DLF begins to sell land parcels

DLF Ltd, India’s largest realtor by market capitalisation, has embarked on a land-selling spree. The company recently sold 500 plots of 200-400 yards in Indore, Madhya Pradesh, mopping up around Rs 110 crore at an average Rs 800 per square feet.

More sales are being consummated, some in south India, which will garner slightly larger amounts than Indore, said sources. Rajiv Talwar, group executive director at DLF, confirmed the development but said he cannot disclose price detals.

“The valuations were reasonable. We are also looking to sell some hotel plots etc,” he said. After DLF’s exit from the Bidadi project in Bangalore and Dankuni in West Bengal, its landbank fell to 425 million square feet compared with 751 million square feet.
It added another land parcel of 350 acre through bidding at Haryana State Industrial Infrastructure Development Corporation, Gurgaon.

At present it has a landbank of 432 million square feet. In the September quarter, DLF had sold two land parcels in Mumbai, which was bought by serial entrepreneur Sivasankaran. Rising prices have also helped. Samir Jasuja, chief executive of PropEquity, a real estate data and analytics provider said project launches from April 2008 to April 2009 have seen price escalations, especially since the absorption in metros has been good.

“The prices in some cases have even gone up by 5-15%, and I expect the land prices to remain stable or slightly go up now on,” Jasuja said. DLF had earlier said that it is looking to sell land assets in 2009 to raise Rs 2,000 crore in a bid to retire debt.

The plots included hotel land, residential plots and commercial land. DLF has plans to monetise its assets and was able to bring in cash worth Rs 550 crore through asset sale in the last quarter which takes the total amount to Rs 1,064 crore. The company has a net debt of Rs 12,135 crore it expects to raise another Rs 4,436 crore through asset sale.

The company is also looking to sell its windmill business for a valuation of Rs 1,100-1,200 crore for which it is unable to find a buyer, said sources close to the development.

Source:http://www.dnaindia.com/money/report_dlf-begins-to-sell-land-parcels_1313985

Commerce firm on keeping SEZs out of direct tax code

THE commerce department has opposed bringing tax-free special economic zones (SEZs) under the ambit of the proposed direct taxes code, arguing that it could hit the development of such zones and ultimately hurt exports.

SEZ developers and units in these zones at present enjoy benefits under a special Act passed by Parliament and are spared from paying taxes on profits.

However, under the code, that has been circulated by the revenue department and which seeks to streamline the countrys tax regime by minimising exemptions and lowering rates, tax benefits will be linked to investments made by developers. The code is also unclear about the tax treatment to units that operate out of SEZs and could erode the attractiveness of SEZs for businesses. It could particularly cut tax benefits enjoyed by SEZs, especially in sectors like IT where investments are low.

The commerce department therefore wants SEZs to be kept outside the new overarching code and has indicated this in a communication to the finance ministry, a department official told ET, requesting anonymity. Such a demand signals a hardening in the stance of the department, which had earlier sought only a written assurance from the finance ministry that the new tax regime will not be applicable on the zones where
developers have already started making investments.
Director general of export promotion council for exportoriented units (EoUs) and SEZs L B Singhal said while the proposed code contradicted provisions of the SEZ Act, ambiguities in the new proposal was making things worse and investors were shying away from taking investment decisions. The proposed code allows so-called grandfathering of incentives, under which SEZs enjoying tax breaks under present rules would continue to do so. But there is no clarity on whether tax exemptions on export income available to SEZs and the exemption from minimum alternate tax would continue, Mr Singhal said.

He added that the government could not wait until 2011 to make clarifications as investors, both domestic and foreign, were hesitating from making investments in SEZs amid apprehension that these would fail to attract units if tax laws changed.
SEZ projects are typically long-gestation projects and lack of certainty about tax laws could make developers of these zones apprehensive about the returns that they would expect from prospective units coming up in them.

Source:http://lite.epaper.timesofindia.com/getpage.aspx?edlabel=ETM&pubLabel=ET&pageid=13&mydateHid=20-11-2009

Corporates Strike Realty Deals In Bangalore

DLF, Embassy & Prestige have divested land and property assets in the city.

After a long slumber, Bangalore’s real estate market is ticking with big-bracket property deals. Corporates appear to be leading this trend of buying land and property assets from developers, who may be looking at such divestments to generate more liquidity into the system.

At least three deals in the Bangalore landscape have been struck or are in advanced stages of closure.

Realty major DLF is understood to have sold a 15-acre patch of land in Whitefield, one of Bangalore’s IT suburb in the east, to NetApp India, the arm of US-based data storage equipment maker NetApp Inc, in a deal valued at Rs 120 crore, said a source familiar with the transaction.

Prestige Group has, through an SPV, sold 60,000 sq feet prime property on Brunton Road in downtown Bangalore to Sun Network family for a consideration of Rs 60-crore deal. This transaction, which was in the making for some months, was clinched in recent weeks, with the buyers expected to use the property as a corporate office for Sun Network.

And, Embassy Group is close to divesting a prime patch just off Kasturba Road, in close proximity to UB City and Bangalore’s lungs-Cubbon Park, in favour of HDFC Realty Fund for a sum of Rs 60-70 crore. HDFC Realty Fund may be roping in a local developer for constructing a high-rise residential project of approximately 1 lakh sq feet, on the 36,000 sq ft property, overlooking the city landmarks. Earlier, Embassy Group, which has developed some of Bangalore’s landmark office buildings, had similar plans.

While Prestige Group chairman Irfan Razak confirmed the deal to VCCircle, mails sent to NetApp India president Vikram Shah and spokespersons of DLF and HDFC elicited no response at the time of posting the story.

NetApp India may be looking at a huge office space development in Whitefield. In earlier media reports in 2008, NetApp had said, it would hike its head count in India to 2,000 (from 750 at that time) and would look at investing up to $300 million in the country.

A realty consultant, requesting anonymity, said, that there is a heightened trend towards buying assets by corporates. “There is lot of interest. In recent weeks, I have been swamped with calls,” says L J Hooker chief operating officer Chaitanya Manohar. But, it is still early days yet and till deal closures take place, we can only call it increase in interest, says another tracker.

A few days back, VCCircle reported on Oracle’s talks to buy one million sqft office space in one of the upcoming projects of Brigade Enterprises for Rs 500-550 crore. This deal, if it goes through, will be one of the biggest office space acquisitions in India recently. Industry trackers said these transactions signal an upturn in the market sentiments, with realty firms like Brigade, Embassy and Prestige cashing in on the early signs of revival.

Source:http://www.vccircle.com/500/news/corporates-strike-realty-deals-in-bangalore

Mukesh Ambani mulls entry into low-cost housing

After successfully dabbling in organised retail in 2006, Mukesh Ambani, chairman of India’s largest private sector company, Reliance Industries (RIL), has now set his eyes on no-frills, low-cost housing. The initiative, still on the drawing board, could be kicked off by 2010, reports Business Standard.

An RIL official said the company would do large projects and at multiple locations.

“RIL has deep pockets and excellent execution skills. It has executed two large projects like the Jamnagar refinery and the KG-D6 basin in a record time. Another such large project is only obvious for the company to get into,” a source close to the development was quoted as saying.

RIL holds a land bank of 5,000 hectares in Haryana through Reliance Ventures, a subsidiary of RIL created by forming a joint venture with Haryana State Industrial Investment Development Corporation and over 4,840 hectares through the Navi Mumbai SEZ, in association with Cidco (the Maharashtra government’s industrial and township development arm), the report added.

“RIL is sitting on a huge land bank with regard to its special economic zones (SEZs) in various locations. It could be putting that to commercial use for mega housing projects in the no-frills category,” said an analyst from a Mumbai-based broking firm who tracks RIL closely.

Earlier this year, the Tata Group’s unlisted firm, Tata Housing Development Company, said it would invest up to Rs 100 crore in a 1,200-unit township at Boisar, on the outskirts of Mumbai, and would sell apartments at prices ranging between Rs 3.9 lakh and Rs 6.7 lakh. The company aims to build up to 15,000 low-cost homes over the next four years across several cities, including Mumbai, Delhi and Bangalore, it said.

Source : http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=5979&cat_id=1

Tatas to open 30 more Gateway Hotels by 2015

Tata group-promoted Indian Hotels Company (IHC) is planning to open 30 more hotels of its mid-segment premium brand ‘The Gateway Hotel’ chain by 2015.

At present, there are 20 Gateway Hotels across the country.

“This is our upscale chain. We are planning to open 13 hotels by 2012 and then scale-up operations to 50 by 2015 across the country,” said Monika Lakhmana, director (operations), Gateway Hotels.

The Gateway Hotels are positioned above IHCL’s economy brand ‘Ginger’ and below the Residency and Taj brands and would cater to a pan-India network of hotels and resorts offering all key services at competitive prices.

“We are looking at tier II and other smaller cities as they are growing and also plan to expand in places that attract more tourists,” said Lakhmana.

