MCHI announces Property 2009 India’s Largest Official Property Exhibition

Maharashtra Chamber of Housing Industry (MCHI), the most prominent body of real estate builders and developers in the country, today announced ‘Property 2009’ their 15th Real Estate and Housing Finance Exhibition.

India’s Largest Official Property Exhibition At MMRDA grounds BKC during October 1-4, 2009

Mumbai, September 25 2009: Maharashtra Chamber of Housing Industry (MCHI), the most prominent body of real estate builders and developers in the country, today announced ‘Property 2009’ their 15th Real Estate and Housing Finance Exhibition to be held at MMRDA grounds, Bandra Kurla Complex, scheduled to be held during October 1-4, 2009 from 11am to 8pm.

Property 2009, India’s only official and largest real estate and housing finance exhibition organized bi-annually by the MCHI from last ten years, is a one-stop destination for the potential property buyers in Mumbai.  It offers home buyers a wide range of properties both Budget, High End and Commercial Properties along with a wide choice of Home Loan options.

As many as 75 real estate developers would be showcasing the properties located in Mumbai and the suburban areas, Thane, Navi Mumbai, Pune and other parts of India during the exhibition. The exhibition is organized by MCHI and co-organized by the State Bank of India, Platinum Partners – ICICI Home Finance Company Ltd., Axis Bank, and LIC Housing Finance Ltd. IDBI Bank is the Gold Partner and HDFC Ltd is the Silver Partner.

Prominent housing finance companies such as Citibank N A, Dewan Housing Finance Corporation Ltd., GIC Housing Finance Ltd, IDBI Home Finance Ltd and Kotak Mahindra Bank Ltd will also be participating in the exhibition, offering their best deals.

Mr. Pravin Doshi, President MCHI said, “As the festive season begins, we would like to offer an opportunity to the thousands of prospective home buyers to buy the house that suits their requirements from the properties being displayed at the exhibition.”

Mr. Harish Patel, Convenor Exhibitions adds, “Riding on the revival in the overall economy, real estate has recently seen demand is picking up in all the segments. We are very much confident that forthcoming mega real estate exhibition would serve the cause of bridging the gap between the potential buyers and the real estate developers by bringing them at the one platform”.

Mr. Deepak Goradia, Co-convenor Exhibitions, said, “MCHI’s property exhibitions have always reflected the market’s true sentiment. Be it the mega shows or the budget shows, these exhibitions have become a convergence point for property seekers. This time too, we foresee a great potential as thousands of prospective home buyers are awakening to the prospect of investing in property to get the best returns”.

About MCHI:
Maharashtra Chamber of Housing Industry (MCHI), formed in 1982 is the most prominent body of real estate builders and developers bringing together members dealing in real estate and construction industry on one common platform to address issues facing the industry. Members of MCHI account for providing 80 % – 90% of residential accommodation in Mumbai and its vicinity. MCHI helps both the Central and State governments in meeting their objectives of providing shelter. MCHI works towards raising awareness among the general public, real estate and construction industry while providing them with exhaustive information on projects and new developments in and around Mumbai. With over 400 well-recognized and reputed member builders, developers MCHI is affiliated with leading industry associations like FICCI, IMC and CREDAI.

Source : http://www.prlog.org/10356396-mchi-announces-property-2009-indias-largest-official-property-exhibition.html

Demand for retail space on the rise

New Delhi, Sept. 28 After being virtually comatose for three quarters, retail real estate demand is showing some signs of revival as players in organised space begin to put their expansion back on track.

With same-store sales in April and May faring better than the preceding quarter, commercial markets in Delhi, Mumbai and Bangalore are seeing an uptick in enquires for additional space, say industry watchers.

According to a recent report by Cushman and Wakefield, Pune is expected to record the highest compounded annual growth of 51 per cent due to the current limited stock of operational malls and favourable demographic profile.

Bangalore, Mumbai and Delhi NCR are expected to see the highest demand, together comprising about 20 million sq ft (msf).

Mr Arvind Nair, Managing Director, DLF Retail Developers, agrees that the demand in the B2B space, that is, retail brand’s demand for space from property developers, had seen an improvement since May. “Brands are looking for larger space. National and international brands are more aggressive, while local brands are taking a more cautious approach,” he said.

Stabilisation period

According to real estate consultant CBRE, the first half of the year could be looked at as a period of stabilisation for the retail industry after a positive sentiment in the economy with the formation of the new government and the return of buoyancy to the stock market.

“This has allowed retailers to reassess the positions taken up by them across the country for expansion of their stores as rental values have rationalised and flexibility is being offered with regard to lease terms,” it added.

The report has pegged the cumulative retail demand across India at an estimated 43 msf by 2013, of which the demand in the top seven cities is expected to be nearly 34.6 msf.

Demand is expected to be concentrated in the Tier-1 cities, constituting nearly 46 per cent of the total estimated pan-India demand during the period.

Aggressive expansion

Fashion retailer Genesis Colors, which has a slew of luxury brands including Jimmy Choo under its ambit, said it was going ahead with expansion plans. “We will be adding at least 15,000 to 20,000 sq feet to scale up our presence. Last year, we were slow; but this year we will be aggressive in our expansion,” Mr Jyoti Narula, Managing Director, Genesis Colors, said.

Citing instances of demand revival, CBRE says that locations such as Khan Market and South Extension in Delhi have witnessed significant leasing activities with several food and beverage players such as Cafe Oz and Amici, and apparel brands such as Triumph and Adidas among others, entering the space.

“Prime high street and mall will continue to be our core expansion choices. We will be adding 55 new stores by the end of this fiscal,” the Reliance Digital President and CEO, Mr Ajai Baijal, said.

Source : http://www.thehindubusinessline.com/2009/09/29/stories/2009092951430900.htm

Builders see large room for growth in office space

Market for this predicted to grow at a compounded 19% annually for next four years.

The glittering towers in the country’s commercial capital may still be rising into empty space, but that hasn’t stopped Rashesh Kanakiya’s ambitions from soaring.

The chairman of Kanakiya Spaces has just launched a commercial project called — rather oddly, some would say — Boomerang, a 1.2 million sq ft complex at Andheri, a Mumbai suburb. Kanakiya says it’s the country’s largest single-project floor space on offer and a substantial part of that will be earmarked for offices.

The oversupply in the office space doesn’t worry him. “Though there is oversupply in the IT space, demand for office space hasn’t stopped. With international markets picking up, we expect demand to pick up from early next year. We have got an excellent response for our Boomerang project this week,’’ Kanakiya says.

Kanakiya has put his money where his mouth is. His company has also just completed 215 Atrium at Andheri that offers office space of 300,000 sq ft, apart from a 300-room four-star hotel (Courtyard Marriott). The space has been sold out.

Kanakiya is certainly not alone in expecting things to improve. According to a Cushman & Wakefield report, though the office market is expected to dip in demand this year with an expected absorption of 27 million sq ft, the period from 2010 onwards will see the markets experience a healthier demand, with a compounded annual growth of 19 per cent from 2009-2013.

The commercial office market in India is likely to head towards a more balanced demand and supply situation in the next few years. The highest demand in the next five years is expected to be in Bangalore at 34 million sq ft, followed by Chennai at 27 million sq ft. Mumbai comes just after that. The growing corporate confidence is expected to turn things around in the office space market, the report says.

According to the Global Office Real Estate review (mid-year 2009) by Colliers International, Mumbai remains the 15th largest office construction site in the world and the city is currently seeing as much as nine million sq ft of office space coming up. This is a huge jump compared to June 2008 (just before the global recession started) when barely 3.8 million sq ft was under construction.

According to real estate research firm Liases Foras, the Mumbai Metropolitan Region (MMR) has nearly 60 million sq ft of unsold office space, but developers are now planning to launch 120 million sq ft of new office space by 2016, in anticipation of a much better tomorrow.

The growing corporate confidence has prompted many developers to put the oversupply concerns behind them and either launch new projects or put the unfinished ones on the fast track, with aggressive marketing efforts.

The list is getting longer by the day and includes Indiabulls Real Estate, which is ready with its 1.5 million sq ft Indiabulls Finance Centre at Lower Parel, Ackruti City with its office complex at Bandra Kurla Complex, Phoenix Mills, which will develop 1.7 million sq ft of office space in its Phoenix Market City project in Kurla, ACME and the Ajmera group, which have launched their projects recently.

Raja Kaushal, executive director and chief operating officer of BNP Paribas Real Estate India, says there is a latent demand for office space from most sectors. “There are at least five to big companies which are looking for properties in excess of 50,000 sq ft,” Kaushal adds.

That’s a sharp turnaround from the middle of last year, when most companies and financial institutions deferred their expansion plans due to the uncertain demand scenario and in the hope that they would get properties at cheaper prices later. The result: Office rents in the city’s main business hubs, Nariman Point, Bandra Kurla Complex and Lower Parel, have gone down by 50-60 per cent in the past one year.

However, there is a large section of consultants who find the spate of new office space launches a bit difficult to digest. Some developers are marketing aggressively (two-page expensive advertisements in Mumbai dailies have become a common affair now) so that buyers come back.

“Developers have been trying to sell these properties for quite some time. It is very difficult to get buyers, so developers are advertising heavily to woo buyers. And in some cases, they do have any option other than launching office complexes as per zoning laws,’’ says Pankaj Kapoor, chief executive of Liases Foras.

According to Kapoor, a number of developers are also withdrawing their projects due to poor response. Mumbai witnessed 1 million sq ft of cancellation from buyers in the December quarter of this year and a mere 500,000 sq ft of leasing and buying in the June quarter, which is very insignificant, Kapoor says.

Kapoor, however, seems to be in a minority. A real estate developer who didn’t want to be identified says he isn’t a fool to have put his money in something without proper research. “Consultants may be wise people, but we are actually investing and know better,” he says.

Source : http://www.business-standard.com/india/news/builders-see-large-room-for-growth-in-office-space/371486/

Residential property prices rise 15%

AHMEDABAD: The upswing has begun. Not only have the sales picked up, but the prices of residential property too have increased 5-15 % in the last Greatest ceilings
Make maximum use of office space  couple of months. With a long festive season ahead, realty experts believe property markets could see heightened activity, provided developers desist from increasing prices of residential space any further.

“The festive season (September-December ) has historically been a buying period, with a large chunk of overall sales being converted during this auspicious time. Some developers see as much as 30-40 % of the yearly sales taking place during the festive season,” says Aditi Vijayakar, the executive director (Residential Services, India) of Cushman & Wakefield (C&W ), a global realestate consultant. “Residential prices have increased by 5-15 % from the bottom it made in the first half of the year. If the developers continue to raise the prices then the renewed demand and interest that is being witnessed will start to abate,” she cautioned while talking about the upcoming season which is also a source of attraction for the cash-rich NRIs.

“The previous year has been a taxing one for the real estate industry and the initial signs of recovery are evident in the market, and as most of the sales happen during the festive periods, developers have to be cautious not to hike prices in projects and new launches as this will drive out the end users and prolong the revival in the residential space,” Ms Vijayakar remarked.

According to the expert, almost all cities are registering a rise in sale as transactions had frozen up during the start of the year. But now as the economy has stabilised and is back on the growth trajectory, there is a revived interest in buying homes by end users and this increase in confidence, better economy, favourable borrowing conditions, rationalised capital values amongst others which is promoting rising sales across India..

However, developers and builders are eyeing the renewed demand in the residential space as a huge opportunity. “After almost a year-and-a-half, we see a renewed demand in the residential sector. During the last three months, sales have picked up by almost 100%, and with a long buying season ahead, the property prices will definitely move up the graph,” says Sameer Sinha of Savvy Infrastructures Ltd.

“In Ahmedabad, going by conservative estimates, the prices of residential property is expected to rise by another 25-30 % in the next one year”, Mr Sinha said adding that the prices in the city have already risen by about 15% since the markets bottomed out earlier this year. The fresh demand in the housing sector has boosted the confidence of developers as well. Earlier this month, the city-based body of developers, GIHED (Gujarat Institute of Housing and Estate Developers) displayed about 500 projects worth Rs 3,000 crore at property show in Ahmedabad.

“As the economy recovers and grows on a pan-India basis, residential demand is expected to grow along side. C&W Research estimated demand to be over 7.5 million units by 2013 across all categories such as Economically Weaker Section, affordable mid segment and luxury segment. The residential demand for NCR, Mumbai, Bangalore, Pune, Chennai, Hyderabad and Kolkata is estimated to be 4.5 million units by 2013”, Ms Aditi Vijayakar added.

http://economictimes.indiatimes.com/articleshow/5064201.cms

Patna’s booming real estate business, prices close to prime metro locality

Patna, (BiharTimes):Recent boom in the real estate market of Patna have sprung a surprise to all as the prices of commercial as well as residential properties have seen  tremendous upward movement in the last couple of years. Patna was never known as prime destination for settlement of the people of other states largely due to lack of trade and industries in and around the city.

“ The real estate prices  have appreciated more than 100 percent in last three years. Now the prime location residential properties is priced around 3000 -3500 per sq. feet where as commercial space in malls varies from 6000 to 10000 per sq. feet” said Rakesh Kumar Singh a leading builder of the city.

‘But this sudden spurt can’t be seen in isolation as the real estate was almost stagnant for more than a decade in Patna” Singh added further.

The city would soon be blessed with at least thee big shopping malls in different areas and the price quoted for sale varies from Rs. 6200 to Rs. 10000 per square feet. depending on their location. These rates are equal to the rates of Barakhambha road and Karol Bag areas of central Delhi.

The first multiplexes constructed by the company owned by Prakash Jha would be ready with all modern amenities next year.This mall has a built up area of 2.25 lacs sq. ft. The controversy was raked regarding this prime plot priced at Rs. 14 lacs per acre by the Bihar Industrial Development Agency (BIADA). The land could have been given to any builder by asking him to give 50 percent share as prevalent in Patna. The state coffer could have easily got Rs.62 crores in just three years or at least Rs. 40 lacs per month as current market rent enough to support resource starved Patna Municipal Corporation. When any entrepreneur with some risk can make such a fast buck what prevented our govt. officers to market it as builders are developing lands in remote areas close to Danapur.

Govt. can utilize this boom to use some of its encroached and vacant land for developing as commercial space to give regular source of income to Patna Municipal Corporation (PMC) and any reputed national level builder might  be interested in taking these projects. Still the Maurya Lok is the only commercial area with some open space for parking and movements.

But the moot question is the sudden spurt in demand created an artificial rise in this sector. “Improvement in law and order, starting of a number of development projects has its immediate effect and people in Bihar largely invest their surplus in real estate. Even the corrupt officers too invest a large part of their income in real estate as it was evident in recent raids.  Many officers are  owning more than 6 to 8 flats in the city. This sudden rise have definitely dashed the hope of many middle class people to have their own flats in the city as now minimum cost for owning a flat is around 20 lacs” disclosed Nanhe Prasad,  the State Coordinator of the Builders Association.

It’s another matter that Rs. 24000 crores is piling in the banks of Patna according to recently disclosed a RBI (Reserve Bank of India) report which estimates it as more than it is in NOIDA, Navi Mumbai, Surat and many commercial and industrial cities of India.   . “When we can have a list of BPL (Below poverty Line) people, what prevents Income Tax and other govt. departments from detecting as to whose money is flooding  Patna” asked a CPIML activist Kamlesh Sharma.

Source : http://bihartimes.com/Newsbihar/2009/Sep/Newsbihar29Sep5.html

General Insurance Corp offers home loans under spl scheme at 7.95%

MUMBAI: The housing finance outfit of General Insurance Corporation of India (GIC) has introduced a limited period special scheme for the festival  season starting from October 1, for all new individual housing loans up to Rs 1-crore.

Priod of six months and thereafter reset to the then preree accidental death insurance cover and free property insurance cover would applicants.

The company has also introduced a unique life insurance com in tie-up with Kotak Mahindra Old Mutual Life Insurance Ltd., where a credi account holder against death due to any cause including accidental death.

ponse, the company said, adding that the borrower opting for this scheme can ale premium component from GICHFL.

In addition to the above scheme funched a loan scheme carrying interest at 8.95 per cent per annum fixed for year.

