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RBI’s constant rates further instigates Demonetisation effect.

The entire nation is perplexed with the mystery of old and new currency and RBI still, decides to keep the rates undeterred in its fifth bi-monthly policy review for the year. This comes as a big blow for the real estate market which is in a desperate need of a rate cut as the market has taken a steep fall. This was the last policy review for the current calendar year, the first one took place before demonetisation era and the second review was presented by Dr. Urjit Patel. Real estate had high hopes with this policy review session as a repo rate deduction was witnessed last time, but the hopes got shattered with the RBI’s verdict. The secondary real estate market has taken a hard hit and the entire responsibility to keep the realty sector alive is on the primary market. A rate cut at this scenario would have been a great asset for the market to revive. The last ray of hope is the parcel of benefits of previous rate cuts to the consumers which is yet to be delivered by the banks.

With the recent announcement in the monetary policy review, the Repo Rate remains unchanged at 6.25 percent, Reverse Repo Rate under the LAF at 5.75 percent, Statutory Liquidity Ratio (SLR) at 21.5 percent, and Cash Reserve Ratio (CRR) at 4 percent and Marginal Standing Facility (MSF) at 6.75 percent respectively. With no change in the monetary policy review, the realty experts are predicting the graph to stay uniform while giving the real power in the hands of end users. Investors markets stand midway with no return guarantee. With the present situation of prices being at their very least, country going cashless on high value currency, there are not many signs of appreciation in the upcoming 6-9 months.

Here is what Avneesh Sood, Director, Eros Group would like to say about this subject:

Since demonetisation, it was quite evident that real buyers will become prominent in the market and end users will be in majority. Banks had already reduced their interest rates, post the previous policy review; and a rate cut in today’s policy review would have further motivated these potential primary buyers to make full use of the reduced EMIs. With ready to move in properties high in demand, property prices already at its lowest, a rate cut at this point of time could have pushed the sales further; either for long term retention or end use.

 

Kerala Floods

The recent floods that ravaged Kerala had been its worst ever. The incessant rains the lasted days saw 35 of its 39 dams open its gates. These waters had rivers swelling over and breaching its banks, displacing millions across the state.

The unprecedented nature of this calamity had caught many unaware. With Onam – the traditional festival of the region – around the corner, many had flocked home to be with their loved ones, only to be asked to leave everything behind, seek higher ground.

There are only a few still alive in the state who can recall a calamity as severe as this. The entirety of the state was at risk, all fourteen districts. Kerala’s last flood was a century ago, in 1924. Those who could recall remembered it to be less severe than the one that they were facing now.

The lush green fields that decorated this God’s Own Country were swept away in the fury of the floods. But no calamity could rip the communities apart; each helped each other and moved to higher grounds where they hoped help would come.

Help did come! The navy and the air-force had, on orders, sprang to life deploying choppers to the inlands and regions around Periyar. Kindled by compassion and duty, the locals rushed to help as well in what ways they knew. It is perhaps how the fishermen took to the inlands on the flooded rivers that would be the most memorable of the stories that emerged.

Many more remain untold. Political identities were cast aside, and so were notions of caste and language. Help was sought and given, without reluctance.

It would take Kerala two long years to recover from this calamity, but it is not the prerogative of the government alone to lay out the road for Kerala’s recovery. It falls on us all.

It is to this extend that EROS Group had been conducting collection drives across their properties in NCR in association with People for Action, an NGO dedicated to relief efforts.

EROS Group is committed to the rebuilding of Kerala and we hope you will too.

The Growing Significance for Sports in India

India hauled 69 medals in the recently concluded Asian Games in Jakarta, Indonesia. This is Team India’s best-ever performance, the last being the 2010 games where it clinched 65 medals. Though the number of medals, as great an achievement as it is, had remained almost the same, it was the sheer quality in India’s performance this time around that had got me quite piqued about the growing significance of sports in India.

It’s true – Sports is indeed no longer but an added luxury that only private schools could afford but is now an integral part of a child’s education. Realizing this, the Sports Ministry has set up a new subject called ‘Health, Physical Education, and Sports’ giving it now the same status as one would to Mathematics or Science.

Sports is no longer part of our education, it is education. Though these changes may seem recent and new, the seeds were sown a decade ago. For this transformation to have surfaced, many sacrifices must have been made and indeed they were.

It is not more evident than in the story of Amit Panghal this Asian Games. His golden run at the games had been built on the sacrifices that his brother, Ajay had made. Ajay, an aspiring boxer himself, quit boxing so that he may provide for his family and let his younger brother continue boxing. His sacrifice began paying dividends last year when Amit won bronze at the Asian Championships. On Saturday, Amit emerged national hero by winning gold, upsetting the Olympic champion in light flyweight category at the Asian Games.

Also, interesting to note is this – the brothers were farmers and had no money to go far to seek boxing training. Had it not been for local coach Anil Dhankar who had set up a boxing academy in the village, the boys would never have dreamed of boxing.