Of the 20 hotels under this brand, 16 hotels belong to IHCL and were rechristened as Gateway Hotels. However, the other four were new constructions.

Source : http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=5983&cat_id=1

Lodha Group unveils phase II of luxury project

Lodha Bellezza, a ‘By Invitation Only’ project of the Mumbai-based Lodha group, has announced the launch of the second phase of this super luxury project, consisting of two high-rise towers of 40 floors each.

“With Lodha Bellezza, we bring to Hyderabad a thematic affiliation to California style living, sky villas,” said Abhisheck Lodha, director, Lodha Group.

With only one sky villa per floor, Lodha Bellezza goes much beyond quality construction, making a definitive statement in opulence and luxury.

From helipads at the top of each tower, the wi-fi pavilions over the pools to the landscaping, every detail collaborates to provide a living experience that truly harmonises with international standards.

The group is developing over 25 million sq. ft of prime real estate spread over 27 projects. The group has recently expanded into Hyderabad with the launch of Lodha Bellezza, a super-luxury residential project.

Source : http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=5981&cat_id=1

NHAI identifies 10 mega projects worth Rs 45,000 crore

The government has identified 10 lucrative mega highway projects to be awarded to private developers. These projects, involving investment of Rs 45,000 crore, will be awarded in the next two years.

These projects covering 5,000 km will be awarded on a revenue-share basis, under which the developers pay a part of the toll earnings to the government, an National Highways Authority of India (NHAI) official said.

“Since these are lucrative projects from the point of toll revenues, we would award them on revenue sharing basis,” the official added.

The NHAI has already asked potential bidders to submit their initial ‘request for qualification’(RFQ) documents for two of these 10 projects spread over Rajasthan, Gujarat and Andhra Pradesh.

The RFQ for 6-laning of the 436-km Ichapuram-Rajahmundry project in Andhra Pradesh, involving Rs 3,550-crore, has already been issued, while that for six-laning of the 435-km- long Kishangarh (Rajasthan)-Ahmedabad section worth Rs 4,284 crore, will be issued shortly, said the sources.

The biggest project of the 10 projects is the about Rs 8,000 crore double-laning of the 700-km stretch between Amritsar in Punjab and Jodhpur in Rajasthan.

Source : http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=5993&cat_id=5

Godrej Properties may offer affordable housing at sub-Rs 15 lakh price points

Godrej Properties, the realty arm of Godrej Industries Limited is extremely bullish on the affordable housing market in India. The
company is mulling on the possibility of introducing housing facilities for the masses at price points below Rs 15 lakh per unit.

Godrej Properties executive director Pirojsha Godrej told ET, “We would like to take a push at prices below Rs 15 lakh. The demand in the sub-Rs 15-lakh (housing category) is unlimited. The opportunity there is very big.”

While Mr Godrej has been studying the low-cost or affordable housing segment in India, his company recently launched apartments in Kolkata starting at just below Rs 20 lakh and is now among several players including Tata Housing and Unitech that are concentrating on the rising demand for affordable housing.

The company has several residential projects in the offing with its latest coming up in Ahemdabad on 250 acres, which will also have sections catering to the affordable housing demand. The integrated township will have residential, commercial and retail spaces in approximately 14 million sq ft. Godrej properties has developed 23 projects, 60% of which are in the residential space; currently, 82 million sq feet of mixed use space is under development.

Making realty the fastest growing business for the Godrej Group, the company is concentrating equally on offering commercial space for the corporate.

Godrej Properties launched its first project in north India.

Godrej Eternia, a commercial space complex will come up on 4.04 acres in the industrial area of Chandigarh, equidistant from neighbouring cities of Panchkula (Haryana) and Mohali (Punjab). The company will invest Rs 200 crore for developing 6.8 lakh sq ft that will be rented out to large and small corporate houses based out of Chandigarh, large companies having offices spread across the city and industrial clusters like Ludhiana and Jalandhar that may have representative offices in Chandigarh. Godrej Properties has entered into a memorandum of understanding with Larsen and Toubro for developing of this project apart from its other future projects.

The company is scouting for more locations to expand its real estate business in the northern region including Mohali and Delhi NCR. Godrej

Properties has previously signed a MoU with group company Godrej and Boyce Manufacturing Co for using its available land bank of 75 acres in Mohali.
“We are evaluating our options to determine whether the Mohali site will house a commercial, residential or a mixed use project,” says GPL managing director Milind Korde. The MoU between the two parties is expected to become an agreement post GPL’s initial public offer which is estimated to hit the capital markets before the end of this calendar year. The Rs 600-crore that the IPO looks to mop up will be infused back in realty projects and partly to pay off incurred debt.

Source:http://economictimes.indiatimes.com/Markets/Real-Estate/Realty-Trends/Godrej-Properties-may-offer-affordable-housing-at-sub-Rs-15-lakh-price-points/articleshow/5240388.cms?curpg=2

Brigade plans budget housingBrigade plans budget housing

Brigade group, Bangalore-based real estate developer, is testing the waters of affordable housing with ‘Brigade Value Homes’ which it plans to launch in Bangalore. The company is looking to invest Rs 2,000 crore on building compact residential properties in the next four years.

The company will build low-cost residential projects on Kanakapura Road, Devanahalli Town, Mysore Road and K R Puram in Whitefield, totalling 10,000 homes with a base price in the range of Rs 10-26 lakh, of which 2,500 units will be available for registration in the first phase.

A one BHK flat of 500-550 sq feet costs around Rs 10 lakh to Rs 13 lakh. Two BHK with 850-900 sq feet is priced in the range of Rs 17 lakh to Rs 21 lakh while three BHK with 1,050-1,100 sq feet is priced at Rs 21 lakh to Rs 26 lakh. The company plans to launch the properties in the next 6-12 months.

“To a certain extent, the compact home project is a way to ascertain the demand for a specific location or a type of apartment. There is a huge demand at the bottom of the pyramid. With urban population expected to double in the next few years, we expect the demand for affordable housing to go up,” said M R Jaishankar, chairman and managing director, Brigade Group.

Funding for the new initiative will come through 1ô3rd each from internal accruals, customer advances and institutional funds. While the company has no plans to set up a subsidiary for low-cost housing, the Devanahalli project will be operated as an SPV with BCV Developers, a joint venture of Brigade Group and Classic Valmark. Other cities being looked at for future expansion under the affordable housing initiative are Mysore, Mangalore and Chennai. At Mangalore, the company has soft launched a residential project ‘Brigade Sparkle’ which will offer 230 units priced between Rs 18 lakh and Rs 25 lakh.

The Brigade group, with interests in residential, commercial property as well as hospitality is developing projects in these sectors and is expecting to get approvals for nearly 12-15 projects by March 2010. This includes projects in Hyderabad, retail property and business hotel in Chennai and SEZs in Mangalore and Kochi. It is developing close to 35 million sq feet presently and is looking to develop 12 million sq feet in the coming months.

Early this year, the company had spoken about diluting the stake of its wholly-owned susidiary, Brigade Hospitality Services (BHSL) for raising capital. Jaishankar said JP Morgan had been mandated for the purpose and that the company could look at a dilution of 25-30 per cent by the 1st quarter of 2010.

For projects in its hospitality sector, the company may look to raise Rs 300 crore to Rs 500 crore.

Source:http://www.business-standard.com/india/news/brigade-plans-budget-housing/376742/

Mahindra Lifespaces launches a premium residential community at Mahindra World City, Chennai

Mahindra Lifespace Developers today announced the launch of “Aqualily”, a premium residential community being developed within the Mahindra World City, Chennai’s most evolved and integrated city. Mahindra Lifespace Developers Limited (MLDL) is the real estate and infrastructure development arm of the $6.3 billion Mahindra Group.

Model rendition of an Aqualily property

“Aqualily” will be a perfect blend of villas, twin homes and luxury apartments nestled on a pristine lake with floor areas ranging from 1500 to 4000 sq.ft. Planned as a gated community with large residential units, lush green open spaces, wide roads, walkways and vibrant community interaction points, the project is set in a pollution free environment. Two club houses equipped with all the modern amenities, a large green lung space and several play areas provide the confluence points for the residents.

The project is being developed by Mahindra Residential Developers Ltd., a subsidiary of Mahindra Lifespace Developers Ltd. and Arch Capital, an Ayala Group company.

(From L to R) Sangeetha Prasad, COO, Mahindra World City Developers Ltd; Arun Nanda, Vice-Chairman, MLDL; Anita Arjundas, MD & CEO, MLDL; Anuj Malik, Director, Mahindra Residential Developers Ltd

Mr. Arun Nanda, Executive Director, M&M Ltd. and Vice-Chairman, Mahindra Lifespaces Developers Ltd said, “We envisioned Mahindra World City as a complete ecosystem where the work, living and learning spaces would coexist to offer an enhanced quality of life to its citizens. We have achieved significant milestones in this pursuit through creating work spaces which have world class corporates like BMW, Infosys, Wipro; and lifestyle amenities and facilities like the Mahindra World School, Apollo Clinic; as well as enhanced bus and train services. Aqualily represents a significant endeavour in offering international living in a picturesque environment. The local knowledge and trust of Mahindra Lifespaces and the international experience of the Ayala group will ensure that Aqualily offers a truly perfect, nature friendly living environment.”