Source : http://economictimes.indiatimes.com/personal-finance/loan-centre/home-loans/home-loans-news/General-Insurance-Corp-offers-home-loans-under-spl-scheme-at-795/articleshow/5069200.cms

Bangalore Emerging as Most Preferred Real Estate Destination

Bangalore has emerged as a clear preference for sectors like office and retail, while coming a close third in the residential and hospitality according to Cushman & Wakefield, a retail estate research firm. In its report Cushman & Wakefield GRI India Real Estate Investment report 2009: ‘Survival to Revival – Indian realty sector on the path to recovery,’ the firm said that Bangalore is expected to see the highest demand for office space in the period 2009 – 2013 with approximately 34 million sq.ft.

The expected recovery in the IT/ITeS sector would have a positive effect on the demand in Bangalore, the preferred location for many IT/ ITeS companies. The demand for retail sector is also expected to be the highest in Bangalore with approximately 7 million sq. ft. while demand for residential is expected to be approximately 570,000 units over 2009 – 2013, with the highest compounded annual growth rate at 14 per cent. The hospitality sector in Bangalore too is forecast to register the highest compounded annual growth of about 26 per cent in demand, followed by NCR at 24 per cent and Pune at 23 per cent.

The city of Chennai is expected to witness the second highest demand for office space in India between 2009 to 2013 with a projected cumulative 27.2 million sq ft and the city also holds the fifth largest demand share for retail and hospitality space demand in India. Anurag Mathur, managing director, India, Cushman & Wakefield said that the office market in Chennai has seen a renewed interest from the corporate sector, post the economic crisis. While demand will be visibly affected this year, “We expect the five-year horizon (up to 2013) to be upbeat for the commercial markets in the city. The retail and hospitality segments are also likely to see considerable demand in the coming years.”

Chennai is likely to witness the second highest demand for office space after Bangalore of approximately 27.2 million sq.ft. by 2013. Good infrastructure, high quality construction and competitive pricing would be the key reasons for the location to see high demand from corporate sector. Hyderabad is expected to witness office demand of 16.6 million sq. ft. over a five year horizon and records the highest compounded annual growth of approximately 28 per cent during 2009 – 2013 in the office sector along with Pune and Kolkata. The residential demand for Hyderabad is expected to be 290,000 units with the highest compounded annual growth of 14 per cent in the next five years akin to Bangalore.

Mathur, further added that though the high growth trajectory of the previous years saw a setback during the global economic slowdown, the inherent strong economic fundamentals, low exposure to debt and state intervention, would help the sector to gradually return to the path of recovery and witness robust demand for real estate across sectors.

http://www.indianrealtynews.com/real-estate-india/bangalore/bangalore-emerging-as-most-preferred-real-estate-destination.html

Omaxe to launch four housing projects

NEW DELHI – With the housing market slowly picking up, realty major Omaxe Ltd is planning to launch four projects shortly, a top official said here Tuesday.

“We are planning to launch four projects in the next two to three months with an investment of about Rs.1,500 crore,” Rohtash Goel, chairman and managing director of Omaxe, told reporters on the sidelines an event here.

“The company is planning to raise about Rs.2,500 crore from these projects,” he said.

The projects will be launched in Faridabad, Indore, Allahabad and Chandigarh. The company has already acquired land for construction.

All these projects will be completed in 30-36 months, depending on clearances.

“Last year was really painful, but this year the demand is improving. Buyers are returning to the market and we are expecting good sales this Diwali,” Goel said.

http://blog.taragana.com/n/omaxe-to-launch-four-housing-projects-180596/

Realty boom in Pimpri, Rs49 cr for 10-acre plot

Mumbai: Land prices in Pimpri-Chinchwad may not match the rates prevailing in Mumbai or Pune. But at an auction that may signal a shift in the real-estate market there, a 10-acre plot where the defunct Hindustan Antibiotics Limited (HAL) stands has been sold for an astounding Rs49 crore.

HAL was the first public-sector pharmaceutical firm. Commissioned in 1955-’56, the Pimpri plant manufactured bulk drugs, mainly penicillin, streptomycin, and a number of other formulations.

Considering that land costs in this industrial town range between Rs6,000 and Rs8,000 per square metre, the cost of Rs12,051 per sq m paid by the Ellora Group from Navi Mumbai has set the realty market abuzz. This is the third time the factory was put on the block.

Though the factory is located strategically in the heart of Pimpri, real-estate analysts believe the price paid by the developer is too high. “The price does not make sense as it will not boost any major industries despite its proximity to Pune, which has been developed as an information technology and automobile hub,” an analyst said. “Further, there is a large supply of residential developments at significant incentives readily available in Pune. Why would anyone want to live so far away?”

But Ellora Group director Vijay Gajra said, “The government is developing Pimpri as an extension to Pune on the same lines it developed Navi Mumbai to Mumbai city. Land rates here are more reasonable than in Pune. Being the only large piece of clear land in the area, I can develop a residential complex here with good amenities.”

HAL company secretary AS Vaidya said, “We are not allowed to disclose anything to the press. But the bid took place on Tuesday according to the tender process.” Compared to existing flat rates of Rs2,500-Rs2,700 per sq ft, Gajra intends to sell flats at Rs3,000 a sq ft. The developer will get a developable space of six lakh square feet.

Three years ago, Gajra had acquired a three-acre plot to set up a multiplex and mall on Spine Road, at the junction of the Mumbai-Pune highway and Nashik-Pune highway. The recession brought the project to a halt.

At Lonavala, Gajra has tied up with Tata Housing to construct villas and premium apartments on a twenty-acre plot opposite the famous Fariyas resort.

http://www.dnaindia.com/mumbai/report_realty-boom-in-pimpri-rs49-cr-for-10-acre-plot_1293908

IREO to spend Rs 10,000 crore on Gurgaon Township Project

REO, a leading global investment fund dedicated to the Indian real estate sector, has revealed its plan to spend Rs 10,000 crore over the next 7 to 8 years, to develop an integrated township with about 20,000 flats in Gurgaon.

Sources reported that IREO has plans to launch 10 million sq ft of projects over the 12 months in the northern region of the country.

The company intends to construct about 20,000 residential units within the township, which include hotels, educational institutes, medical facilities and commercial spaces.

Today, the company has launched a residential complex — Grand Arch — inside the township.

The complex would house 842 apartments and penthouses, schedule to be completed by 2012.

Source:http://www.topnews.in/ireo-spend-rs-10000-crore-gurgaon-township-project-2218496

Builders use flexi model to sell homes

Bangalore: Real estate developers are learning the virtues of flexibility as they slow down large residential and commercial projects to assess consumer response and make adjustments accordingly, instead of trying to finish the work as quickly as they can, as was the norm during the real estate boom.

Reducing risk: An artist’s impression of an Indiabulls project in a tier II city. Analysts say that developers are experimenting with the affordable housing model after some projects garnered big sales in recent times.

Reducing risk: An artist’s impression of an Indiabulls project in a tier II city. Analysts say that developers are experimenting with the affordable housing model after some projects garnered big sales in recent times.
This is especially true of the affordable housing projects that have led the real estate revival after the high-end residential property market crashed because of the economic slowdown.

Tata Housing Development Co. Ltd is a case in point. Its low-cost Shubh Griha brand of homes at Rs3.9-6.7 lakh in Boisar, 60km from central Mumbai, was a sell-out, with only 45 units having no takers out of the 1,500 that were opened to buyers.

Buoyed by the response, four months after the launch in May, the developer is now launching more expensive homes in the 67-acre plot, out of which only 15 acres are devoted to low-cost housing. The new set of bigger Boisar apartments, still in the affordable bracket, is priced at Rs12.73-27 lakh. The developer also plans to throw in row houses, smaller offices and retail space in the area, but only at a later stage, when demand picks up.

Brotin Banerjee, managing director and chief executive of Tata Housing, however, puts it differently. “The idea behind this is to do a mixed-income product, so that we can bring different kinds of buyers. But we will launch only when we think it is the right time for a particular product,” Banerjee said in an interview to Mint earlier this month.

As real estate projects passed through a rough patch in the past few months with declining sales and growing delays, many developers had ended up changing project formats from luxury to affordable homes, or office spaces to homes, even after construction had begun.

Developers, with a clear focus on cash flow and quick sales, now want to build what they can sell and thereby cut risk.

Indiabulls Real Estate Ltd, the country’s third largest developer by market value, is planning to launch similar affordable housing projects in tier II cities such as Indore, Madurai, Hyderabad, Navi Mumbai, Vadodra and Ahmedabad at a price band of Rs2,500-3,500 per sq. ft to begin with. The rest of the project will be finalized in tune with demand. The parcels vary from 7 acres to 36 acres each, and are mostly near a city centre.

“What we build will depend on customer preference and on market cycles. If affordable sells well, we’ll do more of that or something else that will perform, depending on demand,” said Vipul Bansal, chief executive and joint managing director of Indiabulls Real Estate, which has targeted nearly 20 million sq. ft of such large developments, with a focus on budget housing.

Bansal stressed that developers can’t just build on their own, and need to react to the market cycle and changes.

Sanjay Puri, principal architect of Sanjay Puri Architects Pvt. Ltd, who has designed many large townships, said that the aim now is to launch partially, see how it fares, and then proceed with the rest of the project.

“Earlier, developers would typically have a uniform format catering to a certain segment of buyers unless it was a 100-acre township. But now, they are introducing different components to cater to customers with different needs,” said Puri.

Puri cited the example of a large township project on the outskirts of Mumbai where the builder started with the one and two BHK, or bedroom-hall-kitchen, format, at entry price points, and then gradually introduced more expensive homes.

Analysts say that affordable housing is still at a nascent stage in the country and developers are experimenting with the model after some projects garnered big sales in recent times. So, once the developers get a good response for affordable homes, they introduce more expensive homes in the same location.

“Developers are using affordable housing as a litmus test for buyers to come into a new project. Once they attain critical mass in a location, they will introduce other products at higher rates,” said Akshaya Kumar, chief executive of Parklane Property Advisors, a property consultancy.

Kumar elaborated that with commercial and retail business plans on the back burner, developers are banking on residential demand. However, they will slowly introduce the other components as and when the project gains momentum.

North India-focused developers such as Parsvnath Developers Ltd are keeping under-construction projects as flexible as possible. Parsvnath prepares a master plan to obtain at least 10 different approvals, after which it tweaks the project details to suit market demand.

“Builders should be able to introduce a new format or change the old one even if it was not included in the conceptual stage if we feel that it will work in favour of us,“ said Pradeep Jain, chairman of Parsvnath Developers.

Source:http://www.livemint.com/2009/09/27211107/Builders-use-flexi-model-to-se.html

Ireo Kicks Off Its First Integrated Development of 800 Acre at Gurgaon

Launches the landmark property “The Grand Arch – Luxury of Location” at Ireo City. Poised to launch 10 million Sq ft in next 12 months. Marks the beginning of its Pan India presence – wholly owned 3000 acre land bank for Residential Development, Commercial IT Parks & SEZ. Ireo city to host India’s first network of elevated walkways. Skywalk within the private township.

New Delhi, India, September 27, 2009 –(PR.com)– Ireo, the first and the largest Foreign Direct Investment (FDI) from a Private Equity fund dedicated to the Indian real estate sector and a fully integrated real estate development company, today announced the commencement of its first signature property – The Grand Arch in the Ireo City, Gurgaon. Ireo city is the first mega project of the company in North India, and the planned capital outlay for the development is Rs 10000 crores (Ten Thousand crores).

Spread over sprawling 500 acres, Ireo City, the integrated township will offer a unique mix of features such as an elevated walk way connecting the entire township, art centers, theatres etc. Ireo City development will also include schools, a hospital, parks, luxury hotels, shopping malls, service apartments and office complexes. Situated at the junction of Golf Course road with Sector 58, Gurgaon, ‘Ireo City’ is extremely well located and complements natural surrounding of the Aravali Hills. Ireo City will offer its residents immediate access to NH-8, Delhi Metro and fast exit routes to Delhi & NCR. The Grand Arch launched today will be a part of this well planned township.

The Grand Arch spread over 20 acres, is designed to be the Gurgaon’s new landmark residential complex. The Grand Arch redefines the ‘Next Level of living’ through the Multiplier Package – a unique combination of convenience, comfort and safety. The Grand Arch will host several unique features that are yet to be experienced by the Indian consumers, most important of these being the stunning architecture with apartments open on all 4 sides for all round natural sunlight and thorough ventilation, 10 foot high ceiling improving room aesthetics, two bedroom duplex apartment with double height ceiling over the lounge and dining area, double glazed windows and apartments equipped with VRV air conditioning offering the best of temperature controlled and energy efficiency.

On the occasion of the launch of Ireo City, Lalit Goyal, Vice Chairman & Managing Director, Ireo said, “The Grand Arch marks the launch of the Ireo City – the beginning of a new era in the Indian real estate sector with a planned launch of 10 million square feet area of its 3000 acres owned land in next twelve months across NCR, Haryana, Punjab, Tamil Nadu and Maharashtra. The unique facility of Ireo City – ‘Skywalk Network’ will integrate all developments within the township by providing safe and easy connectivity to the pedestrians.”

Speaking about The Grand Arch, Varun Khanna, Director, Ireo, said “The Grand Arch promises to achieve the next level of living. The large open spaces, abundant greenery and wide choice of apartments will redefine taste of its residents. The apartments at ‘The Grand Arch’ will not only excel in design and comfort features, but will be energy efficient and environment friendly homes in India. The VRV air conditioning will enhance the energy efficiency and waste water treatment plant will use membrane technology for water purification.”

The Grand Arch will have an iconic 22 stories The Arch – East & West wing, four towers up to 29 stories and four mid rise towers which will have duplex apartments. The Grand Arch will have a wide range of apartments, including duplex and pent houses offering stunning views of the Aravali Hills. The size of the apartments will be between 1375 sq.ft to 9897 sq.ft.

The Grand Arch will have total 842 apartments and penthouses.
The total saleable area of The Grand Arch is 1.68 million sq fts.
The project is likely to be completed by end of 2012.
Multiplying features of The Grand Arch

About Ireo
Ireo, is the first and the largest Private Equity Fund dedicated to the Indian real estate sector. The company has a pan India footprint of projects in prime locations across NCR, Haryana, Punjab, Tamil Nadu and Maharashtra under various stages of development and implementation.

Ireo has been present in India since 2004 and has evolved as a fully integrated real estate organization that is both the financer and developer of its projects.
Ireo’s team consists of internationally experienced and accomplished Indian and expatriate professionals from diverse backgrounds to lead initiatives and to deliver best in class products and services to our customers.

Ireo’s investor base consists of blue chips and globally renowned financial institutions.

Source:http://www.pr.com/press-release/181485

VATIKA GROUP OPENING A NEW WESTIN IN GURGAON IN MARCH 2010

Vatika Group today announced that it will open the Westin Hotel in Gurgaon by March 2010, seven months before the commencement of the Commonwealth Games in October 2010. The opening of the Westin Hotel will help to meet the hotel room needs for the mega event next year as the city is already facing an acute shortage of over 10,000 rooms.

The new Westin Hotel is strategically located at the emerging central business district of Gurgaon and will provide travelers easy access to key convention and commercial offices which have started to shift towards Gurgaon area due to lack of sufficient land for development of sizeable projects in New Delhi. The hotel will feature 311 rooms, five dining outlets, 17,500 square feet of meeting and function space, an approximately 16,000 square feet health and spa center, as well as retail outlets.

Mr. Gaurav Bhalla, Deputy Managing Director – Vatika Hospitality, said “We have kept our commitment of completing the Westin Hotel in Gurgaon before the commencement of the Commonwealth Games by announcing its opening in March 2010. Vatika has been diligent and focused to achieve and respond to the city’s increased need for lodging due to the upcoming Commonwealth Games in the City.”

The decision to venture into the hospitality business was merely an extension of group’s aim to transform all aspects of human Endeavour. Therefore we launched various brands of specialty restaurants namely the Fox, Coriander Leaf, 56 and Jing apart from the Westin tie up.

