FOREWORD Its been a topsy-turvy ride for the real estate sector in 2013. Towards the end of 2013, some policy initiatives were taken by the government to lift the mood of the market. The Reserve Bank of India made a bold move to keep the key rates unchanged. Earlier in the year, the new Land Acquisition Act and the proposed Real Estate Regulatory Bill became two major government initiatives that made the industry realise that it was finally on policy radars. Industry feels that these two Bills would go a long way in making the sector more efficient, transparent and responsible. Going into 2014, developers are hoping for better tidings and a reversal of the economic slowdown. All eyes are set on the general elections, to be held in the middle of the year, with a feeling that this event would bring positive energy into the market and property sales would pick up post elections. The real estate market is clearly searching for direction. With a view to bring some clarity on this and to shed insight on the year that was, Magicbricks brings to you “Opinions’ – a collection of views, from the eyes of the industry, across the top eight cities – Delhi NCR, Mumbai, Bangalore, Pune, Hyderabad, Chennai, Kolkata and Ahmedabad. Through its various publications Magicbricks has been providing insights into real estate market performance and trends. Where the Housing Sentiment Index (HSI) report gauges the buyers’ mood, PropIndex provides statistical data pertaining to residential property markets of eleven cities. All of these reports, read alongside with ‘Opinions’, should offer a ringside view of market trends to our users. Go ahead and read to know what the industry’s experts tell you about the real estate market in 2014. Wishing a happy and successful New Year to our readers! Sudhir Pai Business Head, Magicbricks.com [email protected] DELHI/NCR RK Arora Having delivered more than Chairman & MD 33 million sq ft of residential and Supertech Ltd commercial space, Supertech Ltd has a major presence in cities such as Noida, Gurgaon, Ghaziabad and Bangalore. RK Arora, chairman & managing director, Supertech Ltd says that owing to infrastructure upgrades announced by the UP government, Noida realty market will continue to grow in 2014. Excerpts from the interview: ‘Infrastructure upgrades to activate Noida market’ What are your expectations from Noida's Greater Noida West will also be in the real estate market in the year 2014? limelight for progressive growth of Noida has experienced a period of residential and commercial real estate. unprecedented growth over the last few Great infrastructure, good road network years, which is expected to continue in and metro connectivity are the prime future also. It has emerged as a well- reasons that have enticed the buyers and developed micro market having substantial investors to this area. office and retail space, with deepening What will be the impact of the upcoming commercial activity in various sectors. general elections on the real estate Rapid commercial development has led to sector in Noida? a spillover of housing growth in and Certainly, there will be a temporary around the region. Also, benefitting from setback as the industry will face labour metro extension, expressways, wider shortage, putting more stress on the highways and release of land parcels, developers as well as buyers. After the Noida promises to be a great residential recent elections in four states, the sales destination in this year. have started improving. Which areas are expected to see We are hopeful that the same will repeat in maximum real estate development in the forthcoming general elections also and 2014? Why? once a new government is formed, the There has been a lot of development market is expected to improve significantly. across various sectors in Noida, Which locations in the city witnessed witnessing healthy absorption trends. maximum launches in year 2013? Why? Yamuna Expressway is becoming a real estate hub. The projects in the area have Owing to the presence of abundant land received an overwhelming response and parcels and competitive affordability, the fact that land prices are still low as project launches were concentrated in compared to Noida and Greater Noida Greater Noida West and Yamuna makes it a perfect location for investment. Expressway in comparison to prime to know more please visit: content.magicbricks.com 01 locations of Noida where land is not only Yamuna Expressway and River Crest in scarce and but costly as well. SIDCUL Rudrapur. Any infrastructural development that had Apart from this, we gave possession in a positive impact on the real estate Supertech Livingston - Ghaziabad, sector in the city in 2013? 