Mahindra Lifespace Developers’ current projects include Mahindra Eminente at Goregaon, Mumbai, Mahindra Splendour at Bhandup, Mumbai, Mahindra Royale, Pune, Mahindra Chloris, Faridabad and Sylvan County at Mahindra World City, Chennai. The Company’s sales amounted to a sales value of Rs. 102 crores for the quarter and Rs 152 crores for the H1 F10 across its projects.

About Mahindra World City, Chennai

Mahindra World City is an award-winning, planned business city, designed on a work-live-learn-play format and spread over 1500 acres. The city has been conceived as a mixed use community with zones for business and lifestyle. The Business Zone provides modern working spaces with state-of-the-art plug-n-play infrastructure. The Business Zone comprises of Special Economic Zones (SEZ) for companies looking at catering to the global markets primarily through exports and a Domestic Tariff Area (DTA) for companies targeting the domestic market. The Lifestyle Zone, located in close proximity to the Business Zone will offer residential units, schools, medical centers, retail malls and recreation and leisure facilities amidst wide open green spaces and a clean, healthy environment.

Mahindra World City, Chennai is currently home to leading international and Indian companies like BMW, Cap Gemini, Infosys, Mindtree, Renault Nissan, Timken, TVS Group and Wipro among others. The project has attracted a cumulative investment of over Rs. 2500 crores and will see a total investment of over Rs 7500 crores when fully developed.

The Lifestyle Zone of Mahindra World City houses The Canopy, a commercial complex with banking, food and beverage facilities, an Apollo Clinic among other retail and leisure facilities and the Mahindra World School, a world class educational institution affiliated to the CBSE.

Mahindra World City is currently home to 15,000 employees of the companies based at the location, which strength is expected to cross 50,000 in the next 4 to 5 years. The new station at Paranur, completely renovated and refurbished by Mahindra World City in partnership with Southern Railways, acts as a convenient conduit for employee travel today.

Awards Won by Mahindra World City

American Society of Landscape Architects Honours Award for Master Planning for Residential Master Plan of MWC done by HOK Planning Group based out of St. Louis, USA. Citiscape Singapore Citation for most commendable mixed use Community development for Mahindra World City.

Notes to Editor

About Mahindra Lifespace Developers Ltd

Mahindra Lifespace Developers Ltd (previously known as Mahindra Gesco Developers Ltd) has been in the forefront of Urban Development in the country. A part of the US $ 6.3 billion Mahindra Group, the company enjoys a reputation of being the pioneer in the development of integrated business cities and delivering quality living spaces that not only offer its customers healthy living but also the comfort of fair and transparent dealings backed by the trust and credibility of the Mahindra Group. The Company has developed premium residential and commercial properties in Mumbai, Pune, Delhi, Chennai and the Mahindra World Cities at Chennai and Jaipur.

Source:http://www.indiaprwire.com/pressrelease/real-estate/2009111637639.htm

Althan, Khajod next in line for mega development

SURAT: Twenty-first century’s first decade saw huge development in city’s Adajan-Rander and nearby areas. Althan and Khajod that saw very little by  way of actual development have now begun to witness boom with real estate market shifting to the stretch towards Navsari.

It is only natural that the new residential localities are set up on this stretch if planners hope to realise their dream of a Surat Navsari twin city by 2025 with a projected population of 1.15 crore.

“These areas are buzzing with activity after sanctioning of final town planning (TP) scheme No. 36 and four preliminary TP schemes. The next decade will see a huge movement of middle class people to Althan and Khajod,” said Jivan Patel, director of planning (DOP), Surat Municipal Corporation. (SMC).

Areas like Abhwa, Bhartanana and Bhimrad-Sarsana near the university will also see a lot of development.

“Land has almost exhausted towards Dumas, Bhimpore, Adajan- Pal and other areas near the industries of Hajira. Therefore, these areas are now witnessing development riding on the progress of BRTS corridor, Sachin and Trade Centre projects,” said a builder who has a five 40-metre tower projects at Althan.

South Gujarat Chamber of Commerce and Industries (SGCCI) president Nilesh Mandelwala said, “The Trade Centre project, which has helped development in the area around it, will hopefully be completed by December 2009. If builders are to be believed, this area could become Navi Mumbai of Surat.”

The Trade Centre, located near Sarsana village, will have 1.16 lakh sq metre pillarless airconditioned hall with a 90 +35 metre pillarless dome.

http://timesofindia.indiatimes.com/city/surat/Althan-Khajod-next-in-line-for-mega-development/articleshow/5233470.cms

DLF Developer Bangalore:DLF Westend Heights Bangalore

DLF Westend Heights Projects:
DLF brings its new residential project Westend Heights New Town in Bangalore. DLF Westend Heights New Town offers 2 & 3 bedroom apartments ranging from 1085 to 1820 square feet. It is G+19 storeys with excellent amenities. DLF New Town is a premium residential township with a appending Spanish style of architecture against a backdrop of fabulous gardens. It features an open-layout with buildings being placed in a manner that there is no overlooking and most of the apartments enjoy the views of structured landscaping.

Location of Westend heights
3.5 km from Apollo Hospital, 4 km from IIM-B, 6.5 km from Jayadeva Flyover, 8 km from Electronics City, 9.5 km from Forum Mall, 13 km from MG Road, 16 km from Railway Station / Bus Stand, 50 km from Airport

Common Amenities of Westend heights
Gym, Swimming Pool, Banquet Hall, Cctv, Spa, Restaurants, Beauty parlor, Healthcare Centre, Shopping Complex, Play Ground, Iptv, Intercom facility, Earth Quake Resistant, 24 hrs power back up, 24 hrs water supply, Water treatment plant, Municipal water and Rainwater harvesting.

About DLF Developer
DLF is the largest real estate company in India. The group has over 224 million sq. ft. of existing development and 751 million sq. ft. of planned projects. DLF is committed to quality, trust and customer sensitivity, and deliver on promises with agility, financial prudence and in tune with the highest global standards. The company has also entered into several strategic alliances with global industry leaders.

About Affinity Solutions (P) Ltd
Affinity Consultant is a Real Estate Consultant in India operating since last 10 years. Affinity Solutions have a team of dedicated professionals with more than 10 yrs of experience in real estate services handling the entire project in India. Affinity Solutions (P) Ltd. is a paramount name among Indian real estate consultants and service providers with all leading brands likes DLF, Unitech, Jaypee, Ansal, BPTP, Parsvnath, Mahagun, Omaxe, Emaar MGF, Eldeco, Indiabulls, Amrapali, Mantri, Lodha, Indu, Kolte Patil, Ramprastha, TDI, Uppals etc.

http://www.bignews.biz/?id=823430&keys=DLFgroup-DLFRealEstatesinBangalore-DLFprojectsBangalore-WestendHeightsprojects

Godrej Properties Ltd launches its first residential project in Kolkata

Godrej Properties Ltd launches its first residential project in Kolkata

Chennai, November 5,2009: Godrej Properties RELATED ARTICLES Let’s not think stimulus will be withdrawn at once: Govt
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Ltd. (GPL) has launched its first residential project in Kolkata. Named Godrej Prakriti, this project combines modern apartments with beautiful landscaping and ample open spaces.

Located in Sodepur on Barrackpore Trunk Road, the project has excellent rail and road connectivity and benefits from the fully developed infrastructural facilities around it such as schools, hospitals and educational institutions. The company has tied up with Larsen & Toubro for the construction of the project.

This complex is set in over 24 acres of greenery and has natural water bodies which the company plans to preserve.

Customers will have the options to choose from a range of 2, 2 plus study, 3 BHK and Duplex apartments with areas ranging from 900 – 1800sq.ft. Facilities such as Community Centre, Club House, Swimming Pool, Library, Gym etc. are also planned within the complex.

This is the third project by Godrej Properties in Kolkata. The company is already developing two IT Parks, Godrej Waterside and Godrej Genesis, in Sector V, Salt Lake.

Announcing the launch, Mr. Milind Korde, Managing Director, Godrej Properties Ltd., said “We are excited about launching our first residential project in Kolkata. Our endeavor is to offer homes and not just living spaces. We intend maintaining a healthy balance of natural elements within the complex so as to make Godrej Prakriti an address to be proud of.”

About Godrej Properties Ltd.:

Godrej Properties Limited was established as a Real Estate Development company within the Godrej Group of businesses. The company is developing Residential, Commercial and IT projects across cities like Mumbai, Pune, Bangalore, Kolkata and Hyderabad. Apart from consolidating in the existing cities, the company has entered into/ is entering into MoUs for expansion into other locations.