The Vatika Group has a portfolio of projects that span office spaces, retail, residential, hotels, resorts, specialty restaurants, and business centers. The group has 3 major township projects spread over total of approximately 1800 acres namely Vatika Infotech City in Jaipur, Vatika India Next in Gurgaon and Vatika City Central in Ambala.

The Group has also completed 90% of its first residential project called Vatika City in Gurgaon and houses 500 families. The group’s commercial projects are spread across Gurgaon and Jaipur. Gurgaon has 5 operational projects with clients like SAP, Starwood, HDFC, Xerox, Etisalat, Lenovo, Glaxo Smithkline, MSD pharma etc.

About Vatika:

The Vatika Group of companies, incorporated in 1986, has its business interests in Commercial and Residential Real Estate development, Business Centers, Farmland Development, Facilities Management, Shopping Malls, Hotels, Resorts and Restaurants. Today the Group has developed some of the finest projects in commercial real estate and hospitality and is renowned for its excellence in the real estate and hospitality business. For more information, please visit www.vatikagroup.com.

About Westin Hotels & Resorts:

Westin Hotels & Resorts, with more than 155 hotels and resorts in more than 31 countries and territories, is owned by Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT). Starwood Hotels & Resorts is one of the leading hotel and leisure companies in the world with approximately 850 properties in more than 95 countries and 145,000 employees at its owned and managed properties.. For more information, please visit www.starwoodhotels.com.

Source: http://www.business-standard.com/india/news/vatika-group-openingnew-westin-in-gurgaon-in-march-2010/371352/

Housing Ministry unveils Model Real Estate Regulation Act

No buildings or townships meant for sale, in the near future, can be undertaken without registering them with the Real Estate Regulatory Authority to be set up in each State. The Ministry of Housing and Urban Poverty Alleviation has published the draft Model Real Estate (Regulation of Development) Act to control and promote construction, sale, transfer and management of colonies, residential buildings, apartments and other similar properties through a regulatory authority.

This draft Act has been published for soliciting stake holders’ opinion and the Ministry expects the State governments to pass their respective Acts, based on this model Act, after it is finalised.

The Model Act makes it mandatory for all promoters to submit the details of the approved plans of projects along with a bank guarantee equivalent to five per cent of the estimated cost of the development to the regulatory authority. In addition, the promoter will also give an undertaking to complete the work in accordance with the conditions of registration. After verifying the authenticity of the approved plan, the title of the property and other relevant details, the authority will register the project. The details of the projects will be made public through the authority’s web site.

This registration will be valid for three years and has to be renewed after that.

When violations of rules, failure to provide essential services to the developed plots are noticed or complained about, the registration will be cancelled after due verification. The bank guarantee provided will be forfeited and the names of the promoters will be included in the defaulters list and published in the authority’s website. Failure to comply with the rules of the Act will attract imprisonment for a term which may extend to three years or a penalty which will be computed in terms of percentage cost of development.

The model Act also prevents the promoters from advertising the project before it is registered with the authority. If the information contained in the advertisement or the prospectus is found untrue and causes loss or damage to the buyer, the promoter will be asked to compensate for the loss.

The model act also provides for appeal and setting up of appellate tribunal.

Suggestions to improve the draft Act have to reach the Ministry (dir_hsg_mud@nic.in or us-housing.muepa@nic.in) by November 6, 2009.

Development up to 1,000 sq. m. exempted

Even as the draft model Real Estate (Regulation of Development) Act has laid out elaborate rules for development of colonies and construction of apartments, it has exempted development of land up to 1,000 square metres from mandatory registration with the proposed regulatory authority. According to the draft, “no such registration shall be required, when the area of land proposed to be developed into a colony does not exceed 1,000 square metres or the number of apartments proposed to be constructed does not exceed four”.

This exemption is seen as a move primarily to help land development for own-use. The draft has clearly elaborated the role, responsibility and obligations of promoters who undertake land development. It has made it mandatory for a promoter who develops a real estate project to make available for inspection all documents and information to any person who is intending to take a plot/building/apartment in the project.

It has also prohibited real estate promoters from soliciting buyers through ads or taking advance/deposits without first registering with the proposed regulatory authority. Any such ads post-registration with the regulatory authority should contain all details, including the cost payable. It also makes it mandatory for a promoter to record all details vis-À-vis the project for which registration has been obtained on the website of the regulator within 15 days from the date of receiving the password from the regulatory authority through a system of self-entry.

According to the draft, the proposed regulatory authority will have a chairperson and two members. They will have three-year tenure. It will have powers to call for information and conduct investigation, among others. It will help evolve consensus on structural safety norms, facilitate the establishment of a framework for speedy processing and grant of all relevant permissions and promote the rating of real estate projects. The draft also provides for setting up an appellate tribunal.

Source:http://beta.thehindu.com/news/national/article25023.ece

Ready for booster dose from NRIs

THE REAL estate market is slowly picking up in the holy city of Ajmer. With sentiments improving, investors as well as end users have started exploring options. Being a prominent centre of religious tourism, there is no dearth of investors from abroad. Property consultants have started getting queries from NRIs visiting the holy Dargah of Khwaja Moinuddin Chisti. Most of them want a 2-3 bedroom flat in the city so that whenever they come to pay homage at the dargah they can live comfortably. In the past few weeks, there has been some positive movement in realty space, said Blue Earth Consultant managing director Surendra Rajpurohit.
The impact of this trend is quite visible in posh localities like Vaishali Nagar and Civil Lines. Rates in these areas which were static for sometime have suddenly started witnessing some surge. A plot in Vaishali Nagar which was available at Rs 10,000 per square yard, now commands a rate of Rs 12,000 per sq yard. Similarly, a piece of land in Civil Lines which would cost Rs 9,000 per sq yard a few months back, can now fetch Rs 12000 per sq yard, says Rajeev Shikari, a property consultant.
With time, there has been a paradigm shift in preferences. Earlier there was a demand for independent houses. Now people are asking for apartments and society flats. People now prefer community living as it offers convenience, safety and common facilities. People, specially retired and nuclear families, are looking for flats, says Mr Rajpurohit. But the apartment culture is yet to take off. Not many real estate players are in the ring. Ansal Properties and Infrastructure is among the frontrunner , and is coming up with a 100-acre township Sushant City on NH-8 (connecting Jaipur to Ajmer). It will house a commercial mall Ansal Plaza, a three-screen multiplex, four different sizes of 790 residential plots, 1,200 independent houses and 225 flats. Flats are available in the range of Rs 7-15 lakh while an independent house can cost you Rs 7 lakh to Rs 60 lakh, depending on the size and construction, said Amit Bhardwaj of SM Real Estate. The affordable flats are in localities connecting Ajmer-Jaipur highway such as Jagwana , where the rates have come down from Rs 3,000 per sq yard to Rs 2,300 per sq yard. The rentals, however, are in the affordable limit as Ajmer doesnt have much of an expatriate population. A 3BHK in prime location is available on rent for Rs 5,000 while a 2BHK would cost Rs 2,500 a month, says Mr Rajpurohit.
The commercial space is also witnessing some movement. While brands and retail players are still waiting for the right time to hit the market , banks and insurance companies are going for expansion. The Ashiana Groups Oasis mall in Vaishali Nagar has provided ample commercial space in the city. Commercial rates in the city are still in the correction mode. A year ago, commercial rental rates touched Rs 50 per sqft in areas like Indian Motor Circle and areas adjoining bus stands. They have now come down to Rs 30 in the absence of takers. Its the banks and new entrant in telecom sector which are opening their offices, says Ramcharan Sindhi, a property consultant.

Spaces near the Dargah Market, Vaishali Nagar and Indian Motor Circle command premium while shops adjoining the railway station and bus stand have slightly lower rentals. A shop in Dargah market commands a rental of minimum Rs 35 per sqft while the selling price of these shops ranges from Rs 35,000-50 ,000 per sq yards, Mr Sindhi says.

Source:http://lite.epaper.timesofindia.com/getpage.aspx?edlabel=ETM&pubLabel=ET&pageid=9&mydateHid=27-09-2009

Right time to buy your dream house

Mumbai: Expect a hardening of interest rates and a spike in property prices soon. At least that is what banking circles and real estate players would like their prospective clients to believe.
Bank officials say the soft interest rate regime is set to end with rates likely to creep up in a couple of quarters. Real estate players say property prices have corrected and the demand has started picking up. Bankers and realtors also say the festive season is the most fascinating period for house hunters. That means, if you have been waiting to buy your dream house at the right price , probably this is the time for you to go for it.

Why so Clearly, we have seen customers coming back to the market in the last three months as they see value in deals. Also, everythingbe it economy, monsoon, or global issueshas started looking up. That gives people additional confidence, says Dharmesh Jain, MD, Nirmal Group. The pick-up in demand is vouched by other industry players, too. The demand is genuine. There is no evidence to prove that investors are getting into the market. It is regular home buyers who are in the market , says Harsh Roongta, CEO, Apnaloan.

If that is the case, then real estate players could be right. Prices are not likely to fall any further on the face of renewed demand. In fact, the opposite looks very likely . That, along with a spike in interest rates, could once again force many house hunters go on the back foot.

How far the scenario is likely First, most bankers say that though hardening of interest rate looks imminent, chances of a huge spike in lending rates is very remote. The central bank and the government will not like a higher interest rate regime immediately. They have to make sure that rates are kept at reasonable levels to boost economic growth, which is a top priority at the moment, says a senior banking official . According to him, housing loan rates wont go up over 50 basis points (100 bps = 1%) in the near future.
As for property prices, never the ones to lose an opportunity to make money, builders have already begun quoting slightly higher prices in most places, say analysts . Some builders have started quoting higher rates (up to Rs 500 extra per square feet) since the last month. Though many players believe this may drive away genuine customers, greedy elements are cashing in on the opportunity , says an analyst. Dharmesh Jain also says prices are firming up . Roongta says buyers would once again find it tough if the interest rate, as well as property prices, go up.
Genuine buyers would find it difficult to finance their purchase if prices started going to their previous levels or even anywhere near those levels. So, if you were looking for houses in the market, it may be the best time to buy, he says.

Also, one can make use of the new schemes offered by public sector banks, where the interest is fixed for first 2-3 years, he adds. The interest rate on these products are very competitive, he points out.
Take Your Pick

Demand for houses has already started picking up Revival in economy, monsoon have raised peoples confidence If demand remains, property prices may go up. Instead, some builders have started quoting higher rates (up to Rs 500 extra per square feet)

Source:http://lite.epaper.timesofindia.com/getpage.aspx?edlabel=TOIM&pubLabel=TOI&pageid=19&mydateHid=28-09-2009

Sarovar Hotels to have 60 properties in India by end of next year

With an aim to expand its hotel portfolio in the country, Sarovar Hotels plans to have 60 hotels by end of 2010. The hotel chain currently operates 36 properties across 29 destinations in the country. Plans are in the pipeline to open five properties by end of 2009.

Though the hotel chain has franchise rights to develop Carlson Hotels Worldwide’s Park Inn and Park Plaza brand in India, it is currently focusing on developing its own brands. “Of the 31 properties currently under development, we have nine properties branded as either Park Plaza or Park Inn. The rest will be under the Sarovar Premier, Portico or Hometel brands,” informed Anil Madhok, Managing Director, Sarovar Hotels Pvt. Ltd.

In the first three quarters of 2009, the chain launched 50-room Renaissance Sarovar Portico, Hosur (Bengaluru); 70-room Pak Inn, Jaipur; 50-room Park Inn, Gurgaon (Civil Lines) and 50-room Peerless Sarovar Portico, Port Blair. By March 2010, the hotel will launch 49-room Sarovar Portico in Ludhiana; 65-room Sarovar Premiere in Siliguri; 118-room Hometel in Chandigarh; 134-room Ole Sereni in Nairobi; 80-room Sarovar Premiere in Gurgaon; 90-room Park Plaza in Ahmedabad; 70-room Sarovar Portico in Faridabad; 60-room Park Inn in Shahdara (Delhi); and 85-room Hometel in Hari Nagar (Delhi).

Talking about the marketing strategy of the company, Ajay Bakaya, Executive Director, Sarovar Hotels Pvt. Ltd. informed “Our marketing strategy is hotel and brand specific. This is continuously evolving in view of the prevailing market conditions locally, across India, and globally. We will continue to design and adapt strategies to the changing requirements.”

Source:http://www.travelbizmonitor.com/sarovar-hotels-to-have-60-properties-in-india-by-end-of-next-year-8361

Tata’s launch another affordable housing project

Tata Housing Development Company, a real estate firm within the Tata group, announced an affordable housing project in Boisar near Mumbai, its second such project this year.

The new project would offer 1,300 apartments including 2 BHK and 3 BHK homes starting at Rs 12.73 lakhs per flat, with a minimum size of 670 sq.ft, said a Tata Housing statement.

The new project focuses on the affordable segment and offers facilities such as swimming pool and gymnasium. CEO Brotin Banerjee said: “Every house is set in a well-finished modern building with attractive green streetscapes and lush landscapes. New Haven will set up a pan-India presence across tier I and II cities in India.”

Source:http://mail.google.com/mail/?shva=1#inbox/123f41b466c74002

Residential property prices may go down: Knight Frank

Global property consultancy firm, Knight Frank India, said prices in the residential property segment are likely to decline in a short time. “We feel prices of residential segment may go down over a period of time,” Knight Frank India Chairman Pranay Vakil said.

“The residential segment may see a robust demand in certain markets,” he said, adding that it was also a good time for property developers to invest in land.

“Demand for real estate at this stage is a combination of investor-led demand and end-user demand. While investor demand is due to shift in money from equity markets, end-user demand is due to increased consumer confidence and pent-up unmet demand from the recession period. This leads to a rapid increase in demand for real estate and a corresponding increase in property prices,” he said.

“Today, property buyers are worried that prices may go down after they purchase property and projects may not be completed on time,” Vakil said.

Knight Frank launched a book titled Real Investment-a real estate investment guide for India. The book seeks to lend a helping hand by covering all the information that one may require while investing in real estate.

The book compiles the perspectives of real estate industry experts to help deepen knowledge about real estate and consider it as an asset class.

Commenting on the book launch, Vakil said, “as property advisors, we continuously work with some of the best minds in the sector. We felt the need for a single credible source of information, for which we brought together the best minds in the business”.

“This book makes the seemingly daunting task of delving into the real estate market simpler by offering tips on how to make real estate a lucrative investment option.”

Source:http://mail.google.com/mail/?shva=1#inbox/123f41b466c74002

Carlson enters Chennai with Rs 78-cr hotel

US-BASED international hospitality chain Carlson Hotels Worldwides Country Inns & Suites has made its entry into the Chennai market with a new hotel in Egmore.

The Rs 78-crore hotel, styled Country Inn & Suites by Carlson , has come up on the plot that housed the erstwhile Vaigai hotel (a 58-room hotel that was in operation for four decades) till a few months ago.

Spread over 9.5 grounds, the 11-storeyed new hotel has 96 rooms, 48 of which are currently operational. Country Inns & Suites by Carlson, Chennai, director Jayakanth K said the chain was waiting for the market to pick up before opening up all rooms for reservations . The hotel has two functional restaurants and a banquet hall and is in the process of setting up a swimming pool and a bar. The Chennai hotel is owned and managed by NKK Hotels, promoters of the Vaigai hotel, while Country Inns & Suites is responsible for branding and marketing. NKK Hotels was one of the shareholders of the Radisson Hotel in the city along with Macnur Hospitality India (in which the MA Chidambaram group had majority shareholding). Radisson was later acquired by the GRT Group.

NKK Hotels owns another hospitality property, Vaigai Inn, in Kodaikanal, which has been leased. The Kodaikanal market is in a bad shape. We will look at refurbishing that project too in a year, Mr Jayakanth said. The Chennai property is targeted at business travellers. The soft launch of the hotel took place last month and it is slated to get the threestar certification next month.

Balaji Resorts put up for sale

THE 160-room three-star Balaji Resorts in Sriperumbudur is up for sale. Spread over 60 grounds, the resort has a built up area of 1,40,000 sq ft and the hotelier is looking to dispose off the property for Rs 96 crore. An industry source though says the price is high for the eight-yearold property that is a km away from the national highway.

