NBCC to launch affordable housing scheme today

NEW DELHI: If you wish to have a house in the Capital, wait for a few days as the National Building Construction Corporation is all set to launch a  massive scheme for affordable housing in major cities, including Delhi and the NCR region.

At a time when private builders and developers are reeling under the global economic downturn, NBCC’s scheme is set to be a hit as it offers three-four bedroom flats within a price band of Rs 25-45 lakh.

Under the scheme, proposed to be launched on Wednesday, the construction sector PSU will offer around 1,300 houses in the first phase in the NCR region — Gurgaon, Noida and Ghaziabad.

According to Arup Roy Chaudhury, CMD, NBCC, the flats which will be within the basic price band of Rs 25-45 lakh will have all modern facilities. The specifications will be on par with those offered by private builders.

Sources pointed out that NBCC is also contemplating creation of separate enclaves for plotted development including town houses and villas in the affordable price range in the NCR region, most likely in Ghaziabad.

An official said that the scheme will initially be open for government, state and central public sector employees and later extended to the common public. The PSU will concentrate in areas that attract good response to the scheme.

“We are keeping up with our promise to deliver affordable housing in Capital and NCR region and also in other cities like Kolkata, Kochi and Patna,” the NBCC chief told TOI.

Sources in NBCC said that land is now being acquired for the purpose in Delhi, Gurgaon and Noida. Also, the agency is keen to buy five other plots at a reserved price offered under the group housing scheme for which the Noida authority failed to find private players.

As the realty sector is badly hit by the economic downturn, providing affordable housing in Delhi and the NCR has become the top priority for private and public sector real estate developers and agencies.

The PSU, which has registered a high profit, is also likely to launch similar scheme in other cities — Kochi, Patna and Kolkata.

“Housing at affordable prices has been made possible by NBCC due to its adoption of forward costing method and a transparent mechanism by clearly identifying the super area loading so that any individual buyer is not confused by these issues while booking a house or flat,” Chaudhary said.

Source : http://timesofindia.indiatimes.com/Delhi/NBCC_to_launch_affordable_housing_scheme_today/articleshow/4184871.cms

SBI launches new home loan schems

CHANDIGARH: V. Murali, Gener al Manager, State Bank of India, Chandigarh Circle flagged off the Mobile Publicity Van from SBI Zonal Office, Sector 5, Panchkula displaying two Home Loan Products i.e. SBI happy home and SBI life style.  The Publicity Van would be visiting in and around Panchkula for one month from Wednesday.

The publicity material giving details of the schemes will be available with the van.  Public can seek clarifications for their queries regarding both schemes. Speaking on the occasion Sh. Murali said that the Bank expect a good response from the public to these products.

SBI happu home and SBI life style loan is available at 8% (fixed for one year).  No processing fee will be charged on these loans.  While SBI happy home loan scheme will cater to the needs of those who need a home loan, SBI life style scheme will enable the Home Loan borrowers to get a loan at 8% (fixed) for one year to meet short term expenditure, which adds comfort to the life style of the borrowers, such as vacation travel, purchase of gold and life style goods.  This is good opportunity for those paying high interest rate to switch over to lower rate with SBI.  State Bank of India has also reduced interest rate on new car loans to 10% p.a. for a period of one year.

Source : http://www.punjabnewsline.com/content/view/15431/38/

Alila Hotels To Open 6 Properties This Year

Alila Hotels and Resorts is set to expand its footprint in Asia with six new properties slated to open this year, which will include the launch of three Alila Villas properties, the new generation of resorts that deliver ultra luxury in design, space and bespoke hospitality combined with innovative lifestyle concepts.

“These upcoming properties represent a significant milestone in the growth of Alila in both established and emerging destinations across the region,” says Frederic Flageat-Simon, Managing Director and Chief Operating Officer of Alila Hotels and Resort.

The six new properties will expand Alila’s existing presence in Indonesia and Thailand, as well as mark the group’s first venture into the Maldives and India. They include:

Alila Villas Uluwatu, Indonesia—a spectacular resort designed by award-winning WOHA Architects, located along the southernmost coast of Bali on the Bukit Peninsula. It offers clifftop resort living with panoramic views over the Indian Ocean. This will be the debut of Alila Villas, come June 2009.

Alila Villas Hadahaa, Maldives—located on a remote tropical island in the North Huvadhoo Atoll. Designed by SCDA Architects, its beach and water villas capture the ultimate Maldivian experience of tranquility and space. The resort’s very own dive centre will offer unique diving experiences in the region’s unexplored waters. Alila Villas Hadahaa will open in July 2009.

Alila Hansar Koh Samui, Thailand—a stylish beachside resort located along the picturesque Bophut Beach. A fusion of contemporary Thai design and luxe comfort, complete with destination dining and spa wellness heralds Alila’s entry into this popular holiday island in third quarter of 2009.

Alila Diwa Goa, India—sited on the beautiful Majorda Beach in south Goa, the resort fuses traditional architecture with understated elegance, tastefully complemented with varied options and recreational zones for family activities. A strong wellness component is evident in the living concept with emphasis on local culture and environs as can be seen in its destination dining restaurant and show kitchen. The resort with its comprehensive event centre will open in September 2009.

Alila Villas Soori, Indonesia—luxury residences right along the southwest coast of Bali, near the island’s famous Tanah Lot Temple. Designed by award-winning SCDA Architects, its vibrant mix of spaces for living, relaxation and spa wellness embrace Bali’s unique balance of tranquility and vitality. Surrounded by a stunning landscape of verdant rice terraces and stretches of beautiful black-sand beach, this villa resort will open in November 2009.

Alila Hansar Bangkok, Thailand—combines ultra-luxe residences and intimate boutique hotel services in the heart of the Thai capital. Its mix of urban sophistication, new-age lifestyle concepts and high-tech business lofts will make Alila Hansar Bangkok one of the premier meeting places for business and leisure in the city. Opening in last quarter of 2009.

Alila’s reputation for design innovation and warm hospitality encompassing fine living, dining and wellness into rich destination experiences has hit the high note with many discerning travelers. Its commitment to minimizing its impact on the natural environment and helping local communities has already seen several of its hotels achieve the prestigious Green Globe certification.

With Alila Villas, the company introduces a new generation of exclusive timeless properties, developed in some of the most naturally spectacular locations. Designed by award-winning architects and crafted by artisans, Alila Villas will offer an unprecedented level of private space, personalized hospitality and culturally enriching destination and lifestyles experiences for its guests.

The opening of these six properties will double Alila’s current portfolio of hotels and resorts, which are Alila Ubud, Alila Manggis, Alila Jakarta and Kemang Icon by Alila in Indonesia, Alila Cha-Am in Thailand and 3 Nagas by Alila in Laos.

Meanwhile, Alila is also presently developing hotels and resorts in China, Oman and the Gulf region.

Source : http://www.hotelsmag.com/article/CA6639962.html?industryid=47562

Realty prices fall by 10-40 per cent

It’s here. After talking of a rebound, putting up with stagnation and offering freebies and discounts, developers hit by a demand crunch and economic slowdown are biting the real bullet, lowering prices in key apartment zones in or around Delhi, Mumbai, Bangalore and Hyderabad.

Real-estate prices across the country have fallen by 10-40 per cent. And while prices vary depending on location, size, quality, amenities and time of possession, there are clear indications that the earlier price surge created by speculation and high growth has petered down. Developers are generally still not cutting prices of existing projects, but they face a market in which re-sales could do much the same thing.

The country’s second-largest builder, Unitech, is planning new projects in the suburbs of Noida and Greater Noida at Rs 2,000-2,500 per sq foot (psf), according to a spokesperson. This is the same area where market players say prices were roughly twice as much a couple of years ago.

“It makes perfect sense for industry leaders to rationalise project prices,” said Anuj Puri, country head at real-estate consultancy firm Jones Lang LaSalle Meghraj. “That is the need of the hour.”

Market players say in the Gurgaon area, well-developed zones have over the past year seen rates slump by 8-12 per cent, but remote areas are seeing a crash of 20-35 per cent.

For example, a plot in Sushant Lok Phase II today sells at about Rs 23,000 per sq yard compared to Rs 30,000 only six months ago, a fall of 23 per cent.  However, genuine deals are few because buyers are waiting for a further fall, while sellers are hoping for a rise.

In Noida, flats that went at Rs 5,000-6,000 psf a year ago now come for Rs 3,500-4,200, while in Greater Noida, the fall has been from Rs 3,000-3,800 psf to Rs 2,000-2,800 psf.

DLF is already selling a project in the New Gurgaon area that covers locations like Manesar at Rs 2,200 psf. A company spokesman said prices had dropped by at least 10 per cent in Chennai and by 25 per cent in Bangalore. Developers are not sure if there would be a similar fall in the North.

Buyers in Mumbai and Pune could expect a further 10 per cent reduction in prices, Puri said. In the Mumbai-Pune zone, realty prices for ongoing projects have already crashed by 25 to 40 per cent in the past six to nine months, say local market players.

“It’s difficult to predict the bottom (of prices),” said Niranjan Hiranandani, managing director, Hiranandani Constructions. “I don’t think prices will reduce further.”

In Pune, prices have come down to  Rs 2,200-3,000 psf from about Rs 4,000 earlier. “The market has touched more or less 2005-06 price levels and unlike other places the conversion (deal) rate is high in Pune,” said Lalit Kumar Jain, chairman, Kumar Builders, a developer from Pune.

Prices in Navi Mumbai were zooming till 2007 with escalations in the region of 70-100 per cent in two years. But over the past year, a 20-30 per cent fall is clearly visible. “We have reduced our rates from Rs 7,000 psf, at which we sold six months ago, to Rs 4,700 now,” said Om Gehlot, whose project Gehlot Majesty is situated on Navi Mumbai’s Palm Beach Road.

Source : http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName=HomePage&id=a2b277d8-45a0-4d46-aeb1-3893a5a40e39&MatchID1=4934&TeamID1=3&TeamID2=1&MatchType1=1&SeriesID1=1248&MatchID2=4925&TeamID3=4&TeamID4=2&MatchType2=1&SeriesID2=1244&PrimaryID=4934&Headline=Realty+prices+fall+by+10-40+per+cent

FSI doubled for cessed buildings

MUMBAI: Striking the right chord just before the elections, the Ashok Chavan government on Wednesday decided to double the floor space index (FSI)  to 4 for Mumbai’s over 16,000 old, cessed buildings. The FSI determines the developable space vis-a-vis available area.

Cessed properties are those buildings that were constructed prior to 1960. The government collects cess from the residents of these buildings. At least 5,000 out of the total 16,000 buildings are over a 100 years old.

The decision, besides being a bonanza for the real estate sector, could benefit lakhs of residents living in precarious conditions in Mumbai’s decrepit buildings. The state Cabinet, at its weekly meet on Wednesday, decided to increase the FSI, which was earlier in the 2-2.5 range, to 4 now.

“The move is aimed at expediting the redevelopment of these buildings. Today’s decision will pave the way for this process,” Mr Chavan said after the meet. The issue was hanging fire for quite a few years.

The Mumbai Building Repair Reconstruction Board had planned to redevelop old and dilapidated buildings two years ago, but the project never took off because of the builders’ demand for extra FSI.

The issue was also stuck in a legal tangle. The Bombay High Court, in 2006, restricted the redevelopment of old buildings after residents objected to the construction of buildings that were less than two metres of each other. The Supreme Court, on September last year, ruled against the November 2006 Bombay HC directive restricting the redevelopment of cessed property in Mumbai.

The apex court also set aside the HC order and waived all HC-imposed restrictions. Among these were compulsory open space, Mhada certification and approvals from new committees.

The redevelopment of these buildings then awaited chief minister Mr Chavan’s approval which finally came on Wednesday.
“The timing of the decision is crucial,” a government official noted indicating that the political exigency was behind the decision.

Source : http://economictimes.indiatimes.com/News/PoliticsNation/FSI-doubled-for-cessed-buildings/articleshow/4192725.cms

Affordable housing for poor under JNNURM

New Delhi, Feb 26: The benefits of vibrancy in real estate sector has eluded the weaker and marginalized sections of society, the top official of Housing and Urban Poverty Alleviation Ministry said here today.

Of the estimated shortage of 24.71 million at the beginng of the 11th five year plan, more than 98 per cent accounts for economically sections alone, said Kiran Dhingra, Secretary in the ministry.

“In the great rush of the real estatre, the interests of the urban and rural poor are getting further constrained”, she said while laying the foundation stone of a Rs 300 crore Hudco project.

With growth in urbanization, land prices have touched a record high due to massive real estate activities but allocation of land for the poor was further reduced, Dhingra said adding lack of adequate recoveries and cap on government guarantees have further discouraged local and state governments to take up major housing schemes for the poor.

Therefore, the government is taking steps to provide affordable housing to the economically weaker sections of society in urban areas, she said.

A comprehensive programme under JNNURM for affordable housing for the poor in cities and town with special attention to the needs of slum-dwellers is being undertaken, Dhingra said.

Source : http://www.samaylive.com/news/affordable-housing-for-poor-under-jnnurm/611084.html

Choice Hotels India opens Quality Inn Sabari Resorts in Kodaikanal

Quality Inn Sabari Resorts is the first branded hotel in Kodaikanal, spread over an area of 2 acres with 50 rooms. New hotel boasts of tastefully done, Wi-Fi enabled, spacious and elegant rooms that are customized to the needs of Leisure/Business traveler.

