Disha Direct’s Monsoon Fun Fest

Mumbai is under the wet spell of monsoons. It is that time of the year when Mumbaites grab this opportunity to travel to coveted destinations. Disha Direct, the leading real estate marketing organisation of India believes in consumer centric initiatives. Banking on the idea of making monsoons a celebrating experience, it has announced the one-of-its-kind Monsoon Fun Fest for its 
potential patrons. On chosen Sundays, it is organising a Funday at two of its finest sites. Out of the two sites, one is located at the flourishing hill station of Shirol near Kasara. The other site is at Alibaug, the most preferred holidaying destination of Mumbaites and rest of Maharashtra. Both the projects, Landmarc Hills at Shirol and Bay Vista at Alibaug being highly popular, the Monsoon Fun Fest is only going to complement their prominence. Secondly, during monsoons these destinations are worth visiting for the natural richness they get crowned with.

To begin with Disha Direct’s Landmarc Hills is a project of N. A. Plots. These plots promise good appreciation in land value and make good investment sense. Given the growth prospects of Shirol with due credit to the ongoing expansion of the Mumbai-Nashik highway to four lanes, ‘Landmarc Hills’ holds tremendous potential for future development. All the plots are completely clear with required legal approvals and permissions; equipped with excellent infrastructure, loaded with contemporary amenities and 24 hours security. At an opportune time, these plots can be transformed into most desirable concrete form, be it a weekend bungalow or even a full fledged township. Then there is Bay Vista at Alibaug. For those who wish to own a dream home alongside a dream beach, Disha Direct’s Bay Vista is an ideal choice to begin a new lifestyle. Just 2.5 kms away from Varsoli beach, it is an evolving world of 141 studio apartments. Overlooking a picturesque club house with a beautifully designed swimming pool and a landscaped garden, these apartments weave a real good experience. Alibaug being considered a global lifestyle destination and the first choice of crème de la crème from Mumbai; Bay Vista being developed in Alibaug unlocks a world of endless possibilities.

Disha Direct’s Monsoon Fun Fest presents people with an innovative reason to come out of their homes to experience the best and most enjoyable rains at locations nearest to Mumbai. At this fest, they get this pleasant opportunity to spend a day filled with fun, games, sumptuous food and a fantastic weather. One Sunday that will be a memorable one with Disha Direct adding an extra dash of excitement to it. Likewise, the sites to be visited at Shirol and Alibaug are well equipped to take care of the fun quotient of the guests. Right from fun games to a short stay and to the delicious food; will be taken care by the Disha Direct team.

Officially the Monsoon Fun Fest was flagged off on July 26, 2009. The first batch of revellers left exactly at 8 a.m. for their respective destinations. Being a Sunday, it not only received great participation but the people who travelled to Landmarc Hills site at Shirol and Bay Vista site at Alibaug, made the most of their visit. Appreciating this unique gesture of Disha Direct some have also expressed desire to refer the same to their friends. Some have gone a step ahead by personally sending across wishes for a great future and their trust on Disha Direct. The next Sunday session will be announced shortly through personal emails to interested patrons.

Speaking on the innovative beginning of Monsoon Fun Fest Santosh Naik, MD & CEO of Disha Direct expressed, “We call this fest a picnovative (picnic combined with innovation) technique of promoting our properties. We believe our potential patrons should get the first hand experience of understanding the site dynamics during all seasons.”

About Disha Direct:

Disha Direct is a leading real estate marketing organisation. 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 200 professionals, 7 brands, 10 offices, International Offices at Dubai & New York, 1 Real Estate Expert Advisory, 12 completed projects, 35 ongoing projects and 4000 happy customers; Disha Direct is not just a conglomerate but a philosophy etched in the minds of many. For more details about the project, log on to www.dishadirect.in or speak to a Disha Direct executive on 022-25817900.

Source : http://www.pr-inside.com/disha-direct-s-monsoon-fun-fest-r1410586.htm

Carlson Hotels adds 33 properties in quarter

While some travel industry players are cutting back their operations, Carlson Hotels Worldwide is finding room for expansion. The Minnetonka-based hospitality company reported Monday that during the second quarter of 2009, it added 33 new hotels and resorts to its portfolio — and inked franchise or management agreements for an additional 20 future hotels. Carlson’s new properties span 13 countries, including 13 Radisson and Radisson Blu properties; 15 Country Inns & Suites By Carlson properties and five Park Inn locations. Meanwhile, the company’s franchise or management signings for 20 future hotels include locations in the United States, Brazil, The Netherlands, Germany, Belgium, Poland, Morocco, Mozambique, Russia, Saudi Arabia, South Africa, Tunisia, United Arab Emirates and India. These new properties should open within the next two to three years, said company spokesman Jeff Faust. “Any expansion is great in this industry right now because a lot of (hotel companies) are contracting,” said Steve Sherf, a principal at Hospitality Consulting Group in Minneapolis. Much of Carlson’s expansion in the second quarter was powered by its Country Inns & Suites By Carlson brand, which opened 15 new properties in the second quarter, including 12 locations in the United States. The brand also signed five new hotels in the second quarter, including locations in Augusta, Ga., Seguin, Texas and India. Advertisement At the end of the second quarter, the Carlson Hotels Worldwide had 1,032 hotels with more than 153,500 rooms in 73 countries. Carlson hotel brands also include Regent Hotels & Resorts and Park Plaza Hotels & Resorts. Carlson Hotels Worldwide is part of Carlson, a global travel, marketing and hospitality company. Source :
http://www.finance-commerce.com/article.cfm/2009/07/28/Carlson-Hotels-adds-33-properties-in-quarter

Govt to provide 1% home loan subsidy

Finance Minister Pranab Mukherjee today announced an interest subsidy of 1 per cent for one year on housing loans of up to Rs 10 lakh for properties worth less than Rs 20 lakh, a move that has been widely welcomed by realtors and home loan companies. The measure is expected to cost the exchequer Rs 1,000 crore.

Mukherjee also allowed developers of housing projects a tax holiday under section 80 IB(10) of the Income Tax Act on profits from projects approved between April 1, 2007 and March 31, 2008, provided the projects are completed on or before March 31, 2012. Mukherjee asked developers to pass on the benefits of this tax break to consumers.

Mukherjee made these announcements in the Lok Sabha today as part of his reply to the discussion on the Finance Bill. Both houses of Parliament passed the Finance Bill 2009-10, which included a raft other concessions.

Assuming a monthly saving of Rs 60 per lakh, today’s announcement implies that a borrower saves about Rs 7,200 on a 15-year loan of Rs 10 lakh. The interest rate subvention will be routed through the scheduled commercial banks and the housing finance companies registered with the National Housing Bank.

“The demand for affordable housing is picking up and the interest subvention of 1 per cent on home loans will make it easier for people to buy homes,” said Pradeep Jain, chairman, Parsvnath Developers.

Today’s announcements mark the second stimulus package for the slowing real estate sector, which has been hit by slowing demand and rising costs. Last December, the government had announced a concessional interest rate scheme for housing loans as part of the first fiscal stimulus package. The Indian Banks Association (IBA) had accordingly worked out an interest rate of 8.5 per cent for fresh home loans below Rs 5 lakh and 9.25 per cent for loans between Rs 5 lakh and 20 lakh. Now the rate for loans up to Rs 10 lakh will drop another percentage point.

According to the latest Reserve Bank of India data, outstanding home loans were estimated at Rs 2,75,514 crore as on May 22. On a year-on-year basis, the growth rate had slowed to 5 per cent at the end of the third week of May, 2009 against 13.8 per cent a year ago. During the same period, non-food credit growth had slow to 17.6 per cent from 24.2 per cent. Most home loans are in the sub-Rs 15 lakh segment and with prices declining more and more people are opting for sub-Rs 30 lakh loans.

Describing the subsidy as a “positive development for small borrowers”, Union Bank of India Chairman and Managing Director M V Nair said, “It will boost demand for loans. There has been a price correction in the real estate market over the last six months and lending rates have also come down.”

Nair, who also heads the IBA, added that the move would act as a “catalyst for those who were sitting on fence”.

Renu Sud Karnad, Joint MD, HDFC, the country’s largest mortgage player, said the move would “result in increased activity in affordable real estate, which in turn will create employment”

“With real estate directly and indirectly supporting 269 industries, big and small, the move will have a positive impact on the economy,” she added.

R R Nair, director and chief executive officer, LIC Housing Finance, the country’s second-largest mortgage player, said the subsidy would help customers from rural and semi-urban areas because the ticket size of their loans is usually below Rs 10 lakh.

“It is generally the bigger cities that have loans of ticket sizes greater than Rs 30 lakh. Roughly 50-60 per cent of our loan book consists of loans below Rs 10 lakh and almost 99 per cent of our advances are below Rs 30 lakh. However, the repayment capacity of borrowers and quality of these assets will also have to be considered,” he said.

Nair suggested that it would help if the government gave lenders an assurance that it will make good their losses if a borrower defaults. “This will help take the scheme to its intended beneficiaries so that deserving people can avail of credit,” he added.

Source : http://www.business-standard.com/india/news/govt-to-provide-1-home-loan-subsidy/365139/

Tonic to builders and buyers

July 27: Middle and lower-income subscribers to new home loans stand to save as much as Rs 1.5 lakh on interest payment under concessions announced by the Centre today while wrapping up discussions on the budget.

Finance minister Pranab Mukherjee, replying to the debate on the Finance Bill that was later passed in the Lok Sabha, also offered some concessions aimed at easing the burden of the downturn-hit industry. (See chart)

The measure that will help middle-income earners most is the 1 per cent interest subsidy on home loans up to Rs 10 lakh to buy houses worth up to Rs 20 lakh. The subsidy will translate into a total saving of Rs 28,920 on interest payment during the tenure of a 5-year loan and Rs 1.51 lakh over a 20-year period.

As many as 70 per cent of home loan borrowers fall in the Rs 10-lakh bracket, industry sources said. The government’s offer to underwrite 1 per cent of interest is expected to cost it about Rs 1,000 crore, according to the finance ministry.

“It (the subsidy) is a welcome step as it will improve affordability. Any such step tends to improve activity in the real estate and construction sectors, which are among the largest employment generators,” said Renu Sud Karnad, joint managing director of HDFC.

The subsidy announcement came a day ahead of the RBI’s credit policy which analysts do not expect to offer interest rate cuts.

Mukherjee did not confine the incentives to real estate to the subsidy alone. He also offered a tax holiday to projects that more or less got off the ground at the start of the downturn if they finish construction by March 2012.

Builders of projects that got approval between April 1, 2007, and March 31, 2008, need not pay tax on profits if they are completed on or before March 31, 2012. Given the euphoria of 2007, builders had rushed to launch a slew of projects that ran into rough weather when the tide turned in the latter half of 2008. Realtors have been pleading for relief after housing prices fell by as much as 15 to 25 per cent in many cities.

“The incentive is expected to help more big developers who are stuck with high leverage and low sales but the impact could be felt by all,” Pradip Chopra, director of Calcutta-based developer PS Group, said.

Rajiv Talwar, the executive director of developer DLF, agreed: “These measures will help to a large extent to sell stocks of affordable housing and boost overall demand.”

However, all real estate players were not enthused. Arun Puri, chairman of property consultant firm Jones Lang La-Salle Meghraj, said: “Such tokenism may not really perk up the market… larger gestures like reduction in interest rates and incentives for developers are needed to rescue the market.”

Mukherjee also addressed an accounting concern of industry, clarifying that changes in service tax would be implemented only from September 1. Industry associations had requested the government for time to make changes in their tax software.

Industrial growth had shrunk in December and January, but Mukherjee asserted today that the measures already announced in the budget and earlier as part of two stimulus packages could push the growth in gross domestic product to 8 to 9 per cent by end-2010.

Mukherjee said he would stick to his promise of placing a draft direct tax code within 45 days of taking over as finance minister and it would be tabled in the winter session of Parliament. “We will make some major changes in the tax administration and related laws in the country,” he said.

The minister promised to push through a nationwide goods and services tax by April 1, 2010, “with cooperation from states….”

The measure is expected to reduce taxes on goods and services and make taxation uniform throughout the country.

Mukherjee had a message for those disappointed by the lack of reforms in the budget. “Reforms will be very much on our agenda. It is a continuing process… it will not be a mantra to be chanted occasionally,” he said.

Source ; http://www.telegraphindia.com/1090728/jsp/frontpage/story_11291127.jsp

EDC offers home, car loans to govt servants

PANAJI: The Economic Development Corporation on Monday announced housing and vehicle loans to state government employees and loans of up to Rs 20  lakh to professionals and small enterprises.

Under the housing loan scheme, loans of up to Rs 25 lakh will be extended to permanent government employees and those of its corporations for housing as well as for extension and renovation of existing houses. The interest rate applicable will be 10-12% and payable over a 20-year period. The vehicle loan offered will be up to Rs 5 lakh and payable in five years or when a person attains superannuation age at an interest rate of 15%. The loans will be on a floating interest rate and the EDC’s margin will be 15% as promoter.

In comparison, home loans from State Bank of India can be availed of at 8-10% and loans from HDFC and ICICI banks at Rs 9.25%. Vehicle loans from SBI are also at 8-10%, while those from HDFC are at 12.75% and from ICICI at 14.75%.

While the interest rates of loans from banks are currently less, the difference is that the EDC schemes provide the option to club the spouse’s income to compute the eligible loan amount.

Source : http://timesofindia.indiatimes.com/NEWS/City/Goa/EDC-offers-home-car-loans-to-govt-servants/articleshow/4827885.cms

Ambuja Realty to execute Rs 4,000 cr housing projects

Ambuja Realty Development has planned to execute projects worth Rs 4,000 crore in the next five years. According to Harshvardan Neotia, company’s chairman, all options would be kept open for raising funds for the projects. The company has kept options open for divestment in the closely held company.

He informed, “IPO or any other means to raise funds would depend on several conditions like market response, project schedules, booking, bank credit and capital market conditions. If the situation demands, we are open to raise funds from the market, but there is no plan as of now.”

Gurgaon, Faridabad to be developed as green cities
The Haryana government has planned to develop Gurgaon and Faridabad as green cities.

Haryana chief minister Bhupinder Singh Hooda said that the project meet the energy challenges, reduce dependence on fossil fuel, expensive oil and gas for energy and also to promote increased use of renewable energy. “The state government would be assisted in preparation of a master plan for increasing energy efficiency and renewable energy supply in these cities, besides having in place institutional arrangements for implementation of the master plan,” Hooda said.

These will be the first cities in Haryana to be brought under the development of solar cities programme, launched by the new and renewable energy ministry.

Oakwood plans apartment with five-star facilities
Oakwood Worldwide, a leading player in the service-apartment segment, has announced plans to open 11 five-star temporary housing facilities across the country by 2012. The locations for its facilities would include Thiruvananthapuram, Chennai, New Delhi, Hyderabad and Ahmedabad. Vikas Kapai, country general manager, Oakwood Worldwide, said “These properties are under construction. Meanwhile, we have also signed 11 deals with real estate developers for the new constructions. It would come up with two more properties in Mumbai, and two in Chennai in the next one year.”

Realtor to develop vaastu-compliant township
Kolkata-based Shristi Infrastructure Development has planned to develop a mega integrated township with the name of Shristinagar at Asansol, West Bengal.

The vaastu-compliant project, with built up area of 6 million sq ft, will offer 2,400 apartments, in addition to plots, group housing structures, bungalows, row housing and premium residential apartments. Keeping options open for people who would prefer community living and yet want to develop a dream home. We will develop vaastu-compliant houses for 5,000 families at Shristinagar, spread over 90 acres,” said Hemant Kanoria, director, Shristi Infrastructure.

RICS to launch professional courses in realty sector
Royal Institution of Chartered Surveyors (RICS), the UK-headquartered organisation which trains professionals working in the land, property and construction sectors, has decided to start its professional courses in India.

Sachin Sandhir, MD, RICS India, said “We plans to start Centre of Excellence for Real Estate & Construction, for the development of specialised skills for professionals employed in the realty sector.” He said that the specialised courses in realty and construction management with durations of six months to two years.