Source:http://lite.epaper.timesofindia.com/getpage.aspx?edlabel=ETBG&pubLabel=ET&pageid=4&mydateHid=26-09-2009

Buying home to get safer

New Delhi: The aam aadmi looking to own a home might soon be able to breathe easier, thanks to a bill mooted by the housing ministry, a draft of which has been circulated to all stakeholders. The bill requires developers to post project details, including civic clearances, on the real estate regulators website.
The model Real Estate (Regulation of Development) Bill has been long awaited and states are expected to legislate in keeping with the provisions of the proposed law. They will also set up regulators to give effect to the bill which recommends a three-year jail term or penalty which may amount to a percentage of project cost for failure to register.
The law to regulate real estate developers will call on builders to provide details of the number and size of plots, layout plan, carpet area and plinth area of flats, apartments or any other housing complexes.
Importantly, it will prevent builders from changing the plans or inserting charges as the sale agreement will be considered binding. They will also post authorised brokers and dealers.
The legislation seeks to prevent advance payments being extracted from buyers without a written sale agreement containing project timeline , payment details and possession date. The promoter will not be able to cancel the sale deed unilaterally. If there is sufficient reason to do so, a notice will have to be given and the money paid will be returned with interest fixed to bank rate. The promoters would furnish a bank guarantee equal to 5% of estimated cost of projects.

Providing A Solid Foundation

Builders will have to register with regulator and provide details of number and size of plots, layout plan and other facilities before launching any project They will not be able to take any advance payment from buyer without written sale agreement mentioning project timeline, payment details and possession date Promoter cant cancel sale deed unilaterally. Will have to give notice and provide entire amount with interest Buyers will have to be clearly told the carpet area, super area, common area and other specifications of apartments by the promoter If developers fail to provide services like supply of electricty, water, sewerage and drainage, consumers can approach the regulator for relief

Source:http://lite.epaper.timesofindia.com/getpage.aspx?edlabel=CAP&pubLabel=TOI&pageid=3&mydateHid=26-09-2009

Residential property prices may go down: Knight Frank India

MUMBAI: Global property consultancy firm, Knight Frank India, on Thursday said prices in the residential property segment are likely to decline in a  short time. “We feel prices of residential segment may go down over a period of time,” Knight Frank India Chairman Pranay Vakil told reporters here today.

The residential segment may see a robust demand in certain markets, he said, adding that it was also a good time for property developers to invest in land.

Demand for real estate at this stage is a combination of investor-led demand and end-user demand. While investor demand is due to shift in money from equity markets, end-user demand is due to increased consumer confidence and pent-up unmet demand from the recession period. This leads to a rapid increase in demand for real estate and a corresponding increase in property prices, he said.

Today, property buyers are worried that prices may go down after they purchase property and projects may not be completed on time, Vakil said.

Knight Frank today launched a book titled Real Investment-a real estate investment guide for India. The book seeks to lend a helping hand by covering all the information that one may require while investing in real estate.

The book compiles the perspectives of real estate industry experts to help deepen knowledge about real estate and consider it as an asset class.

Commenting on the book launch, Vakil said, as property advisors, we continuously work with some of the best minds in the sector. We felt the need for a single credible source of information, for which we brought together the best minds in the business.

This book makes the seemingly daunting task of delving into the real estate market simpler by offering tips on how to make real estate a lucrative investment option.”

Source : http://economictimes.indiatimes.com/markets/real-estate/realty-trends/Residential-property-prices-may-go-down-Knight-Frank-India/articleshow/5052294.cms

Greater transparency for home loan seekers

The Banking codes and Standards board of India (BCSBI) has asked its member banks to justify their lending policies and other services thus ensuring more transparency in the way banks price their home loans.

BCSBI was formed by RBI in November 2003, under the chairmanship of the then deputy governor, S.S. Tarapore, to address issues concerning availability of adequate banking services to common man.

According to the directions by the BCSBI, the banks will have to inform the customers, who avail home loans at floating rates, of the reference rate to which the floating rate is attached.

KJ Udeshi, chairperson of the BCSBI, said that the banks would have to disclose changes in such reference rates on their websites.

These codes will be applicable to all major commercial banks in India. Banks have been asked by RBI to voluntarily accept the codes, which entails the banks to justify their pricing mechanisms. They will have to abide by the publicly announced policies, failing which the Board could intervene and ensure that the banks comply with the announced policies.

RBI’s deputy governor, KC Chakrabarty said that as a regulator, they had the onus of the customers. He added that the new norms will aid the vulnerable sections of the society as they do not have any another platform for redressal.

The new code urges the banks to explain Income Tax Act provisions applicable to interest income. Bank will have to dispose off customer complaints within 30 days. Besides this, banks will have to come out with the most important terms and conditions (MITC) for credit cards and loans that are concise and comprehensive.

Customers can now check with the banks’ websites for policies relating to cheque collection, compensation, collection of dues and grievance redressal.

BCSBI, in association with Reserve Bank and Indian Banks’ Association (IBA), had first issued the code in 2006.

In order to enhance the credit delivery mechanism in the industry, BCSBI plans to set up a credit counselling centre in Mumbai from next month.

The service will be free of cost for member banks’ customers.

Source : http://www.rupeetimes.com/news/home_loans/greater_transparency_for_home_loan_seekers_2789.html

Maharashtra housing agency for partnering private developers

With little available land for ready development; the Maharashtra Housing & Area Development Authority (Mhada) is scouting for partnerships with private developers. Mhada has invited expression of interest (EoI) from realtors, if they would be interested in sharing their land for development of houses for economically weaker sections (EWS) and the lower income group (LIG).

Mhada presently has only Mumbai and Nashik cities in mind. If it takes off here, the thinking is to extend this to Pune and Aurangabad, and then elsewhere, if a common formula could be arrived at.

The government agency has only 25 acres readily available for development. “Other land parcels are either encroached or the government has not completed the transfer procedure,” said a Mhada official. The dearth is forcing it to look at the public-private partnership (PPP) model.

Builders who would join the state development authority will be rewarded in two ways. They will get money for construction and would also be able to develop more houses on the land parcel. This is possible since Mhada gets a floor space index (FSI, the ratio of permissible build-up area to the size of the land lot) of 2.5. Private developers, on the other hand, are allowed an FSI of only 1 (with some exceptions, in parts of Mumbai). They need to buy transfer of development rights (TDR), if they want to develop more than the permissible limit. A developer generates a TDR by giving his land for public use such as widening of a road or slum rehabilitation. He may sell such rights in the market to another developer. Even after using TDR, developers may only construct up to an FSI of only 2 in Mumbai.

Mhada’s model will work like this. Assume a developer has a 10,000 sq mt (or 2.47 acres) plot. Legally, he may build only up to 10,000 sq mt of living space. If Mhada comes into the picture, he gets to develop housing space of 25,000 sq mt. Of this, Mhada will take between 6,250 sq mt and 10,000 sq mt, depending on the scheme. The realtor will get the rest. Mhada will also pay the developer the cost of construction. In this case, the builder gets 5,000-8,750 sq mt extra. Mhada is also looking at making use of the subsidy the government provides if 40 per cent of the project is used for housing EWS and LIG. The subsidy is between Rs 60,000 and Rs 1 lakh for each flat so built, depending on the house size.

Sources at Mhada said two developers have shown an interest on properties in Mumbai at Kandivli and Sewri. But nothing is yet finalised. “There are a lot of inhibitions that realtors have,” said a Mhada source.

Developers are worried that the rates at which Mhada will sell the flat can impact prices of their flats. Pranay Vakil, chairman, Knight Frank agrees. “The prices can dampen around 10-15 per cent. But the extra FSI should compensate it,” said Vakil.

But he also cautioned that this project can be affected if builders are allowed extra FSI. The earlier, Vilasrao Deshmukh government had raised FSI in the city’s suburbs to 1.33 from 1. Before it could be implemented a public interest suit was filed against this. If the court rules in favour of the government, builders will get FSI up to 2.66 in the suburbs if they would use TDR. Mohan Deshmukh, president of the Maharashtra Chambers of Housing Industry (MCHI), a builders’ association, feels this partnership is only feasible if the land is outside Mumbai city’s municipal limits. “Within the city limits, developers can make more money if they construct and sell the house on their own,” said Deshmukh.

He added that most developers showing interest have a land bank in the distant suburbs of Vasai-Virar or Kalyan and beyond.

“Many developers have land in these regions that have been acquired many years back at a pittance. The current property prices there are affordable for this kind of development,” Deshmukh said.

Source : http://www.business-standard.com/india/news/maharashtra-housing-agency-for-partnering-private-developers/371080/

‘Nano flats’ offer India’s poor a way out of the slums

A new building boom is set to give rise to a slew of ultra-cheap apartments and a fresh incarnation of sub-prime lending

Om Prakash, a tailor and a thirdgeneration resident of Dharavi, India’s largest slum, has a steady job and some savings, but he cannot imagine setting foot on the property ladder.

Built on a man-made island, his home city of Mumbai is desperately overcrowded. More than half its 18 million inhabitants live in shantytowns, many, like Mr Prakash, paying significant rents for the privilege. The slum landlords know that their tenants have little scope for negotiation: a 70 sq m flat near the centre of town costs upwards of £300,000.

“We ask God to help,” said Mr Prakash, who earns about 7,500 rupees (£94) a month, “but in this city I don’t think good property is within the grasp of ordinary men.”

A change in strategy by India’s property developers could answer Mr Prakash’s prayers, along with those of millions of other tailors, drivers, maids, teachers and tea stall owners who long for a place of their own. The developers’ plans hinge on two elements: a new building boom that is set to give rise to a slew of ultra-cheap apartments, and a fresh incarnation of sub-prime mortgage lending.

global credit crisis, house prices collapsed by as much as 50 per cent in some Indian cities. Worst hit was the market for luxury homes, previously the focus for most residential builders. Left with large numbers of pricey apartments unsold, property companies are moving to broaden their buyer base by building super-low-cost homes for India’s working poor.

The most prominent company in this fast-expanding budget market is Tata, the conglomerate that makes the £1,200 Nano, the world’s cheapest car. It is building 1,500 über-basic flats at Boisar, on the northern fringe of Mumbai. The cheapest are priced at 390,000 rupees (£4,900) — within the reach of Mr Prakash’s family.

Other companies are setting the price bar even lower. East of Mumbai, Matheran Realty is building 15,000 flats, starting at 210,000 rupees (£2,625). Costs are being kept low by building far from the city centre, where land prices can rival those in Central London or Manhattan.

Tata’s “nano flats” are also limited to three stories, to avoid expensive structural work, while the use of lightweight precast blocks means that the buildings go up quickly.

Indeed, no stone has been unturned in the mission to slash costs: spending on publicity, which usually accounts for 5 per cent of the top line on a residential development, was cut to 1.5 per cent. Even so, such was the hype around the new “nano flats”, the project was five-times oversubscribed in a matter of days.

Those buyers lucky enough to be chosen through a lottery will get what they pay for: measured by “carpeted area”, Tata’s smallest homes are only 218 sq ft, about a third of the size of a squash court. The most basic are one room, with a sink in the corner and a toilet behind a partition. Still, they will beat most slum dwellings: in Dharavi, India’s largest shantytown, there is a stall of six lavatories that serves 16,000 people.

According to Brotin Banerjee, the Tata Housing managing director, providing safe, cheap homes fits well with the group’s history of philanthropy. McKinsey, the consultancy, estimates that India needs 25 million new homes. “The Government is not going to be able to provide them by itself,” Mr Banerjee said.

He also believes that targeting the working poor makes commercial sense. According to Monitor Group, another consultancy, India has 180 million households earning between 90,000 and 200,000 rupees a year, precisely the income levels that Mr Banerjee is catering for. Many in this bracket — including Mr Prakash — had been barred from buying property by the impossibility of accessing credit. To tackle that problem, Tata has teamed up with a microfinance institution that will advance loans without requiring reams of documentation. Other state-backed lenders have been ordered to extend cheap credit to low-income homebuyers by India’s central bank.

With the sub-prime credit flowing, Mr Banerjee sees his little homes as a source of big profits. “There is massive pent-up demand,” he said. “These people are poor, but that doesn’t mean they don’t have aspirations.”

Source : http://business.timesonline.co.uk/tol/business/industry_sectors/construction_and_property/article6846571.ece

ST Laurn to open four 5-star hotels in Gujarat

Ahmedabad: Pune-based hospitality group, ST Laurn Hotel & Resort (SLHR) is all set to open five-star hotels in the Gujarat by investing Rs 500 crore in the next three years. The move is a part of the groups Rs 3,000-crore investment plans for pan-India presence , especially in tier-II and tier-III cities Lakshman Kariyaa, managing director of SLHR said that of already one five-star hotel has been commissioned in Ahmedabad on Ashram Road and one more green field project is in the pipeline on growing Sarkhej-Gandhinagar Road. We have identified a location near Sagrampura area on Surats Ring Road. Survey is on in Vadodara as after completion of Surat project, we want to establish our presence in the Banyan city. As far as Saurashtra is concerned, there would be a group hotel in either Rajkot or Jamangar as it is still at the survey level, said Kariyaa.

He said that the group has presence in Maharashtra and Gujarat, but there are plans to open 20 new hotels by 2015 across the country in states like Rajasthan, Karnataka, Andhra Pradesh, Chandigarh among other. The upcoming five-star resort in Shirdi, which will be based on a spiritual theme, will cost Rs 82 crore and would be commissioned in June 2010, he added.

Sourcehttp://lite.epaper.timesofindia.com/getpage.aspx?edlabel=TOIA&pubLabel=TOI&pageid=13&mydateHid=24-09-2009

New ITC hotel blends garden and hospitality

Bangalore: ITC is all set to open the doors of its second luxury 5-star property in Bangalore . Situated at No. 1 Residency Road with an over arching view of the centuryold Bangalore Club, ITC Royal Gardenia is a 300 room, 11-storey high hotel.

A unique feature of the property, keeping in tune with Bangalores image of being a Garden City, is a lobby area that is adorned with vertical hanging gardens.

This opens out into a Lotus Pavilion in the central courtyard , reminiscent of Tipu Sultans Palace at Srirangapatna. The hotels Vertical Gardens are built on steel structures and irrigated by a drip irrigation system.

The water drips evenly and provides moisture to every plant along the entire length. It collects at the base and is recycled for use.
The entire vertical garden area has around 25,000 plants. It reaches up to the 12th floor.

According to Nakul Anand, chief executive, ITC Hotels Division , An eco responsible ethos is an inherent part of our system and in creating ITC Royal Gardenia, the challenge was to see how luxury and responsibility could be in harmony . Bangalore has always been Indias ultimate garden city and in our own small way, we hope to be able to give back to the city what time took away. The groups internationally feted Kaya Kalp Spa brand is part of the property, and so is ITCs other fine dining restaurant brands.

http://lite.epaper.timesofindia.com/getpage.aspx?edlabel=TOIBG&pubLabel=TOI&pageid=17&mydateHid=24-09-2009

Citys affordability index soars

Bangalore: Is it actual demand or pent up demand or just plain affordability Call it what you may, theres literally a slugfest now in the affordable housing market, homes priced between Rs 12 lakh and Rs 30 lakh.

The big daddy of the Indian real estate market, DLF, is looking to enter the affordable home market and Bangalore could well be its launch pad.

According to sources in the know, DLF is looking to attract buyers with annual household incomes of Rs 3 lakh to Rs 5 lakh per annum. This income group would be able to afford homes that cost between Rs 9 lakh and Rs 15 lakh, said a source. The company is said to be initiating a national market survey to find out what exactly buyers are looking for in an affordable home.
Since Bangalore is seeing a lot of action in the affordable housing space as compared to other metro markets, DLF would look at a roll out in Bangalore first, said a source. A point that can be corroborated by the number developers in the city who have launched projects in the Rs 12 lakh to Rs 30 lakh bracket.

In the last seven months, Puravankara, Confident, Mantri, CSC, Ozone, Nitesh Estates and Shriram Properties have all launched such homes. P Dayananda Pais Century Group has just announced its foray into this segment. The company launched Century Indus, located in Rajarajeshwari Nagar, comprising of 2 BHK (850 sqft to 950 sqft) and 3 BHK (1,120 sqft to 1,135 sqft) apartments in the price range of Rs 22 lakh to 30 lakh.

