want to buy a commercial property and they can not afford a shop. If kiosks is kept for self use then one can even earn few lakhs per month out of it. One can get rentals of 4 to 8% from the kiosk, depending on the location of the kiosk
Gaur city center kiosks are likely to get very good rentals because of the location and the facilities in Gaur city centre mall. Gaur city centre has many shops, there are about 5 lac houses in the vicinity of Gaur City Center mall. There is a car parking of around 5000 cars in this area. Foot fall in Gaur City Center is likely to be much higher than any other mall in Delhi-NCR. Buying a kiosk in Gaur city center will reap good benefits in terms of rental income and also in terms of the price appreciation of the property. Cost of Gaur city center kiosks are as under:-
(A) Kiosk of type A - Rs 36 lacs
(B) Kiosk of type B - Rs 38 lacs
(C) Kiosk of type C - Rs 40 lacs
(D) Kiosk of type D - Rs 42 lacs
Kiosk of all types in Gaur city center is of same size i.e. 94 sq ft super area. The difference between the various kiosk type is the location. Best kiosks are type D and it is very rare to find a kiosk of typer D. Type D and C kiosks are at the best location of Gaur city center and are likely to attract best brands and best rentals. Whereas, type B and A kiosk are best for those who want to invest smaller amount.
With increase in trend of home delivery of products and food it makes more sense to make a smaller investment on commercial kiosk for brand awareness, product warehousing or preparation of food can be arranged at some other location. With good brand awareness home delivery will give very high profit. A kiosk can be used for such awareness and with 5 lac houses in vicinity home delivery orders are likely to be very high. Customer feels more comfortable if you have a permanent address of a location that he can connect to and is a well known location like Gaur city center.
The rule of investment in commercial property is to buy the best possible location property. If the visibility of the kiosk is high then sales and rentals from the kiosk will be high. In all, kiosk is a good investment. It is low investment commercial deal with very high prospects.
For more information call Amit Ph 8375924100
Real Estate Investment | Payment plan 10: 90 is good for investors and end users
One of the most important decisions while buying a house is to buy an under construction house or a "ready to move in" house. Buying an under construction house is risky, however, there are some problems in buying a " ready to move in " house as well. These problems are as under:-
- One has to compromise on the floor and facing of the flat
- Cost is much higher than under construction house
- Overhead cost is more, transfer charges, NOC from builder etc
- One has to pay only 10% in one month of booking
- 10% is mandatory for making builder buyer agreement (BBA)
- Balance 90% is to be paid on offer of possession
- No need to take loan at initial stage, one can take loan for 90% of residual payment
- Offer of possession is made before 2-3 months of actual possession.
- Financial exposure is less
- One can reap good interest rate on 90% of the payment held in DSOP / FD etc
- One can get a flat of her/his choice
- One gets a good price escalation on offer for possession
- Godrej
- Antara Senior living - Max Group venture
- Gaur Sons
- Gulshan
Recently one of the renowned builders of Noida/ Gr Noida west has started a 10:90 payment plan. The location of the project is well connected with a new bridge that connects it to sector 79 Noida.
New payment plan of 10:90 came as a surprise for many as sales in the market have already picked up. The builder was selling his flats in a normal CLP plan and the response from the market was good. New 10:90 payment plan shows the financial strength of the builder and the confidence that they show in completing the project out of their own funds. The builder has recently done few tie ups with brands like Godrej and has delivered two major projects in the last 2 years.
As per our analysis it is a good time to buy a flat in 10:90 payment plan, it is a risk free investment that can give big benefits, for a group of buyers one can get a free transfer as well. For investors the hypothetical stats are as under:-
- Lets say a flat of Rs 70 lacs escalates to Rs 90 lacs on offer of possession
- Investment Rs 70 lacs
- Profit Rs 20 lacs
- Return in percentage 28.5 % in two years
- Yearly return 14.28%
- In 10:90 payment plan, let's say for similar flat
- Investment Rs 7 lacs
- Profit Rs 20 lacs
- Return in percentage 285%
- Annual profit 142.8%
Investment in a 10:90 payment plan is the best option. It gives the benefits of good inventory and low risk. For self use / investment such payment plans of good builders are highly recommended. Risk in such investments is very low.
For more information call Amit at Ph 8375924100
Mahagun Marina Walk Food court | Mahagun Marina Walk Mall
Mahagun Marina Walk is a high end commercial mall in Greater Noida west, it is coming up at plot number C2 of sector. 16B of Greater Noida west. Plot size of the mall is 4.62 acres. Unlike many other malls of Greater Noida west, Mahagun Marina Walk is a top of line mall, which will be very spacious, posh and will have shops of decent size. Mall is on a 130 meter road with innumerable houses in near vicinity. Main features of the mall are as under:-
- It will have one of the largest Audi halls with 14 screens
- It will be supporting one of the biggest entertainment zone of Delhi - NCR
- Big spaces for Hyper market / Electronic stores
- Parking for 1500 cars
- International shopping brands and fashion brands
- Water based theme with exotic plants
- Big atrium and space for customers
- Capsule lifts between Audi theatres and Food court
- Multilevel escalators to reach on different floors
- Food court floor will have entertainment zone
- There will be a capsule lift between Audi halls and food court
- Food court will be of two types
- Leased food court - Managed and leased by Mahagun
- Self use food court - Managed / rented out by individuals
- Food court will have three main segments on left right and centre
- Adequate sitting area will be provided
Price of the food court is far lower than the food court in other malls in this area. Food court in malls are available at the approximate price of Rs 18000/- per sq ft. Initially Mahagun Marina Walk Mall food court will be available at following price range: -
- Price - 16999/- per sq ft
- Initial discount - 1000/- per sq ft
- IFMS - Rs 100/- per sq ft
- Sinking fund - Rs 165/- per sq ft
- GST - 8%
- Applicable PLCs
- Discount of Rs 500/- for 70:30 payment plan
- Additional Big Discount on form for early buyers from https://property.sale
- Exclusive offer - First transfer free
The effective price of the food court comes out to be very reasonable. Payment plan for the Mahagun Marina Walk Mall food court will be as under:-
- Payent plan 70:30 for Mahagun Marina Walk
- Booking Amount - 10%
- Amount Due in 45 days of booking - 60%
- Amount Due on offer of possession - 30% plus Additional charges (if any)
- Payment plan 60:20:20 for Mahagun Marina Walk
- Booking Amount - 10%
- Amount Due in 45 days of booking - 50%
- Amount due within 2 years of date of booking or Completion of Multiplex roof of Mahagun Marina Walk Mall (which ever earlier) - 20%
- Amount due, on offer of possession - 20% plus additional chargers (if any)
Mahagun Marina walk food court is likely to be sold out soon as demand for food court in Noida and Greater Noida west is very high. Being a high population density area the price of commercial properties in this area is highest in Delhi-NCR. Shops on ground floor are likely to trade at Rs 60,000/- per sq ft quiet soon. Food court in this area is likely to go above Rs 25000/- per sq ft in coming times.
With the kind of discount and benefits that is given at the initial launch, food court at Mahagun Marina Walk mall is a very good investment. For more details and for best rates ..... call Amit Ph 8375924100
Gaur city center | Low investment high rent
It is a known fact that more than 90% of the real estate investors / buyers prefer residential property over commercial property. Residential property is always a first choice for many as they feel that this is the only way ahead. Main reasons for preference of residential properties are as under:-
- House is an essential requirement
- Interest on home loan is less
- One gets tax benefits on home loan
- Self funding in buying a house is low
- People prefer giving EMIs over giving rent
- Families are emotionally attached to residential properties
Buying a residential properties is a good choice only if one has taken it for self use. Buying a residential property for giving it on rent is not a prudent approach. Before buying a property one should be clear about the aim of investment. Few questions that can help make a right decision are as under:-
- Why I am buying this property ?
- How I will use this property ?
- When will I self use this property ?
- What is the likely appreciation in 5 years ?
- What will be the likely rent from the property ?
Commercial property is a good option if someone is looking for good rentals and higher appreciation. Commercial property can give rent unto 5 times of residential property. Normally a good commercial property can give 3 times the rent of a residential property of same cost in same area. Property that gives lesser than 4% rent per annum will make big holes in the pocket. moreover, if appreciation of property is low then it will result in major losses. For better insight if we compare average and high rentals of good properties in Greater Noida west :-
- Average rent of residential - Rs 7/- per sq ft
- Average rent of commercial ground floor - Rs 120/- per sq ft
- Higher side rent of residential - Rs 14/- per sq ft
- Higher side rent of commercial - Rs 260/- per sq ft
For good rental and appreciation of cost one can consider investment in Gaur city malls i.e Gaur city centre and Gaur world smart street. Gaur city centre is a high street market with a massive parking space of 5700 cars, moreover it is located in a very high population density area. It is right next to high rise buildings of GC 7 and it at the entry point of Greater Noida west. Gaur city centre will be directly connected to Gaur city mall and will provide a next level shopping experience. One of the best option for investment in Gaur city mall is the kiosks / outlets. The cost of the shopping outlets are as under:-
- Category A - Rs 36 Lacs
- Category B - Rs 38 Lacs
- Category C - Rs 40 Lacs
- Category D - Rs 42 Lacs
Size of kiosks is 94 sq ft and it is placed at the centre of atrium and Walk ways. Visibility of such kiosks is very high and people in the mall can not ignore such malls. Likely rentals of such kiosks is very high. Rentals are likely to be around Rs 25000/- as per market conditions. In comparison to shops the number of kiosks are limited. Kiosks if put on self use can get a very good income. If used property kiosk can get a monthly rental between Rs 2 to 4 lacs.
Shop is a good option in Gaur city centre and Gaur world street mall. The starting price of shops is around Rs 16.6 lac onwards. A good shop in this location will fetch a good income for lifetime. With more than 5 lac houses in near vicinity the population density is very high. Being on prime location Gaur city centre will fetch rentals that will be comparable to the best rental of known markets of Delhi - NCR.
Kiosks in Gaur world smart street starts with Rs 26.3 lacs with an easy payment plan. Shops are available in this mall from Rs 16.6 lac onwards. Payment plan is as under:-
- Booking - Rs 1 lac
- Within 10 days - 10% of BSP minus Rs 1 Lac
- Within 100 days - 15% of BSP
- Within 200 days - 25 % of BSP
- On offer of possession - 50% of BSP
Buying a good commercial property is always a good option. The best opportunity to buy a good commercial is at Gaur city centre and Gaur world smart street because of the following reasons :-
- Gaur is a well known brand and has an impeccable reputation in terms of timely delivery and quality of construction. Gaur have given more than 30 possessions of properties in last 10 years. Projects in Gaur city and Gaur Saundaryam are one of the best projects of Greater Noida west
- Investment in Gaur is risk free and gives high returns
- Greater Noida west has very high population in
PLC and Extra charges are applicable for all commercial properties. For more information call Amit 8375924100
Food Kiosk and Shops in Gaur City centre | High rental bonanza
Gaur city at Greater Noida west is one of the most densely populated areas of Delhi-NCR. In few kilometres there are around 5 lac houses. To cater for the commercial needs of these residential houses Gaur has come up with a high street market known as Gaur City centre. Gaur city centre is right at the entrance of Greater Noida west at the most prime location of the area. This commercial high street is likely to have very high footfall of customers.
Gaur city centre is almost complete and it is likely to be handed over to the customers soon. With shops being handed over the market of Gaur city centre is likely to be buzzing with customers near Diwali. This high street market has it's own dedicated multilevel parking that will cater for more than 5600 cars, there are four hyper market in Gaur city centre that is likely to occupied by daily need super market, electronic market, home stores etc. Number of elevators and ramps are made to cater for the requirement of the customers.
The high street market will have total of 1537 shops on lower ground, ground floor, first and second floor. Apart from the shops the complex will also have luxury office spaces. serviced apartments, banquets etc on 3rd to 17th floor. Gaur city centre is a certified IGBC Green Building with total area of approx 1004221 sq ft.
Gaur city centre will be one of it's kind integrated commercial location that will have shopping complex, offices, serviced apartments, hyper markets, hospital, petrol pump etc. Dedicated multilevel car parking is one of the biggest USPs of this location as safe parking is one of the major concerns of customers visiting high street markets. With the development of such state of art facilities the rental returns from the food kiosks and shops is likely to be very high.
Shops in Gaur city centre are available at around Rs 40 lacs onwards. Newly launched food kiosks of 97 sq ft are available at around Rs 35 lacs. Food kiosks are known to give very high rental returns, at certain places food kiosks are giving rental ROI of 12% or more of the purchased price. Overall, it is a good opportunity to buy shops and food kiosks in Gaur city centre. The investment amount is as low as Rs 35 lacs and rentals of the kiosks are likely to be phenomenal.
For more information call Amit : ph 8375924100
Kothi for Sale | Chandigarh Delhi Noida search pattern
Kothi is a word that is used in Punjabi language for a Independent house / villa. Kothi for sale as a phrase is mostly searched in North India. Maximum search for the phrase is in Chandigarh and Punjab, in comparison for villa for sale search in this area for Kothi for sale in this area is 88% and 86% respectively. This is followed by Haryana where the search drops to 38%. Two other states where we can find search of word "kothi for sale" is in Delhi and Uttar Pradesh.
Delhi has a high volume of search for "kothi for sale" and it touches 36% in comparison to keyword "villa for sale". In Uttar Pradesh search of "kothi for sale" is 20% of word "villa for sale". From the search pattern it is clear that this phrase is searched on google at places where punjabi language is used.
One of a real estate professional says that generally all independent houses that are made on plots allotted by authority is referred as kothi. Independent houses made by the builder is generally referred as villas. If villas made by the builder are very close without setback then such villas are referred as row houses. There are two more word in trend, these words are Bungalow and Mansion. Bungalow is mostly used for british style independent houses in Lutyens zone Delhi. Bungalows are made in area of around 1000 sq mtr, generally has lots of open area and 30-40% area is covered, Mansion again is a very large house made in large plot area like 1000 - 2000 sq mtr of area, construction of mansion is huge with lots of rooms and big open area.
Kothi for sale is a common phrase used in North India, villa for sale is also used by many. Bungalow, row houses and mansions are seldom used. Kothi word is popular in Chandigarh, Punjab, Haryana, Delhi and Uttar Pradesh.
Property buying and selling | Evaluating cost of a property through rental ROI
One of the ways to evaluate the cost of property is through annual rental return of investment (ROI) income also known as rental ROI. Annual rental income of say, a flat in a particular location is Rs 12000/- per month, thus, the annual rental income becomes Rs 1.44 lacs. A good flat should fetch 2.25% of the cost of the flat as a rental income. Thus if annual rental of Rs 1.44 lac is 2.25% of the cost of the flat then the full cost of the flat should be around Rs 64 lacs.
In case of commercial properties the rental ROI is higher and a thumb rule is that a commercial property gives rental ROI of 6% per annum. In case the commercial property is rented to very good brand or a bank then one can calculate the cost of the property by taking rental ROI as 5% of the cost of the property.
If a shop is rented to a local brand then it is considered that the rental income from the shop will not be stable and the tenant may vacate the shop or may delay or skip the rentals on some excuse. Such shops are evaluated at rental ROI of 6%. If rental income from the shop is Rs 35000/- per month then annual income becomes Rs 4.2 lacs per annum. If Rs 4.2 lacs is 6% of the cost of the shop then the cost of the shop is Rs 70 lacs. For a good brand like Apollo Pharma, dominos, nike the consideration of rental ROI is 5%, thus, the cost of the shop in this case becomes Rs 84 lacs.
In case of commercial property location of the property is very important. First floor shops are sold at higher rental ROI calculation, generally 7% or even 7.5%. Office spaces are also calculated in the range of 7% - 7.5%.
Above mentioned figures are general guidelines, these figures changes with location, brand, facilities, renal and sales demand etc. One should avoid buying a property that is 30% below the rental ROI of figures given above. In case you find that the rental ROI of any property is very low then it is better to take a property on rent in that area and invest your principal amount at some other place. One may settle for low rental ROI in case it is felt that the appreciation of the property in a stipulated time is going to be very high, like taking a property near proposed Airport / highway etc.
For more information call Amit ph 8375924100
Kothi for sale in Noida | Demand of Kothi in Noida on rise after COVID spread
COVID pandemic has bought up changes is many industries and priorities of people have re adjusted after COVID spread in the country. Before COVID pandemic demand of high rise buildings was rising steadily, this is because all facilities are available in such societies and maintenance of the house is taken care by the maintenance staff.
After corona pandemic people want to share less and less space with others, this ensures that exposure of a person to any contagious disease will be less. This new outlook has increased the demand of Independent houses. There is a high demand for kothi, villas, farm houses. Many placards showing "kothi for sale" are now off the buildings as demand of Kothis has increased. One of the reasons for high demand of Kothi for sale in Noida is because of migration of people from congested areas of North and East Delhi to open green areas of Noida.
As of now even with high demand the kothi is available for sale at very low rates. Pragmatic sellers are encasing this opportunity to sell the property that had a inventory overhang period of more that 2 years. Sellers are giving very good discount on the kothi for sale, few availability of kothi for sale in Noida are as under :-
- Sector 31, 450 sq mtr kothi worth Rs 7 crores available for Rs 4.3 crores
- Sector 52 520 sq mtr kothi worth Rs 8 crores available for Rs 5.4 crores
- Sector 50 200 sq mtr kothi worth Rs 3.4 crores available for Rs 3 crores
- Sector 41 200 sq mtr kothi worth Rs 2.5 crores available for Rs 2.25 crores
This is one of the best time to buy kothi and villas. Few builder kothi for sale in Noida are at sector 74, 79 and 150 on fresh sale. Good golf plots and villas are available in Jaypee Greens sector 128 Noida. One can also buy plot and make designer kothi, one of the best plots to buy are Golf facing plots in sector 128 Noida. Golf plots that were trading for Rs 6.5 crores is now available for Rs 3.5 crores, this means a discount of almost 45%. Golf plots are always on high demand and one can get very good profit from such plots, moreover, its is one of the best property to make your dream home
For more information call Amit 8375924100
Godrej plots Faridabad sector 83 | Likely features in an upcoming project
Godrej plots Faridabad are likely to be launched in sector 83 and in short time there is a buzz in the market that Godrej is likely to come up with world class facilities. Godrej plots Faridabad is due to develop a land parcel of around 40 acres where the plotted project is likely to come up in two phases. In all the number of plots may be less that 700 with first lot of 400 plots may open up in phase one. Plotted development is likely to have plot sizes ranging from 110 sq yds to 180 sq yds, as per the laws of the state in plots one can make stilt parking and construct four stories and separate registry of all four stories in the name of different people may be possible. So a possibility may arise that one family books a plot and makes four stories with registry on separate name for each of the family members/ friends. If this comes up then this is will be a very big advantage as the cost of the house on each floor will come out to be very less and all world class facilities will be available ( as it may be provided by Godrej ).
As per the current records Godrej is one of the. most trusted brand of India. In real estate it is in top two brands, in all possibility it may be number one real estate brand of India. These plots will be launched after Haryana RERA approval and the known facilities that Godrej provides in their projects may be available in this project as well. Godrej in general is known to give facilities which are similar to ones mentioned as under :-
- Best club houses with separate club house for all clusters.
- Many indoor sports facilities like
- Air hockey
- Foosball
- Arcade machines
- Foos ball
- Virtual gaming etc
- Some Godrej properties have out door sports facilities like
- Basket ball
- Skating
- Tennis
- Squash
- Indoor badminton
- Cricket
- State of art multipurpose halls
- Theme based swimming pools with wooden decks, juice bars and cabanas
- Music studios with musical instruments
- Celebration lawns for party and other type of celebrations
- Guest rooms for the guest of the residents
- Many theme parks with coloured trees and fragrance gardens. Garden of senses like fragrance garden etc
- Yoga and meditation parks
- Maze gardens and reflexology paths
- Nature trails and tracking area
- Jogging tracks
- Fish ponds, artificial forests, koi ponds
- Personal entertainment zones
- Movie halls with limited sittings
One of the biggest disadvantage of a plotted settlement is security. Godrej is known to give very high security features in all projects. They install CCTV cameras at all important location, Godrej perimeter security is known to be very efficient. Godrej makes grand entries with grand gates and palm trees. There are separate entries for different type of plots. In all the Godrej properties are costly but they provide facilities that are value for money. Godrej may launch their first plotted colony in North India shortly, they have launched one plotted colony in south India and the response for the same was very good. One may consider booking a plot in Godrej once the RERA of the project is available with the builder. It is sold on first come first serve basis, therefore, they are many customers who buy property on the first day of launch.
Any plotted community with very high security, excellent facilities and Floor wise registry derives a very good response from the buyers and investors. On launch many plots are likely to be picked up by the buyers and investors. In a plotted project with only 300 - 400 plots there is a good chance that the inventory may exhaust in few days / weeks.
For any assistance visit https://plots.forsale or call Amit at 8375924100
Plots for sale | Difference between Hospital plots and Nursing home plots
There are various plots for sale under health care category, most common plots for sale in this segment are hospital plots and nursing home plots, What is a difference between a Hospital plot and Nursing home plot ?. Answer to this question lies is the nature of medical treatment given in the hospital and Nursing home. As the name suggest the Nursing home plot is for primary medical treatment, the patient visiting a nursing home is supposed to be given medical treatment and then the patient goes back to home or is referred for advance treatment and is shifter to hospital.
So primary difference between a Nursing home and a hospital is the Nursing home does not have beds for stay of patients, nursing homes have bed for treatment of patient and for a short stay of few hours. Hospital on the other hand has has a provision of beds for stay of patients. In other words hospital is a health care facility where patients are admitted and they stay there for short or long duration for treatment.
Different cities have different criteria for nursing home plots. When any town planning authority puts plots for sale then it is as per the master plan and the norms that are set up by the authority. In Noida residential and Industrial plots can be converted to a nursing home by paying 50% lump sum amount of difference between the type of plot to be converted and the cost of the commercial plot in the same area. Say in sector 30 if commercial rate of a plot is Rs 3 lac per sq mtr and that of a residential plot is Rs 1 lac per sq mtr, then the residential plot can be converted into a commercial plot by paying 50% of the difference i.e 50% of (Rs 3 lacs - Rs 1 lac) per sq mtr, this comes out to be 50% of Rs 2 lacs, which is Rs 1 lac per sq mtr.
In many cities like Delhi, there is a restriction regarding the number of beds in a nursing home and the kind of treatments that the can provide, there is also a restriction on the number of days a patient can stay in a nursing home. In Haryana only 50% of the health care plots are given to private companies through auction, 50% of the plot is reserved tor the government.
