The new mantra for city malls is to entice customers into staying at the mallsonly. For instance, the Select City Walk Mall in Saket, recently unveiled 83 plush suites spread across five levels, complete with living room, kitchenette and designer bedrooms, called Svelte Suites. These suites are classified as Executive, Royal, Grand, Deluxe and Presidential suites. Their rates range from Rs 12, 000 to Rs 30, 000 per night, with room sizes ranging from 450 sq ft to 1,100 sq ft. The Ambience Group will soon have a luxury 319-room hotel and 90 service apartments by the Leela Group in the Ambience Mall in Gurgaon. The hotel will cater to the tourist inflow expected during the 2010 Commonwealth Games. Sun City Developers, builders of the Cross River Mall, are also planning a mega project of 40 lakh sq ft in Greater Noida, which will house retail space, offices, a five-star hotel and an entertainment island. As real estate developers fight to offer better amenities, the customer is spoilt for choice.

Real estate developers have hardly hiked their rates in the last six to eight months and some of them have not hiked them at all. Property analysts say this scenario is different from that witnessed between April and October 2007, when developers hiked rates by as much as 24% to 32%. According to a pan-India survey of local brokers in the residential property market, carried out by global research analysts Edelweiss, around 80% of brokers across India have witnessed a reduction in enquiries over the past month, and about 90% have seen a drop in transactions over the past month. A hundred brokers in 20 micro-markets like Bandra-Borivili, Mulund-Thane, Gurgaon, Noida, Whitefield-Marathalli and Annanagar, in Mumbai, Delhi, Bangalore and Chennai, were polled. Godrej Properties hiked rates for its Riverside project at Kalyan by 24% in 2007, but this year, it has increased them by a mere 7%, from Rs 2,000 per sq ft to Rs 3,000 per sq ft. Rates at Rustomjee's Elanza project in Malad (W) has remained constant, at Rs 9,000 per sq ft, after its hike of 20% at Rs 7,500 per sq ft last year. Similarly, property rates at RNA Builders' Royale Park and HDIL's Dreams project in Bhandup remained at Rs 6,500 per sq ft and Rs 5,750 per sq ft, after jumping 18% and 5% respectively from 2007.

Thanks to lower travel spends by enterprises, the serviced apartment players in major cities in India have seen a drop in occupancy rates. Even as global recession looms, companies are exploring cheaper alternatives such as owning apartments and resorting to video conferencing. Except for Delhi, all other major cities have seen a slide in demand for serviced apartments. Tariffs in these cities are expected to fall by 15%-20% in 4-5 years. The market in Delhi and Gurgaon has, however, managed to stay buoyant. Demand has perked up by 60-70% in the last one year and the upcoming Commonwealth Games (in 2010) are expected to drive up revenues in the medium term.

Real Estate industry is talking on correction period all over India. Brokers, especially, are absolutely convinced that the market is set to fall. In many areas the property rates have already started falling. Accordingly, Goregaon, Malad, Mira Road, Vasai and Virar on western suburbs and Mulund, Bhandup, Kurla, Chembur and Govandi on central side have started stagnating the level of property prices.

Pune, Nashik, Noida, Jaipur, Bangalore, Chennai and Hyderabad are also feeling the cold wave in the property market. Reason for the same is related with hike in housing finance interest rates and unaffordable property rates.

Investors are, now, not buying and have stopped going in for more investments. Commercial stock is in the market for anything above the cost of investment. Practically, when no one buys, rates are stagnated at some particular point. That is what is happening today. The sale price has stopped further climbing up since there are no takers. Malls are worst hit. The recession started with them, while the exhibiting rates were much less then the actual investments made. Cash and Cheque portion of mall space deals are known to everyone in the trade. The market for commercial properties has already been started to correct its baseless pricing.

It may be a recess. For the time being, investors want market to show its actual colour. And after they sell off certain non moving stock, buying spree may start again afresh. It is also linked with the liquidity crunch in the economy and falling stock exchanges in the country. A lobby of investors does not want share market money to go easily from the real estate market. People who have invested in real estate from earning of share market wants an exit to pay off the liabilities created by them in the share market. Player in real estate market wants the rates to stop climbing up for some time so that they can capitalize on such panic sale. Big game plan is on the hands of few groups of individuals and few finance companies that have entered recently in the trade.