The Prestige Group is believed to be looking at launching homes in the Rs 25 lakh to Rs 40 lakh price band in Electronics City. Brigade Group has already spelt out plans of foraying into the affordable space early next year. Silverline Group too is looking at unlocking its land bank by developing affordable homes.

According to Cushman & Wakefield India, demand for housing in Bangalore is likely to be about 570,000 units over the period 2009-2013 , with a compounded annual growth rate of 14%. The affordable and mid segment housing category are likely to be the primary focus of most developers , says Anurag Mathur, MD of the real estate consultancy firm.

Source:http://lite.epaper.timesofindia.com/getpage.aspx?edlabel=TOIBG&pubLabel=TOI&pageid=17&mydateHid=24-09-2009

Pune Based Vascon Plans Rs 25 Crore Residential Project in Nashik

Pune-based Vascon Engineers is planning to commence Phase 2 of ‘Vista’, its residential project, at Indiranagar in Nashik, with Rs 25 crore investment. Besides, the company has just opened its first IT Park in Nashik, with a built-up area of 3.5 lakh sq ft.

“We are planning to commence the 2nd phase of our residential project ‘Vista’ near its IT Park in Nashik. In the 2nd phase, we will build 4 buildings on 2.5 acres of land with total built-up area of 2 lakh sq ft. These four buildings will have total 120 flats in both 2BHK & 3BHK categories, with a built-up area ranging from 900 sq ft to 1400 sq ft,” said R Vasudevan, managing director, Vascon Engineers, at a press conference.

The 1st phase of Vista includes around 120 flats on 3 acres. Out of 120 flats, around 80 per cent of flats have been sold out so far. The group has invested Rs 40 crore in its IT Park called‘V-Tech’. The company has created two buildings, spread on 7 acre plot with a total built-up area of 4.5 lakh sq ft. The BPO major WNS has already occupied built-up area of 55,000 sq ft in IT Park. “The way we are getting response, we are confident that these two buildings of IT Park will be fully occupied in a year’s time. We expect to commence the construction of third building within the next 3 to 6 months,” said Vasudevan.

“Two very good IT companies are looking at Nashik to commence their back office operations from Nashik and they are in talks with us to occupy office in our IT Park in Nashik,” Vasudevan said, without divulging further details.

http://www.indianrealtynews.com/real-estate-india/pune/pune-based-vascon-plans-rs-25-crore-residential-project-in-nashik.html

Uttarakhand Developers Confident of Real Estate Revival During festival season

The heavy slump in the construction business since early 2008 may have failed to recover fully. But builders in Uttarakhand said the market sentiments were likely to improve and spur demand in the festival season. They are now focusing more on residential business since there is hardly any improvement in the commercial space. With interest rate cuts by leading banks failing to boost real estate business in the hill state, which has taken a beating in the wake of the global recession and severe liquidity crunch, top banks like State Bank of India (SBI) and ICICI have already launched campaigns to cash in on the festival season.

“We are absolutely positive on the festival season,” said Maheep Kumar, DGM, SBI Dehra Dun, after launching the festival scheme ‘your dream home with SBI loan’. Experts in the business said that new investments were not pouring in the hill state as far as the real estate business was concerned. Only selected players have mustered courage to start new residential ventures in Dehra Dun. Commercial activities like five-star hotels continue to languish as a series of such projects are still hanging fire. Prior to the recession, new amendments in land laws, high stamp duty and circle rates brought by the former B C Khanduri government had virtually put a dampener on the property business in the hill state.

According to official estimates, there has been 27-30 per cent fall in the revenue from stamp duty and registries. In 2006-07, the revenue had jumped to Rs 342 crore but last year it fell to Rs 231 crore. This year also, there is hardly any recovery. Due to the slowdown, property rates fell by 5-10 per cent. Despite this, there are no buyers in the market. Virtually, people are keeping their fingers crossed with the hope that there would be a sharp fall in the property rates. The slump began last year when the Bharatiya Janata Party (BJP) government brought amendment in land laws that restricted outsiders from buying more than 250 sq mt of land. The move brought the thriving real estate business to a near halt.

Besides the tough land laws, the government also sharply increased stamp duty and circle rates that adversely affected the property business. But last year, the government implemented the master plan of Dehra Dun and had cut 1 per cent in stamp duty rates in its bid to boost real estate business in the state. But the move failed to improve the situation. Again this year, new Chief Minister Ramesh Pokhriyal Nishank reduced the stamp duty on agreement to 4 per cent in order to spur growth and announced other sops that would boost the real estate business.

Source : http://www.indianrealtynews.com/real-estate-india/uttarakhand-developers-confident-of-real-estate-revival-during-festival-season.html

NCR Developers Expecting High Sales during Navratri

After a lull of almost six months, real estate developers are once again launching residential projects aggressively to cash on the Navratri festival, considered auspicious for property buying. The festival of Navratri comes after the Shraadh period, considered inauspicious in the Hindu religious calendar, when property buyers do not book houses. The interest from developers was so much that over a dozen residential projects by companies such as Parsvnath, BPTP and Emaar MGF were launched in the National Capital Region in the past week. DLF, the country’s largest developer, is launching the second phase of its Capital Greens in West Delhi on Tuesday. DLF sold 1,356 apartments under its first phase of the project in a single day in April this year, due to competitive pricing.

Emaar MGF, a Delhi-based developer, launched Emerald Floors Premier on Monday after it sold off Emerald Floors and Emerald Estate in the Emerald Hills integrated gated community project in Gurgaon. The same company launched plots and villa floors at Jaipur Greens on September 19, where it has sold 120 plots so far, while Parsvnath Developers also launched Parsvnath City at Saharanpur in UP last Sunday. According to property consultants, this year the new launches were double the number of last year’s Navratri launches, when the property market was in a bad shape. Home sales had fallen by over 50 per cent from the beginning of the year, and developers were offering freebies and discounts to sell their existing projects.

Though on a lower scale, Mumbai also witnessed a couple of launches of luxury projects in South Central Mumbai by companies such as Indiabulls Real Estate and Orbit Corporation last week. “Every day, we are seeing one or two launches and every developer is launching projects. Last year, most of them were selling old products due to the downturn. This year, we have a seen a slew of new projects during Navratri,”said Raminder Grover, chief executive of Homebay Residential, a unit of property consultancy Jones Lang LaSalle Meghraj. Consultants say the increased activity in home sales is giving confidence to developers to launch new projects. Residential prices have gone up by 15 to 20 per cent in the past six months or so, as developers sold projects which were aggressively priced and marketed.

“The last few months were indeed good for the residential market. There is an increased activity due to good launches and better pricing by developers,’’ says Anshuman Magazine, chairman and managing director of CB Richard Ellis, South Asia. Grover says that unlike last Navratri, developers are not giving any freebies and discounts, as they were confident of selling their products without any added attraction. Magazine adds that developers are selling homes with better amenities and designs to prospective buyers. “Though developers are marketing their products aggressively, buyers have a high level of awareness on the available projects. It is certainly a buyers’ market now,’’ said Magazine.

Source : http://www.indianrealtynews.com/real-estate-developers/ncr-developers-expecting-high-sales-during-navratri.html

Below-market price attraction in Delhi, Mumbai home market

DLF, the country’s largest property developer, sold all the 1,250 apartments on offer in the second phase of its Capital Greens project near the Moti Nagar area of Shivaji Marg (Najafgarh Road) in West Delhi, within two hours of launching the booking on Tuesday evening.

While the prices were lower than the market, the lowest effective price was 39 per cent higher than the lowest price it had charged during the first phase of the project this April. At the time, DLF had sold all 1,356 apartments on offer under the first phase in a single day; a prime factor was that their lowest effective price was 32 per cent lower than the market price. This time, claimed a company spokesman, it was more than 25 per cent lower than the market one.

Apartment prices are upwards of Rs 6,000 a sq ft in the area. In the second phase, the company charged Rs 6,750, Rs 7,500 and Rs 8,000 a sq ft, respectively, for the apartments, which ranged from 1,210 to 2,720 sq ft each. There was a discount of Rs 500 a sq ft for timely payment and a 8.5 per cent discount on down payment. Hence, the effective selling price, which includes both discounts, is about Rs 5,677, Rs 6,363 and Rs 6,820 a sq ft, respectively. The company additionally charged for parking and for those wanting a preferred location.

A spokesman said the increased charges were due to the better location of the second phase, with a 90 per cent view of greenery and inclusion of four-bedroom apartments, which did not exist in the first phase.

“If buyers lap up the properties with increased prices so quickly, it shows there is a still an appetite in them to absorb that franchise,’’ said Anuj Puri, chairman of property consultancy Jones Lang LaSalle Meghraj (JLLM).

However, Puri said if speculators had participated in the project, then it is bad for the property market, as they could go in for arbitrage later. However, the company spokesman said it had imposed a restriction of one apartment per PAN card holder and a lock-in period of one year within which the buyers cannot sell the apartments.

“We are committed to give value for money for our buyers and rates are still 25 to 30 per cent lower than the prevailing market prices,’’ the spokesman said.

Unitech’s Mumbai launch
In a first of sorts in the Mumbai property market, Unitech, the country’s second largest developer, is planning to launch a new residential project in the Worli area of south-central Mumbai, which is expected to be 35 per cent lesser than prevailing prices in the area, sources in the company said.

But the catch is that the buyer of the apartments should pay 75 per cent of the apartment cost in one go, as against the construction-linked payment plans prevailing in the real estate market, wherein the buyer pays some money as booking amount and the rest in installments linked to each stage of completion.

‘’But the project is in its very initial stages and is expected to be launched in a year’s time,’’ sources said. The company is also expected to return buyers the entire amount with 12 per cent interest if it is unable to finish within a year from the launch.

Ashok Kumar, managing director of Cresa Partners, a realty consultancy, said: “It will certainly put pressure in the south-central Mumbai market, where a number of new projects are coming up, resulting in oversupply.’’

Source : http://www.business-standard.com/india/news/below-market-price-attraction-in-delhi-mumbai-home-market/370986/

Shivom takes referral route for new project

Mumbai-based developer Shivom Group has announced the launch of Shiv Aum Gardens, the first ever ‘by reference’ project at Karjat. The integrated township project comprises of 600 apartments with prices ranging from Rs 9 lakhs (1BHK) to Rs 12 lakhs (2BHK).
Potential customers using the ‘by reference’ approach from existing Shivom customers will be given preference and would earn several benefits like free stamp duty, free modular kitchen or free lifetime club membership. The referrers also get an opportunity to win an appreciation token from Shivom Group.

Announcing the launch, the company’s MD, Amardeep Gambhir said, “The shift in the real estate sector today is clearly towards ‘Affordable Housing’, our attempt is to deliver homes with spacious interiors and best in class amenities at an affordable rate. With our customized affordable housing projects, our attempt will be to offer homes primarily to those who have a limited budget and seeking quality lifestyle of Mumbai in Karjat”.

The integrated township offers apartments ranging between 500-850 sq.ft, complimented with lifestyle amenities such as a swimming pool, club house and recreational area. The plan also includes having commercial establishments at the township in the future.

Source:http://www.constructionweekonline.in/article-5521-shivom_takes_referral_route_for_new_project/

DLF sells 1,250 west Delhi apartments in just two hours

DLF, the countrys largest property firm, on Tuesday said it sold off the entire block of 1,250 apartments in the second phase of its Capital Greens project in west Delhi in just two hours of the launch on huge demand.

DLF MD TC Goyal credited the companys network of 400 brokers for the success. But for them (brokers), we would not have seen this kind of success. These brokers were working for almost one-and-a-half-months on behalf of DLF to convince homebuyers and investors for putting in money in the project.

It is usual for realty companies in the national capital to work through brokers, who prepare the ground for new launches. In many cases, it is only after the brokers have arranged enough buyers that developers launch projects to claim record successes.
In April also, DLF claimed that it was able to sell 1,350 apartments in the first phase of the Capital Greens project in just a day.

Similarly, infrastructure major Jaiprakash Associates had claimed over two months ago that it had sold over 3,000 apartments for its project Aman in Noida in just a day.

Mr Goyal said Capital Greens has all the right ingredients of a successful project. The location, product, price and developers reputation alls right for the project, which is what led to its success, he said.

The minimum price was Rs 68 lakh for a 1,200 sq ft apartment in the project at a rate of Rs 5,677 a sq ft, a 25% premium to the first phase, when prices were Rs 4,500 a sq ft. These are basic prices that include all discounts , but does not include additional charges for parking or preferred location of apartment.

Source:http://lite.epaper.timesofindia.com/getpage.aspx?pageid=4&pagesize=&edid=&edlabel=ETKM&mydateHid=23-09-2009&pubname=&edname=&publabel=ET

Home loan takers to benefit with sub-PLR rates set to go

PEOPLE who borrow money from banks to buy homes at floating rates of interest are set to benefit as banks are expected to change the way they price such loans. The Reserve Bank of India (RBI) is preparing to ban lending below the prime lending rate (PLR), the benchmark rate for all floating rate bank loans.

Sub-PLR lending came into existence a decade ago after banks obtained permission from the central bank to lend below the benchmark rate. RBI had accepted the argument by bankers that by not lending below PLR they were losing customers to mutual funds and other lenders who were willing to invest in their short-term debt at rates below PLR.

But it has been increasingly felt that the existing practice of pricing loans is not transparent and does not effectively transmit changes in policy interest rates across the banking system. This led to RBI constituting a committee under executive director Deepak Mohanty to review the PLR practice. Currently, 75% of loans by banks are at sub-PLR rates.

However, it is unlikely that RBI will put a comprehensive ban on such loans. People privy to the proposed development said banks may be allowed to quote sub-PLR rates only on short-term , or on loans below one year.

If RBI bans sub-PLR rates on all loans above a year, home loans would have to be priced at PLR or above PLR. This move will reduce the scope for banks to reduce rates only for new customers by altering the spread between their PLRs and lending rates. For instance, today it is not uncommon for a bank whose PLR is 11.5% to have one borrower paying 12% on a floating rate loan while offering a loan at 9% to a new borrower. This is possible because the old borrowers loans have been fixed at a rate of PLR plus 50 basis points while the new borrower is offered loans at PLR minus 250 basis points. Because of banks playing with the spread, old customers feel cheated.

Once PLR is fixed as the floor rate, with the maximum rate capped at 400 basis points above PLR, banks will be left with little headroom to vary rates for old and new borrowers. Large corporates would prefer to take short-term loans since they would be able to bargain for lower rates while small to mid-size corporates may benefit the most as there would be some transparency on pricing.

Source:http://lite.epaper.timesofindia.com/getpage.aspx?publabel=ET&city=Bangalore

Home loan rates could go up soon

With the Indian economy showing positive signs of recovery, the home loan rates might increase. According to India’s second largest lender, ICICI bank, the interest rates could rise in the latter half of the fiscal.

“There is growth already seen in auto and home loans…In the latter part of this fiscal, I expect that project finances will also pick up…We will continue to focus on home, auto and infrastructure loan segments,” said Chanda kochhar,ICICI Bank’s Managing Director and CEO”

C Rangarajan, chairperson of the Prime minister’s EAC, expressed a similar view regarding the interest rates.

This week, the inflation rose by 0.12 per cent while it had fallen by 0.12 percent the preceding week. Inflation in India is measured on the basis of wholesale price index, which considers a basket of 435 commodities.

The likely increase in the lending rates could shatter your plans of buying a new house at cheaper rates. The rising inflation could force RBI to put a check on the liquidity in the market by increasing the lending rates and the CRR.

Realty firms may also suffer losses as people might decide against buying houses. The finance minister, Pranab Mukherjee, said that the government had been expecting this trend.

http://www.rupeetimes.com/news/home_loans/home_loan_rates_could_go_up_soon_2774.html

Banks Attempt to Make the Best of Festive Season by Lending More for Home Purchase

State Bank of India, Deutsche Postbank, ING Vysya Bank and Punjab & Sind Bank are attempting to light up the festival season by lending more for home purchases than they did six months back, thanks to availability of funds and rising trust in the borrower. But individuals are still not buying as high home prices keep them away from their dreams. “The economy has improved and the liquidity situation is much better and interest rates have eased off considerably,’’ Anoop Pabby, joint managing director at Deutsche Postbank Home Finance, told SundayET. “It is only natural then that the home buyers expect the reduced risks to result in reduction in interest rates and relaxation of margin money norms.” The housing finance company is now funding up to 80% of the property value to most salaried people and in a few cases up to 85%, depending on the credit worthiness of the borrower. This is more than the 70% it used to lend a few months back.