On the other hand a hospital plot is generally costlier than the nursing home plot, there is no restriction on the number of beds is not as strict as that for a nursing home. Number of beds is as per the area constructed in the hospital which in turn depends on the size of the plot and the FAR of the plot.
Content of the article may be verified before making any financial decision as norms of various cities changes with time. Thanks to Mr Pawan Jasuja (pawanjasuja.com) for information provided on the subject
Godrej Plots in Faridabad - Godrej Resort Living Plots - Plots for Sale by Godrej Properties
Godrej Resort Living Plots is the project launched by Godrej Groups in Faridabad.
Book Godrej Residential Plots/Lands/resorts for sale in location sector 83 Faridabad Gurgaon @55 Lakhs
Book on 8375924100 & get discount
STARTS : 55 Lacs* Onwards
PRE-BOOK Amount* - 5 Lacs/n Limited Plots-Limited Time Opportunity
Total Land Area: 44 Acres
Total No of Plots: 750 Phase 1
Plots on sale: 375
About City Faridabad: Godrej Plots in Faridabad
Faridabad is the most populous city in the region of DelhiNCR.It is a leading industrial centre .It is a nearest City of South east Delhi. [3]It is one of the major satellite cities of Delhi and is located 284 kilometres south of the state capital Chandigarh. The river Yamuna forms the eastern district boundary with Uttar Pradesh. The Government of India included it in the second list of Smart Cities Mission on 24 May 2016.Faridabad has been described as the eighth fastest growing city in the world and the third in India by the City Mayors Foundation As per the 2001 Delhi regional plan, Faridabad is part of the Delhi Metropolitan Area (DMA).
About Project Plots:
Its a Forest-themed Plotted Development It have 6 Acres of Forest Experience 2 Luxurious Grand Clubhouses Native Forest using the Japanese Miyawaki Technique Spread Over a Sprawling 43.61 Acres Plots are Ranging from 100 Sq.Yds. to 1000 Sq.Yds. A Centrally-located Retail Plaza & Town Square Plots are 3-side open.
Tags:
Should I sell investment plot at Dehradun and buy property in Noida
Question
I have a residential plot in Dehradun at a nice location. All of sudden a lot of buyers have approached me to buy it. However I do not have any need for money at present and have a little more than what I need. I realised that equity, MF, bank FD aren't doing well and so the only option people having money is to buy Gold or Real Estate. Gold is also volatile.
The query is , should I sell or not sell. Even if I do, I can only think of myself reinvesting in another residential plot and so wonder why to sell and pay stamp duty etc. The only plus can be to buy something close by in Noida.
Answer
I am a real estate professional and I have a website by the name of "https://property.sale". We are presently working on buying and selling of distress sale properties that are at least 20% lower than the market price through the website "https://distress.property.sale ". As of now the majority of trading in real estate is taking place in the distress property sale segment.
In case you feel that you are getting a good price for your plot in Dehradun then sell it off now and buy a distress sale property in Delhi NCR. Pick up a property (may be commercial property) that is ready to move in and is giving a good rent. You can also buy a good apartment or plot in distress sale with an aim to get a good appreciation in 2 years. Some of the recent distress sale deals concluded or under progress are as under: -
- Kalypso court flat size 3600 in sector 128 Noida - Market price Rs 2.5 crores , purchased at Rs 1.95 crores
- 378 mtr plot in sector 116 Noida - Market price Rs 2,5 crores, distress price Rs 1.7 crores
- 1000 mtr institutional plot in Greater Noida KP 3 - Market price Rs 2.5 crores, distress price Rs 1.4 crores
- 239 sq yd plot in sector 131 - Market price Rs 1.7 crores , distress price Rs 1.25 crores
- 1000 mtr Villa near MG road Gurgaon - Market price Rs 15 crores, distress price Rs 9.5 crores
- 3 BHK flat on Golf course extension road Gurgaon -Market price Rs 1.4 crores, distress price Rs 1.10 crores
- And many more
Reason for distress sales in Metro cities is mostly because of bulk booking by investors. Such investors were waiting for a right time to sell properties at appreciated rates, however, because of COVID have lost hope. So if you are getting a fair price for your property then sell it off and buy a distress property in Noida or Gurgaon.
Also explore commercial properties that are ready to move in and is giving a good rent. Rent of commercial property is generally 3 to 4 times of a residential property. A flat in Greater Noida which is worth Rs 1 crores is giving rent of Rs 12000/- in a month, out of which tax is to be paid and 30% goes in maintenance of house, thus, on Rs 1 crore return is just Rs 6000/- per month. Commercial property of same amount in Greater Noida west is giving rent of Rs 45.000/- per month. Many businessmen prefer commercial property over residential, they hold multiple commercial properties and stay on rent.
In distress property ,you make profit in very short time, say one and half to two years. The profit is = (market price - distress price) + appreciation if any. Cost of building a house will become costlier because of inflation and migration of labour to UP and Bihar. Labourers are not likely to come back before Bihar elections, thus, ready to move in properties will become costlier in Delhi NCR.
You can assess the appreciation that you are likely to get on your plot in next two years, if that appreciation is not more than 30% then you should sell your plot, This is so because unlike commercial property you are not getting any rent from your plot, moreover, appreciation of your plot will be far less than the distress properties available in Delhi NCR.
What is a distress property sale | distress sale property ?
In real estate the term "distress property sale" or "distress sale property" refers to a property that is sold way below market price. Seller is ready to sell property below market price because of personal reasons/problems. To resolve the problem seller is required to generate immediate funds, thus, in such scenario seller is ready to sell his property below market price. Reasons for distress sale could be one of the following:-
- Payment of Medical bills
- Moving abroad
- Funds required to buy some other property
- Losses in business / funds required for business
- Sudden dip in income
- Education of Children
- Family dispute / issues
- Division of property within family members
- Some major expenditure in family like marriage of sister / daughter
- Divorce cases
- Old age
- Consolidation of property / Problem in management of property
- Low rental income / Return on investment
- Other personal reason
There is an up surge of distress property sale in India in last few years because of slump in real estate market, followed by corona virus pandemic. This has resulted in increase in the number of "Distress sale of properties" in the market. Many investors who had multiple properties are now finding it difficult to exit out of the properties.
Where majority of the population is staying away from investment few smart investors are investing in distress property sale. As per one of the real estate analyst from Gurgaon, distress sale properties were picked up the investors immediately as the lock down was opened up. After one month of opening of lockdown there are hardly any distress sale properties in the market.
Buying distress sale property is taking advantage of the situation and time, but it should not be taken as being unfair to the seller. On the contrary by buying a distress sale property one is solving the distress of a seller and is arresting the damage that the distress situation can further create. This is more true because seller has already made up his mind to sell the property at lower rates. Also there is a trade off between time and discount, if a person is making quick payment then distress situation is solved quickly and many seller is willing to give more discount for quick payment
Distress property sale is a good way of buying a property as it ensures good profits and also ensures zero/less losses in case the market dips further. To evaluate any distress sale property ones should know the trading rates of properties an should evaluate demand supply situation in coming times. Overall, one must explore options of distress sale of property while investing in real estate.
Distress sale is fast becoming a regular feature of Indian real estate market, One has to just wait for the right opportunity to buy a property, Distress property sale is one of the best way to buy your dream property at lower rates.
Distress property sale presents good opportunity for buyers
Distress property sale is on a rise in Indian real estate. As Indian real estate market was already going through a great slowdown and along came pandemic of corona virus resulting in distress sale of properties. People who were holding on to their properties to sell at higher rates before lockdown got a shocker when the lockdown opened. They realised that there are hardly any buyers for their properties in the market.
Builders were the first to cold start the real estate market by offering "out of the world" payment plan like 10:90 payment plan where buyer was to pay 10% now and balance is to be paid near possession i.e after 2 to 4 years. Such payment plans were introduced by the builders who are financially strong and have wherewithal to complete the projects.
After lockdown there were number of buyers in the market, most of them were looking for a ready to move in properties. Few reasons for emerging of such buyers are lowering of interest rates, limited availability of ready to move in properties, strained relations with landlords etc. In all the buyers who were looking for property after lockdown, there was one thing which was common, they were asking for a big discount or in other words they wanted to buy property below market rates.
Such below market rate properties are known as "Distress property sale" or "Distress sale properties". Few also call it as "Desperate property sale" or "Desperate deals of property". One of the buyers who was looking to buy a property to adjust his Long term capital gain quoted that " It is risky to buy property in present scenario, therefore, buying a distress sale property that is at least 20% below market price is essential to arrest my future losses".
Due to pandemic of corona virus many people have made it a point to keep good share of money in bank for rainy days, many have lost their jobs and have no income and are focusing on buying only essential items. On the other side people who are more pragmatic see this span as the best time to buy properties, they know that the labour is not available, most of the labours are not likely to return before Bihar elections. Therefore, the availability of good ready to move in properties will decrease and demand will increase. This will result in boom in ready to move in properties in one to two years.
Few of the instances of Distress property sale are as under:-
- Seller of Plot in Greater Noida worth Rs 2 crores is willing to sell it for Rs 1.25 crores
- Institutional plot in Greater Noida of size 1000 sq mtr worth Rs 2.5 crores is available for Rs 1.4 crores
- Shops worth Rs 10 crores in Greater Noida west is available for Rs 7.5 crores (with rent potential of Rs 6-8 lacs per month)
- 1000 sq mtr villa in Greater Noida worth Rs 15 crores is available for Rs 10 crores
- Commercial building in heart of Delhi worth Rs 240 crores is available for Rs 150 crores
- Play school plot of 1000 sq mtr worth Rs 60,000 per sq mtr is available for Rs 40,000/- per sq mtr in Noida
- Villa in Noida of size 450 sq mtr worth Rs 7 crores is available for Rs 5 crores
- Kalypso court flat of size 3600 sq ft worth Rs 3 crores is available for Rs 2 crores
- More deals are available at www.distress.property.sale
To sum it up, the present trend is that number of buyers in the market has decreased and those who are in the market are looking for distress property sale. Government has given a moratorium period for payment of loans and the same period will be over near end of this year. In case the corona virus situation doesn't improve and people keep loosing their jobs then we will see a sharp rise in distress sale of properties. This is one of the best time to buy property in distress sale as once 20-30% of ready to move in properties are sold out then the distress discount on the properties will also decrease. Next opportunity to buy distress sale properties will then come at the end of the year 2020 (depending on the market situation).
For distress property sale one can visit www.distress.property.sale or call on ph 8375924100
Why it makes no sense to keep money in bank
Bank is a place where we deposit a part of our salary and income from other sources. We spend one part of our salary / income and deposit the balance is a bank so that this amount be available during rainy days or to buy an asset like property, car etc.
On the amount deposited in the bank we get some nominal interest and bank lends this money on higher interest rate to others, There is always a race between bank interest rate and the inflation, in this race inflation always beats the bank interest rates hands down. Moreover, the chances of bank going out of business is also there, in recent times we have seen banks like "Punjab and Maharashtra Co-op Bank" (PMC) going bankrupt.
Inflation erodes your money in a manner that the buying power of your money becomes weaker every day. Inflation is calculated twice in a year and if we see the "inflation of essential commodities" then we will find that the inflation can be as high as 14% every year.
To explain the effect of inflation we can do this calculation. If your salary is say Rs 2 lakh per month and you save Rs 1 lakh per month, then after ten years the money that you gave to the bank is Rs 1.20 crores. However, due to inflation the value of money depreciates at the rate of say 14% per annum, then the value of your Rs 1.20 crores after 10 years will be just Rs 62.20 lakhs. Calculation of the same is as under:-
Year | Amount Deposited @ Rs 12 lakh per year | Amount after adjusting inflation | Bank Interest on actual amount | Total Value |
First Year | 12 | 10.32 | 0.48 | 10.8 |
Second Year | 22.32 | 19.1952 | 0.96 | 20.1552 |
Third year | 31.1952 | 26.827872 | 1.44 | 28.267872 |
Fourth Year | 38.827872 | 33.39196992 | 1.92 | 35.31196992 |
Fifth Year | 45.39196992 | 39.0370941312 | 2.4 | 41.4370941312 |
Sixth Year | 51.0370941312 | 43.891900952832 | 2.88 | 46.771900952832 |
Seventh Year | 55.891900952832 | 48.0670348194355 | 3.36 | 51.4270348194355 |
Eight Year | 60.0670348194355 | 51.6576499447145 | 3.84 | 55.4976499447145 |
Ninth Year | 63.6576499447145 | 54.7455789524545 | 4.32 | 59.0655789524545 |
Tenth year | 66.7455789524545 | 57.4011978991109 | 4.8 | 62.2011978991109 |
So over a period of time a person looses 42.60% of the total value. Even if interest is taken at the rate of 4% annum (taxable above Rs 10,000/-) person looses Rs 37.8 lacs of his money due to inflation. Inflation is likely to be higher than 14% for the necessary commodities because of pandemic situation. Even on fixed deposit with return of 8% per annum one can not cover up the losses due to inflation.
What is the way out ? ( For more information call 8375924100 or visit www.Property.Sale )
Investment in real estate is going down as there is a general perception that the real estate will bring losses, Many people associate real estate with housing sector, however, this is not correct. With high taxes and oversupply of residential property the return on investment is not high, in many cases the returns has gone into losses, To add to the woes, there are many builders who have not completed the project, this resulted in big losses to the buyers.
We must understand that the real estate is not just housing sector. There are many other segments of real estate which majority of people do not explore. Few of these segments are:-
- Commercial real estate
- Shops
- Food courts
- Office spaces
- ATM spaces
- Ware houses
- Hotels
- Student housing
- Industrial real estate
- Plots
- Industrial sheds
- Buildings
- Institutional real estate
- Schools
- Colleges
- Agricultural real estate
- Farm houses
- Farm land
Investment in commercial real estate can start with amount as low as Rs 5 lacs. Office spaces of around 500 sq ft are available at investment of Rs 20-25 lakh. One can make good profit from shops and office spaces. At places like greater Noida west the rent of offices and shops are almost five times more than some residential property. Commercial properties can be classified in two categories, one that is giving rent (pre rented properties) and one that are vacant. Under construction properties where builder gives return to the buyer is known as assured return properties. Ready to move in properties where one gets rent is known as pre rented properties.
We have some exclusive properties that matches all the below given criteria, safe investment with high returns, For more information call 8375924100.
Safety of the invested amount ( For more information call 8375924100 or visit www.Property.Sale )
The safest way to invest in any property is to invest with bank guarantee. Amount that builder assures to return on monthly / quarterly basis till construction is complete should be taken with exclusive bank guarantee. Such bank guarantees should be exclusively fo the cheques given by the builder. Such bank guarantees are given in lieu of fixed deposits that are done by the builder. In case of any default in cheque clearance, one can be present it to the banker (on the basis of bank guarantee) and amount is paid by the bank from the FD of the builder. Bank guarantee should be exclusive for the cheques that is given to the buyer.
All cheques of assured return should be taken in advance, if construction period is of two years then one should take 24 cheques in advance (if payment is on monthly basis). Adequate delay penalty / lease rent clause should be there in the builder buyer agreement.
Properties that are pre leased or where builder gives assured return are good for those who have less time to manage their properties. Other safety aspects of such investment are as under:-.
- Land of the builder should be fully paid up
- There should be no loan on the builder against the property that he is selling
- Property should be bankable, the bank should be giving loan for the property. This is because bank does its own checks to assess the financial viability of the property.
- Transaction account of the property should be in a reputed bank
- Project should be RERA registered
- Adequate penalty clause should be there for delay in possession of the property
- There should be easy payment plans like 50:50, where buyer pays 50% now and 50% on possession
Easy exit polity to the buyer
Builder should provide easy exit polity to the buyer by giving free transfer, this ensures good profit that occurs due to escalation of the price of the property. As a thumb rule ready to move in commercial property is sold at 6% annual return.
Lower rate of GST
GST on a commercial property is 12%. Most of the builders charge high GST from the buyer i.e full 12%. Taking high GST brings losses to the buyer. GST in a commercial property can not be avoided but the builder can take lower GST from the buyer (like 8%) in view of the input costs that the buyers will adjust for the GST that he is paying for construction material and services.
Assured return on investment
- For down payment plan (95% in one month and balance on possession) - Assured return is 12% per annum
- For high partial down payment (75% in now month and balance on possession) - Assured return is 11% per annum
- For partial down payment (50% now and balance on possession) - Assured return is 10% per annum
After possession builder gives assured rent for generally 9 years at the rate of 8% per annum. Though the return drops (from 12%,11%, 10% depending on the payment plan choose) to 8%, buy by this time the price of the property increases as ready to move in properties demand higher price. At this time number of buyers also increase due high demand and lesser supply of such ready to move in properties in the market.
Where to buy such properties ( For more information call 8375924100 or visit www.Property.Sale )
Such properties are available in many cities but the most preferred cities are Greater Noida (Only greater Noida west and not proper Greater Noida), Noida (sector 74-79) and few pockets of Gurgaon. Greater Noida west is proffered location mainly because the floor to area ration of this place is very high, this means that more people are staying in per sq km area in comparison to other places like Gurgaon, Delhi etc. Location with high population density gives better returns in Commercial properties. This also increases the safety aspect of the property as demand of such properties in these areas are high.
Prefer buying properties that are on main road and busy area of the city. This provides free advertisement and visibility to the tenant of the property, thus, rent of such properties are higher. Properties on wide 130 / 90 meter roads should be preferred.
RERA Registration
RERA registration of properties is must these days. RERA is a real estate regulatory, it ensures that the builder provides promised property to the buyer. Delay in possession from the delivery date attracts 10% penalty on the builder. This 10% penalty is very heavy as it is calculated on the entire cost of the project. If the project is of 2600 crores, then the delay penalty on the builder may be as high as 260 crores.
If a builder has a RERA date of 24 months from now then builder has to complete project before jun 2022. In such cases builders makes endeavour to deliver project at least 3-4 months before RERA date.
Height of the building and risks associated
Higher the building, higher is the risk. Tall buildings requires lots of effort and time. Building that is 4-5 storey high is considered to be of lesser risk. If foundation work of a 4 storey building is complete then it takes just 6-8 months to complete the structure of the building. Money required to complete a building after foundation is not much. Finishing efforts of a commercial building is not as high as residential buildings as in most cases no interior work in required in a commercial building.
Invest in a show window of the project
If complete project is of say 25 acres then generally there is one patch that is most visible to the people, this is the prime location of the project. For builder this is the show window of the project. Builder puts in extra efforts to complete and beautify this part of the project. This is important for the builder as this creates the first impression on all potential customers that visit the site. Such location is the show window of the project and this is the safest and most profitable are to invest in any project.
Mostly such locations are on the entrance periphery of the project, therefore, maintenance of such area is not much. Even after possession such locations are well maintained.
Right time to invest in property
When is the right time to invest in property ?. Due to pandemic many people are opting not to invest in real estate, in turn they are more comfortable in putting money in their saving bank accounts.
Bad times are the right time for investment, good times in real estate are good to exit with good profit. most of us do opposite to this. We invest when real estate is booming and then we try to exit in recession. As corona pandemic is on, this is one of the best time to invest in property. Builders are giving properties at no profit no loss basis, few are giving properties in losses. One who buys property now will only see good profit in coming years.
Calculations ( For more information call 8375924100 or visit www.Property.Sale )
Size of the property :- 478 sq ft
Basic Price :- Rs 5298/- per sq ft
Discount for first few units:- Rs 200/-
Discounted basic price:- Rs 5098/- per sq ft
Basic cost of the property:-
478 sq ft X Rs 5098/-
= 24,36,844/- per sq ft
Basic cost with GST ( @8%):-
Rs 26,31,792/-
Pay 95% now of basic:-
Rs 25,00202/-
Return per annum is approx:-
Rs 3,00,000/- per annum
Monthly return is approx:-
Rs 25,000/- per month
Possession time for the property will be 24 months and 24 PDC of Axis bank will be given for assured return. Exclusive bank guarantee will be given for these cheques of same bank (Axis bank). One may go to bank and verify the authenticity of the bank guarantee. After possession builder will give assured rent at the rate of 8% per annum.
Profit in any property is calculated in terms of return on investment plus the appreciation of the property in future. One can expect good appreciation when property status changes from "under construction" to "ready to move in". Ready to move in properties with good rental returns are always high on demand.
Conclusion
It makes more sense in putting your money in a safe real estate investment that gives assured return of 12% per annum. Such investment can be made from the income of ones wife / daughter / any person who has a low income in a family. Investment of Rs 26 lakh can give monthly return of Rs 24,000 per month. Builder that gives proper bank guarantee leaves nothing to doubt as builder is forced to keep fixed deposit of this amount in bank. Builder who spends money on construction, one who does not take any loan and one who keeps huge sum of money as FD in bank is financially sound for sure. Once property is ready to move in the price of the property as such increases and all doubts are over.
After possession the next challenge is to rent out the property. If builder is giving assured rent for 9 years after possession then all worries of a buyer are over. However, such properties are seldom to be found and there are may buyers for such properties. One needs to take a quick decision to board it as in many cases such properties are sold out in matter of few weeks.
We have some exclusive properties that matches all the above given criteria, safe investment with high returns, For more information call 8375924100.
Residential property demand to rise after lockdown
Residential property demand is likely to rise after lockdown, one of the indicator is the search of keyword "home loan". There is a rise in search of this keyword in last one week, the volume of search has increased 100% in last one week. In fact, as of now volume of search is even higher that what it was before lockdown.
We can infer that rise is search of keyword "home loan" shows that more people are contemplating buying a house. The reason for same is elaborated as under:-
- Most people plan buying a house at the end of school session
- Interest rate on home loan has decreased significantly. People prefer paying home loans over rent.
- Most of the rent agreements are renewed between may - july, new agreements are generally 10% higher than the previous agreements, this constant rise forces the tenants to buy a house of their own
- Tenants are asking for waiver/discount on rent because of lockdown, this is resulting into discord between tenants and owners
- Work from home concept has increased the importance of home, people want bigger and better homes
- People staying in illegal/unorganised colonies have now realised the importance of hygiene and sanitation, therefor, they want to shift to houses in good societies.
- Builders are offering better payment plan and discount
- Many buyers have to settle cases of long term capital gain before July
- Accumulation of home buyers who were not able to buy a house in last 3-4 months because of lockdown
In residential property demand of "ready to move in" flats are on rise, demand of under construction property is low, however, builders are able to sell under construction property by offering good payment plans. Recently introduced 10:90 payment plan resulted in good sale of under construction properties. Demand of house has increased because schools are closed and itt is convenient for families to shift during school summer holidays.