Source : http://www.expressestates.in/full_story.php?content_id=93873

India Cuts Home Loan Rates, Some Taxes to Boost Growth Further

July 27 (Bloomberg) — India’s Finance Minister Pranab Mukherjee today lowered the interest rate on some home loans and reduced the tax burden for select industries, adding to four stimulus packages to revive a slowing economy.

The government will provide an interest-rate subsidy of 1 percent for loans of as much as 1 million rupees ($20,800) given for homes that don’t cost more than 2 million rupees, Mukherjee said, announcing amendments to the budget that was approved by parliament today.

The stimulus comes after Mukherjee’s July 6 budget that provided more funds for building roads, ports, utilities and reduced the tax burden on individual incomes to buoy demand and spur an economy growing at the slowest pace since 2003.

The central bank, which has reduced interest rates six times since October last year, will review monetary policy tomorrow in Mumbai.

“In the medium term, we must enhance internal demand,” Mukherjee said, replying to the budget debate in parliament in New Delhi today. “The fiscal stimulus which we have provided to confront the situation has paid dividends.”

India also extended a tax break for companies engaged in building industrial parks by two years to March 31, 2011, and exempted companies engaged in the repair and maintenance of roads from paying service tax.

India’s $1.2 trillion economy may expand 7 percent in the year to March 2010, the finance minister said July 6. Higher government spending resulted in the Indian economy stabilizing in the first quarter, maintaining the 5.8 percent pace of expansion recorded in the preceding three months.

Central Bank’s Forecast

India’s economy may grow at a faster pace than earlier forecast this year, the central bank said today.

Asia’s third-largest economy may expand 6.5 percent in the year ending March 31, the Reserve Bank of India said, citing a survey of eight estimates it conducted in June from agencies including the World Bank and the Asian Development Bank. The survey in March had estimated a 5.7 percent gain.

“We have chosen the path of higher spending to ensure that we can have a reasonable growth rate in the current year and return to a higher growth trajectory,” soon, Mukherjee said.

India needs 4 percent farm growth to achieve a 9 percent economic growth, the minister said.

India’s economy grew 6.7 percent in the year to March 2009, the slowest pace of expansion since 2003. Growth averaged 8.5 percent in the previous five years.

Mukherjee eased the tax burden on consumers and companies and boosted government spending to increase rural jobs in his July 6 budget to protect the economy from the impact of the worst global economic recession since the Great Depression.

The government also announced a tax holiday on profits from housing projects approved between April 1, 2007, and March 31, 2008, provided they are completed on or before March 31, 2012.

“I expect the developers to pass on the benefit of tax holidays to the buyers of these houses,” Mukherjee said.

Source : http://www.bloomberg.com/apps/news?pid=20601091&sid=aPQweZ.P2OfI

5% to15% Mall Vacancies in Major Retail Destinations

Mall vacancies in major retail destinations such as Delhi, Mumbai, Pune and Hyderabad climbed between 5% and 15% in June 2009, even as developers rewire their strategies to sustain cash flows. During the past six months, developers juggling with various revenue models have discovered to their relief that certain “flexible” formats like ‘minimum guarantee’ and ‘revenue sharing’ have picked up steam.

“Riding on a 30-40% annual rental growth in 2006 & 2007, and strengthening consumerism, developers in India planned and began constructing malls in dozens. A rental correction of 30-35% from the peak in 2008 was not able to entice retailers, leading to several malls becoming operational in the first six months of 2009 at high vacancies,” says Abhishek Kiran Gupta, head — research of global real estate consultancy firm Jones Lang LaSalle Meghraj (JLLM). According to Mr Gupta, the mall vacancies have continued to increase between 5% and 15% in retail hotspots like Delhi, Mumbai, Pune, Bangalore and Hyderabad.

“Select malls like Inorbit and Forum Value Mall in Bangalore, along with Select City Walk in Delhi, have shifted to a combination of minimum guarantee and revenue sharing models, accompanied by a performance clause in the agreement. Depending on the format of the store and the tenant, the revenue-sharing terms are decided,” Mr Gupta says, adding, “Such flexible revenue models are highly acceptable to the retailers as the risk is shared between the real estate owner and the retailer. Also, it makes the developer more accountable for generating footfalls and conversion rates in the mall. For the developer, it reduces the risk of high vacancy in the mall while counting on the probability of better revenues in future.”

Similarly, developers like the Entertainment World Developers Pvt (EWDPL) are in the process of constructing 20 such malls based on the revenue-share model across India. Gaurav Marya, the president of franchise solution company, Franchise India Holdings, says, “The revenue sharing model, where developers don’t charge rent and accommodate more local retailers into the malls, including local brands, can encourage a seamless model benefiting all the stakeholders.”

Retail consultant, Mr Wahid Ravji chips in: “The revenue-sharing model existed on the international retail scene, but has come very late to India. Most of the big deals finalised between retailers and mall developers are now on the revenue-sharing model. This model works well for both. Retailers now do not wish to shell out more than 4-5% of sales as rent, compared to the 10-11% they used to pay till a year ago.” According to Mr Ravji, the model will ensure that the mall developer continues to remain “interested” in the property and there are enough retailers in the mall to attract significant footfalls.

Source : http://www.indianrealtynews.com/retail-market/5-to15-mall-vacancies-in-major-retail-destinations.html

Ackrutis “Just Perfect Homes” receives Overwhelming Response

Sales touch the 1000 mark

* Luxury homes at Just Perfect Prices

Mumbai 23rd July 2009: Ackruti City’s ambitious project ‘Just Perfect Homes’ have sold more than 1000 flats and enquires for more are pouring in. The Just Perfect Homes series has three projects currently in Thane, Mira Road and Pune.

Ackruti launched its ‘Just Perfect Homes’ is a series with Ackruti Greenwoods in Thane in January 2009, followed by Ackruti Gardenia in Mira Road, and Ackruti Countrywoods in Pune. Two more projects in the series will launched in the near future. The two buildings of Ackruti Greenwoods have been completely sold out. Ackruti Gardenia in Mira Road and Ackruti Countrywoods in Pune have met with good response given the recessionary market conditions.

Commenting on the issue Mr. Hemant Shah, Chairman Ackruti City Ltd said, “At Ackruti we identified a void for lifestyle housing with all the modern facilities that come with luxury apartments. Just Perfect Homes is a step in the same direction; we are elated by the response that it has got in such a short time. It is our constant endeavor to improve the quality of life by providing superior quality infrastructure at optimum prices”

Responding to the latent demand in the market, India’s leading real estate developers Ackruti City Limited, launched the ‘Just Perfect Homes’ series in the first week of January. The upwardly mobile urban family is on the lookout for a dream house, with all the modern facilities to fit into their budget. These families are willing to pay for the value derived in providing them the appropriate ambience to come home to from a hard day’s work and the environment in which they can raise their families. ‘Just Perfect Homes’ are residential complexes, which are esthetically designed, with maximum optimization of space, well conceived to meet the aspirations of modern living, and benefits, which hitherto was available only in high-end luxurious complexes. Apart from this the complexes come with facilities like clubhouses, gymnasiums, recreation parks party room and host of other features, which have now become an integral part of modern living. Critical is that these upcoming complexes come not only close to and convenient geographies in terms of a critical mass of urban employment, but also provide easy access to other facilities like good and reputable education facilities, and robust infrastructure like, convenient shopping, accessibility to public transport and state of the art medical infrastructure.

Ackruti Greenwoods – Essence of Opulence – every nature lover’s destination will have 8 buildings comprising of a total of 1000 residential units of 1 BHK, Compact 2 BHK and 3 BHK’s. The open spaces are picturesquely landscaped with a well laid out jogging track, nana-nani park, open lawns and designated play area for children. Adding to the glory of the complex, the clubhouse has fully equipped gym with all latest equipments and a multi purpose hall for special events.

Ackruti Gardenia – Designed to please a woman’s eye – offers the best of contemporary living, with a choice of 1BHK, 1.½ BHK, 2 BHK 2 & 1/2 and 3 BHK flats across 14 buildings with over 1500 units. Spacious in design contemporary in its form, one can easily relate this living room to the finest abode. The master bedroom gives you an uninterrupted view of the landscape.

Ackruti Countrywoods – Serenity in the heart of the city – is strategically located in the upcoming and fast developing area of Katraj – Kondhwa Link road. Situated at a distance of 15 – 20 min from the city centre, the project is well connected with 2 D.P. Roads and one ring road. This project is within the PMC limits. ‘Ackruti Countrywoods’ is set over 60 acres of lush greenery with a total of 2500 flats across 50 buildings.

Source : http://www.equitybulls.com/admin/news2006/news_det.asp?id=57646

Karnataka tier 2,3 realty still down

BANGALORE: Despite Bangalore’s real estate market showing signs of recovery, properties in tier-2 and tier-3 cities across Karnataka are still down in the dumps. Demand for both residential and commercial real estate in these cities is down by up to 35% as buyers are opting for cheaper options in Bangalore.

Mumbai-based developer Sunil Mantri has been eyeing the tier-2 market in Karnataka but he says the recovery in these markets is not likely anytime soon.

Says Sunil Mantri, Chairman, Sunil Mantri Realty: “The tier-1 city is very cheap and property prices are very competitive. Particularly in the IT segment. There would be an impact on tier 2 cities; because if Bangalore can offer Rs 20 rental people would be reluctant to go Mysore which can offer a rental of Rs 15. That is the competition we are facing in Tier 1 vs Tier 2 cities.”

According to industry estimates, Mysore’s real estate market has seen demand drop by 25-35%, while Mangalore has seen demand drop by 25-35%. This trend is similar in other Tier-2 cities down south like Kochi and Coimbatore has seen demand dropped by 15-25%.

Analysts say new projects in Tier-2 cities have been put on hold as there is already oversupply in these markets.

Karun Varma, MD, JLLM – Bangalore: Correction can be anywhere between 10% and 40% and that’s what we’ve seen in tier 1 cities and that’s also happening in tier 2 cities especially on new projects which have been announced.

Analysts say the recovery in the Tier-2 and Tier-3 markets will happen only after the Tier-1 market get back on the growth track. Developers are looking to push sales by cutting down prices in tier one cities and are looking to cash out of smaller markets to reduce risks.

Source : http://www.utvi.com/utvilife/real-estate-market-news/27679/karnataka-tier-2-3-realty-still-down-.html

Omaxe scales New Heights

Omaxe Ltd has launched Omaxe New Heights, a residential project in Sec 78 Faridabad. Prices start from Rs 16.18 lakh and go up to Rs 25.23 lakh a unit to cater to the growing demand in the affordable housing segment, according to a press release.

Omaxe New Heights is a multi-storeyed Group Housing complex to be completed within 30 months from the commencement of construction.

Omaxe New Heights comprises of 2BHK (bedroom-hall-kitchen), 2BHK + study and 3BHK + study ranging from 850 sq.ft to 1,100 sq.ft and 1,350 sq.ft. Omaxe will offer free club membership, power back-up, and an inaugural discount to first few buyers.

Faridabad is central to Gurgaon, Noida and Delhi with the proposed metro rail connecting residents to the capital city and satellite towns, the release said.

The Royal Institution of Chartered Surveyors (RICS) has welcomed the Real Estate Regulation Bill (Promoters and Builders – Regulation and Control of Activities Act) but finds it falls short on accountability of State Government agencies involved in clearing projects.

According to a press release from the RICS, it has represented to the Ministry of Housing and Urban Poverty Alleviation that the draft real-estate regulation Bill, which is to be a ‘model’ for States to follow, is a step in the right direction. It clearly spells out the liabilities of the promoter, builders and agents and provides for suitable action for not fulfilling these liabilities and for violating clauses under the proposed legislation. It takes into account appropriate checkpoints and stages of a property transaction where regulation is most required.

The Bill will provide customers with a recourse in case of delayed deliveries, non-execution of conveyance deed, substandard quality of construction or any other deviances from the specifications agreed upon in the purchase and sale agreement.

The Bill makes the purchase and sale agreement mandatory and specifies the contents — this would remove ambiguities and make the transaction transparent and developers accountable, the release said.

While the Bill provides for stringent action against developers for any violation or delays in delivery, the State government agencies or local development authorities are, however, kept out of the purview of the proposed Act.

This could result in the developers being penalised for delays in clearances from approving authorities. The Bill ignores the accountability of local development authorities by not acknowledging the delays in project clearances; by keeping them out of the purview or regulation under this Bill and by not making appropriate provisions to make these authorities also accountable for delays.

An apex statutory or autonomous body preferably with quasi-judicial powers should oversee the functioning of the State-level bodies. The role of the regulatory body should be comprehensive to ensure that policy reforms are undertaken at the State level; the body should promote best practices, e-governance and skill development initiatives and monitor the ‘affordable housing for all’ agenda.

The regulatory body should be responsible for a wide range of activities such as improvement in regulatory framework with respect to modifications in antiquated land laws, duty rationalisation, single window clearance and computerisation of land records, setting up of minimum quality standards of registration of builders, setting up of reliable industry wide database, adoption of uniform valuation practices and improvement in accounting quality, setting standards and sharing best practices to meet housing policy objectives.

According to RICS, pending an enactment of the law by the State governments, an ombudsmen be appointed in the interim period.

RICS is a professional body in land, property and construction with over 150,000 members in more than 146 countries practicing in a wide range of specialisations. RICS is governed by a Royal Charter approved by the UK Parliament which requires it to act in public interest rather than simply advancing the interests of its members.

JLLM expands services

International real-estate consultant, Jones Lang LaSalle Meghraj, has ramped up its presence in Ahmedabad. The office was provisionally established in 2008 and is fully functional to meet business demands, according to a press release.

The office will also service the business requirements of clients in other areas of Gujarat, such as Rajkot, Bhavnagar, Vadodara and Surat. “Most retail and finance business is based in Mumbai, while Ahmedabad has the developer and investor bases,” the release said, quoting Mr Ashutosh Limaye, Associate Director – Strategic Consulting, Jones Lang LaSalle Meghraj.

This office links the two and allows JLLM to service Gujarat’s strong NRI community, the release said.

It has put strategic consulting staff in place at the Ahmedabad office as this is the first step in any real estate or infrastructure development project. There is a lot of thrust on infrastructure development in Gujarat, which is among the States that puts in infrastructure and then effects planned development.

Source : http://www.thehindubusinessline.com/iw/2009/07/26/stories/2009072650651500.htm

Tuscany Terraces perfect weekend getaway from Mumbai

Every urban creature yearns for that dream of unpolluted air and rolling greens around the home. A home in the hills, a hotel in the home, is how  developers of Tuscany Terraces describe their upcoming project of vacation homes at Neral, 80 km from Mumbai.

Straddled by the Matheran mountains on one side and the Deccan plateau on the other, it is the commercial capital’s closest weekend getaway as the region is famous for its temperate weather and panoramic views.

In fact, Matheran is possibly the tiniest hill station in India, perched at an elevation of 2,625 feet. “Less than two hours’ drive from Mumbai and five minutes from Neral Railway Station, a superb view of the mountains and the green cover all over, foothills of Matheran, Ulhas River, number of sight-seeing and adventure opportunities close by and surrounded by beautiful farm houses” is why Silvex Realty zeroed in on this venue, says Taposh Chakraborty president (hospitality business group), Silvex Realty.

On offer is Sterling Construction Systems (SCS)’ new-age panelised building technology based on ‘Lost-In-Place’ Formwork, which is a fast, reliable and cost effective construction system having customised applications.

This vacation home, including studio apartments beginning at Rs 26 lakh and going up to Rs 60 lakh, also comes with an assured 6% rent back option with 30 days of free stay each year. It also offers luxury facilities and amenities such as a spa, pool, a Best Western Resort and four-star deluxe service standards and maintenance 24×7. In fact, the prices are inclusive of ready-to-live-in furniture and white goods.
Since Neral is zoned within the Metropolitan Mumbai Region and is less than 40 km from the proposed site of the new international airport at Panvel, a vacation home here makes for an excellent investment opportunity. From the smallest studio apartment to the biggest one with a loft bedroom, all are modern, fully self-contained apartment accommodations inspired by Tuscany in Italy, with a round-the-year hospitality arrangement with GM Resorts, so no botheration of regular maintenance and security concerns. Lending their technical might are Australian design consultants Sinclair Knight Merz who have an established presence in India for over 30 years. A little slice of Italy, close to home. Bite into it.

