The promise of a strong recovery for the residential market: 2013

Has the thought of owning a home, been dinner table fodder for years? Incessant cafeteria chatter or off the cuff remarks, about a dream home still being a distant dream?

Well! 2013 seems to be the game changer for the desi home owner and India to witness, a strong recovery on the residential real estate.

The optimistic outcomes via the government’s instigated policies on Real Estate Regulation, have strongly been recommended and implemented in giving the realty sector, industrial status -which is truly commendable.

With some price discounting and lower interest and mortgage rates futher down by (25-75bps) all thanks to the RBI, the pace of new launches have picked up, across key markets and with this trend most likely to run successfully and sustain, well into the next few quarters will lead to sharp recovery in volumes coming off a very low base.

JP Morgan believes this trend will allow an easier system of liquidity, with the expected cuts in policy rates ahead, further emphasizing discounts, rate cuts, lower unit sizes that are a sure clincher for affordability levels going high into 2013.

Knight Frank India’s, shared perspective on the performance and future of the residential market share across the 6 major metros offers some valuable insights.

Delhi NCR: A distinct supply increase from new sectors opening in Gurgaon, Noida and Greater Noida continue to lead the market, while a controlled supply check of the quantum of unsold inventory will make and keep the NCR market stable.

Mumbai: Mumbai’s phenomenal property price hikes and downward diving sales volumes, clubbed by a stagnant job scenario have affected sales momentum adversely. This muted account, will increase shares around its peripheral markets.

Bengaluru: A steady supply coupled by stable absorption continues to lead the overall residential market. Being an end user driven market, Bengaluru ensures a healthy growth for 2013.

Pune: Drawing the IT/ITeS with the manufacturing sector and a host of NRIs, Pune continues to gain maximum traction in the residential space, going forward a marginal drop in new launches could stagnate prices, as supply overhang decreases. Pune still boast of luxury budget homes as something special.

Hyderabad & Chennai: IT/ITeS driven residential demands are expected to stabilize in both cities, with absorption to be well maintained with maximum traction seen in West Chennai & West Hyderabad. Both continue to grow exponentially.

The Silver lining for those who missed the boat last year, both developers & consumers, 2013 starts with a fresh beginning with something for everyone and offers a window of opportunity for those anxious to move into their dream home.

SARE Homes launches The Grand in Sec 92, Gurgaon

We have been known to provide quality community housing at strategic locations in India and are now all set to offer a grand 5-star lifestyle with the launch of 'The Grand' in Sector 92, Gurgaon.

Developed as part of the newest phase of its mature 65-acre integrated township SARE Crescent ParC, The Grand consists of 23-floors of elegance in the form of 3-&-4 BHK air-conditioned apartments, with opulent lobbies, concierge services and grand terrace balconies that are perfect for hosting quintessential parties.

Available in sizes ranging between 1,853 and 2,280 sq. ft, all apartments at The Grand are centrally air-conditioned and equipped with sophisticated individual zone-control (VRV System). These apartments are priced in the range of Rs 97 lakh – 1.19 crore.

Step into the world class amenities at The Grand, which offers an 18,000 sq. ft. 5-star luxury lobby, with two 23-storey high atriums, elegant reception areas with billiards tables, landscaped sit-outs, a coffee shop and several other thoughtful conveniences including kids entertainment options.

Residents can unwind in the serenity of The Grand’s 25,000 sq. ft. rooftop terrace which offers facilities including a relaxation deck, jogging track, herbal garden, star- gazing observatory and meditation centre.

While the basic sale price of these apartments is Rs 5,650 per sq ft, we are offering an inaugural discount of Rs 400 per sq ft. You can also look forward to a milestone-linked payment arrangement at The Grand, that's an indication of our commitment to strictly adhere to delivery deadlines.

As per the milestone linked payment plan, you will require to pay only 20 per cent of the sale price at the time of booking apartments. This will amount to Rs 12.5 lakh for a 3- BHK apartment and Rs 15 lakh for a 4-BHK apartment.

Mr David Walker, Executive Director, SARE Homes assures, “At SARE, we are fully focussed on developing homes that offer our customers a distinctive lifestyle and make their dreams into reality when they start living here. The homes are designed to match the lifestyle needs of modern home buyers, provide them with the latest conveniences and amenities, by which they can truly experience a luxurious style of living.”

One of the most exclusive features of The Grand is that it will be home to Gurgaon’s largest and finest Residential Club, spanning 35,000 sq. ft. It will offer you luxuries such as a party/Banquet Hall and Party Lawn and a pre-function area as well as stellar amenities - creche for resident’s children, a cafeteria on the ground floor, a restobar, cards room and library on the first floor, a state-of-the-art gymnasium, indoor heated swimming pool, outdoor swimming pool with kids pool, squash court, billiards & table tennis room, 2 outdoor badminton courts, an outdoor lawn tennis court, a skating rink and an amphitheater.

Strategically located at the Gurgaon growth corridor, the township is a part of the NCR - home to multinational IT/ITES, automobile and manufacturing companies. You will enjoy superior connectivity to Delhi via the Expressway, Metro, Rail and Bus services. The Grand will adjoin the proposed mega SEZ in NCR and you will have convenient access to an arterial 60-meter wide road. What's more, you will be just a 40-minute drive from the IGI Airport. The project is also situated at close proximity to the Dwarka and KMP Expressways as well as industrial hubs such as IMT, Manesar.

The Grand will present you a global lifestyle consisting of uninterrupted power supply, 24x7 multi-level security, wide and well lit inroads, landscaped paths, shopping, educational and medical facilities and several other modern amenities for your ultimate satisfaction.

Our Take on Budget 2013

The allocation of Rs 2000 crore for housing in the urban areas appears to be on the lower side considering that the estimated shortage of housing units is placed at more than 18 million units.

According to David Walker, Executive Director, SARE Home, "The announcement of National Housing Bank (NHB) setting up a Urban Housing Fund, tax sops for first housing loan of Rs 25 lakh and provision of an additional Rs 1 lakh rebate in addition to the existing Rs 1.5 lakh rebate will help to revive the demand for housing stock.

The allocation of Rs 2000 crore for housing in the urban areas appears to be on the lower side considering that the estimated shortage of housing units is placed at more than 18 million units. Provision of Rs 6,000 crores in the rural areas would certainly result in more permanent constructions.

The budget move to levy 1% TDS on properties above Rs 50 lakh would prove to be a major burden for both developers as well as customers especially in the metropolitan cities like Delhi and Mumbai and their outskirts as even small apartments in these areas cost more. High interest rates and soaring land prices have been the major resistance factors in reviving the demand for housing stock and the budget could have announced a few long term steps aimed at improving the supply of land and reducing interest rates."