Many buyers are asking for discount citing pandemic and in response sellers are offering properties at reasonable price. Buyers who are expecting huge discount are found disappointed as the same is rarely available in the market. Many buyers who are taking under construction properties on big discount will face problems as builders offering big discounts may lack intention of completing the project.
It is prudent to buy house now as cost of building property is going to rise, inflation is high and labours have moved back to villages. It will take some time before construction work will start in full flow, therefor, the demand of ready to move in apartments will rise. With increase in demand and decrease in supply, cost of "ready to move in" houses will increase.
Coronavirus pandemic will reveal new segments in Indian Real estate
With onset of coronavirus in the world all industries are undergoing changes. Impact of coronavirus on real estate is big, however, there are certain segments in real estate where the demand is going to rise. Such segments are as under:-
- Self reliant residential clusters:- Demand of self reliant residential clusters will increase. Residential clusters that can generate all essential requirements of the residents from within the campus will fall in this category. Such complexes will have following:-
- Green houses / vegetable gardens to provide organic vegetables to the residents
- Storage place for grains and pulses
- Hydroponic farming facilities
- Fruit trees and gardens
- Sanitisation facility for outside products
- Facility for screening of people and items
- Isolation rooms for patients with all facilities
- Clustering plan for houses to ensure containing virus in a cluster/clusters.
- Independent office/industrial complex
- Stand alone office complex that can be used by one company
- Control of management will be with the company
- Company will control the entry and exit of people
- Residential facility for employees to be with in the building or nearby
- Drive in Auditoriums/ restaurants
- Drive in auditorium is a very popular concept in USA. Here people drive-in in a car to an open ground and watch movie on a big screen without getting out of their cars
- Drive in auditoriums ensures minimum human interface, thus, this is safe in comparison to auditorium in malls
- Studio apartments in metro cities
- Demand of furnished studio apartment will increase as people will avoid staying at 4/5 star hotels. Senior executives of companies will require self managed studio apartments for their long stays / joining of companies
- Second home / studio apartments at tourist places
- Tourist will avoid staying in hotels and the regular tourists will prefer buying second home at good hill stations / tourist places
Coronavirus stay in the city of your work
India is fighting two front wars with coronavirus at one end and economic slowdown on the other. Many may die of coronavirus but if lock down continues then many will die because of famine. Officials will have to chalk out plan to open businesses. One of the biggest challenge for builders, offices and industries will be to follow the guidelines of Government. We all understand that the lock down will be opened in phases and workers will not be allowed to come to work place from various cities.
As per latest situation Haryana, Punjab and Uttar Pradesh borders are already sealed, people from Delhi can not move from Delhi to these states, inter state movement is already banned. Delhi is one of the major hot spot of coronavirus and many people from Delhi work at Noida and Gurgaon. Daily inter-state commuting for work is not likely to open up for at least 5-6 months, under this condition companies will have to hire local talent and lot of people who commute inter-city will loose their jobs. Delhi is the epicenter of NCR region., which includes parts of Haryana .,Rajasthan and Uttar Pradesh. The urban and economic development seen in these parts of other states is partly because of that , their proximity to the capital .
Restricting inter-state movement has many benefits for now . Few such benefits are as under:-
- Control on spreading of pandemic
- This will save time for many
- Lesser traffic on road
- Less consumption of fuel
- Lesser air and noise pollution
- a better way will be developed to manage urban system within city and across states .
Most probably the lockdown will be opened gradually with loads of restrictions and SOPs for all . The most affected demograph ( elders and kids ) might face restrictions for longer . Vaccines will be developed probably by another five months so following social distancing while doing work will be norm .
Real Estate : Evaluations to be done post lockdown
If you are in real estate business then, in all probability your work has come to a halt in present lock down scenario. There have been news that certain companies have sold 100 flats / 200 flats during lock down. However, life has not been so rosy for most of the realtors. Post lock down the first evaluation that one needs to do is to see if this business is sustainable for you. What is your minimum requirement to keep yourself afloat and will you be able to meet this minimum requirement.
One may have to dig pockets deep and eat from his savings for few months. Sales will start but it may take some time. As a realtor you need to work out monthly expenditures and keep at least six months of expenditure in kitty. If required one can reduce fixed expenditures to meet six month expenditure requirement.
Business runs on sales, thus, one should evaluate the number of sales that he can hit in first six months after lock down. For better sales one need to evaluate the following:-
- Number of likely buyers in the market
- Requirement of buyers
- Residential ready to move in
- Pre leased property with fixed rentals
- Office space / stand alone building etc
- Number of key players in your industry and what kind of numbers they can achieve
- Products available in the market and evaluating products in various price brackets and segments
- Chances of surge in sale of a particular product and likely reason for the same
- Chances of surge in sale in particular location and likely reason for the same
- All assets available in the environment and optimal exploitation of these resources
- Understand / study the mind set of buyers post lock down
One of the biggest challenge will be closure of the deals as buyers will take far longer time to close it. Buyers will be of a mind set to get a very good product at throw away price, however, we all know that this never happens. Getting a cheque from a buyer will be a big challenge, even with a very competitive price and good payment plans the buyers will be reluctant to close a deal. Even if the buyer will be ready to make the payment, many relative and friends of buyer will pop up in the last moment to say " Hune teher ja, jaldi ki hai, maal ni bikda in builduran da, hune taa ye whore kum karange 2-3 mahine wich" which means ," hold on, there is no hurry, builders are not able to sell their flats, builders will further reduce the prices in next 2-3 months".
Coordination between the channel partners and the builders will remain the key factor for closure of the sales, getting fresh data of buyers will be the key, people who generate their own data will prevail, realtors who buy data and do listings may suffer. Builders should offer the lowest possible price, builder will have to make it very clear to the buyer that the price and the plan that they are offering is the lowest and the best for the buyer. Certain builders who have funds to complete the projects on their own may come up with a very lucrative payment plans like 20:80 or even 10:90, they may even offer very low price or 10-20 freebies. Good coordination among builders will make things easier for everyone.
Search of specific property portal keywords are at all time low
Property listing portals are the websites that facilitate brokers/owners to list their properties for sale/rent. It also provides a platform for the builders to showcase their projects. Known property portals in India are 99acres and Magicbricks. Web portal 99Acres started in 2005 and Magicbricks started in 2006. The trend for both the portals were upwards for the first half of their journey for the search of specific keywords i.e "99acres" and "magicbricks" (brand keywords) respectively. As per data available from google, property portal 99acres peaked to it's maximum visits in October 2010 and magicbricks in March 2013 for keyword search "99acres" and "magicbrikcks" respectively.
As on date "interest over time" on both the property portals for brand keyword has fallen to it's lowest since August 2006, in fact the present search of the keywords are almost half of what was there in August 2006. Property listing portal 99acres has come to 8% of it's peak visit and magicbricks has come to 7% of it's peak search (for brand keywords).
Present fall can be attributed to the Coronavirus pandemic as most of the people have lost interest in buying anything that is categorized as non essential item. Moreover, buying a property is a process that requires regular human interaction, site visits, comparisons of property, registration etc, and under lock-down these activities are not possible.
If we talk about data before break out of pandemic, we see that the search results for these keywords has constantly fallen since Apr 2015. Some upward spikes were seen but overall graph kept going down. Before lock-down the search were between 17 to 22 % of it's peak value for the mentioned keywords.
Visits to the web portals are likely to increase after few weeks of lock-down. This pandemic will define new trends in the real estate industry, thus, it is important for all stake holders to modify their strategy and device new "innovative ways" to promote their product / services.
Disclaimer: This article is based on the statistics of the google trends for the search of specific keywords and it does not indicate the overall popularity / visit trends of any web portal
Gurgaon and Noida likely to be coronavirus free soon
Gurgaon and Noida are likely to be coronavirus free soon, this is mostly because the concerned authorities in these two cities are doing excellent work in controlling the virus. There has been no new case of coronavirus in Gurgaon for last six days as on 16 April 2020. In Noida there has been no new case in last six days except for 14 April where 16 new cases were found, however, all 16 people were suspect and were already quarantined. In Noida and Gurgaon the authorities has earmarked 27 and. 9 hotspots respectively. Noida has reported 80 corona virus cases and Gurgaon has reported 32 coronavirus cases.
Aggressive screening and quarantine is the key for control of coronavirus cases in Noida. In Gautam Budh Nagar screening of around 10 lakh people has been done by visiting almost 3 lakh houses, around 1600 of suspected people have been quarantined. Noida deployed more than 400 teams to do screening of people and during this screening authorities were able to identify 957 travellers. All travellers identified have been quarantined. It is pertinent to mention that most of the cases in Noida was from the cease fire company, this company accounts for more than 40 cases in Noida. On the other hand, cases in Gurgaon has been low in comparison to Noida, with no new cases coming up in Gurgaon for last 6 days we hope that situation in Gurgaon will become normal soon.
One major advantage of Noida and Gurgaon is that these two cities are better planned than Delhi, there are very few illegal colonies. Most of the people are staying in high rise societies that has one entry and one exit gate. Under such condition managing of society and people becomes easy. Most of the people staying in Noida and Gurgaon are working in IT or corporate companies, this means that they are more educated and they are better aware of their responsibilities as a citizen of the country
"Property for sale" search falls to all time low on google
In India search for keyword like "property sale" and "property for sale" fall to all time low on Google search. As per Google trend the "property sale" keyword had surged high in May 2010, this means that in a scale of 100 the keyword had touched the 100 mark in May 2010. It fell sharply to 66% in Aug 2010 and ever since it struggled to reach above 80% mark. Since May 2010 the peak was seen July 2011 (74%) and Feb 2013 (68%).
Sep 2014 is the last time when the search of keyword "property sale" was above 55% mark as it kept falling to new low ever since. In fact after Feb 2014 it never saw a mark above 50%. One of the main event point is Dec 2016 when demonetisation took place, In December 2016 the search marker came down to 33% and ever since it kept oscillating between 33% and 46%. This means that half of the people lost interest in searching property in India in last eight years.
With this information available to real estate industry it was taken that search in low 30% is a slow market and mid 40% is a higher side. No one was hoping to see the search results to cross 50% marker until recently when following uptrends came up:-
- October 2019 - 34%
- November 2019 - 40%
- December 2019. - 41%
- January 2020. - 43%
- February 2020 - 44%
However, with the outbreak of coronavirus the tables were reversed immediately with the result of next two months came as under:-
- March 2020. . - 31%
- April 2020 (Partial). - 23% (likely to stay between 31% and 35%)
So we see that there is a fall of 30% of search volume for "property sale" keyword because of coronavirus, overall the market has fallen almost 70% from it's peak value since May 2010. Real estate market is going through a rough patch and it is likely to make a new low. With lakhs of unsold inventories in many cities, builders were relying on the festival season of Navratras for sale, however, the same did not happen. Nothing much is going to move in real estate industry for next few months, therefore, real estate companies need to rethink of new ways to boost up the sales.
Government should look into the matter as a timely help from the government work as a booster doze for the industry. Low interest loans, relief packages, waiver of GST for buyers, waiver of GST on construction material, relief on registry charges, exemption on taxes for money invested in real estate, waiver of short term / long term capital gains etc can help in revival of the industry. These steps are important because real estate provides employment to many people in this country.
Unplanned colonies likely to be hotspots of coronavirus spread
Pandemic of corona virus infection is surging to higher numbers with passage of time. Spread of corona virus in large scale was ominous and fears have now coming true. Authorities are having tough time in controlling the spread of the virus, adding to the woes are illegal and unplanned colonies. Unplanned colonies are mostly illegal colonies that were either regularised by the government or exist with out any authority. In few days place like Dharavi in Mumbai has 22 new corona virus cases, government is now planning to isolate Dharavi and do testing of almost 7.5 lac people staying there. Major issues of an unplanned colonies are as under:-
- Large / uncontrolled area of occupation
- Multiple entry and exit points
- Narrow roads and walkways
- No major dividing roads
- Lack of parks and open area
- Lack of / improver waste disposal system
- No demarcation of residential and commercial areas
- No restrictions on size of residential units
- No setbacks and space between the flats
- Overpopulated areas
- No fire / service lanes
- Unhygienic ways of people staying in such colonies
All the above factors contribute towards poor hygiene and sanitation. Over population and narrow lanes makes social distancing difficult. Poor waste disposal and lack/poor sewage system results in easy spreading of contagious diseases. Movement of service vehicles like ambulances, fire tenders, garbage trucks is not possible in these area.
Social impact of such areas should be taken into consideration as spread of virus in such area will be disastrous. In such areas virus can spread like wild fire. Strict isolation and home stay should be implemented, followed by thorough testing and sanitisation.
In long run government should come up with a policy to promote planned cities and planned colonies, responsibility of providing good housing facilities lies with the government as housing is one of the essentials. Following measures should be taken to promote well planned housing at low cost:-
- Reduce approval time for approval of housing projects
- Do not charge taxes on construction material for affordable housing
- Provide subsidy for houses
- Provide loans at zero / low interest rates
- Do not charge GST on under construction houses below Rs 50 lacs or more
- Provide facilities like schools and parks in all societies
- Provide good hygiene and waste disposal system in the colonies
One can not be penny wise and pound foolish in doing business, Government and authorities should promote planned housing, they should not levy any taxes on affordable housing. Higher cost of houses forces people to buy property in illegal colonies. However, in the long run the damages that happens because of these short gains are astronomical. We should not forget that providing good quality houses is a duty of government, thus, all support should be extended by the government to provide the same.
Listing property for sale | Property for sale listing
Listing of property is the first step for the sale of property. In case of mandate deal property sale takes place either through listing agent no matter who sells the property. Listing of property means to advertise in the environment that the property is available for sale. Proper listing is one of the primary skill of a real estate agent. Listing and selling of property are the two most important part of a real estate deal. All real estate agents collect the data for listings in various ways. Few of the ways to obtain listings are as under:-
- Farming neighbourhood
- Through cold calls
- Referrals
- Sale by owners
Farming neighbourhood: Farming is a technique where a broker/agent concentrates on a particular area and becomes a well know name in that locality. Farming gives a steady flow of inventory as a person becomes an expert of that area and people know him/her by name. Such broker/agent also knows of the property details and the issues related to the property in the area. He develops affinity with the residents of the area. Before choosing any area one should evaluate his competition that area, his comfort level in handling property of such locality, he should also evaluate the turnover that can be expected from such a place. It is always better to get affiliated with a location when it has huge potential and has just started to develop.
Through cold calls: This is one of the oldest technique where the agents makes a cold call to the owner of the properties and asking if the owner is interested in selling his property. For making cold calls there should be a data of home owners, this data can be obtained from various sources. Cold calls is the game of numbers where one has to evaluate that how many calls will give one listing, this helps to ascertain the expenditure that one will incur in getting a viable listing. In cold calls first contact is very important, therefor, one should have good executives to make calls specially for high end properties.
Referrals: This is one of the most efficient way of listing a property as well as to find a buyer. Referrals come through known friends and other professionals, having good network and reputation one gets many referrals. Maximum referrals also comes from previous clients and customers
Sale by owners: One way of getting listings is by calling the owners who are trying to sell a property on their own, this is known as "sale by owner". In this case the most important task is to convince the owner that the agent can do a better job by selling the house in shorter time and at higher price. Agents gets a track of "sale by owner" property through "for sale" signs put on the property, though newspapers, through online web portals etc. One of the best way to convince the owner is to find a genuine buyer for his property and then approaching the owner. In worst scenario the owner may agree for one side listing, that is, one side brokerage.
Indian real estate questions at the time of corona virus
At the time of corona virus pandemic nothing is stable. Equity market has crashed down and most of the businesses are shut. All countries are going through a financial turmoil and biggest problem is that no one knows when this pandemic will stop. Past one week, lot of people have asked us questions related to stability and price of real estate under this condition. Few of the questions and answers are as under:-
- Question - Will real estate prices go down due to corona virus crises ? (most frequently asked question)
- For last many years 95% of investment in Indian real estate is by the end users. People who invested in real estate were clear that the inventory over hang time in India is almost 2 years and it is not an investor friendly market anymore. As a result, most of the people who purchased properties are either the end user or are long term investors. Prices of the properties were at all time low when corona virus pandemic started, therefore, there is hardly any room for properties to go down. However, the prices may go down if this pandemic lasts for more than one year. There may be some sellers who will do a desperate deal, but such sellers won't be that many. Moreover, desperate deals seldom goes to end users as brokers and investors pick up such properties.
- Question - How long will it take for real estate to come up again under this situation ?
- Real estate is a necessity and is third on priority after food and clothings. If we take real estate as sale, purchase and rentals then we see that rentals will pick up immediately, then after some time sales will also pick up. In major cities like Mumbai, Bangalore, Gurugram, Delhi etc people will come back from small town and villages for jobs and rentals will pick up immediately as the situation is normal.
- Question - How long will this situation of lockdown continue ?
- Due to financial constraints the situation will become sub normal by Jun 2020. In case corona virus is not controlled then we will be forced to live with corona virus as shut down beyond Jun 2020 will result in more deaths due to famine and poverty. We will be asked to take precautions and work in a normal way. Just like AIDS, we take precautions against AIDS and we keep working. Either Corona virus will go away or we will adjust ourselves to live with corona virus around us. There is a possibility that government may resort to open few cities for local population, if Gurugram is corona virus free then they will open Gurgaon with a condition that no outsider will be allowed to come in without mandatory quarantine period. Under such conditions rentals may pick up.
- Questions - What kind of properties will have maximum impact because of corona virus ?
- Under construction properties of lesser known builder will face problems. Many builders may file for bankruptcy due to corona virus epidemic. Properties rented to hotels and fine dine restaurants will face the wrath. Many hotels and fine dine restaurants may vacate the properties. Properties with easy payment plans will be preferred. Commercial properties will suffer in case the pandemic goes on for a long time. Properties rented to hospitals and Pharma companies will keep giving rentals.
- Question - I have a property and I want to sell that property, what should I do ?
- If there is no urgency then you should hold on to your property for few more months. In case you have some urgent requirement then you should evaluate demand and supply matrix of that location. In case there are many unsold inventory in that area / there are many sellers then you will be offered a price which is around 30% lesser than the previous market price, else, you will get a price which is around 15% lower than the market price, Locations with good demand will pick up to previous market price in few months. We are taking previous market price as the prices as on 01 Jan 2020.
- Question - I was planning to buy a property but lockdown happened, should I buy property after lockdown restrictions are over or should I wait for prices to go down ?
- In case you are looking for ready to move in property then after lockdown you can explore some desperate deal offers for 2 months, after that you can buy property. In case you are looking for under construction properties then do a deal after 15-30 days of lockdown, you can do good deals and may get a very easy payment plan. Waiting for too long will not help as property prices do not have much room to go downwards.
- Question - My tenant is vacating my property as he is not able to pay rent. What should I do ?
- Give your tenant a rent free period of 2-3 months or may be bit more. For commercial property one can give higher relief to the tenant, as per nature of his business and time it will take for revival. One can also go for profit sharing model for few months and then switch over to rent again. Try to support your tenant in this crisis and in the longer run you will see that such gesture will get you financial gains and few good friends.
Above are the questions (with answers) that people keep asking us under present situation of corona virus pandemic. The answers may or may not be correct as this is our view, one may consult other professionals to gather more information on the subject.
Location of Corona Virus cases found in Noida and Greater Noida
As of now around 30 plus cases of corona virus infection has been found in Noida. Most of the people got infected from a UK based traveler, he was in Noida from 15 to 17 Mar 2020 to do audit of a Fire safety company in sector 135 Noida. All known cases of corona virus in Noida along with the location are mentioned below:-
Sector 41 - 01 person, returned from Indonesia, 18 Mar 2020
Sector 100 - 01 person, returned from France, 17 Mar 2020, Lotus Espacia society, now recovered
Sector 74 - 01 person, returned from Europe, 21 Mar 2020, Superteh Capetown society
Sector 78 - 01 person, returned from France, 17 Mar 2020, Nimbus Hyde park society
Sector 137 - 02, returned from Europe, 24 Mar 2020, Paras Tierea society
Sector 137 - 01, returned from Europe, 26 Mar 2020, Paras Tierea society
Sector 137 - 03, 29 Mar 2020, UK based traveler
Sector 37 - 01, son returned from Switzerland, ward 11A, 26 Mar 2020
Sector 44 - 01, UK based traveller, 26 Mar 2020
sector 128 - 01, 26 Mar 2020, Not much of a detail is known about this case
Sector 27 - 01 person, 28 Mar 2020, UK based traveller
Sector 150 - 02, returned from Europe, 26 Mar 2020, worked in same company as 02 person found positive in sector 137
Acheja village, 02 person, Dadri - 26 Mar 2020, Mehak Residency village
Sector 2, Greater Noida west - 02 person, mother and son, son returned from Denmark, 22 Mar 2020, Nirala Greenshire society
Sector 2, Greater Noida west - 01 person, daughter of couple who tested positive earlier
Village Bishnoli, Dadri - 01 person, 28 Mar 2020, UK based traveller
Alpha 1, Greater Noida - 02 person, returned from Dubai, 22 Mar 2020
Omnicorn 3 - 01 person, 27 Mar 2020, got infected from UK based traveller
This list is tentative and is compiled with common knowledge. Please check authorise sources for exact information of corona virus cases in Noida. Also suggest any correction and omission if any.
Corona virus: Clustering of cities and towns is important
As of now there is a lockdown due to corona virus pandemic, we are forced to stay at home and are getting essential items from nearby shops. In short, nobody is allowed to travel more than few kilo metres ,we are working from home / not working at all. As a result fuel consumption has reduced, carbon emission is minimum and air quality has improved. According to latest report ,global carbon emissions has reduced by 25% ,which is a very encouraging.
However, this is a temporary phase, as things will improve, we all will start following our normal ways of life. If lessons are to be learnt from present situation then we should do partial clustering of cities, where we should ensure that routine inter city travel and dependencies reduces. There are number of people who live in Noida but work in Gurgaon and vice versa. Many people staying in Delhi go to work either in Noida or Gurgaon. This daily routine travel for work between cities should stop.
Clustering of city will ensure that an infectious disease like "corona virus" stays local and it will not hamper the working of other cities. Clustering of city means that people living in one city should work in same city and other inter city dependencies should be zero / minimum. One has to take a call between city to live and city of job. If one is staying in Delhi and is working in Gurgaon then he should take a house on rent in Gurgaon, there is no point travelling from Delhi to Gurgaon everyday for years and years. Issues with daily long distance commuting creates many problems, few are mentioned are as under:-
- More traffic on the roads
- More fuel consumption and more carbon emission and more pollution
- Wastage of time and effort
- Spreading of epidemic / other health issues
Taxes on intercity travel should be high, specially for the private vehicles. Daily long distance commuting is one of the major contributors to traffic and pollution. If required one should use metro rail to commute between cities and then use public transport / local taxis to commute.
