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Team iPropUnited

Team iPropUnited
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Private Equity Act As A Saviour For Providing Funds To Builders

Private Equity Realty segment in India is witnessing new reforms which has strengthened its backbone in a way and enhanced the investor’s interest with rise in transparency of its operations. It has been recently exposed that 75% of the India’s real estate sector’s funds are propelled by Private Equity (PE).

This share was merely at 25% in 2010 which has observed a three-fold rise in last 7 years. Funding from Non Banking financial companies (NBFC), capital markets and PE together constitutes 40% of the total funds inflow in the Realty sector in 2016. This total investment by these players was around $3.8 billion in 2011 which arose to $5.4 billion in 2016. These facts are revealed in a report by Knight Frank India.

The greater participation by the PE is expected with a view of market forces and regulatory forces within segment. Even Banks accounted anywhere between 50%-57% till 2014 which has been slumped down to 26% by 2016. A major chunk of foreign investment is attracted in real estate sector in India after creation of public markets in the form of REITs (Real Estate Investment Trust) for commercial assets and selling off non-performing assets by banks.

Since 2012, debt or structured debt financing is largely favoured by these investors and account for 33% of such transactions. But now PEs are moving towards greater equity ownership. With the fall in interest rates, debtors are in a phase of avoiding high-cost debts; hence, the returns on these debts are diminishing. In fact pure debt opportunities are not available be established brands thus paving a way for PE funds. In order to achieve higher returns, pure-equity or quasi-equity positions are the way out.

Evaluation of the security values was dependent on the cash flows and capital rates, in order to determine the secured debt positions. Now this trend is gearing up for a reverse where PE players will revisit the drawing boards to determine their participation in realty sector.

As large developers are seeking quasi-equity funding, small developers still prefer structured debt as first choice. The current real estate market scenario is not just challenging but opportunistic as well. Just 1% of total private equity participation was witnessed at entity level in 2016 which has been slashed down drastically compared to 2014 and 2015 where level of entity participation was 16% and 30% respectively.

From last two years, even the bank credit has observed a sharp decline for real estate sector. The reduction of bank credit is on account of mounting losses, rising non-performing assets and higher provisioning. In 2010 Initial Public Offering (IPO) was one of the preferred channel of fund raising which is also kicked-off gradually due to poor market credibility of the companies operating in real estate industry.

Green Activists Raise Voice Against The Gurgaon Master Plan 2031

 Gurgaon Master planeGreen activists in Gurgaon have moved National Green Tribunal (NGT) to act against the Gurgaon Master Plan 2031. This is because Gurugram Master Plan 2031 will be carrying on construction of real estate above some natural drains. The green activists want the immediate cancellation of licenses along with the modifying the land use which was decided as per the plan.

The green activists in Gurgaon have told that encroachment can be witnessed over the ravine of Kost at Gwalpahari in Gurgaon. The encroachments are even over the tributaries of Kost and other ravines in Gurgaon.

As per the petition given by the green activists in Gurgaon, if there is any encroachment on natural drains and if real estate development is approved over them, then it will violate the Environment (Protection) Act, 1986 , Water (prevention and control of pollution) Act, 1974 and various other acts by NGT.

Gurgaon Master Plan 2031
A new master plan named as Gurgaon Master Plan 2031 is finally out which is focusing towards the conversion of SEZ designated zones to residential areas. This will help in creating more spaces for residential use making it the residential-heart of the city.

About NGT?
National Green Tribunal Act, 2010, is an act issued by the Parliament which handles problems and issues related to the environment by creating a special tribunal to solve them.

It complements the provision of article 21 of the Indian constitution, according to which, every citizen has the right to a healthy environment.

10 Feng Shui Tips For A Happy Home

    TOPFeng Shui is all about the energies present in everything around us. To get the best out of those energies we look up to feng shui tips. Have you ever thought what actually makes you happy?

    It is actually the vibe of things around you which affects your mood and ultimately your happiness. Feng shui tips for having a happy home and family will help you manage that vibe so that the happiness in home is not lost.

    So, here are some easy feng shui tips for a happy home –

    The Tibetan BellTIBETAN BELLEverybody tries to be and think positive. But sometimes, maybe because of stress and tensions in life, people tend to think negatively. Therefore, it is very important to divert those thoughts back to positivity. And the best way to achieve that is by ringing the Tibetan bell in and around your house, every few days. This will give way to positive energies in inside your house!

