The Uttar Pradesh government has chalked out a plan to fast-track the completion of stuck housing projects by offering a relief package to the developers of stalled projects. As part of this package regarding rescheduling of dues, the authorities will waive off Rs 14400 crore dues of the developers who collectively owe three development authorities of Noida, Greater Noida, and Yamuna Authority, in excess of Rs 50000 crore.
The proposed package is in line with the recommendations of the Amitabh Kant committee and will benefit around 2 lakh homebuyers in Noida who have been facing long delays in the possession of their homes due to the ongoing imbroglio between developers and development authorities of Gautam Budh Nagar over pending dues. So much so that even the registrations of completed projects have been stuck due to this stalemate, depriving the home buyers to take possession of their homes.
It may be mentioned that out of the Rs 52000 crore of the dues to be paid to the three development authorities of Gautam Budh Nagar, developers need to pay Rs 26570 crore to Noida Authorities while Greater Noida authority and Yamuna Expressway Authority, have to respectively pay Rs 14309 crore and Rs 4700 crore. The authorities are considering waiving off Rs 7400 crore of Noida Authority’s dues, Rs 6000 crore of Greater Noida Industrial Development Authority (GNIDA) and Rs 1000 crore of Yamuna Development Authority.
The Amitabh Kant Committee besides recommending rescheduling of the developers’ dues, had recommended co-developer policy to facilitate under-construction projects. The other recommendations included a 3-year extension to complete projects without extra charges, delinking builders’ dues from flat registries and calculation of developers’ dues on the basis of SBI MCLR rate from June 2020. As per the Kant panel recommendations, only those developers can avail the relief package who upfront clear 25% of their dues while the remaining dues can be paid over three years.
Meanwhile, in a related move, the Yogi government in Uttar Pradesh has expedited the completion of projects at the upcoming Medical Device Park in Sector 28 Greater Noida in order to drive industrial and economic growth. The Yamuna Expressway Development Authority (YEIDA) is focusing on expediting completion of nine major construction works at the park including Electronic Assembly Facility, Export-Promotion Incubation and Excellence Skill Development Incubation Centre, Lab Mechatronics and Administrative Office Block.
Signature Global ‘s Rs 2500 Crore Investment Plan For Gurgaon Residential Market
Buoyed by its Hi FY24 performance with pre-sales registering 37.6% growth, Gurgaon-based leading real estate developer of NCR, Signature Global is preparing to invest Rs 2500 crore to develop 6 million sq ft of residential area during the second half of this financial year.
According to Pradeep Aggarwal, Chairman, Signature Global Group, this investment plan is in line with the company’s strategic policy to develop micro-markets of Sector 37-D and Sector 71 in Gurgaon along with Sohna. The residential development in Sector 71 will be a mixed-use project comprising residential and commercial developments. The total cost of the project including land and construction cost will be Rs 1950 crore.
Significantly, Signature Global is in a comfortable cash flow position in the backdrop of a successfully launched Rs 730 crore IPO. The company has been able to reduce its debt by over 65% to Rs 362 crore.
Macrotech, Prestige Estates and Oberoi Realty in Expansion Mode
Three big listed real estate companies- Macrotech, Prestige Group and Oberoi Realty are entering into newer cities as part of their expansion plans.
Mumbai-based Macrotech Developers has worked out plans to invest Rs 800 crore in two housing projects in Bangalore where it had forayed last year through a joint venture agreement. While the company has recently launched its first residential project, it is chalking out plans to launch the second project in the first quarter of the calendar year 2024.
According to Abhishek Lodha, Managing Director & CEO of Lodha Group, considering the high potential of the Bangalore market, the company has plans to launch multiple projects in the city by leveraging the asset light model of joint development with land owners.
Bangalore- based leading developer, Prestige Group has chalked out ambitious plans to expand its retail portfolio, after it had sold 7 of its malls spread over 4.4 million sq ft to Blackstone-backed Nexus Malls.
Prestige Group wants to beef up its current portfolio of 4 operational malls in Bangalore and Kochi with 8 more malls in Bangalore, Kochii, Chennai and Hyderabad. According to Muhammad Ali, CEO, Forum Malls of Prestige Group, in line with the current demand trend, the company will be developing mega malls of over 10 lakh sq ft, with plans to develop 13 million sq ft of retail by 2026-27. Some of these malls will have a hospitality segment in the form of hotels.
Two new malls are to be launched shortly in Mumbai and Goa, following it up with a mall in Delhi-NCR.
Mumbai developer Oberoi Realty is also expanding into Delhi-NCR , starting with its foray into the high-potential residential market of Gurgaon. The company has bought a 15-acre land in Gurgaon for the luxury residential project to be launched next year.
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