“Rendezvous”, the all day dining restaurant serves exotic gastronomic delights, with a-la-carte specialties in an ambience surging with energy & warmth. “Grammy” is sprawling sensual well stocked bar that offers sumptuous array of gourmet tidbits. In addition, hotel has well equipped conference and banquet facilities.

Choice Hospitality India also markets two other properties of Sabari Inn Pvt. Ltd.- Quality Inn Sabari with 72 rooms and Quality Hotel Sabari Classic with 81 rooms in Chennai. Quality Inn Sabari is centrally located in T. Nagar, close to commercial districts and important consulates whereas Quality Hotel Sabari Classic is situated in the midst of IT Park at Navalur at Chennai- OMR.

Mr. Vilas Pawar CEO, Choice Hotels India said “Our relationship with Sabari Group was inked over 5 years back when CHI signed Quality Inn Sabari and got further strengthened with Quality Hotel Sabari Classic in 2007. After Quality Inn Sabari and Quality Hotel Sabari Classic in Chennai, CHI is proud to be associated with Sabari Group for their new property in Kodaikanal – Quality Inn Sabari Resorts. The launch of this new property would further strengthen our ties by adding new hotel in CHI portfolio.”

He further added “We look forward to associate with Sabari group for their upcoming hotels in Coimbatore, Bangalore, Pune and Hyderabad. The Coimbatore hotel would be ready for operations by the end of this year, Bangalore by end 2010 and Pune in the first quarter of 2011.”

- End -

Choice Hotels India is part of Choice Hotels International, one of the largest and most widespread lodging franchisors of the world with over 5000 hotels across the globe.

Today Choice Hotels India is one of the fastest and finest growing hotel chains with 25 properties over 18 destinations in India and another 15 properties under different stages of development. These hotels are in various destinations including New Delhi, Mumbai, Chennai, Ahmedabad, Bangalore, Hyderabad, Jaipur, Lucknow, Trivandrum, Shimla, Manali, Corbett, and Pune, Nashik, Chiplun, Vijayawada. Its presence in all the gateway cities proves that the chain is widely accepted by business as well as leisure travelers who recognize and trust the brand.

Source : http://www.indiaprwire.com/pressrelease/leisure-travel/2009021920040.htm

DLF cuts OMR project prices

DLF Homes has slashed prices at its residential project Gardencity DLF OMR for existing customers and new buyers.

According to an official press release from the company, it has revised the basic selling price to Rs 2,750 a sq.ft for new customers for the project that was launched last April at Rs 2,800 to Rs 3,200 a sq.ft. It has announced an additional concession as an early bird offer of Rs 2,650 a sq.ft up to May 31.

Other charges, like preferred Location and parking, remain unchanged. The company has also reset the selling price for its existing customers apart from a special one-time delayed payment interest, the release said. The price is lower by about Rs 300 to about Rs 600 a sq.ft.

CUT RATE

Effectively, customers can expect a minimum cut of about Rs 3.75 lakh at the lowest scale of reduction of Rs 300 on the smallest apartment of 1,250 sq.ft.

DLF has said that the project is on schedule and all approvals from the Directorate of Town and Country Planning, including planning permit and stamped drawings, are in place. According to officials, DLF is “readjusting to market realities.”

When the 53.5-acre project was launched on Old Mahabalipuram Road, about 20 km south of Chennai, a year ago the economic scene and the sentiment in the market were radically different, apart from the costs involved. But now with the slowdown, along with the drop in the cost of construction following the drop in commodity prices, the company is passing on the benefit to the buyers and doing its bit to stimulate the market.

The Government and banks have supported the real estate sector – the combination of drop in interest rates and the lower prices will help buoy demand, they said.

Source: The Hindu Business Line

Ten more SEZs get nod

The UPA government, in its last meeting on its flag­ship special economic zones policy, cleared 10 more proposals for such tax-free zones, taking the total number of SEZs in the country, after the enforcement of SEZ Act and Rules, to 714.

The commerce ministry expects exports from SEZs to touch Rs 90,000 crore by this fiscal-end. Exports from SEZs in April-December 2008 have touched Rs 67,000 crore, which is more than the Rs 66,638 crore in the whole of 2007-08. “There is a little bit slow­down but we think we will cross Rs 90,000 crore,” commerce secretary GK Pillai said. SEZs approved by the Centre include Navi Mumbai gems and jewellery SEZ, promoted by an aide of Reliance Industries chairman Mukesh Ambani, and L&T’s shipbuilding SEZ.

The board of approval (BoA) for SEZs, also gave its approval for an application to merge three notified SEZs of the Adani group—4,846 hectare (Mundra Port SEZ I) and 1,074.17 hectare (Mundra PortSEZII),as well as 293.88 hectare Adani Power SEZ -taking the total area of the combined zone to 6214.05 hectare. The total investment proposed for this SEZ is Rs 100,000 crore and the zone is expected to provide employment to 5 lakh people over the next 1O years.

This is the first time since April 2007—when an empowered group of ministers (EGoM) fixed the 5,000-hectare cap on the maximum area for a special economic zone (SEZ) following protests against forcible land acquisition for the zones that the Centre has given the nod for a tax-free enclave to breach this cap. Earlier, the EGoM had given the green signal for the same application.

The BoA agreed to the contention of the Adani group that since the notified areas of all three SEZs are contiguous, treating all the three SEZs as one SEZ would help prevent duplication of administrative requirements, do away with the need to create separate boundaries for each SEZ and also ensure that the developers can now build seamless infrastructure connecting the three SEZs.

The BoA also approved the proposals for 11 investors to join as co-developers, including six in the Mundra SEZ. The co-developers in Mundra SEZ would help develop schools (including one by the Delhi Public School ), colleges, hospitals and a 2300 mw power project (of which 300 mw will be commissioned next month. The SEZ will house a railway line, an airport and a port. It will be a part of the Delhi-Mumbai Industrial Corridor (DMIC).

The DMIC project, jointly developed by India and Japan, would entail an investment of $45-50 billion. Pillai told reporters after the BoA meeting, “five years from now it (Mundra SEZ) will be one of the show-pieces.”

Besides, the BoA has cleared a proposal on some technical complications involved in the Essar steel SEZ. Earlier, the Centre had decided against withdrawing the approval given to Essar and Mundra SEZs. The finance ministry had earlier alleged that these SEZs had violated the rules regarding vacancy of land.

Meanwhile, the commerce ministry has decided to give in-principle approvals (for viable proposals without the required land) only to proposals for multi-product SEZs and not to sector-specific or IT/ITeS SEZs.

Source: The Financial Express

International reInternational real estate portal re-launched with new look and feel and housing over 45000 property listings

(1888PressRelease) February 24, 2009 – Due to the ongoing market conditions, credit crisis, and downturn in the economies around the world, many real estate investors are hunting for cheap properties abroad and inexpensive properties overseas. This is an opportune time for real estate bargain hunters. LoftyVistas.com is ideally positioned to cater to such real estate investment plans and goals due to their many cheap property listings in various countries including Egypt, Turkey, Thailand and Caribbean. Bargains are also available in previously booming markets like Dubai. It is worth emphasizing that many properties are selling at recently discounted prices, and the final selling price maybe even lower than that listed in the portal since sellers are closely and constantly monitoring the pulse of the markets and adjusting the prices accordingly.

“Loftyvistas.com wants to be your leading online source for international investment properties and real estate investments, properties for a second or third home, or vacation properties in countries including Turkey, Egypt, UAE (Dubai, Abu Dhabi), Thailand, Spain, India, Malta, Panama, Singapore, Caribbean, USA (Florida) and others. The property types on our portal include villas, apartments, condos, houses, hotels, land, farms, vacation properties and rentals.”, said CEO Chandra Rajaraman.

They list a wide variety of residential and commercial real estate properties. They want to be like Multiple Listing Service (MLS) for those countries which have no MLS. They have over 45,000 property listings from 70 countries and site visitors are from 161 countries. In some countries like Turkey, they have over 10,000 listings. They have over 1300 registered sellers, many of whom are large real estate developers, builders, agents and companies in the previously mentioned countries, looking for local and international / overseas buyers for their fine properties of all types.

In addition to inexpensive properties, LoftyVistas.com has many fine land and hotel listings in Turkey, Egypt, Dubai and Thailand for real estate investors with deeper pockets. They also welcome people who wish to buy a property in a foreign country to retire there due to a variety of reasons including lower cost of living, natural beauty, and fine climate. To summarize, LoftyVistas.com has properties of various types and property sizes, for all budgets, and in numerous locations in many countries. Beachfront properties as well. The portal is available in six languages – English, German, Spanish, French, Russian, Arabic.

“It is a buyer’s real estate market around the world, so sellers are desperate in many countries to find buyers, and LoftyVistas.com is glad to provide an additional, effective avenue for sellers to promote their properties online to a global universe of buyers”, said CEO Chandra Rajaraman.

LoftyVistas.com wants to be the leading online business directory/guide for businesses affiliated with real estate including builders, plumbing companies, home insurance companies, fencing companies, home appliance makers, and others. To achieve this goal, they allow real estate-related businesses to have business listings on the site for their clients to find them online.

“We have created easy to use wizards to enter property and business listings, and our data entry team is also available to enter them for you if you are challenged by the interface. We will support standards-based XML data feeds for entry of listings in future.For buyers, we have advanced search forms to sift through the large repository of property listings”, said CEO Chandra Rajaraman. LoftyVistas.com allows 20 images/pictures and 2 PDF/Microsoft Word attachments to each property and business listing.

LoftyVistas.com would also like to build an online real estate community. To achieve this goal, they have incorporated blog and forum functionalities to the site. The blogs are a repository of news releases related to real estate, useful and interesting articles on real estate, real estate market trends in many countries of interest to potential buyers and How-to Guides for purchasing real estate in many countries including Turkey, UAE(Dubai, Abu Dhabi), India, Malta, Egypt and Thailand. Site visitors are encouraged to add more useful content to the blogs and forums.

Source : http://www.1888pressrelease.com/international-real-estate-portal-re-launched-with-new-look-a-pr-101324.html

Property prices stagnant but not dropping in Goa

While property prices in the country as a whole are tanking fast, real estate in Goa is presently stagnant, but are yet to go down significantly, say real estate developers. Over the last four years, Goa has attracted huge investments for holiday homes from overseas Goans, NRIs and wealthy North Indians.
Real estate operators say that property with a good ‘sea view’ is always in demand. Earlier, though, properties in interior Goa with a reasonable proximity to a city were also in great demand, sending land prices soaring.

The big property boom started in 2003, and never stopped till the US-based Lehman Brothers went bankrupt late last year. For example, land prices in Panjim nearly doubled in the last year. Other places, too, have seen better-than 20 per cent annual increases.
Since October, though, real estate demand has dropped to half, owing to the global recession and statewide protests against mega-projects. This has stabilised property prices, which have reduced by a minor 5 to 10 per cent. However, the industry expects property prices to drop by 20 to 25 per cent in the coming months, especially from small developers, who are not in a position to hold on.
Many of these small developers are from Delhi and Mumbai. They joined the gold rush to develop property in Goa but have now run out of money and are left with unfinished projects, thanks to the credit crunch. They have been the first to drop rates and resort to panic sales.

Reputed developers are hurt badly, but still prefer to hold on. They feel the present slump is the result of panic, and since land with clear titles is scarce in Goa, the prices are bound to recover and stabilise, unlike in India’s big cities and metros. Consequently, even those who bought land at very high rates in the past few years are not willing to cut prices.

The next few months will tell whether they are right or wrong. Buyers, however, are very scarce at present.

So, one sees a paradoxical situation of sellers who are unwilling to drop prices, even though there are no takers for their properties. We will have to wait and see which one blinks first

Source : http://oheraldo.in/pagedetails.asp?nid=17683&cid=2

Languishing Projects

Kundli is another upcoming locality just beyond the National Capital Region (NCR), strategically situated on NH 1 as one exits Delhi to go to Sonepat in Haryana. Easily accessible from Rohini in West Delhi, Kundli promises to be another Gurgaon within the next 2-3 years, hopefully with better roads. However, the market is facing a slowdown much like the rest of the NCR region in these difficult times for the real estate sector.

Homes in this area have been developed to primarily cater to the middle class segment. TDI City, a project of Taneja Developers and Infrastructure, contains plots of area 250 square yards, 350 square yards, 500 square yards and 700 square yards. Secondary market rate of plots is Rs. 9000 to Rs. 12000 per square yard and flats are priced at Rs 1350 to Rs. 1400 per square foot. Kingsbury Apartments is an instance of an apartment complex in TDI city with impressive designing and architecture. A 2-BHK apartment of area 1110 square feet within this complex costs Rs. 2050 per square foot. A 3-BHK home of area 1625 square feet is priced at Rs. 2000 per square foot while a 4-BHK flat of area 1930 square feet costs Rs. 1950 per square foot.

Located just 4.5 kilometres from the Delhi border on NH 1, Sushant City has been developed by the Ansals, over an area of approximately 250 acres. Plots of area 194 square yards, 215 square yards, 431 square yards up to 718 square yards are available. Homes with built up area of 1180 square feet, 1533 square feet and 2198 square feet are available. Sunshine County is another residential complex offering 17 towers with 12 flats in each tower. 2 and 3 BHK flats of area 1141 square feet and 1615 square feet respectively can be bought here at a rate of Rs 1450 per square foot.