    The EntranceBeing the first thing that everybody notices, the entrance of your house has to be beautiful, attractive and refreshing. If the entrance is dull and demotivating, it kills the entire vibe. Therefore, you can hang a beautiful painting or any kind of art-work, put a fountain, or anything which adds liveliness to the entrance.

    Three legged toadThree legged toadNo matter how much people deny accepting it, money does play an important role, be it in a direct or indirect way, in an individual’s happiness. It may not be able to solve all your problems, but it surely does help! And that is why the three legged toad, which is a symbol of wealth and prosperity, should be kept in such a way that is faces the main door. This greatly helps in your luck of wealth.

    Babies really are God’s gift!Babies really are God’s gift!If you have shifted to a new house and don’t have enough time to follow the tips for happy home, this is the easiest way to check out the positive energies. Take a new born baby with you to your new house and just check whether he cries without any reason or not. If the baby starts crying, then that’s a signal for the new house carrying some negative energies.

    But, if the baby is happy and laughing, then you can be assured of the place being positively protected.

    The Unwanted GuestsThe Unwanted GuestsEverybody has some people in their lives, with whom you don’t vibe well with. Or maybe there are some people who you feel bring some kind of negative energies in your life. And such people visiting your home can instantly deteriorate your mood. Ignoring such people bluntly would definitely not look and can even make you feel guilty. But don’t worry, as we have an intelligent and easy tip for a happy home. When these guests visit your place, make them sit on such seats that their back faces the entrance. This easy trick with almost no efforts will make these people leave your home soon!

    Name plate outside your homeName plate outside your home 1We have seem almost everybody having their name plates hanged outside their homes and the reason seems obvious, simply to let people who visit your home know that you live there. But it has deeper reasons attached to it. According to feng shui, the name plate gives way to all the opportunities to your home and also the opportunities do not even lose their way! So if you don’t have a name plate yet, work towards it soon!

    Remove the clutterclutterThe most common and followed tip for having a happy home and family is to follow orderliness at your home. Having cluttered homes can disturb your peace of life in ways you never thought of. Unnecessary things and trash should be immediately removed, as they bring futile confusions in life. Stuff that validates your life should be kept and used.

    PlacementsPlacementsAccording to feng shui, everything has a correct placement which brings out the best energy from it possible. Some most important of them are –

    • You bed should NOT be placed in such a way that when you are able to see your reflection in the bedroom mirror. Place it in a way that it does not face the mirror on the opposite.
    • In the kitchen, the sinks should be place in the opposite direction of the gas stove.
    • If talking about the doors of your house, they should open in the inwards direction to welcome the QI energy.
    • A wind chime should never be hanged over the bed because there are chances that it may have attached some negativity during the day.
    • If possible, it should be made sure that main door or the window is not facing any tree as it can bring health conditions to the family.

    The fish and waterTOPFlowing water in the living space symbolizes increasing wealth while fish indicates abundance. That is the reason people keep aquariums in their homes as they not only bring out the individual benefits of fish and water but also their combined benefits are peace and positive vibes. But is has to be ensure that the water in the aquarium is regularly cleaned. They can be kept individually also in the form of fountains or fish figurines.

    FlooringFlooringIf you find any part of the floor broken or damaged, then it has to be repaired immediately. This is because a broken tile or any kind of broken flooring disturbs the relationships of the family members. If maybe, repairing is not possible, then the damaged part should be covered with something like a carpet or a rug.

    PMAY Affordable Housing Scheme To Add 1.17 Lakh More Houses To The Project

    affordable housingConstruction of 117814 more affordable houses under Pradhan Mantri Aawas Yojana (PMAY) has been approved by the government. Affordable houses under PMAY will cover six states with an investment of Rs.5573 crore.

    With this increased number, the total number of affordable homes assigned under PMAY has now become 1760507 with an investment of Rs.96018.

    Union minister, M Venkaiah Naidu has instructed the officials to ensure fast constructions of these affordable homes under Pradhan Mantri Aawas Yojana.

    31424 houses were assigned to Karnataka comprising in 234 cities and towns. The amount of project cost which was approved for this was Rs.1222 crore and Rs.518 crore as central assistance. The Beneficiary Led Construction component (BLC) has 30427 houses approved under it, while affordable housing in partnership component has 1177 houses approved under it. Combining these takes the total number of houses assigned under PMAY for the state to 146466.