If pandemic of corona virus continues and with prediction of many such more scenarios in future , clustering of cities will become necessary. If a particular city, let's say Gurgaon becomes free of corona virus and adjacent cities are still infected then there is no point in closing down Gurgaon. Under such condition Gurgaon should open up for locals, and people from other cities should not enter Gurgaon, this is complete clustering, Complete clustering seems to be a practical step as the cities / town with zero corona virus cases should fortify and regain normalcy.
When situation improves in all cities then complete clustering should be converted to partial clustering where people can enter a city using public transport / paying high tax on personal vehicles.
Overall, we should encourage people to reduce their routine travel. We should encourage companies to hire local talent. In case a company has to employ a person from outside then he/she should be encouraged to take a house on rent nearby. All companies should furnish a certificate declaring the number of people who travel more than a particular distance (say 10 kms) to reach office along with their mode of transport. For supply chain there should be local warehouses to cater for the daily needs of retailers. Many other measures should be explored to reduce the traffic and reduce long distance routine travel. In present scenario clustering of cities is a way ahead, government and other agencies should do their best to create a framework for city clustering.
How real estate agents can work from home
Real estate is an industry that requires social contact at various occasions like client visits, meetings, negotiations, transfer of documents etc. At present times when fear of contracting corona virus has gripped everyone, it is not possible for many to carry on with the work in usual ways. Now real estate professionals have two options to exercise, one is to stop working at all and the other is to device new ways to work. Some of the things that real estate professionals can do while staying at home are as under:-
- Do tele conferences/video conferences with your team
- Speak to your prospective and existing clients
- Contact on phone , prospective sellers and buyers
- Collect and collate data
- Learn and conduct training for your team on video conference
- Do online promotions of your brand and products
- Make effective videos and creatives
- Talk to builders and channel partners for future collaborations
- Make social media groups and plan social media expansion
- Do head hunting and try to find good employees
- Improve on policies and processes for all departments
- Share data with counterparts of other real estate companies
- Strengthen up ties with existing investors and develop relations with new investors
- Make presentations, information brochures, pamphlets etc
- Find fundings for expansion of business
- Discuss topics and issues with learned people of the industry
- Write case studies and write about the lessons learnt and ways to improve processes
- Take feedback from the customers
- Learn about new technologies like big data, Artificial intelligence etc
- Study about international real estate market and ways to implement positive aspects of the same
- Plan expansion of business to other locations/cities
- Share relevant articles and discuss
- Share list of books, songs, movies etc
- Conduct online creative workshops
- Update social calendar and planners
- Write a blog the way I am doing right now
How to sell your property in short time
Buying a property can get you good profits as investment in real estate is safer than any other investments, this is because bottom margins of real estate do not go too low. In equity market a share for Rs 100 may fall to Rs 2, but in real estate property value seldom falls below 30%, (provided you picked up good property and overhead cost is low.) . Buying a property is easy, however, selling a property takes time as liquidity is a major problem in real estate investment. "Inventory overhang" is a phrase that tells you the average time to sell a property of a particular segment in a particular city. Like, inventory overhang of a residential property in Noida is around 2 years, this means that it takes average two years to sell a residential property in Noida. Inventory overhang is mostly high during market slowdown, this is because of oversupply of properties and stagnation of property prices. If you have a property and you want to sell the property in a lean market, then here are few tips that may help you sell your property fast:-
- Engage a consultant who is committed to cause:- Engage a consultant who is committed to sell your property. He should know that he is the one who has exclusive rights for selling a property for a certain time period, provide him with the keys of the property and give him authority to make minor decisions on your behalf. Initial focus should be on visits of potential buyers and taking feedbacks from them. During lean time the conversion rate is one out of ten, this means that one customer out of ten who visited the property will be seriously interested in buying the property. If this does not happen then one should take feedback from all visiting customers and see if there is any any flaw in the sales pitch. Flaw in the sales pitch is mostly about wrong pricing or selling a property that has many drawbacks.
- Be firm and decisive:- If you have decided to sell a property then be very firm about the same, do not get distracted when some one tells you to hold on to the property for one more year or there is some development going on in that area and property price will increase etc. Being indecisive affects the reputation of the seller and properties of such buyers are tagged as negative properties / time wasters.
- Use social media to promote your property:- Social media is a good way to promote the property that one wants to sell. Information regarding the sale can be circulated on platforms like Facebook, whattsapp, twitter etc. While sharing the information one can request to circulate the information to other group members. Put up a good picture and give a good description about the property, give a genuine reason for selling your property and focus on the advantages that buyer will get by doing the deal.
- Make your offer look lucrative:- Offer should always look lucrative as most of the sales happen because of the fear of missing out on a good price or a good property. Add on a special clause for limited period like two ACs will be given free if deal is done in 3-4 days, or you will give additional discount only for next few days.
- Focus on people who are staying on rent in same society or area:- Todays tenant will be a buyer tomorrow, most of the tenants end up buying property in same society or same area, this is mostly because of the nearby facilities like schools, offices etc. All tenants in the society / area are potential buyers. One can use mediums like notice boards, pamphlets, social media to reach to such potential buyers. One can also talk to the RWA staff, guards, shopkeepers etc to pass on the information.
- Be flexible about the deal:- Be flexible about the deal at all stages, do not say no to deal for a variation of small amount, be logical with the buyer. However, it is also important to shrug off the buyers who make ridiculously low offers, such people are time wasters and a polite "No" should be the first and last conversation with such buyers.
- What is the going rental in the area ?
- How much is the maintenance cost ?
- What are the power back up charges ?
- What facilities are there in the club / community centre ?
- What are the charges for various house hold works ?
- How good is the response of maintenance staff ?
- What are the security features ?
Arun Vihar Noida | sector 28 | sector 29 | sector 37
Well planned like other sectors of noida , Arun Vihar is a low density , well located colony for retired and serving armed forces officials. Civilians also can buy and stay there .Arun Vihar covers sectors 28, 29 and 37. The resident welfare association also known as AWRWA is , located in Sector 37. Spread over approximately 300 acres, it consists of 4,752 dwelling units with around 27,000 residents. Talking to veterans here the story of setting up of Arun Vihar was a catalyst in the rapid growth of Noida, as initially Noida was not attracting a lot of people as a viable option , safe option to stay. The land was given to the AWHO at a very low price to make it attractive for serving or retired personnel to apply in the housing units . Slowly it provided a much needed stimulus to the development of other prime sectors in its vicinity. Atta village in the vicinity developed into the glitzy hub of malls and multiplexes and shopping destination for all of Noida and south delhi ,it is now. The RWA has divided itself into 25 wards for the ease of administration. Each ward is looked after by a designated Ward Director. The ward director is elected. The neighbourhood has a tri-service war memorial, Shaheed Smarak, built to commemorate martyrs. And each year high dignitaries come to pay respect and homage .
Botanical Garden and Noida Golf Course are Metro stations close to it. The RWA also has a library for the resident bookworms. The common community hall is located in Sector 37. Arun Vihar Institute (AVI), the RWA club, is a much sought after venue for entertainment and relaxation for residents of Arun Vihar. .Several markets: Ganga market, Lal market, Brahmaputra shopping complex and Godavari complex. The markets meet all the basic needs of the residents . Army public school and Delhi public school are big schools within the perimeter. Additional facility of ECHS and canteen services are also available for retd personnel. Buses regularly ply for patients wanting to visit Base Hospital and Research and Referral Hospital in Delhi. The veterans are and stay happy here and more people retiring opt to buy flats here for permanent residency making it as an ideal option to buy or rent a flat.
Godrej Properties | 20:80 Plan likely to give 500% higher profit
Godrej Properties is one of the top leaders in the Indian real estate market. It is a brand that every one trusts. Godrej is able to sell most of the properties in a very short time as demand of branded property is very high in otherwise sluggish market. With many small builders defaulting in terms of quality of construction and delay in possession people are moving more and more towards branded properties. For limited time and for limited inventories Godrej has come up with a payment plan of 20:80 ( likely to be available for very short time), where the buyer has to pay 20% payment of the property now and balance is to be paid on offer of possession. This is the first time that any builder has come up with such a relaxed payment plan in India at such an early stage of construction. Features of this payment plan are as under:-
- Pay booking amount ( One can get full refund of this amount before making another payment or signing of Builder buyer agreement)
- Pay 20% of the cost of the flat in one month including booking amount
- No need to take home loan or get it dispersed or in other words this is not a subvention plan. Subvention plan is not buyer friendly as default in payment by builder means that buyer is liable to make the payment.
- Pay 80% on offer of possession
This payment plan is one of the best that any builder has ever launched. This will result in hypothetical profit in following ways:-
- One saves EMIs of bank loan for approximately three years in some cases. Taking that the house is for Rs 100 lacs one saves EMI on Rs 75 lacs per year. EMI on Rs 75 lacs is around Rs 8 lacs per year, in three years one ends up saving Rs 24 lacs.
- Cost of the property in three years may rise by Rs 30 lacs*.
- Profit in three years may be around Rs 30 lacs by investing Rs 20 lacs*.
- Average return may come out to be Rs 10 lacs per year or 50% every year. In comparison to this any other residential property may fetch only 5% to 6% every year.
- For more information call Amit Singh( Ph 8375924100)
Major saving in such investment is because of the payment plan offered, builder is not asking for 80% of payment till possession and that is where the profit is made. In case of normal construction link payment plan profits may have been same but one needs to reduce the amount paid as EMIs. In above hypothetical case it means Rs 30 lacs (profit) - Rs 24 lacs (EMI paid) which is equal to Rs 6 lacs only. Thus, we see that because of the payment plant the profit has increased from Rs 6 lacs( construction link plant) to Rs 30 lacs( 20:80 payment plan), this is increase of five times the profit. This is similar to buying one property and taking profit of five properties.
Godrej Properties has launched this scheme on following projects in Delhi NCR:-
- Godrej Golf links flats Greater Noida (sizes 1700 sq ft and 2300 sq ft approximately)
- Parkland flats
- Windsor flats
- Godrej Nest sector 150 Noida ( All flats of size 1907 sq ft and 2062 sq ft approximately)
- Godrej palm retreat sector 150 Noida ( All flats of size 1037 sq ft approximately)
- Godrej South Estate Delhi ( All flats sizes 1500 sq ft, 2200 sq ft, 2700 sq ft, 3800 sq ft)
Overall, this payment plan is a boon for investors and buyers, One has to compromise on lots of things in life, if ,one is paying heavy EMIs. This payment plan is the best way to make a property without compromising on your life style and needs. Cost of Godrej Properties is generally higher by 20-30% in comparison to adjoining properties in the area, because of the planning and quality of the builder such properties are excellent to live in as well, If one wants to buy property for investment then also properties in 20:80 payment plan (with out loan) is going to yield good profit.
For more information call Amit Singh(8375924100)
* Calculation is hypothetical and is based on current market situation, this may or may not give similar results
Buying commercial pre leased property | Factors to consider
If you are planning to buy a pre leased property then there are certain unique factors that you need to consider. These factors are related to the leasing agreement of the property and the ownership of the property. One should also consider factors that are common to all properties like location, floor visibility etc. The factors to consider are as under :-
- Factors related to leasing and ownership
- Duration of lease: Longer the duration better it is for the property in terms of stability. Most of the agreements are for 9 years, however, few are for 12 years and 15 years as well.
- Rate of increase of rent and duration: Standard agreement is increase of rent of 15% every three years, few agreements read increase of 5% rent every year. In some cases first increase is after first year, then it increases after every 3 years. Agreement with 15% increase every 3 years is good and the one with 5% increase every year is even better.
- Tenure of lease expired and balanced: If tenure of agreement is about to be finished in 2-3 years then one has a risk that the tenant may not renew the lease agreement, and in such cases tenant may vacate the property, this means loss of rent for few months to few years. One should avoid properties where rent tenure is about to be over,
- Return on Investment: Higher ROI is better, but one should see that it should be close to the ROI of similar properties in that area, else this may be a trap by seller to sell property at higher rates and after sale of property there is a possibility that the tenant may vacate it,
- Lock in period: Higher the lock in period better it is, locking of 3 to 5 years is standard. Heavy penalty on the tenant on vacating the property in lock in period gives higher safety.
- Exit clause for tenant: Exit clause is applicable mutually for both the owner and the tenant, owner should get enough time to find a new tenant in the the exit clause time frame. Warning period of 3 months or more is good enough for tenant to exit.
- Lease rent paid one time or every year: If lease rent is paid one time by the seller then one saves yearly expenditure of paying lease rent, one should calculate the lease rent to be paid to calculate the ROI on the property.
- Company transfer or individual transfer: Company transfer of property is easier to execute and saves money, company comes with both asset and liabilities, therefore, one should ensure that the property being transferred through company transfer should not have any liabilities.
- Circle rate in the area: Avoid transaction of properties below circle rate, one should trade properties at actual rates that are above circle rate. In case circle rate is higher than the trading value than authorities should be informed regarding the same and one should have a good reason for trading of properties below circle rate,
- Cost of transfer of ownership: Over head cost of transfer of ownership of the property should be calculated property and should be factored in calculating the ROI on property.
- Loan on property: All loans of bank and personal loans should be cleared by the seller, under taking from the buyer regarding the same is must.
- Any illegal or unauthorised construction in the property: All illegal construction on the property should be razed and property on ground should be as per the approved map, any penalty regarding the same should be cleared by the seller.
- Dues on the property: All dues on the property should be paid, dues are generally in terms of electricity bills, RWA bills, charges of local authority etc.
- Furnishing of property by owner or tenant: Buyer should check about the furnishing / interiors of the of the property. If owner has got the furnishing of the property then it is better, if tenant has done the furnishing of the property then it is important to know about the disposal of interiors and furniture in that case.
- Recurring expenditure like maintenance charges, power charges etc: One should know of all recurring expenditures on the property, Lower monthly expenditure and maintenance charges is better. Expenditure regarding power back up and expense on fuel should be known. At certain places electricity charges are very high on regular basis or after certain time like after 6 pm or on Saturdays and Sundays, if one works on such odd hours then he should calculate higher electricity charges as expense.
- Factors related to property
- Location of the property: Location of commercial property is very important, ground floor high visibility shops are always high on preference of buyers and such shops has very high liquidity. Price of such shops are higher and ROI is less. One should prefer to pick best location shop / property to ensure good liquidity of his capital amount, even if ROI on such property is less.
- Going rent of similar property: Before buying a pre leased property one should check the going rental rates of that area, the variation of the rent of the property should not be more than 10% of the going rates
- Price of vacant property: It is a known fact that a vacant property is sold on per sq ft rate and rented property is sold on ROI, still one should see that there should not be a very big difference between vacant and leased property. Too high. a difference is an indicator of problems ahead. Also there should not be many vacant shops / properties available in that area.
- Future development: One should check the future development plans in that area, there may be some diversion, elevated road or a toll point coming up in near vicinity, this may result in heavy depreciation of the property. Such properties should be avoided.
- Check who all vacated the property recently and why: Do some deliberation to check about the tenants who vacated the property or similar property, find out the reason for vacation. Also take inputs from the nearby tenants and property owners, such inputs about the properties may help save future problems.
More deliberation is required for evaluation of pre leased property, mostly, because one buys a property at higher rates in comparison to a vacant property. One buys a pre leased property because of steady rental income even if it means paying higher cost, however, if tenant vacates the property then entire purpose of paying higher cost is defeated.
Godrej Roseberry | Godrej sector 43 Noida Ph 8375924100
Godrej Roseberry is a new project that is coming up at sector 43 Noida. The project is very close to Noida Golf Course. The project is at excellent location as it is well connected to Dadri road at one end and to Noida expressway at one end. Dadri road connects the project to central Noida that goes to Botanical Garden Metro station. Noida expressway provides connectivity to Delhi and Greater Noida. The main USP of the project is it's location as going rates of property in this area is around Rs 10,000/- per sq ft. There are projects like Pearl Gateway and Assotech Celestial towers in this area, demand of flats in this area is good and one can expect that the price of Godrej project on possession should be around Rs 14000/- per sq ft.
Godrej Roseberry is a good project to invest in as first phase of the project is going to be sold out soon. Buzz in the market is that almost 100 plus flats is likely to be sold out in initial days.
Godrej sector 43 Noida is a project that is coming up at sector 43 Noida, It is a luxury project that is in central Noida and is very close to the Botanical Garden metro station. It is in the heart of Noida and is very well connected to Delhi and Greater Noida. It is on two metro lines that is, blue line and magenta line. Godrej project will have total sale able are in the project will be 2.2 million sq ft. Project will be made in association with Shipra Group as the land belongs to Shipra Group.
Features of the project are as under:-
- Project is located in green open area adjoining to Noida Golf course
- Location of the project is at sector 43 Noida, best location of Noida
- This area is about 1km away form botanical garden metro station. That provides connectivity to Blue line and Magenta line as well.
- This project is open from three sides, there is green belt on two sides of the project. Approach to the project is decent and it will improve in coming times.
- Work on the Road in front of the project is going on and the project sales office is also under construction.
- The road adjoining the project goes to Dadri road that conencts sector 18 with NPEZ and goes beyond to Dadri
- This road meets the Dadri road at the rear of Noida golf course
- On the left the road goes to village Shahpur and Challera. This is a well established sector of Noida
- At the back side of the project, here road is under construction, this road will be completed in approximately three months
- Village Shahpur is at the backside of the project and behind that is project Prateek Stylehome and Amarpali Sapphire
- Towards right is village challera and sector 44, 45 Noida
- The project is likely to be launched soon that is in the early months of year 2020
- Location of the project is excellent but is enveloped with villages, approach to the project as of now is poor but with the upcoming roads the approach will improve.
- with the improvement in road connectivity this project will go high on demand.
- This may be the firs and last project big brand project in this area as land in central Noida is exhausted
For more information contact Amit at phone number 8375924100
How outbreak of corona virus will affect Indian Real Estate
Indian real estate is going through a rough patch for last 8 years and still there is no ray of hope. Real estate industry has suffered massively because of demonetisation, GST implementation and riots. Indians do not want to buy property because the cost of the property has stagnated and interest rates of loan is high.
No marks for guessing that the strike of corona virus in India will be a big minus for the economy numbers . It will affect the real estate industry as well, however, real estate will be one of the last segment to be affected by the pandemic. Share market will be most volatile, real estate and gold will be most stable. Spreading of Corona virus is ominous as it takes few infected people to start the epidemic. In such case we have to understand that "precaution is better than cure", government is asking us to take all precautions and we all should support the system.
Selling under construction properties will be difficult as the number of site visits will decrease. Moreover, one has to go to a number of places which are crowded like, banks, authorities, courts etc. If outbreak of corona virus takes place then people will avoid going out of their homes, they will avoid all public places especially the crowded ones, in such case selling property will not be easy. However, the positive is that serious buyer may not visit many sites, he would like to take more information online and on phone and is likely to finalise a property in fewer visits.
Pre leased and pre rented commercial properties may suffer in case the pandemic goes on for more than six months, many of the commercial ventures will stall. Many tenants will either vacate the spaces or will stop making payments. Rentals in residential segment will also suffer as the sources of income for many will dry out. Reverse migration may start where people will start moving from cities to small town and villages, mainly because cost of living in smaller cities is low and it is comparatively safe from virus spread. Rotation of money in the society will slowdown and fiscal deficit will increase.
In real estate one can work from home. One can exercise following options:-
- training of team through online lectures
- online listings by owners on websites and portals
- writing informative blogs and content
- talking to existing clients and taking feedbacks,
- improving work flow processes
- sales people can give case studies and lessons learnt from handling clients
- people at senior level can think of writing a book etc.
Real estate comes in the category of essentials ( food, clothes, house ), therefore, real estate will be on a slow decline and will recover fast. In difficult times it is important to support each other and keep the spirits of your team high, keep realistic targets and do not fire people for not meeting targets at work.
Pre leased property for sale | Definition ROI and rates
When we buy property, we find that the property is either sold in sq ft, sq yds or sq mtr. Like a flat is sold at Rs 5000/- per sq ft, plot is sold at Rs 80,000/- per sq yds or per sq mtr. In pre leased properties, also called pre rented properties ,the method of calculation of the cost of the property is different.
What is a pre leased/ Pre rented property ?. It is a property that is already on rent and the owner gets annual profit (rent / profit sharing) from this property, this annual profit is known as return on investment (ROI). Cost of a pre leased property can be calculated in three ways :-
- ROI in terms of rent - Annual rent that a person gets from that property
- ROI in terms of profit sharing - Tenant uses the property and instead of rent he gives a share of profit he makes out of the business that he doing from that property
- ROI in terms of rent and profit sharing which ever is higher - Minimum rent is assured in this case, however, if profit of the business is higher that the rent then profit is given instead of rent.
- If annual rent of property is Rs 12 lacs ( monthly rent of Rs 1 lacs ) and seller wants to sell the property at ROI of 5% then the cost of the property will be
- = Rs 12 lacs / 5% (annual rent / ROI for sale)
- = Rs 12 lacs / (5/100) (to convert % value to number divide denominator by 100)
- = Rs 12 lacs / .05 (value of denominator after conversion from % value to number)
- = Rs 240 lacs (value after dividing numerator with denominator)
- = Rs 2.4 crores (value in crores)
- If annual rent of property is Rs 12 lacs ( monthly rent of Rs 1 lacs ) and seller wants to sell the property at ROI of 7% then the cost of the property will be
- = Rs 12 lacs / 7%
- = Rs 12 lacs / (7/100)
- = Rs 12 lacs / .07
- = Rs 171.42 lacs
- = Rs 1.714 crores
What are the factors that decides the ROI for sale of property. The ROI for sale is decided on the going rates of the property in the area, normally the yardstick in Delhi-NCR is as under :-
- Shop / show room leased to local brand - 8%
- Shop / leased to show room to good brand - 6%
- Shop leased to private bank - 5.25%
- Shop leased to nationalised bank - 4.75%
So, ROI for sale mainly depends on stability of income from the property and likely efforts that is required to get the rent consistently from the property. Nationalised banks are most stable, they do not vacate the premises for many years and they do not default in making monthly rental payments. Thus, the ROI for sale of nationalised banks is low, this means that buying such property is costlier.