Builders, today, have already started to reduce its price everywhere in the country. Ready stock is still not available as the builders have already sold 30 to 50 % of his stock during under construction to investors. As the Investors want handsome returns on the finished stock while they do not sale in the open market but through the builder only. That stock again sold by the builders to the actual buyers by mounting another profit margin. Hence when the actual user buys the property, he has to pay investor´s hidden margins which change hands five times during the time of construction.

It is nothing but a recess for the players. The rates may go up by the second quarter of the next year 2009. Builders have holding capacity since the project is financed by venture fund people and Mutual funds are searching for the projects. The sale price will be certainly include the interest rates or Return on investment money (22% to 25% of total project). Land and FSI cost is higher and purchasing is already finished for the second rally of property market boom.

As in current market, liquidity has reduced and the funding by the PE firms or Mutual funds has mostly stopped and hence, the construction & launching of the project has just held up or been delayed by one to two quarters some time a year as well.

So in view of current market scenario, we can easily understand that the Real Estate market has effected very much with the recession of Economy.

Real estate firm, Tata Housing Development Company, has signed Kapil Dev for endorsing its residential project 'Raisina' in Haryana. The project is being developed by Tata Housing in partnership with Raheja Developers in Gurgaon. The construction of the 11.73 acres high-end residential project is going on with an estimated investment of about Rs 500 crore. Speaking about his association with the project, Mr. Dev said: "I am very privileged to be associated with Raisina Residency and Tata Housing. I am glad that they have announced this project in my homeland Haryana and would like to lend my complete support to their premium and luxurious offering."

The prices of up-market residential localities in big metros have witnessed a 20-25% rise in the last four months. Markets such as Greater Kailash I & II, Jorbagh, Golf Links, Amrita Shergil Marg, Sunder Nagar, Vasant Vihar and Shanti Niketan in Delhi, Napean Sea Road, Peddar Road, Breach Candy, Malabar Hills in Mumbai and Richmond Town, Lavelle Road, Cunningham Road in Bangalore have a witnessed a spurt in prices. In Mumbai, the prices in posh areas such as Altamount Road, Napean Sea Road, Nariman Point and Churchgate have gone up by 20-25%. But South Delhi is leading, the market quoted prices as high as Rs 5 lakh to Rs 10 lakh per sq yard. Mr.Vikram Sabharwal, MD of SABH Infrastructure, said, "The prime localities in South Delhi are commanding a huge premium as there is virtually no land available in these posh areas. There is hardly any construction activity taking place. The only activity seen is in large villas being converted into luxury apartments. This has further jacked up demand and the corresponding prices."

During January-June 2008, new housing project launches in the national capital region (NCR) slumped by 20%. This is explained by the slowdown in demand due to increase in real estate prices and rising interest rates for borrowers. The first six months of this year also saw a shift in developers'strategy towards mid-income houses, as the high-end segment witnessed resistance from buyers. Project launches in the high-end category fell by two-third to just 5, while mid-income housing project launches rose by over 20% to 37%. According to a report by international property consultancy firm DTZ, the absorption of mid-income houses in July at 76% had overtaken that of high end houses (68%). This means that high-end houses are selling at a slower pace than the mid income segment. "Affordability is the single biggest factor that influences a home buyer's decision," says DTZ director (consulting and research) Mr. Abhilash Lal, adding that a series of interest rate hikes has almost doubled the equated monthly installment (EMI) outflow for a home buyer in the past few years. He added, "Buyers are increasingly shifting to mid-income homes as they can't afford a higher EMI." Lately, several developers, including India's largest real estate firm DLF, Ansals, Parsvnath, Omaxe, BPTP, Raheja and Gaursons have been actively building mid-income homes.

Haryana Urban Development Authority is set to launch a new Group Housing Scheme in Gurgaon. According to sources, in order to meet the growing demand for houses, around 1000 multi-storeyed dwelling units are expected to come up in various sectors of Gurgaon, tenders for which will be floated in two months. Under the scheme, out of over 500 plots of half-an acre each, a certain percentage will be reserved for the economically-weaker sections, central government employees and defence personnel, said HUDA officials. The scheme envisages there should be a minimum of 20 and a maximum of 90 members for a group housing society. The authority will be allotting housing sites to cooperative group housing societies registered with the Registrar, Co-operative Societies, Haryana and the Welfare Housing Organisations registered with the Registrar (Firms and Societies).