Source : http://economictimes.indiatimes.com/Features/The-Sunday-ET/Property/Tuscany-Terraces-perfect-weekend-getaway-from-Mumbai/articleshow/4820892.cms

Rentals in Mumbai and Delhi are higher than New York

New Delhi-  The rentals in some of the better-known commercial places of Amchi Mumbai and  in Saddi Delhi are more than the rates of  even up market areas of New York. However, there is nothing to feel great that we have beaten America in one area. The other side of the story is that the high rentals are pinching the Indian industry, specially the BPO and Retail sectors. Before discussing that issue at a length, consider the rent rates of up market areas like Bandra Kurla complex and Nariman Point in Mumbai, CP and DL F. The current rentals in these places are as high as Rs 350 to 400 per sq. feet.

On the other hand, the rate for same kind space in America is not more than Rs 250 per sq feet. These really mind-boggling facts came to the light in a recently published report by Ficci and Real-Estate advisory, Frank and Knight. But hold on for a while. The rentals are also pinching and giving sleepless nights to Retail sector in general and BPO in particular.

Rentals in Mumbai and Delhi are higher than New York

Pranay Vakil of Frank and Knight says that not only in big cities, but also in tier- two and tier- three cities, the high rentals are proving too much for BPOcompanies. While fully endorsing the views of Vakil, spokesman of the BPO association of India, Deepak Kapoor said that the large number of BPO companies from different countries started their shops here for mainly two reasons. A. They can easily get youngsters with command on speaking English. B. The rentals of commercial space were reasonable when they landed here. It was then far cheaper compare to any place in America, England or Singapore. Unfortunately, that thing is no more there so far as rents are concerned.

Dr. Devinder Gupta of Century 21 real-estate firm says that both BPO and retail companies require huge space to start their operations. And in a present scenario, the going is really tough for them.”’ As they require very spacious space, they can not put so much money in order to buy the space every time and all the time. Rentals are also going across the board. That can slow down the much publicized growth of these companies,” Dr. Gupta warns.

The impacts of costly rentals are so much that it is impacting the bottom line of the BPO companies. Deepak Kapoor said that due to this very reason many BPOs have shifted from metros to cities like Chandigarh, Indore and Jaipur. As the rentals are no longer cheap even in tier 2 and tier 3 cities, these companies can think on the lines of moving out from Indian lock, stock and barrel. This is definitely the one possibility. Even Pranay Vakil has this fear in his mind. He says that countries like Bangladesh, Pakistan, and Vietnam would welcome such companies with both hands.

That even major retail players are too feeling he pressure of astronomical rentals can be gauged from the fact that recently at a function of FICCI, Bharti Enterprises Managing Director, Rajan Bharti Mittal accepted the fact that for Retail companies, both leasing and buying the space is becoming a big headache due to high costs. According to FICCI report, during the current year, more than 45-50 million Sq. feet commercial space would come up for grabs.

This figure would only go up in years to come. Dr. Gupta said that there is nothing bad or wrong in it. There would not be man takers for this space unless correction does not take place on rentals. Experts also say that both BPO and  Retail companies would be major users of commercial space in he recent years. If they back out, it proves too much for the builders.

Source : http://www.mynews.in/fullstory.aspx?storyid=22472

Mall owners focus on space fillers

AHMEDABAD: Mall vacancies in major retail destinations such as Delhi, Mumbai, Pune and Hyderabad climbed between 5% and 15% in June 2009, even as  developers rewire their strategies to sustain cash flows. During the past six months, developers juggling with various revenue models have discovered to their relief that certain “flexible” formats like ‘minimum guarantee’ and ‘revenue sharing’ have picked up steam.

“Riding on a 30-40% annual rental growth in 2006 & 2007, and strengthening consumerism, developers in India planned and began constructing malls in dozens. A rental correction of 30-35% from the peak in 2008 was not able to entice retailers, leading to several malls becoming operational in the first six months of 2009 at high vacancies,” says Abhishek Kiran Gupta, head — research of global real estate consultancy firm Jones Lang LaSalle Meghraj (JLLM). According to Mr Gupta, the mall vacancies have continued to increase between 5% and 5% in retail hotspots like Delhi, Mumbai, Pune, Bangalore and Hyderabad.

“Select malls like Inorbit and Forum Value Mall in Bangalore, along with Select City Walk in Delhi, have shifted to a combination of minimum guarantee and revenue sharing models, accompanied by a performance clause in the agreement. Depending on the format of the store and the tenant, the revenue-sharing terms are decided,” Mr Gupta says, adding, “Such flexible revenue models are highly acceptable to the retailers as the risk is shared between the real estate owner and the retailer. Also, it makes the developer more accountable for generating footfalls and conversion rates in the mall. For the developer, it reduces the risk of high vacancy in the mall while counting on the probability of better revenues in future.”

Similarly, developers like the Entertainment World Developers Pvt (EWDPL) are in the process of constructing 20 such malls based on the revenue-share model across India. Gaurav Marya, the president of franchise solution company, Franchise India Holdings, says, “The revenue sharing model, where developers don’t charge rent and accommodate more local retailers into the malls, including local brands, can encourage a seamless model benefiting all the stakeholders.”

Retail consultant, Mr Wahid Ravji chips in: “The revenue-sharing model existed on the international retail scene, but has come very late to India. Most of the big deals finalised between retailers and mall developers are now on the revenue-sharing model. This model works well for both. Retailers now do not wish to shell out more than 4-5% of sales as rent, compared to the 10-11% they used to pay till a year ago.”

According to Mr Ravji, the model will ensure that the mall developer continues to remain “interested” in the property and there are enough retailers in the mall to attract significant footfalls.

Source : http://economictimes.indiatimes.com/News/News-By-Industry/Services/Retailing/Mall-owners-focus-on-space-fillers/articleshow/4823854.cms

Developers in India switch to providing budget housing

INDIA: Real estate developers in India think the worst may be over as property prices stabilise. Buyers are also returning, encouraged by the government’s decision to provide cheaper home loans.

India’s real estate sector is showing its first signs of stability after a free fall that started last year. A series of interest rate cuts on home loans and a revival in optimism have encouraged developers to start new projects.

Some are even putting a halt to discounts as demand picks up – property prices are going up by 10 to 15 per cent after falling nearly 30 per cent last year.

Naveen Rahja, managing director, Raheja Developers Engineering, said: “For some time, there will be cautious correction and there will be upward trend (of prices). But ultimately, the demand and supply are going to continue because India has globally the largest young workforce whose disposable income is increasing. They will all need houses and places to shop.”

Budget housing, which was rarely considered lucrative, is now the target for developers.

In its recent budget, the government revealed a housing scheme that aims to make India slum-free in five years. Following that, more than 65 developers announced new budget housing projects.

“Government planners were not given appropriate population density so the smaller houses were not facilitated and encouraged by the government. Now, developers have realised the hard way that there is actual demand existing in this segment so everyone is running after that,” said Rahja.

During the property boom of 2007, residential prices went up three-fold in major cities.

Developers have admitted that they made a mistake by focusing on the top 2 to 3 per cent of India’s population. Many are now switching from premium projects to cheaper ones.

But a complete rebound in home sales is still said to be months away as buyers wait for further price correction.

Source : http://www.channelnewsasia.com/stories/marketnews/view/444948/1/.html

Govt weighs 3-yr lock-in on FDI in real estate

NEW DELHI: The government is weighing the impact of a possible three-year ban on stake sale by foreign investors in real estate projects, a decision  that could affect future capital inflows into the sector.

Real estate developers had recently urged the government to reinterpret a provision in the foreign direct investment guidelines, so as to stop overseas investors from withdrawing their funds, beyond the minimum capital of $5 million, before three years of the initial investment.

This, they said, will help them tide over the current liquidity crisis. However, the commerce ministry is concerned that such a measure could be counter-productive. The government wants to keep the foreign investment policy as flexible as possible since the country now needs foreign capital to sustain the growth momentum. For any foreign investor, the exit strategy is as important as the entry strategy. If it is difficult to withdraw capital and redeploy it in another sector, then foreign investors could become reluctant to invest in real estate.

“We examined the proposal, but have not taken any decision and status quo continues. However, we cannot rule out any change in the future,” said an official, who asked not to be named, considering the sensitivity of the subject. The law says that in a cross-border JV in real estate, the foreign partner should bring in a minimum capital of $5 million. The funds would have to be brought in within six months of commencement of business.

It also says the “original investment” cannot be repatriated before a period of three years from the completion of “minimum capitalization.”

This has been interpreted in such a way that funds above the minimum capital requirement could be repatriated within the three-year lock in period. Real estate developers now want to restrict this as the sector got badly hit by the economic slowdown and drying up of sources of foreign capital. Besides, players in this sector have very few alternative sources of funding locally.

Source : http://economictimes.indiatimes.com/Markets/Real-Estate/Govt-weighs-3-yr-lock-in-on-FDI-in-real-estate/articleshow/4823787.cms

SBI’s 2-day car, home loan mela

DAVANAGERE: The State Bank of India (SBI), Davanagere main branch, along with its four other branches including Harihar, is holding a two-day `Home  and Car Loan Mela’ at Abhinava Renuka Mandir, P B Road, in Davanagere on July 25-26, between 10.30 am to 5.30 pm.

Addressing a press conference, chief manager of Davanagere branch H Ranganath said, SBI aims to make at least Rs 15 crore business in this mela. Their earlier mela in December had made Rs 8 crore business, he added. The loan will be sanctioned on the spot for eligible customers. Those who attend the mela should carry any photo identity card, residential address proof, bank account statement for 6 months, salary certificate (for house loan) and a quotation for car loan, Ranganath said.

However, one month time (till September 30) will be given to submit other documents, he added. The rate of interest is 8% for the first year, followed by 9% for the next two years and after that it will be floating according to the existing rates, he said. No processing fee will be charged in the mela, he said.

Branch managers T Sidda Naik, Ashok Patvarkher, along with deputy managers Devendra Bellary and K Umapathy were present.

Source : http://timesofindia.indiatimes.com/NEWS/City/Hubli/SBIs-2-day-car-home-loan-mela/articleshow/4813043.cms

Shreya Developwell pioneers ultramodern lifestyle in India

The name Shreya Developwell is synonymous with everything connected with the best in real estates. Having established its base in western Uttar Pradesh and the NCR, today, Shreya Developer is fast developing into a world-class real estate company. Shreya Developer offers properties that are built amidst natural surroundings where modernity has embraced Mother Nature in the most artistic way. Its projects like the Hindon Greens Shreya Developwell project that has been developed under the banner of Hindon Heights Shreya Developwell project offers living as well as working spaces for residential and commercial purposes.

Having been successful in transforming the lifestyle of people living in the cities, the Shreya group is looking forward to make a further impact on people’s lives. The company offers the best facilities available to its customers.

World-class projects of Shreya Developwell:

Facilities like sufficient open spaces along with abundant greenery are given topmost priority as the same is evident in the Hindon Heights project. You will find jogging tracks that are set amidst immaculately landscaped parks, water bodies, reflection pools and fountains etc. There is a special kid’s secured play zone located within the Hindon Greens project to facilitate children playing activities.

Through its Machaan and Rudra Greens project the company offers you an opportunity to experience farmhouse living. There are flower gardens dotted with lush green trees where one can enjoy the sound of birds. The location of these two projects is another plus point as these are on the NH-24 of NCR and as such is quite close to Delhi.

Shopper’s Pride is another great offering from the Shreya Developwell where more than 5 lakh people come to shop. Located on the main Shakti Chowk of central Bijnor, this three storied complex, offers facilities like multiplex shopping, a cinema, a basement, pubs, restaurant, food courts and event stage.

Strategic locations of Shreya Developwell Projects:

Almost all the projects of Shreya Developwell are well connected with the public transport system and with the construction of more new roads as well as the Metro Station it is expected that the overall development of this whole area would get an impetus. Moreover to provide direct connectivity and also to reduce commuting time between Indrapuram and Noida a number of link roads are being built. Most of the projects are on the verge of completion.

With the construction of a new Bridge on NH-58 Meerut Road the approach to the project area will become easier. Furthermore the Ghaziabad railway station is at a distance of 4.5 km and can be easily approached through public transport means

Source : http://www.bignews.biz/?id=807519&keys=Shreya-Developwell-Hindon-Greens

Value for money demanded of developers

In the last eight to 10 months, the real estate market has swung from being a builders’ industry to a customers’. “Today, a client is given more  value and has a plethora of options,” feels Dharmesh Jain, MD, Nirmal Lifestyle. Just before the slowdown, he explains, the real estate sector was flooded with projects. However, once the slowdown began, customers backed off citing financial security. As a result, a lot of inventory got accumulated and distress sales started.

Till a while back, certain developers were offering ‘free’ cars, along with properties priced above a particular slab. Such tempting offers have now been withdrawn from the market, with the first signs of economic
recovery.

Developers have now adapted their strategy, when it comes to offering incentives. For example, Pune-based Rohan Builders have an offer, wherein, they accept a down payment on any of their under-construction properties and offer to pay back the difference, should the market correct further. Another developer has offered to shoulder part of the interest rate on the buyer’s home loan for a year, but, with a three-year lock-in period clause. Such offers are essentially aimed at the fence-sitters.

Today’s buyer is extremely smart, asserts Pawan Datta, CMD of Lakshish. “Now, a customer asks for how much extra space a developer can provide, or how the payment schedule can be worked out, instead of any freebie,” explains Datta.

Value for money is what a customer today is scouting for. The customer is aware of the additional expenses he / she will be incurring. “In the commercial sector, too, things are changing, with clients asking for the ‘amenities’ that they shall get,” reveals Ramprasad Padhi of Pinnacle Realty.

“On the residential front, a few developers would build a one BHK flat of 500-550 sq ft and a two BHK flat of 700-750 sq ft and offer it at a lower rate. This essentially meant that a two BHK flat was being built in the size meant for a one BHK flat. In addition to this, there were charges made for clubs or parking, once the buyer has bought a place,” he says. So, what was supposed to be an ‘amenity’ is ultimately charged for, from the buyer.

Today’s buyer has become conscious of all these dubious tactics.

“The market correction was a necessity, as it was increasingly becoming disorganised. Fortunately, developers realised this and started giving value for money additions,” says Jain. Though the market is picking up, Datta feels that buyers will continue to dominate the market. This time around, the expectation is that healthy competition will take centre stage and the customer will walk away with his hands full.

Source  : http://economictimes.indiatimes.com/ET-Realty/Value-for-money-demanded-of-developers/articleshow/4810017.cms

Developers Start New Projects Leaving Old Projects Midway

Home sales in India may be on the rebound, with real estate firms launching new projects to tap a revival in housing demand, but Ajay Jain remains an angry customer of DLF Ltd, the country’s largest property developer by sales. Singapore-based Jain, 49, who signed up in August 2006 for a four-bedroom apartment in DLF’s Belaire project in Gurgaon, a satellite town south-east of New Delhi, is upset that he has paid the developer at least 85% of the cost of the flat—Rs2.4 crore—but only half the work has been completed so far at the site. At the time of booking, Jain said, he was told that the project would be completed in three years—by August 2009. After paying two-three instalments, DLF gave Jain the buyer agreement in February 2007, which said that possession would be given within three years of signing the agreement.

“Though DLF has collected the money for this project, they are not bothered about completing it and instead, they keep investing in other projects,” Jain said in a phone interview with . Belaire is likely to be delayed by 15 months, say real estate consultants. Buyers such as Jain—those who bore the brunt of the downturn along with developers—are in plenty. Since mid-2008, projects of almost every developer across cities have been stuck, delayed or shelved. Average delays have ranged from six months to a year. But what irks buyers even more now is that while several existing projects are stuck mid-way, developers have started launching new ones. These projects, mostly in the budget range, promise possession to buyers within two years, yet there are few signs that the pace of construction at existing, delayed projects will be accelerated.