The Kundli-Manesar-Palwal Expressway, the country’s largest expressway project covering 135.6 kilometres, is scheduled for completion by July 2009. This would make Kundli all the more accessible. The expressway will provide high-speed link between northern Haryana and southern districts such as Jhajjar, Gurgaon and Faridabad. The Expressway is to be built on build-operation-transfer basis (BOT) and takes off from NH-1 in Kundli (Haryana). At present it takes at least two-and-a-half hours to travel from Kundli to Gurgaon. Once the Expressway is complete the stretch can be covered in an hour. Kundli might also become a major education with the development of Rajiv Gandhi Education City. “The last 2-3 years saw a good increase in demand for homes in Kundli. However, the market has stagnated now in spite of upcoming projects that would increase Kundli’s self-sufficiency and accessibility,” said Nitin Bhutani, marketing executive with Ansal Properties. “Prices have seen a correction of approximately 15 per cent,” he added

Source : http://www.expressestates.in/full_story.php?content_id=93711

Economy hotel players go ahead with expansion plan amid slump

At a time when the economic slowdown is eating into corporate earnings, the country’s economy hotels, including Krizm Hotels and Berggruen Hotels, are going ahead with their expansion plans.

Patu Keswani, the promoter of Krizm Hotels that runs mid and upscale hotel brands Red Fox and Lemon Tree Hotel, plans to add around 1,500 rooms in the next three years.

“Our plans of setting up new hotels are on schedule as we would bring them in operation by 2011. However, projects which have not got financial commitments are going slow,” says Keswani.

Keswani has already tied up for funds worth Rs 900 crore to invest in his projects. Of this, he will spend Rs 200 crore in creating a land bank.

Much of Keswani’s thoughts are endorsed by Berggruen Hotels CEO Sanjay Sethi who sees this present market as an opportunity to seal land acquisition deals at a lesser cost.

“Given the condition of the real estate market, we are still able to evince interest from the seller at a 20 per cent lesser offer that we are making. We will look at acquiring more properties in the next six months and scale up our operations. At present, we are pursuing six cities,” said Sanjay Sethi, CEO, Berggruen Hotels. The company would have four hotels in operation by this December.

Berggruen Hotels, an economy class hotel promoted by US-based Berggruen Holdings, entered the Indian market two years ago and plans to build 38 budget hotels under the ‘Keys’ brand in the next three years. While Sethi did not reveal the investments planned for the properties, Berggruen Holdings on its website says it typically invests up to Rs 500 crore in any transaction.

While occupancy rates for these players have remained over 65 per cent, construction cost for properties has also come down. Lemon Tree, however, has dropped its tariff in Gurgaon by 23 per cent to Rs 6,500 from Rs 8,500.

The cigarette-to-hotel major, ITC, would launch its pilot three-star hotel brand Fortune Lodge in the next few months. The company will set up around 15 Fortune Lodges in rural areas, where it has retail hubs — Choupal Sagar. The lodges will be built on the premises of Choupal Sagar, which is typically spread over 8-10 acres and have enough land to spare for a hotel.

The pilot Fortune Lodge will come up at a Choupal Sagar at Sehore, nearly 38 km from Bhopal in Madhya Pradesh. Approximate investment in building 15 lodges could cost the company around Rs 110 crore.

“We will soon launch our lodges. With many companies heading to rural India, we believe this proposition will work,” said a senior executive with ITC-Welcomgroup.

The company also plans to get into serviced apartments in around 21 locations across the country. The apartments will be christened Fortune apartments and will be managed. In metros it will be priced around Rs 5,000 and in tier-II cities it will be Rs 3,500.

However, smaller players such as Sarovar Hotel have decided to scale down their expansion plan. Sarovar Hotel will commence operation of 28 hotels in the next three years instead of its earlier plan of 65 hotels by 2012. It has also shelved its fund-raising plans of around Rs 800 crore through a special purpose vehicle.

Source : http://www.business-standard.com/india/news/economy-hotel-players-go-aheadexpansion-plan-amid-slump/00/02/349817/

India relaxes norms for foreign investors

Kolkata, India — Faced with a dire need for capital to sustain its economic growth against tightening global money markets, India last week announced new rules that open the floodgates to foreign direct investment.
The rules do away with various classifications restricting foreign investment in Indian companies, including allowing Indian company owners to tap non-resident Indians – which will no longer be considered foreign investment in calculating FDI stakes in local companies. Experts say that almost every sector of the Indian economy has effectively been thrown open to foreign investment.

Foreign investors will be permitted to increase their stakes beyond the earlier limits of 26 to 74 percent, depending on the specific industry. They may also hold up to a 98 percent stake in a company indirectly – through a holding company – in certain hitherto limited sectors like telecommunications, civil aviation and farming, provided the management remains with Indians.

The new rules have taken FDI reforms a step further by allowing foreign investors to use their share of profits from an Indian company to invest in another company in India or in another country. According to U.S. investors, this saves the trouble of raising fresh funds from home to invest in India. The new rules also allow FDI in certain sectors, like multi-brand retailing for instance, that were not previously open for FDI.

However, “sensitive sectors” like lotteries, gambling and betting, chit funds, and nuclear energy – which are not yet open to the private sector – remain out of bounds for foreign investors.

“The adoption of the guidelines will simplify, streamline and rationalize the method of calculation of indirect foreign investment across sectors,” said P. Chidambaram, former finance minister and now home minister, when announcing the guidelines.

“(The announcement) was a very powerful move by the government and a fairly powerful signal in the current turbulent times,” said Vivek Gupta of BMR Advisors, a global consultancy, in a comment to the media. “I think this move not only facilitates entry of foreign capital, which is non-controlling and which does not interfere with the government’s overall policy diktat, but it also makes available capital to Indian entrepreneurs and Indian companies.”

According to industry analysts, FDI allowed so far in high-growth sectors like insurance and petroleum refineries, at 26 percent each, and civil aviation at 49 percent, was hardly enough to meet the sectors’ funding needs.

Indeed, India claims that despite the global meltdown, its economy could still grow at 6 to 7 percent. But skeptics say that could be wishful thinking, against a background of continuing tight liquidity globally, resulting in falling FDI inflows.

For instance, the World Economic Forum and Confederation of Indian Industry said in a recent report that the global downturn is putting considerable pressure on the Indian economy for sustaining growth rates the country targets in 2009.

“India’s dependence on capital flows to finance its current account deficit is a macroeconomic risk and the global crisis could generate a sharp increase in capital outflows and a reduction in the availability of finance,” the WEF-CII report said.

FDI inflow numbers are discouraging. According to the government, total FDI during April-November 2008 was US$19.7 billion. Although this was 78 percent more than the US$11.1 billion received during the same period last year, most of it came before the downturn. Inflows started declining from October 2008, at US$1.4 billion, to US$1 billion in November 2008 and even lower thereafter.

“As of today foreign investors’ money is flying to the perceived safety of their home countries. Investors are wary of investing offshore,” said Shrawan Nigam, senior consultant at the Indian Council for Research on International Economic Relations. Estimates suggest that this year FDI inflows would be much lower, at US$25 billion or thereabouts, than the $35 billion target.

The current economic crisis has left Indian industry gasping for funds. According to the Securities and Exchange Board of India – the capital markets regulator, which recently made it mandatory for companies to disclose the amount of shares a company has “pledged,” or put up as collateral for loans – more than 310 local companies, including marquee names like Tatas and the Reliance Group, have pledged roughly US$7 billion worth of their controlling shares to fund their business needs.

The new FDI norms will clean up and establish a clear framework for Indian companies to raise capital, as well as increasing FDI flows into India, say experts.

Not everybody is happy about the relaxed norms, however. The biggest objections have come from the Communist Party of India, a powerful opposition party. The CPI says that the rules allow backdoor entry of FDI, since they allow companies in “sensitive” sectors – like telecommunications, media, ports and defense manufacturing – to legitimately breach the FDI limits by getting foreign funds through separate holding companies.

The other problem is that they create loopholes for India’s often corrupt administration to take subjective decisions. “These rules were announced without consulting the Parliament and we will oppose it,” said D. Raja, national secretary of the CPI, in a public statement.

Moreover, according to Nigam, the new rules may hardly make any immediate difference to foreign money inflows in the country. “Given the current financial scenario in the global markets, there may not be any rush of capital in a hurry. Maybe FDI inflows could increase after about two years, but certainly not immediately,” he said.

Still, what can’t be denied is that the relaxation takes India’s reforms a step forward. “There have been efforts to reform the system many times in the past, and those were blocked for various political and ideological reasons,” says Nigam. “The general consensus is that India needs to move toward taking a positive approach toward private investments, and the new FDI announcement is one such approach.”

Source : http://www.upiasia.com/Economics/2009/02/23/india_relaxes_norms_for_foreign_investors/4325/

100floors.com: The fastest growing realty portal

India’s leading real estate portal, 100floors.com, launched by Suksh Technology has emerged as the fastest growing portal in terms of number of page views per day, reach etc. The portal covers severalproperties across 15 Indian cities

100FLOORS.COM THE biggest realty market place, launched recently by Suksh Technology – a technology start up in the real estate domain, has emerged as the fastest growing portal in terms of number of page views per day, reach etc.

100floors.com is a map based real estate portal that goes beyond the traditional B-S-R (Buy-Sell-Rent) concept. The portal has unique and first of its kind features like valuation where consumers can get their property valued by the online experts, legal assistance – by property lawyers who would help online as well as offline; and deals and discounts – a section which shortlists the best deals and discounts across the country at a glance.

While, other portals have been adding anywhere from 150 to 400 new real estate listings per city despite of huge spends in TV, online and various outdoor campaigns, 100floors is adding about 150-200 listings without any mass media support. As per Alexa, 100floors also stands way ahead on the user engagement scale with every users clicking through 12 pages on the site, whereas others ranging from four to eight clicks per user. Property discovery on maps, sms-email-phone enabled access, online expert availability are some factors contributing to the growth.

According to an industry estimate, five million houses will be needed each year for next 15 years in India. In this, residential services will see larger growth as home needs and homes are slowly moving from a basic necessity to a lifestyle entity needing more services. In India, despite of Internet moving slow, key investments like realty has been pulling people online for searches and deals. In metro’s more than 65 per cent of builders and consumers are already aware of the use of online medium as a tool.

Commenting on the occasion, Shreyans Chopra, Chief Execuive Officer and Founder, Suksh Technology said, “We are really happy to have reached this milestone with in such a short span of time. 100floors.com was launched with an aim to understand the user trends in India and the features have been designed to fulfil that need. Its map based structure and easy to navigate features have helped increase traffic. These statistics are indeed very motivating and will enthuse the team to attain newer heights. Despite not pushing our services to NRI audience from where you can even get better Alexa ranks, this growth is phenomenal. It feels great to receive calls from places like Kerala and Orissa which demonstrates the power of this medium.

With an aim to give consumers an insight into several aspects related to Indian realty (that is often a tough ordeal for a layman) and enable them to take data driven decisions, 100floors.com has more than 50,000 properties listed from across 15 Indian cities comprising of metros and tier two cities like Jaipur, Ahmedabad, Hyderabad etc. Their team of expert advisors are continuously assisting visitors on a whole gamut of issues through a live chat feature on the website.

About Suksh Technology:

Suksh Technology Pvt Ltd (STPL) is a company formed to develop various technology and web solutions primarily focusing Indian PC and Internet users, starting with realty vertical. STPL will be venturing into various online and offline software products and services targeting Indian consumers. 100floors.com is their first product in the marketplace.

STPL is seed funded by one of the Director of South City Projects Kolkata, India and ex-veteran from Goldman Sachs, USA. The company’s vision is to invest and build network of easy to use, mass, consumer friendly applications.

The company is headquartered in Bangalore and has operations across leading Indian cities.

Source : http://www.merinews.com/catFull.jsp?articleID=15711840

Tatas, Birlas to invest in real estate

MUMBAI: Two of India’s large business houses, the Birlas and the Tatas, are looking at real estate as a major investment area, albeit in different  ways.

While the Birlas, through a financial services arm, are offering real estate as an alternative investment option to clients, the Tatas are planning to develop surplus land held by group companies. The Tatas may also invest in the sector part of funds raised through recent public offerings.

These moves come at a time when real estate prices are correcting and low demand for projects has prompted large developers to default on financial commitments and project deadlines.

Aditya Birla Management director Ajay Srinivasan, who also heads the financial services business, said the conglomerate is merely gearing up for the future. “We are now putting a team in place and want to be ready when the time is right,” he told ET.

The financial services arm of the group is setting up a real estate and private equity arm for its wealth management units. To be headed by Sashi Kumar, the real estate business would be managed through Birla Sun Life Asset Management. The Birlas plan to subsequently launch two real estate funds, one offshore and the other local, for the sector.

Although funds will be raised overseas as well, the investment destinations will be in India and can include distressed real estate assets. Tata Housing Development, a real estate player, has already said that it plans to leverage its tie-ups with banks by developing properties on surplus land owned by other Tata group companies.

Tata Housing is now identifying excess landbanks owned by companies such as TCS, Voltas, Rallis India, Tata Motors, Tata Coffee and Tata Tea. Tata Capital, the financial services arm of the Tatas, is scheduled to close a largely successful non-convertible debenture issue on Tuesday; it has so far raised Rs 2,300 crore against a targeted Rs 1,500 crore. Although Tata Capital has said that it won’t lend to group companies, it has proposed to invest in most asset classes.

Anticipating a large value erosion in the realty space, Indian corporates are planning to float new funds to acquire assets in the domestic property market. Real estate funds such as Saffron Advisors have either floated or are in the process of floating funds with corpus ranging between Rs 500 crore and Rs 1,000 crore.