Two weeks after the Delhi Development Authority (DDA) closed its Housing Scheme 2008, where 5,010 flats are up for sale; the agency has started the process of scrutinizing the application forms. Officials said they planned to hold the draw of lots for the flats before December 15. Senior DDA officials said 12.64 lakh application forms were sold and downloaded. Of them, 5.12 lakh forms were finally submitted in different banks authorized by the DDA. For applicants, it's going to be a tough competition: for each of the 5010 flats, there will be 102 applicants. Those who don't get lucky in the lottery would get back their registration money from January. "Scrutiny of forms will be completed by November 20.Once scrutiny is over, forms which will be eligible for the draw will be uploaded in official website www.dda.org.in."DDA launched the housing scheme on August 6 after a gap of two years. The scheme offers 5,010 ready-to-move flats priced between Rs 7.95 lakh and Rs 11.90 lakh in areas like Rohini, Vasant Kunj, Dwarka, Paschim Vihar and Pitam Pura Pitampura, Dwarka, Motia Khan, Paschim Vihar, Dilshad Garden, Vasant Kunj, Narela, Shalimar Bagh, Jhilmil, East of Loni Road, Nand Nagari, Peeragarhi, Sarai Khalil, Rohini, Lok Nayak Puram, Bindapur and Zafrabad.DDA officials said the flats were 40 per cent cheaper than the market rate. Applicants had deposited a registration amount of Rs 1,50,000 at the time of submitting the application forms.

Analysts say prices may stagnate or decline in the next three months.

Home prices may decline in the next three months, according to a national poll conducted among top property brokers by Edelweiss Securities, a Mumbai-based brokerage.

Almost 70 per cent of the brokers who participated in the poll believe prices will be flat or negative in the period and even Diwali is unlikely to lift the mood in the property market.

About 60 per cent of them believe that prices have stagnated over the past three months. The Reserve Bank of India’s move to raise repo rates by 125 basis points in the last six months has resulted in commercial banks increasing their lending rates by similar margins. In turn, home buyers have to pay a much bigger amount as monthly pay-out on home loans.

On an average, the monthly instalment on a 20-year, Rs 10-lakh loan has gone up over 50 per cent to Rs 12,740 on a 14.25 per cent rate from Rs 8,060 (7.5 per cent interest rate) five years ago.

Due to high demand from end-users and investors alike, home prices in main markets such as Mumbai and Delhi have trebled in the last two years, making homes unaffordable for middle class buyers. According to the poll, 90 per cent of brokers have seen a drop in transactions in the last one month and almost 80 per cent of them witnessed a reduction in enquiries over the same period.

But, property brokers feel that price movements will differ in different markets. According to the poll, about 60 per cent of brokers expect prices in the Mumbai island city to come down in the next one year. But they feel prices in Gurgaon in the NCR region, Whitefield in Bangalore have stagnated over the past three months against the perception of a price fall.

Meanwhile, brokers say they have seen an increase in enquiries in Chennai in the last one month. However, they are yet to see the conversion of enquiries into transactions.

Says Pranay Vakil, chairman of Knight Frank, an international property firm, “If you compare residential sales this year compared with last year, there has been a drop of 90 per cent. It is just a tip of the iceberg. Worse is yet to come,’’ he says.
Adds Hemant Barabde, a Mumbai-based property consultant, “We feel the current slump to continue for a year till the general elections, after that prices may pick up again.’’

DLF CITY, one of the most posh colonies of Gurgaon, has been going through its worst nightmare for the past three years, due to the nearby garbage dumping site. The Haryana Urban Development Authority (HUDA) dumps more than 300 tonnes of the city’s garbage into the Aravalis everyday within 500 metres of DLF Phase I and DLF Phase IV.

The DLF residents have already staged a number of demonstrations against the illegal dumping of garbage on Gurgaon-Faridabad road.
“Residents are already suffering from various skin allergies and cases of dengue are also being reported frequently from the area,” informed Harish Capoor, who is a resident of DLF Phase I and has been fighting against this menace for more than two years now.

Capoor also said that he had filed various RTI petitions and met many HUDA officials, but all in vain. He said that in spite of assurances from the authorities, nothing has been done about it. Capoor informed that the residents are again planning a protest rally at 9am at Gurgaon-Faridabad Chowk near the illegal garbage dump on September 22.

“More than 100 people are expected to participate in the protest,” said PN Raina, secretary, Silver Oaks Condominium Association. Raina also informed that various retired IAS officers, corporate honchos, IT professionals and academicians have already expressed their interest to join the rally.