When sale is made in terms of profit sharing then generally it is on the percentage of total sale that the tenant makes. Like a pizza shop may take a shop at 9% profit sharing on total sale. this means that the total sale ( not just profit) of the pizza shop is Rs 10 lacs in one month then they will pay 9% of Rs 10 Lacs, which is Rs 90,000/-. In this case the annual ROI of the property becomes Rs 90,000 X 12, which is Rs 10.8 lacs and if seller want to sell this property at 6% ROI then the cost of the property becomes :-
- = Rs 10.8 lacs / 6%
- = Rs 10.8 lacs / .06
- = Rs 180 lacs
- = Rs 1.8 crores
Third condition is rent ( say Rs 55,000/- per month ) or profit sharing ( say 9% per month ) which ever is higher. We take that profit is consistently coming as Rs 10 lac per month, which as per previous calculation makes monthly return as Rs 90,000/-. In this case we consider the higher value of two ( Rs 90,000 > Rs 55.000), thus we take profit sharing value of Rs 90.000/-, annual return becomes Rs 10.8 lacs and if seller want to sell this property at 6% ROI then the cost of the property becomes :-
- = Rs 10.8 lacs / 6%
- = Rs 10.8 lacs / .06
- = Rs 180 lacs
- = Rs 1.8 crores
While buying a pre leased property one should also consider the cost of vacant shop / property and the buyer should see that the difference in the cost of vacant shop and pre leased shop of same type should not be too much (not more than 20% for a good brand). In case the difference is too high then one should consider buying a vacant property and pay local brokers to get a good brand on that shop.
Another advantage of pre leased property is that there is always a demand of good pre leased properties in the market and selling such property is not as difficult as vacant property. In commercial property rent normally increases 15% every 3 years, therefore, with increase in rent the market value of the property also increases in the same proportion. For example :-
- When the annual rent of a property is Rs 12 lac and ROI for sale is 6%, then the cost of the property is Rs 2 crores.
- Now after 3 years the rent increases 15% and it becomes Rs 13.8 lacs and because of good demand the ROI for sale in now 5% then the cost of the property becomes Rs 276 crores. Thus the profit to the buyer is the rent that he was getting and the plus Rs 76 lacs as property price escalation
Overall, buying a pre leased property is a very good option, as the risk factor on such shops is very less and the rent of such properties are three to four times higher than the residential properties of same cost.
Buying a House ? Check how safe it is from riots, vandalism and theft
While buying a house one has to evaluate various aspects of a property like location, builder, layouts etc. In residential segments few buyers are in favour of flats, few are in favour of builder floors and few want independent villas. Each property has an invisible security tag attached with it, one should read this tag carefully before buying any property. For example security factor of various residential properties are as under: -
- Society Flats - High security
- Builder Floors - Low security
- Villas / Independent house - Low security
- Single point entry exit
- Security cameras
- Security guards at main gate
- Security guard at tower
- Single floor entry to visitors
- High boundary walls etc
Any housing society should have adequate lights, should have guards for perimeter patrolling, boundary walls should have wires and grills, should have CCTV cameras at all important places, dead zones and in all corridors. Doors and latches should be strong and it should be further have iron grill door at main entrance (normally put by the owner of the house).
Also check the layout of the flats, see the difference between the balconies of two flats and evaluate the possibility of someone breaking in the house from the adjoining balconies, this aspect is more relevant in case the adjacent house is empty. Living in flats is a community living, one should keep good relations with the neighbours and should encourage community watch. While going out one should inform their neighbours and should requires to keep a watch on the house. Always do police verification of tenants and servants. Never hesitate to check an unknown suspicious person. All person in the society should have a valid pass for the individual and for the items that they carry in or out of the society.
Checking security guards is a job that should be instilled on all society members don't leave it to the supervisor alone. Never loose temper on guards who checks you or your esteemed guests on the gate, encourage guards who are proactive, follow the rules made by the society even if it means a bit of inconvenience for your family and friends. Builder / RWA should do security audit from time to time and give update of the same to the society members.
Make extra efforts to check the demography of the society and make a note of different segments of people staying in the vicinity. Avoid buying a house in.place that is volatile to rumours and is prone to riots and vandalism. Talking to local police or local people may help in getting such vital information.
When it comes to buying a house one should keep security as priority one specially in the times where riots and vandalism is rampant. Men are mostly out of the house on work, women and kids are at home alone for most of the time, therefore, one should always be alert to ensure that the security of your residence is very high.
Adani Properties gets prime residential land in Delhi
Adani Group has won the bid for the property of Aditya Estate pvt ltd property at Mandi House, Delhi. Initially nine investors had shown interest in the property, however, only two bidders submitted the bid for the property that was put on auction by the NCLT process. The two bidders were Adani Properties and Veena Investments.
The committee of creditors (CoC) rejected the bid of Veena Investments of Rs 225 crores as it was conditional and was non compliant. Bid of Adani Properties was of Rs 265 crores and it was accepted, Adani Properties is also required to pay Rs 135 crores towards statutory charges, thus the total cost for the Adani Properties becomes Rs 400 crores.
Aditya Estate holds 3.4 acres of land near Mandi House Delhi. Aditya Estate was in debt of around $63 million and NCLT plea was accepted against Aditya Estate on 25 Feb 2019. Aditya Estate reps had challenged the insolvency proceedings, however, the same was rejected in September 2019.
Property in Noida buying and selling | Things you should know
Noida is one of the most booming real estate market of North India, it is a city which is spread over 20316 hectare of land that supports major commercial, Industrial and residential zones. Population of Noida is near 6.5 lakh and is constantly growing. It is having a good connectivity to Delhi and has excellent infrastructure. Per capita income of Noida is one of the highest in the country and it provides many opportunities for growth. Number of people migrate from various cities to Noida looking for a job. Noida alone attributes to 25% revenue of Uttar Pradesh, one of the biggest state of India. If you are planning to buy a property in Noida then here are the 10 things that you should know.
- Searching property in Noida: One can look for property in Noida through offline and online methods. For offline one can contact the brokers who are working in specific sectors. For online search one can use google search or websites like 99acres, magicbricks, property.sale etc
- Lease Hold and free hold properties: Most of the property in Noida is on a lease hold for 99 years. Noida authority gives a property to builder on a 99.year lease, builder further gives it on a sub lease to the buyer of flat for 99 years. For the sale reason one time lease rent is charged by the authority. If you are buying a flat in Noida then you have to pay one time lease rent to the builder.
- Registry charges on the property: Registry charges in Noida is standard 5%,however, it is proposed by the Noida authority that the registry charges be increased from 5% to 6%, the same will be implemented in the first half of year 2020.
- Extra charges on the property: Apart from lease rent there are few more charges taken by the builder, few of the charges are Interest free maintenance charges, fire fighting charges, power back up charges, dual meter installation charges, sinking fund charges, preferential location charges etc. GST on the projects keeps changing, on most of the residential projects GST is 5% and on commercial projects it is 12%. In many cases builders give rebates in extra charges and GST as well. One should ask for rebate on these charges while negotiation to buy a flat.
- Transfer of resale property: Transfer of registered property in Noida is in two ways, one is builder transfer and the other is transfer of registered flat. Builder transfer is a transfer of unregistered flat by the builder, these type of flats are mostly under construction flats, in such cases builder takes transfer charges which may vary from builder to builder. While purchasing a property one should take at least one should negotiate free transfer from the builder. The other type of transfer is transfer of registered flats, such property attracts TM charges which vary from Rs 600 to Rs 1650 per sq mtr, these charges are taken by Noida authority.
- Average rate of properties: Average price of property in Noida is Rs 5500 per sq ft for the residential properties and Rs 32000/- per sq ft for the commercial ground floor shops as on Feb 2020. This price will vary form builders to builders, luxury properties go up to Rs 11000/- per sq ft for luxury flats.
- Expected rentals: Expected rentals from the residential property is 2% per annum of the cost of the property and 6% for the commercial shop. Most of the commercial society shops will fetch rental of Rs 150/- per sq ft per month. One can get a 2 BHK flat on rent for Rs 20000/- per month and 3 BHK flat on rent for Rs 25,000/- per month.
- Best locations of Noida: Best locations of Noida for residential properties are Noida expressway, central Noida from sector 74 to sector 79, sector 43 Noida and sector 150 of Noida. For open living one should consider Noida expressway and sector 150 Noida. One may consider metro rail connectivity before buying a property as rentals and resale of properties near Metro rail lines is better.
- Known builders of Noida: Known builders of Noida in residential sector are ATS, Ace, Mahagun, Gaur, DASNAC, Prateek, Ajnara, Supertech, JM, Omaxe, Jaypee, civitech etc. In commercial there are builders like Ace,Bhutani, Spectrum, Jaypee, MMR etc.
- Future of property in Noida: Future of Property in Noida is very bright as jewel airport is coming up near Noida. Noida is very close to south Delhi and connectivity of Noida to Delhi is very good. Infrastructure development with in the city is excellent. Metro line connectivity of the city is one of the best in the country. Population of Noida is growing by the rate of 12% every year, this is mainly due to migration of people from other cities for jobs. Revenue generation from the city is high and people have good buying capacity. Number of jobs are likely to be created in this are because of Jewar Airport and DMRC corridor. Thus, property prices of the city is likely to go up in coming years.
Link Road on Hindon river to be half ready in one month
Link Road on HIndon river that will connect the bridge on Hindon River to FNG will be half ready in 20 days. The Link Road will connect the bridge that comes from Greater Noida sector 1 to Noiida near sector 118 and sector 79. The half completion of the Link Road will ease out the traffic between Greater Noida west and Noida. Commuters coming from Greater Noida west will be able to come to FNG on Noida side through this Link Road. Using this Link Road the commuters will have straight access towards sector 79 Noida and for sector 118 Noida they will have to take a U-Turn from around 100 meters.
Commuters from Noida to Greater Noida west will have to use existing connectivity as the link on this side will take another two months to complete. This link is pending as few trees and poles on this link is required to be shifted. In case the permission to shift the trees and poles is delayed then the completion of the link will be further delayed.
Even completion of half of the link will bring respite to the commuters as commuters of both side i.e Noida to Greater Noida west and vice versa are sharing narrow two lane road, this narrow road is also have big pot holes at few places. Another approach to greater noida is a bridge between Kishan Chowk and sector 120 Noida, this link is already overcrowded as commuters from the twin city chokes this road during peak hours. With the number of houses being made in Greater Noida west in few years there will be a requirement of one more bridge on Hindon river, therefore, it is imperative to plan and construct another bridge before the traffic on both the bridges reaches to choking point at peak traffic hours.
What Indian real estate can expect from the coming budget 2020
India's GDP growth rate stuttered and sunk to a six-year low of 4.5 percent in Q2 FY20. This budget announcement will be crucial for the whole India economy . What can the real estate expect from this budget ? As was predicted that by 2025 it will have a 13 to 14% participation in GDP ,it needs some urgent support . The coming budget needs to provide a much needed stimulus to the real state market. Coming to the main points where a real push is required can be summed up are :
Investment in infrastructure. The momentum of infrastructure development should continue so that growth is decentralised and migration to urban areas remains under control.
Assistance in the challenging liquidity being faced .Liquidity will enhance sentiment in the market with a steady supply of ready to move-in homes.
Resolution of the NBFC crisis.
Reduce overhead cost and taxes Reduction in stamp duty to at least an extent of 50 per cent can also help raise demand.
Single window clearance can aid in quick approvals and execution of the project.
Quick execution of alternate investment funding 25000 cr which has already been allotted.
Revision of input tax credit in housing sector. After the reduction in GST rates, the government had withdrawn the Input Tax Credit. Its revival can provide relief to the developer and housing can be made available at a lower cost.
Deduction of personal taxation to encourage homebuyers. In order to push the fence-sitters to buy homes, along with the existing subsidies on affordable housing,
Increase in the 2 lac tax rebate on home loan interest rate. This could result in higher demand for housing, especially in the affordable and mid-segment categories. Interest rates on home loans needs to be reduced.
Abolish long term capital gains . This if done will fire up the investors once again to enter the market
Giving real estate an Industry status .This will help raise funds . unfavourable development norms owing to which developers are hesitant to enter into this segment.
Biodiversity park to open soon at sector 91 Noida
Biodiversity park will soon open up at sector 91 Noida, the location of the park is next to sector 137 metro station. The park was scheduled to be opened in the month of sep 2019, however, the work got delayed and it is now scheduled to open in the early months of 2020. The cost of construction of the park is around 236 crores and the park will have following facilities:-
- Celestial Garden
- Picnic Garden
- Cycle track
- Play area
- Fruit trees
- Medicinal and herbal plants
- Pergolas
- Multipurpose hall
- Amphitheatre etc
Gulshan Dynasty Noida's new luxury icon
For information contact Amit Singh (8375924100)
In Noida real estate there is a huge demand of flats above 4500 sq ft, however, supply of flats of this size is limited. Moreover, clients of luxury segments want exclusivity which is provided by the homogeneity of large size flats, in other words, people do not want mix of small size flats with and big ones. In view of this Gulshan Dynasty has only two sizes i.e 4700 sq ft and 8800 sq ft flats. There will be 198 flats of size 4700 sq ft and there will be only six flats of size 8800 sq ft.
There are projects that are of ultra luxury segments but they do not have open area. Gulshan Dynasty will have 4.4 acres of open area in front of the towers followed by a green belt and open river bed of Hindon. Such green and open frontage mixed with grand luxury will provide a blend that is seldom seen in the real estate industry. There are projects that have open view of golf courses but the residents need to take membership of golf course to use the premise. Moreover, the rules of golf makes it difficult to venture on such greens, specially for ladies and children.
Gulshan Dynasty will have 4.4 acres of park that will be exclusive to the residents.
Gulshan Dynasty will have only 204 flats in 5.8 acres. It will be having 25000 sq ft of club house. The entrance lobby will be grand two stories high. The specification of the flats is of five star quality. After going through the complete details of the project we are convinced to say that "there is no parallel to this project, this project takes the top rank in luxury segment in Noida, in concept and planning this project is the closest thing to perfection".
For information contact Amit Singh (8375924100)
Why real estate investors are hungry for food courts
contact Amit 8375924100
- Shops take time to get a tenant
- Maintenance of shop is costly
- Shops may stay vacant for a very long time
- Resale of shops take time in comparison of shops in food court.
- Getting a good tenant for a shop is difficult and time consuming
- There are four to six floors of shops in a mall but there is only one floor of food court
- People prefer food courts over restaurants
- Noida - Greater Noida expressway
- Greater Noida west
- Central Noida
- North/central Delhi
- Food court assured rental - Rs 80 psf + 50% of profit sharing
- Assured return on shop on same floor - Rs 40 psf + profit sharing
- Residential apartment rentals - Rs 15 psf
Investment in food court is a viable, there may be few opening for investment in food court which may not be available in open market. For such investment please contact at number shown below.
contact Amit 8375924100
Noida real estate positive because of these six factors
By Gargi (8375924100)
- Prateek Ediffice - from Rs 6700 pst to Rs 8700 psf
- Mahagun Mezzaria - from Rs 6500 psf to Rs 8000 psf
- Cleo County - form Rs 5700 psf to Rs 7500 psf
- Approval of Jewar airpot
- Extension of metro line to Greater Noida west
- Likelihood of land becoming freehold
- Revival of Jaypee
- Funding by central government for completion of unfinished flats
- Strong implementation of RERA
For more information call Gargi (8375924100)
Does food court gives more profit and better return on investment
For enquiries call Amit (8375924100)
When it comes to food court, the demand is unending because mall has many shops and very few food court counters. Food court is a hang out zone for people of all age and status, it is convenient, fast and gives options of all kind of food. It is estimated that in North India food court occupies 10% of the area of any mall and 15% of the revenue of any mall comes from then food court. This means that the revenue of food court is 50% higher of commercial shops.
Food court works on revenue sharing model and it offers a sharing of 25% to 28% of the total revenue. At some place there can be a fixed rent as well. Few malls keep the right of leasing and they provide different models like fixed rent of a certain amount plus partial sharing of revenue etc.
On observing many malls in north India it is realized that almost all food courts in all the malls are occupied, the malls that are almost on the verge of closure also have a good foot fall in their food courts. One of the main reason for this is the extreme weather conditions of north India. More and more people go to malls because they want to spend time in pleasant temperature controlled environment, in summers the temperature is touching 49 degree Celsius and in winters it dips to 8 degree Celsius, under such situation mall is a much better investment than street shops.
Food courts are far cleaner and hygienic than street shops, even quality control is ensured at all levels. Almost 35% people who spend more than 2 hours in a mall end up buying something from the food court. People visiting malls with kids are more likely to go to food court, it is also a hang out place for college students and young professionals. People going to watch movies prefer to eat something before or after the movie as food items inside auditoriums are limited and are very costly.
Overall, Investment in food court makes more sense as popularity of food courts is increasing day by day. Food industry rarely goes into recession as it is a basic necessity. Online apps like zomato, swiggy etc also add on to the business of food industry. However, one need to be very proactive in acquiring a food court unit as it is hardly available in open market, most of the food courts are procured by real estate investors and associates, it seldom comes to a common man for sale.
Food Court for sale in Noida
| Property Name | Market Price | Distress Price | Book Now |
|---|---|---|---|
| Spectrum Metro Food Court ph 8375924100 | ₹ 74.00 Lakhs | ₹ 63.00 Lakhs | |
| Food court spectrum metro mall 2 Noida | ph 8375924100 | ₹ 1.20 Crore | ₹ 1.05 Crore | |
| Food court ithum 73 Noida | for sale Ph 8375924100 | ₹ 84.00 Lakhs | ₹ 70.00 Lakhs | |
| Food court for sale in Spectrum metro 2 ph 8375924100 | ₹ 96.00 Lakhs | ₹ 83.00 Lakhs | |
| Food court Spectrum Metro Mall Noida | ₹ 95.00 Lakhs | ₹ 85.00 Lakhs | |
| Food court for sale in Gulshan 129 Mall Noida | ₹ 87.00 Lakhs | ₹ 77.00 Lakhs |
Food court in Greater Noida for sale
| Property Name | Market Price | Distress Price | Book Now |
|---|---|---|---|
| Food court for sale at largest Multiplex cinema | ₹ 55.00 Lakhs | ₹ 42.00 Lakhs | |
| Food court in Golden I Greater Noida west | ₹ 4.00 Crore | ₹ 4.00 Crore | |
| Food court for sale in Gaur City | ₹ 53.00 Lakhs | ₹ 45.00 Lakhs | |
| Food court for sale in Golden i Greater Noida west | ₹ 95.00 Lakhs | ₹ 84.00 Lakhs | |
| Rented Food court Golden i Greater Noida west | ₹ 56.00 Lakhs | ₹ 50.00 Lakhs | |
| Food court Apex Park Square Mall | ₹ 77.00 Lakhs | ₹ 69.00 Lakhs | |
| Food court Mahagun Marina Walk mall | ₹ 63.00 Lakhs | ₹ 56.00 Lakhs | |
| Food court for sale in Gaur City Center | ₹ 65.00 Lakhs | ₹ 58.00 Lakhs | |
| Food court for sale in Gaur world Smartstreet Mall | ₹ 63.00 Lakhs | ₹ 56.00 Lakhs | |
| Food court for sale in Gaur world smart street mall | ₹ 45.00 Lakhs | ₹ 40.00 Lakhs |
PS:- Few units of food court available on Noida - Greater Noida expressway at prime location for sale. Available for few days only. Call For enquiries : Amit (8375924100)
Flughafen Zurich AG to build and operate Jewar Airport
Flughafen Zurich AG or in short Zurich Airports will make and operate the second international airport of Delhi, the airport is coming up at Jewar near Greater Noida. Zurich Airports will operate the airport for 40 years including 4 years period of construction of phase one of the airport. As per the terms, from the 6th year Zurich Airports will start giving revenue to the Authority.
The bid was to go to the highest bidder in terms of revenue sharing, Zurich Airports bid was of Rs 400.97 per passenger, GMR group offered Rs 351, Adani group offered Rs 360 and Ancorage I&I offered Rs 205 per passenger. The fees will start after six years of the commissioning of the airport.
The first phase of the airport will take around four years to complete, it will be capable of handling above 10 million passengers and the cost of the construction of the airport will be around Rs 4700 crores.
Zuric Airports is a renowned international company, it is now expected that the work of the airport will commence soon and will be completed in time. Construction of airport will bring development in Noida and Greater Noida. Airport is likely to attract lots of industries in this area and real estate prices in Noida and Greater Noida will shoot up in coming years.
Construction ban puts Delhi-NCR builders in a fix
By Amit SIngh ( phone 8375924100)
- Delay in completion of project:- The ban on construction will add on to the delay in completion of the projects. Most of the builders are already behind schedule and the buyers are suffering. Dream of buyers to shift to their own home will be further delayed.
- RERA penalty:- The delay in completion of projects brings heavy penalty on builders, under present scenario delay in completion of project is ominous. Many builders will be asked to pay heavy penalties as per RERA norms.
- Interest on loans:- Many builders and buyers have taken loan on project or for the property. Builders will find it difficult to repay loans early and the buyers will be paying EMIs and rent for longer period of time.
- Holding charges:- Construction material and equipment are lying unused. Builders are required to pay for the heavy equipment that they can neither mover or return back. This includes on site mixers, cranes etc.
- Paying wages to staff without work:- Few builders have asked their employees to go on leave, few are forced to downsize. Many builders are still paying the staff even though there is no work for the sfaff.
- Slow down in flow of sales:- Continuous flow of sale is very important for any builder, sale strategies are made in advance and each event is meticulously panned. Break in flow of sales is avoided as once the sale comes to a halt it takes a long time to come to the same momentum again.
- Apprehensions of existing buyers:- Buyers of real estate are already suffering because of issues like delay in possession, poor construction quality, bankruptcy etc. Buyers are loosing faith in the real estate system of India. Delay in construction has added on to the apprehensions of the buyers as they feel that the project timelines will not be met.
Shops in sector 150 Noida is as good as gold
By:- Amit Singh, Phone:-8375924100 (Call for best shops in sector 150 Noida and other parts of Noida)
- Godrej (multiple projects)
- Tata
- ATS (multiple projects)
- Ace (multiple projects)
- Mahagun
- Prateek
- HomeKraft
- Alpha
- GBP (multiple projects)
- Samridhi
- BCC .. etc
Commercial project of ACE is by the name of "Medley Avenue" and the project was sold out in a very short time. In this project the builder did not sell the ground floor shops, therefore, all investors/buyers who wanted a ground floor shop had to go empty handed. Many applicants of first and second floors of the project were also disappointed as number of applications for allotment of these shops were far more than the available shops.