“Godrej Properties Limited is proposing, subject to market conditions and other considerations, a public issue of its equity shares and has filed a Draft Red Herring Prospectus with SEBI. The Draft Red Herring Prospectus is available on the website of SEBI at www.sebi.gov.in and the respective websites of the BRLMs at www.icicisecurities.com and www.kotak.com.

Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, see the section titled “Risk Factors” of the aforementioned Draft Red Herring

http://www.mydigitalfc.com/corporate-releases/godrej-properties-ltd-launches-its-first-residential-project-kolkata-698

TDR prices getting too hot for realtors

Mumbai: As real estate prices increase across the city, the price of transfer of development rights (TDR), too, has started reaching for the sky.

Going by TDR brokers, the increase has been particularly noticeable in the western suburbs. TDR prices have increased to Rs 2,700 per sq ft in Bandra to Santacruz, and to Rs 2,500-2,600 per sq ft between Santacruz and Borivali.

The central suburbs aren’t far behind. TDR prices in Chembur, too, are near Rs 2,700 per sq ft and in suburban areas like Mulund to Bhandup, at around Rs 2,450-2,500 per sq ft.

“TDR is now selling at Rs 2,600 per sq ft,” Sarang Wadhawan, managing director, Housing Development and Infrastructure (HDIL), said on the sidelines of the Ficci realty summit here.

At the end of the first quarter this fiscal, HDIL had started selling TDR for Rs 2,100 per sq ft. In just four months, prices are up 29%, Wadhawan said.

“Though TDR prices have been hiked so much, there is no sale at all due to price hike. Earlier, the developers didn’t have any liquidity to buy TDRs when prices had fallen to as much as Rs 830 per sq ft. Now, as projects are selling and prices have been hiked, the TDR cartel is back,” a leading TDR broker said.

Last month, when DNA Money ran a survey, TDR prices were found to be around Rs 2,545 for Bandra to Santracruz and Rs 2,300-2,400 beyond Santacruz.

“If developers enter at such high levels, then project rates are bound to go up and buyers would not have any option but to pay. I don’t think at this time developers can shell out or will shell out this much as they have burnt their fingers badly,” an analyst tracking the sector said, preferring anonymity.

source:http://www.dnaindia.com/money/report_tdr-prices-getting-too-hot-for-realtors_1312151

Samira Pavilions: A high end projects of 187 villas

Alibag is a dream destination for the city it’s closest to — Mumbai. Ten minutes in a speed boat and you can hear birds instead of speeding cars honking, long branches of old banyan trees sweep the roads to welcome you to the idyllic, verdant world of Alibag. A place, which has been attracting some very high-end real estate development over the last few years. In fact, Alibag is fast becoming the most fashionable address to have closest to Mumbai, since Goa is more than a few hundred nautical miles away.

Samira Pavilions is one of these very high end projects of 187 villas, with seven villas being designed by none other than Kolkata designer Sabyasachi Mukherjee, two of which will be ready in Phase I, which comprises 56 villas and the clubhouse and aims to be ready by December 2010. The buyer who chooses to go for Sabyasachi’s design has the option of sitting with him and designing along side with his preferences included, says Mihir Nerurkar, executive director (projects) — Samira Habitats. “It takes a lot to develop a project that is out of this world. We have been trying to do that at Samira Habitats over the years,” says the young ED whose company is investing close to Rs 200 crore in the project.

The villas come in options of a 2BHK of around 2,000 sq ft and 3BHK of around 3,000 sq ft super built up area, both of which includes private gardens and deck areas as well. Apart from elegant internal courtyards, water bodies and external open decks, Samira Pavilions will offer ample space to lounge in the project. The state-of-the-art club house and lavish spa will only add to the luxury and opulence of this project, coupled by the allure of a very popular location like Alibag.

At a price range of Rs 90 lakh and going up to Rs 5 crore, the target audience is naturally, the CEO, MNC heads and the HNIs. This is where the young Nerurkar is confident of the response to the project. With 50% of his Phase I sold, he is sure that with project partners like Knight Frank with their global reach and expertise “will add much value to our fine living project.”

As for the logistics, Knight Frank handle both marketing and management for the elegant duplex villas project. The project has a speed boat service and also includes clubhouse, luxurious spa and various other amenities for its residents. The last mile connect is really the key to the project as by introducing convenient speed boat services, this project will be the first of its kind to bridge distances by tapping the waterways and presenting a new dimension to lifestyle living. In fact, a home in Alibag maybe closer from the heart of Mumbai than most suburbs!

Source:http://economictimes.indiatimes.com/features/the-sunday-et/property/Samira-Pavilions-A-high-end-projects-of-187-villas/articleshow/5231644.cms

Now, towards ‘affordable offices’

The last one year has been a revelation for the IT space developers and their tenants, the IT companies. The global economic slowdown woke them up as IT companies realised that the days of adding space irrespective of cost were over for good.

Developers have realised that increasing lease rates of cash-rich IT companies could no longer be taken for granted.

Aggravating the situation for developers has been the large-scale demand for a cut in lease rates by occupiers, including IT companies and retail players as they saw their business shrink in the face of the economic slowdown.

Developers and tenants will now look at increasing efficiency of space to make ‘affordable offices’ along the lines of the affordable homes, they say.

Employee strength

Take, for instance, the case of the ‘largest occupier in Chennai’ Tata Consultancy Services, a company that in the last 10 years has gone from an employee strength of over 14,000 associates to about 1.4 lakh. The net additions in recent years have been about 20,000 annually, an increase of about 20 per cent year on year till last year. This year it estimates to add 1 per cent to its work force, according to Mr R. Siddarthan, Head, Chennai Operations, TCS.

On an average IT companies add 45 sq.ft of space per employee TCS does not see the need for more space, he says.

Addressing Estate South 2009, a seminar on the state of real estate sector in South India, he said, the IT industry is under pressure to cut back on costs to meet the demand of their customers and suppliers. There has been pressure on margins and the operation costs have been high since the end of 2008 as customers cut ‘ad hoc’ the projects by 30-40 per cent. Projects were simply put in the cold store, he said.

IT companies that had taken for granted the need to provide for 30 per cent growth had realised that in the changed situation lease contracts providing for 15-20 per cent escalation in rents were no longer viable. So the companies go through a lease ‘line-by-line’ to keep costs down.
Market conditions

Today, buildings are valued by current market conditions rather than past transactions. The focus will be on increasing the efficiency of space utilisation — one physical seat per three employees (each working an eight-shift) rather than the other way around in anticipation of incoming new employees, he says.

Developers will have to look at creating flexible spaces with modules that can cater to small and large players, he says.

At the seminar organised by the Confederation of Indian Industry, Mr Jagdeep Singh Marwaha, Vice-President, Leasing, RMZ Corp, a leading developer of IT space, quipped that property consultants had discovered a new line of business in the last one year — renegotiating lease deals for their clients. Developers will now have to adjust to the new market conditions. Large IT players who provided for over 160 sq.ft per employee were now looking at 70-90 sq.ft. Even global players not cutting down on workspace are looking closely at accessory space like meeting rooms.
Spread the portfolio

As IT companies moved out of CBDs (central business districts) to larger and cheaper accommodation, elsewhere smaller players were looking at the CBD location for a lower cost. Companies which had demanded First Right of Refusal for new development had let go the spaces which are now adding to the surplus. This has hit growth and new investments, Mr Marwaha said.

With the commitment to keep lease rates down companies simply would not be able to make a profit if they are not on ‘old land,’ he said. Developers need to spread their portfolio and not restrict themselves to a single segment.

Source:http://www.thehindubusinessline.com/iw/2009/11/15/stories/2009111550821500.htm

DTC Plans To Come Up With Commercial Complexes

The Delhi Transport Corporation (DTC) plans to develop commercial complexes like luxury hotels and restaurants at its inter-state bus terminals across the city. The transport department of the city government has already sent a proposal to the Union Urban Development ministry seeking its permission to use DTC bus terminals for commercial purposes. “We have sought permission from the Central Government to allow construction of commercial complexes in the premises of DTC bus terminals,” Delhi transport minister, Mr. Arvinder Singh Lovely said. “The DTC has been incurring loss of nearly Rs560 crore annually. So, we must find ways to improve the finances of the corporation,” he added. According to the latest audit report, DTC’s accumulated loss stood at over Rs 6,500 crore in March 2009.

Source:http://mail.google.com/mail/?shva=1#inbox/124f28cafce1b171

Bank of Rajasthan slashes home loan rates to 7.50 per cent

Bank of Rajasthan, one of the oldest, technology driven and customer friendly private sector bank, has announced reduction in interest rates on home loan under “Apna Ghar Scheme” with effect from 09.11.2009.

Mumbai, Maharashtra, November 13, 2009 /India PRwire/ — The rates have been cut for the home loans up to Rs. 30 lakhs and over Rs. 30 lakhs at floating interest rates.