A number of stray animals, like cows, pigs and dogs have also triggered a threat of diseases and road-accidents. According to Ramesh, senior supervisor, Silver Oaks Apartments, DLF, “People are constantly living under threat of dengue, malaria and waterborne diseases. ” If sources are to be believed, the property rates in the area has also seen serious implications of this site. According to a local resident, “People now think twice before buying a house in DLF.”

Meanwhile, HUDA has assured that a state-of the-art waste management facility will come up in Bhandwari village, 10 kms from the current dumping site, within one and a half years. But the DLF residents say the construction of the project has not yet started. HUDA has deployed a heavy-duty earth moving machine to cover the garbage with sand and bacterial sprays are being used to negate the foul smell and bad effects of the dump.

Delhi-based Real Estate Developer Unitech had received about $175 million (Rs 740 crore) from Lehman and is very confident of surviving the Lehman crisis. A Unitech spokesman said, "Unitech has already received the money and closed the deal with Lehman Brothers' managed real estate fund. We are not affected by the Lehman bankruptcy. The Lehman real estate fund is third party capital managed by the Lehman asset management business." In June this year, the Lehman managed real estate fund bought a 50 per cent stake in the Mumbai project. Lehman picked up stake in one million sq ft of space in a project jointly developed by Unitech and its local partner, Western Expressway JV, at Santa Cruz. The project involves 18 million sq ft of development estimated at Rs 26,000 crore.

International property consultants have called for reduction in residential prices as demand has gone down by over 40 per cent in the last nine months.

While end-users in big cities such as Mumbai and Delhi are postponing buying houses due to a number of reasons such as unaffordable prices, rise in interest rates and increase in their monthly pay-outs among others, investors have sold off their properties to pay for losses suffered in the stock and property markets, consultants said.

“Developers must now be ready to lower their selling prices in order to revive demand. Once this happens, we will see a definite upswing in residential real estate sales again,’’ said Anuj Puri, chairman and country head of property consultancy Jones Lang LaSalle Meghraj (JLLM).

The Reserve Bank of India (RBI) has raised repo rate, the rate at which it lends to banks, by 125 basis points in the last six months to contain inflation.

In turn, commercial banks have raised consumer loan rates by 50-100 basis points. Thus, on an average, the monthly installment on a Rs 10-lakh loan for 20 years has risen over 50 per cent to Rs 12,740 at 14.25 per cent rate from Rs 8,060 (7.5 per cent rate) five years ago.

“While ready apartments are being sold, those under construction are not finding enough buyers,’’ said Vikas Oberoi, managing director of Mumbai-based Oberoi Constructions recently.

After global investors such as Lehman Brothers and Merrill Lynch suffered huge losses in the US and others reduced their exposure in the emerging property markets including India, consultants believe foreign funds would come into the country at much lower valuations.

“If developers had a horizon of 25 funds earlier, now they will have only 10 funds. Investors would want to come in at much lower valuations. I expect nearly 20-25 per cent correction in prices around Diwali,’’ said Ambar Maheshwari, director of DTZ, a global investment advisory.

Adds Puri, “The Indian real estate market is likely to underperform in the next six to 12 months. During this period, investors are well-advised to concentrate only on key listed players who are better placed to ride out the storm. Only such companies are geared to show good share performance over the longer term,’’ he said.

A cross-section of property developers, consultants and brokers said enquiries from home buyers have gone down by 40 per cent over the last three months, compared to the same period last year. While developers are not advertising any price cuts, most are willing to reduce prices once the negotiations begin, according to investors.

For instance, in Gurgaon, where the prices are Rs 6,000 per sq ft, developers are settling deals at Rs 5,500-5,400 due to a sharp reduction in demand. This is apart from freebies such as free parking, waiver of stamp duty and equated monthly installments.

Real estate firm, Suncity Projects Ltd is planning to raise up to Rs500 crore through private equity for development of its IT special economic zone (SEZ) project at Gurgaon. "We are in talks with various private equity firms to raise Rs350-500 crore for our IT SEZ project in Gurgaon. The project cost to develop the SEZ would be between Rs3,000 and 4,000 crore," Suncity Projects Director, Mr Ashok Bansal said. The IT SEZ spread over 167 acre has been notified and construction would begin next month, he added.

