Vikas Rikhye, Real Estate Promoter and Blogger

In the recent past the Fast Growing Township of New Gurgaon has witnessed a
Massive growth in housing sector.

The well established real estate companies like DLF & Unitech have launched and delivered prestigious residential project. Comparatively new entrants like Bestech,Omaxe, Parsavnath Raheja & others got an opportunity to prove their competence.

All this as stated above “Township of New Gurgaon” came in to a light as a very
strong investment destination.

As it would have resulted, the investment wave in Gurgaon ,became stronger and stronger and the Secondary market shot up sky high. With all this , the basic participants in real estate game like Builders, Brokers & Investors found themselves in a Win - Win situation.

Yet there was another Important Segment of Actual-User, who had missed the boat due to unexpected increase in Real estate prices, was still awaiting an affordable housing solution.

The announcement of Master Plan 2021, gave a sigh of relief to this Important Segment of Actual-Users .But at same time it gave opportunity to many New Player to enter the real estate Game.

And now an interesting/ uninteresting era starts:

As many of The new Players started advertising launch of their new projects with luring advertisements & Broker incentives.

It has been observed by many real - estate experts that some of the projects falling in Master Plan 2021 are being launched ,where at present the basic infrastructure like roads, water, sever, provision for required Power etc. is missing.

While some of the Promoters are asking for 25% of the amount within in 45 days of booking & balance is construction linked . Even we feel every thing in fairness, yet, it raises following queries in mind:
• What is the reliability level of “Unheard of as Builders”
• Transparency level of commitments.
• Experience for delivering committed project .( for those who have not delivered any Project in the past )
• Inventor’s Risk coverage.

For a while let us be Optimist that in all the fairness the project is delivered , Yet another question mark nags the mind that will there be basic infrastructure like roads, water, sever, provision for required Power etc. where presently nothing is visible on the ground except open fields & in some cases abandoned uneven patches of land.

Will somebody guide me to clear my doubt as well of others who agree with as stated above.

Vikas Rikhye,Real Estate Blogger

As we are aware that quite a few real estate companies had launched their IPOs in 2007,but major share of the cake was taken by DLF ,who bagged over Rupees 9000 crores.

Now it seems to be turn of Emaar MGF Land, a JV between one of the world’s largest Dubai based real estate group & MGF Group from India.

It is understood that The Motor & Finance Limited (MGF) one of the oldest finance company of India was incorporated in 1930 under the leadership of Shri Ved Prakash Gupta, the founder chairman of the company and under his guidance MGF became a leading Finance company of the country.

While Emaar Properties, Dubai - based Public Joint stock enjoys the reputation of a very successful track record of growth. Emaar Properties had been the Recipient of Best Developer” award in the year2006 in UAE for 2nd consecutive year.

With joining hands together Emaar MGF have acquired land bank of over 12400 acres,Spread over 22cities in 16 states of India. The company is developing properties in Residential, Commercial & Hospitality sectors across India. They have their ongoing commercial projects in over eight major cities in India.In near future, they have identified to get into Healthcare , Education & Infrastructure project as well.

It is understood that Emaar MGF has got the approval from ” Securities and Exchange Board of India” (SEBI) to launch its Initial Public Offering (IPO) This IPO seems to be the 2nd largest IPO in the country as it is expected to raise over 6000 crores. With offloading over Ten crore shares in the market & the share price is expected to be between Rupees 500-600 per share.

Emaar-MGF after bringing largest FDI in Real estate and now with this IPO makes it one of the strongest Real estate companies in India.

Mr. Vikas Rikhye,Real Estate Blogger

Why invest in India ?

The liberalisation in FDI Policy where Foreign investors other than NRIs allowed to invest only in development of integrated townships and settlements either through a wholly owned subsidiary or through a joint venture company in India along with a local partner has made it Foreign investor friendly.

It is an amazing fact that India is the 4th largest economy, in terms of purchasing power parity and Tenth most industrialized economy moreover. Political stability and broad consensus on reforms and also liberal and transparent foreign investment regime has made it a strong investment destination.

A very well developed banking system and vibrant capital market, with National Stock Exchange being the third largest, and Bombay Stock Exchange the fifth largest in terms of number of trades and also a Strong and independent judicial system,brings the comfort level to all concerned.

A strong blend of scientific and technical manpower specially in IT sector ,where over 50000 IT professionals are added each year, has attracted over 255 Fortune 500 companies getting services resulting into a remarkable increase in number of BPOs & call centres.

The massive progress in development of infrastructure can be seen as:

• Over 13,000 Kms of Highways being developed.

• Major advances in telecommunications sector and sharp decline in telecommunications costs.

• For easy commuting Metro -network is on its expansion.

• With opening of Modernized and well equipped Hospitals the progress on health care is remarkably visible.

• Development of Ports ,Shipping upgradation ,operation of cruise terminal and Operation of Dry Port at Mumbai.

With some of the points covered as above, it seems to give an open invitation to Foreign Investors to participate in booming sectors of growth like Roads & express highways , Urban Infrastructure, Ports , Power projects , Telecommunications and many more with Opportunities at glore……..

Mr. Vikas Rikhye,Realtor and Real Estate Blogger

Will the Dreams really come true…………………….

The master plan 2021 has earmarked 58 new Sectors covering over 14500 hectares of land as Residential Zone which includes a very large segment for Malls and commercial space.