DLF declined to comment as it was in the mandatory silent period ahead of its first quarter results, likely to be released later this month. Since mid-2008, projects of almost every developer across cities have been stuck, delayed or shelved. In November, the company’s chairman K.P. Singh had said its assets under construction spread over hotels, residential and commercial projects were delayed because of lower demand and an industrywide liquidity crisis. DLF’s Belaire and Park Place projects in Gurgaon are likely to be delayed by 15-18 months, say consultants. Belaire was to be ready by August and Park Place by October. A visit to the sites showed that both projects are far from completion. At both sites, only the structure of the towers are ready. The DLF website reflects as much: Structural work is in progress both at Park Place and Belaire, it says.

With these projects lagging, DLF launched 2.8 million sq. ft of residential projects in the first quarter of fiscal 2010, compared with 2.1 million sq. ft launched during the first quarter of fiscal 2009, according to a July report by Motilal Oswal Financial Services Ltd, a brokerage firm. This is true of other developers, too, who have launched new projects—mostly in the budget or affordable housing category—to generate cash flows even as their existing projects await completion. According to Motilal Oswal, real estate developers, including DLF, Unitech Ltd, Indiabulls Real Estate Ltd, Puravankara Projects Ltd and Housing Development and Infrastructure Ltd, have launched 36 million sq. ft of residential space in the quarter gone by, compared with 2.6 million sq. ft in the year-ago quarter, across cities such as Mumbai, New Delhi, and its suburbs, Bangalore, Chennai and Hyderabad. Of this, developers have already sold 44%, or 16 million sq. ft, of homes.

Unitech’s Fresco, Escape and Harmony projects, all within a 300-acre township, Nirvana Country in Gurgaon, look delayed as well. According to Unitech’s website, Escape and Harmony are to be delivered in the January-March quarter of 2010 and the first phase of Fresco is expected to be completed by the last quarter of 2009. But during a visit to the Escape construction site last week, site workers said construction had just restarted after a lull and it would take at least a year-and-a-half to finish the project. At Escape, only the structure is ready, but the landscaping within the project is still not done. Arvind Panwar, a buyer at the project, is visibly worried. He had bought a three-bedroom apartment in Escape for around Rs1 crore in July 2006. He had opted for a down payment plan, paying 95% of the cost of the flat at one time in return for a 10-11% discount on the base price of the flat.

Panwar, 35, who works with a tech firm in California, US, feels weighed down by loan instalments of around Rs70,000 every month. “I am worried because I am paying my (loan) EMIs regularly, but there is no clarity on when the possession of the apartment will be given,” he said. Panwar’s buyer agreement says the flat would be delivered within three years—a deadline that matures next month. “The penalty for delay that they have said they will pay (Rs5 per sq. ft per month) is nothing compared with the EMIs I am paying,” he said. “I have been getting lots of emails from Unitech and brokers on the new projects they have launched. I get frustrated when I see those mails.” Unitech had not responded to’s queries on email and text messages until late Wednesday. In Mumbai, with five projects still at various stages of construction and far from completion, local realty firm Neptune Developers Pvt. Ltd has launched two more this year.

A 125-acre affordable housing project was launched in March near Kalyan, about 50km north of south Mumbai, and an upmarket, 30-storey twin tower project in Bhandup, a northern suburb of the port city, in April. The developer is clear about the urgency to do so. “One needs to run the show and for that, one needs to keep adding cautiously to one’s portfolio even when times are not that good. We are only launching projects that will sell and ensure cash flow,” said Nayan Bheda, managing director of Neptune. The firm has sold 2,000 of 2,100 apartments in its budget housing project at Kalyan, said Bheda, and expects the development at Bhandup, priced at Rs5,000 a sq. ft, to sell out,too. The quantum of sales at the Kalyan project could not be independently verified by . A realty consultant seconds Bheda’s candidness. “Some developers are launching new projects in a particular price category to ensure cash flow to fund construction of its delayed, existing projects even at a lower profit margin,” said Ashutosh Limaye, associate director (strategic consulting) at Jones Lang LaSalle Meghraj, a property advisory.

Construction at Neptune’s projects running behind schedule has picked up after slowing down, Bheda said, without giving any more details. It doesn’t help, as a spokesman for Parsvnath Developers Ltd said, that realty firms see further liquidity pressure as buyers at older projects default or delay their instalments due to the developer. Bangalore developer Brigade Enterprises Ltd has nearly 20 projects at different stages of construction, each of which is lagging behind by at least six months from completion dates expected earlier, M.R. Jaishankar, chairman and managing director of the company, said at a press meet earlier this month. The Brigade Gateway-branded luxury apartments project in north Bangalore, for instance, is at least 10 months behind schedule and several blog sites on the Internet are flooded with complaints on the delay from customers there. The company has plans to enter the budget housing segment.

Source : http://www.indianrealtynews.com/real-estate-developers/developers-start-new-projects-leaving-old-projects-midway.html

Siemens puts on Block 13 Residential Properties in Mumbai

German power equipment and transmission major Siemens has put 13 of its residential properties in Mumbai on the block. The properties, part of the company’s non-core assets, are spread across a total area of over 15,000 sq ft with an average price of around Rs 30,000 a sq ft. The properties are located in prime areas such as Altamount Road, Nepean Sea Road, Bandra, Dadar and Chembur. Siemens wants to take advantage of stability in realty prices. The company plans to raise around Rs 45 crore, with a minimum selling price of an apartment starting from at least Rs 1 crore with an average price of around Rs 3 crore. A Siemens spokesperson said: “As part of an ongoing strategy, Siemens regularly reviews its assets and (since) these apartments have not been occupied for quite some time, the company is planning to sell them. The properties will be sold through an auction route.”

The company has appointed Jones Lang LaSalle Meghraj (JLLM) as the property consultant for the deal. The company is also believed to be planning to put more such properties on the block soon. These residential properties would be put on block only after selling the current lot of 13 apartments. Anuj Puri, chairman, JLLM, said: “These are premium properties. Besides Siemens, there are many others also exploring the option of selling their non-core assets.” Earlier, Hindustan Uniliver had also sold some of its residential properties.

Even banks such as Standard Chartered and HSBC are planning to put their non-core assets on the block. The selling of assets is not the result of a distress sale, but to unlock the valuation of the existing assets that are lying underutilised. “Companies may either sell the property or rent them out since that is also an effective option,” said an industry tracker. The recent stability in the property market has been a significant reason for companies to sell some of their real estate assets.

Soruce : http://www.indianrealtynews.com/real-estate-india/mumbai/siemens-puts-on-block-13-residential-properties-in-mumbai.html

NRIs Showing Interest in Real Estate India

“The right sized product, at the right price will surely be a sell-out,” says Sukhraj Nahar, chairman of the Nahar Group. At the MCHI’s India Realty Expo, 2009, in Dubai, the Nahar Group offered NRIs homes in a new segment – a two BHK flat that cost INR 55 lakh onwards, which received good response. “The NRI customer needs the security of being able to walk up to the chairman of the company and ask just about any question related to the project,” says Nahar, on the product’s success. MCHI CEO, Zubin Mehta, substantiates the return of NRIs’ interest in Indian realty with figures from the exhibition: a turnout of 1,096 NRI families; 106 flats worth Rs 65.33 crore ($13 million) booked and around 86 flats worth Rs 80.18 crore ($16 million) in the pipeline; site visits fixed for July-August, when the NRIs come to India on their annual vacation.

“We tweaked the format and offered products that were nearing completion, with a budget limit of INR 75 lakh, mostly in the suburban areas and these were perceived by the NRIs as having scope for further value appreciation,” he says. “The softening of real estate prices and home loan interest rates in India, were the key factors for attracting a large number of NRIs,” says Mehta. HDFC’s branch manager (Dubai), Vikram Goel, reveals that innovative schemes, like the ‘20:80′ home finance scheme offered by HDFC and the Nahar Group, play a big part when it comes to garnering bookings. “The average NRI is worried about the economic challenges, across the next year or so. Hence, they find schemes like these, which provide for 20 per cent payment at the time of booking and the remaining 80 per cent at possession, attractive,” he added.

“NRIs are facing a unique situation,” says JS Augustine of Everest Developers. “There is a certain amount of job uncertainty, due to the global economic situation. At the same time, Indian real estate offers lower entry-level prices, with potential for good returns on investment (ROI). So, NRIs who are sure of their job for the next few years, are buying Indian real estate. The INR/USD rate differential also makes it more attractive for NRIs to buy now,” he says, adding that it is necessary for Indian developers to meet NRIs more often, to create confidence and give them more comfort. What works for the NRI buyer? It has to be innovation and a different product, from what has been on offer so far and at a price level that seems attractive to the NRI buyer who has the global property market to choose from, concludes Rajnish Oswal, MD of Dubai-based real estate firm, Home Back Home.

Source : http://www.indianrealtynews.com/real-estate-india/nris-showing-interest-in-real-estate-india.html

Govt May Ease FDI to Aid Realty

The government is proposing easier rules to allow overseas investors to be a part of smaller real estate projects and lower capitalisation norms, which involve facilities related to hospitality or tourism. The Department Of Industrial Policy & Promotion (DIPP), which handles the FDI policy, in a note drafted for the Cabinet Committee on Economic Affairs (CCEA), has said that FDI should be allowed to flow into realty projects even if the area covered is only 10 acres. Currently, FDI is allowed in realty projects only if the minimum area covered is 25 acres (or 10 hectares).

Source : indianrealtynews.com

SBI to organize home loan fair

The country’s largest lender, State Bank of India organized ‘SBI Home Fair 2009′ between July 17 and 19 at Mayor Ramanathan Chettiar Centre.

The lender will offer borrowers various concessions on home loans like add-on insurance cover, concessional lending rates, wavier of processing fees; etc. At the same time, the bank will also issue ‘in-principle sanction letters’ to prospective borrowers.

Presently, SBI has a home loan portfolio of at least Rs56,000 crore. Nearly 75 percent of its loan book comprises of loans of up to Rs 20 lakh.

Recently, the bank launched special home loan scheme under which it offered home loan at competitive rate of 8 percent.

During last fiscal the home loan portfolio of the bank grew by 21 percent.

Expecting an increase in demand, the bank has raised its overall target for home loans segment to Rs 30,000 crore, which is a 30 percent increase for current financial year.

Currently, the player has 18 to 20 percent market share in house loans.

Source : http://www.rupeetimes.com/news/home_loans/sbi_to_organize_home_loan_fair_2666.html

Mumbai tops in property investment in India

IndiaProperty.com, India’s No.1 property portal from Consim Info (formerly known as BharatMatrimony Group) today released their online survey report, which showcases the ‘Trend in residential space across top cities in the current scenario’. The survey received over 3,000 respondents and most of them showed interested in buying residential property now.

IndiaProperty.com, India’s No.1 property portal from Consim Info (formerly known as BharatMatrimony Group) today released their online survey report, which showcases the ‘Trend in residential space across top cities in the current scenario’. The survey received over 3,000 respondents and most of them showed interested in buying residential property now.

The analysis was to study customer views on the current market condition & if they are keen on buying residential property. Respondents from Metros and other cities, which include Pune, Thane, Coimbatore, Ahmedabad, Vadodara and many more inquired details about purchasing a property. More over, people aspired to services like water, security, connectivity by public transport, parking space over other lifestyle features that include gym, indoor game facilities, and swimming pool.

Commenting on the survey findings, Murugavel Janakiraman Founder & CEO Consim Info remarked, “Market sentiments are reviving and people are willing to invest. This could be owing to a stable government and the price correction factor. Based on our survey, more than 60% of the customers are looking at buying residential property in the next 6 months. They also are expecting a lowering of interest rates on home loans”.

Some key findings derived from the survey are:

· Mumbai is still the most preferred destination to invest in property, while Chennai takes the first place for property investments in South, over Bangalore.

· 60 % of the respondents feel that the interest rates for home loan will fall further in the coming months.

· Apart from metros, Tier 2 cities like Patna, Nasik, Trichy & Madurai, seem to be on the rise for property investments.

· 40 % of the respondents show interest on property with a square feet ranging from 500 to 1000 sq ft, which is inclined towards ‘Affordable Homes’.

· 50 % are looking for properties for their personal use rather than just buying property for investment.

IndiaProperty.com constantly studies its customer’s needs on the real estate market through regular surveys, property fairs and events.

Source : http://www.indiaprwire.com/pressrelease/real-estate/2009072029720.htm

Omaxe launches Omaxe New Heights in Sector 78, Faridabad

Omaxe Ltd, the leading real estate developer today announced the launch of comfortable, secure, friendly & affordable homes Omaxe New Heights in Sec 78, Faridabad. Start5ing from Rs 16.18 lac, Omaxe New Heights is aimed at catering to the burgeoning demand in the affordable housing segment. Omaxe New Heights, a multi storied state-of-the-art Group Hosing Complex with a project value of Rs 70 crore (approx.) is proposed to be completed within 30 days from the commencement of construction.

Omaxe New Heights comprises of 2BHK, 2BHK + Study & 3BHK + Study in an area ranging from 850 sq.ft. to 1100 sq.ft. & 1350 sq.ft. respectively. These apartments are priced strategically and are starting from Rs 16.18 lac to Rs 25.23 Lac. Omaxe will be offering Free Club membership, Power Back-up and an inaugural discount to first few buyers.

Omaxe New Heights will have the facilities like Club with Gymnasium & Swimming Pool etc. 24X7 Gated security, power backup, optional car parking space, landscaped greens offering comfortable and secure ambience at an affordable prices. All the apartments will come fitted with vitrified tiles in all the bedrooms, electrical and other fittings.

Ideally located in the fast developing Sector 78 of Faridabad, Omaxe New Heights is at an extra advantageous position as Faridabad is central to the cities of Gurgaon, Noida and Delhi. This proposed Metro rail will provide faster & smoother connection to the capital city & other satellite towns around Delhi.

The elevated expressway on Badarpur border and proposed FNG expressway connecting Faridabad to Noida & Ghaziabad will surely be a boon to the Faridabad’s connectivity and will have and edge about the other NCR towns. Thus along with the better connectivity and infrastructure Faridabad will be a more decongested city with less dependence on private transport and easy approachability to neighboring cities & towns.

Source  : http://www.equitybulls.com/admin/news2006/news_det.asp?id=57194

SBI disburses home loans via special channels

Country’ largest lender, State Bank of India has been disbursing home loans via non-conventional channels.

Recently, the bank organized a three days ‘SBI Home Fair 2009′ at Mayor Ramanathan Chettiar Centre in Chennai.

The bank has also entered into alliance with 12 builders to promote the home loan segment.

On the occasion, J. Chandrasekaran, Chief General Manager, State Bank of India, Chennai Circle, said that the bank is planning to create special processing channels to extend speedy service to home loan customers.

Explaining the home loan market is conducive, he said, “As builders say the prices have softened, the home loan disbursement is expected to improve.”

The bank aimed to promote its recent home loan scheme – SBI Easy Home Loan and SBI Advantage Home Loan at the exhibition.

At the exhibition, the bank also offered spot in-principle sanction letters to prospective borrowers.

The growth in home loan growth was than more than Rs. 1,000 crore in 2008-09 for the Chennai circle.

The bank has extended 1,800 home loans, amounting Rs. 240 crore during the first quarter of this fiscal in Chennai region, of which nearly 90 percent were less than Rs.30 lakh.

Chandrasekaran stated that the applicable interest rate on home loans approved at the fair would is set to be 0.25 percent less than the normal rate from the fourth year of repayment. He also added that there would be no processing fees on loans.

As many as twenty-four builders and property developers participated in the fair.

Source : http://www.rupeetimes.com/news/home_loans/sbi_disburses_home_loans_via_special_channels_2674.html

The Pune Dream Home Put on Hold

At a property show in Pune last month, a throng of house hunters jostled to draw the attention of sales people.

Anjali Cordeiro
I was there battling the crowd – part house hunter and part curious journalist – and this wasn’t what I had geared myself for. On vacation from my job in the U.S., I had envisioned a more subdued affair and few potential buyers. This city, a three hour drive from Mumbai, was badly hit as real estate slumped across India last year.

