NRI Hills-International City at Jaipur

Average NRI real estate project sizes have shot up from around Rs 30-60 crore, when the realty boom began three years ago, to between Rs 500 and Rs 2,500 crore today. Largely because of a far larger scale of these projects.

From now, despite the 200% growth since the past 3-4 years, real estate projects (whether residential, commercial or retail) are expected to reach astronomical levels of a colossal 1,000%. That’s one of the key reasons why rates across the board are shooting through the roof. The first phase of the 2,504 acre hi-tech township by Ansal Properties and Infrastructure Limited in Greater Noida, for which it has signed an MoU with the Uttar Pradesh government, is estimated at a whopping Rs 20,000 crore.

Natraj Buildwell Ltd has launched NRI Hills-International City at Jaipur at a cost of Rs 1,000 crore. The cost of Alpha G:Corp’s project, Alpha International City, Karnal is estimated to be Rs 600 crore. The various projects of Parsvnath launched recently are pegged at Parsvnath Privilege at Greater Noida (Rs 325 crore), Parsvnath City at Dharuhera (Rs 450 crore), a 5-star hotel and multiplex-cum-mall at Vijalpur, Ahmedabad (Rs 250 crore) and a mall at Rohini (Rs 231 crore). The project cost of Pearls Gateway Towers at Noida is said to be around Rs 450 crore. Is this another sign of the real estate industry coming of age? “To a certain extent, yes,” says Manish Uppal, MD, Uppal Housing, “but the factors that are contributing to a rise in project costs include rising prices of cement and the efforts by developers to offer newer and more modern amenities to the customers. The conservative approach in designing is giving way to experiments in the choice of raw material and adoption of methods in energy and space conservation.”

Included in the investment costs is the cost of land (which has risen from Rs 1,200 per sq ft to Rs 2,500 per sq ft), overhead costs and marketing and brand strategies. Adds Navin M Raheja, MD, Raheja Developers Pvt Ltd, “India is witnessing a process of rapid and mass urbanisation and with the wholesale price index set to increase by 300-400% in the next 2 decades, the process will be more perceptible leading to higher inflationary tendencies. The consequential boom in real estate has its own associated nuances. Real estate project costs for NRIs have increased on account of across the board increase in land prices and other input costs like the raw materials, steel, iron, timber, cement, plastic, rubber etc.”

Source:Financialexpress