There is a wave of happiness & prosperity with the implementation of Gurgaon master Plan 2021 as the original land owners are the 1st beneficiaries to get the best prices for their land from private Builders & Promoters thus bringing them prosperity overnight resulting into Swanky Cars parked in place of cattle & cows.

The common man for a with a ray of hope is looking for a niche in this Master Plan to own a small dwelling unit for his dreams to come true.

The Private Builders can envisage a heavy windfall of profit arising out of land acquired by them at right moment and the right time, as they are already being offered more than 10 times of their purchase price by the New Players in the Market.

According to sources, Group housing projects with total area of more than 490 acres have been granted licenses & hundreds of Licences are awaiting approval ,where some of them have been issued letter of intent (LOI).The sources add that more than 600 licences are including commercial projects, are under consideration.

*Some of the private builders and promoters have already started booking Apartments with a Price Tag of 2300-4500 plus per sq.ft.( the hidden cost of Car Parking ,PLCs etc being extra. On visiting the sites , there are no encouraging signs of developing the Basic infrastructure .

The existing Township of Modern Gurgaon is suffering from acute shortage of Power Supply & lack of Basic infrastructure having Sky High prices beyond the reach of a common man.

A common man still hopes for a small dwelling unit for his dream to come true………?

Mr Vikas Rikhye,Real Estate Blogger

Gurgaon Progress/ Prosperity vs Common Man (The CM)

Someone has to monitor the progress/ growth of this New Township of Gurgaon in more balanced & Planned manner having Prime focus on the following:

• Housing : While Prominent Builders are competing with each other in offering Luxurious Villas & Apartments with a price tag ranging 50 lacs to 2.5 crores and above leaving no scope for a common man to even own a simple shelter, as the uncontrolled land prices are much beyond his means.

• Education: The most modern education systems are being introduced in best of institutes finding their place in Gurgaon, making Education a luring business but what is in store for a child who is studious but does not have resources.

• Health care :With appearance of well known expensive Hospitals & Medicity, remarkable progress is noticed , awaiting the Financial boom from “Medical Tourism”. Yet ,hundreds of poor patients are left to their fate for the want of resources.

• Local commuting/Transport: Speeding Swanky Cars reflect of an affluent culture prevailing all around, forgetting the basic need of a humble commuter who is the one of the pillars of today’s Glittering Gurgaon.

Time is warning us that we are not far away from the crucial stage of “Haves & Have-nots” ……………… which can be disastrous for the society.

Unitech Limited aiming to be Number-1 real estate developer is spreading its wings now to South India. I understand from some sources that very soon M/s Untitech Limited would be announcing its two Joint-venture deals in Chennai and Hyderabad .

The sources add that these JVs would have the main focus on Binny land near Perambur in north Chennai & Shamshadabad around Hyderabad. involving over 1,400 acres of prime land.

The sources also highlight the following:

• Unitech would shortly announce its 50:50 joint venture deal with serial entrepreneur Prasad V Potluri’s PVP Enterprises that owns around 1,300 acres of land bank in Hyderabad’s Shamshadabad region.

• In the next few weeks, Unitech may also unveil, a 55:45 joint venture deal for developing 8.8 million sq ft of residential property on the 70-acre Binny land near Perambur in north Chennai, owned by SSI

• It is believed that development on the Binny land alone involves construction of over 5,000 residential flats, besides retail and commercial space. Even at a reasonably price level of Rs 5,000 per sq ft, the sale proceeds of developing 8.8 million sq ft comes to around Rs 4,400 crore.

• It is understood that the environment clearance has been obtained for the project.

With the information perceived as stated above, “Adds a feather in the cap” of Unitech’s progressive approach towards becoming India’s Number One Real estate developer.

Mr Vikas Rikhye,Realtor and Real Estate Blogger

Mushrooming growth of shopping malls in Gurgaon creates a question mark in the mind about the negative future of the shopping malls in Gurgaon.

In NCR Gurgaon was one of few first Towns to witness the modern trend of Retail selling & Multiplex culture.

The excited youth and fashionable shopper found their destination at MGF Metropolitan & DLF City Centre ,While moderate & price conscious found their place in Big Bazar in Sahara Mall . Stylish day today shopping got attraction at Spencers and specialized fashion shopping found its place in Grand Mall.

DT and PVR Cinemas attracted people from all walks of life. While on one side one could see elite & hi fashion crowd at the same time one could also see escalator-shy rural crowd looking dazed at modern shopping glamour. Making it most happening place.These Malls were attracting crowds not only from Delhi & Noida but also from distant rural areas of Haryana.

While all this was happening a very few noticed that on this prominent MG Road only while one Mall project was abandoned by the builder and other three malls(under construction were put on slow speed for the lack of market Demand.

Not only on MG Road, but shirking market trend was also felt on Golf course Road &NH-8Where proposed shopping malls gave a deserted look.

On Sohna Road the scene is no different as beside one operational mall, where more than 50% shops are still to open. ( despite the fact that this mall has been so called operational for more than 15 months ). Yet another Marriage mall stand complete in isolation awaiting to be occupied.

And to my utter surprise I see still about seven more malls under construction under such a bleak future .

Mall fever is not yet over it is spreading to Rewar,Dharuhera Bhewadi and as remote places as Punahna etc