I have always hoped to buy a house in Pune, the city where I grew up and where my parents still live. The real estate show might offer up some bargains, I thought, perhaps an apartment that might help pay for itself when rented out. Or there might be an interesting story to tell.

Bargains, I soon found, were in short supply. Home prices fell sharply in the first quarter across India but in many parts of the country like Pune they are still much higher than just a few years ago. And although real estate transactions screeched to a halt earlier this year, the housing sector is showing signs of thawing. So, sales have picked up a notch and real estate developers seem to be offering fewer price discounts.

“Pune is a good example of how prices surged in the boom and the role overseas Indians played.”
India’s stock market surged after the May election that brought an unexpectedly conclusive victory for the Congress party. Some of that enthusiasm, coupled with a thaw in global credit markets, has made it way to the housing market. As the global economy improves, particularly in the U.S., the nonresident Indians who invested heavily in real estate during the boom years may return – and perhaps once again help push prices upward.

“The NRI market is not a small market. They’ll be watching this as well,” says the manager of a global hedge fund that invests in India. “My suspicion is investment buyers could be coming in large numbers because they sense there is going to be a turn in the [real estate] market. They are the ones that can move quickly and it could move prices up.”

Still, it may take a while for these overseas Indians to fully jump into the fray again. While analysts acknowledge there has been some improvement in the Indian housing market, they aren’t calling a bottom and they aren’t discounting the possibility of a further drop in prices.

After one sales person at the Pune show threw out a price of 1 crore rupees (about $205,200) for a three-bedroom apartment in a high-end building complex, I knew I wouldn’t be buying soon. That was much further than my wallet could stretch, particularly for a house I wouldn’t be living in anytime soon.

Some pointers on dipping into India’s real estate market:
Real estate in India isn’t always organized. It can help to look for well known developers that have a history of completing their transactions and delivering on projects. Tap outside lawyers to examine contracts.Be prepared for delays. Developers sometimes complete projects at a later date than promised.Real estate transactions in India can sometimes involve so-called “black money” large payments made in cash, that aren’t disclosed for tax reasons. But these payments can be hard to trace, and to prove. Paying by checks and through banks is simpler – besides being legal.When investing from abroad, don’t forget exchange rates. Pick a time when the currency exchange is in your favor.Large banks like HDFC and State Bank of India offer housing loans for non resident Indians, although the loan doesn’t exceed 85% of the cost of the home. Specific numbers on real estate trends in India for the last two months are hard to come by. Overall “you have seen some revival of demand from genuine buyers,” says Sudhir Nair, head of CRISIL Research. “There are some transactions starting to take place.” But Mr. Nair says prices overshot so heavily during the boom that they still need to fall another 10% or so to push volumes of real estate transactions to healthy levels, and that could take till next year. “For investors or NRIs to come back, they have to see a scenario of prices at least staying stable or increasing,” he says. “That won’t happen till 2010.”

Pune is a good example of how prices surged in the boom and the role overseas Indians played. According to data from CRISIL, housing prices in Pune jumped about 96% from 2005 to mid-2008. They dropped 26% between July 2008 and March this year, but are above 2005 levels in most of the city despite that decline.

Over the years, Pune has morphed into a busy hub of software companies and call centers. It has also drawn the real estate investment dollars of overseas Indians who couldn’t afford top cities like Mumbai. Prices for the two and three bedroom apartments I saw advertised at the property show last month seemed to range from 3 million rupees to 10 million rupees. My parents bought their two bedroom apartment in this city about 25 years ago for 75,000.

Recent real estate trends in Pune and across India have similarities to the U.S. Data from the U.S. show an improvement in prices and sales but many experts are unsure that the rout in the American housing market is completely done.

Sanjay Verma, executive managing director for South Asia at Cushman & Wakefield says in some individual markets like South Mumbai, where there is a limited supply of residential real estate, prices may have stopped falling. But liquidity may remain a concern for Indian developers, he says, and that may mean it is still early days to be calling for a full revival.

And so for me, the dream house in Pune is on hold – for now.

—Anjali Cordeiro is a reporter for Dow Jones Newswires based in New York

Source : http://online.wsj.com/article/SB124814704494767611.html?mod=googlenews_wsj

Five star eco-housing rating for Crossover County

‘Crossover County’, a flagship project of city- based Darode Jog Properties on Sinhagad Road has received five star eco-housing rating from the Science and Technology Park, Pune. Municipal Commissioner Mahesh Zagade handed over the certificate to Sudhir Darode and Anand Jog, directors of the Darode Jog Properties at a recently held function at Pune Municipal Corporation (PMC). Director general of Science and Technology Park Rajendra Jagdale and city engineer Prashant Waghmare were also present. PMC had introduced the eco-housing certification program last year to promote the adoption of environment-friendly practices, use of energy-efficient products and sustainable techniques by the builders and developers. PMC is the first municipal corporation in India to initiate such environment-related program for residential projects. The criteria for eco– housing has been developed by Science and Technology Park, a Govt. of India Institution, jointly with the International Institute for Energy Conservation and The Energy Resource Institute of New Delhi with technical assistance form the United States Agency for International Development.

The criteria to award rating consist of various measures like site planning, environment architecture, efficient building materials, energy efficient lighting, solar water heaters, water conservation, segregation and disposal of waste and any other innovative technologies. Each initiative has some points, which are considered for awarding the rating. Out of the total 1,000 points a minimum of 500 points are required to qualify for eco-housing certification with one star. Five stars is the top-most rating, where a project earns more than 800 points.

Source : http://www.indianexpress.com/news/Five-star-eco-housing-rating-for-Crossover-County/491575

Go and grab your dream home

A house for Mr Surinder Sharma  will now cost less with markets correcting approximately 10-30 per cent in Delhi NCR, Mumbai, Bangalore and Chennai. The next three months, say real estate watchers, are the best time to close a deal.

Where property buying goes, the buzz is that it’s no longer the worst of times. For instance, real estate worth Rs 50 lakh six months ago, will now cost 40 lakh. And with interest rates down to 8 per cent from 13-14 per cent, what the consumer shells out effectively is Rs 32 lakh. In other words, this is the best time to buy.

Indirapuram based finance  professional  Rakesh Mishra  started his search for a house four months ago.  He zeroed in on a project which was launched last month. It’s at a prime location, and comes for a good price. “With the Navratra discount, the house cost me Rs 26 lakh,” he says.

Deals like this are bringing realty back to life again. “This is the right time to do your research and consider buying a  house at the right and real price. Developers are more than willing to give in to the demands of a serious buyer,” Dr. Devender Gupta CMD, Century 21 India. Many who aren’t buying are window shopping. Average buyer interest over the last two months has risen to 30-40 per cent. Experts anticipate an upward trend in the market between May and July. With prices rationalising in many pockets across the country, the dream house is looking affordable for a significant corpus of aspiring buyers. Those who have identified a suitable property and have the financial means to take the plunge should do so now. A deferred decision, say experts, might mean passing over the best bargains.

Developers are wooing customers like never before. “The buyers, chiefly end users are back into the market. There are realistic bookings happening today,” said Alimuddin Rafi Ahmad, managing director of prestigious ILD group. PK Jain,Executive Vice President,PNB housing finance Ltd agrees. “Developers this season are seeing a lot of inquiries, the phones have started to ring again and that is very encouraging. With interest rates dropping enough to take a home loan and prices correcting by almost 10-30 per cent, it’s a good time to get back to the market.”

Even top developers DLF and Unitech who focus on luxury apartments are now coming up with affordable housing projects. Rajeev Rai,vice president, Assotech group, says that the prices have corrected by almost 30 per cent. Developers are tailoring products according to customer needs across all segments, instead of the earlier stress on high-end housing.

Moreover, as Sunil Jindal,director, SVP group points out, “Besides the interest rates and prices moving downwards, consumer fatigue has also set in. How long will a buyer wait? He may as well come forward and buy.” The market is seeing a new movement because of the pent-up demand from end users —  people who typically plan to buy a property for their children and see a future in real estate, says an executive of Cushman & Wakefield. Those with a budget of Rs 20-30 lakh should seal the deal as any further correction is unlikely, points out Jindal.

According to Chaitanya Manohar, director & COO, L.J. Hooker India, Bangalore, “We have seen increased level of activity (enquiries) across Bangalore specifically in projects that are close to completion (possession in 6-8 months). There has been tremendous interest especially in the Rs 20-45 lakh range from first-time homebuyers.” Buyers today have plenty of choice; there are properties under construction for which possession is due in the next three to nine months. “He can expect reasonable returns as the market would be up and moving when he finally gets his house,” says Anil Makhijani of Mak Realtors of South Delhi.

So does that make it a bad time to sell? Well, perhaps. Rizwan, a senior manager with a job portal, recently sold his apartment in Faridabad for the same price at which he had bought it. “I had to dispose of the Faridabad house to take possession of my house in Indirapuram. The house cost me Rs 1,690 per sq ft two years ago. I did incur a loss in terms of the EMI and the foreclosure charges I had to pay the bank,” he said.The market is not favouring the seller, but he can use it to his advantage. He may be able to sell his house to move to a better location or upgrade from a two-bedroom house to a three-bedroom at the same price. A person who bought property more than 3-4 years ago may make a profit if he sells now

http://www.mynews.in/fullstory.aspx?storyid=22058

Budget Homes from Disha Direct receive an impressive response

Disha Direct, a name to reckon with in Real Estate Marketing has kept pace with the ever evolving Indian real estate market. A research oriented organisation and a reliable brand, Disha Direct has taken keen interest in launching projects which match the vision of potential home buyers.

FOR IMMEDIATE RELEASE / PRURGENT

Disha Direct, a name to reckon with in Real Estate Marketing has kept pace with the ever evolving Indian real estate market. A research oriented organisation and a reliable brand, Disha Direct has taken keen interest in launching projects which match the vision of potential home buyers. Therefore based on a research which shows a predicted crunch of 2.65 crore home units by 2011, Disha Direct launched two projects comprising budget homes at two growth oriented destinations – Nagpur and Murbad. Both projects, Tech Town at Butiburi near Nagpur and Tarangan at Murbad near Mumbai are now in high demand as they offer a value for money product, which balances budget and quality.

Located at Nagpur on the Wardha Road, Tech Town is a residential project comprising 2 BHK homes priced at just Rs.7.47 Lacs. Every home at this project is equipped with decent amenities. Despite being a low cost project, the exteriors of Tech Town are thoughtfully planned. Ample parking space has been allocated for vehicles of residents. Internal roads have been kept wider for easy access. Aesthetic landscaping will be done to ensure fresh air and relaxation for residents. The major plus point of Tech Town is its value for money proposition – Good quality at an economical price with bright prospects for future appreciation considering its location. Therefore home buyers with a tight budget have accepted it wilfully. Secondly, the convenient option of making payments through EMIs against bank loans has made Tech Town, the most sought after project for middle income groups. So far 80 units have been sold out, which signifies the remarkable response Tech Town has been enjoying ever since it was launched.

The second project is Tarangan, a residential project of 1 BHK (490 sq.ft.) and 2 BHK (600 sq.ft.) budget homes at Murbad. The apartments being priced in a range between Rs. 5.88 Lacs and Rs. 7.20 Lacs, has made the project an ideal choice for property investors and home buyers with modest budgets. Within two days of its launch, the response has been immensely positive with 25 units booked instantly and the shops sold out, all at once. Considering the excellent growth potential of Murbad, Tarangan has attracted the attention of the end users and investors alike. Tarangan too comes with security, special space for a garden and ample parking space. Equipped with decent internal amenities, homes at Tarangan ensure true value to the money spent.

Sharing his thoughts on the success of both projects, Santosh Naik, MD & CEO of Disha Direct says, “Both projects belong to the affordable housing genre and the success that has come our way once again signifies the growing demand for such homes. Being a customer centric organisation, we have always added priority to their demands. To ensure complete value for the money they spend, we have tried our best to make them available the best of amenities too in these low cost homes. We are also planning to launch some new projects in the same genre at destinations which are growth oriented. And we will be presenting homes that cost low but promise great value in future.”

About Disha Direct:
Disha Direct is a leading real estate marketing organisation. 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 200 professionals, 7 brands, 10 offices, International Offices at Dubai & New York, 1 Real Estate Expert Advisory, 12 completed projects, 35 ongoing projects and 4000 happy customers; Disha Direct is not just a conglomerate but a philosophy etched in the minds of many. For more details, log on to www.dishadirect.in or call on: +91-22-25817900

Source : http://www.prurgent.com/2009-07-20/pressrelease46537.htm

Govt in India wants to attract more foreign real estate investors

The government in India wants to make it easier for foreign property investors and in particular for them to put their money into projects that relate to the hospitality sector and tourism.

It is looking at changing the rules to allow overseas investors to be part of smaller real estate projects. At present they are limited to investing in projects that cover a minimum of 25 acres.

It is hoped it will encourage foreign investment in property developments in places like Mumbia, Delhi, Bangalore, Chennai and Hyderbad where it is generally not possible to find 25 acres of land for development.

The Department of Industrial Policy & Promotion (DIPP), which sets out the guidelines for direct foreign is keen on attracting more investors. It is proposing to waive minimum capitalisation for development projects which have hospitality and tourism facilities such as hotels, restaurants or entertainment facilities for visitors.

The waiver would also be available if 50% of the built-up area in a project is devoted to hotel and tourism businesses, such as food courts, resorts and restaurants and if 20% of the total built-up area is used for hotel rooms.

The property industry welcomed the initiative and said they are long overdue. These steps, when implemented, will provide relief to high-value projects in cities and projects being developed for the tourism sector.

The move comes as a relief at a time when the real estate industry is struggling with high levels of debts, strict lending conditions and a general slowdown in business.

Meanwhile there are signs that the hard hit commercial property sector is on the cusp of recovery. Values have fallen by up to 30% as many corporates have downsized and are not enthusiastic about paying high rents.

But according to Anurag Bhatnagar, associate director at DTZ, although those with expansion plans are still staying on the sidelines they are making future plans and when they start spending recovery will follow.

Source : http://www.propertywire.com/news/asia/india-real-estate-investors-200907193342.html

Bennett Coleman picks stake in Lavasa Corporation

Online PR News – 18-July-2009 – Bennett, Coleman & Co. Ltd. (BCCL) has acquired a stake in Lavasa Corporation Ltd., a subsidiary of Hindustan Construction Company Real Estate Ltd, India’s leading construction and infrastructure company.

The investment is the result of the efforts by Times Private Treaties, the innovative venture from the Bennett, Coleman & Co. Ltd. (BCCL) Group, which already has investments in more than 200 companies across various sectors. The Times Private Treaties business model eases the cash flow of a company so that resources set aside for brand development activities can be used toward business growth & expansion.

Lavasa is a complete new hill city being built across 12,500 acres, nestled amidst the majesty of the Sahyadri Mountains. Some distance from Mumbai and Pune, this new city embodies the spirit of human nature to aspire to a holistic life. The town is eco-friendly, based on the principles of New Urbanism and set amidst 7 hills and 60 kms of lake front.

Planned for a population of only 1.5 lakh permanent residents with an estimated tourist inflow of 20 lakh per annum, Lavasa is developing fast, with the first town slated to be ready in 2010.

The residents of Lavasa can access state-of-the-art modern amenities while enjoying the tranquility of wide-open expanses and a scenic natural waterfront.

A self-contained world, Lavasa offers its residents and visitors a spectacular array of business, educational, recreational and rejuvenation opportunities.

“Lavasa is in line with the concept of large scale urban development, specifically catering to special needs of the new economy. Fully integrated township complexes offer a comprehensive modern city infrastructure, encompassing basic amenities, social infrastructure, educational institutions, health care facilities, hospitality and shopping & entertainment options. These townships also set benchmarks in ecological urbanism. In addition, we see significant contribution to the economy and employment arising from such largescale projects. While Times Private Treaties has consistently made risk sharing investments in different formats of enterprise development, Lavasa will be an important addition to the portfolio, given the size and scale of the project.” said Karthik Reddy, Vice President, Times Private Treaties. The Times Private Treaties business model is designed to share risk, accelerate growth and create value for the brand in the long term.