For housing loans up to Rs.30 lakhs, the floating interest will be charged at the rate of 7.50% per cent for the first year, 8.50% for the second and third year and 8.75% for 4th year & onwards, which is applicable for all maturity periods on the fresh loans.

For housing loans of above Rs.30 lakhs, the floating interest will be charged at the rate of 8.00% for the first year, 9.00% for the second & third year and 9.75% for the fourth year onwards, for all maturity periods.

About Bank of Rajasthan

Established way back in 1943, Bank of Rajasthan is one of the fastest growing private sector banks in the country, which has made rapid strides by making consistent profits for past several years. With a wide network of 463 branches in the entire length and breadth of the country, Bank of Rajasthan has emerged as one of the largest private sector banks in the country. The bank has made tremendous and historical progress during the last few years. The Bank has over 2 million customer base and offers ATM facilities at over 53,000 ATMs of all banks across the country. All the branches of bank spread over 286 cities across India in 22 states and 2 union territories are offering online services. The bank has covered 125 cities in Rajasthan alone.

Financial Highlights of Bank of Rajasthan

The bank had maintained its growth in net profit for the previous financial year 2008-09 as well. The net profit of the bank increased to Rs. 118 crore for the year ended March 31.2009 as against Rs. 115 crore for the previous year.

Source:http://www.indiaprwire.com/pressrelease/financial-services/2009111337514.htm

Realty developers avoid tier II, III cities, prefer Delhi

With price corrections and softening of interest rates setting in, real-estate developers are keen on investing in Tier I cities, or metros such as Delhi, Mumbai and Bangalore. “Almost all realty developers are focusing back on Tier I cities as they believe that as of now, expanding to medium and small cities is on shaky ground. Some investors, on the other hand, are wary about working in Tier II and Tier III markets in the short term. They believe fundamentals in these markets with regards to economic activity and consumer base will take some time to mature,” a Ficci-Ernst & Young report said.

According to the report, Delhi continues to be the preferred choice of developers and investors in the real-estate sector, with Mumbai a close second. Some key factors that have helped Delhi retain the number one rank are the fast-paced improvements in physical infrastructure such as the functional metro railway, modernisation of the international airport, road widening projects and dedicated efforts to make the ring roads signal free. Other factors are the emerging flyovers, underpasses, pedestrian walkways, high capacity buses, hotels and townships being developed on account of the forthcoming Commonwealth Games.

http://www.indianexpress.com/news/Realty-developers-avoid-tier-II–III-cities–prefer-Delhi/540862/

Mahindra Residential launches premium villa project

CHENNAI – Real estate developer Mahindra Residential Developers will construct 760 dwelling units comprising villas and apartments on an outlay of Rs.400 crore at Mahindra World City near here.

“In the first phase, we will be building four types of villas numbering 150 units, and later construct 610 residential apartments,” said Mahindra Residential executive director and vice chairman Arun Nanda.

“The total project cost is Rs.400 crore and it will be an equal mix of equity and debt,” Nanda told reporters here Thursday.

Mahindra Residential is a joint venture between Mahindra Lifespaces, the real estate arm of the $6.3-billion Mahindra group, and private equity fund Arch Capital, part of the Philippines-based Ayala Corp.

Nanda said the villas and apartments would be leased out for 99 years and not sold outright.

“Leasing may be new to the Tamil Nadu market. But in New Delhi and Mumbai, government agencies only lease out. Our lease is for 99 years and it is as good as a sale,” he said.

The project is being built over 55 acres.

The cost of the villas and twin houses range from Rs.1 crore and to Rs.1.75 crore while apartments would be priced Rs.40 lakh onwards.

http://blog.taragana.com/n/mahindra-residential-launches-premium-villa-project-226944/

Krishna Palace Residency plans two budget hotels in South India

Mumbai-based Hotel Krishna Palace Residency’s Managing Director Krishna Shetty is planning to expand his hospitality portfolio in South India. As part of the expansion plans, two budget hotels will be developed in Mangalore and Udipi in Karnataka. Land parcels have been acquired for the same. The construction of the Mangalore property will begin in 2010 and is expected to begin operations within two years hence. An investment of Rs seven crore for development of each property has been earmarked. The properties will be developed under the brand name Krishna Palace.

Suresh Shetty, Director, Krishna Palace Residency stated, “Since the hotel will be in the budget segment, we will cut short on the food and beverage facilities. The Mangalore property is located on the beach front; hence the clientele will be a good mix of both corporate and leisure. Over the years of operations in the hospitality industry we have realised that it is difficult to sell a luxury property to corporate clientele. This trend has prompted us to move to the budget segment. As part of future plans we aspire to expand the brand to Pune, Nagpur and Nashik.”

The hotel company’s flagship property, Hotel Krishna Palace, Mumbai is a 63 room property catering to the corporate clientele. The property recently started operations of a fine dine multi cuisine restaurant ‘Flute’ within the hotel. The hotel will also develop an open air Lounge Bar over a 4,000 sq ft terrace, which is expected to start operations by mid 2010. The hotel also houses the company’s signature restaurant ‘Sudama’, offering Indian, Chinese and South Indian restaurant. Shetty aims to take this concept forward and replicate it in the other properties being developed by the chain. Besides its hotels, the company also manages several restaurant chains. However, it now plans to shift focus from restaurant business to hotels and focus on its growth in the hotel segment, informed Shetty.

Currently Hotel Krishna Palace receives about six per cent bookings through the online medium. With an aim to increase its presence in the online space, it is now undergoing several initiatives for search engine optimisation and increase in partnerships with online travel agents.

Source:http://www.travelbizmonitor.com/krishna-palace-residency-plans-two-budget-hotels-in-south-india-8816

Bangalore realty sector fails to benefit from low-cost housing

Bangalore: Bangalore’s real estate market continues to groan under the burden of unsold property and sluggish demand, even as a revival in property sales in other cities has encouraged developers to launch a slew of projects.

Nearly one in every five homes scheduled for completion by the end of this year remains unsold, according to a report released last week by DTZ International Property Advisers Pvt. Ltd and Indiareit Fund Advisors Pvt. Ltd, a private equity fund. For projects scheduled for possession in 2011, this figure jumps to 56%.

DLF Ltd, Unitech Ltd and Housing Development and Infrastructure Ltd have started launching projects in Mumbai and New Delhi, particularly in the “affordable category” that has residences priced under Rs30 lakh.

The recovery may take longer in Bangalore, the country’s third largest realty market, where big technology firms such as Infosys Technologies Ltd and Wipro Ltd are headquartered.

“Bangalore has continued to witness a correcting trend as the investor community hasn’t quite revived activity yet,” said Aditi Vijaykar, executive director, residential services, at property advisory Cushman and Wakefield.

While the growth in Mumbai and New Delhi is driven by multiple sectors, growth in Bangalore is largely dependent on the technology sector, she pointed out.

Interestingly, lower prices, to the tune of 25-30%, hasn’t pushed up demand in the city, both developers and analysts said. For instance, Whitefield, a suburb in east Bangalore and close to a prominent information technology (IT) hub, saw sluggish sales even after prices corrected by nearly 30%.

“The affordable concept didn’t work as much in Bangalore as it did in Delhi or on Mumbai’s outskirts,” said Prakash Gurbaxani, managing director of QVC Realty Ltd, a property developer. “Prices in Bangalore are lower but home sales and office sector take a direct hit when IT firms stop expanding and the sentiment is negative.”

Unlike Bangalore, where prices are still falling, realtors in Mumbai, New Delhi and Gurgaon have already raised prices between 5% and 10% on the back of rising sales.

Starting July, Lodha Group increased prices by 10% and Unitech by a flat 2% after the latter sold 4 million sq. ft in three months and Lodha’s mid-income flats got good customer response.

“Restricted supply has boosted demand in Mumbai in the past months, price checks and mid-income projects by big developers have worked for Delhi,” said Kumar Gera, chairman of Confederation of Real Estate Developer’s Association of India, an industry lobby. “Bangalore will see a revival only by 2010.”

Bangalore also has a problem of over supply, which doesn’t bother metros such as Mumbai and Delhi. According to the Indiareit-DTZ report, there are around 51,470 residential units across 193 projects coming up in east and south Bangalore, where 66% of under-construction projects are located, which would take the total stock to 122,431 homes by 2011.

Besides a few low-cost projects, larger developers in Bangalore such as Sobha Developers Ltd and Puravankara Projects Ltd have stayed away from fresh launches and are focusing on selling inventory.

After a hiatus of 18 months, Sobha is only now planning to launch a residential project in the next two months, and Puravankara doesn’t have any Bangalore launch in the pipeline after launching its mid-income project in Chennai.

Growth corridors such as areas near the new international airport also haven’t really turned out as expected. Although most developers have picked up land parcels in the area, few projects have been launched.