Amit’s golden run at the Asian Games also demonstrates that local, makeshift academies in the country had been laying good foundation across disciplines. These local academies had been carving champions out of these boys.

What is also remarkable is how women have taken to sports. Just two decades ago, they were struggling to have equal rights as men in avenues such as sports. It was quite a heartening sight to see how our girls have performed even better than the men, clinching gold in different sports. They paint the story of new India as it emerges as one of the biggest sporting nations in Asia.

Sports is no longer an indulgence. It is a promising career option now. Each medal won at the Asian Games is going to bolster many more aspiring talents across the country to take up sports more seriously. Sports in indeed growing in significance in our country and I am glad that is it – it is vital for the comprehensive development of our young children, our future.

The Importance of Educating the Girl Child

Educating the girl child refers to not only the general education that they may receive through schools and colleges but also include their skill development too through vocational training. In addition to this, there’s also the need to educate them on health, finance, and they fundamental rights.

The education of girl child is vital for bringing about socio-economic changes in the society. Most countries – including India – have a constitution that guarantees equal rights to both women and men.

Primary education is a key right. When a girl is aware of them and protected by them, it ensures great sustainability and security to the society.

Various steps have been taken by both government and non-government organisations towards improving the education of girl child. The recent campaign – Beti Bachao Beti Padao comes to mind. It is a great example of how we can bring about much faster progress for the same.

A large population of Indian women, especially in the rural areas, depend on their men and their livelihood. The single dependency is limiting what they could achieve. With proper education, women are empowered with economic independence which helps them break away from the stereotypes into which they are bound.
It can also pave way for improved health and a good life for the girl child. Her identity will not be lost, and she would be less likely to be limited by societal conditioning. Educated women have also dispelled the house wife status by which they were once labelled and some still are. Women are now breaking glass ceilings and soaring to new heights.

Today, educated women are a source of inspiration to millions of young girls who now have made them their role models. It has also opened doors for new avenues of growth for the society.

Girl child education is not one to be taken for granted. Though the Indian society had witnessed much change in the past few years, more work needs to be done still in bringing about gender parity.

EROS Group is pleased to announce that we have associated with buddy4study.com to facilitate scholarships to meritorious girl students across the nation. Abhilasha Scholarship applications are open until the end of the month. For more details, please visit https://t.co/Nej0aFDu4F

#EROSGroup #BetiBachaoBetiPadao

Smart Cities: Battle of Development & Sustainability

Overview :

The past few years have witnessed rounds of discussions & plans for developing smart cities across the country. Most recently there has been an outcry of researchers about what impact these smart cities would be followed by.

The confusing part is, what is a smart city? & how smart are they?

Smart cities, a brief explanation:

In 2015 central government launched an urban renewal plan for select cities across India. The five-year program aimed to select 100 cities & focus on their core development points such as adequate water & electricity supply, urban mobility, digitalization, e-governance etc. The idea was to inspire a model of development for other cities to look up to.

In a series of five rounds of selection, a total of 99 cities were chosen, including New Delhi & Faridabad. Each of these cities would be provided with a funding of Rs1000 Crores by state & central government in 2017-2022 to focus on their development.

Why are the environmentalists angry?

A study conducted by a group of researchers from the UK stated that when these smart cities reach their final, developed state, they might face issues regarding sustainability. Although the government has plans looking over sanitation & urban waste management of these cities, researchers argued that it might not be enough.

With the rise in infrastructure, there would be a proportional rise in the population density of those regions. Higher the population, higher goes the waste.

At Eros, we understand the importance of environmental preservation. It’s why our projects are surrounded by lush green gardens & healthy vegetation to ensure that residents live in a clean environment.

What does a Smart City bring to the table for real estate?

Investment. A brief, but an accurate way to state it. Smart City project would provide each city with a boost in their beautification capabilities. Meaning, there would be a lack of empty lands & abundance of parks. Another focus would be on Transit Oriented Development i.e. cities would develop businesses, leisure spots & residential spaces within walking distance of public transport points.

The plan would significantly increase the residential capacity of the city & develop infrastructure to attract outside investment. Diverting from residential businesses, smart cities would have a wide scope for commercial development like malls, restaurants, integrated complexes etc. 

To sum it up:

Smart Cities would bring countless opportunities. They would begin by developing residential businesses to house the, soon to increase, population & end at developing recreational & commercial facilities for the masses. There is a very broad market with lots of untapped economic landscapes.

What’s important is that focus must not be limited to simply developing infrastructure, but to also look at their sustainability. The environment is for us to live in & we must look after it.

Jewar Airport: Winds of Development

Overview:

 It took 16 years of conflicts & disputes for the Jewar Airport to receive approval from the state government. Backed with a budget of Rs 20,000 crores, it would be built on 4000 acres, making it India’s biggest airport.

The foundation will be laid in October this year. Consultancy firm PwC has been asked to prepare a bidding document by July to select potential builders. Construction, starting in 2019, would be divided into four phases, aiming to complete the first phase by 2023.