In this scenario we infer that there is a huge demand of society / high street shops in sector 150 Noida, but supply of shops is not there. Sector 150 Noida is likely to be a repeat of central Noida and Noida extension where the cost of many shops has gone up three times in last few years, many people who purchased shops in Noida extension for Rs 11,000/- per sq ft saw the cost go to Rs 35,000/- per sq ft in few years.
Shops in sector 150 Noida is the next big thing in commercial investment in Delhi-NCR. It is going to be a very good investment for people who are looking for a good rental income and for those who are looking for a good profit through escalation of price of properties.
We have best shops for sale in sector 150 Noida and other parts of Noida. For more information contact us. If possible provide us with following details as well;-
- Name
- Phone number
- Budget to buy shop
- Preference of type of shop (ATM, food court, virtual etc)
- Preference of floor
(Unnecessary phone calls will not be made by us)
One can provide the information at phone number 8375924100 (on call/whattsapp) or though a comment/ form in the website or through a link as shown belowContact :- Amit Singh, Phone:- 8375924100
Do investors still see real estate as depreciating asset
Investment made by an individual will either appreciate or depreciate. Any asset that improves quality of life will generally depreciate like cars, mobile phones, televisions etc. Any asset that degrades quality of life will generally appreciate, like gold, equity, property. A good market should support an appreciating asset by giving returns that is more than the investment plus average inflation.
Worst investment is the one that degrades your quality of life and is a depreciating asset, like a house on EMI that keeps depreciating. Many investors see Indian real estate as depreciating asset and are choosing to stay away from the real estate market. The reason for such a situation is mismanaged real estate sector of India, the main reasons are as under:-
- Delay in possession of properties
- Poor quality of construction
- Builders going to NCLT for bankruptcy
- Long legal course for getting justice
There has been number of steps that has been taken by the government to improve the situation, however, such steps are not adequate to uplift the market. One of the most important step is implementation of RERA, still buyers and investors are staying away from under construction property. Main reason for such apathy is unplugged holes in RERA, for example, many builders who face heavy penalty under RERA are declaring their company as bankrupt. Under bankruptcy clause the property buyers do not get any relief as the process takes a long time and they get a fraction of money that they invest.
Flat vs villa - Things that you should know
There are advantages and disadvantages of owning a flat and owning a independent house/villa. Many first time buyers start with a flat, mostly 2BHK and later on they start investing in other type of properties. Flats are easier to book and use in comparison to other form of properties. Other advantages of buying a flat are as under:-
- Flats are far cheaper than villas and independent houses, so it comes under affordability of far many people
- Better location, due to availability and cost one can buy a flat at far better location
- Flats are very practical option for people who are professionals and have very little time to manage a property
- In flat one is not responsible for maintenance of common areas like:-
- Fence/boundary
- Lifts
- Lawns and play ground etc
- Safety and security in a flat is much higher than villas and independent houses
- Staying in a flat means community living with many other families to interact with, this is very good for children
- Flats have facilities like Club, Gym, swimming pool with in the society, for independent houses this is mostly not possible
- Maintenance staff is paid and shared by all society members, so maintenance charges are much lesser
- Payment for service staff like maid, plumber, electrician is far lesser
- Electricity, heating, Air conditioning is cheaper
On the other hand there are few negatives of buying a flat as well, the same are as under:-
- Flats have a limited life
- Flats have far lesser privacy
- Price escalation of flats will be slower
- More space of independent house can be utilized for luxury living and for expansion
- Independent houses can be expanded as family grows
Market value of a property vs Market price
When trading a property one has to estimate market value of a property. Here we will discuss that "what is a market value and how is it different from market price". Market value is the most probable price of a property in:-
- Competitive and open market with
- Fair deal where buyer and seller both act prudently
- where price is not influenced by external stimulus/factors.
Market price may be higher or lower to the market value. In many cases market price is taken as the last deal that was done in a similar property in same area. If the market value of the property is Rs 80 lacs and the last trade of the property was for Rs 83 lacs then the market price of the property is Rs 83 lacs.
If number of tradings of the property happens at a similar market price then the market price of the property may become market value of the property. In many countries government or administrative bodies determine and update the market value of the properties.
Wave city center is good buy as OC for few towers recieved
By G Singh , Phone :- 8375924100
Recently Wave City center recieved OC for their High street condominiums (HSCs) and tower C, E and F of residential project Amore. The occupancy certificate was eagerly awaited by Wave Group, more so because they wanted to give possession to the owners before Diwali. Moreover, to celebrate the Navratras Wave Group has also slashed the prices of their residential project Amore. The specification and prices for the project is now as under:-
- For tower A,B and D -
- 1609 sq ft (2BHK plus study)
- 2135 sq ft (#BHK plus study)
- Cost Rs 9100/- per st ft all inclusive
- Tower height G+28
- Payment plan is 10% now, 20% after one month and balance 70% on possession.
- For tower C, E and F -
- 2160 sq ft (3BHK plus study)
- 3117 sq ft (4BHK plus servant room)
- Cost Rs 10,000/- per sq ft
- Tower height G+15
- Payment terms - Down payment
- Iphone Eleven to the customer with every booking
- Location is best with very less congestion and good connectivity
- Safety and secure area
- Number of metro stations around the project
- Very close to commercial hub of Noida - sector 18, sector 50
- Very close to Industrial and corporate center of Noida.
By G Singh , Phone :- 8375924100
Corner walk commercial shops due for completion in record time
By GS Bhati ph: 8375924100
The project by the name of "Corner walk sector 143 Noida" is due for completion in few months. The project started in the month of April 2019 and it was expected that the project will take at least two years for completion. However, the project is due for completion in just eight months i.e by November 2019.
"Corner walk in sector 143 Noida" is a commercial project that is in the hub of commercial and IT zone of Noida. Apart form number of societies there are many working office spaces all around. The project is at a right distance from Noida expressway and is right on the corner of FNG expressway and major sector road. With FNG due for completion in near future this is one of the best location to invest in commercial property in Noida.
Almost ready shops of "Corner walk" project will see good price escalation around completion. There are number of known brands that have already tied up with the project. The team working on the project is ensuring that this becomes one of the best hang out joint of Noida. Thus, one can consider buying a shop in this project for good rental income and short term investments, as per current scheme one is required to pay only 30% of the amount in one month, balance is to be paid on completion of the project.
Shops for sale - smaller shop is a new up trend
Why small shops and kiosks are the hot cake of real estate market - Call 8375924100
As the market trend is shifting from conventional shopping to online shopping the trend of investment in commercial real estate market is also changing. These days most of the people carry the world in their pocket, that is, on their smart phones. From booking a flight ticket, clothing, grocery, car rides, food etc every thing is available on a smart phone.
With facility of online shopping available on a click of a button, mindset of consumer is changing. Now many people do not prefer to move out of their home, as going out means:-
- Expenditure on fuel
- Traffic problems
- Parking problem at destination
- Parking problem back at home
Online shopping has affected lots of industries, but the biggest change has come is food industry. Because of high competition between Swiggy, Zomato and Uber the discount on home delivery of food is very high. For this reasons real estate buyers are now asking for smaller size shop with limited/zero sitting, as most of the business has now shifted online. A client who was looking for 3500 sq ft shop has settled for 6 shops of 500 sq ft each at different locations, he says
By doing this I am able to reach more people and my expenditure is same. Six smaller shops/kiosks will give better business than one fine dine
Smaller eating joints with limited sitting space is more in trend now, owners of such shops prefer to save on investment/rental value to give better discount to online customers. With major shift in consumer behavior business strategy has to change. Buying smaller shops is making far more sense now than ever before.
Few good options available are:
Commercial property sale boom at sector 150 Noida
Gargi phone 8375924100
- Ratio of commercial land in respect to other types of land is very less - around 3.72%
- Floor to area ratio (FAR) of residential projects is very high - around 3.5 to 4
- Infrastructure development in the area is good
- Availability of public transport and metro rail
It won't be prudent now to buy shops in these areas as the cost of the shops is very high. However, if one wants to invest with a vision of 3-4 years then the best location for investment will be round sector 150 Noida. Sector 150 Noida is a repeat of story of sectors of Noida and greater noida west. There are number of projects and high rise buildings that are coming up in this area, however, number of shops are not many. This is one of the best place for commercial property investment.
Presently the rate of ground floor shop in this area is between Rs 20.000 to Rs 25000 per sq ft, this rate is likely to go up to Rs 35000 per sq ft in next 3-5 years. Recently launched project of Ace group by the name of "Ace Medlay Avenue" saw a very good response. Ace did not open ground floor for sale, still most of the shops were sold out in a very short time. There are going to be few more opportunities in commercial property segment that will come up in sector 150 Noida, however, these opportunities will be very short lived.
There are few good opportunities that exist in sector 150 Noida and in other locations. With so many houses coming up in this area one of the best investment is restaurant in sector 150 in Ace Medlay Avenue porject. For more information one can contact Gargi 8375924100
Is transfer charges responsible for recession in Noida real estate market
Almost all properties under Noida authority is on lease hold to the builder, builder further sub lease the property to the buyers. Buyer registers the property with Noida authority by paying the registration fees. In case the buyer wants to sell the property he makes a sub lease transfer request to Noida Authority in the name of new buyer.
For this transfer to happen Noida Authority charges transfer fees, this transfer fees varies from sector to sector. Transfer charges for a flat may be as high as Rs 350 per sq ft, this means that for a flat of size 2000 sq ft transfer charges will be Rs 7 Lacs. So, the over head cost for selling a flat of 2000 sq ft of cost Rs 1 Crores after registry to a new buyer will be something like:-
- Transfer charges - Rs 7 lacs
- Brokerage - Rs 2 Lacs
- Registry by seller and buyer - Rs 10 lacs
- legal charges - Rs 30,000/-
The over head charges for selling a flat immediately after registry is around 20% of the cost of the property. One may also take in account the taxes like:-
- Fees and registration that builder has paid to the government
- GST that builder has paid
- Income tax that buyer has paid to the government
- GST that is paid by the buyer
- If there is delay in construction of flat then additional expenditures come up in terms of rent and EMis that a buyer pays.
- Interest on loan
- Processing fees on loan
- Brokerage paid while buying a flat
- Delay charges
- Holding charges
- Possession charges, sinking fund
Roti, kapda aur makaan (food, clothing and house) are the basic things that government should provide to it's citizens, however, as we see, the extra charges on buying a property is so high that one ends up paying Rs 120 lacs for a flat that has actual value of 40-50 lac rupees, rest all goes into extra charges.
Under such conditions transfer charges levied by Noida authority seems to be too steep. Because of the Transfer charges it is very difficult to sell a registered property in Noida, this dissuades the investors and buyers from the real estate market and stalls the overall sales of the properties.
Is transfer charges responsible for recession in Noida real estate market
Almost all properties under Noida authority is on lease hold to the builder, builder further sub lease the property to the buyers. Buyer registers the property with Noida authority by paying the registration fees. In case the buyer wants to sell the property he makes a sub lease transfer request to Noida Authority in the name of new buyer.
For this transfer to happen Noida Authority charges transfer fees, this transfer fees varies from sector to sector. Transfer charges for a flat may be as high as Rs 350 per sq ft, this means that for a flat of size 2000 sq ft transfer charges will be Rs 7 Lacs. So, the over head cost for selling a flat of 2000 sq ft of cost Rs 1 Crores after registry to a new buyer will be something like:-
- Transfer charges - Rs 7 lacs
- Brokerage - Rs 2 Lacs
- Registry by seller and buyer - Rs 10 lacs
- legal charges - Rs 30,000/-
The over head charges for selling a flat immediately after registry is around 20% of the cost of the property. One may also take in account the taxes like:-
- Fees and registration that builder has paid to the government
- GST that builder has paid
- Income tax that buyer has paid to the government
- GST that is paid by the buyer
- If there is delay in construction of flat then additional expenditures come up in terms of rent and EMis that a buyer pays.
- Interest on loan
- Processing fees on loan
- Brokerage paid while buying a flat
- Delay charges
- Holding charges
- Possession charges, sinking fund
Roti, kapda aur makaan (food, clothing and house) are the basic things that government should provide to it's citizens, however, as we see, the extra charges on buying a property is so high that one ends up paying Rs 120 lacs for a flat that has actual value of 40-50 lac rupees, rest all goes into extra charges.
Under such conditions transfer charges levied by Noida authority seems to be too steep. Because of Transfer charges is very difficult to sell registered property in Noida, this dissuades the investors and buyers from the market and stalls the overall sales of the properties.
Noida property and Ghaziabad property to benefit from NH 24 expansion
Expansion work on NH24 is going on at full pace, Major problem that NHAI is facing is heavy traffic and land filling of low lying areas adjacent to NH24. To over come these problems there are number of route diversions that has come up on NH24 and at most of the places elevated roads have been planned. Work is going on near Indirapuram, sector 63 Noida, siddharth vihar, Gaur city turn, Crossing republic and beyond.
Number of overhead crossings have been planned for intersection of roads at NH24, one such crossing is coming up near Gaur city turn. As of now travelling time from crossing republic to Akshardham is around 40 minutes at peak hours, this is likely to reduce to 15 minutes once the work of NH24 is completed. Completion of work on NH 24 is likely to benefit following locations near Delhi:-
- Indirapuram
- Siddharth Vihar
- Noida
- Crossing Republic
- Noida Extension
- Commercial property in sector 63 Noida
- Residential property in Indirapuram
- Commercial property for sale in Crossing Republic
- Residential property in Siddharth Vihar
- Commercial property in Greater Noida west
- Residential property in Greater Noida west
Property for sale - What you should know before buying a builder floor
Buying a property is a personal choice, one template does not fit all, therefore, the aim of this article is to bring out the advantages and disadvantages of builder floors. As we known that builder floors are the flats that is made on a stand alone plot of 50 sq yds to 500 sq yds, where as the society flat is a one in a society that has many towers and many flats. The advantages of builder floor are:-
- Builder floor can be found near to your area of interest - like your office or school
- Cost of builder floor is comparatively lesser than the society flats
- Monthly maintenance of such flats is lower
- One can have own back up power arrangements in these flats
- One can choose own fitments, floor, paint during construction
- Maintenance of lift and common area is difficult in builder floor due to lack of coordination between residents
- There are no club houses, swimming pool, Gymnasium, sports arenas in such arrangement
- There is a lack of social interaction as not many families are staying in the building
- Daily need requirements may or may not be available
Where to buy property in Noida
By Gargi Bhati - phone 8375924100
- Yammuna on South side
- Hindon on Eastern side
- Delhi
- Ghaziabad
- Faridabad
- Greater Noida
- Central Noida - This location is merged with the actual city of Noida, here all facilities are available, including metro rail. Howerver, this place has very high population density.
- Noida Expressway - Area between Noida and Greater Noida expressway, public transport is not readily available. Good living conditions and quiet open.
- Sector 100 to 110 - Best of both expressway and central Noida, open living and facilities nearby
- Around sector 150 - This area is near Greater Noida, Floor area ration (FAR) of this area is less, so it is quiet open. Good living conditions.
For commercial property central Noida (sector 74 to 79) is the best because of number of flats in this area, For long term commercial property investment, one should consider Noida expressway properties like XNoida mall shops in sector 129 Noida, WTC CBD Noida, sector 132 etc. Sector 150 is good for someone who is planning to settle in Noida in next 2-3 years.
Sector 100 to 110 is on the left side of expressway when travelling from Delhi to Greater Noida, this place has got best of both the central Noida and the Noida expressway. Metro rail is close by, daily need requirements are available, one can get a public transport, roads are wide and open.
For Industrial property sector 57 to sector 63 is good, sector 62 mostly has IT or corporate plots, For IT plots sector 126 on Noida expressway is very promising.
What many people do not know about real estate
By Gargi for www.property.sale dated 07 Sep 2019. Phone 8375924100
- Take loan from bank
- Buy a house
- Take a tax rebate.
- You have Rs 30 lacs in your bank account
- On this you get nominal interest
- The interest is also taxable
- Money gets devalued because of inflation
- You have Rs 30 lacs of Fixed deposit
- You get slightly better interest rate
- You may not break FD for certain period of time
- Interest that you get is taxable
- Money gets devalued as the interest rate is lower than inflation
- Compare this with the commercial property that gives an Early payment rebate of 12% per annum
- Risk is less as many builders give cheques with bank guarantee
- 12% interest is tax free as it is early payment rebate
- Properties have assured rental of 9% per annum after possession
- On buying such property for Rs 30 lacs
- One recovers almost 50% investment in few years
- Value of property increases by lets say 30%
- Investment of Rs 30 lacs may give profit of Rs 24 lacs in few years years.
Unlike Gurgaon, ratio of commercial shops in Noida viz a viz to the number of houses is very less, therefore, commercial shops in Noida fetches good rentals and price escalation.
One should invest in residential property when they are nearing their retirement, one can think of buying one residential property and rest of the property should be either commercial or diversified (with good rental income). People who get company or government house for their service period or who can claim HRA should first invest in commercial property, they can than buy a residential property near their retirement, this gives them flexibility to adjust to the dynamics of family requirements. for example one person says :-
I purchased a property in Bangalore then my both sons got a jobs in Gurgaon, now I have to sell my house in Bangalore and buy a new one in Gurgaon.
Buying a residential property and giving it to someone else to live in is not a good financial decision because one gets very less return on investment in terms of rent from such properties. Residential property should be taken for self use or for profit in terms of appreciation in price.
Presently demand and supply equation is highly skewed in favor of commercial property, thus, one is likely to make very good profits in commercial property market
Few of the good options available in Delhi/NCR in are as under:-
- Xnoida mall shops - first upcoming mall of Noida expressway. Gives upto 12% EPR (Tax free)
- AIPL Commercial property in Gurgaon with collateral and rentals
- WTC CBD office space and commercial shops. Gives upto 12% returns.
- OMAXE Connaught Place virtual space in shoppers stop store Greater Noida . Gives 11% rent for five years.
One should think "out of box" when planning to invest in real estate. Residential property creates a hole in the pocket in terms of heavy EMIs. Pre rented / EPR commercial property improves financial status and improves the lifestyle. A good rental is a consistent income to the house hold, it is like one more earning member in a family.
Information given in the blog is subject to change, terms and conditions apply
Why group deals and what is the right time for Group Deals
What is a Group Deal. Group Deal ( www.group.deals) is a process where number of people get together to buy a particular or similar item, mostly each person in a group gets one item. If the group is of 20 then 20 items are purchased in bulk. For example:- If 20 people make a group and buy a particular car then each one gets one car. The main advantage of such a group buy is quiet obvious, it is to get a good discount, other advantages of group deal (www.group.deals) are as under:-
- One gets other benefits like free accessories
- Any fees required to be given is divided in the group so the price reduces
- One can hire a professional if required and divide the fees in the group
- Reduction in price by the manufactures
- Reduction in price by wholesale
- Reduction in price by retailer
- Division of service charges in the group
Timing of a group deal is also very important, the timings for few items are as under:-
- For cars/vehicles - End of the year 15 Dec to 31 Dec as change of year depreciates the older vehicles
- For property - Navratras(festival time) as many offers come on these days
- For mobile phones - few months after launch of a new version
Overall group deal (www.group.deals) is a good way to save money, this also helps in getting hold of a right product with the help of other members of the group or the group deal (www.group.deals) experts.
Society shops in Noida with or without wall
Making a wall in front of a society shop has become a big issue in Noida. All society shops in Noida has been asked to make a wall in front of the society shops i.e in case the approved society map has a wall in front. The reasons for this problem are as under:-
- Difference in the cost of residential land and commercial land
- Traffic problems in front of the society shops
- Security issues for the residents of the society
- Corruption and revenue loss to authority and government
- Lots of illegal kiosks / booths have come up at open area of such society shops, mostly as eating joints
Commercial land in Noida is almost four to five times costlier than residential land, however, in all residential societies some percentage of land is given as commercial to make daily need shops for the society residents. These shops are to be made in a manner that the security of the society is not compromised. Moreover, it society shops are un-walled then it is easy to approach for the commuters on the front road, this will tempt the commuters to stop the vehicle and do a quick purchase. Temptation of a quick purchase is good for the shopkeeper but this also results in a traffic snarl. Many vehicles starts getting parked in front of such shops that virtually reduces the width of the motor able road.
In such cases many things are interlinked, few are as under:-
- Society shops without walls get good business
- Good business gets got rentals
- Good rentals gets good price for the shop
- Good price is good for the builders and later for the owners of the shop
- Traffic problems as there is no parking provision in front of society shops
- Security issues for the residents as such shops are open for all
- Loss to the owners of commercial property
- Lesser rates and low number of buyers for commercial land
- Difficulty is selling the shops made on a pure commercial land
What should be the budget for a property to buy
Question of budget comes up time and again because there are financial constraints in everyone's life, barring few. Here we are discussing, "What should be a basic yardstick to calculate the budget for buying a property". This depends on few important things like:-
- Reason for buying a property
- Income of buyer/buyers
- Assets of the buyer/buyers
- Liabilities of buyer/buyers
- Type of property
- Interest rate on loan that is to be taken, if any
- Likely profit in investment
Buyer should do a thorough calculation of his/her assets and liabilities before fixing budget for a property. Income of a buyer is one thing that gives a "basic yardstick" for the budget for buying a property, Here the income that you calculate should be the net income after deduction of taxes. The basic yardstick for different expenditures in life , including "buying a property" is as under:-
- For yearly travel - Income of one - two month
- For buying a Car - Income of three - five months
- For renting a property - Income of 7 - 10 days
- For buying a property - Income of four - six years
Interest on loans in India is very high, therefore, one must evaluate the loan liabilities. One should avoid taking loans in case the loan rate is above 8% per year. If interest rates are high then one should close the loan fully or partially in future. One may buy a branded property in early launch or in distress to make up for the losses that one incurs due to high interest rates on loan.
These are the basic yardsticks for setting a budget to buy a property. Views on the subject are welcome.
Sikka Karmic Greens residents put protest posters
After much delay Sikka delivered a project in sector 78 by the name of Sikka Karmic Greens. Many residents moved into the half completed society as they were paying EMI and rentals for a very long time. As they moved in the society flats, the club house was empty and swimming pool was dry. Even after more than one year the situation is same and the swimming pool is still not functional.