“As far as Indian realty is concerned, for the right projects, funds are still available,” said Saffron Advisors MD Ajoy Kapoor. “Conservative European investors, after conducting extensive due diligence and research, are more comfortable with investing in Indian real estate, provided they are able to align with right partners,” he added.

A few months ago, Munich-based retail aggregator Deutsche Capital Management underwrote $20 million for Saffron India Real Estate Fund I, an India-focussed real estate fund. DCM is raising a specific fund for investing in Indian real estate through Saffron Advisors.

Tough lending norms, unfavourable primary market and global financial worries have affected fund flow into the Indian property market. Real estate deals have fallen and fancy valuations by developers are being corrected to a large extent.

Source : http://economictimes.indiatimes.com/Markets/Real-Estate/News-/Tatas-Birlas-to-invest-in-real-estate/articleshow/4172386.cms

Realtors freeze land acquisitions as values dip

NEW DELHI: There was a time when real estate biggies were literally banking on land. Huge land banks were considered an invaluable asset to flaunt aggressively when selling projects or raising money.

But today things have changed and the benchmark of the valuation of these companies, the land bank, is coming back to haunt them. Leading real estate developers across the country, DLF, Unitech, Emaar MGF, Omaxe, BPTP and Hiranandani Developers, have all put a freeze on their ambitious and aggressive land acquisition spree.

Also, in some cases they are even trying to give back the land they had acquired. The unproductive nature of land banks coupled with erosion in notional value means that the most prized possession of real estate majors is languishing in the slowdown.

SundayET dug out some data on land banks of the top real estate companies and found that the current kitty of DLF stands at approximately 13,055 acres while that of Unitech is around 14,000 acres. Omaxe has 3,700 acres as its land holding while BPTP has 2,000 acres.

According to a real estate consultant, who didn’t wish to be named, value of land prices have dropped by almost 30% since July last year, when they had peaked. By that estimate, assuming a correction of 30%, DLF’s land value stands at Rs 1,272 cr against Rs 1,817 cr standing in its balance sheet in March ‘08. Similarly, Unitech’s land value is priced at Rs 316 cr at current market prices, as compared to its value of Rs 451 cr in March’08.

Most developers, however, are not willing to concede that land banks have lost lustre. Says Sanjay Chandra MD of Unitech Group: “It depends on how you have acquired the land. We didn’t participate in open auctions. Most of our land is directly acquired from either land owners or from government auctions. Hence the cost is on the lower side. We are not burdened with any of the land parcels as the FSI cost of all our land bank is sub Rs 200 per sq ft.”

But denials apart, developers such as DLF, Unitech and BPTP are shying away from mega land deals signed during the real estate boom. This asset class is, in fact, especially pinching those developers who acquired land at various auctions at heavily escalated costs.

BPTP, which hogged the limelight for the costliest land deal in Noida, surrendered a part of the land parcel earlier this month. Last year, the developer had bagged a 95-acre plot at Noida in an auction for a princely sum of Rs 5,006 cr.

However, foreseeing difficulties in executing the project, the developer only retained part of the land. The case is similar with other developers, many of whom have withdrawn from key projects which would have ensured availability of large tracts of land for them. For instance, DLF recently gave up the Rs 5,000 cr Dankuni project in West Bengal and a multi-crore convention centre project in Delhi’s Dwarka.

Others like Omaxe are looking at a shift in strategy of the current situation. “Currently, we have around 3,700 acres of land. Now we are not acquiring more land, so the strategy is to develop the acquired land first,” says Omaxe Group chairman and managing director Rohtas Goel. Valuation of land is not the only problem. It’s also got to do with availability of funds for developing the land.

A senior private sector bank official, who did not wish to be identified, admitted that they had severely cut down on their exposure to the real
estate sector in terms of sanctioning loans. “There’s a high risk involved. And keeping in mind the current situation, we are averse to risk-taking propositions,” he said.

Ganesh Raj, tax partner and leader policy advisory group, Ernst & Young, in fact, feels that substantial landbanking could lead to a cash deficit situation in a downturn for real estate players. “They could easily get stuck in a vicious circle since not only landbanks are non-productive compared to a developed/semi-developed project but also bank funding on the basis of landbanks is a thing of the past,” he said.

According to Mr Raj, large land banks are no longer holding the fancy of investors. And that is the reason why developers with large landbanks are now feeling the pinch of having locked up significant amounts of free cash into such land banks. Economists too hold the view that the erosion of the notional value of land holdings is pulling real estate developers down in a depressed market.

“When the economy is on an upswing, notional value of your asset goes up. Today real estate developers are at the mercy of a bank, if they want to raise a loan or debt against those land holdings. Unlike the boom time, when they were able to raise a much higher amount against land, today the bank decides how much they judge the value of land holdings is,” says Sunil Sinha, senior economist, Crisil.

Though developers don’t outright admit that land is straining their bottomlines, all of them do agree that there isn’t any more land acquisition on the cards immediately. To capture the sentiment in the words of DLF executive director, Rajeev Talwar; “It’s not a good time for business development right now. We are not acquiring more land right now as we already have abundant supply for the next seven-ten years.”

Most of the developers are, in fact, putting up a brave front, agreeing that while land may not be offering them attractive returns at present, it is not acting as a liability either. Niranjan Hiranandani, MD, Hiranandani Developers feels that that it is primarily the mode of financing or excessive debt that has become a “liability” today, not the land acquired.

“Investors may still be interested in cases where a developer has a land bank at a premium location and the valuations are attractive enough. Therefore such developers could focus on premium land banks to generate cash in these difficult times,” says Raj.

Another option for developers, he feels, is to restructure their original plans to launch projects which would have quicker off-take such as low-cost housing.

Source : http://economictimes.indiatimes.com/News-by-Industry/Realtors-freeze-land-acquisitions/articleshow/4167542.cms

Realtors betting big on NCR to beat slowdown blues

It’s tipped to become the biggest residential real estate market in India in 2009-10. A Knight Frank review of the Indian residential market in Home loan rates may drop shortly |

2007, pegged the residential space marketshare of the Delhi National Capital Region (NCR) at 35% among the top seven property markets in the country by 2009-10. The closest other market in terms of volume was Mumbai with a share of 16%, which is less than half.

While the realty market in India’s financial capital Mumbai has conventionally been very attractive, the Delhi NCR market has now emerged bigger because of a variety of reasons, feel experts.

Even as this region attracts foreign investments, it has become the first choice for many MNCs to set up their headquarters. It always had a huge consumer market, quality workforce and is high on infrastructure growth. Besides, this area is an industrial hub and now there’s growing urbanisation which is fuelling the demand for housing.

Experts feel that the NCR market is, in fact, strong and robust enough to withstand the heat of the slowdown that the sector is feeling. Now, beleaguered developers such as DLF, Omaxe, TDI and Ambience Group are betting big on the NCR region to bail them out.

This market had made big gains during the real estate boom over the last couple of years and has emerged a very significant market for end-users as well as investors, besides the developers. “Delhi NCR is one of the most urbanised regions in the country. It has also traditionally been a sweet spot for investors, both resident and non-resident Indians. While Delhi and the suburban regions such as Noida, Gurgaon and Ghaziabad have a large end-user base, the region’s continuing pace of growth has propelled significant investor-led activity in the other upcoming suburbs,” says Mona Chabbra, associate director, real estate practice, Ernst & Young.

The buyer profile in the NCR region had seen a shift over the last couple of years from investors to end-users. With major global business houses setting up base in Gurgaon and Noida, young executives were getting attracted to innovative offers and freebies on various upcoming projects in this area. Of course, it’s not as if demand has not been affected in these markets.

While Gurgaon and Noida had seen significant investment activity in the past, the current slowdown has left investors shying away. Says Chabbra: “Primary suburbs of NCR are witnessing a significant fall in demand from investors but end-user demand should sustain growth in the medium term. Secondary suburbs of the NCR could face some demand rationalisation until an over-all market upturn.”

Traditionally the NCR region primarily denoted Delhi, Gurgaon, Noida, Ghaziabad, Faridabad and Greater Noida. However, owing to proximity and Home loan rates may drop shortly

improved connectivity, real estate development in NCR has now spread to wider areas such as Sonepat, Kundli, Panipat, Rohtak, Meerut, Bulandshahar, Manesar, Alwar, Dharuhera and Bhiwadi.

Vijay Jindal, CMD, SVP Group feels that areas such as Noida, Greater Noida and Gurgaon offer a lot of facilities because of which their prices shot up. “Ghaziabad, Meerut, Bhiwadi and Sonepat are rapidly becoming the hotbeds of massive development. Most of these areas are also well connected to the NCR thereby being lucrative options.”

Source : http://economictimes.indiatimes.com/Features/The-Sunday-ET/Property/Realtors-betting-big-on-NCR-to-beat-slowdown-blues/articleshow/4167794.cms?curpg=2

Real estate prices dip again

After DLF’s price correction in its Bannerghatta Road property, real estate major Sobha Developers dropped prices by a whopping 22%. Sobha was the first to effect a price drop of 8% to 10% three months ago. Now, some of its properties like Sobha Sunscape are selling at 22% lower than the price quoted three months ago.

According to a senior ICICI Home Search official, “The first round of price drops by developers didn’t create any market stir. Many are now looking at a second round that’s sure to create excitement among buyers.”

According to developers’ association CREDAI, Bangalore property prices have fallen by 15% to 20% as compared to the same period last year and a further drop is unlikely. A 2-bedroom, 1,200 sqft apartment at Sobha Sunscape is available for Rs 38 lakh, which includes car park, registration and stamp duty charges, VAT charges, as well as maintenance deposit and BWSSB and Bescom charges.

Except in two high-end villa projects, the company has dropped prices in all properties by 15%, though some rates may be available only during its ongoing property mela.

J C Sharma, MD, Sobha Developers, said though the real estate situation still remains challenging, “the current market situation allows us to pass on benefits to the consumer”. Interest rates have dropped to 8%, service tax is out, and stamp duty rate has fallen.

“After DLF dropped prices, there’s been tremendous excitement. Today, many project site visits are happening, something consumers had stopped for the past 4-5 months,” said a leading real estate agent who requested anonymity.

Source : http://timesofindia.indiatimes.com/Bangalore/Real-estate-prices-dip-again/articleshow/4168372.cms

Lahari Holiday Homes Ltd unveils an exclusive concept in vacation homes with ‘Lahari Suite Homes’

Lahari Holiday Homes Ltd, part of Lahari Group today unveiled a unique investment cum vacation home opportunity – Lahari Suite Homes in Hyderabad. Lahari Suite Homes will be located adjacent to Lahari Resorts, the renowned relaxation and entertainment destination of the twin cities at Bhanoor Village, Patancheru.

Modeled on the lines of “owning” a service apartment, Lahari Suite Homes ensures that customers not only benefit by getting assured returns on their investments in terms of fixed monthly rentals, assured buy back with appreciation, option of letting out as a service apartment, but also enjoy free 3 day stay every year and free lifetime membership to the Lahari Resorts.

Commenting on the concept Mr Hari Babu, Chairman, Lahari Group said, “Lahari Suite Homes is an ideal investment opportunity in today’s scenario. With the prevailing uncertain and risky market conditions, customers now have an investment option that is not only easy on the pocket but offers multiple assured avenues of returns”

All the 737 luxurious, classy and aesthetically designed suite homes will be built on 6 acres having 8 floors. These apartments overlooking the resort will be completed for occupation by March 2011. Each of the apartment costs Rs.12 lakhs and will consists of 1 bedroom, kitchen and dining. The ground level will offer several amenities to the owners like swimming pool, spa, gym, rocky garden and music deck.

Lahari Suite Homes will be designed keeping various individual tastes in mind. All 737 suite homes will be bright and airy, with large sit-outs overlooking the greenery with proper security and safety devices.

An easy and secured investment decision

Owners of Lahari Suite Homes will be leasing out their apartments back to the company for a period of 15 years – for which they will be paid an assured monthly rent of Rs.5000, with an incremental amount of 20% over the last rent received every five years. The customer will start receiving the rent once the company is paid in full.

Mr.Hari Babu continues, “By allowing for easy installment options over 20 months – customers need not even avail the prevailing high interest bank loans. Additionally, the company also assures of a buy back of the apartment after 5 years at an assured appreciated price of Rs. 14.40 lakh, irrespective of the market conditions, thereby making it a completely safe investment. Post the lease period the customer can let out the apartment as a service apartment and make additional revenues or use it for their own personal purpose.

“After having built customized quality homes and the spectacular Lahari Resorts, the Group is also developing 2 SEZs spread over 275 acres of land 2 kms from Lahari Suite Homes”, Mr.Hari Babu added.

Lahari Resorts at the doorstep

Customers can use their apartment for a period of 3 days in a year without any charge, enjoying the benefits of free stay and facilities like Gym, Swimming Pool and Waterslides. Other chargeable facilities like bowling, paintball and food can be availed at a 20% discount during the stay. Customers are provided with privileged membership of the resort as well which will entitle them to special discounts on accommodation, food, beverages and chargeable facilities.

Lahari Resorts is a one of kind resort which offers multiple entertainment options appealing to a varied set of audience. For cricket crazy, Lahari is the only resort in Hyderabad which provides international standard full fledged flood light cricket stadium. Lahari Resorts has a plethora of entertainment options ranging from various interactive games to fun filled water activities. Youngsters can have fun filled time at the resort with a variety of outdoor and indoor sports like basket ball, beach volley ball, tennis, badminton, snooker, bowling alley and many more. To add more excitement to their trip, they can also indulge in adventure sports like obstacle course and paintball which are exclusively present at Lahari resorts.