The Lavasa township is being designed and constructed by architects and contractors of international standing and supported by various experts in the fields of planning, construction, transportation, utility, environment and other infrastructure of the township.

The master plan of Lavasa (approx 12,500 acres) is developed by internationally renowned design consultant HOK, USA and is a recipient of many international awards. It is based on the principles of new urbanism that brings together all the components essential to daily life in a more organized manner thus creating spaces within walking distance from each other. It has many firsts to its credit – technology leadership, e governance, the first Indian city developed using Geographical Information System (GIS) , use of bio-mimicry as a science for planning and using innovative techniques like hydro seeding in environment management.

Lavasa aims to provide a perfect work – life balance with a unique combination of technology and infrastructure advancements. It also offers a diversity of work possibilities designed to appeal to the IT and biotech industry, KPOs and R&D companies, as well as the world of art, fashion and animation.

A complement of global leaders in Hospitality (Accor, ITC), Health and Wellness (Apollo Hospitals) and Education (Said Business School, Oxford University, Ecole Hoteliere de Lausanne – Switzerland, GDST – UK, International Business Relations (IBR) – Germany, NSHM Knowledge Park – Kolkatta, Symbiosis, Christ University – Bangalore, Christel House) have already been tied up. SpaceWorld, a 65-acre edutainment park powered by technology from USSRC and NASA, will offer a space-like experience to visitors, and will be operational by the 2010.

Lavasa is planned for a permanent population of 2 lakh residents and a tourist inflow envisaged at 20 lakh per annum. The first town Dasve is slated to be ready by 2010. Lavasa is a prime offering from HCC, with a level of city infrastructure yet to be experienced in India, thus setting a new benchmark in planning, construction and service delivery.

Source : http://www.onlineprnews.com/news/3356-1247911850-bennett-coleman-picks-stake-in-lavasa-corporation.html

Premium residential properties again on buyers’ list

There is good news — and it’s coming from above. Across the country, cities are reporting a revival of sales interest in premium residential Land as investment

properties. In many cases, this is happening, even though the values have remained mostly unchanged. A few cities, however, have attributed the revival to a marginal fall in prices.

In the premium segment, most of the interest revolves around main city areas and resale properties. “Yes there is a movement in the premium segment but it still stands lower than in the Rs 30-40 lakh segment. Part of the demand for premium buys is coming from the secondary market and partly from the under-construction properties,” says Anshuman Magazine, CMD of global real estate consultancy CB Richard Ellis.

In fact, this time round it is not speculators but end-users who are bargain hunting. An example is the COO of a leading multinational company in Delhi who had been looking for her dream home for three years within a budget of Rs 1.5 cr. But when she found the 3,000 sq ft apartment within her budget, she did not think twice about putting her money in.

Another buyer bought a property for Rs 18 cr in the upmarket Vasant Vihar area of the Capital for use by his family. This trend has kept realtor Ashok Kumar on his toes as he has done brisk sales in the Rs 3 crore per floor in premium South Delhi areas as well as the Rs 6 crore to Rs 30 crore sales in premium residential areas such as Vasant Vihar, Panchsheel Park, Greater Kailash and Defence Colony areas. In the suburban areas of Gurgaon, per sq ft rates of premium property is between Rs 3,000 and Rs 3,500 on Sohna Road to Rs 15,000 on the Golf Course Road.

The asking rates were about 10-15% higher during the boom. Realtor Ravi Pundir says in Noida, Sectors 93, 50 and 62 have apartments of 1000-9000 sq ft each by developers such as Jaypee, Unitech, Amrapali and Mahagun at Rs 4,400-8,000/ sq ft.

Harinder Dhillon, GM, marketing, Raheja Developers, also agrees that demand in this segment has picked up. “Our Atlantis project in Gurgaon is in the range of Rs 1.5-1.6 cr, which has been seeing a good response. The fact is that end-users have realised that the market has already bottomed out and the price movement from here will only be upwards.”

Brix Research, the research arm of magicbricks.com, has been conducting a series of multi-city surveys to assess the demand of premium housing in the country since December 2008. Multiple sources, including developers, realtors and consumers, have been contacted on a sustained basis to arrive at these conclusions. The survey has found that the premium luxury apartments and bungalow market of Rs 1.5 crore to Rs 3.5 crore and above, has witnessed a revival across India since May 2009.

In Mumbai sale of premium property in areas such as Cuffe Parade, Carter Road, Andheri East, Juhu, Film City Road, Bandra, Pali Hills, Four Bungalows and Juhu Road Versova side did take place, though at 10% rate of transactions at values upwards of Rs 25-30 crore each. Row houses in Bandra and Carter Road areas sold during the reported slump at Rs 2- 2.5 crore each and values are unchanged. A few villa projects in the Royal Challenge area by developers such as Oberois and Rahejas are finding takers at Rs 8-9 crore each. Less premium developers are finding buyers at Rs 6-7 crore each, according to Chandan Chowdhary, a leading city realtor.

In Bangalore, the slump in the market continues. Premium localities along the Ring Road such as Cox Town, Indirapuram and Koramangala, have witnessed sale at 10% lower prices. Transactions have risen from the near zero to about 30-40% of peak numbers at Rs 50 lakh to Rs 1.3 crore, according to city-based realtor Nadim Munjawar. However, in peripheral premium localities such as Whitefield, Electronic City and Sarjapur Road, prices have dipped by almost 30-40%.

In Chennai, in premium areas of Aryapuram, Besant Bagar, East Coast Road, Perungudi, Adyar, T Nagar, Ashok Nagar, KK Nagar and Boat Club prices Land as investment

range from Rs 50-60 lakh to Rs 5 crore and demand has dropped 95%. With values down by 10-15%, transactions have started picking up in luxury apartments, bungalows and individual houses. Local realtor Madhusudanan expects the situation to continue till 2010-11.
In Ahmedabad, luxury apartments of around 2,000 sq ft come at Rs 50 lakh to Rs 2 crore. The rate of transactions are rising. Premium localities include Prahlad Nagar, Science City Road, Vastrapur, Satellite, Mani Nagar, Shahi Bagh, in and around Lajpat Club and upcoming localities such as Sanathan. Major developers in this segment include Pacifica Builders, Goyal, Savvi Infrastructure, Bakeri and Saffal groups. Realtor Anand Varani maintains that premium buyers are not impacted by falling interest rates or dropping property values. Only those scouting in the main city areas are looking for bargains.

In Kolkata, premium properties that have been launched 3-4 months ago, are selling since May-June 2009. Transactions are at 75% of peak numbers, says realtor Sandeep Sen. Transactions in the Rs 70 lakh to Rs 3 crore for 2,000-2,500 sq ft, 3 BHK apartments are taking place. Premium projects are coming up in Ballyganj Circular Road, Guru Sadi Road and Maysir Road. The shine is back in the premium real estate market. So this may be just the right time for you to scout for a good deal!

Source : http://economictimes.indiatimes.com/Features/The-Sunday-ET/Property/Premium-residential-properties-again-on-buyers-list/articleshow/4794274.cms?curpg=2

Surge in demand for office space good for economy

The real estate market has shown a clear sign of revival following the formation of Congress-led UPA government with a clear majority at the Centre.
Apart from the affordable housing sector, which has witnessed a surge in demand, office space too has registered fresh demand, which was almost dormant for last one year, ever since the global economy went into a tailspin.

Commenting on the latest biometrics of the real estate sector in the country, Anshuman Magazine of CB Richard Ellis (South Asia) said, “In the 1st quarter of 2009, confidence and sentiment was low in the real estate market. The formation of a new government has improved market sentiment, while the global economic decline appears to be bottoming out. This has resulted in an improvement in the velocity of office space offtake, especially in the small to medium segments . This is further supported by a substantial decline in rentals in the past one year.”

Surge in demand for office space is a good sign for the economy, and also for the real estate sector. The opening of new offices means investment is likely to pick up, which will help revive the economy. At the same time, it also leads to creation of new jobs, which drives the demand for residential real estate. Normally, the demand for residential space increases by a factor of ten to that of office space.

Because of tough market conditions , coupled with a global slowdown, investments in the economy got badly hit. This resulted in a slowdown in demand for office space all of a sudden, in the last one year. But, the fresh supply of office space continued as buildings launched earlier to meet the expected strong demand for office space were completed during the period, even as the global economy was facing what may be billed as the second worst recession in the last hundred years.

This put pressure on rentals and capital value of office space in the country. In fact, this led to correction in rental rates and brought them down, closer to a more realistic level. CBRE report on office space said rentals in the secondary business district (SBD) of Nehru Place came down to more realistic levels with a correction of around 11% over the last quarter, to Rs 160 per sq ft per month.

Saket, another emerging market in the NCR, received minimal interest from the prospective office space occupiers. But as a huge supply of office space deluged markets in the last three months, the vacancy level in Saket rose to 35% and rental values corrected by around 22%, to Rs 140 per sq ft per month, over that in January-March 2009 quarter.

At Jasola, another promising SBD in the NCR, rental values fell by around 20%, to Rs 110 per sq ft per month due to a huge supply, 1.3 million sq ft during the period. Jasola is likely to benefit from a proposed fivestar hotel, multi-level parking facility and Metro-connectivity.

However, rentals in Gurgaon have not declined much in the last three months as they had already fallen substantially in the second half of 2008. In fact, corrections in the rentals have also helped in reviving demand for office space.

The report says Gurgaon witnessed an increase in the transaction activity, assisted by attractive leasing packages offered by most developers. Companies, the report says, which had postponed their expansion/relocation decisions due to negative sentiment are now ready to take advantage of the softened market and the options available for a phased take-up.

The report says Noida office market suffered heavily as rentals fell by 21%, to Rs 30 per sq ft per month, due to high vacancy levels at around 25-30 %. In fact, in the last one year, rentals in Noida dipped by almost 33%.

However, the positive aspect to all this is that leasing volume has increased by 3-4% in the NCR during the second quarter of 2009. The report says the increasing levels of corporate confidence should help this region and the momentum should be maintained in the second half of the year.

However, rentals in the commercial space market will continue to face challenges due to a large supply of new space, and till the time that the global economy gets back onto the path of recovery, opines Magazine. As rental values declined, the capital value of the property also suffered.

The fall in the capital values, however, has encouraged an increasing number of companies to explore and evaluate opportunities for an outright buy-out rather than leasing the required space. Though there is an improved level of activity in the sector, the markets are expected to remain soft in the short to medium term.

Source : http://economictimes.indiatimes.com/Markets/Real-Estate/Surge-in-demand-for-office-space-good-for-economy/articleshow/4791799.cms

Analysing Mid Market Residential Segment

Is this is a good time to buy? How much are prices likely to drop? Should I wait or buy now? Unfortunately, the answer is not a simple “yes” or “no”. One needs to consider factors such as economic growth outlook, interest rates, job security, demand, credit supply etc, understand the overall dynamics of the real estate sector. Rough estimates show that out of the total 100% real estate market the residential segment weightage is approximately 75% whereas 20% is commercial office spaces and balance 5% comprises retail, hospitality. The mid market residential segment (residential properties between Rs 15 – 50 lakh) represents nearly 85% of total mortgage disbursements in India. Therefore, the mid market residential segment represents nearly 64% of the market. Almost 55% of mortgage finance disbursement for residential properties happens within the top seven cities and the balance 45% is shared by the whole country.

There was a dearth of two to three bedroom properties within this range of Rs 15 – 50 lakh within the greater metropolitan areas of major cities. Easy supply of money from equity capital sources created an artificial demand of land for the development of large township projects and SEZs. Everybody started announcing huge and multiple projects but ignored the calculation, execution and delivery capability perspective involved. Most developers started projects 10 – 20 times the total square footage of what they had delivered in the last 20 – 30 years. The various sources of institutional capital lapped up the story. However critical considerations like the nature and kind of organisation structure, management bandwidth, labour, capital equipment, machinery, project time were ignored.

The pricing of residential projects went up by 400 – 500% in most cities between 2006 – 2008. Interest rates also went up from an all time low of 7.00%, 20-year fixed mortgage to as high as 13.75% floating rate in 2008. This put a lot of strain on affordability. The stock market crash and job insecurity that followed the Lehman Brothers fiasco, drove away investors and actual buyers. The credit tightening from domestic banks and marked to market losses started reflecting on credit supply to the sector and the market went dead. Developers came stress with no cash flows from the sale of projects and rentals of commercial office spaces and retail spaces also dipped by as much as 50% and everybody started playing the waiting game and bottom fishing to get back into the market.

The most credible development companies, in the absence of retail buyers, could not find capital to complete under-construction projects. This led to delays and temporary abandoning of projects. Developers were forced to rethink strategies to get back cash flows and improve sales. This led to developers having a “Eureka” moment about affordable housing. Luckily for the markets better sense has now prevailed and several developers are re-pricing projects downwards and repositioning them as affordable housing. The banks have also selectively started lending to developers, albeit in small amounts and with strict performance criteria. The banks have also brought down interest rates and also restructured debts. This has slowly brought buyers to the market.

The worst seems to be over for the mid-market residential real estate asset class, although the same is not yet true for commercial office spaces and retail malls. This segment essentially drives cash flows as well as the major chunk of demand. This segment is also one which gets maximum bookings from actual user market rather than the investor bookings in percentage terms. Therefore, it is the lead segment in driving real estate markets. Unfortunately, it was the most neglected segment during the bull run of 2006 – 2008. Now that most developers have realised that this segment is bringing back buyers who were left out to due to affordability issues during the bull run, cash flows are likely to improve. There have been a few launches of affordably priced projects, which have seen a positive response from actual users. This has led to other developers following suit and taking advantage of the positive sentiment that has emerged towards affordable/mid market residential segment. The market will see a slew of such launches in the next three to 12 months, giving ample choice to actual buyers. Prices will stabilize for a while.

I do not anticipate any further downward movement in properties priced between Rs 15 – 60 lakh (1 – 3 BHK homes) within the metropolitan regions of the top seven to ten cities. Tier III and tier IV cities prices are expected to fall further, however a property corrected 30 – 40% from peak level prices available is an excellent buy. One should take a decision within next three months. This will be a good time to get best possible deal. I feel that residential housing prices have bottomed out and will see a consolidation here onwards . Prices will start firming up and stabilize for a while and by mid next calendar year we should see some signs of price escalation coming back driven by rising volume and demand.

However, before you conclude the deal, do a due diligence on the developer’s track record, talk to the financing bankers about the delivery capabilities of the developer. Only buy from a reputed developer and if possible buy a completed project or one which is nearing completion. Don’t succumb to the pressure from sales staff saying “if you don’t buy now, you don’t get an apartment of your choice”. It is wise to monitor the project site for 3 – 4 weeks from the time you first visit the project and observe the number of labourers, the progress of the project every week, take pictures for 3- 4 weeks of the site to see the progress yourself and be convinced that construction is moving at a good pace. Ideally over 4 weeks, a good developer’s project should go up by 2 levels. Avoid first time and small developers as they have limited capital and resources and may not be able to deliver on time. It is advisable to use a reputed broker to help choose the right project and right developer and get all the relevant information. The 2.00% fees you will pay them is money well spent in getting that dream home.

Source : http://www.indianrealtynews.com/real-estate-india/analysing-mid-market-residential-segment.html

Mumbai-based developer Hiranandani Group Buys Land worth Rs 800 cr

Hiranandani Upscale, a fully-owned company of Mumbai-based developer Hiranandani Group, is learnt to have bought 135 acres in Bangalore, Chennai and Hyderabad for Rs 800 crore. According to a person involved in the transaction, the agreement had been signed last month between Hiranandani Upscale and three individual sellers in these cities. “The three land parcels comprise 80 acres in Bangalore, 35 acres in Chennai and 20 acres in Hyderabad,” said the person. Hiranandani Upscale plans to develop townships in these cities at a later date.