Tangible effects of the slowdown in construction activity would be visible in 2010-11, the report said.

source:http://www.livemint.com/2009/11/11222710/Bangalore-realty-sector-fails.html?h=B

Builders in IT hub to focus on middle, upper middle segments

After almost a year of lull due to the economic downturn, the real estate sector in the country’s IT capital is slowly picking up and is all set to focus on the middle and upper middle segments, where it envisages huge potential.

Customising their offerings, builders are keen to capture these segments, which are witnessing increasing demand.

For Mantri Developers Pvt Ltd, “the recession for all practical purposes is over as far as the real estate sector in the city is concerned”.

The Bangalore-headquartered group, which has been in the business for over 10 years, admitted that there was “slackening in demand from October 2008 to 2009. Prices had hit rock bottom and customers were holding back, anticipating further slash in rates”.

But post-April, there has been a surge in sales in the industry as customers realised that “there would be no further decrease in prices”, an official of the firm said on condition of anonymity.

The firm, which is looking at the upper middle class and high-end segments, sees a rise in demand in both, more so in the upper middle category.

“However, despite the slowdown, demand never slackened in the high-end segment”, the official said.

The firm’s two ongoing projects, one in the high-end (ranging from Rs one crore to Rs 10 crore) and two in the upper middle class segments (priced at Rs 35-70 lakh) will be completed in another six to eight months.

“Thanks to the slowdown, it is the genuine buyer who is coming forward now instead of the investor. These buyers want the reassurance of reputed brands which are cash flow positive and the pace of progress is visible”, the official said.

The firm, which has also taken up projects in Chennai and Hyderabad, rates the Bangalore market as the “best”, compared to Hyderabad where is it is “reasonably good” and Chennai where it is “picking up”.

Shahwar Pasha, Assistant General Manager, Business Development, Prestige Group, echoed similar sentiments about a resurgence in the market. “It is the end-user, the actual buyer who is ready to buy now”.

The Group, which was earlier targeting only the luxury market (Rs 75 lakh- Rs six crore) is now “seriously looking at the middle and upper middle segment as enquiries are for affordable homes”.

Pasha, who feels the “demand for the high-end is a little less”, hopes the market will be vibrant by the middle of next year.

Expressing a slightly different view, Pradeep Jacob, Marketing Manager, Confident Group said “demand for apartments has bottomed out in the last nine months. The demand for apartments is flat now”.

The four year-old group, he says, has been successful because they have focused on plots, townships and low-budget (Rs 17-20 lakh) and middle category flats (Rs 30-40 lakh).

“Our low budget and middle segment flats’ sales have been good because they are within a 10 km radius of IT companies”, Jacob said.

The group, which has catered to a “diversified segment,” including the high-end in the form of villas, says it has “not witnessed any decrease in demand for villas”.

Suresh Goel, who handles marketing for Salarpuria, the Kolkata-headquartered firm which has been in Bangalore for the past 19 years, says the firm intended to take more projects for the middle segment as it sees “a growing demand” there.

The firm, which has two middle category projects in Bangalore North has witnessed “maximum sales in those”, he added.

Source:http://www.business-standard.com/india/news/builders-in-it-hub-to-focusmiddle-upper-middle-segments/78014/on

High-tech townships back in vogue; developers & investors aim high

A wave of technological innovation seems to be gripping the real estate sector. High-tech townships, which promise an advanced lifestyle for residents, are catching the fancy of many developers. Developers such as Omaxe, The 3C Company and The Chadha Group are offering such technologically advanced townships.

But in what way are these really different from an integrated township? Sanjay Dutt, CEO-Business of global real estate consultancy Jones Lang LaSalle Meghraj (JLLM), says the first real proposals for high-tech townships started rolling in around 2005. “At first, they were in direct response to the evolving housing requirements of IT professionals in India.

During the height of the IT boom, a home in a high-tech township was considered de rigueur by the upper echelons of the software industry. The concept has evolved since then and has simply come to stand for technologically-enabled lifestyle homes in a more generic sense. These are considered powerful demand generators that have the potential to attract foreign and domestic investment and boost the general profile of a locality.”

A lot of these townships are coming up in Uttar Pradesh after the state government’s policy in 2003 to promote development of high-tech townships with better quality of living, work and entertainment facilities. Considering the acute shortage of housing and infrastructure services, the state government announced an open-ended hi-tech township policy in May 2006 to promote private investment through development of varying sizes of such townships.

Developers like Omaxe are coming up with these townships in Allahabad, Bulundshahar and Lucknow. Its township in Lucknow, spread over 2,700 acres, will be executed over 5-7 years. With a central business district (CBD) within itself, the township will create effective employment opportunities in specially designed finance, trade and commerce development zones. A commercial hub, the township is also going to have software technology parks, hi-tech industrial parks and scientific and engineering instrumentation zones.

Similarly, its township in Allahabad will entail an estimated investment of Rs 1,800 cr and would be developed over around 1,535 acres. The project would be developed as a modern, eco-friendly high-tech township comprising residential, commercial, industrial, institutional and recreational segments. Says Rohtas Goel, CMD, Omaxe, “The development of such new townships will lead to effective management, efficient utilisation of natural and financial resources as well as promote decentralisation of large cities. Moreover, they will act as centres of high tech industries, commerce, services and assist in the creation of a new economic structure.”
Residents staying in such townships can hope for a variety of benefits, advanced security and maintenance systems
being the most obvious ones.
They also boast of a more comfortable lifestyle with superior infrastructure and better health, IT and banking services.

Real estate developer
The 3C Company’s upcoming project Lotus Boulevard in Sector-100 of Noida is also under the category of high tech townships. Priced at Rs 3,025 per sq ft, the project offers apartments of different sizes — from 987 sq ft to 2,560 sq ft. All the buildings in this project will be zero-discharge buildings.

Solid waste management and waste segregation systems are some of the other prominent features of the project. Says Vidur Bharadwaj, director, The 3C Company, “Usage of technology to reduce the consumption of energy is the need of the society. Even for a developer, such features keep the maintenance costs low, the benefit of which is ultimately passed on to the end user.”

Similarly, Delhi-based developer, The Chadha Group will be developing Wave Hi-Tech city, a high-tech township in Ghaziabad expected to come up over four years. The township will have features such as a pollution-free transport system, high security, scientific disposal of solid waste and wi-fi connectivity throughout the city. While these townships rank high on technological features and benefits to residents, some feel that their success will to a large extent depend on employment opportunities available in the vicinity as well as the public transportation system.

“These townships will attract buyers provided employment opportunities are available, otherwise they will become part of real estate speculation and people will not prefer to stay in them. Hence, to make these viable, the government of respective states and private developers have to ensure that employment is not a constraint,” feels Manoj Goyal, vice-president, strategic planning and group company secretary, Raheja Developers.

Agrees Dutt of JLLM who says that it’s definitely not a sellers market for these right now and they will have to differentiate themselves to succeed. “High-tech residential projects will have to differentiate themselves convincingly to cash in on the mid-to-high market. In the current times, buyers are extremely budget conscious. That said, there is still a class of aspirational buyers with sufficient funds, but they have a lot of options to choose from. Differentiation will be the key.”

Source:http://economictimes.indiatimes.com/Features/The-Sunday-ET/Property/High-tech-townships-back-in-vogue-developers-investors-aim-high/articleshow/5208228.cms?curpg=2

Banks likely to continue same home loan interest rate

THE RESERVE Bank of India has walked out from its year-long accommodative monetary policy but the leading public and private sector banks still want to continue their cheap home loan schemes.

India’s largest lender the State Bank of India is looking forward to continuing its special home loan scheme after 7 November, when the bank is supposed to call it back. However, the bank has not announced the extension of the tenure of the scheme. The bank is providing home loan at an interest rate of 8%, from Rs. 5 lakhs onwards.

On the other hand, the Punjab National Bank has declared that they are stretching their Festival Bonanza Offer-2009 for housing and car loans till 31 December this year. The bank is providing home loans up to Rs. 30 lakhs at an interest rate of 8.5% for the first three years and at 2 to 2.5% below BPLR in subsequent years of loan tenure under the floating option.

The third largest private lender of the country, Axis Bank is aggressively promoting its home loan segment. The bank is providing home loan at an interest rate of 8% for the first year, whereas from the second year onwards, the loans will be carrying a floating interest rates that is entirely dependent on the bank’s mortgage reference rate.

Axis bank is also organizing ‘Home for All’ expos in major cities, following its huge success last year and will be providing on-spot approval along with waiving loan processing fees for prospective buyers. The first of this fair will be held in Bengaluru from 6 November, 2009.

source:http://www.merinews.com/article/banks-likely-to-continue-same-home-loan-interest-rate/15787700.shtml

Villas and suites away from home

The golf course is like a meandering stream, a narrow length that curves and cavorts mischievously across Manesar’s scrub countryside, its algae-green lushness dappled with shadows as hillocks and ponds rise and dip. This is the countryside as Graham Cooke sees it, ordered and lush and not anywhere remotely Indian. But then, this is the newest of the gated communities that has been developed on the outskirts of Delhi, ahead even of Gurgaon, with 300 “villas” that fringe the course, though in truth they seem less like villas and more like row houses. Not one of them is more than double-storey and they range from studios to two- and three-bedroom homes, with a basement thrown in for good measure. Frangipani trees, four or five years old, dot the courtyards. The slanting light of the winter sun warms walls that are in neutral shades of earth colours. In the distance, the Aravalli hills break the horizon into a jagged line.