Private realty developers might have to face tough times ahead, as investors are betting on chances for higher returns from cheaper DDA flats. On an average, a DDA flat is available at half the price of apartments being developed by private developers. For instance, the resale value of a 990 sq ft DDA apartment in Pitampura is pegged at between Rs 60 lakh and Rs 65 lakh. These apartments are coming into the market at a time when private developers are finding it tough to sell the apartments due to buyers baulking at the interest cost on home loans, which range above 13 percent. The situation will get tougher for private developers if the expected supply of nearly 1,200 cooperative group housing society apartments in various pockets of Delhi, primarily the western locality of Dwarka, comes into the market. Another plus point, which is attracting buyers towards DDA flats is that they are ready for delivery. The authority is charging a registration amount of around Rs 1, 50, 000 from applicants, promising possession in around three months. The delivery period of private properties is comparatively higher at an average of 36 months from the launch.

Millennium Spire Limited, an 'Alternative Strategies Fund' under the UK-based Millennium Global Umbrella, has entered the Indian realty sector unveiling its maiden platform for developments in the Indian market, Spire World. It is a platform that would drive development of mainstream green projects of Millennium Spire in the country. This has also marked the launch of the company's first 'Mainstream Green' project in India, Spire Edge, a sprawling 1.6 million sq ft of scalable eco-office complex with an energy saving capacity of up to 30 percent, costing Rs 400 crore. The project is a joint venture between Millennium Spire and A.N. Buildwell, a company with over 25 years of experience in real estate development. The project would be located in the emerging IT hotspot, IMT Manesar along the Delhi-Jaipur highway.

The Supreme Court supported the ban imposed by New Delhi Municipal Council (NDMC) on construction of multi-storeyed buildings in Lutyen's Bunglow Zone in the heart of the capital. It said it is important to protect the green character of this zone.

Delhi Development Authority's offer to sell 5000 flats beginning Monday at a price almost 40 per cent less than private developers ,would mean a bonanza for the few who manage to get in.

Out of the 5,000 flats, 352 are three-bedroom flats, 889 two-bedroom ones, 3,231 one bedroom and 286 expandable. In space-starved Delhi and amidst skyrocketing property prices, these flats will be available in areas like Vasant Kunj, Rohini, Dilshad Garden, Paschim Vihar, Motia Khan, Dwarka and Pitampura.

At a time when property prices and escalating EMIs have made the dream of owning a house in the capital a distant dream, these flats would cost anything between Rs 7.2 lakh and Rs 77 lakh.

According to DDA, 60 per cent of these flats are new constructions. The rest include flats that were either allotted to the government and have now been vacated or the ones which have been surrendered owning to non-payment by the allottee. There are also those which were under construction for some time.

There are 3,231 one-bedroom flats. The cheapest in this category is in Narela Sector 9A and carries a price tag of Rs 7.20 lakh while the costliest is in Dwarka's Sector 18B and would cost around Rs 24.80 lakh.

DDA is expecting a big turnout this time considering that in 2006 when it had put up 3000 flats on sale, there were 1.90 lakh applications.

Of the 5,000 flats, 28 per cent are reserved for various categories, including 17.5 per cent for SCs, 7.5 per cent for STs, one per cent for war widows, another one per cent for physically challenged and one per cent for ex-servicemen.

"Till date DDA has allotted 3, 71,215 flats of various categories under 42 schemes. On Monday it will throw open the application process which will continue till September 16. The DDA hopes to declare the result through a computerized draw of lots after three months from the last date of application,'' director, press and information, DDA, Neemo Dhar said.

Among the areas where the flats are available are Shalimar Bagh, Jhilmil, Narela, East of Loni Road, Nand Nagri, Peeragarhi, Sarai Khalil, Lok Nayak Puram, Bindapur and Zafrabad. The size ranges from around 39.39 sq metres plinth area in Rohini Sector 18 to about 158 sq metres plinth area in Motia Khan.

Real estate observers said some people would get really lucky. "The rates beign offered in Pitampura, Dwarka, Vasant Kunj and Rohini are almost 40 per cent less than the market rate. The average rate per sq meter comes to around Rs 3000 while the market rate at which private developer sell at most of these places is around Rs 6000-7000,'' said experts.

According to DDA officials, the increase in cost of flats over 2006 when 3000 flats were sold is not more than 25 per cent. "DDA flats are cheap because there is no profit to be made,'' an official explained.

In 2006, DDA had put up 3000 flats for sale in areas like Rohini and Dwarka and the costliest was around Rs 38 lakh in Dwarka. This time it's Rs 77.80 lakh for a flat in Motia Khan. It's because of its size and location.