The sale of these land parcels have been on an outright basis and Hiranandani Upscale would make the payment in three tranches. It is believed that the company has paid an initial amount (token money). When queried on the deals, Surendra Hiranandani, managing director, Hiranandani Group and Hiranandani Upscale confirmed to ET the company’s plans to start new projects in South India but refused to share exact details about the deals.

It is learnt that the company would be raising the funds for the deal through private equity investments at a special purpose vehicle (SPV) level. According to the same person involved in the deal, Hiranandani Upscale is in talks with around four private equity players — three foreign and one domestic — for raising equity to develop these projects. Mr Hiranandani said: “We are not in a position to share details but can only confirm that we are talking to some PE players for a partnership at an SPV level.” Hiranandani Upscale is an unlisted company and will focus on projects outside Mumbai with plans to enter the market in North India at a later stage.

The Hiranandani group has plans to develop townships in the three cities on the lines of its Powai project in Mumbai. The projects in the three cities will target the higher income group. It is gathered that the projects will commence in two years and could take another three years for completion. The deal is important since there are not too many large deals taking place in the real estate sector now. In the recent past, deals have largely been taking place in Mumbai. Last month, DLF sold its stake in its Andheri-MIDC land parcel in Mumbai for Rs 200 crore, while in May, DLF had also sold its stake in a property, also in Mumbai. The number of deals have dropped as a result of the economic downturn and a liquidity crunch.

Source : http://www.indianrealtynews.com/real-estate-india/mumbai-based-developer-hiranandani-group-buys-land-worth-rs-800-cr.html

Steady Recovery for Office Real Estate

Call it recession or an oversupplied market (in terms of office space), or the general negative sentiment prevailing in the market, office real estate hit an all time low with values nearly bottoming out as compared to its peak around 8-12 months ago, in fact, the commercial real estate values dropped by an average of 25% in all markets and touched 50% in some. The transactions were few and far between as majority of the corporates postponed their business expansion plan and were downsizing, as most were not sure if they would be able to sustain themselves, leave alone embark upon any expansion plans, while those who were earlier looking at expansion/relocation fell in a wait-and-watch mode, in anticipation of further correction.

Giving a sense of the depreciation in commercial real estate values, specifically office space, Arjun Kumar, director of AsiaPac International India says, “Commercial and IT space has witnessed almost 40-50% correction compared to rates 6-8 months ago, across NCR.” He quotes the lease rent in Gurgaon for warm shell as anything between Rs 60-75 /sq ft /month and Noida (on the expressway and Sector 62) as Rs 45-55 /sq ft /month while one can get a steal at Sectors 63, 64 (which are primarily industrial sector but IT/ITeS are allowed to operate ) at Rs 25-30 /sq ft /month for warm shell space , and here additional space is being added almost every day.

Delhi CBD (Connaught Place) also witnessed correction of 40-50%. Says Kumar, “One can have space here between Rs 100-175 /sq ft/month depending on the building (A or B Grade) and maintenance, upkeep of the respective buildings. In South Delhi, Saket and Jasola District Centre in particular, have been witnessing almost 30-45% correction in lease rent as well as capital value. The lease rent being quoted in Jasola is Rs 140-175 /sq ft/month wherein capital value is anything between Rs 11,000-13,000/sq ft for commercial office space.” Apart from the values dropping, there has been a substantial drop in transactions. If at all transactions were happening, they were restricted to the suburbs such as Gurgaon’s Udyog Vihar, as well as builder sectors and Noida — on the expressway, Sector 62, 63, 64.

Says a broker, “The companies which are sure of their business plan and think that market will improve sooner or later are moving forward with their plans, especially, the major Indian corporates, which are catering to the domestic market. These include primarily telecom and software companies.” What is the exact situation in Delhi CBD and secondary micromarkets, Samantha Jerath of Jerath Properties says office transactions have slowed down, undoubtedly. “But it will be wrong to say the values have come down by 50%. This is because even though a rate of Rs 350 /sq ft /month was quoted earlier, no actual transactions were recorded at the value. The highest was Rs 250 and I would say office space values in CP have come down from Rs 175-250 /sq ft /month to Rs 120-150 /sq ft /month. In secondary micromarkets, it has depreciated from Rs 175 /sq ft /month to around Rs 110 /sq ft /month. There has been correction at least to the tune of 20-25% in the entire Delhi NCR region.”

He attributes the fall in office values to a generic overall market dynamics. “The economy is not bullish and so the real estate is witnessing a dent in values. Corporates are downsizing, have tighter budgets and are not enthusiastic about paying high rentals.” But the good news is that revival is on its way in commercial real estate. Says Anurag Bhatnagar, associate director at DTZ, an international property consulting firm, “Commercial real estate was suffering from lack of transactions till Q4 ‘08, but Q1 and Q2 ‘09 have witnessed absorption of a million sq ft each. Rentals across Delhi NCR had already corrected by 10-20% in Q4 ‘08 from peak asking rates in Q2 ‘08. Values corrected further marginally, by 4-5% across all micromarkets from Q1 to Q2 ‘09.”

So far, companies with expansion plans stayed on the sidelines anticipating bottoming out of the market. Citing the reason for lack of transactions, Mathur says lack of absorption/transactions till Q1 ‘09 was due to the general negative sentiment in the market, the cut on global-IT spend for companies and the delayed decision making process. During this period, companies adopted various strategies like renegotiation of contracts along rationalization of their current space layout resulting in higher efficiency. Q1 2009 witnessed a revival in demand with companies closing out deals due to good rates due to broader market being close to bottom. Q2 2009 again maintained the absorption levels of Q1 2009, primarily due to companies getting corrected rates in various micromarkets.

Delhi witnessed the lowest number of transactions in office space in the last one year, while the maximum transaction in office space took place in Gurgaon in Delhi NCR. Gurgaon witnessed majority of the absorption due to availability of Grade A office space in prime areas, available at attractive rates. Early completion of upcoming Metro corridor has also added value to the whole package (against Gurgaon always seen as suffering from lack of public transport).

Source : http://www.indianrealtynews.com/real-estate-india/steady-recovery-for-office-real-estate.html

Better Infrastructure Required to Boost Pune Real estate- ASSOCHAM Pune Head

There are often comparisons made between the infrastructure of Mumbai and Pune. The popular consensus seems to be that both cities are equally challenged as far as supportive infrastructure is concerned. This is inappropriate for two reasons – one, Mumbai’s growth pattern has been very different from Pune’s. The city has evolved into the country’s financial capital, and the pressures on it are enormous and overwhelming, considering the fact that a significant part of it is an island that cannot grow horizontally to accommodate the growing real estate demands.

Pune, on the other hand, has an advantage by virtue of the fact that it has been able to add to its borders by means of surrounding villages. This has served to decreased pressure on the central city and encourages an outward growth pattern. The challenges on Pune’s infrastructure – particularly its road network – have more to do with the speed of this growth. While there are various proposals for roads and road widening, these have to be translated into real time to be effective. The pockets of infrastructural under-development are the result of both developers and the government concentrating on existing growth areas and sidelining those with high future potential. It is a known fact that no area can grow in terms of residential, commercial and retail real estate unless the necessary infrastructure is first put in place. This is quite a common phenomenon that is the result of the principle of fastest returns almost instinctually followed by both developers and the government. Bangalore, for instance, was initially not well planned for radial expansion. The approach in this city was simple – where information technology projects went, residential projects followed. IT and ITeS, as business lines, are not dependent on a city’s CBD areas and can workably exist in areas where property prices are low. Once such a project is established, residential, commercial and retail establishments follow. Since this kind of growth in no way follows a master plan, the result is haphazard pockets of growth. This naturally leads to the neglect of areas that have not been so favoured. The syndrome is also evident in the case of other industries such as manufacturing.

To identity another factor that has compromised Pune’s holistic growth in terms of real estate viability – the first master plan for the city designated a much more progressive ‘roadmap’ for the city’s road network, while the second one is decidedly sotto voce on these. Also, key roads leading to new growth areas are not being put in place with the speed necessary to ensure that these new areas have the requisite connectivity. The roads leading to Kharadi – a major real estate growth nexus – have not been put in place due to an inappropriately slow speed of development initiative. Similarly, the Eastern bypass has been at the proposal stage for many years. In these and various other instances, the result is compromised potential.

In comparison, the Pimpri Chinchwad Municipal Corporation (PCMC) has been proactive in terms of a proper road network. This explains why there have been such spurts in growth and corresponding real estate values in this region. Considering how much the authorities have already achieved, it is distressing that certain pockets in the region still show signs of infrastructure deficit. The Pharande Group, which has made significant land bank investments in Phase II, across Sectors 4 and 6, had already launched residential projects in Pradhikaran’s Phase I. However, because of the lack of proper roads, only the Pharande Group and a handful of smaller developers have taken the risk of venturing into this area to open it up for the times to come. The potential of this key area apparently lacks from recognition of its inherent future value. A closer look at its promise for the PCMC real estate market would very likely cause a more fast-paced development of its road network. There are earlier precedents in Pune, wherein languishing areas were given fast-paced infrastructure upgrades because of an upcoming market catalyst.

When the recent Youth Commonwealth Games loomed closer, the enhancement of Baner Road and Pashan Road were put on the fast track. In the same manner, it is not unreasonable to anticipate that the PCNDTA will take cognizance of the fact that Pradhikaran’s Phase II is extremely important by virtue of the fact that strategically juxtaposed New Rajguru Nagar has now been identified as the location of Pune’s new airport. This being the case, putting down adequate roads in this area will set the stage for immense future growth of this strategically placed locality.

Source : http://www.indianrealtynews.com/real-estate-india/better-infrastructure-required-to-boost-pune-real-estate-assocham-pune-head.html

Venture capital investments down 250% in first half

Mumbai: Venture capital (VC) investments in the country have plunged 250% in the first half of calendar 2009 in value terms. The number of deals done also dipped 148%, with just 27 investments being made in the period this year compared with 67 last year.

According to a recent study, VC firms invested $117 million in 27 deals during the six months ended June 2009. Data compiled by Venture Intelligence and the Global-India Venture Capital Association (GIVCA) showed the amount invested during the period was lower compared with the first half of 2008, which had seen $413 million being invested through 67 deals.

Industry experts attribute this decline to VC firms raising the bar with their investment risk. Besides, the due diligence is taking longer as they are scrutinising every aspect of the companies they are looking to invest in.

Admitting to a decline in VC investment activity, Sudhir Sethi, director of GIVCA and founder chairman and managing director of IDG Ventures India, said the uncertainty in global financial markets over last six months has certainly affected these companies’ investments in India. “But there are clear signs of revival over the last couple of months, especially in emerging markets like India,” he said.

With 14 investments worth about $75 million, information technology (IT) and IT-enabled services (ITeS) companies accounted for about 52% of the deals (63% in value terms) in the first half. Within IT and ITeS, online services firms retained their status as the favourites, accounting for over 57% of the investments (by volume) within the industry during the January to June period of 2009.

Domestic demand driven sectors like financial services (especially microfinance), healthcare and education are the other industries that continued to attract VC attention, said the

GIVCA/Venture Intelligence report. Early-stage deals (first/second round of VC investments into companies that are less than five years old) accounted for two-thirds of the investments (and 57% in value terms) during the period.

Source : http://www.dnaindia.com/money/report_venture-capital-investments-down-250pct-in-first-half_1274385

Sobha to raise Rs 1,400 cr by selling land parcels

New Delhi: Sobha Developers Ltd, the Bangalore-based real estate developer is looking to raise about Rs 1,200-1,400 crore by selling part of its land parcels in a bid to reduce its outstanding debt.

The developer has a timeline of around two years to raise funds and is looking at outright sale or by selling stake to private equity investors.
Sobha’ managing director J C Sharma could not be contacted for comment.

The cost of acquisition of the land that the company plans sell was around Rs 600-800 crore.

The plots identified are 100 acres in Pune, 38 acres in Bangalore and around 300 acres in Kochi and adjoining villages.

For its Bangalore land parcels, Sobha is in advanced talks with other regional developers.

With land asset sales and cash flow from existing projects, the developer will reduce its gross debt from about Rs 2,000 crore to Rs 1,300 crore by end of current fiscal and to Rs 600 crore by end of next fiscal.

Recently, Sobha sold a land parcel to private equity investor Purna Partners, for about Rs 200 crore, for developing new projects.

The developer has also raised $110 million by diluting 22.5% stake in the company through qualified institutional placement of shares to investors. It has already paid about Rs 370 crore from the funds raised to its debtors.

With the QIP, the developer has been successful in reducing its debt equity ratio from 1.7 to 0.85. It is looking to offer of more than 2 million square feet of new projects this fiscal.

http://www.dnaindia.com/money/report_sobha-to-raise-rs-1400-cr-by-selling-land-parcels_1274672

Housing Sector to Come up with 8,000 flats in NCR

In a move expected to give a big push to the housing sector in Gurgaon and Faridabad, the Haryana Housing Board is in the process of inviting expressions of interest for building 8,000 flats in these cities and some other places in the national capital region areas. This is in addition to the 38,000 housing units, majority of them in NCR, planned in the next two years. Under the latest project, the state will enter into an agreement with real estate developers to provide affordable housing to middle and lower middle class under the public private partnership mode.

“Since we do not have land in Faridabad and Gurgaon, we will be joining hands with private colonizers whose projects have been stuck due to the (economic) slowdown. We’ll prefer those who have the licence, and then those who have enough land,’’ said S P Gupta, chief administrator of the housing board. The announcement follows chief minister Bhupinder Singh Hooda’s assurance to developers that steps will be taken to counter the slump in the real estate market. It will also fulfil his commitment of providing cheap housing to locals, especially those in NCR cities of Gurgaon and Faridabad. Among the other areas selected for the project are Bawal (in Rewari district close to Gurgaon), Badhi (Sonepat) and Karnal.

Officials claim that around 828 units would come up at Badhi, a township to the north of Delhi. While the board is still working on the number of flats to be offered in Gurgaon and Faridabad, it plans to build 400 units for the lower middle class in Bawal. The housing board will share 50% cost of the project and forego profits. “We’ll also have some guidelines as far as profits of joint venture groups are concerned,’’ Gupta added. Earlier, the state had announced that as many as 38,000 houses would be built for all sections of society by 2011. Though the exact number of houses to be constructed close to Delhi hasn’t been worked out, it’s believed that most of these units will be in NCR where the demand is the highest.

http://www.indianrealtynews.com/real-estate-india/housing-sector-to-come-up-with-8000-flats-in-ncr.html

Property, Real Estate and Peace of Mind

Jaypee Greens Kosmos: Jaypee Noida coming up with a new affordable housing

Noida, India 13th July 2009, With the usage of effective and efficient space planning techniques measures Jaypee Kosmos are built to create vibrant place to live in. It has facilities and amenities which match any premium residential project. These residential will suits those buyers who have dream to buy a premium home in an affordable price. Its location is strategic. It is on the vantage point of Greater Noida Road and Faridabad-Noida-Ghaziabad (150m wide), Link Road along Yamuna River, Noida-Greater Noida Expressway, NOIDA Toll Bridge, Greater Noida – Mathura – Agra Expressway, and Rail Link.

(live-PR.com) – About Projects: Jaypee Greens new residential project Jaypee Greens Kosmos Jaypee Noida on Noida – Greater Noida expressway has received tremendous response from the market. A total of >3000 apartments that had been introduced in the market, have already been booked in few hours. This is due to the strong belief that the pubic has in Jaypee Greens, Noida and the strong value system of the company.

Common Amenities of Jaypee Greens Kosmos

Shopping Arcade, Temple, Schools, Medical facility, ATM, Banks, Transport to City Centre, Landscaped Green Area, Children play area, Ample Parking Area, Community Hall, Party Hall, Clubhouse, Solar Water Heating, Water Treatment Plant, Power Back-up for Utilities, Round the Clock Security, Fire fighting system, Gymnasium, Swimming Pool, Tennis Courts

About Builder: The Jaypee Group is a well diversified infrastructural industrial conglomerate in India. Jaypee Greens Wish Town Klassic is one of the best property provided by Jaypee Group in noida.Over the decades it has maintained its salience with leadership in its chosen line of businesses – Engineering and Construction, Cement, Private Hydropower, Hospitality, Real Estate Development, Expressways and Highways. The Jaypee Group is synonymous with creating premium lifestyle experiences through exclusive golf-centric real estate. The existing 452-acre development at Jaypee Greens, Greater Noida integrates homes with landscaped greens, resort living and commercial developments amidst an 18 hole Greg Norman golf course. It is a complete lifestyle destination offering individual homes and luxury apartments.