Manesar was another milestone on National Highway 8 that became an address when industries, a management school, a highway McDonald’s and, later, residential apartments began to indicate a future. Developers saw an opportunity in the vast swathe of fields. ITC was an early mover with its Classic Golf Course, which soon became a favourite with corporate houses and chiefly expatriate players. Close by, and next to McDonald’s, Karma Lakelands, conceived as a retreat for the retired who wanted to live around, naturally, yet another golf course, ended up as a villa community for the well-heeled. And surrounded by real-estate developers rapidly scheming up highrise condominium complexes, Tarudhan Valley is part of what on the map appears almost a contiguous development of second or third homes for the city’s rich and powerful.

Tarudhan Valley has been developed by Sanjay Khullar, better known as the managing director of the capital’s leading catering service, Seasons Group, the company not only responsible for banqueting services but also for a host of speciality restaurants. At the heart of the gated community is a facility that anyone can avail — a 56-room Seasons Hotel, designed by Manish Kumar Baheyti. The resort, like the row-villas, is low-structured, with white interior walls and dark wood finishes, all rooms overlooking either the golf course or a swimming pool. A fountain-punctuated lagoon winds between the rooms; the minimal interiors do not lack in comfort but the effort appears to be to get guests to spend the maximum time outside rather than in the rooms; the deliberate lack of context means the resort could be anywhere in Spain, the US or South Africa.

Tarudhan Valley is located 10 km down a rutted country road, but pretty much on the highway, at Select Heritage Village, the context is much more in evidence. Built around courtyards, with jharokhas and archways and jaalis, is architecture that evokes the tradition of north Indian havelis. The resort, recently renovated, had last year added two new blocks of rooms and suites planned around the same central theme of village-street architecture and local architectural traditions, the use of red sandstone on the fascia and more contemporary rooms (and baths) being the major change over its earlier avatar.

Also built around courtyards, the suites have private sit-outs, the street furniture consists of hammocks or charpais or day beds, or antique-style sofas, and within the sense of community, the spaces have been designed to offer privacy.

But last week, the resort added another facility to its organically growing building architecture. Right next to the conference centre (also new), its Aruna’s Svaasa spa has created a destination getaway for the resort that not only adds to its facilities but has introduced an element of high-end luxury to it. The spa building echoes the new elements in the architecture — there’s use of red sandstone on the outside, water pools with fountains evocative of the Seasons Hotel, and within, a sense of space and comfort within its meandering massage rooms, the hamam and lounging central bay, all of it dimly lit, the darkness relieved only by hundreds of twinkling tea-lights.

Manesar’s unique location makes it ideal for Dilliwallahs looking for a break. For most, it is an hour’s drive from the city in non-peak hours, which makes it eminently accessible for those wishing to get away for a night or a weekend, whether for relaxing in a spa, or playing a round of golf, or simply relaxing. It is sufficiently far to make it impractical to own a first home, but Tarudhan’s row-villas are ideal second homes, especially since its developer, the Seasons Group, is able to manage not only the maintenance but also catering services, so you don’t have to use the kitchen. A Club House has a restaurant and a separate pool, while the resort caters to those who have not opted for a villa but would still like to escape from the highrise of Gurgaon or the congestion of Delhi. BothHeritage Village as well as Seasons also have separate conference and banqueting venues.

Amidst ficus and frangipani and surrounded by bright bougainvillea bushes lit by the winter sun, Manesar is accessible luxury for Dilliwallahs. That it comes with strong, if contrary, elements of design is simply a bonus.

Source:http://www.business-standard.com/india/news/villassuites-awayhome/375575/

Birlas to foray into hotel industry

KOLKATA: For the first time in their close to 100-year history, the Birlas are entering the hospitality arena. The Birla Group – a part of
corporate folklore in the country, along with the Tatas – is going to set up its first hotel on a closed mill plot in Mumbai.

Although the Birla empire – spread across the various family groupings (BK, AVB, KK, CK, SK, Yash and MP Birla groups) – pretty much covers the entire business spectrum, from textiles, metals and cement to automobiles, tea, IT and media, the Birlas had never tried their hand in the hotel arena.

Basant Kumar Birla, the oldest member of the Birla family, told TOI that his group has decided to set up a luxury hotel near Worli, in south Mumbai, on unutilised land belonging to Century Textiles & Industries. “We will not run the hotel. Five big groups from India and abroad have approached us for managing it. We will get a fee, which will be revised every three years,” Birla said.

The group may also use the land for commercial real estate, the industry doyen said. “We want to optimise the value of the land belonging to Century Textiles. The value will appreciate if we develop it. We will not sell the land. The company will return 15-20% of the land to the state government, as per rules, and the rest will be developed,” he added.

Century Textiles senior president R K Dalmiya said the mill has been shut since 2006. “All the mills in the area are closed for environmental or other reasons. The mill occupies 40 acres, of which we own 30 acres. The balance is lease-hold land for which the group has an existing 999-year lease with the Wadia Group,” he said, adding that a Singapore-based architectural firm has been appointed as adviser for the hotel project.

Century Textiles has already set up an advanced greenfield textile mill with an investment of Rs 850 crore at Bharuch in Gujarat. The mill was inaugurated by Gujarat chief minister Narendra Modi in the presence of B K Birla and his grandson Kumar Mangalam Birla (chairman of AV Birla Group) in October. “The new mill alone will take care of most of our requirements,” Dalmiya said.

Source:http://timesofindia.indiatimes.com/biz/india-business/Birlas-to-foray-into-hotel-industry/articleshow/5204777.cms

Kotak plans to sell Nariman Point, Kalina properties

Kotak Mahindra Bank plans to sell some of its offices in Mumbai’s central business district of Nariman Point and in the city’s western suburb of Kalina as it relocates staff to its new corporate headquarters at the Bandra Kurla Complex (BKC).

The properties up for sale are around 12,000 sq ft on a floor in South Mumbai’s Bakhtawar Building across the sea facing Trident hotel and another 50,000-60,000 sq ft at a building in Kalina in suburban Mumbai.

“The prevailing property price in Bakhtawar is upward of around Rs 36,000 per sq ft, while it is lower in Kalina. We have already started vacating rented space across the city and relocating staff to our offices in Kalina and Goregaon ahead of the eventual move into our new corporate headquarters,” said a top Kotak official.

The bank estimates that it could save as much as Rs 50 crore per annum in rentals and lease costs once the transition to BKC is complete.

The BSE-listed private sector bank posted a consolidated net profit of Rs 299.76 crore for the quarter that ended on September 30, 2009.

The savings on account of lease rentals are expected to be substantial without even including the Rs 43-odd crore it would realise on sale of its Nariman Point property going by the valuation quoted by the bank official.

However, Pranay Vakil, chairman, Knight Frank India, said recently the Nariman Point area had seen some bit of destabilisation with the city’s municipal corporation demanding property tax at 112 per cent, of 10 months gross rent paid by lessees every financial year.

“Earlier, the system was to pay tax at 112 per cent of standard rent. But now the BMC (Brihanmumbai Municipal Corporation) has said it will levy this based on the rent as specified in the contract or the rateable value, whichever is higher. If this tax is passed on to lessees the rentals would double overnight, which makes it unviable.”

“The vacancy rates in commercial real estate at Nariman Point have gone up from two to three per cent in early 2008 to seven to eight per cent at Nariman Point now. Capital values too have come down,” said Kaustuv Roy, executive director, Cushman & Wakefield India. “However, now mid-tier Indian companies who have long coveted a premium location such as Nariman Point, may look to take advantage of the lower prevailing prices,” he added.

According to Vakil, the Kotak property in Bakhtawar could command around Rs 30,000 per sq ft. Roy feels that developers may be keen to acquire the Kotak Kalina property and rebuild it as a modern office building. “In Kalina, around the periphery of the Bandra Kurla Complex area, the rates are generally around 25 per cent less than the BKC area. The Kotak Kalina property could therefore command around Rs 15,000 per square feet,” said Vakil.

At this valuation, Kotak could net another Rs 90 crore on sale of this property. The bank plans to retain an office space at Nariman Bhavan in South Mumbai, which is where Uday Kotak, vice chairman and managing director, started his career.

Source:http://www.mydigitalfc.com/stock-market/kotak-plans-sell-nariman-point-kalina-properties-385

Oberoi group to launch another Trident hotel

MUMBAI: India’s third-largest hospitality chain, the Oberoi group, will be opening its second hotel in the city under the Trident name on December 17, the company said.