    Similarly, 11480 houses were assigned to Kerala comprising 19 cities, under the BLC component. The amount of project cost was RS.344 crore with the central assistance being Rs.170 crore. Therefore, the total number of houses assigned to Kerala under PMAY is now 28236.

    Other states like Madhya Pradesh, Bihar, Jharkhand, Odisha have been sanctioned 27714, 25221, 20099, 2115 houses respectively.

    Middleclass Homebuyers To Benefit From Subsidy On Housing Loans Under PMAY

     subsidy on housing loans under PMAYTalking clearly about the government’s Credit Linked Subsidy Scheme (CLSS) for middleclass homebuyers, Union Minister, Venkaiah Naidu has finally released the guidelines to that the scheme can be executed.

    The move of government in the form of Credit Linked Subsidy Scheme will hopefully decrease the Equated Monthly Installments (EMI) by around Rs.2000 for middleclass homebuyers.

    Under Pradhan Mantri Aawas Yojana (PMAY), all middleclass homebuyers who have an annual income in the range of Rs.6 lakhs to Rs.18 lakh will be eligible to get interest subsidy on loans under PMAY.

    Interest subsidy on home loans under PMAY for middleclass homebuyers to construct or purchase homes will be provided under the following basis –

    • 90 square meters of carpet area for those having an annual income up to Rs.12 lakh 
    • 110 square meters of carpet area for those having an annual income up to Rs.18 lakh

    Middleclass homebuyers will also be exempted from paying any kind processing fees to Housing Finance Companies (HFCs) or banks.

    The best part is that our Prime Minister is not only concentrating on low-income group of the society, but also has an equal focus on middleclass group. The reason being that they are a very significant part of our economy and their dream of having an own house, which is a very basic need, must be supported.

    Prime minister had recently announced the extended scope of CLSSA to middleclass homebuyers also. Interest subsidy on housing loans of up to Rs.9 lakh will be 4% for those with an income of Rs.12 lakh per annum. Similarly, subsidy on housing loans of up to Rs.12 lakh will be 3% for those with an income of Rs.18 lakh per annum.

    The scheme of providing interest subsidy loans will be applicable for just one year, that is, 2017. Rs.1000 crore has been assigned in the union budget for this scheme.
    There are chances of this scheme getting extended for middleclass homebuyers, which would depend on response and performance.

    The tenure chosen by the homebuyer or the maximum of 20 years provided by the government, whichever is lower, will be applicable.

    This government’s Credit Linked Subsidy Scheme will give priority to women and that too more preference being given to single working women, widows and people from SCs and STs.
    A Memorandum of Understanding (MoU) has been signed by National Housing Bank (NHB) with the following, for the execution of this scheme of subsidy on housing loans –

    • 15 banks
    • 45 HFCs
    • 2 regional rural banks
    • 4 small finance banks 3 non-banking finance companies
    • 1 cooperative bank

    10 Feng Shui Items To Bring Wealth And Luck To Your Home

      feng shui

      Feng Shui is simply a way of attracting positive energy (known as chi) by placing objects in a certain order. Feng shui is also known to create energies around you which help you in your luck of wealth. To achieve that, there are certain feng shui items for wealth for your home. These cheap feng shui items are not guaranteed to bring you wealth, but will definitely give you the required support to achieve wealth.

      So here we have some of the best feng shui items for wealth for you –

      Laughing Buddhalaughing buddha for wealthIt is one of the most common and cheap feng shui items known to us. And for bringing wealth, laughing Buddha made up of bronze is kept in houses. In living spaces, it should be kept near the entrance or a place which is direct to the entrance door. It is also very beneficial to keep it on your work desk as it greatly helps in your career and relieving stress.

      Chinese God of Wealth –Tsai Shen Yeh chinese god of wealthOne of the most followed and popular gods of wealth, he is symbolized by sitting on the tiger. This showcases the great amount of power and control he has. Displaying the Chinese god as a feng shui item for wealth is bound to help you in the same.