The resort with a calm and serene environment with greenery spread across 35 acres is a destination of choice for families who can have a good time together and unwind in different water activities like swimming pool, water slides, water polo, rain dance, boating and angling. Kids can have a blast at the resort with exclusive outdoor and indoor game parlors like dry slides and swings designed for them. Lahari Resort is also an ideal destination for couples as it not only offers range of options for theme weddings but is also a perfect honeymoon location.

The resort also offer good range of conference halls, business centre and event arena for corporate get togethers. Lahari Resorts has a multi cuisine restaurant, Tree-Top restaurant, 24 Hour Coffee Shop and a Hookah Bar giving its guests a variety of dining options to choose from.

Customers opting for Lahari Suite Homes will have a location advantage as it will be near to ORR, Hi-Tec City and airport. The suite homes are also close to 70% of IT & ITES companies of the city. Lahari Suite Homes is promoted and developed by Lahari Holiday Homes Ltd.

Source: http://www.indiaprwire.com

House that! Mumbai to get 24,000 more homes by 2011

Here’s good news for lakhs of house-hunters, the Maharashtra Housing and Area Development Authority (MHADA) has decided to construct and allot 24,000 houses in the city by March 2011.

The plan was unveiled during the presentation of the Rs 2974-crore budget of MHADAs Mumbai Board. Mumbai Board chairperson Amarjeetsingh Manhas said that MHADA in October this year plans to release 3,000 flats in the market. “About 2,000 flats would be for those in the Economically Weaker Section (EWS),” Manhas said. These houses would be in addition to the 3,863 flats that are about to be allotted to applicants through the lottery system.

MHADAs decision to construct more flats for the EWS and Low Income Group (LIG) has been prompted by the Central government’s move to release funds under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). The funds released would be up to Rs 1.61 lakh for each EWS flat, Rs 2 lakh for every LIG flat built and Rs 2.10 lakh for mill workers homes.

MHADA will be constructing 6000 homes for retrenched mill workers on the land handed over to them. Besides the 24,000 homes that the housing board will construct over the next two years, the MHADA will get another 5,244 flats through redevelopment of seven of its colonies in joint venture with private developers. “Most of these flats will be for the low and middle income groups with an area of 300-450 sq ft each,” Manhas said.

The colonies that will be reconstructed in this way include Gyaneshwar Nagar in Sewri, Siddharth Nagar in % Goregaon, Aaram Nagar in Versova, Dadasaheb Gaikwad Nagar in Malvani, Lokmanya Nagar in Dadar, PMGP Colony at Mulund and the police housing society at Ramabai Nagar in Ghatkopar. Besides the colonies that will be redeveloped through joint venture, MHADA has given its No Objection Certificate to private developers to redevelop 60 buildings in its colonies all over Mumbai.

Source: The Indian Express

Ahmedabad woos the middle-income group

The Ahmedabad realty market is gearing up to offer affordable houses for the middle income group, and it is happening for the first time in many years, said Mr Kishor Dedhia, Joint Managing Director, Space Management Ltd.

Builders in the city are finally catering to the demand of the middle income group, with affordable housing in the range of Rs 10 lakh to Rs 25 lakh for a two or three bedroom-hall-kitchen (BHK) flat.

“Up till now, plenty of high-end apartments were available in the above-Rs 50-lakh range and those worth less than Rs 5 lakh would have to come up in the villages. The gap between Rs 5 lakh and Rs 10 lakh is huge but it is gradually being filled up,” he said.

Gujarat-based developer Bakeri Group is offering flats in Vijalpur area of Ahmedabad, which is predominantly inhabited by the middle and lower income groups. That is where the future is going to be, he added.

The shift in focus has come about due to a bust in the retail industry as well as due to prices hitting the roof in the real estate sector.

Between 2004 and 2007, real estate rates started to rise uncontrollably and increased so much that there were no buyers left and people postponed buying decisions, opting to wait for the prices to come down, he said.

Township plans

Safal Parivesh Developers is another prominent name in the city. It is constructing a township near Prahladnagar of 400 to 500 apartments of two to three BHKs.

The area within the city has no land for construction of new buildings and the city is expanding in a circle, making the area inside the proposed ring roads attractive.

“The outermost ring road in the concentric circle is supposed to be completed by 2011. That makes the area surrounding it extremely attractive for buyers and sellers as it gives easy connectivity to the city. The Sardar Patel Ring Road area is the space to watch out for in the near future,” said Mr Dedhia.

With the hike in real-estate prices, most developers played it safe by halting projects and waiting for the slump to tide over. Some of them have begun construction again slowly and, rather than creating ambitious projects, are looking to offer affordable housing where bulk sale is possible.

Today, people of all strata are looking for comfortable two to three BHK accommodations and everybody wants to save costs. So it doesn’t make sense to keep building expensive houses, he added.

The Gujarat Housing Board too is planning a couple of residential colonies for the middle-income group.

Housing Board plans

The total available land with the board in Ahmedabad is 104.01 acres and it has in its kitty 69,364 acres of completed projects.

Perceiving the need to fill the gap between demand and supply for the middle income group, the board has planned a slew of projects, which will be revealed by and by. During the last year, prices began to stagnate and the prices for residential houses in the city were not expected to rise for the next four years. If anybody is looking to make a new purchase, now is the time, he said.

“Prices are not expected to dip below the current market rates and people looking to make a purchase will get homes in good locations right now,” he said.

Space Management acts as a contact point for corporates looking for real estate in Ahmedabad. It has a team of 40 members at its office here and a network across Gujarat, Mumbai, Bangalore and Hyderabad. According to Mr Dedhia, the telecom sector was the dominant sector that attracted corporate executives to the city to stay for a couple of years or more. The current rental rates for a two BHK are between Rs 6,000 and Rs 12,000, while a three BHK could cost anywhere between Rs 8,000 and Rs 2 lakh, he said.

Source : http://www.thehindubusinessline.com/iw/2009/02/22/stories/2009022250591500.htm

Home loan mkt heats up: Will it benefit borrowers?

The entire home loan market was electrified by the bold announcement of an interest rate of 8 per cent by SBI for the first year, for its new home loan consumers. SBI made it clear that the reduced rate was applicable only for the first year and would revert to normal floating rates at the end of the first year. It was not very clear what this revised rate would be.

Gimmick or Need-based Cut

With home sales falling, banks and housing finance companies are on an overdrive to expand their credit portfolio, leading to claims and counter-claims. SBI fixed an interest rate on all loans including the transferred loans at 8 per cent for a year, and this disturbed HDFC, the numero uno player in the housing finance market. After SBI’s announcement, HDFC Chairman, Deepak Parekh, said SBI’s 8 per cent home loan was just a ‘gimmick’. The 8 per cent rate is applicable only for the first year, and there is no clarity on rates thereafter.

Agreeing with Deepak Parekh, Omaxe CMD Rohtas Goel too called SBI’s 8 per cent rate a marketing gimmick and nothing else. He also said the RBI had started lowering interest rates after realizing that nobody was going to gain if demand for housing was killed, but the actions were not enough. “Interest rates have come down to 11 per cent, somewhere it is 11.5 per cent to 10.50 per cent. Nothing will happen by taking these actions. Something major should be done by RBI and government both to start the rally again.”

Banks who have joined the ‘8 per cent gimmick’

After State Bank of India, state-owned Central Bank of India has decided to freeze interest rates for new home loans at 8 per cent for a period of one year. Other public sector banks are also planning to follow suit.

According to Central Bank, there is no upper limit set for the loan amount under this scheme. After a period of one year, the interest rate will be reset to the respective schemes. Central Bank also reduced the lending rate for housing loans up to Rs 5 lakh by 0.5 per cent to 8 per cent from Wednesday under a special package. Ramnath Pradeep, Chairman, Central Bank, said the bank’s 8 per cent home loan rate scheme is available only till March 2009. The rate of interest for those who avail of the offer is applicable for one year, he said. The bank’s loan book is expected to grow by about Rs 500 crore thanks to the scheme, he said.

“The scheme, which will be applicable for all loans taken till March 31, is aimed at pushing credit flow to the housing sector,” Central Bank Executive Director, Ramnath Pradeep said.

What are private banks thinking?

Meanwhile, HDFC said it would reduce rates if cost of funds further comes down. HDFC chairman Deepak Parekh said, “If our cost of fund comes down, we will certainly reduce rates.”

Talking about the future of home loan rates, MD & CEO of India’s largest private sector bank, ICICI Bank, KV Kamath, feels that home loan rates will fall to single digits in the near term. He said, ‘In 2000 mortgages were at 14 per cent, then they came down to 7.5 -8 per cent. They went back to 13.5-14 per cent. Now, they are on a downward trend. I hope in the near-term mortage rate will come to a single digit. For some sections they are already at single digit.’

Clearly, the home loan market is hotting up with promise of more goodies to come in the near future.

Source : http://ibnlive.in.com/news/home-loan-mkt-heats-up-will-it-benefit-borrowers/85887-15.html

PE investment in India to fall by a third in 2009

MUMBAI, Feb 19 (Reuters) – Private equity investment in India in 2009 is expected to tumble by more than a third to $5 billion to $7 billion, similar to the fall in 2008, as investor aversion rises and asset owners stick to high price expectations, industry players said.

PE firms will also be busy tending to Indian portfolios battered in the stock market meltdown, speakers at a private equity conference in Mumbai said on Thursday.

“The sustainable private equity deal volumes in this market would be just about 50 percent of the last couple of years,” Puneet Bhatia, managing director at PE firm TPG, said at the conference.

“The price of being prudent and diversified has just not delivered,” he said, referring to the sharper fall in developing market indices than in major industrial markets.

India’s benchmark stock index .BSESN fell 52.4 percent in 2008, its worst year ever, ending a five-year bull run that saw the market rise six-fold. It is down 6.3 percent so far in 2009.

Private equity investments in India fell 38.1 percent to just over $10.7 billion in 2008, in line with the drop across the Asia-Pacific region, according to Asian Venture Capital Journal research.

Almost three-quarters of the private equity investment in India over the last two years was in listed entities that have dropped sharply and these are weighing on PE firms’ ability to invest, said Nitin Deshmukh, CEO of private equity at Kotak Investment Advisors.

The best opportunities in 2009 would come from buying non-core assets or distressed units of large conglomerates and picking up stakes in non-cyclical sectors, said Parvinder Singh, principal at Bain Capital.

PE firms were likely to shy away from cyclical industries such as real estate, as sliding realty prices and sales scare them away from one of the hottest investment destinations of recent years, the speakers said.

“It is a cycle. In good times you raise and invest oodles of money in bad times you try and stay away,” said Ashish Dhawan, senior managing director at ChrysCapital, which manages $2.5 billion of assets. (Reporting by Narayanan Somasundaram; Editing by Mark Williams)

Source : http://uk.reuters.com/article/privateEquity/idUKBOM13611820090219

Lahari group charts Rs 400 crore for SEZ

Lahari Infrastruaure has invested close to Rs 400 crore on land in a special economic zone in the state. It has partnered with realty developer Hiranandani for the project which has just got off the ground.

The SEZ project will be developed over 15 million square meters of land. Around two million square feet’ will be developed in the first phase that is slated for completion by 2011. SEZs are tax-free zones meant to promote exports.

“After the first phase, around 1.5 million square feet of land will be developed every year,” said Lahari Group chairman Hari Babu. According to him the Hiranadani group is in talks with the country’s largest bank State Bank of India for Rs 300 crore to fund the first phase.

The Hiranandani Group holds a 70% stake in the SEZ, while Lahari Infrastruaure holds the balance 30%. The equity holding is in the form of land. Hiranandani will develop the infrastructure over the next 12 years or so. The companies have inked an agreement with an undisclosed company to lease out 1 million square feet.

Two companies including Suven life Sciences will take on lease 1 lakh square feet each after the completion. The SEZ, called Hiranandani Upscale, will have facilities for Information Technology (IT), IT Services, Banking and Education apart from a free-trade zone and warehouse. The joint venture has to be approved by the Hyderabad Urban Development Authority and Environmental Clearances. The turn over of the Lahiri group was around Rs 70 crore in FY 08.

Source : http://propertybytes.indiaproperty.com/?p=3336

PBAP’s assistance package

The Promoters and Builders Association of Pune (PBAP) announced an assistance package to homebuyers facing financial problems due to job loss in the economic slowdown.

“The PBAP member-developer will pay up to three installments to the bank in case the homebuyer loses his job,” PBAB president Lalitkumar Jain said. In a press note, the PBAP also said that the developer will not charge any interest on any installments that are delayed due to job loss. However, the scheme is valid only till possession of the house, it clarified.

Source: The Indian Express

Panoramic eyeing PE funding to fuel pan-India expansion

MUMBAI: With a view to have a pan-India footprint, hospitality major Panoramic Universal is planning to develop two exclusive properties in  Hyderabad and Jaipur and is in talks with private equity players for raising Rs 50 crore.

“We plan to raise Rs 50 crore and are in talks with private equity players and institutional investors. The deal should be sealed soon,” Panoramic Universal’s Senior Vice President (Finance & Operations) Utpal Parekh told PTI here.

Initial discussions with several investors have already been done, he said, adding, “We will dilute at the right valuation.”