An  MoU has been signed between the UP government, YEIDA, Noida & Greater Noida Industrial Authorities to fast-track the work for the airport, including land acquisition.

Why are the owners unhappy?

Yamuna Expressway Industrial Development Authority (YEIDA) has been assigned as the principal agency to oversee the development of the project. A funding of Rs 4000 crores has been allotted by the state government to YEIDA for the first phase. Land acquisition process has begun, but the owners are not very happy about it.

The landowners have complained that before signing the MoU, the status of their lands was changed from rural to urban. The change in status would make compensation for the lands two times the circle rate, rather than being four times, had the lands remained rural.

The owners have also pointed out that by selling their lands through property dealers they could easily bag Rs 25 Lakhs per bigha (843 sq.m) then why shall they sell the same at Rs 15 Lakhs to the Government.

 What’s for the real estate in it?

 The government has planned investments to develop transportations links to the airport. A Rapid Rail Transit System from Jewar to Sarai Kale Khan ISBT has been approved. There are also talks to extend Greater Noida metro till the Airport. With the rise in rail connectivity, an army of autos & buses would soon follow.

An Aerocity would be built around the airport which would be another milestone for Jewar. The Aerocity would attract flocks of hotels, malls & restaurants to it. An MRO (Maintenance, Repair & Overhaul) facility would also be set-up at the airport. This would become the hub for skilled labors, engineers & many other professionals. It wouldn’t be delusional to say that a few years from now Jewar would hardly be recognizable.

Eros Sampoornam, located 35 mins away from the airport, provides great investment & residential options. The society has budget friendly 2 & 3 BHK luxury flats with its amazing clubhouse, sports facilities, shopping centers etc. The possessions have already begun at a great pace.

Conclusion:

 Since 2001, when the plan was first proposed, land values in & around Jewar saw more than a few rises & falls. Political conflicts led to many cancellations, but now, at last, the project has attained stability.

To those who have invested around the airport, I would say that don’t even consider selling. Times are now for development, you can sell your land anytime in the future & still make a good profit. Right now you should focus on establishing a business around the airport, the residential real estate is just one share of the pie. The market is wide open for hotels, cafes, complexes & what not.

It’s an empty land, which in a few years would hold the country’s biggest airport. Decide on a venture & plan on how to start it.

To those who haven’t made their investments yet; do it.

Real Estate Expectation from Budget 2018

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Budget 2018 is about to come and everyone is looking forward towards some positive changes. Real estate sector is highly hopeful for some concrete and fruitful updates. The two main pre-budget expectations in the real estate market are one the Affordable Housing category is presently limited to 6- sqm area only, the area is expected to increase for the MIG category to come under the Affordable Housing segment. The second main pre-budget expectation is that the current GST of 12% should be lowered to at least 6 to 8%.

Talking about the first expectation from Budget 2018, the recent policy reform which is in the reckoning is that under the PMAY (Prime Minister Awas Yojana), the MIG – 1 carpet area has been increased from 90 sqm to 120 sqm. Also, MIG – 2 carpet area has been increased from 110 sqm to 150 sqm. If the housing under the above categories becomes a part of Affordable Housing, then it is liable to avail the benefits and subsidies of the Affordable Housing segment, which will boost the real estate market in times to come.

The following amendments will draft the way ahead for availing the loans and to avail the advantages of the Affordable Housing category as Affordable Housing has been designated with the ‘infrastructure Status’.

The second major expectation from Budget 2018 is that the current GST which is of 12% should be lowered to at least 6 to 8%. If both these above-mentioned measures are executed and implemented in Budget 2018 then for sure real estate market will witness a major boost. This will be a great step towards meeting Government’s mission of ‘Housing for All by 2022’ as post such measures masses will be in a much better position to afford homes and invest in housing.

Real estate sector is looking forward to Budget 2018 to create a better market, happy developers and satisfies customers.

Possessions: The new driving force of Indian realty

Eros blogThe year 2017 turned out to be one where the Indian realty witnessed a lot of facelift and a major part of it being in the form of possessions. This year has witnessed the trend of real estate shifting from project launches to possessions and to such an extent that the total project launches in the year fell by almost 40% which is a big number. The current trend of the market is such where the success of any real estate developer is measured in the terms of the possessions they have offered to their buyers till date. The year also saw the concentrated efforts of the various state governments and concerned development authorities towards enabling developers to deliver projects to their rightful owners.

Eros Group is synonymous with real estate and hospitality across the span of NCR. The Group had offered possession of 1768 units for the phase – 1 & 2 of its project Eros Sampoornam in Greater Noida West after the OC was received for the 21 towers housing the aforementioned units. Work on another 432 units in the project is taking place at a rapid pace, and the possession for the same will be announced soon too.

Possession has been the driving force for 2017 and it will be the same for 2018 as well. With better possession rate 2018 will bring joy and cheers to all the home buyers.