Indian mortgage lenders, who were funding as much as the full value of the property in some cases, tightened lending standards after the collapse of Lehman Brothers last year this month because of the liquidity crisis and a rise in defaults due to job losses. But the scene has improved since with the Reserve Bank of India cutting lending rates to record lows and pumping in unprecedented amount of money into the system. Lenders such as ING Vysya Bank, and Punjab & Sind Bank have reduced the margin money requirement to 15-20% from 25-30% towards the cost of the house on their home loans — as they try to tap the potential home buyers. This leads to a borrower paying investing lesser capital than before. So on a home loan of Rs 25 lakh, a customer would need to pay only Rs 3.75 lakh now against Rs 6.25 lakh demanded earlier, where the margin norm is relaxed to 15% from 25%.

State Bank of India, which has cut the margin requirement to 20% from 25%, may reduce it a further 5%. “Festive season is a time when consumers traditionally contemplate property investments. Keeping in mind this, we have relaxed the margin money requirements,” said Sonalee Panda, product & marketing head at ING Vysya Bank. As part of its initiative to draw potential customers, the bank is participating in various property melas and community events, apart from running a special offer on home loan balance transfer product. The interest rates are also in favour of buyers now as it may start rising again in a few months. The rates have fallen to about 8% from as high as 13% in early 2008.

“Interest rates are likely to harden over the next six months with the credit offtake improving and inflation moving into the positive territory,” said G S Vedi, the newly-appointed chairman & managing director of Punjab & Sind Bank. “This is the best time for a potential buyer to go home shopping.” But the easy financing is not luring prospective buyers as price seems to be a bigger deterrent than the availability of loans. “This will be one of the last factors driving my purchase,’’ said Arpit Agarwal, an employee of a multinational company in Gurgaon, near New Delhi, who has been looking to buy a home with three bed rooms, a hall, and a kitchen. “I have been looking for a property for last six months, the prices are still not affordable.

Prices need to further come down to the liking of the middle class. Even then there are not many properties available in the secondary market, and if there are, they are quoting at exorbitant prices.’’ With buyers reluctant to jump in at the bank’s lucrative funding offers, it may be a bit longer before the real estate demand returns to its past glory. Robin Roy, associate director at PricewaterhouseCoopers (PwC), however, is not so optimistic about the home loan market. He believes since these are specific period offers, this may not see a huge surge, as prices of properties have not come down as per expectations. That is probably why the biggest mortgage company, Housing Development Finance Corp and IDBI Bank have not joined the chorus of lower down payment.

HDFC continues to ask for a contribution of 15% towards the cost of property upfront. “We have always been doing lending based on income and not on asset value,” a HDFC spokesperson said, adding that there won’t be any further rest in this norm. Public sector lender, IDBI Bank, however, is encouraging borrowers to make higher down payment and offers loans 25-50 basis points lower. “Green shoots still need a little protection. We have gone up to 80% (financing), but we believe for us to be liberal there has to be a downward trend visible in terms of bad loans,” CS Jain, head of personal banking, IDBI Bank said.

Source : http://www.indianrealtynews.com/home-loans/banks-attempt-to-make-the-best-of-festive-season-by-lending-more-for-home-purchase.html

Real estate firms build hopes on festival sales

NEW DELHI: Property firms are launching housing projects and raising pitch for ongoing ones in the hope of making decent sales going into the  festive season. The mood among builders may be buoyant, but very few believe price hike is possible as demand is still hesitant and new supplies are hitting the market.

The festive season, which usually begins late September with the Hindu festival of Navratra and continues up to Christmas, often sees higher sales of property, cars and other durables.

“Last year’s festive season was a total washout. But this time indications are that we are back to normal,” said Mumbai-based Lodha Developers director Abhisheck Lodha. He said property firms usually make 30% of their sales in one-and-a-half month between Navratra and Diwali, and this time will be no different.

Last festive season though was disastrous. Lehman had collapsed plunging the economy in a crisis and driving away homebuyers.

Mr Lodha is planning to launch two new projects, comprising apartments priced over Rs 1 crore, in Mumbai’s suburbs of Andheri and Thane. So far, the slow return of housing demand was scripted by lower-priced homes. But Lodha’s offerings indicate the builder is confident of getting buyers for high-priced segment as well.

Similarly in Delhi, DLF is preparing to launch over 1,500 apartments in a project in which it sold 1,350 apartments just six months ago.

DLF says it is yet to fix a price or number of apartments to be sold for the project, but brokers on behalf of DLF are offering apartments at a 30% premium to the first phase price. “If a location has a very good demand and not enough supply, prices will go up,” says DLF executive director Rajiv Talwar. Delhi may be one such market as it has lived under state-controlled DDA’s monopoly for long and has not many private developers building homes.

But price rise is not something many are really betting on. “Housing demand is not going to rise dramatically in a hurry. The market remains price-sensitive and any attempt at price hike will adversely impact demand,” says Vipin Aggarwal , principal of $200-million India Industrial Growth Fund. Mr Aggarwal is currently engaged in raising a $600-million India-focused real estate and special situation fund.

Agrees Pradeep Jain, chairman of Delhibased Parsvnath Developers and head of the NCR chapter of industry body CREDAI. “We have requested all  developers not to increase prices. If we increase prices in the next six months, it’s likely that demand will be hurt and we may get into that vicious circle of lower demand and higher debt,” he says. He is also launching more projects in NCR and western UP, as he expects demand to go up in the next few months on housing finance companies further lowering mortgage rates.

But Omaxe chairman Rohtas Goel says prices will go up after Diwali as festive sales will help ease cashflow pressure for developers. But international real estate consultancy DTZ India director Ambar Maheshwari says it’s still a delicate situation in the property market. “Developers still carry a lot of debt despite a string of QIPs and need steady cashflow to service that,” says Mr Maheshwari.

Several listed realty firms, including Unitech, Indiabulls real estate and HDIL, have in the past six months raised funds via qualified institutional placement route.

But this festive season, unlike last year, homebuyers may not get many freebies. “Developers’ margins have shrunk and there is little scope for freebies, even though in some cases, one would see such offers,” says NCR-based Supertech CMD R K Arora, who is offering free ACs in one of his projects.

Source : http://economictimes.indiatimes.com/News-by-Industry/Real-estate-firms-eye-festival-sales/articleshow/5040847.cms

Super-luxury is back in the realty lexicon

The sales brochure offers you the opportunity to own Mumbai’s first managed private residences with a “lifestyle elevated up to the sky”. At Rs 28,000 per square foot plus other charges, Indiabulls Sky is also promising a 65-storey “marvel with opulent apartments, timeless luxury and impeccable butler service”.

Indiabulls Real Estate, which has sold one-third of the apartments since the Lower Parel project was launched in the last one month, now says it will be selective in selling the remaining apartments to create a “classy neighbourhood”.

Apartments boasting the tags luxury and super-luxury — the two words forgotten in the real estate world in the last two years — are back with a bang over the last three months. What has brought back buyers this time is the fact that prices are much more reasonable than in 2006-07, when the same kind of apartment would have had an asking price at least 30 per cent higher.

Orbit Terraces, a luxury housing project by realty developer Orbit Corporation, also in Lower Parel, saw around 300 buyers making enquiries for 75 to 80 apartments when it was launched last week. The apartments in the project, which include duplexes with attached terraces, cost Rs 3.3 crore to Rs 6.6 crore for apartments ranging from 1,500 sq ft to 3,000 sq ft.

A host of other developers are also cashing in on what they call the new-found confidence among buyers. Take Mumbai-based Lodha Developers. The company, which used to sell two or three luxury apartments a month in south Mumbai till December last year, now sells 15 to 20 units a month, a top company official says. It has several projects such as Lodha Bellisimo, Lodha Primero, Chateau Paradise, among others, in South Mumbai.

And despite raising prices at the Lodha Primero project in Mumbai’s Mahalaxmi area 30 per cent, the developer has been able to sell 90 per cent of the apartments in the last one month.

“The luxury market was hit hard during the downturn. But sales have definitely picked up since March as the economy is on an upswing,” says R Karthik, senior vice-president of marketing at Lodha Developers.

The rush for super-luxury isn’t restricted to the country’s commercial capital. In Hyderabad, for example, at least eight builders are developing multiple projects, under which each villa or a bungalow is priced around Rs 4 crore.

Sunish Tom, head of Dun and Bradstreet (D&B) Information Services India events and promotions, says there is a huge demand for exclusive, custom-built luxury houses.

D&B recently conducted Millionaire Homes 2009 in Hyderabad, a platform to introduce prospective buyers to property developers. At least 2,000 people have expressed an interest in evaluating luxury properties. Similar events have already been held at Chennai and Bangalore.

Ravi Sharma, deputy general manager (sales) of Lodha Group, which sold its luxury properties by invitation, says the company has identified 5,000 high net worth individuals in Hyderabad. “We do customer profiling before extending an invitation,” he said.

The group sold 108 units of the 120 built in Phase I, due delivery in July 2011. Each unit was priced between Rs 2.5 crore and Rs 3 crore. The group plans to begin its second phase in four months. “There is demand for luxury homes. Most buyers want to stay in them and not see them as mere investment channels,” Sharma said.

What defines luxury is changing rapidly. “Golf is the USP for us. There is a huge appetite for this kind of project,”’ said Masood, managing director, Dax Properties, a subsidiary of Country Side.

Dax is coming up with a golf-centric villa project at Shadnagar (on the Bangalore highway), about 50 km from Hyderabad, covering 300 acres. It will have villas and villa plots ranging from 5,000 sq ft to 15,000 sq ft. In all, it plans to construct 1,000 villas in three phases including 250 villas in the first phase.

“The project is approved and the construction will start shortly,” says Masood, adding that the project cost will be around Rs 500 crore.

Vipul Bansal, joint managing director of Indiabulls Real Estate, says the luxury segment was largely insulated from the economic slowdown. “The main reason for buyers staying away was that there was hardly any stock of high-end products in places such as south Mumbai,” he says.

But analysts say the segment is seeing traction once again only because of aggressive pricing by developers. “Basically, it’s a question of keeping something on the table for buyers who need the comfort that they are buying a property that has scope for a 30 to 40 per cent increase after two or three years,” says Raminder Grover, chief executive of Homebay Residential, a unit of Jones Lang LaSalle Meghraj, an international property consultant.

Some developers agree. “Though sentiment and pricing have improved, if you increase prices by 10 to 15 per cent, products cannot be sold as easily as you sell them today,” says Ramashraya Yadav, head of finance at Orbit Corp.

According to Aditi Vijayakar, director of residential services at Cushman & Wakefield, a real estate consultancy firm, self employed people and businessman form the major chunk of new home buyers. That may not be surprising, since increments for salaried people are still subdued in Indian companies.

Buoyed by the new-found demand, many developers are planning new luxury launches. Orbit is planning one in Lower Parel during Diwali and another one in Andheri after Diwali, while Lodha is planning two more luxury projects in Mumbai shortly.

Source : http://www.business-standard.com/india/news/super-luxury-is-back-inrealty-lexicon/370858/

TOI Organises Houses ‘N’ Homes to Help Buyers

For those worried about how to buy their dream house in times of recession, Houses ‘N’ Homes organised by The Times of India in association with JK White Cement at Lajpat Bhawan lawn on Friday proved to be the perfect solution. The two-day fair was inaugurated by Union minister for Coal and Energy, Sriprakash Jaiswal, who was of the view that organising such an event would be beneficial both for the participants and the customers. With as many as 16 stalls ranging from real estate developers, housing consultancy, interiors, housing schemes and vastu consultation, the fair offered a complete solution to the housing problems. Be it design solutions on how to do up your dream home or attractive schemes on white goods to vastu consultation and interior counselling, Houses ‘N’ Homes provided a chance to explore the best housing options like never before.

Eldeco Housing and Industries Ltd, who have earned a name for their work in developing townships in Lucknow, Panipat, Ludhiana and Gurgaon, had much more on offer for Kanpurites through this fair. They presented their scheme of developing duplex houses for the residents. Sunil, marketing head of Raghunath Builders — already a known name in the city after developing the NRI city wit integrated villas — said, “Metros and A-grade cities have reached saturation in terms of townships and integrated societies and hence the group has turned towards Kanpur, it being viewed as a potential market for investment.”

When asked about the effect of recession on the real estate industry, Anshuman Singh, senior marketing manager Eldeco said, “Unlike metros, Kanpur still has got a lot to prove in real estate. Recession has not affected the tier II cities and is thus attracting more and more housing and township developers.” JK White Cement, one of the most promising brands of the city in white goods attracted architects, officials of military engineering services (MES) along with the individuals, who arrived with house and wall-related problems. “The products being economical and durable speak about the brand value and thus attract majority of the locals when it comes to trusting the brand,” said Ajay Jain, area manager of a project by JK White Cement.

Briefing about the trends in the development of housing societies and townships, Nivedita Gupta, sales executive of Dolphin Developers said, “With majority of the cities turning into a concrete jungle, the thrust now is on the outskirts away from the cramped environment of high-rises.” The event is being managed by Good Show Events and Promotions, and the participants in the fair include Raghunath Builders, Rimjhim ISPAT, Eldeco Townships and Housing Ltd, Anand Builders, Agarwal Group, Premier Group, TATA TISCO, Lubi Pumps and Motors, Kutchina, Srishti BS Structures, Corfom Mattresses and Resinova among others.

Source : http://www.indianrealtynews.com/real-estate-india/toi-organises-houses-n-homes-to-help-buyers.html

Developers Raise Property Prices- Plan to Give Discounts During Dussehra-Diwali

The last fortnight of Pitrupaksh, a period considered inauspicious for buying a new home, had few property transactions as usual but that did not stop developers from hiking their rates for projects under construction. Real estate players say this is a tactic to lure buyers with discounts during Dussehra-Diwali. “It is nothing but a strategy to make the festive pricing look attractive. Even new launches that were reasonably priced have seen a rise in prices,” said Pankaj Kapoor of the real estate research agency Liases Foras.

The 15-day Pitrupaksh phase ended Friday. “In North and West India, this period is considered inauspicious for buying a home or starting anything new. Sales normally pick up after Pitrupaksh between Dussehra and Diwali,” said Aditi Vijayakar, director of residential services at Cushman & Wakefield. Developer Sunil Mantri, vice president of the Maharashtra Chamber of Housing Industry (MCHI), ruled out substantial discounts during Diwali. He pointed out that prices have been rising anyway. “After a 30 to 40 per cent fall in rates, overall the market has stabilised and prices have been increasing since June. There might be festive period add-ons and marginal discounts on prices to attract sales, but nothing substantial,” he said.

Overall, between July and mid-September, prices of several projects including relatively affordable ones have been jacked up. For instance, the average rates at Rustomjee’s Global City in Virar, around Rs 1,900 per sq ft in July 2009, is Rs 2,750 per sq ft today. Flats at HDIL’s Premier Residences at Kurla, sold for about Rs 5,250 per sq ft in July, cost Rs 6,151 per sq ft today. Many other projects such as Kalpataru Aura at Ghatkopar, Lodha’s Casa Bella at Dombivli, Ackruti Greenwoods in Thane, to name a few, have each seen a rate increase of Rs 200 to Rs 1000 per sq ft.

Source : http://www.indianrealtynews.com/real-estate-trends/developers-raise-property-prices-plan-to-give-discounts-during-dussehra-diwali.html

Property Demand Resurges in India

Investors are once again interested in India’s housing market after residential prices dropped as much as 30 percent earlier this year.

The country’s largest home developer, DLF, sold close to 1,400 units in one day alone this spring; while in Mumbai, another company sold 90 percent of its premium apartments in less than four months, a surprising economic feat after the market’s sudden downturn in 2008.