Panoramic Universal has adopted the inorganic route for expansion and recently acquired three hotels in the country taking its total chain to 11 across India, US and New Zealand.

The company acquired a controlling stake of a semi-finished hotel in Hyderabad called Sri Vatsa Hotels for Rs 20 crore last year. It intends to convert this property into a 90-room four star hotel.

It also acquired a property in Jaipur for Rs 18 crore. Panoramic Universal intends to set up a multi-use hospitality project with a 83-room three-star hotel and a commercial complex spread over 30,000 sq ft on the property.

The company is also intending to take over the management control of an “only suite hotel” in Thane.

Source : http://economictimes.indiatimes.com/News/News-By-Industry/Services/Property–Cstruction/Panoramic-eyeing-PE-funding-to-fuel-pan-India-expansion/articleshow/4154734.cms

Realtors likely to divert surplus FDI to Realty Projects

Commerce and industry ministry is likely to waive end-use restrictions and allow realty developers to divert surplus foreign direct investment to real estate projects where it was not allowed so far. According to the norms, FDI is allowed only in projects with a minimum investment of $10 mn (in wholly-owned subsidiaries) or $5 million in joint ventures, and which has a minimum area of 10 hectares.

As per the proposal, which will require a Cabinet approval before being implemented, a real estate company which has brought in FDI in a project meeting the mandated conditions can now use the surplus funds in another project which may not meet the prescribed conditions.

For example, a realty company that has raised FDI for a township in Faridabad which meets the minimum capitalisation and minimum area norms may now use a part of the surplus funds for a project in Gurgaon which may not have got a clearance from Foreign Investment Promotion Board (FIPB). Put simply, while the new norm does away with the end-use restrictions, it also nullifies the mandatory meeting of conditions for using FDI.

In the last FIPB meeting, the board deliberated that in view of the difficulties being faced by the real estate sector, some leeway is required, even if for a temporary period.

“We will soon issue the guidelines to be followed in case of requests for receiving FDI by realty companies engaged in various projects, not all of which are FDI-compliant as per Press Note 2 of 2005,” a senior official directly dealing with the new policy told ET. He asked not to be identified. The official added that the relief would be extended to the realty sector for a temporary period with an in-built sunset clause.

Interestingly, this comes even as the government had recently stepped up vigilance against companies channelling FDI money to projects that had not received FIPB clearance. While examining real estate company Keystone’s proposal in a meeting held in January, the board had asked the department of industrial policy and promotion (Dipp) to set up a monitoring cell to track FDI inflows into non-FDI compliant projects under the veil of FDI.

The board was apprehensive that in such cases, there could be a possibility of funds getting diverted to projects that had not been cleared by FIPB.

In fact, Dipp has prepared a draft Press Note on guidelines on induction of FDI into Indian real estate companies with both FDI-compliant and non-FDI-compliant projects, where FDI is required to flow into FDI compliant projects only. Officials say this would be the fourth PN to be issued by the present government before the polls.

So far, the government was wary of tweaking the FDI guidelines laid down under PN2 of 2005. It was of the view that if real estate companies are allowed to retain non-FDI-compliant projects while bringing in FDI, it would actually mean they are being exempted from Press Note 2 of 2005 guidelines which lay down the minimum capitalisation and minimum size norms for projects for being eligible for accepting FDI. The government has also specified a three-year lock-in period for such ventures.

In January, FIPB had rejected Delhi-based real estate company Vatika’s proposal to retain projects that do not comply with FDI guidelines for the real estate sector on the ground that such an exemption would defeat the purpose of PN2 of 2005. However, officials now say that with repeated pleas from the industry seeking relaxation of the policy in view the current economic downturn, tweaking norms would be a prudent step.

Source : http://www.indianrealtynews.com/real-estate-india/realtors-likely-to-divert-surplus-fdi-to-realty-projects.html

Puravankara budget housing project gathers steam

Puravankara Projects Ltd, a Bangalore-based real estate developer, is set to acquire 200 acres of land in Bangalore, Mysore, Chennai and Kochi at a cost of Rs 2-3 crore per acre for its affordable housing project. The company has indicated that it has signed a memorandum of understanding for the land bank and has issued some advances for the same.

Ravi Ramu, director, Puravankara Projects confirmed that they are in negotiations with land owners and some progress has been made to acquire them. Puravankara Projects is executing this affordable housing project through a wholly-owned subsidiary — Provident Housing and Infrastructure Limited — and has envisaged an investment of Rs 8,000 crore over a period of five years. Company officials maintained that they are not going slow on this project.

The company already has 70 acres of land and it is looking at a total land bank of 550 acres in all for this project which will see the rollout of close to 65,000 homes sized between 750-1,000 sq feet. The houses will be priced between Rs 12 lakh and Rs 20 lakh.

Puravankara is set to roll out its initial two projects within the next three months which will see the construction of 6,000 houses in Bangalore and Chennai. A further 3,500 houses are expected to be launched during the latter half of 2009. The company, which for the last quarter reported a 70 per cent drop in net profit, has said that its net debt of Rs 757 crore is manageable and the company is leveraged 0.56 times.

The company is looking at raising private equity investment for the project, while the rest of the investment will be raised through internal accruals, debt and sales advances. Ravi Ramu confirmed that they have a ready credit line but declined to spell out the specifics.

Puravankara in a recent statement said they have repaid all loan installments as per the requirements of individual loan agreements and there has not been any loan repayment defaults.

Source : http://www.business-standard.com/india/news/puravankara-budget-housing-project-gathers-steam/00/06/349435/

Tata Housing: projects to be completed on time

Tata Housing Development Co. assured its customers of timely completion of projects despite slowdown in the property market. At present, Tata Housing is developing two residential projects at Bangalore and Gurgaon, which are planned to be ready for possession by December 2010 and June 2011, respectively.

“We, at Tata Housing, are committed to make landmark projects in terms of quality with timely construction, execution and delivery schedules, be it in these difficult times as well,” managing director Brotin Banerjee said in a Statement.

Source: http://propertybytes.indiaproperty.com/?p=3328

Geojit launches property division

KOCHI: Aiming to tap the vast potential in the real estate sector, Geojit Financial Services, a leading retail financial services company, forayed into this segment by launching its Property Services Division.

The new division will offer investors and builders a single transparent platform to buy/sell office and commercial spaces and residential apartments and flats and would commence operations from Kochi before spreading to other major locations in the state , Geojit Financial services Managing Director Mr C George told reporters here.

In the second phase, the services would be launched in other South Indian states, followed by the rest of India, he said.

To start with, the services would be available to its 4.50 lakh customers throughout the country through 500 branches, he said.

A market survey conducted by Geojit showed a huge gap in this front and the division was started to fill this gap.

Mr Joseph Niven, Vice President and Head of the new division, said the real estate sector is expected to grow at 30 per cent annually for a decade.

In Kochi, with several major projects coming up, there is likely to be a huge demand.

The division will facilitate home loans from banks and NBFCs and offer value added services such as access to architects, interior designers and property related service providers. – PTI

Source : http://www.thehindubusinessline.com/blnus/02181591.htm

DIPP recommends changes in FDI norms for real estate

The Department of Industrial Policy and Promotion (DIPP) has recommended relaxation in foreign investment rules in the real estate sector in a bid to facilitate cash-strapped realtors get overseas funds.

The DIPP is backing changes in rules to facilitate foreign direct investment (FDI) in real estate projects that are not FDI-compliant, according to sources.

DIPP members who are part of the Foreign Investment Promotion Board (FIPB), in a meeting held on January 22, were of the view that in light of the current liquidity crunch, some leeway was required for the sector. The DIPP has directed that the matter be examined expeditiously.

At present, FDI in the sector is allowed only in partially completed and greenfield projects. There are also area specifications that developers have to comply with.

The DIPP is also examining the approach to be adopted in case of requests for receiving FDI by real estate companies that are engaged in various projects, not all of which are FDI-compliant according to Press Note 2 (2005) and which cannot be hived off.

Unitech has approached the FIPB for raising up to Rs 5,000 crore through global depository receipts. Unitech’s 10 per cent projects are not FDI-compliant. If the DIPP allows real estate companies to get FDI in non-compliant projects, it will help Unitech raise money without difficulty.

Source : http://www.business-standard.com/india/news/dipp-recommends-changes-in-fdi-norms-for-real-estate/00/42/349500/

Real estate slowdown hits interior decor firms

The slowdown in the real estate sector has hit the market for interior decoration.

The slowdown had been to the tune of at least 10 per cent in the last one year, said Sundeep Gupta, president, Association of Architects, Builders, Interior Decorators (ABID), on the sidelines of a press conference to announce ‘ABID Interiors’, in Kolkata on Tuesday.

Architects and interior decorators have seen delay in payment as real estate projects are behind schedule and some even shelved. The major setback has been due to the sluggish construction activity in the Rajarhat area, the upcoming IT hub of the east. According to Gupta, construction work for at least 60-70 commercial projects are behind schedule at Rajarhat alone. This apart, several hotel projects in places like Eastern Metropolitan Bypass and adjoining areas are stuck due to the economic downturn. ABID was also discussing the matter with legal experts in this regard, he said.

This year, so far, about three million square feet real estate space was added in Kolkata, said Sundeep Chanda of ABID. This would translate into a market worth Rs 120 crore for interior decorators, he added.

However, out of this, barely 25 per cent of the space would fall in the purview of organised market for interior decoration.

Source : http://www.business-standard.com/india/news/real-estate-slowdown-hits-interior-decor-firms/00/01/349361/

Goa realty prices come down by 25%

PANAJI: The meltdown has started to trickle into Goa’s real estate market. According to developers, prime property rates are down by 5-10%, while  the prices of flats constructed by small-time builders are down by 20-25% since the new year. Prices, they predict, are likely to fall further by mid-2009.

Moreover, about 25% of ongoing projects are stuck due to lack of funds or buyers and even the number of north Indian buyers has dropped by about 75%, they say.

“Small builders have reduced their rates by 20-25% to pay off bank loans. But prime builders in the state have reduced their prices by only 5-10%. Many builders who own land are not constructing now and are closely watching the market for changes,” said Victor Albuquerque, chairman of the Alcon Victor Group.

Agreeing, architect Dean D’Cruz said that the prices are set to fall further by at least 20% in the next few months. “The number of buyers have reduced and about 25% of projects are stuck as people are not investing in them because of the anti-mega projects movement and the glut in the market,” he said.

Real estate sources told TOI that the market has been stagnant for the last six months now and even banks are refusing to give loans to builders.

“The main reason for this is that prime investorsmostly north Indians, especially Delhiiteswho were investing in property in Goa have decreased from 55% to about 30%,” said sources. The percentage of Goans investing in property however, has remained constant at 10% for the last eight years, they added.

Meanwhile, property evaluators believe that prices had been overpriced by almost 30-50% in the last three years.

In mid-2008, residential prices at their highest, ranged between Rs 20,000 and Rs 40,000 per sq m in Panaji, Calangute, Baga and Candolim, followed by between Rs 15,000 and Rs 40,000 at Anjuna, Vagator, Arpora, Parra, Dona Paula and Miramar.

At their lowest, prices ranged between Rs 8,000 and Rs 15,000 per sq m at Pernem, Quepem and Canacona. Prices are currently down by between 5% and 25% depending on the builder. “Prices may come down further as sales have considerably reduced,” said property evaluator S N Bhobe.

Admitting that the prices have come down, Datta Naik, president, Confederation of Real Estate Development Association of India said that the rates have now been rationalized. “In the cities there is no reduction in prices as there is limited supply. It is the upmarket and coastal areas where there is some rationalization,” he said.

This rationalization, he added, has happened after a brief period of stagnation. “People are now buying smartly and builders are taking care of the specifications, security aspect, post delivery maintenance and other aspects aimed at improving the quality of the premise,” said Naik.

Source : http://timesofindia.indiatimes.com/Goa/Goa-realty-prices-come-down-by-25/articleshow/4146649.cms

Govt plans 100,000 homes in Rs 10-20 lakh range

New Delhi: The UPA Government is working on a major stimulus for India’s flagging real estate market and ancillary industries through a nationwide scheme of affordable housing. The initial plan is to build 100,000 dwelling units, each costing Rs 10-20 lakh, over the next two years.

The scheme, brainchild of the Department of Industrial Policy and Promotion, has the drawing-board title of ‘100 R K Puram Project’. It aims to tap into the huge unmet demand of MIG/LIG housing costing not more than Rs 40 lakh per unit among government and PSU employees, currently incentivised by surplus cash from revised payscales and arrears, and single-digit loan rates charged by government banks.

R K Puram, in south-west Delhi, is Asia’s largest colony of government employees. According to the Department of Industry note, the push to housing is expected to translate into increased production of steel, cement, trucks, tiles, fittings, etc.

Official sources said Cabinet Secretary K M Chandrasekhar discussed the proposal in a meeting with state chief secretaries on January 31.

The scheme has been discussed with real estate majors including DLF and Unitech.

It was expected to find mention in the interim budget, but it is learnt Finance Minister Pranab Mukherjee decided otherwise.

The government is currently working on three options:

* Developers with large landbanks of their own can come out with affordable housing (Rs 12-20 lakh) with state governments helping them with increased FSI to protect their bottomlines. The idea has been discussed with major real estate developers.

* States can give land to developers at concessional rates with caps on size and cost of the unit.

* States can announce their own housing schemes with land being made available to development authorities or cooperative housing societies on a no-profit, no-loss basis.