      Feng Shui coins feng shui coinsAlso known as old Chinese coins, feng shui coins are an old and powerful way for attracting wealth by feng shui. The shapes of these coins (square and circle) symbolize heaven and earth. To use these coins what you have to do is tie three coins together with a red thread. Then hang these tied coins inside the entrance of your house to display that you already have wealth!

      Feng Shui Three Legs Frogfeng shui frogsThree legs frog is considered to be the luckiest feng shui item for wealth. This creature has three legs and is drowning in money as it sitting on a bed with coins and ingots, and also has three coins in its mouth. The three leg frog is known to attract gold in the house when it is placed diagonally across the front door in a low position.
      For best results, keep nine of these frogs in your house.

      Pi Yao PiYaoBeing one of the most popular feng shui items for money, Pi Yao is also known as the gambler’s god in feng shui. It also used as an item for protection of wealth. If you want to attract floating kind of wealth like stock markets, gambling etc. then Pi Yao is the best feng shui item!

      TIP – Buy a lottery ticket and keep it under Pi Yao and maybe, wonders can happen!!

      Turtle Dragonturtle dragonTurtle dragon is the one of the oldest feng shui items for wealth in the history. It has the combination of powers of both the dragon and the turtle. Keeping this in your house brings various benefits like increased income, career growth, business success etc.

      Chinese 3 star gods (3 wise men Fuk, Luk and Sau)chinese 3star godsPopularly known as the 3 wise men (Fuk, Luk and Sau), Chinese 3 star gods are one of the legendary gods and they are kept by people all over the world to bring a growth in happiness, health and wealth.

      They have a great popularity and importance as they are a symbol of everything that is required for a person to be happy. At least one set of Chinese 3 star gods should be kept in the house to bring all the luck.

      Gold Ingotsgold ingotsGold has always been a symbol of wealth and prosperity. Gold ingots are a feng shui item for wealth, which have been used traditionally over the years. They have a boat shape and are ancient Chinese currency. The best way to get the positive results of gold ingots is to keep them in front of laughing Buddha or turtle dragon.

      Dragon Head Sailing Shipdragon head sailing shipSailing ship is considered to bring wealth from the wind and water. And that is the reason why many businessmen keep this feng shui item for money in front of their offices and stores. The placement of this ship should be in such a way that it is fact to face with the entrance of the place where it is kept. This symbolizes that ship is going inside.

      Fish Figurinefish figurine According to feng shui, fish is a symbol of profusion. Similarly, flowing water also attracts wealth. And a combination of both, which is aquarium, is kept by people in their homes. But sometimes, it becomes difficult to maintain the aquarium and then comes fish figurines. And therefore, many people keep fish figurines instead of live fish to attract wealth.

      PMAY Subsidy Scheme To Offer Discounts On New Property

      PMAYThe granting of infrastructure status of affordable housing segment is going to not only increase the demand in the real estate sector but will also give a thrust in the housing loans.

      The benefits of the PMAY (Pradhan Mantri Awas Yojna) Scheme initiatives which the government has taken recently will be more for the low income group than the middle income group. The affordable housing segment being improved will act as a big factor in increasing the demand for housing. If the developers want to maintain the demand they need to innovative like offering lower ticket sizes in housing units. Housing Finance Companies (HFC) need to lay their concentration on loans of sub Rs.20 lakh.

      The credit-linked subsidy scheme (CLSS), under one of the benefits of Prime Minister Aawas

      Yojana (PMAY), is going to help in decreasing the returns on home or will offer discount of 2-10% on purchase of new property.

      CLSS under the benefits of PMAY cannot act as a one-man army for achieving housing for all. Other factors like employment opportunities or improvement in affordable housing will major impact on housing for all.

      Infrastructure status of affordable housing will play a key role in the vision of housing for all by 2022. Known as Modi’s key project, PMAY has been pushed by the government to provide 20 million houses across the country by 2020. The main aim of the government will be to provide affordable housing in rural areas.

      List Of Delayed Residential Projects To Be Prepared By Home Buyers’ Association

      Residential ProjectsFlat Buyers’ Association of India is now engaged with a new task of finding and preparing a list of all delayed residential projects across the country. Before this, flat buyers’ association had played a significant part in notifying the real estate regulation law. The apex body of real estate, CREDAI (Confederation of Real Estate Developers’ Associations of India), had demanded the exclusion of the projects that were still going on from the scope of the regulation. Therefore, the flat buyers’ association is now making a list of all the extensively delayed residential projects in India.