While some real estate companies, including DLF, have been quick to adjust property rates due to the recent demand—increasing newer housing projects by 15 to 20 percent in the last few months—many economists believe price levels will still stay at all-time low. In the last quarter of 2008-09, developers cut middle-income home prices by 25 to 30 percent, after sales fell 50 percent from the housing market’s peak in 2007.

Despite a few recent economic dips, India has been on the radar of property investors for last eight years. It’s still one of the fastest growing economies in the world with an increasing middle class and strong technology industry that’s driving entrepreneurs to relocate to the world’s second largest country. Cities like New Delhi, Bangalore and Mumbai have been built up with residential and commercial properties to accommodate India’s BRIC (Brazil, Russia, India, China) powerhouse status— a conglomerate of countries expected to dominate the global market in the next ten years.

The increased interest in Indian real estate may also be an example of investors wanting what they can’t have: Nonresidents, tourist visa holders and business partners of the two are restricted from buying properties in most areas of the country, and are only allowed to lease properties for a period of no more than five years. However, economists encourage those looking to establish residency and take advantage of IT opportunities in India to invest in real estate now, as values will appreciate around 2011.

Source : http://www.buyassociation.co.uk/property/news/india/property-demand-resurges-in-india-13876.html

DLF may exit Amanresorts; to focus on residential, office properties

NEW DELHI: India’s largest property firm, DLF, that scaled down ambitions in the hotel business, following an economic downturn, to focus on core  areas of building homes, offices and shops, is planning various options to fully or partly exit from the international luxury hotel chain Amanresorts that the developer had purchased at the peak of the economic boom in 2007 end. The company has also held preliminary talks with at least two Indian hotel chains, but a huge gap between the buyer and seller’s expectations has played spoilsport for concrete deal discussions.

Founded by Indonesian hotelier Adrian Zecha, Amanresorts is a super luxury chain of resorts usually built with small inventory of rooms to offer exclusivity. The company is known to charge one of the highest average daily room rates that sometimes cross $600. The hotel company owns and manages 23 small luxury resorts worldwide and will open a new resort in Utah, USA, in October, as per the company’s website. It operates three resorts in India – one in New Delhi and two in Rajasthan.

In 2007, Adrian Zecha, announced that he has formed an equal partnership with DLF, which has entered into a definitive agreement to acquire a controlling interest in the Aman Resorts group. DLF, currently, holds 50% in Aman and as per the agreement, would acquire controlling stake in due time.

As per two executives in the hotel industry and one at DLF, the Indian real estate developer’s interest in carrying Aman in its portfolio has whittled given the economic downturn that has substantially pared occupancy levels as well as room rates across the hotel industry. As per industry estimates, Indian hotels together lost Rs 4,000 crore in revenues due to the economic slowdown and after the Mumbai terror attacks in the last financial year. Following this, few tourists visited India or stayed in five-star hotels and room rates dropped by at least 20-30%.

A senior DLF executive, who asked not to be named, said: “There is surely an interest among potential buyers. They have spoken to us. But it’s just been talks, little else, as their offer price is too low compared with the price we had paid for Aman in 2007.” He did not name the companies that has shown interest in Aman.

But the DLF spokesman denied the company was planning to dilute equity or sell any property of Amanresorts. In the past, while announcing the company’s falling interest in the hotel business, DLF vice-chairman Rajiv Singh had said the company would want to retain Aman as it was a boutique brand. As per two hotel industry executives, who did not wish to be named, DLF has held some preliminary talks with ITC Hotels. But the ITC spokesman said: “We have made no move” to acquire stake in Amanresorts. But hotel consultants said it makes sense for an Indian hotel company like ITC to bid for Aman since they have no presence in that segment.

Another senior hotel industry executive said DLF could consider an option to hive off Aman properties in Alwar, Rajasthan, and two loss-making properties in Sri Lanka to some investors or hotel chain without the Aman brand. It is speculated that the realty major spent $200-250 million with plans to get into full-fledged hotel business. It planned to build around 75 hotels in a joint venture with foreign hotel chain Hilton in India. But following Hilton’s takeover by private equity player Blackstone, Hilton’s interest in hotels with DLF waned. Meanwhile, DLF, too, had started facing cashflow pressures. The two partners scaled down their ambition to just four properties.

In early 2008, the stock market started seeing turbulence and the entire economy took a nosedive following the collapse of US investment bank Lehman Brothers later that year. As demand for homes, offices and shops dried up, property firms were faced with cash crunch. Realtors reprioritised their plans in order to ease cashflow pressure. DLF decided to sell assets and shift focus from capital-intensive businesses such as hotels to those like homes where revenue could easily be generated. DLF plans to raise Rs 5,500 crore through sale of assets and exit from some businesses such as windpower and township projects in Dankuni, West Bengal and Bidadi, Karnataka. DLF has already sold its small hotel project in Saket, Delhi. It has put on block over 10 hotel plots across the country, including in Gurgaon and Mumbai. The company has since been able to successfully sell some of its assets.

As per reports, Amanresorts was adversely impacted after 2002, due to the tourism downturn in south-east Asia, following the Bali bombing and other disaster since a large chunk of its resorts are in Asia. The current economic slowdown, which significantly reduced business and leisure travel, has hurt all luxury and five star hotels.

Source : http://economictimes.indiatimes.com/News-by-Industry/DLF-may-exit-Amanresorts/articleshow/5035334.cms

Oh max! Omaxe goes max and launches new projects

Omaxe Ltd, which claims to be one of the leading real estate players of the country, has launched about four to five projects in just two months in  different cities of the country. The recent news to share about the developer is the announcement of the launch of two projects in just a week’s time, one in Lucknow and the other in Bulandshahar. Both the projects would be executed in phases over a period of five to seven years.

Spread over approximately 2700 acres, the Lucknow township is expected to yield an estimated revenue of over Rs 2,800 crores and would cater to the growing demand of quality living space in the city. Garv Buildtech Private Ltd, a subsidiary of Omaxe, has entered into a Memorandum of Understanding to develop the said hi-tech township in Lucknow.

Whereas the other project will develop a hi-tech township in NCR adjoining Greater Noida in Bulandshahar, Uttar Pradesh. For this, Omaxe’s subsidiary M/s Rivaj Infratech Pvt Ltd has signed an MoU with Bulandshahar Development Authority. To be developed over an approx area of 3601.19 acres, this township would have estimated revenues of over Rs 7,5O0 Crores.

The Lucknow township will be located on the proposed Lucknow Ring Road in close proximity to Lucknow Airport and only half an hour drive from Hazratganj, center of Lucknow city. The township will provide residential options comprising of plotted and built up development with various options including affordable housing to suit everyone’s style and budget and meet the social commitments to the society.

Speaking on the announcement, Rohtas Goel, CMD, Omaxe Ltd said, “The hi-tech township is an attempt to recreate an entirely new living experience in the city of Nawabs. There is already substantial pressure on the existing infrastructure and this township will attempt to ease the demand by providing state of the art facilities in close quarters.”

The Bulandshahar project will be located in Delhi NCR Region adjoining Greater Noida approx 20 min drive from its proposed international airport and adjacent to proposed Eastern Peripheral Expressway and North-East Railway Freight Corridor.

Talking about the project Goel said: “The township at Bulandshahar will be a good alternative to the crowded Delhi Region and will create an attractive environment for high quality living, work and recreation. Apart from this, the township will be home to technology and knowledge based industries which will be attracting private investment and create employment.”

Earlier, Omaxe through its subsidiaries had signed MOU with Allahabad Development Authority in July 2009 for the development of Hi-Tech Township at Allahabad on approx 1535 acres. With the Allahabad, Lucknow and Bulandshahar projects, the developer intends to generate revenue of over Rs 12,500 crores over a period of five to seven years.

The top team at Omaxe has begun to stand larger than life in the real estate industry and has also begun to influence the trend of transactions too.

For one thing, this company has stuck to its core competence all the time and this strategy has begun to pay lately.

Hence the recession could not take these guys out.

When the going gets tough, the tough get going.

Source : http://economictimes.indiatimes.com/features/financial-times/Oh-max-Omaxe-goes-max-and-launches-new-projects/articleshow/5032537.cms

Best time to look for a value deal in real estate

It’s perhaps the best time to look around for a value buy in real estate. With lower price points in locations which were not earlier within your Land as investment

wallet’s reach, buyers are scouting for good ‘value’ bargains at this time. And with developers going big on affordable home launches, the timing may just be one of the best for buyers seeking a steal deal.

Anshuman Magazine, CMD of global real estate consultancy CB Richard Ellis (CBRE) says that value buying is happening mostly in suburban locations as that is where the current supply is. “Certain pockets in Gurgaon and Noida, where the price earlier used to be Rs 65 lakh-Rs 1.5 cr, today have deals to offer anywhere between Rs 35 lakh to Rs 50 lakh! Developers have reduced the total ticket sizes, adjusted area, price and given amenities. This has got people back and is making them hunt for value deals right now.”

Locations such as Gurgaon, Faridabad, Noida in Delhi NCR and Navi Mumbai and Thane in Mumbai are some of the good locations for value buying, feels Navin M Raheja, chairman and managing director of Raheja Developers. “Anything which is available between Rs 2,500 to Rs 3,500 per sq ft is the right price depending, of course, upon the location and infrastructural facilities available in the vicinity with specifications offered.” The developer is soon going to launch a housing project, ‘Raheja Shilas’ near IGI airport wherein the price would range between Rs 2,575 to Rs 2,875 per sq ft.

Raheja further adds that there are three kinds of value buying that are taking place in the real estate market right now. Ready to move in residential property in and around metros and their suburbs, ready to move in commercial property which is already leased or generating income and low income and middle-income housing ranging from Rs 15 lakh to Rs 40 lakh are the primary types of value purchases in his opinion.

Many of those who were holding out have also decided to make a purchase now as prices have bottomed out. Plus with many affordable housing launches by developers, the view is that prices are more pocket friendly at this time. “Prices have reached the bottom and in these prices you are bound to get good appreciation in future. So if you are buying a particular property now, one is definitely going to feel later that they grabbed a good deal,” says Vijay Jindal , CMD, SVP Group.

Jindal’s view is shared by many others in the market as well. Smaller investment opportunities with a starting price bracket of Rs 35 lakh-Rs 40 lakh have fuelled the demand. “Earlier the prime focus was on high-end purchases, but today, the conversions are happening mostly for smaller properties. At least 50-60% conversions are there in the market today for properties priced between Rs 30 lakh – Rs 80 lakh, 20-25% are for the expensive ones priced between Rs 90 lakh – Rs 2.5 cr and a miniscule number is for the ones above Rs 5 cr,” says Pankaj Jain, executive director of Realistic Realtors, a North Indian real estate consulting firm.

But are people also looking at Tier II and Tier III cities right now, which were prime investment hubs in the good times? “People are not primarily Land as investment

seeing these locations for investment at this time. Value buys here are mostly end-user driven,” adds Magazine.

However it’s best not to overlook the pros and cons before deciding on such value buys. Though the pricing and the product may both look highly appealing, it’s best to read the fineprint carefully. This will hold in good stead for the future. Rajeev Rai, vice president, corporate, Assotech, advises about key strategies that should be followed. “One shouldn’t get carried away by sops or discounts offered and one must also not ignore the sold stock status of such a project. As far as the dos are concerned, one must set their priority of the price, location, size etc. A due diligence about the supply and demand of such projects is necessary. Lastly, one must check the developer’s profile, delivery schedule and legality of the project.” Assotech has projects such as The Nest in Crossings Republik at Rs 2,300 per sq ft and Metropolis in Rudrapur at Rs 1,850 per sq ft.

So if you have been thinking of investing your money in a home, it’s the right time to go deal hunting. Negotiate a bargain, go for value and close the deal.

http://economictimes.indiatimes.com/features/the-sunday-et/property/Best-time-to-look-for-a-value-deal-in-real-estate/articleshow/5032421.cms

Real-estate companies are now focusing on project execution — Chairman, Parsvnath Developers

Consumer interest seems to be returning to the housing market, albeit slowly, and the real-estate industry is hoping that the ensuing festive season augurs well for the sector. Realtors claim that demand is showing quarter-on-quarter improvement on the back of softening interest rates, Government’s support measures, such as interest subvention, and better market sentiment. Business Line caught up with the Chairman of Parsvnath Developers, Mr Pradeep Jain, for insights into the market mood, the company’s strategy for the festive season and the status of its commercial projects.

Excerpts from the interview:

What are the signals you are getting from the market? Is interest building up on the housing side again?

Yes. Between the fourth quarter (FY 2008-09) and now, I think demand has increased by 100 per cent and it is improving each day, particularly in housing. There was a time when consumers were expecting price correction, and developers realised the market need and made prices and products affordable. In fact, there are a lot of factors that came into play — the capital markets improved, there was support from the Government, and interest rates on home loans also fell. I believe all these helped lift the mood.

But the demand is still largely restricted to the affordable housing space. Your comments…

Today, demand exists in all segments of the housing market. Definitely, there is great interest in affordable projects but we are also starting to see interest in the mid-segment and even luxury housing. Recently, we received the required sanctions and started construction of the Civil Lines project and we are already beginning to get good responses. In the Civil Lines project, the selling price is Rs 10,000 per sq.ft. Overall I am confident that things are looking up. In the festive season I expect further revival.
Real-estate companies have realised their mistake and are now focusing on execution.

We, as a company policy, are not buying any new property, but focusing on execution. The priority at this point is fast-tracking the execution and delivery.

Let me give some numbers… in September we are working on about 80 million sq.ft, of which, we put 42 million sq.ft on fast-track. Out of this, we want to deliver 30 million sq.ft in 24 months.

What is Parsvnath’s strategy for the festive season? Have you lined up new schemes or discounts to attract buyers?

Each year, during the festive season — which starts from Diwali and goes on till the New Year — a couple of things happen. People who live abroad or those living in India but working away from home and family tend to come home on a break. Second, the housing finance companies and banks come out with attractive offerings. Overall, the money circulation improves. This year, a major catalyst will be the revival of the market. I feel that those who are looking to buy a house for themselves will not hold their decision.

In the past, we have come out with various schemes and we may do it this year, as well. Where customers have bought a property but the payment is overdue for some reason, we offer discount on the interest levied for those customers who make their overdue payments in a certain timeframe. Such a scheme gives a breather to the customer and also helps regularise the payment. It also prompts decision-making. Then there are new launches. We have got new licence for a Rohtak project and a township in Saharanpur, so we are planning to launch them during the festive season.

When do you expect the commercial sector to revive? Could you give an update on your commercial plans?

The commercial real-estate market is still a subjective issue. In some areas there is oversupply, and in some, undersupply. I believe that office demand is getting back but retail is still a concern as retailers are looking at confirmed and committed footfalls.

If you look at our metro projects, over the last couple of weeks, we have been receiving a lot of queries as Akshardham station is about to be completed. Similarly, in Model Town, the station is nearly complete, the commercial operations have started and the retail is about to be completed. We are receiving queries for those as well.

Again, in the case of commercial, wherever we have started development, we are pushing to complete those. In Delhi, we are already working on over 2 million sq.ft area, of which, 1.2 million sq.ft will be completed by the end of this fiscal and 8 lakh sq.ft will be completed in the next two years.

We are pushing to complete on fast track all the metro station properties because there is good demand. We hope to complete an overall 2.8 million sq.ft (total area across 13 metro properties) by 2012, so from 2013 onwards we start getting Rs 300 crore in rental.

Source : http://www.thehindubusinessline.com/iw/2009/09/20/stories/2009092050701500.htm

Festive spirit: Banks soften home loan norms

NEW DELHI: State Bank of India, Deutsche Postbank, ING Vysya Bank and Punjab & Sind Bank are attempting to light up the festival season by

lending more for home purchases than they did six months back, thanks to availability of funds and rising trust in the borrower. But individuals are still not buying as high home prices keep them away from their dreams.

“The economy has improved and the liquidity situation is much better and interest rates have eased off considerably,’’ Anoop Pabby, joint managing director at Deutsche Postbank Home Finance, told SundayET. “It is only natural then that the home buyers expect the reduced risks to result in reduction in interest rates and relaxation of margin money norms.”