Source : http://www.indianexpress.com/news/govt-plans-100-000-homes-in-rs-1020-lakh-range/424879/

DLF lowers prices in Hyderabad, Bangalore

Bangalore: Failing to attract buyers, DLF Ltd, India’s largest developer by market value, has decided to relaunch its maiden Bangalore project in a different format and has reduced prices—for the second time in three months—by one-third.

DLF is repositioning the project, Westend Heights, converting it from a premium residential development with large apartments to smaller, less-expensive homes. The prices for the project have been cut from Rs2,775 a sq. ft to Rs1,850.

Not just prices, the sizes of apartments have also shrunk. Two-bedroom apartments, which were about 1,310 sq. ft in size, are now being sold as 1,085 sq. ft flats. This basically means that buyers who would have had to pay Rs36.35 lakh will now have a cheaper option in a 1,085 sq. ft flat at some Rs24.5 lakh including registration and stamp duty. The 80-acre property will come up with 700 flats in two years.

DLF didn’t respond to emails and phone calls on Tuesday for comment.

DLF has been attempting to launch this project since early 2008 but was unable to do so due to delay in getting approvals and then the economic slowdown. Even after dropping rates and a soft launch in mid-November, sales didn’t happen. “At the present price, DLF should be able to bring in sales. The average property buyer is so price-conscious today that even Rs100 a sq. ft makes a difference,” said Ranvir Dugal, managing director of PropIQ Realty Tech Pvt. Ltd, a Bangalore-based property advisory firm.
In November, when DLF had pushed down the per sq. ft rate from Rs3,500 to Rs2,775, property consultants had said that it would be difficult for the the developer to sell at that price and predicted it would further slash prices.

Last month, DLF repriced a project in Hyderabad, The Summit. “The per sq. ft prices that were to open at Rs4,000 have been slashed to Rs1,850 for a 1,760 sq. ft flat and to Rs2,000 for a 1,185 sq. ft flat in the project. Construction hasn’t yet begun and the project is expected to finish in three years,” said a DLF executive, who did not want to be identified and is not authorized to speak to the media.
DLF recently warned the Karnataka government that it may pull out of the Rs24,000 crore Bidadi integrated township project, asking the latter to return its earnest money deposit of Rs400 crore. The reason cited by DLF, which is developing the project through a 50:50 joint venture with Dubai-based realty firm Limitless Llc., was delay in the government’s acquisition of land for the project.

A senior official of the Bangalore Metropolitan Region Development Authority, on condition of anonymity, told Mint that it has urged DLF to reconsider its decision and not to withdraw at this stage. “We also fear that DLF may quit from the project because it doesn’t have the money to execute it,” said the official.

In eastern India, too, DLF is building a 500-acre township in suburban Kolkata instead of the initially planned 4,840-acre township.

Source : http://www.livemint.com/2009/02/17225253/DLF-lowers-prices-in-Hyderabad.html

Premium apartments from XL Estates

XL Estates, a Chennai-based real estate developer has launched XL Woods a premium residential property with 176 apartments near Sriperumbudur to the west of Chennai.

According to a press release from the company, the two- and three-bedroom and luxury studio apartments are priced at Rs 1,950 a sq.ft and cost between Rs 13 lakh and 25 lakh. The project, scheduled for completion by July 2010, is being launched with a booking offer for the first 50 apartments — buyers can book houses for a token advance of Rs 10,000 and get car parking valued at Rs 1 lakh at no cost.

Source : http://propertybytes.indiaproperty.com/?p=3319

Biyani exploits real estate slack, inks deal for 5-lakh sq ft

Taking advantage of the slowdown in the real estate sector, Kishore Biyani-led Future Group has booked nearly five-lakh sq ft of space in the past couple of weeks even as it has “moderated” its short-term expansion plans in view of the economic meltdown.

“We are capitalising on the real estate slowdown and have been signing several property deals across the country in the past two-three weeks,” said Kishore Biyani, chief executive, Future Group. The group has inked several deals on the revenue-sharing model, adding about 1,50,000-2,00,000 sq ft space per week, he said.

The group has, however, slowed down its expansion plans for this year and consequently now does only “need-based” recruitments. “We are hiring only in moderation,” he said. It plans to add six Brand Factory stores besides 12 Central stores in the next one year spanning over 1.1-million sq ft. “We will hire as we roll out our new stores,” he added.

The group presently has ahead count of 30,000. Admitting that the group has not expanded this year as it had expected to, Biyani said, “Growth is there, but it is in moderation. We are going slow on our store expansions as real estate projects are getting delayed,” he said. The Future Group’s strategy now is to conserve money and deploy it in only those segments which give faster returns.

“We have not witnessed a deceleration as such. We have been growing at 30 per cent in the past three months,” Biyani said. The group’s Rs 30,000-crore topline target by 2012 would get delayed by 12-18-months, he said. “We would love to expand. It is our Ambition to achieve that topline but it will (now) get delayed by 12-18 months,” he said.

Biyani ruled out any overseas foray, saying “we don’t understand the mature markets.” To start with, India itself is such a difficult market to understand with different states having their own diversity and different needs. Side-stepping a question on acquisitions and tie-ups with foreign retailers, specificallywith food and grocery brands Carrefour and Woolworths, he said, “We are constantly in talks. Being one of the largest retailers in the country, they do come to us.”

On whether it is eyeing a stake in beleaguered retailer Subhiksha, he said, “No. We have never ventured into the neigh­bourhood store format. Subhiksha doesn’t fit in with our format of KB’s Fair Price Shops.”

Source : http://propertybytes.indiaproperty.com/?p=3321

India Infoline gets nod for home loan arm

India Infoline, a leading player in the Indian finance and financial services space today said that it received registration for its Housing Finance Subsidiary India Infoline Housing Finance from National Housing Bank (NHB).

Appul Nayyar, CEO, Moneyline said, “The Housing Finance License furthers our vision to be a leading player in the fast growing housing finance space in India. We will operate across customer segments and continue to provide high quality products and service meeting both immediate and long term requirements of our customers.”

India Infoline’s consumer finance portfolio stands at Rs 840 crore as on December 31, 2008. The approval of the housing finance business will enable India Infoline to further diversify the consumer finance portfolio and leverage its existing distribution strength for rendering housing loans as well.

Source : http://www.business-standard.com/india/news/india-infoline-gets-nod-for-home-loan-arm/11/46/55173/on

Mumbai office on the up

India´s financial hub Mumbai has joined the league of the costliest global cities like New York and Tokyo, driven by supply constraints and a rise in the absorption rate of commercial spaces, a survey says.

The BandraKurla Complex micro-market in Mumbai saw the highest rentals in the country, with asking rates of around Rs 425 (US$10.80) per sq ft per month; a whopping 80 per cent increase over the same period last year, commercial real estate services firm CB Richard Ellis (CBRE) said in its latest survey.

A tight supply pipeline in this market and a keen interest from financial sector companies in Mumbai is being seen as the main reasons for the city joining the ranks of New York and Tokyo as the most expensive office markets in the world, the survey added. However, amid the hype in the Indian real estate market, multinational corporationss are raising concerns over the viability of costs.

According to CBRE, the overheated markets of Mumbai and Gurgaon (NCR) are in for a marginal rationalisation this year, with significant new supply expected towards the end of the year. In Bangalore, consolidations and rentals are likely to remain stable through the year, while Pune and Hyderabad would continue to find favour with growing companies, and rentals in these markets are also expected to remain stable. The Chennai office market appears to be headed for a marginal correction in prices, but this will not take away the steady demand for space by tenants in the city.

Source : http://www.property-report.com/property-news-top-stories.php?id=2321&date=160209

Builders hike rates but delivery stalled

Here’s another manifestation of the slowdown in the real estate sector – peripheral cities of Delhi- NCR are dotted with delayed projects with buyers continuing to wait for possession, in some cases by up to two years. However, that has not deterred developers from increasing the selling rates of these properties.

Most of these delayed projects were launched between 2005 and 2007. For instance, Uppal Chaddha Group launched the Hi- Tech City in Ghaziabad in 2006. Plots were sold at the pre- launch stage at Rs 7,000- 8,500 per sq yd. A senior official of the company said the project would now be officially launched in June this year at Rs 15,000 per sq yd per.

Then, there is Triveni Heights, launched by Triveni Infrastructure Development Ltd at the National Highway 24, Ghaziabad, which has been delayed by almost two years. The project was launched at Rs 1,800 per sq ft. However, apartments are now being sold at Rs 1,850 per sq ft in the resale market. Here too, the company has increased the rates to Rs 2,200. It plans to hand over possession in 2009.

Pointed out Ved Prakash of Atharvaa Properties, “Jaypuria, Niho Scottish and Crescent Park are the projects at Indirapuram that have been delayed by 12 to 18 months. The rate of these projects has been revised by 20 per cent to 30 per cent since the time of launch.” Greater Noida, where the realty market collapsed steeply, is home to some famous projects.

Unitech’s Verve, Habitat and Cascades projects located here are not yet ready for possession.

The rates too have been hiked since launch. “Luxury project Unitech Grande on the Noida- Greater Noida Express- way has multiple price points floating in the market. When the property is not ready and the company faces financial problems, investors move away from the project. The Grande could be delayed,” said Rajiv Mehrotra of Sunshine Properties.

Unitech’s spokesperson however, was not available for comment.

Gurgaon’s over- supplied Sohna Road has also been hit hard by the downturn. Orchid Petal, a project located in this area, has been delayed by more than a year. Some other luxury projects too, on this road are likely to be delayed. “Market has limited buyers of luxury housing in Gurgaon. The second phase of some big projects in Gurgaon would be delayed because of the slow construction work,” said Naresh Gaur of MNC Propmart.

In neighbouring Faridabad, over the past two to three years, developers in the Nahar Par area sold properties promising better infrastructure and amenities.

Projects such as Ferrous City by Ferrous Infrastructure and Developers, Triveni Signature by Triveni Infrastructure Development Ltd and Pal Gardens from Pal Infrastructure and Development Ltd in Sector 89 have been delayed. Sector 78 too, is home to delayed projects from Triveni and Pal Group.

Developers have now begun offering properties at Rs 1,800- 2,100 per sq ft. Two years back, these were available in the range of Rs 1,300- 1,500 per sq ft.

Commenting on the delays, a Delhi- based realtor said, “During the pre- boom period, most developers booked properties at a pre- launch stage. While big developers were invested in several projects, small ones were unable to complete the projects due to lack of funds. Small developers were also unable to sell in the initial stages of the project. This led to further delays.”

Source : http://indiatoday.digitaltoday.in/index.php?option=com_content&task=view&id=29227&sectionid=4&issueid=93&Itemid=1

Tatas to develop properties on excess land

TATA Housing Development Company, the real estate arm of the Tata group, plans to leverage its tie-up with banks and financial institutions by developing properties on surplus land owned by other Tata group companies that it can later sell to consumers.

The tie-up with banks enables the company to avail of loans at attractive rates. That will help Tata Housing counter the ongoing slump in the real estate market, said a senior Tata Housing executive, adding that loans for their company projects can be availed of at rates in the 6-9% range, at a time when similar loans are contracted at
11-14%.Currently, Tata Housing is in the process of identifying excess landbanks owned by the group companies such as Tata Consultancy Services, Voltas, Rallis India, Tata Motors, Tata Coffee and Tata Tea in various cities.’We have tied up with different banks depending on the amount and requirements. Consumer finance for residential projects are done by various banks, including SBI, IDBI, PNB, Axis Bank, HDFC, ICICI and others,’ said MD Brotin Banerjee.The rate of interest offered by these banks varies depending on the client profile and the income level of the customer and the credibility of the customer with the respective bank. The range for Tata Housing projects starts from 6% and goes up to 8-9% for the first year, said Mr Banerjee.

Tata Housing’s tie-ups with banks assumes significance, as it comes at a time when the real estate sector is witnessing delays and even annulment in projects due to inadequate finances or costly acquisition of land. Many developers have either put on hold their projects or moved out of earlier announced projects.TCS, the Tata group’s software company, has around 250 acres of excess land spread across Pune and Hyderabad, while consumer goods company Voltas owns 25 acres in Hyderabad. Rallis India, too, owns 100 acres in the southern city. Although other group companies, such as Tata Motors and Tata Tea, have excess land bank, details of the same couldn’t be obtained. Tata Housing wants to develop mixed use project, commercial, residential on the identified lands.THDC has several residential projects in Mumbai, Pune, Goa and Bangalore and is currently developing three residential projects and has completed an IT Park in Bangalore.

Source : http://www.pr-inside.com/tatas-to-develop-properties-on-excess-r1061207.htm

Marriott To Add 57 New Hotels In Asia Over Next 4 Years

HONG KONG -(Dow Jones)- Marriott International Inc. (MAR) said Monday it plans to open 57 new hotels across Asia in the next 48 months, mostly in China and India, despite the global economic slowdown.

Marriott said in a statement it plans to open 21 new hotels in China, 24 in India and eight in Thailand in the coming four years.

“While we’ve experienced our most robust growth in China, India and Thailand have demonstrated significant strength in recent years,” said Ed Fuller, president and managing director for international lodging at Marriott.

Those 57 new hotels will provide 15,510 guest rooms, it said.

Marriott operates 109 hotels, or 39,313 guest rooms, in Asia. The company operates more than 3,100 lodging properties globally.