As per many residents the quality of construction is not good and the common area is not maintained properly, builder is also over charging in power backup and monthly maintenance. Residents are overall very disappointed with the project, thus, number of posters can be seen on the balconies of Sikka Karmic Greens saying:-
- They have been looted by the builder
- Swimming pool is not working
- Basement is getting flooded
- Common areas not maintained
- Builder is overcharging
Yaana app based bicycle service starts at Panchkula
Yanna is an app based bicycle service has started in Panchkula on 21 Aug 2019. There are approximately 21 stations for the bike in Panchkula out of which 19 are functional, 02 stations are yet to start. The system is provided by "Yaana Smart technologies pvt ltd" based at Kpppal, Karnatka. Presently the rates are Rs 5 for every 30 minutes, also there is a referral program of one free ride if you refer an app to a friend. Payment of minimum Rs 50 is required to be made to start using the services. The system works as under:-
- Download the app "Yaana"
- Make payment of minimum Rs 50
- Scan the coede on the bicycle
- Use the bicycle
- Leave the bicycle at any station
- Inform regarding the completion of the ride
- GPS will keep tracking the bicycles
On the first day many people were seen standing near the station trying to figure out the system. There was no company rep available to explain the system. There was one board that explained the usage but the same was in english. Lot of peopel were trying to decode the cryptic information given on the board. Many had downloaded the app but the payment gateways were not working for credit cards. There were lots of speculations among the crowd regarding the practicality of the system, chances of theft of cycles, damage of cycles, location of GPS etc. One problem that is seen is that most of the bikes will either end up at Housing board crossing or at sector 20 as these are the busiest locations of Panchkula.
The system seems to be good for people who come to city from outside for a short while, locals may prefer to buy their own bikes. This system adds one option of transport in a city where the public transport is difficult to find.
Tata Eureka Park sector 150 Noida Info
By:- Gargi Bhati, phone:- 8376048600 (contact for bulk booking with best rate benefits)
Tata project at sector 150 is now reopened for booking (RERA number UPRERAPRJ5448, promoters are "Land Kart Builders Pvt Ltd") by the name of "Tata Value Homes Eureka Park". The project is again a joint venture between Tata and Lotus group, but this time TATA is having a bigger share than Lotus ( as per our information TATA has 51% shares and Lotus has 49% shares). With Tata having majority of shares the project now seems to be in safe hands, therefore, we expect smooth sail for the project from here on wards. Project is in area of 21 acres and phase 1 of the project is due for delivery by March 2023 (as per RERA records).
Tata is one of the most trusted brand of India, the name in itself speaks of high values and ethics. In real estate segment Tata has delivered finest of projects. Tata projects provides modern living with best of amenities. The cost of the properties made by Tata Value homes are reasonable as they do not over charge for their branding. With vast experience of the group in construction line, their projects are known for good architecture and construction.
Tata Value homes "Tata Value Homes Eureka Park" is a project that is in 21 acres of land with 20 number of towers ( tower number 1 to 21, tower number 13 is not there, presently only 10 number of towers are open for sale. The towers open for sale are as under:-
- Tower number (1,2,3,4) - size 1100 sq ft, G+28 floors, five flats per floor, three lifts, one side facing open farms
- Tower number (8,9,10) - size 1285 sq ft, G+28 floors, four flats per floor, three lifts
- Tower number (19,20,21) - size 1575 sq ft, G+22 floor, four flats per floor, three lifts, one side facing golf cours
- 2BHK flat - 1100 sq ft
- 3BHK with 2 toilets - 1285 sq ft
- 3BHK with 3 toilets and one servant toilet - 1575 sq ft
- Project is in a four side open plot
- It has a lovely view of yammuna open farm land at one side
- On the other side it has a view of a golf course
- Four tennis courts
- Two badminton courts
- Full length basketball court
- Two banquet halls (One indoor and one open)
- 25000 sq ft of luxury club house
- Swimming pool
- Smart home IOT facilities like
- Bio metric door lock
- Auto ambiance on arrival including setting of temperature of AC
- Auto on/off of lights
- Voice command and Alexa interactive features
- SMS on phone on particular events in house
- Alarm on detection of gas leakage
- Open green area
- Indoor sports
- Free wifi at Gazebos
- Co-working space with in the campus
| Preferential Location Charges (PLC) | |
|---|---|
| 1st Floor | Rs. 150 Per Sq. Ft. |
| 2nd - 7th floor | Rs. 100 Per Sq. Ft. |
| 8th - 12th Floor | Rs. 75 Per Sq. Ft. |
| 14th - 19th Floor | Rs. 50 Per Sq. Ft. |
| Landscape Facing | Rs. 100 Per Sq. Ft |
| Car Parking Charges | Rs. 3,05,000 |
| ESC | Rs. 50 Per Sq. Ft. |
| FFC | Rs. 50 Per Sq. Ft. |
| Power Backup Charges | Rs. 20,000/- Per KVA ( 2 BHK – 2KVA , 3BHK – 3 KVA ) |
| Club Member Ship | Rs 1,50,000/- |
| IFMS | Rs. 25 Per Sq. Ft. |
| LR | As per Actual at the time of Possession |
After all charges the flat comes out to be approximately Rs 5700 psf, thus making the approximate cost of three types of flat as under:-
- 1100 sq ft - Rs 62.70 lac + 5% GST (Good buy as many flats have a open view of farm land)
- 1285 sq ft - Rs 73.24 lac + 5% GST (Good buy will be park facing flats)
- 1575 sq ft - Rs 89.77 lac + 5% GST (Best buy as many flats are Golf facing flats with no golf PLC/view charges)
- Sanjay Sharma (since 18 July 2019)
- Harleen Singh Oberoi (since 18 July 2019)
- Joy George (since 14 Sep 2018)
- Naveen (since 14 Sep 2018)
As of now sample flat of 1575 sq ft has been made at the site office of the project. Overall, location is excellent, the connectivity to all major locations is very good, metro line is already functional in this area. With airport at Jewar (Greater Noida) coming up this place will see good price escalation. There is lots of safety in going with a brand of TATA, thus, this is a good buy as one can save a lot by booking this property at a launch price. When comparing to the recently launched Godrej project in same location, cost of the Tata flats are almost 30% lesser than the Godrej flats.
By:- Gargi Bhati, phone:- 8376048600 (contact for bulk booking with best rate benefits)
Shops for sale in Noida : Overview
Noida has fast become a commercial property hub of Delhi-NCR. The investment in commercial property at Noida has given good returns to investors in terms of rental income and escalation of property prices. The reason for good return on investment in commercial property in Noida is the ration of number of shops versus the number of houses in the city. There is approximately 3.72% land in Noida which is earmarked as a commercial land, this is far lesser than the than in other cities like Gurgaon, Ghaziabad and Faridabad. Lesser commercial space means that the number of houses dependent on a shop is high or in other words the number of customers per shop is high, this means a better business, better rental and better price escalation.
The type of shops available for sale in Noida (as in August 2019) are as under:-
- Society shops made by builder, popular locations are sector 74 to sector 79, sector 143, sector 150
- Independent Shop of Noida Authority
- Sector 18
- Sector 50
- Sector 51
- Sector 110
- Independent shops of builder ( Wave city center at sector 32 )
- Shops in upcoming commercial malls
- Spectrum metro mall
- Xnoida mall sector 129
- MMR 52nd avenue sector 52
- Commercial mall in sector 150
- High street shops
- Corner walk sector 143
- Spectrum High street shops
- Shops in sector 152
- Shops in IT&ITES plots
- World trade center CBD at sector 132
- ATS bouquet at sector 132
- Advent phase 2 at sector 142
- Bhutani Alphathum at sector 137
- Bhutani Cyberthum at sector 140a
- Anthurium sector 73
- ATM/Smaller shops in World trade center CBD in sector 132
- Virtual space in malls (best for those who want fixed assured income without getting into rental hassles)
- Shops in lal-dora and shops of 5% kisan quota
One may consider buying a shop in a society / ground floor shops of a mall. Food court and ATMs are also very popular with investors. Buying shops in lal-dora and 5% kisan quota should be done with due consideration of all the laws and bylaws associated with the property.
There are about 30 to 40 good pre-rented showrooms and banks that are for sale, one should consider showrooms of size above 1200 sq ft which are on ground floor as demand of such showrooms is high. Smaller size shops are getting poplar with the eating joints that depends more on home delivery than walk in customers, with apps like Swiggy and Zomato, demand of smaller size shops has increased.
Overall, Noida is a good place to buy commercial property. One should buy ready to move properties which are pre-rented. In case of under construction properties one should consider ground floor shops, food court shops and ATM spaces.
What to say when someone asks "Why you want to sell this property"
Sometimes in our lives we come across a situation where we have to sell a property. When doing so a most obvious question that a prospective buyer will ask is "Why you want to sell this property". The answer to this question influences the outcome of the deal in terms of conversion and the final price. As a seller one should be smart in choosing the words that he/she say to a prospective buyers.
When answering this question one should be convincing and consistent as this question may be asked in different ways time and again. One should never say anything that indirectly demeans or degrades the house or the locality. Avoid saying things like:-
- this house is small or stuffy
- we have moved to a better place or bigger luxurious house,
- this locality is not good
- neighborhood is not good
- builder has not done a good job, construction quality is bad
- facilities are not proper
- society charges are too high
- maintenance is a problem etc
- infestation of bugs and rodents
- Where your kids study ?
- How do you commute to office ?
- Where is your wife working ?
- How is the society that he is presently living in ?
- What are the things that he/she likes about this place ? etc
The answer to the question then should be very pragmatic, one can give a impression that they are still in love with this place and do not want to leave it but now the requirements of the family/kids have changed, like:-
- Kids are now going to a different school/college which is closer to the new house
- Your office is closer,
- Your wife has to commute lesser distance,
- You are closer to your parents etc.
Never say things that shows that you are in need of money in a very short span of time, like:-
- we are expanding our business
- we suffered losses
- we have to close a personal loan
- loan is a big financial burden
- money required for treatment of close relative
- marriage of daughter / some major event for which money is required
- we are buying a new property
- we are moving abroad
As we know that this is one question that will pop up in all sales deals, therefore, it is wise to be prepared for it. A correct answer can make a substantial difference in the deal. The trick is to not to show your hand first and frame an answer that is based on the requirements of the buyer, like good school, good public transport, closeness of his office from the place etc
How to sell an empty house
An empty house is like a canvas without color, it has very little expression and thus it is quiet a task to sell an empty house. An empty house suffers from a continuous neglect and it deteriorates very fast. If the house is left empty for a very long time then there are lot of problems that seeps in, most common problems are as under:-
- Blockage/leakage of pipes
- Blocked gutters
- Breaking/falling of tiles
- Seepage
- Scrapping of paint
- Rusting of fittings etc
- Infestation of rodents and insects
- Keep the house neat and clean
- Get some maintenance done
- It is worth getting a house whitewashed and painted
- Put some furniture in the house
- Put the spare curtains that you have in your house
- Get new curtains for the Drawing room as it creates the first impression
- Keep your house at right temperature for visit
- Put some paintings and wall decorations
- Put mirrors at right place in the house
In an empty house the flaws become more prominent, moreover, an empty house looks smaller that the one that is occupied, putting mirrors and furniture can do wonders. Last thing that you want to do is look desperate for selling a house, an obvious question that will come up from a buyer is:-
"Why are you selling this house ?" or "Why you want to sell this house ?"
One should answer this question very carefully, on how to answering this question one can read our blog "what to say when someone asks you that why you want to sell this property"
If well planned the sale of an empty house can happen in a very short period at a very good price. One should be very decisive in taking prompt decision and small expenditures to make the house more livable and beautiful should not be avoided.
Why customers are saying "No" to No-broker concept and saying "yes" to broker deals
With the boom of social media and easy access of internet there are number of sites that are promoting Real Estate deals with a concept of no-broker in the deal. This means that the seller and the buyer can do the deal without any real estate agent/broker in between. The promoters of such sites believe that the Real Estate Agents are not necessary and real estate deal should be done without any agent. The concept of such sites are as under:-
Few initial deals are shown for free, then a big amount is required to be paid to see more deals, then again you have to pay more to see more deals. In many cases customers pay lots of money without getting any information about worthwhile property. So this way a brokerage ( called as service charges or some other name ) is taken by the company without giving any worth while service to the client.
One of the major problems of no-broker concept deals is that most of the sellers list their property on the website at a very high cost. It is like every father thinks that his child is very beautiful. Sellers are oblivious of the current market trends and they have their mind fixed to the top rates that ever surfaced in their imagination.
On the contrary to the concept of no-broker many people know that the agent has a very important role to play in any real estate deals, the role of agent in a real estate deal is shown as under:-
- Both buyer and seller benefits from the knowledge and skill of the Agent
- Agent saves both buyers and sellers time and money and can help them avoid big blunders.
- Agent as a part of his job ensures the following for the seller
- that the property is in a good condition to show to the buyer
- pricing of the property is correct and in accordance with the market trends
- property is advertised well in media to get right buyers
- Coordinate visits of the buyer and shows the property
- Convinces buyer to buy the property, if required he pursues the buyer for many weeks / months
- Formulates terms and conditions, if required he hires a lawyer
- Closes the negotiation
- Does the paperwork regarding agreements, transfer, registry etc
- Buyers take the services of a agent for the following:-
- Most of the people are professionals and so they do not have time to look for property in depth
- Buyers believes in the knowledge and skill of a agent
- Buyers wants to avoid making costly mistakes and blunders
- Buyers wants to save time and money
- Many buyers are outsiders so they are not familiar of the area
- Buyers do not know the inside information like
- Financial health of a builder / seller
- Reputation of the builder / seller
- Quality of the construction
- Legal issues of the property
- Prospects of the property and the general area
- Going rates, discounts and offers on the property
- To avoid frauds of real estate by doing the background checks of the seller
New bridge between Noida and Greater Noida to get interconnect and more
New bridge that connects sector 79 of Noida to Sector 1 of Greater Noida is opreational for quiet a while, however, as one approaches Noida the bridge narrows down to a single lane diversion. As of now traffic on the bridge is not much but it is like to grow in coming times. To cater for increase in traffic it is important that the bridge merges the traffic smoothly with the FNG road at Noida, to achieve this a new intersection is being made. The intersection will take around six months to be completed, it will divert the traffic to the left and right of the FNG with road loops.
Road network within Noida has improved in last few months with work on new roads connecting various sectors has been completed, these roads are as under:-
- Sector 77 to Sector 120
- Sector 79 to Sector 77
- Sector 78 to Sector 76/77
- FNG to Sector 79
- Sectror 79 to Vishwakarma link road
- Sector 79 to Samsung factory and beyond
Tyre killers of Noida likely to die it's own death soon
Noida Authority identified wrong side driving as a traffic menace and to check it, they had installed "tyre killers" . Tyre killers made big news as not many cities have this kind of an arrangement. It was a new experience for the motorist of Noida, It is a metal speed breaker with sharp teeth attached on ground with a spring. If a motorist comes from the right direction the sharp teeth of the "tyre killers" is pressed down by the weight of the vehicle, however, if the motorist is coming from the wrong direction than the teeth of the "tyre killers" damages the tyres of the vehicle.
As trial run, Noida Authority had installed the "tyre killers" at Sector 77 near Supertech project North Eye. This was a good place for trial as a motorist has to go as far as 400 meter on not so busy road to take a U turn. Now in less than a year the project seems like a a failure. Half of the teeth of the Tyre killer are not working. The major reason for the damage is failure of the spring mechanism. Possible reasons for spring mechanism failure are:-
- Damage due to passage of heavy vehicles
- Deposition of dust in the cavity that jams the mechanism
- Miss alignment of teeth due to pressure from sides
"Many efforts were made by the authority to keep the system working, but maintenance of the system is not practical , it is a total failure and soon this will be either uprooted or will die it's own death"
We also agree that the Tyre killer system will not work, mostly due to excessive dust that is there in the environment, there are number of sand filled trucks that still plyi on the road,. Each time such a truck passes , a massive load of dust falls and blocks the system. Moreover, lot of wrappers and filth was found in the cavity on close inspection.
Major crackdown on illegal construction by Noida Authority
Noida Autority is taking strict action against
all the illegal construction in Noida, in a recent move Noida authority
officials went on a crackdown at Aditya Celebrity homes society and commercial
complex at sector 76, Noida. On 08 Aug 2019 the authority reps along with the
labours and Bulldozer reached Aditya Celebrity homes, as per the information
they had reached as a reaction to the complaint of the RWA of the society. The
complaint was regarding the illegal construction of the following:-
- Food stalls in the commercial complex
- extension of the temporary sheds in front of the shops
- Temporary entry gate at the shopping complex
- Gymnasium constructed inside the residential complex.
Authority reps razed down the gymnasium with a
Bulldozer and JCB and the labours were used to raze down the food stalls in the
shopping complex. As for the extension of the overhead sheds of the shops the
Authority reps gave time of 2 days to the owners of the shop to bring it down.
The entire activity started around 1100 hr and was finished at around 1530 hr,
Noida police was also present to ensure that the action of the authority is
completed without any interference of the shop/stall owners. It is reported
that the temporary food stalls were made by few owners of the shop and a
hansome amount was taken as a rent for the food stalls, the amount may be as
high as Rs 50,000 to Rs 70,000 per months ( but the same can not be verified ).
In near future more such actions are likely to take place in Noida, in one of the recent cases one of the owners of the flat in sector 29 Noida had approached Noida Authority for transfer of a flat in her name after the demise of her parents, Noida authority found that the neighbors of the owner had earlier given a complaint regarding illegal construction of a store room. About a month back Noida Authority has given a letter to the owner to clear off the illegal construction within 30 days, else the same will be done by the Noida Authority as the cost of the owner.
Circle rates reduced by upto 21.5% for commercial property in Noida
Noida Authority has implemented the reduction of the circle rates of commercial property with effect from 08 Aug 2019. Circle rate of commercial property in Noida has been reduced by upto 21.5%. Information was collected by the Noida Authority regarding the difference in the circle rates and the selling rates and it was found that circle rate of the commercial property is lesser than the selling rate, therefore, the decision regarding the reduction of the circle rate in Noida was implemented.
One more reason for reduction of the circle rate is slow down in the sales of the commercial property in Noida. Large commercial land were not getting sold, this was resulting in major revenue losses, only transaction of smaller shops was taking place, that also was not very frequent. This reduction is likely to boost the sales of the commercial property. Noida authority had asked for objections (if any) regarding the reduction of the circle rate, in all about 12 objections were received by the authority and after thorough analysis of the same the decision regarding the reduction of the circle rates was taken.
As of now buyers were buying properties at lesser rate and were giving registration money as per circle rate (which was higher than the buying rate) , moreover, the buyers and sellers were also prone to income tax scrutiny as buying a property at the cost lesser than the circle rate sometimes attract such action. The reason for such scrutiny is that the income tax departments suspects that black money is adjusted in the deals that are done below circle rates. Even bigger problem was that to avoid income tax scrutiny many deals were getting cancelled and there was a slow down in the transaction of commercial property. Many builders also started defaulting on the payment of the land dues, this also resulted in a financial loss to the government and the authority.
Reduction in circle rate is a welcome move and this is certainly going to ease out transaction of commercial properties. In short time we can see more buyers preferring Noida over Delhi and Gurgaon as commercial property in Noida is likely to give good returns in terms of rent and escalation of price.
Where to buy property in Jammu and Kashmir post abolition of Article 370
With Article 370 is about to be abolished people from rest of India can now plan to buy property in Jammu and Kashmir (J&K). J&K is a beautiful state that provides good healthy living, lots of seasonal fruits and dry fruits. The state is a major tourist hub which is now all set to expand as a Switzerland of India. The property rates in this state will go high and many business opportunities will also emerge. Few places where one may think of buying a property in J&K are as under:-
Jammu
- Winter Capital of the state
- Good connectivity by road, rail and air
- All major facilities available
- Good education facilities
- Gateway to rest of the J&K
- Biggest business center of the state
- This city will grow very fast as this is the entry point to all roads ahead.
- Climate is pleasant but mostly hot in summers
- Has good hotels, clubs, golf courses
Srinagar
- Summer capital of the state
- All major facilities available
- Beauty of Kashmir and metro city
- Good connectivity by air
- Major tourist destination
- Business capital of Kashmir
- There are many tourist spots like Dal lake, mughal gardens, chashm-e-shahi
- It has a temple of Shankracharya
- Less pollution
- Beautiful Golf course
- City is prone to floods
Katra
- Holy town of "Mata Vaishno Devi"
- Good connectivity by rail and road
- Many visitors every year for visit of shrine
- Good facilities and lots of hotels
- Good for hotel and dry fruit business
- Pleasant weather
Riasi
- Close to Katra and Sundarbani
- Bhimgarh Fort is located in town
- It is a big town that is about 2 hours away from Jammu by road
- On the banks of river Chenab
- Major hub for water sports
- Between holy route of Katra and Shivkhori
- Good connectivity by road
Akhnoor
- This town is an extension of outer Jammu towards norh-west
- The area between Jammu and Akhnoor is mostly occupied
- Town is very close to Line of control(LOC)
- The road beween Akhnoor and Jammu is conjested but a new highway is proposed to connect the two towns
- The town is on the banks of Chenab river
- Akhnoor fort is located in town
- Town is on foothills, good picnic spots to visits with in 20-30 kms
- Connectivity to Jammu is good
Sundarbani
- One has to cross a mountain range from Akhnoor to reach Sundarbani
- Town is very close to LOC
- One road from the town goes to Riasi and Shivkhori, and other towards Poonch
- This is a small town and has only basic facilities
Naushera
- This is a next town from Sundarbani on route to Poonch
- Points for this town are similar to that of Sundarbani
- This is a major town on Jammu - Poonch road
- This is the biggest town after Jammu on the route mentioned
- This is a big business center
- All major facilites are available
- It has a good education infrastructure and even has a medical college
- Climate of Rajouri is very pleasant
- It falls on old Mughal route with historic towns like Chingus nearby
- Connectivity to Jammu by road is good
Poonch
- Almost last point of north western road from Jammu
- Very beautiful town with connectivity to old Mughal road
- Holy shrine of Budha Amarnath is located near to this town
- Very close to LOC
- Road to Poonch is not very good'
- Takes a long time to reach rail head(Jammu)
Patnitop
- This is a hill station that is very close to Udhampur
- The road connectivity is very good
- This is one of the most well known tourist town near Jammu
- From here the road goes to Ramban and Banihal
- There are few hotels here and is one of the highest points in the area
- This area is the one of the closest place to Jammu where snow fall is seen in winters
Bafliaz
- Closer to Rajouri and Poonch
- This place has a beautiful waterfall known as "Noori Chamb"
- "Noori Chamb is the water fall where it is said that "Noor Jahan" used to take bath in this waterfall
- The route to "peer ki gali" goes through Bafliaz
- The road through "peer ki gali" connects the area of Poonch and Rajouri with Kashmir valley
- This location is very beautiful and has a high potential to be developed as a major tourist spot
Gul
- One of the lesser known beauty of J&K
- This is mini Kashmir outside kashmir
- This is a historic city near Ramban on the foothills of Pirpanjal ranges
- It has beautiful pastures and mountains
- Also known for a historic place "Ghoda Gali"
- Connectivity of this area is not good
- Soon rail connectivity will be extended near to this area
Pahalgam
- Pahalgam is one of the most beautiful place in Kashmir
- The road to Pahalgam goes from Anantnag
- Route to holy cave of Amarnath is from Pahalgam
- It has beautiful open grounds, running rivers, nallas and is surrounded by mountains
- There are hotels and guest houses, many may be in state of disuse
- This is one of the best location to plan a hotel / resorts
- It has good tracking routes, ponny routes and golf course
- Road from Anantnag to Pahalgam is very scenic
Gulmarg
- This is winter sports capital of Kashmir
- It is the nodal center for Skiing in India
- It has a ropeway facility
- The location represents the true beauty of kashmir Valley
- One of the best tourist destination of India
- Most promising place for tourist activity in future
- Good connectivity by road and by air
Udhampur
- One of the major town on Jammu - Srinagar road
- Well connected with rail and road
- All facilities are availabel at this location
- Climate here is very pleasent
- Not very far from Jammu
Kokernag
- Kokernag is in Breng Valley also known as golden crown of Kashmir
- Route to Kokernag is from Anantnag
- There is a beautiful botanical garden and springs at Kokernag
- Most of the places that are ending with word "nag" will be having springs, as in sanskrit "nag" means spring
- One of the most popular tourist spots of Kashmir
Sonmarg
- This is the gateway to Leh and Ladhak
- The shorter route to Amarnath cave is from Sonmarg - Baltal
- It is well connected with Srinagar
- Climate of this area is very pleasent
- Almost zero pollution in this area
- Very scenic and beautiful area , can be a good location for transit halts
- One of the halt centers in case of traffic jam towards Leh
About MS Dhoni , Sakshi Dhoni, Rhiti sports, Harbhajan Singh and "Amarpali Group fraud with homebuyers"
Dhoni as a brand Ambassador of Amarpali Group
Following footsteps of their captain many other cricket players also invested in Amarpali Group, many appeared in various events of Amarpali Group.