The housing finance company is now funding up to 80% of the property value to most salaried people and in a few cases up to 85%, depending on the credit worthiness of the borrower. This is more than the 70% it used to lend a few months back.

Indian mortgage lenders, who were funding as much as the full value of the property in some cases, tightened lending standards after the collapse of Lehman Brothers last year this month because of the liquidity crisis and a rise in defaults due to job losses. But the scene has improved since with the Reserve Bank of India cutting lending rates to record lows and pumping in unprecedented amount of money into the system.

Lenders such as ING Vysya Bank, and Punjab & Sind Bank have reduced the margin money requirement to 15-20% from 25-30% towards the cost of the house on their home loans — as they try to tap the potential home buyers. This leads to a borrower paying investing lesser capital than before. So on a home loan of Rs 25 lakh, a customer would need to pay only Rs 3.75 lakh now against Rs 6.25 lakh demanded earlier, where the margin norm is relaxed to 15% from 25%.

State Bank of India, which has cut the margin requirement to 20% from 25%, may reduce it a further 5%.

“Festive season is a time when consumers traditionally contemplate property investments. Keeping in mind this, we have relaxed the margin money requirements,” said Sonalee Panda, product & marketing head at ING Vysya Bank. As part of its initiative to draw potential customers, the bank is participating in various property melas and community events, apart from running a special offer on home loan balance transfer product. The interest rates are also in favour of buyers now as it may start rising again in a few months. The rates have fallen to about 8% from as high as 13% in early 2008.

“Interest rates are likely to harden over the next six months with the credit offtake improving and inflation moving into the positive territory,” said G S Vedi, the newly-appointed chairman & managing director of Punjab & Sind Bank. “This is the best time for a potential buyer to go home shopping.”

But the easy financing is not luring prospective buyers as price seems to be a bigger deterrent than the availability of loans. “This will be one of the last factors driving my purchase,’’ said Arpit Agarwal, an employee of a multinational company in Gurgaon, near New Delhi, who has been looking to buy a home with three bed rooms, a hall, and a kitchen. “I have been looking for a property for last six months, the prices are still not affordable.

Prices need to further come down to the liking of the middle class. Even then there are not many properties available in the secondary market, and if there are, they are quoting at exorbitant prices.’’

With buyers reluctant to jump in at the bank’s lucrative funding offers, it may be a bit longer before the real estate demand returns to its past glory. Robin Roy, associate director at PricewaterhouseCoopers (PwC), however, is not so optimistic about the home loan market. He believes since these are specific period offers, this may not see a huge surge, as prices of properties have not come down as per expectations. That is probably why the biggest mortgage company, Housing Development Finance Corp and IDBI Bank have not joined the chorus of lower down payment.

HDFC continues to ask for a contribution of 15% towards the cost of property upfront. “We have always been doing lending based on income and not on asset value,” a HDFC spokesperson said, adding that there won’t be any further rest in this norm. Public sector lender, IDBI Bank, however, is encouraging borrowers to make higher down payment and offers loans 25-50 basis points lower.

“Green shoots still need a little protection. We have gone up to 80% (financing), but we believe for us to be liberal there has to be a downward trend visible in terms of bad loans,” CS Jain, head of personal banking, IDBI Bank said.

Source : http://economictimes.indiatimes.com/Personal-Finance/Banks-soften-home-loan-norms/articleshow/5031841.cms

After Pune’s IT revolution, now it’s Nashik

Ever since Pune embraced the IT revolution , there has been no stopping to the growth of this city. With some concerted efforts by the government to  give impetus to this sector, bigger giants in the software industry shifted their base there. The express highway between Mumbai and Pune too worked wonders for this sector, resulting into a boom in the real estate industry.

Now, Nashik city finds itself on the same course. The Maharashtra Government is all set to lay emphasis on the IT sector in Nashik. Bigger giants in the IT industry are already eyeing this city since long, while the infrastructural development, the road widening work between Nashik-Mumbai , Nashik-Pune , air connectivity, etc, are all serving as the icing on the cake. With all such things taking place, just like they happened in Pune a few years back, the real estate industry in Nashik is set for a major boom.

Apparently, home seekers already have a good idea of this growth. Only a month back, a two-day property exhibition by the State Bank of India, Nashik and the Promoters and Builders Association of Nashik (PBAN) fetched the bank loan applications worth Rs 60 crore, which shows how keen customers are for making investment in property in Nashik, before their prices shot through the roof.

Says Sujoy Gupta of Samraat Group, “There’s a reason to it. Nashik has all the ingredients to make it an ideal destination for investments in homes. Secondly, the climatic conditions, healthy industrial, educational , social and cultural scenario, all goes into making Nashik a favoured city.”

On the basic of these features, Nashik city in a periphery of around 25 kms, is witnessing a boom in the real
estate sector in all its directions. Falling on the Nashik-Pune Road, Nashik Road, 20 kms from Sinnar , where the Special Economic Zone (SEZ) is coming up, is witnessing tremendous construction activities. Says Naresh Karda of Karda Constructions, “Since the announcement of SEZ at Sinnar, Nashik Road has come under the spotlight.

On one hand this part of Nashik city, connects to Sinnar and Pune, on the other, Aurangabad Road also passes through its vicinity. Many posh housing projects are coming up in the stretch between Dwarka and Nashik Road and are getting a good response on the basis of easy accessibility to the city, presence of large number of educational institutes, including the international ones and malls and multiplexes.”

From Dwarka towards Govindnagar and Tidke Colony, which now forms the heart of the city is becoming the premium area of the Nashik city. Falling on the Mumbai Agra Road, property seekers from Mumbai appear more interested in this area, while developers are not living any stone unturned to ensure that the amenities they provide are at par with those in metropolis.

Falling on the other side of the Mumbai Agra Road, the stretch from Rajivnagar to Pathardi is another happening belt for the construction industry. Informs Sunil Bhaybang of PBAN, “Due to the reasonable property rates in this area compared to other parts of the city and also falling on the Mumbai Agra Road, which is fast getting converted into six lanes, this area has become a preference of a large number of home seekers.”

Ashok Mohanani, Managing Director of Ekta World, who is coming up with a huge township project at Pathardi with world class amenities at their
Greenville project says, “Pathardi is a strategic location for several reasons. The infrastructure around the highway with the service road on both the sides, the modern yet tranquil environs and institutes like Symbiosis and Wockhardt Hospital work as additional features to attract more home seekers.”

The College Road and Gangapur Road areas of the city with maximum shopping complexes , banks, educational institutes and recreational centers are ruling the roost and are home to the elite class of the city.
Due to the absence of industries, the Panchavati area has not seen much movement in the property segment as compared to other parts of the city.

However, what can work to its advantage are the three highways passing through it, says Niranjan Shah of Subhadra Estates. He also adds the 100-feet ring road connects Panchavati to the bustling Gangapur Road of the city within a matter of few minutes , while home seekers can also consider the less pollution levels and the presence of religious tourism.

Last but not the least, Deolali Camp is yet another favourite destination of property buyers mainly from Mumbai and Pune. A class 1 cantonment, surrounded by picturesque, Sahyadri ranges, this town dotted with a number of sanatoriums by Gujrati, Marwadi, Parsi and Jain communities, is not only rich in educational institutes, but also a favourite market place among Nashikites.

“With zero level pollution and 0.5 FSI, home seekers are sure about peace and tranquillity they would get. Further, not only the Nashik-Pune Highway and Ghoti-Sinnar road are close-by from Deolali , but all the trains running on the Central Railway also stop at Deolali. This has made Deolali Camp the favourite destination of all,” says Amar Vasani of Bindu Land Developers.

Nashik’s real estate market offers numerous choices in terms of homes for end users as well as for investment purposes. With property prices at attractive levels and reduced home loan interest rates, this appears to be the best opportunity to zero in on the property of your choice.

Source : http://economictimes.indiatimes.com/infotech/ites/After-Punes-IT-revolution-now-its-Nashik/articleshow/5029606.cms

3C Company’s new project

3C Company, focusing on green development in Delhi-NCR, has announced the launch of ‘Lotus Boulevard Espacia’, a part of one of the largest green residential estates, in Noida. Spread over 10 acres, ‘Espacia’ will offer 3-BHK and 4-BHK apartments ranging between 1,950 sq.ft and 2,550 sq.ft.

Lotus Boulevard Espacia is the result of the healthy market response to the 30-acre ‘Lotus Boulevard’, according to a press release.

Lotus Boulevard Espacia will provide an ergonomic environment to its residents. The project will have multi-functional full-fledged “Club Platino” for fitness, games and shopping. A spa, swimming pool and gym will provide total fitness solutions to the residents. For sports leisure, the club will have a squash court, a tennis court, opti-golf and a putting green. A shopping option in the club will be built to take care of the daily needs of the occupants.

For entertainment and enrichment activities, Planet Lotier, that sprawls over an area of 1.25 lakh sq.ft, will have a cricket academy by Madan Lal, fitness centre by Elemention, dance school by Ashley Lobo, medical facilities by Max Healthcare, pre-nursery school by Lotus Valley International School, multi-utility sports hall for badminton, volleyball, basketball and with a rock climbing wall too.

It will also have an indoor heated pool, outdoor pool, kids pool and wave pool with skating rink, open amphitheatre, exhibition centre, multi-speciality restaurant, convenient shopping, and multi-cuisine food court.

Located in Sector 100 of Noida, right off the Greater-Noida expressway, Lotus Boulevard Espacia is close to DND Toll Bridge and the upcoming DMRC station providing connectivity to key locations in Noida. The project will be ready for possession in 36 months.

Recently, the company was awarded the prestigious LEED Platinum rating in shell and core category by US Green Building Council for its eco-friendly project ‘Green Boulevard’, in Noida. With this, 3C Company is the only one in Asia to have to its credit three Platinum rated LEED certified green buildings, according to the press release.

Hiranandani Upscale’s Chennai project

Hiranandani Upscale, which is developing 110 acres of premium residential and commercial space, has announced more residential offering in the second phase of the project coming up on the IT corridor in Chennai.

The second phase, the Oceanic, has been launched with spacious 3,500 sq.ft, 5-BHK apartments. This has now been followed up with the launch of ‘Edina’, an exclusive hi-rise tower offering 3-BHK apartments of 1,790 sq.ft and 1,950 sq.ft. More developments are envisaged at a later date with different configurations. The project will be developed in phases, with each being a self-sufficient community. The first phase, planned for completion 2-3 years from date, offers six multi-storeyed towers, comprising two-level basement + stilt + 28 upper floors, with areas ranging from 1,295 sq.ft to 2,752 sq.ft for 2-BHK, 3-BHK and 4-BHK.

Festive offers from Amrapali Group

With the onset of the festive season, the Delhi-based Amrapali Group has unveiled a range of schemes for its customers. The real-estate developer hopes to use the auspicious occasion of Navratras, Eid, Dusshera, Durgapuja and Diwali, the peak time to make festive bonanza offers, according to a press release.

These include freebies with the purchase of residential flats with the customers getting assured gifts such as televisions, refrigerators and washing machines. Apart from these, on Dhanteras, with the booking of a residential flat, the customers pay 1 per cent less on the total cost of the flat.

For investors, it has designed an exclusive offer, that is, on the purchase of ten residential flats, a 50 per cent cut from the original cost on the purchase of the eleventh flat. A lucky draw will get the winner a fully furnished, luxurious house.

A press release quoting Mr Anil Sharma, Chairman, Amrapali Group, says that “festive season is the best time to introduce offers for your customers and Amrapali has set new visions to fully satisfy its customers with a bag of surprises at the purchase of every flat during this auspicious period.”

Source : http://www.thehindubusinessline.com/iw/2009/09/20/stories/2009092050711500.htm

Indian Landscape goes greener

Globalization and free market economy being the order of the day, the landscape activities are no more confined to a few professionals. Landscaping has got the industry status with a lot of activities taking place over the last few years.

“The rapid urbanization and industrialization leading to the ongoing construction boom, malls culture, green belts, amusement parks and residential townships, all these have given a new dimension to the art of landscaping, points out S Jafar Naqvi, President, Indian Flowers and Ornamental Plants Welfare Association (IFLORA)

In fact, Naqvi notes, India is availing itself of the services of landscape professionals from Europe, Malaysia, Singapore and importing all kinds of high value products from all over the world”,

Today, green architecture and energy-efficient landscape designs propose an alternative idea of how the appearance of landscape can integrate more fully with the life processes of plants, rather than remain dependent only on their shape and form, says Professor M Shaheer, Shaheer Associates, a prominent landscape architect, based in Delhi.

Indian real estate developers like Ansal API, DLF Universal Ltd, Omaxe Ltd., Hiranandani Developers, MGF Emaar Properties (Dubai), Prestige Group, Supertech, Unitech Builders, Rizvi Builders, Hafeez Contractors, K Raheja Group, Raheja Developers, Meriton Group, Parsvnath Developers, International Land Developers Ltd., Aashiyana Group, Sahara Group, JMD Ltd., Amrapali Group, Panchsheel Buildtech, M2K, Kalpataru Constructions, Merlin Group, Prestige Builders, Rungta Group and many more have joined the new urbanization revolution in India by creating new “Green Living” concepts.

It is undeniable that plants and trees play a key role in the development of our society and culture. Healthy environment is a boon especially for the growing children. Professor Dario Gamboni puts it even more pithily: “Plants make the shape of life itself visible”,

Naqvi adds, “The concept of using Indoor plants in offices and work places is growing in India rapidly because it enhances the employees’ working capability and creativity, while making the environment more peaceful and friendly.” Alongside, some of these plants are useful in curing many common diseases. Therefore offices of MNCs and many corporate bodies in India are growing them often in their office premises

Secondly Pune is a major production hub of quality plants, trees, shrubs and playing an important role to protect environment by supplying nursery plants to almost all top landscape designers, real estate developers, Urban development departments, and also exporting to other countries.

The following from Pune based companies participated in the expo. Display of Maharashtrian produces in this expo is a major attraction among landscape designers, officers of Urban development departments and nurserymen from all over India coming to source their requirements through this mega platform.

K F Bioplants, a leading tissue cultue lab in the country and a most successful Indo-Dutch joint venture project, supplying and exporting tissue culture plants from India.

Tukai Exotics -one of the prominent nursery project involved in developing of all kinds of trees and plants and placing Pune as a sustainable long term suppliers to green projects.

Tropica Nursery- the collection of different imported and indigenous accessories and inputs is the specialisation of this company supplying all kinds of pots, plants, trees, and other inputs all over India.

Vardhaman Fertilizer -a leading soluble fertilizer company focusing on high quality growing of plants, flowers and other horticulture crops.

Gajra Nursery -Ornamental plants and the variety of big size trees is the specialization of this company and became a reliable supplier to sports complexes and new urban projects coming in different metros.

Jagtap Horticulture-Pune’s one of the oldest nurserymen diversified into gardening centre, landscaping and importers of inputs for landscape and golf course sector.

It is also proven through various surveys that in the developed world the productivity of working staff has increased by 10 to 15 per cent by providing green surroundings or a good green plant nearby.

The country’s landscape industry has devised its own architectural creativity in the last five decades.

In view of the growing consciousness on Redesigning India thorough promotion of environment-friendly concepts, the 4th International Landscape & Gardening Expo 2009, to be held on 2-3-4 October 2009 in Hyderabad, India, will be an ideal destination for the entire landscape industry. It will be a single platform and a meeting place for all stakeholders under one roof. This mega event will be a world class experience for all professionals in this sector to increase their business through interaction and business dealings.

Adding value to the event will be a two-day conference devoted to “Plants, Places and People”. The discussions will focus on improving the quality of life of people by preserving the environment through proper planning of public places, parks and recreation centres. It will open a new chapter in the history of India’s greening movement.

Key speakers, who have been invited, are: the President of Indian Society of Landscape Architects (ISOLA) Ms. Savita Punde and the presidents of IFPRA, GCSMAI, HMDA, IBA, ITC Group, Raheja Group, Tourism Industry, Nursery Industry, Sports Authority, Amusement Park Industry, Lighting Industry and individuals working for Green sector.

Source  : http://www.indiaprwire.com/pressrelease/agriculture/2009091834008.htm