34 Pavilion – Noida, Palm Greens/Meerut Sports City - Meerut and Czar Suites – Many infrastructural developments took Greater Noida. place during the year but the biggest development was the announcement of What includes your wish list for the real 12 projects worth Rs 3,337 crore by the estate sector in 2014? Uttar Pradesh Government to develop The Government agencies should settle the infrastructure across the state. The projects issue of farmers in Noida to ensure encompass Noida, Greater Noida and the smooth implementation of real estate Yamuna Expressway. Also, the proposal of projects in the area. a new metro rail network between Noida and Greater Noida will further boost the Also, the real estate sector should be given realty market in the area. the status of ‘infrastructure’ by the Central Government to avail funds from authorised Did you launch or give possesion of any sources. In addition, clarity on policies projects in 2013? concerning Special Economic Zones We launched residential projects Araville (SEZs), land acquisitions and certain taxes and 48 Canvas in Gurgaon, Albaria and and single window clearance are also King Towers in Greater Noida (West), Golf important to fasten the approval process Village, Disney Inspired Fable Castle in for upcoming projects. Yamuna Expressway and Greater Noida West are two areas in Delhi NCR that offer high potential for real estate development in the year 2014. POLICY PERSPECTIVE Mixed-land use policy a boon for developers, residents in Noida In the last week of December 2013, Noida Authority approved mixed land-use policy in the Noida Master Plan-2021, paving the way for construction of offices, retail shops, eateries and entertainment outlets in specific areas in industrial and institutional sectors. This policy will benefit MNCs, BPOs, IT and ITeS firms and other corporate houses, enabling them to accommodate their employees temporarily. With this policy, the government will allow residential facilities in commercial and institutional areas, to facilitate optimum utilisation of land and also to contain the requirement of transport facilities to places of work. The mixed land use policy is also expected to affect the residents of the area. Those residents having plots or built-up houses beside roads of approximately 24 metres and above in the residential areas will be allowed to construct guesthouses on a limited area. Source: The Times of India to know more please visit: content.magicbricks.com 02 DELHI/NCR Pradeep Jain chairman Parsvnath Developers Ltd ‘Regulatory Bill and REITs strengthen real estate sentiments’ Real estate is one sector that is completely elections. Though, I am confident that with driven by market sentiments. In the last the reforms proposed by the Union 6-7 months, demand in the market has Government over FDI and Retail, the real revived. Industry also saw some new estate sector is going to witness fairly launches. Government agencies and transparent and shiny days in the year authorities also came out with some 2014. This can be seen with many new favorable steps such as the Regulatory Bill launches in affordable and mid premium and REITs, which has further strengthened segments in areas, such as Greater Noida, sentiments across the board. Sohna Road, New Faridabad, Manesar and Going forward, the trend is expected to Dharuhera. Commercial space will also continue for another 4-5 months. However, witness a boom with the expansion of the it will be interesting to see how the real Delhi Metro in NCR. Overall, the market is estate market reacts post the general expected to see an uptrend in terms of demand and supply. to know more please visit: content.magicbricks.com 03 DELHI/NCR Lotus Greens, one of the emerging P Sahel vice chairman developers in Delhi, set foot in the real Lotus Greens estate market in 2013 with over 500 acre of prime land bank. P Sahel, vice chairman of the group says that in the year 2014, Delhi will continue to be the largest real estate market in India with almost 40 per cent share in new residential launches. Excerpts from the interview: ‘Delhi will continue as the largest real estate market in India in 2014’ What are your expectations from Delhi’s We will be launching our first project in real estate market in 2014? January 2014 in Sector 89, Gurgaon. Delhi NCR real estate market is expected to We selected the location because of the see more traction in this year. The overall growth potential. It is well connected with economic scenario in the country is NH-8 by a 75 metre road and will also be expected to improve in 2014. As per an connected to a 135 metre multi-utility Asian Development Bank (ADB) report, the corridor. Also, Dwarka Expressway is just country’s GDP is expected to increase to five minutes away from the project. 5.7 per cent from the present 4.7 per cent. What was the volume of sales and stock The interest rates are also expected to in the year 2013 vis-à-vis the last year? come down in 2014, which in turn will spur real estate demand.