Facing Down The Odds


There is little Kushal Pal Singh hasn’t seen. He built the city of Gurgaon out of nothingness. He also saw it begin to crumble under its own weight.

He almost sold DLF for Rs 26 lakh, but later also saw the value of his shareholding in it climb to Rs1,87,920 crore. Now, it’s declined to just Rs14,701 crore.

In 2007, he was celebrated for bringing India’s biggest IPO.Seven years later, he stands condemned by Sebi, for failing to disclose material information in that very offer. He has also seen both friends and foes occupy high places.

He is among the first who had the vision of a large-sized modern building that is as good as any in developed countries. Now, cash flow questions are being asked about many of his ongoing property projects.

Consistent with the title of his autobiography ‘Whatever the Odds’, his ride is neither smooth nor straightforward.

When KP Singh ventured into Gurgaon in the late seventies, no one would have imagined what it would become over the next few decades. Good fortune and intent and perseverance all played a part. Read more of this post

Kings’ Estates

wealthymattersA measure of power and the ability to project force has always been at the heart of property ownership.Any body willing to conquer, colonize, squat, legislate, litigate, subvent the existing system etc. is able to amass property.Purchase,that too at “market rates” is optional.In fact,markets are made,

So ever wonder how things are done in the charmed circles?The detailed investigation report into the allotments under the discretionary quota, brought out by the Haryana Urban Development Authority (HUDA), under the directions of the  Punjab and Haryana High Court,shows that  66 allottees got  multiple allotments under this quota.Of them,three gave the address of Teen Murti Bhawan. Teen Murti Bhawan in New Delhi is the residence of India’s first PM Jawaharlal Nehru. HUDA allotted two of the three allottees above, four to ten marla plots in Faridabad, the third one got two allotments in Gurgaon. One cent is equal to 1.6 marlas.

Krishan Lal, son of Bitti Ram,  of “Quarter number 87, Teen Murti House, Outside Compound, New Delhi”was allotted a ten marla plot “plot number 71/37” in Faridabad. The allotment was made on March 10, 1983.Another allotment was made to Krishan Lal under the same address “plot number 638/55, Faridabad”.  Read more of this post

Rising Popularity Of Resale Flats

wealthymattersNew home sales may be few and far between, but resale of properties is booming. Sale of such properties is up 40% across the country in the last 6-8 months as buyers become more risk averse, looking at the enormous construction delays, say property brokers and financial institutions. According to Punjab National Bank and Indiabulls Housing Finance, 35-40% of home loans being taken today are for resale properties, which include both apartments that are ready to move in and those that are in the late stages of completion. Primary sales have slowed down and prices have stagnated or dropped. Resale of properties, however, has been strong in the last few quarters.

Time over-runs in real estate projects have become a sore point with buyers. According to property research firm PropEquity, nearly half of the 900,000 under-construction residential units are likely to be delayed by up to 18 months. Slowing of the economy to a 5% GDP growth level too has put doubts in the minds of home buyers. Property sales across the country have dipped in the last year and a half because of rising property prices.

According to PropEquity, in the first quarter of the current fiscal, 13,797 residential units was sold in Bangalore compared with 9, 742 units absorbed in the first quarter of FY13. Other bigger markets such as the Mumbai Metropolitan Region absorbed 15,501 units, down 21%; National Capital region (NCR) absorbed 26, 798, up 31% and Chennai saw 5953 units absorbed down 21% in January to March 2103 compared to same period last year. Read more of this post

State Of The Rental Home Market

wealthymatters Demand for rented homes has halved and rents are down by 25% in several popular residential localities in Mumbai, Delhi and Bangalore, as India Inc tightens housing budgets in its battle against economic slowdown. In Mumbai, rentals in marquee buildings like the sea-facing Haveli on Malabar Hill, NCPA Apartments at Nariman Point and Maker Towers at Cuffe Parade, where rentals range between 5.5 lakh and 12 lakh a month, are down by up to 30%. In Delhi’s Vasant Vihar, West End, Chanakyapuri, Shanti Niketan and farmhouses in Chattarpur and West End Greens,rentals have dropped 25% in the last one year. Rentals in apartment buildings in  Bangalore neighbourhoods like Epsilon in Yemlur and Prestige Exotica on Cunningham Road are also down by 35% this year.Rents in Epsilon range between 7 lakh and 10 lakh. Corporate earnings have been subdued and no new expansions have been announced in the recent past. Companies are hiring less and also cutting down on perks such as rentals. Read more of this post

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