Source : http://money.cnn.com/news/newsfeeds/articles/djf500/200902160528DOWJONESDJONLINE000131_FORTUNE5.htm

iProperty.com launches iConnect

IPROPERTY.COM INDIA, India’s leading real estate portal today (February 16) launched social media platform- “iConnect”, showing that user participation in the first two weeks has exceeded company expectations.

iProperty.com formerly RealAcres.com had introduced “Simply Ask” India’s first real estate QnA section, back in year 2007. Simply Ask was a huge success and that inspired the company to go ahead and launch again India’s first professional networking real estate section called “iConnect”

iConnect that lets iProperty.com’s growing community of consumers and real estate professionals pose questions and exchange answers and information about real estate in real time. According to iProperty.com data, the most popular topics include home buying advice, market conditions and recession issues.

iConnect features include:

A group allow like-minded members within your community to build their own little group.
Create and join groups, create group discussion.
Keep up to date on what is happening within your social circle and receive real estate updates.
Seek advice within the community and ask all your queries.
Subscribe to group activity stream.
Add applications to grow and expand your network.
Create own identity badge.

“For home buyers, investors, brokers or builders, iConnect is the perfect interactive platform to share information and offer free advice which makes good business sense and builds trust among community,” said Murli Ramkrishnan, chief operating officer (COO) of iProperty.com. “iConnect is a great social media platform to educate potential buyers and helps raise confidence investing in real estate,” he added,
About iProperty.com India

iProperty.com formerly RealAcres.com, venture of Horizon InfoVentures Pvt Ltd, member of Australian Stock Exchange-listed IPGA Limited, is India’s leading online real estate portal that caters to real estate industry with more than 211,562 property listings. iProperty.com’s networked team track and interpret the market forces and trends that affect real estate business to provide the best-informed solutions for real estate professionals such as developers, builders, financial institutions etc, with the major thrust in residential sector. It provides financial and real estate news to those who evaluate, invest-in and manage real estate industry.

iProperty.com updates property rates for both commercial and residential sector sourcing from its networked property valuators across India and other real estate institutions. iProperty.
Other Articles by  Pooja Pathak
Walk to work: The new mantra of Pune SEZ
Real estate getting serious through community portals
com has a strong media presence in Asia and supports international events and conferences.

Source :http://www.merinews.com/catFull.jsp?articleID=15711043

Indian ProperIndian Property Down, But Not Outty Down, But Not Out

Refusing to be out of the limelight, the real estate sector is hitting the headlines all over again. A couple of years ago, real estate was the talk of the town when the property market was booming and seemed to be the best bet for investors. These days too, the sector’s development is making headlines, albeit for wrong reasons. Realty news today is marred with negativities such as liquidity crisis and project delays and property transactions have come to a virtual standstill. Any talk of investment in real estate is frowned upon. If the earlier optimism was a case of irrational exuberance, the pessimism of recent days too is uncalled for.

“It is true that the sector is going through a rough patch, but so are other sectors in the country. Yes, intense speculation had artificially jacked up property prices but speculators have either bowed out or are on their way out,” says property agent, the sector may be down, but certainly not out. The future increase for the sector will come from the segments, which cater to the masses and are affordable, he adds.

Even in times of a slowdown, Kolkata-based Bengal Shristi Infrastructure Development is spending more than Rs 2,000 crore towards the development of more than 90,00,000 sq ft at Asansol, Haldia, Ranigunj and Krishnanagar. “We are and we will be investing where there are end-users. Our investment will be fuelled by actual demand so we are not much worried about returns on investment. They will come in due course,” says Hemant Kanoria, director, Bengal Shristi. He adds that the company plans to sell properties in these areas at 20 per cent premium over local development.

Kumar Sankar Bagchi, managing director, Bengal Peerless Housing Development Company, agrees. “Yes, the future lies in affordable housing. We have already started moving to far-off suburbs and smaller towns such as Shantiniketan and Seuri in West Bengal. Many people in those places are sitting on idle funds because they did not have too many spending options. But they now have aspirations and, therefore, there is a demand for comfortable housing from people who actually propose to stay in those houses,” he says.

In fact, even big developers such as DLF, Unitech, Parsvnath and Omaxe have realised that future growth would lie only in those verticals which come within the budget of a large majority. “Our focus in 2009 will be to build houses that are affordable to a large majority,” says Sanjay Chandra, managing director, Unitech.

A large number of end-users take home loans to buy a house, says Rohtas Goel, chairman Omaxe. “Our focus will be to build houses wherein the EMI (equated monthly installment) for home loan comes under one’s monthly budget,” he says.

For more Detail on India Real Estate and Rental Services log on to http://www.indiapropertyhouse.com

Source : http://www.bestsyndication.com/?q=node/24222

Disha Direct to showcase its properties at Shoppers

Mumbaikar scouting for second home could not have asked for more. In an innovative marketing effort, Disha Direct, pioneers of the ?Second Home? concept, would be showcasing 15 projects at seven of Shoppers Stop stores in Mumbai.

Disha Direct will be presenting prestigious projects such as Flora County at Vikramgarh (Thane), Orange City (Kasara), Madhuban Sai City (Talegaon) and Sea View Shimmer (Uttan), along with other projects such as Riverdale (Talegaon), Bay Vista (Alibaug) and Kasgaon (Shahapur).

The projects to be showcased by Disha Direct at Shoppers Stop stores at Bandra, Andheri, Juhu, Chembur, Kandivali, Malad and Mulund would be continuing for a period of three months beginning from February 7, 2009.

Disha Direct Marketing Services Pvt Ltd?s CEO & MD, Santosh Naik said, ?Known for its unique marketing strategies, Disha Direct will now market their properties in lifestyle retail environment through a unique promotion at Shoppers Stop. The projects on presentation with their location advantages are offering charismatic homes with world class facilities and ambience at competitive prices?.

The customers visiting the Disha Direct stall at Shoppers Stops stores in the above mentioned seven locations in Mumbai during February 10th to March 31st, 2009, could win attractive prizes by participating in a contest as a part of the promotional campaign ? Share Your Dream.

About Disha Direct:

Disha Direct is a leading real estate marketing organisation. Its name is synonymous with 2nd homes and leisure properties away from the city. Today it offers services across the entire spectrum of real estate- be it residential properties in cities and towns, 2nd homes away from the city, plots of developed land, commercial properties, expansive acres of land or some rare

charismatic homes and investment opportunities. Well-equipped with a team of over 180 professionals, 7 brands, 10 offices, International Offices at Dubai & New York, 8 completed projects, 28 ongoing projects and 4000 happy customers; Disha Direct is not just an ensemble but a philosophy etched in the minds of many. For more details, log on to www.dishadirect.in

Source : http://pr-usa.net/index.php?option=com_content&task=view&id=171857&Itemid=31

First Time in India- Property Search with Interactive Maps

Allsquares.com has launched India’s first property search by interactive maps. This service enables a property seeker to search for properties directly on a map.

Mumbai, India, February 14, 2009 –(PR.com)– “We did a survey and found that people shifting to new cities had a problem understanding the different locations. They were looking for property which would be nearer to their workplace or easily commutable. So, this service helps them in understanding the location. Many people wanted to know the exact location of the property as it helped them to shortlist the properties they are interested in, so, we started this interactive map service ” says Geet Kaur , Business Head for Allsquares.com. With this service a person can easily search properties with a just few clicks. The map shows all the property listed within a particular region and a click on the marker opens a information box which shows other details of the property. Even for a person, listing their property, the site has an easy map mark up system. All one needs to do is type the city and a prominent road name, the map directs you to that location, find property location and you are done with just a click. It is also possible to view the map with satellite images. “Our efforts are to make Allsquares.com the property seeker’s ultimate destination using innovative technology. We will soon launch a listed property to a given destination road direction map similar to the GPS system “ says Geet Kaur.

Source : http://www.pr.com/press-release/132365

Benefit from home loan swap

If you thought only crude oil prices have fallen drastically to 2006 levels, think again; with the recent spate of interest rate cuts in home loans by SBI, the rate offered by the bank is back to its 2005 levels.

State Bank of India has now come out with yet another rate cut for all categories of home loans. For a period of one year from now, the interest rate will be fixed at 8 per cent irrespective of the loan amount. Further, for an existing home loan customer, the bank has introduced a multi-purpose SBI Lifestyle Loan, where customers can borrow up to 10 per cent of their home loan up to Rs 5 lakh at an interest rate of 8 per cent per annum for one year. This effectively works like a personal loan.

With the housing sector under pressure of the slowdown and the declining interest shown by home buyers, public sector banks (PSB) are now offering competitive interest rates, so much so that they appear attractive compared to their private sector peers’ offering. Recently PSBs announced two sets of interest rates one up to Rs 5 lakh (at 8.5 per cent) and above Rs 5 lakh to Rs 20 lakh at 9.25 per cent as part of the Government’s stimulus plan.

Will the rate cut offer any substantial benefit to the borrowers? Going by the fact that an average size of home loan in SBI’s portfolio is about Rs 17 lakh, we look at the impact for customers who take a Rs 5 lakh or Rs 20 lakh home loan.

If one opts for a fresh loan of Rs 5 lakh the effective saving comes to Rs 1,560 (compared to the earlier rate of 8.5 per cent). For a Rs 20-lakh loan, it works out to Rs 16,100 per annum (compared to earlier rate of 9.25 per cent). But going by the trend, interest rates are clearly heading south, providing an opportunity for genuine first time buyers. The overall interest rate appears conducive for such a buyer.

Swap

If you are an existing home loan borrower with any other bank and paying interest of 12.5 per cent, the offer by SBI may help you save a decent sum for at least a year if you opt for a transfer of loan.

The cost of such a pre-closure may work out to about 2 per cent of the outstanding. Further, you may be charged 0.5-0.75 per cent for processing and legal charges.

Assuming your outstanding loan is Rs 20 lakh with an interest of 12.5 per cent and balance tenure of 15 years, your saving for one year would be Rs 11,450 (for 15 years at 12.5 per cent your EMI works out to Rs 2,95,812 lakh per annum and at 8 per cent it works out to Rs 2,29,368 lakh) after deducting 2.75 per cent (Rs 55,000) of your outstanding.

While the amount may appear to be insignificant given its short period, investors should keep in mind that after this one year, they may move to an interest rate regime that could well be lower than the present rates.

Personal loan

Apart from the home loan, customers would find the “Lifestyle” loan offer or, in other words, the personal loan tagged with the offer an attractive proposition.

Assuming you have an existing home loan with SBI, you can borrow 10 per cent of the loan amount at 8 per cent for one year.

If you have availed any other personal loan at a higher cost, this attractive interest provides an opportunity to swap the loan and to reduce the interest cost at least for a year. However, the maximum amount of such personal loan is restricted to Rs 5 lakh.

Source : http://www.thehindubusinessline.com/iw/2009/02/15/stories/2009021550931300.htm

Property mela has many takers

Bangalore: Property portal MagicBricks.com launched a two-day realty expo at Koramangala Indoor Stadium on Saturday. Over 40 builders,  including Mantri Developers, Vaswani Group, SJR, Vakil Housing, Arattukulam Developers, Goel Ganga Group, Arya Group, Fortune Group, August Ventures and Sterling Developers will showcase over 200 projects.

Just when you thought home seekers had vanished from the market, hundreds flocked in just under an hour of the opening. Many residential and commercial property options were available with attractive interest rates, low processing fees and special discounts for spot bookings. Many developers removed sales tax component from the total cost.

From affordable homes starting at Rs 30 lakh to penthouses pegged at Rs 1.5 crore and more, there was something on offer for everyone. Vakil Housing is marketing plots located beyond Electronic City. Some developers are offering clubhouse amenities, including squash court, billiards room, table tennis room, etc.

State Bank of India’s stall was abuzz with people seeking information on the 8% per annum home loan rate that’s on offer.

Source : http://timesofindia.indiatimes.com/Bangalore/Property_mela_has_many_takers/articleshow/4129870.cms

No Deduction in stamp Duty on Real Estate

After dithering for over a month, the revenue department, led by senior Congress minister Patangrao Kadam, has dropped the proposal to revise the stamp duty on real estate transactions. “We had received a series of proposals from a section of builders and the Maharashtra Chamber of Housing Industry (MCHI), asking us to reconsider the existing stamp duty rates in view of the fall in real estate prices. Kadam had even heard the builders’ view. But now, it appears that the government is no mood to reduce the stamp duty,’’ a senior revenue department official said.

The revenue department decides the amount of stamp duty on real estate transactions for a particular year on the basis of the ones carried out in the previous year. Accordingly, the registrar of stamp duty issues a statement of ready reckoner for charging stamp duty on real estate transactions on January 1 every year. “In the current year, we will levy a stamp duty according to the ready reckoner rates promulgated on January 1, 2008,’’ the official said. Chavan and Kadam had asked the revenue department to study the memorandum and submit a report. “We studied the pros and cons of the proposal and concluded that there was no need to reduce the existing stamp duty rates. However, the issue was still open for Chavan and Kadam,’’ the official said.

The official said the ready reckoner rates prescribed by the revenue department were lower than the real estate rates of private builders. “In some areas, the ready reckoner rate was Rs 10,000 per sq ft, and the one prescribed by private builders was Rs 30,000 per sq ft. After the slump, it has come down to Rs 18,000 to Rs 22,000 per sq ft. Despite the slowdown, the rates prescribed by builders are still higher than the ready reckoner rates,’’ he said. The official added that since the government was facing resource crunch following the implementation of the Sixth Pay Commission report, it was unlikely to slash stamp duty.

Source : http://www.indianrealtynews.com/real-estate-india/no-deduction-in-stamp-duty-on-real-estate.html