Source : http://www.live-pr.com/en/property-real-estate-and-peace-of-r1048298866.htm

Demand for office space during April-June jumps 65 pc: Report

Improving economic sentiment and rising confidence of the corporate sector led to a 65 per cent jump in demand for office space in the  April-June quarter at 5.66 million sq ft compared to the previous quarter.

However, the gap between demand and supply also grew wider during the quarter with supply outstripping demand by over 50 per cent and increasing the average vacancy across major cities in India to over 13-18 per cent, according to real estate consultancy Cushman and Wakefield.

Rental corrections during the quarter ranged from 3-10 per cent across most micro markets in key cities of India. The highest correction was recorded in Thane which saw rentals declining by 25 per cent on account of low demand.

Bangalore’s suburban locations recorded a correction of 12 per cent while Nagar Road in Pune registered a drop of 14 per cent in rental values over previous quarter, the consultancy said in a report.

Mumbai continued to remain volatile in terms of rental values. Bandra-Kurla Complex (BKC) corrected by another 20 per cent over the previous quarter. The central business district (CBD) saw a correction of 14 per cent largely due to low demand from corporate sector.

http://economictimes.indiatimes.com/News-by-Industry/Demand-for-office-space-jumps-65-pc/articleshow/4784838.cms

SBI to step up home loan disbursals

MUMBAI: State Bank of India (SBI), which is said to have kicked off a war on home loan rates a few months back when it launched the 8% scheme, is set to have stepped up the ante by raising the target on sanctions each month.

SBI had frozen interest rates on new home loans for a period of one year at 8% in February, which was then extended up to September 2009. The initial announcement had triggered speculation that SBI had kicked off a rate war to take on leaders like Housing Development Finance Corporation (HDFC). It also led to HDFC chairman Deepak Parekh calling it a gimmick.

Now, SBI seems to be taking the war to another level. The largest bank has raised the target for home loans to Rs 2,500 crore every month from Rs 1,500 crore disbursed over the last few months. Sources at SBI said that even as the 8% scheme initially witnessed a shift of customers from other lenders, of late, the bank has seen a rise in enquiries from fresh borrowers.

Another indication of the home loan war heating up is the fact that SBI is targeting a growth of 30% in this financial year compared with 21% in 2008-09. On the other hand, HDFC, which saw a growth of 21% in loan disbursements in the previous fiscal, is expected to maintain a growth rate of 18-20% for this fiscal.

SBI is seeing an increase in home loan demand from new borrowers, and loans of up to Rs 20 lakh constitute 75% of its loan book, sources said.

SBI has raised the overall target for home loans to Rs 30,000 crore in 2009-10, which is only slightly lower than HDFC’s loan approvals of Rs 39,650 crore in 2008-09.

In an interview to UTVi earlier this month, HDFC vice chairman and managing director Keki Mistry had said that the lender had loan approvals of over Rs 30,000 crore, and that the 8% scheme of SBI was unlikely to take away business significantly.

Its clear that the country’s biggest nationalised bank, which has a market share of 18-20% in housing loans, is now also looking to being the largest lender in home loans..

Home Loans: Some Facts
SBI has fixed 8% for home loans for first year
SBI has fixed 9% for home loans up to Rs 30 lakh for 2nd and 3rd year
SBI has fixed 9.5% for home loans over Rs 30 lakh for 2nd and 3rd year
HDFC charges 9.25% for loans up to Rs 30 lakh
HDFC charges 9.75% for loans over Rs 30 lakh
SBI home loan portfolio at Rs 56,000cr in FY09
SBI’s home loans grew at 21% in FY09
SBI looking at 30% growth in home loans in FY10
HDFC FY09 loan disbursements at Rs 39,650cr in FY09, growth of 21% YoY
HDFC loans of up to Rs 20 lakh constitute 50% of the loan book
HDFC has market share of 40% followed by ICICI Bank at 21% and SBI at 8%
Analysts say HDFC has around 30% market share in tier-II, tier-III cities
HDFC looking at maintaining 20% growth rate in FY10

Source : http://www.utvi.com/industry-news/banking-industry-news/27079/sbi-to-step-up-home-loan-disbursals.html

8,000 flats coming up in Gurgaon and Faridabad

CHANDIGARH: In a move expected to give a big push to the housing sector in Gurgaon and Faridabad, the Haryana Housing Board is in the process of  inviting expressions of interest for building 8,000 flats in these cities and some other places in the national capital region areas. This is in addition to the 38,000 housing units, majority of them in NCR, planned in the next two years.

Under the latest project, the state will enter into an agreement with real estate developers to provide affordable housing to middle and lower middle class under the public private partnership mode.

“Since we do not have land in Faridabad and Gurgaon, we will be joining hands with private colonizers whose projects have been stuck due to the (economic) slowdown. We’ll prefer those who have the licence, and then those who have enough land,” said S P Gupta, chief administrator of the housing board.

The announcement follows chief minister Bhupinder Singh Hooda’s assurance to developers that steps will be taken to counter the slump in the real estate market. It will also fulfil his commitment of providing cheap housing to locals, especially those in NCR cities of Gurgaon and Faridabad. Among the other areas selected for the project are Bawal (in Rewari district close to Gurgaon), Badhi (Sonepat) and Karnal.

Officials claim that around 828 units would come up at Badhi, a township to the north of Delhi. While the board is still working on the number of flats to be offered in Gurgaon and Faridabad, it plans to build 400 units for the lower middle class in Bawal. The housing board will share 50% cost of the project and forego profits. “We’ll also have some guidelines as far as profits of joint venture groups are concerned,” Gupta added.

Earlier, the state had announced that as many as 38,000 houses would be built for all sections of society by 2011. Though the exact number of houses to be constructed close to Delhi hasn’t been worked out, it’s believed that most of these units will be in NCR where the demand is the highest.

BOX

Flats planned by 2011.

Total no : 38,000

EWS : 15,340

LIG : 7,800

MIG : 7,100

HIG : 4,800

Others: 3,000

Source : http://timesofindia.indiatimes.com/NEWS-City-Delhi-8000-flats-coming-up-in-Gurgaon-and-Faridabad/articleshow/4786929.cms

Low-cost housing drive may dent margins of realty firms

The June quarter financial results of real estate companies will mirror the changes that the sector went through during the quarter. The sector,  which has been languishing for some time, appears to have found its feet with its focus on affordable housing. This has led to higher sales for many companies. But on the flip side, the move has impacted the margins negatively for many. The reason being that the mid-segment housing is a high volume-low margin business.

The June quarter results, hence, may be a tad better on a quarter-on-quarter (q-o-q) basis, but much lower than those reported in the corresponding quarter of the previous year. The average of the estimates of ET Intelligence Group and eight brokerage houses shows that the overall industry sales are expected to decline 30% on a year-on-year (y-o-y) basis. On a q-o-q basis, industry sales would grow at an average of 30%.

It may also be understood that only the residential market has seen a recovery, while the commercial and retail segments are still under stress. Among all the listed companies, Orbit and Indiabulls Real Estate (IBREL) are expected to show a marginal improvement in sales. With a huge fall in property prices in the luxury segment, Orbit has shown a 5% increase in sales. With a 70% yoy decline in revenue, Parsvnath is expected to see the highest fall. DLF and Unitech may follow with a 60% and 54% decline, respectively.

As a move to generate cash for business activities, both these companies have exited from unviable projects and also sold non-core assets. This would help in completing under-construction projects. Even some large SEZ projects have been shelved.

A lot of companies have launched new residential projects in the affordable housing segment. Though construction costs would be low, EBIDTA margins would fall by an average of 5-10% due to a sharper decrease in prices. However, companies such as Unitech, DLF, HDIL and Sobha, which have raised funds, have improved their balance sheet positions and thus lowered their overall finance cost. Average EBIDTA margin for the June quarter would be 39% against 43% for the March quarter. Peninsula Land is expected to show a positive margin, as the number of projects was very limited, hence leverage was also low.

Despite all the gloom, realty sector is seen to show some improvement in margins. The overall profit after tax (PAT) margins for the June quarter will be at 26%.

Though real estate sector is one of the major contributors to the over all profit growth for India Inc, yet it is low as compared to the past PAT margins of 35-40%.

However, since alternate sources of funds have become available, builders have managed to improve their cash position. Loans have been restructured and thus interest liability has been reduced. Developers, such as Mahindra Lifespaces, IBREL and Peninsula Land, are expected to report PAT margins upward of 30%.

http://economictimes.indiatimes.com/News-/Low-cost-housing-drive-may-dent-margins-of-realty-firms/articleshow/4787053.cms

Office space transactions up as rentals dip

The post-election optimism has percolated to office real estate market too. With substantial decline in rentals over the past one year, transaction volumes have picked up in the commercial realty market.

According to a report by CB Richard Ellis, enquiry and transaction levels have on an average shown a marginal increase over the last three months. Transactions have picked up, for instance, in Bandra Kurla Complex (BKC) and the central Mumbai areas of Lower Parel and Worli. However, vacancy levels still continue to remain high which, the report predicts, will continue to stop rentals from increasing in the near future.

For instance, as compared to the first three months of 2009, in the months of April-June vacancy levels in Nariman Point increased to 17%-18% while the rentals dipped by 14%. This was mostly because existing occupants here chose to relocate to the central Mumbai to bring down their outgoings on rentals during the recession. Similarly, rentals in central Mumbai are expected to decline further with a slew of under-construction office projects expected to bring in a supply of 3.5 million sq ft by early 2010.

Rentals have declined the most in the Andheri-Jogeswari belt by 17% owing to traffic snarls caused by the construction work for the Metro. The most affected by the slump over the last three months are IT industry hubs. The slowdown in this sector has brought down office space transaction in the areas of Malad, Powai, Thane and Navi Mumbai.

“The Union Budget did not announce any incentives for the real estate sector which would have given an impetus to industry during these times. However, the focus in infrastructure in the budget will help the real estate sector in the long run,” said Anshuman Magazine, chairman and managing director, CB Richard Ellis. He added that while transactions have improved, the movement is mostly in smaller format offices with vacancy levels still high in larger spaces.

“Most developers have deferred plans for project launches, the focus being on using their scarce resources on completing the projects in hand,” said Magazine.

Source : http://www.indianexpress.com/news/office-space-transactions-up-as-rentals-dip/489212/2

Jaypee Greens Kosmos: Jaypee Noida Coming up With a New Affordable Housing

Noida, Uttar Pradesh — (SBWIRE) — 07/14/2009 — With the usage of effective and efficient space planning techniques measures Kosmos is built to create vibrant place to live in. It has facilities and amenities which match any premium residential project. These residential will suits those buyers who have dream to buy a premium home in an affordable price.

About Projects: Jaypee Greens Kosmos is the latest addition in the vast range of projects being offered by Jaypee Greens. The project is located on the fast developing Noida –Greater Noida expressway that enjoys great connectivity to Delhi and NCR. The project offers a new style of integrated community living that comprises everything one could ask for in a home – Security, Convenience, Location, Recreational Amenities etc.

The project will also offer social amenities like Shopping Complex, Social Club with swimming pools, gymnasiums etc. Primary and Senior Secondary schools, crèche, kid’s play area, uninterrupted water & power supply etc. is best in class amenities with in the gated environment. All facilities are available within the radius of 5 to 6 kms. This is the place where life’s better shade surround, where the air is fresh with scents of lush green lawns. The project offers you space efficient 1, 2 and 3 bedroom apartments with excellent amenities such as club house, sports facilities, swimming pool and more. Spread over 90 acres, this gated community will have 2, 3 BHK & 3 BHK + worker room apartments with 35 acre(approx.) lush green Central Park, gardens, walkways, fountains and golf course near by enveloping the residential units on the periphery.

USP’s of Jaypee Greens Kosmos:

Gated and well-planned integrated residential community offered by Jaypee Greens

Apartments flanked with landscaped parks, walkways and golf course

Multi-storey apartment towers

Education facilities within the community

Prices to ranging between 25 to 50 lacs.

Well-connected to Noida-Greater Noida expressway. Less than 700 meters from Yamuna expressway connected through 45 m wide sector road. Just 25 minutes distance from South Delhi.

Good connectivity through the proposed Metro.

Close proximity to SEZs and Commercial centers

Its location is strategic. It is on the vantage point of Greater Noida Road and Faridabad-Noida-Ghaziabad (150m wide), Link Road along Yamuna River, Noida-Greater Noida Expressway, NOIDA Toll Bridge, Greater Noida – Mathura – Agra Expressway, and Rail Link.

Commenting on the tremendous response, Mrs. Rita V. Dixit, Director – Jaypee Group says “The phenomenal response that we have received on Jaypee Greens Aman is due to the fact that we have always tried to understand the sentiments of the market and accordingly offered the right quality product at the right time and the right prices. Couple of months back we had launched Wishtown Klassic at sector 128 which also received a very positive response and now again with the response received from Aman it is clearly evident that people have strong faith in us and we will continue our endeavor to provide good quality living to more such townships.”

About Builder: The Jaypee Group is a well diversified infrastructural industrial conglomerate in India. Jaypee Greens Wish Town Klassic is one of the best property provided by Jaypee Group in noida.Over the decades it has maintained its salience with leadership in its chosen line of businesses – Engineering and Construction, Cement, Private Hydropower, Hospitality, Real Estate Development, Expressways and Highways. The Jaypee Group is synonymous with creating premium lifestyle experiences through exclusive golf-centric real estate. The existing 452-acre development at Jaypee Greens, Greater Noida integrates homes with landscaped greens, resort living and commercial developments amidst an 18 hole Greg Norman golf course. It is a complete lifestyle destination offering individual homes and luxury apartments.

Source : http://www.sbwire.com/news/view/29490

Hi-Tech Infra to invest Rs 600cr in Coimbatore SEZ

Hi-Tech Infrastructure Private Limited, promoted by Coimbatore-based KG Information Systems Limited (KGISL), plans to invest around Rs 600 core over the next two years in building a township at a special economic zone (SEZ), the first SEZ for IT and ITeS sectors being developed at Saravanampally in Coimbatore. Speaking to Business Standard, KGISL managing director, Ashok Bakthavathsalam, said the company was developing the SEZ on 150 acre, of which 65 acre had already been allotted to Robert Bosch India, Cognizant and Perot Systems. Bosch is setting up a research and development centre in the SEZ with an investment of around Rs 250 crore.

Bakthavathsalam said the SEZ was expected to attract investments to the tune of Rs 2,000 crore and generate employment to about 15,000 people over the next two years. “KGISL alone will invest around Rs 600 crore in the SEZ, which will be funded through a mix of internal accruals and debt,” he said. The company is planning to set up a budget hotel, 400 affordable houses and a hospital to supplement the upcoming industries in the SEZ, he said, adding that the company is open to join hands with private partners to promote the township.

“The SEZ will also help other industries to grow in this region. For instance, Robert Bosch facility will not only create additional job opportunities in Coimbatore, but will also benefit the manufacturing sector in and around Coimbatore as Robert Bosch is looking for partners to bring complimentary strengths to what it does,” Bakthavathsalam. Coimbatore, he said, will be the right destination for IT and ITeS companies, which are currently passing through rough times. A business process outsourcing (BPO) company, which will operate out of Coimbatore, can save up to $200 per seat a month when compared to Delhi or other major metros.

“Moreover, there are about 40 engineering colleges and 80 arts colleges, which are producing about 150,000 students every year. Availability of human resources is the biggest advantage.The establishment of the SEZ will also benefit the adjoining villages with the creation of non-IT jobs,” he said.

Source : http://www.indianrealtynews.com/sezs-india/hi-tech-infra-to-invest-rs-600cr-in-coimbatore-sez.html