Harbhajan Singh
Harbhajan Singh was one of the first celebrity and cricket player who went public against Amarpali Group, he was promised a villa by the builder which he reportedly never got. One of the buyers in Aug 2017 had sent a tweet to Harbhahjan Singh saying that he got his villa but the home buyers are still waiting for their flats, the tweet was as under:-
"sir aap logon ka villa to mil gya free mein. Humhare to paise bhi doob rahe hai "
In reply to this Harbhajan Singh made it very clear that he was used and he did not get any villa from Amarpali
"Bhai tujhe kisne bola hamme villas mil Gaye hai?thenga Mila
hamme.Bawakoof banaya gaya.Hamare naam ko use karke
public k paise mare Gaye hai"
He further made it clear that Mr Anil Sharma may be a friend of MS Dhoni so ask him, he (Harbhajan Singh) is not a friend of Anil Sharma
"He could be his friend but not mine.. so you better ask
him not me.. use ur brain if u have thoda sa bi "
In fact MS Dhoni opted not to be brand ambassador of Amarpali Group in April 2016. At that time also Harbhajan Singh had congratulated MS Dhoni for this decision of his. Tweet of Harbhajan Singh was as under:-
"Well done @msdhoni for dropping #Amarpali builders’ brand
ambassadorship..they didn’t gave us VILLAS they announce
after 2011 worldcup win"
Dhoni vs Amarpali Group
As of now CMD Anil Sharma and two directors of Amrapali Group – Shiv Deewani and Ajay Kumar – were sent to police custody. The Supreme Court has recently directed Amrapali Group to give information regarding all their financial transactions with MS Dhoni. Whereas, the former Indian captain had moved the apex court, accusing Amrapali Group of cheating him. In his plea, Dhoni said that he had booked a penthouse in the "Amrapali Safari" project in Ranchi, but he was not given possession. MS Dhoni has alleged that Amarpali Group hadn’t cleared his outstanding dues from the period when he was the company’s brand ambassador. The Supreme Court has directed the Amrapali Group to inform it of all it's transactions with Dhoni. The cricketer is seeking Rs 40 crore for endorsing the company as a brand ambassador of the company.
Sakshi Dhoni
Dhoni’s wife Sakshi Singh Dhoni was a director (25 per cent shareholder) in a company that is part of the Amarpali Group, the company was called Amrapali Mahi Developers Pvt Ltd (AMDPL), where Amrapali Group CMD Anil Kumar Sharma held the remaining sahres. The audit report ordered by the honorable court alleged that homebuyers’ funds amounting to Rs 5,619 crore were diverted by Amrapali Group to other companies. The report that listed AMDPL as one of the recipients of the homebuyers’ funds that recieved most of the amount in cash.
Rhiti Sports
The auditors noted that another Amrapali Group company, Amrapali Sapphire Developers Private Limited, paid “a sum of Rs 6.52 crore out of the total amount of Rs 42.22 crore paid from the Amrapali group of Companies to Rhiti Sports Management Private Limited during the years 2009 – 2015.” While Rhiti Sports is a company that manages Dhoni’s sponsorships and endorsements, so there is indirect involvement of MS Dhoni in all the transactions of Rhiti sports.
Overall, ties between MS Dhoni, Sakshi Dhoni, Rithi Sports and Amarpali Group are quiet complex. There are likely to be some recoveries from Rhiti sports, the amount recovered may be used for providing home to the buyers of Amarpali Group.
Mahagun Mezzaria ready to move in flats likely to see price escalation in secondary market
Our team recently visited Mahagun Mezzaria project located at sector 78, Noida. The main reason for the visit of the team was to evaluate the project in terms of investment as well as for living. As per the latest full page advertisment of Mahagun Group, Mahagun Meazzaria project has recently recieved the "Occupancy certificate" for three towers in the project, thus the price of the project is likely to take a big jump. Increase in price is in line with few other good projects that got it's occupancy certificate in last six months.
Mahagun Mezzaria is a high end luxury project of Noida. It is located in sector 78,central Noida. It is located in a sector which is well established and has all facilities like public transport, Metro station, market, shops, schools etc. The location of the project is integrated with the established areas of Noida. The project is made in "MIVAN" shuttering and has one of the best quality of construction. All specification of the porject is of a luxury segment. It has double height lobby, double height drawing room etc.
The advantages of the project are as under:-
- This project is a top luxury project of Noida and Delhi-NCR
- Specifications of the project is much higher than Mahagun Moderna, in monetary terms it has Rs 1400 psf costlier specification
- Mahagun Moderna trades at Rs 6400 psf in resale market, thus the practical cost of Mahagun Mezzaria is Rs 7800 psf
- Minimum size of the flat in Mahagun Mezzaria is 2500 sq ft, thus the gentry in Mahagun Mezzaria will be very good
- Location of the project is in central Noida, all daily needs facilities are available in this location
- Public transport of the area is excellent, metro station is at a walking distance
- Amenities like lobby, club, sports are of very good quality
- VRV system is used for air conditioning in all the flats which is very cost effective
- All fixtures used are of a top brand
Being a established residential sector one can expect all facilities in the area. All kind of transports are available in this area. Even at late hours this area is very lively, security is not a problem in this area. One can find cabs/taxi 24X7 out here, metro network is established and metro station is at walking distance. This has a good connectivity to Noida-Greater Noida expressway as well. In all this is a five star living at one of the best locations of Noida. One can expect a good jump in the price of the flats. The flats where OC has been received will be free of GST. It is a good buy at current rate, however, the rates of this property is likely to increase in a very short time. One of the similar project of Prateek has seen a jump from Rs 6200 psf to Rs 8700 psf in a very short time near possession, similar jump was seen in one of the projects of Cleo in sector 121 Noida.
For more details call at 8375924100
Sector 150 , The Ideal sector of Noida
The noida authority plans to develop sector 150 as the ideal sector of noida with 80% green area and 20% construction. It has a huge 42 acre park . Total area of this sector is 600 acres . It will be a like sector 79 low density sector. It will also have a sports city in 300 acre which will be developed at a cost of 2300 crores. 70 % will be open area for golf course , badminton courts , volleyball , swimming,cricket and green spaces. a bridge also is being constructed to connect directly to faridabad to cut travel time and more ways to access delhi over the yamuna .the bridge will link noida to sectors in greater faridabad leading to pari chowk and lead to direct access to the expressway .
It is one of the fastest developing locality of NCR comes under Greater Noida Authority. Other prominent localities situated close to it are Noida, Faridabad, Ballabhgarh, Surajpur, Dadri, Greater Noida, New Delhi, Ghaziabad etc. This locality is very close to Yamuna Expressway which the major transit point connecting Sec-150, Noida to the other parts of the city. It has close proximity to Indira Gandhi International Airport which is situated at a distance of 48.9 km via Noida-Greater Noida Expressway. The key factor, which differentiates Sector 150 from other regions, is the presence of massive green spaces.
As major planning has been done it is no wonder that people are very excited about this sectors future and development and have created a lot of buzz in the real estate market . Many big and Reputed builders like ATS, Ace , Tata, Saha , Godrej , Prateek have already launched and few have completed their projects here . a person belonging to the upper class or a middle-class , independent housing is the first and foremost need-cum-investment which people aim for . Sector 150 surrounded by lush green area and in the neighborhood of Greater Noida is attracting a lot of end users .
Godrej Palm Retreat vs Prateek Canary sector 150 Noida
Feld is all set for a show-down between a big national brand and a favorite local brand at sector 150 Noida. At national level Godrej is a big brand and has delivered many projects till date. It is a brand that people trust and the name in itself means high standards and good quality of construction. However, in recent past Godrej properties has also faced the wrath of slowdown in real estate industry. Godrej properties by the name of Godrej Summit and Godrej Frontier did fairly well in the recent past. Godrej Meridien had a mixed reaction from the buyers.
Godrej is mostly adopting a real estate model where the risk is less, it is known as a joint venture where the land belongs to someone else and Godrej gives it's brand name and construction as a assurance to the buyers, this assurance ensures that the property gets sold off fast. In sector 150 Godrej has done a joint venture with Ace Group as the land belongs to Ace Group. This joint venture seems to be a good one as Ace Group is one of the big brands of Noida. Earlier also Godrej had done a Joint venture with Ace Group for a project in Greater Noida.
Advantages of Godrej Palm Retreat project is safety of investment, timely delivery, top level architecture, good quality of construction, better themes, good ambiance and most of all "peace of mind". As we all know that buying under construction property is a risk, therefore, to quiet an extent we can mitigate this risk by choosing Godrej. This project has a combination of low rise towers and high rise Iconic towers, they have towers which are three side open. Thus, Godrej gives more variety to the customers in terms of number of floors in the tower. Location of the project is excellent, it is much better than their previous sites of sector 150, therefore, the chances are that the price range of the property will also be higher.
The disadvantages of the Godrej property is that once you buy a Godrej project then it is very difficult to get out of it, the reason for this is high cost of the property. Godrej gives no major advantage to the investors/early buyers of the property, they do a market survey to evaluate the likely cost and demand and accordingly they launch the project at a cost which is generally 20-25% higher than the market price. In case the project is sold well then it's fine, else they will come up with various options like free modular kitchen, easy payment plans, lower bank interest rates etc.
Prateek on the other hand is a local brand of Noida. Prateek Group has done exceedingly well in Noida, in last few years, they have delivered the best projects of Noida like Prateek Ediffice in sector 107 and Prateek Stylhone. in sector 45. Recently delivered Prateek Ediffice has become the talk of the town as the price on delivery of this project went up from Rs 7000/- psf to Rs 9000/- psf, in a matter of few months. Prateek Ediffice is now one of he best projects of Noida and is in very high demand, a true measure of any project is the resale price of the project, and here again Prateek Ediffice is doing very well, Prateek Ediffice has a resale price of almost Rs 8000/- per sq ft and resale price of flats in Prateek Stylhome is touching Rs 7500/- per sq ft.
Prateek Group will have an advantage of having delivered top projects in Noida, they have a very strong presence and the feedback by the existing customers is also positive. Godrej on the other hand does not have that advantage as they are yet to deliver any project in Noida or Greater Noida.
Prateek Group has a momentum of delivery of project Prateek Ediffice. The customers appreciate that they did not go for Prateek Canary before the completion of their previous project in Noida, this shows the focus and selfless approach of the builder and his commitment to give the project in time to the customers. Some may say that delivery of Prateek Ediffice was delayed but the same can be attributed to many factors that were out of control of the builder. One such factor was the NGT ban for projects with in 10 kms of Okhla bird sancturary.
All towers of Prateek Verbena are are planned side by side, all towers have partial golf facing view, with the lower size flats (1700 sq ft) will be facing away from the golf course and the bigger sizer (2040 sq ft) will be facing towards the golf course. Talking about the golf course, it is a 25 acre 9 hole golf course that is shared and maintained by few builders, still the view of the golf course will be a big advantage to Prateek buyers.
Prateek has a project by the name of Prateek Grand City at Siddharth Vihar, Ghaziabad. The project is under construction and will take some time to be get completed. Therefore, it is important for Prateek Group to keep their sales high and ensure that fund flow in the group is constantly maintained.
Overall both the projects i.e Godrej Palm Retreat and Prateek Canary are good for end users. They don't have much to offer to investors or mid way quitters. If Godrej comes with a price tag of Rs 6000/- per sq ft then Godrej will sell fast, if the price of Godrej is above Rs 6500/- per sq ft then Prateek Canary should be the first choice. Prateek in turn is keeping their initial price tag below Rs 5000/- psf, this will be a big plus for them as people do understand that "Money saved is money earner". It is recommend that one should go and have a look at Prateek Ediffice to understand the quality that Prateek delivers, feedback from the existing customers will also be useful.
It is just a coincidence that both Godrej and Prateek are launched in sector 150 Noida at the same time, there are chances of other brands to come up in this sector, Omaxe is coming up with a project in sector 152, this will further increase the competition in the area. The existing projects of ATS, ACE, Samridhi, Mahagun, Eldeco etc are already offering good price to the buyers. With limited buyers of flats in sector 150 Noida, all the companies will have to be very innovative in their marketing and sales strategies to ensure that their sales targets are met.
Jewar airpot to bring further boost to commercial property in Noida and Greater Noida
Development is a word that is very often used by all politicians, however, we seldom see a fast track development in any of the cities in our country.We all have been hearing about the Jewar airport for last 20 years and every year lots of investors invest in Noida and Greater Noida with a hope that the airport work will start and their properties will appreciate. Now after many years of waiting there is some buzz that the airport work will finally start.The new airport will have the capacity to handle 30-50 million passengers per year.
Indira Gandhi International Airport handles around 63 million passengers every year and the capacity is expected to be increased to 109.33 million. It is a boost for the millennials planning to buy home in Noida- Greater Noida as the city has huge stock of unsold inventory of several builders in all segments .The Central government has made some policy changes like lower GST, tax sops for unsold inventories and incompleted projects .
The upcoming airport will support the growth of real estate sector in Noida. It has already attracted industrial investments in Noida and Greater Noida. Excited by the airport, real estate developers have launched new projects to meet the expected rise in residential real estate demand. Needless to say that the lot of people will start buying/renting houses in Noida. When population increases the commercial property starts appreciating at a good rate. Coming up of Jewar airport will be a bonus because even now the commercial property in Noida is giving very good returns in terms of rent and appreciation.
There are various types of commercial properties in Noida that includes both under-construction and ready to use properties. Most of the land sold by Noida authorities to the builders was on installment which was to be paid with interest, therefore, one should avoid buying under construction properties as most of the builders in this area have very heavy dues towards Noida authorities. If dues are not paid to Noida authority then the land for the project may get cancelled, this will result in long legal tussle between Noida authority, builder and buyers. However, ready to use commercial properties are in very high demand as it gives very high rent and capital appreciation. There is only 3.74% land that is allotted as commercial land in Noida, this percentage is very less in comparison to cities like Gurgaon and Delhi. With almost 2-3 Lakh houses being delivered in Noida and Greater Noida the demand of shops is increasing. This has bought a surge in investment in pre rented properties and under-construction/ready society shops. Under construction society shops are safe investment as the finance and efforts required to make such shops is very less. Thus at many places investors/brokers are buying under construction society shops in bulk to make big profit. Pre-rented commercial shops are giving rental returns of approximately 6% of the capital, if rented to banks the returns are 5% of the capital.
At present there are about 200-300 pre rented commercial shops (most of these shops are listed at www.Property.sale) on sale at Noida. Most preferred areas for buying shops is central Noida and Greater Noida west as in these areas the density of population is very high. At Greater Noida west the increase in the cost of the society shops is almost 300% in last 3 years as it is turning out to be one of the most densely populated area of Delhi-NCR. If one is adaptable and is willing to invest in unconventional property segments then the profits are very high.
One needs to do a thorough study of demand and supply to see where the property market stands and which segment to invest in. In Noida one can safely go for pre-rented properties for good profit and for very high profits one should go for under-construction society shops (in bulk).
Jewar Airport boosting the real estate market of Noida - Greater Noida
Development is a word that is very often used by all politicians, however, we seldom see a fast track development in any of the cities in our country.We all have been hearing about the Jewar airport for last 20 years and every year lots of investors invest in Noida and Greater Noida with a hope that the airport work will start and their properties will appreciate.
Now after many years of waiting there is some buzz that the airport work will finally start.The new airport will have the capacity to handle 30-50 million passengers per year. Indira Gandhi International Airport handles around 63 million passengers every year and the capacity is expected to be increased to 109.33 million.
A total of 1,000 hectares of land, which will be acquired under the first phase of airport development, will cost Rs 2,000 crore. And it will be connected to metro network also.Likely to be opened by March 2023 will also see development of an aviation hub in the vicinity. Multinational professional services firm Ernst & Young has already submitted a project report on the aviation hub to the Yamuna Expressway Industrial Development Authority (YEIDA). c can be seen in the picture.
the aviation hub will primarily cater to business and leisure travelers. For the sake of people who are not familiar with the area, the generic distance parameters are as follows. The way to Greater Noida is through Noida which is about 20 kms from India Gate, Noida to Greater Noida distance is about 26 kms, Jewar is further 35 kms from Greater Noida, so distance of Jewar from India Gate in Delhi is about 70 kms. Roads connecting Delhi-Noida, Noida-Greater Noida(Noida expressway) and Greater Noida - Jewar(Yammuna expressway) consists of 20 kms of city roads and 50 kms of express highway.
City roads are moderately congested and expressways are mostly congestion free. So, it will take about 90 minutes to reach Jewar from India Gate.Along with airport will come lot of supporting facilities like hotels, shopping complexes, office spaces, warehouses etc.The development seems to be a boost for the millennials planning to buy home in Noida- Greater Noida as the city has huge stock of unsold inventory of several builders of all segments .The Central government has made some policy changes like lower GST, tax sops for unsold inventories and incompleted projects .
The upcoming airport will support the growth of real estate sector in Noida. It hasalready attracted industrial investments in Noida and Greater Noida. Excited by the airport, real estate developers have launched new projects to meet the expected rise in residential real estate demand. Needless to say that the lot of people will start buying/renting houses in Noida.
Commercial property in Noida region and impact of upcoming Jewar airport
Development is a word that is very often used by all politicians, however, we seldom see a fast track development in any of the cities in our country.
We all have been hearing about the Jewar airport for last 20 years and every year lots of investors invest in Noida and Greater Noida with a hope that the
airport work will start and their properties will appreciate. Now after many years of waiting there is some buzz that the airport work will finally start.
For the sake of people who are not familiar with the area, the generic distance parameters are as follows. The way to Greater Noida is through Noida which is
about 20 kms from India Gate, Noida to Greater Noida distance is about 26 kms, Jewar is further 35 kms from Greater Noida, so distance of Jewar from India Gate in
Delhi is about 70 kms. Roads connecting Delhi-Noida, Noida-Greater Noida(Noida expressway) and Greater Noida - Jewar(Yammuna expressway) consists of 20 kms of city
roads and 50 kms of express highway. City roads are moderately congested and expressways are mostly congestion free. So, it will take about 90 minutes to reach Jewar from
India Gate.
There are various types of commercial properties in Noida that includes both under-cosntruction and ready to use properties. Most of the land
sold by Noida authorities to the builders was on installment which was to be paid with interest, therefore, one should avoid buying undercosntruction
properties as most of the builders in this area have very heavy dues towards Noida authorities. If dues are not paid to Noida authrities then the
land for the project may get cancelled, this will result in long legal tussel between Noida authority, builder and buyers.
However, ready to use commercial propertiea are in very high demand as it gives very high rent and capital appreciation.
There is only 3.74% land that is alloted as commercial land in Noida, this percentage is very less in comparison to cities like Gurgaon and Delhi. With
almost 2-3 lakh houses being delivered in Noida and Greater Noida the demand of shops is increasing. This has bought a surge in investment in pre rented
properties and under-construction/ready society shops. Under construction society shops are safe investment as the finance and efforts required to make such shops is
very less. Thus at many places investors/brokers are buying under cosntruction society shops in bulk to make big profit.
Pre-rented commercial shops are giving rental returns of approximately 6% of the capital, if rented to banks the returns are 5% of the capital. At present there are about
200-300 pre rented commercial shops on sale at Noida. Most preffered areas for buying shops is central Noida and Greater Noida west as in these areas the density
of population is very high. At Greater Noida west the increase in the cost of the society shops is almost 300% in last 3 years as it is turning out to be one of the
most densely populated area of Delhi-NCR.
Other options that are giving very good results are industrial plots in Noida, this is mostly because the connectivity of Noida to rest of India is very good and is
steadily improving, opening of Eastern periphery expressway has given a mojor boost to the industrial plots, ceiling of illegal commercial property in Delhi has
also forced lot of people to move towards Noida. IT&ITES plots have very high potential for capital appreciation and rentals. One can buy hotel / commercial / office
land on Yammuna Expessway to take advantage of upcoming Jewar airport.
If one is adaptable and is willing to invest in unconventional property segments then the profits are very high. One needs to do a thorough study of
demand and supply to see where the property market stands and which segment to invest in. In Noida one can safely go for pre-rented properties for
good profit and for very high profits one should go for under-cosntruction society shops (in bulk).