      The members of the association want to break the myths about real estate market that are being viral. According to the association, these myths include-

      • Putting the blame on few unreliable builders who bring bad name to the entire real estate sector. Almost all the builders claim their buyers are satisfied.
      • New projects should be under the ambit of the regulation and not the old ones.
      • Issue of delayed delivery of residential properties is not just confined to big cities like Delhi or Mumbai, but is prevailing in almost every part of India.

      Earlier this month, union minister M Venkaiah Naidu had told the developers to simply complete what they have promised to the homebuyers. They do not have to do anything more than what they have adhered to the advertisement in order to get the government on their sides.

      The members of flat buyers’ association of India are trying to get in touch with almost all kinds of homebuyers across the country to get all the sufficient data so that they can contradict the influence that is being created by real estate market, as says a source.

      Lower Rentals For Office Space Makes Noida A Preferred Region Over Gurugram

      Office SpaceNoida and Greater Noida are constantly witnessing an increase in office spaces even with severe issues of power supply and connectivity.

      Twin cities – Noida and Greater Noida, seem to be becoming the preferred NCR amongst IT companies for their back-end operations as the Noida, Greater Noida office space rentals are much less than Gurugram (earlier Gurgaon).

      According to the sources, there has been an increase in the Noida, Greater Noida office space rentals in the past two years with the rates being between Rs.50 and Rs.55 per square feet. This rate is around Rs.20 per square feet less than the office spaces in Gurgaon.

      USA based IT company, 3 Pillar Global has its offices in Noida which are likely to be expanded from 300 to 450 seats. This is because office spaces in Noida are convenient for them due to the low costs involved. They find talent along with sufficient offices spaces in Noida.

      Another customer-relation company, SaleszShark, had recently shifted their office to Noida from Gurugram because of the cheaper rentals in Noida in comparison to Gurugram. They have shifted corporate office to sector 132 in Noida and have overcome the connectivity issue by providing facilities of pick-up and drop from the metro station to the employees. They are experiencing a better experience in the Noida office space in comparison to Gurgaon.

      One more important reason for the shifting of offices in Noida and Greater Noida is the ample amount of supply of spaces which gives a tremendous scope to the companies to expand.

      During 2016, from October to December, the total absorption of office spaces in Noida was 4,50,000 square feet. In 2017, January-February alone, Noida office spaces have occupied 3,50,000 square feet of area.

      Even if the companies continue with their corporate offices in Gurgaon, they will expand to Noida, Greater Noida offices for the research and development sections.

      Employers find this the best alternative as the living cost along with talent cost is cheaper in Noida.

      Central Government To Inspect Big Budget Noida, Greater Noida, Yamuna E-Way Projects

      yamuna expresswayThe new chief minister of Uttar Pradesh, Yogi Adityanath has announced that all big-budget ongoing projects in Noida, Greater Noida and Yamuna Expressway will now be under Central Goverment’s inspection. CM is on the look-out for the details of infrastructure projects, civic works, functions and work structure of authorities of these NCRs.

      All the senior officials, as per the orders from the state government, arranged and prepared the details. These compiled details were sent to the UP industrial development department.
      The details were supposed to mention the year in which these authorities were set up and the aim with which these government bodies were set up.

      According to the officials, establishment of Noida took place in 1976 to set industrial units in Bulandshahr (then).

      Greater Noida and Yamuna Expressway industrial development authority (YEIDA) were set up in 1992 and 2002 respectively. Both were set up with a motive to boost industrialization.
      A meeting was held on Monday by the UP CM with all the principal secretaries. In the meeting, the CM was provided the details from the three authorities.

      The details provide covered ongoing projects such as the underpasses, fly-over bridges across Yamuna, metro and housing projects.

      According to the details mentioned, the metro link from Botanical Garden in Noida to Kalindi Kunj is all set to roll on tracks in May. The metro link from city center metro station to sector-62 Noida is likely to start in October.

      The details also included the budget of the infrastructure projects coming under the three authorities. The Noida authority mentioned that 200 plots for schools and 25000 housing plots have been allotted. 12000 flats have also been built by the Noida Authority for economically backward section of the society.

      The three authorities have also given details about their permanent as well as temporary employees involved in the projects in Noida, Greater Noida and Yamuna E-Way.

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