Important Links

DDA Official Website

Address:
DDA -Delhi Development Authority
Vikas Sadan
New Delhi- 110023
Phone:011-24690431/24690435

DDA Housing Scheme 2008 Form

HOUSING BONANZA
When do you apply
DDA will give forms and accept applications from Aug 6 to Sep 16

Where to apply
DDA sales counter at Vikas Sadan All branches of banks like SBI, HDFC, IDBI, Axis and ICICI Central Bank of India at Vikas Sadan & Nehru Place branch of Union Bank of India

Who's eligible
The applicant has to be an Indian citizen, holding a PAN card, and should not have any previous flat allotted. He/she can submit only one application. There's no income upper limit. Only one member of a family can apply

How to register
You need to deposit Rs 1.5 lakh, along with the form. DDA will refund this registration amount within a month of the draw if the applicant fails to qualify Selection process. DDA will scrutinise forms within three months of the last day of application. It will hold computerised draws to declare the results


Highlights
DDA has alloted 3,71,215 flats, in all categories, under 42 schemes launched in the Capital so far.

In 2006, it put up 3,000 flats and received 1.9 lakh applications. This time, 5,000 flats are up for sale and DDA expects the rush to be bigger

THE PRICE FACTOR THREE-BEDROOM FLATS
• Pitampura | 216 flats, 125-150 sq m, Rs 42.7-49 lakh
• Dilshad Garden, R Block | 100 flats, 99.57-113.65 sq m, Rs 31.5-34.5 lakh
• 16 flats in Narela, Rs 24.3- 25.4 lakh
• 10 flats in Paschim Vihar (Rs 31.1-31.5 lakh)
• Six in Dwarka (Rs 42.3-Rs 43.8L)
• Three in Motia Khan (Rs 68.9-Rs 77.8 lakh)
• One flat at Rs 47.7 lakh in Vasant Kunj

TWO-BEDROOM FLATS
• 490 flats in Vasant Kunj area, 70.53 sq m to 86.66 sq m, Rs 21.3 lakh to Rs 35.1 lakh
• 100 flats in Dilshad Garden | 65.17-82.58 sq m, Rs 18.3-23.2 lakh
• 93 flats in Rohini | 79.88 sq m to 94.26 sq m, Rs 21.8-28.8 lakh
• 77 flats in Dwarka and Malviya Nagar Ext | 67.6 sq m-128.6 sq m, Rs 20.2 lakh to Rs
• 42.9 lakh

ONE-BEDROOM FLATS
• 1,640 flats in Rohini sector-28: 45.39- 47.66 sq m, Rs 7.95-8.4 lakh
• 800 flats in Lok Nayak Puram: 42 to 44.33 sq m, Rs 10.2-10.9 lakh
• 305 flats in Vasant Kunj: 43.92 to 47.93 sq m, Rs 10.8-Rs 11.8 lakh
• 281 in Rohini Sector 18: 39.39 to 49.54 sq m, Rs 8.95-Rs 15.5 lakh
• 177 flats in Dwarka sector 18 B: 44.9 to 53.49 sq m, Rs 10.5- 11.9 L

EXPANDABLE FLATS
191 flats in Narela: 62.5 to 63.88 sq m, Rs 17.1-17.5 lakh

Office rental prices might not see any major fall across the country's major business hubs-National Capital Region (NCR), Mumbai and Bangalore - even as the commercial realty markets in these areas are expected to witness a significant surge in supply, a leading real estate consultancy firm CBRE in a report. Bangalore is expected to witness further rise in the office rentals but those in Delhi, Gurgaon and Noida as well as Mumbai are expected to remain mostly flat in the short to medium term.

Big real estate firms are planning to invest in Gwalior which will give the historical town a facelift in five years. Many companies have plans for Counter Magnet City, which falls under the National Capital Region. Gwalior was designated as Counter Magnet City in the NCR plan, 1989. It is one of the five Counter Magnet Cities that are to play a role in reducing population pressure on the growth of the capital region and Delhi. But red tape is choking investors’ interest. Inordinate procedural delay in land allotment is increasing cost pressure for investors. The officials are now declining big firms' proposals. Though the Special Area Development Authority (SADA) of Gwalior is close to the final stage of land allotment process for developers, there are still a number of issues that still block the development of an area of 30, 000 hectares, where CMC will take shape. The SADA has been accused of delaying land allotments. "We go by rules, there are real estate players who want land but we offer them only through bidding. Big companies like Sahara and the Ansals have allotted land through bidding," said Mr. Jai Singh Kushwala, Chairman of the SADA.