The 436-key property, located within the Bandra-Kurla complex, will join the growing list of five-star hotels in north Mumbai. At present, there are around 18 hotels in north Mumbai as against seven hotels in south Mumbai.

The hospitality industry, hit hard by the global financial crisis and subsequent Mumbai terror attacks, is on the recovery road. Properties in north Mumbai have performed a tad better compared to its south Mumbai counterparts. This is because sections of the Taj and Oberoi hotels have been partially shut for renovation, following the terrorist attacks on them. The occupancy level in north Mumbai hotels was at 56% in October as against 53% in south Mumbai hotels.

According to industry sources, average room revenue was down 31% in north Mumbai as a result of higher room inventory. Two hotels, including the Imperial Palace and Novotel, were opened recently.

Source:http://timesofindia.indiatimes.com/city/mumbai/Oberoi-group-to-launch-another-Trident-hotel/articleshow/5217056.cms

IHC to set up new hotel in Bangalore

London-listed hospitality and leisure company India Hospitality Corporation (IHC) will set up a new hotel in Bangalore next year and is close to raising funds worth Rs 1,000 crore for expansion of its hotel business.

Ravi Deol, managing director – IHC, said, “In the next 12-18 months, we will be focusing on expanding our hotel business in tier II cities. We will be opening a new hotel in Bangalore by July 2010.”

According to media reports, the company is also readying a Rs 1,000-crore property fund for expanding its hotel business in the country. The firm has already invested Rs 200 crore in the hotel business through its wholly-owned subsidiary Gordon House Estates.

“We are building a Rs 1,000-crore property fund which would be utilised in expanding the hotel business in the country. A host of foreign investors have shown interest in the fund and we expect the fund closure in the next 3-4 months,” Deol added.

IHC, which currently operates its hotel chain under the brand “Gordon House,” has three hotel properties in the country – two in Mumbai and one in Pune.

Regarding the company’s acquisition plans, IHC president and COO Sandeep Vyas said, “We are looking at opportunities for both organic and inorganic growth in the country. Hospitality sector is poised for a boom and we are hoping to cash in on that.”

In 2007, IHC acquired Mars Restaurant, the hotel and restaurant company that manages ‘Not Just Jazz’, ‘By The Bay’ and ‘Pizzeria’ chains. As part of the deal, it also got the control of the airline catering business SkyGourmet and Mars Catering Services.

Earlier this week, the firm signed an agreement to manage 10 hotels of realty firm Entertainment World Developers (EWDPL), which would come up by 2011.

Further, as part of the pact, the firm will acquire the franchisee rights for Pizza Hut in central India, from EWDPL.

Source:http://www.fnbnews.com/article/detnews.asp?articleid=26429&sectionid=1

Duet India Hotels to invest Rs 2,300 crore to set up 5,000 hotel rooms in India

According to a report in Business Standard by Swaraj Bassonkar, Delhi-based real estate investment company, Duet India Hotels will invest Rs 2,300 crore over four years to build 5,000 hotel rooms in India. The company, which will invest in mid-scale segment and five-star properties, has tied up with New York-based Starwood Hotels and Resorts Worldwide to develop its hotels, to be run under the brand name of Four Points by Sheraton. Likewise, Duet India Hotels aims to partner with other international hotel players to launch their brands in the country.

To set up the required number of rooms, it will pump in equity of Rs 1,200 crore, while the balance will be raised through debt. So far, it has made an equity investment of Rs 218 crore and almost an equal investment has been raised through debt of around Rs 246 crore. The company currently has five projects under development, which includes 115-room hotel in Jaipur, 223-room hotel in Pune, 124-room hotel in Ahmedabad, 200-room hotel in Indore and 220-room hotel in Hyderabad.

Source:http://www.travelbizmonitor.com/duet-india-hotels-to-invest-rs-2300-crore-to-set-up-5000-hotel-rooms-in-india-8789

Bidadi township rises from ashes

After killing an infrastructure project in Ramanagaram, the government is reviving another one in Bidadi, that was virtually dead.

After DLF washed its hands of the mega Rs 60,000-crore Bidadi Integrated Township Project (BITP) on the outskirts of Bangalore, the government is set to revive it. A proposal by Bangalore Metropolitan Regional Development Authority (BMRDA) is lying before the cabinet for fresh tenders.

In a setback to infrastructure development, the state government last week withdrew the 1,620-acre Institutional Area Township project, proposed at Ramanagaram. The withdrawal of the project came at a time when the government is talking big on developing infrastructure for the proposed Global Investors’ Meet, scheduled in June 2010.

In the event of the global meltdown and tough economic environment for the real estate sector, the upcoming Request For Qualification (RFQ) document is said to be investor-friendly, and simplified to attract more global investors.

As DLF withdrew from BITP, the government refunded its deposit investment of Rs 400 crore on April 24 this year. “Given the current downturn in the real estate sector, DLF did not want to park its funds in a project that has not moved,” government sources said.

The JD(S)-BJP coalition government in October 2006 approved the development of five integrated townships in Bangalore metropolitan region by BMRDA and identified BITP as the first to be developed on 10,000 acres (of these, 2,200 acres are government land), perhaps one of the biggest projects in the country, on the outskirts of Bangalore.

A documentation committee under the chairmanship of the principal secretary of the urban development department was constituted for finalization of the RFQ document and Crisil Ltd was appointed as consultants to BMRDA to prepare a bid document and bid-process management. DLF-led consortium, comprising Limitless Holdings Ltd and Limitless Hoysala Inc, was chosen to develop the project.

The consortium made a commercial offer of Rs 57.50 lakh per acre of land, in addition to land acquisition cost, rehabilitation and resettlement cost, amounting to Rs 1.25 crore, to the government kitty. The government expected Rs 3,400 crore from the whole project, which could have been usefully channelized for urban development and infrastructure projects and initiatives in the Bangalore metropolitan region. An official order to hand over the letter of intent to DLF was issued during the last days of the Kumaraswamy government, on October 10, 2007.

Source:http://timesofindia.indiatimes.com/city/bangalore/Bidadi-township-rises-from-ashes/articleshow/5207818.cms

Tatas to extend cheap housing to global market

Encouraged by the good response to its affordable housing project from Mumbai, the Tata Group has decided to extend the concept in the international market. The group will take the project to other Indian markets as well.

Tata Sons chairman Ratan Tata said the company is planning similar housing projects in other centres like Kolkata, Bangalore and Assam. Maldives has also shown interest in the project and has invited Tata to introduce the concept in the country.

Ratan Tata said he expected the consumption of steel in the developed markets like the US and Europe to reach the pre-recession levels in the next two years. But the good news is that the market has stabilized. “There is no sudden dip or cancellation of orders now” , he said.

Tata said that a team from Jaguar and Land Rover had visited the country to look at what components they can source from India. But no decision has been taken on this. Meanwhile, Tata Motors is planning to adopt Nano for the European market. But it will take at least two years for it to fulfill all regulatory requirements and be ready for launch.

He said the new high horse power truck that Tata had launched would be marketed globally. He identified South Africa, Indonesia, Malaysia, and Middle East countries as the markets where the new high-speed , high horse power truck could be introduced. Presently, it is being exported to South Korea.

Asked whether the group would cut the salaries of the top executives Mr Tata answered that Tatas has already introduced measures to cut costs and avoid wastage. The efforts in this direction had started even before the recession was felt by all economies, he added.

Source:http://mail.google.com/mail/?shva=1#inbox/124cc80eefbdd75c

DLF to Build Rs 15 cr Flat in Delhi’s Posh Locality

Real estate major DLF is coming up with Rs 15 crore flats in the posh Greater Kailash area, courtesy Municipal Corporation of Delhi (MCD), alleges Congress. Leader of Opposition in the Municipal Corporation of Delhi Jai Kishen Sharma has alleged that the civic body has “illegally” allotted the land meant for park and community centre to the DLF. The Bharatiya Janata Party is in power at the Town Hall. Claiming that the civic agency is hand in glove with the ruling party, Sharma said: “In clear violation of the MCD rules, plots measuring 1.5 and 2.5 acres have been allotted for building apartment complex. The land was meant for civic facilities like parks and community centre. This was done to increase the ground coverage of the housing society and give undue benefits to DLF.”

The real estate major is building eight and nine storey apartment buildings in the E and W blocks of the Greater Kailash-II. The building plans were sanctioned in 2007. DLF has already started construction on the plots. Captain KS Singh, a MCD councilor from south Delhi, said: “When the plots were allotted the topography of the area was very different from what it is today. Now, the area is densely populated. So, there should be no construction here as civic infrastructure will crumble if these housing projects come up.”

However, MCD officials refute the charges, saying the resolution for allowing the construction was passed by the Standing Committee way back in 1989. Some residents had also moved the Supreme Court on the issue, but the court ruled in favour of the MCD. The layout plan was sanctioned around two years ago. “I have asked the Commissioner to look into the matter and submit a report within three days,” Standing Committee chairman R K Singhal said.

Source : http://www.indianrealtynews.com/real-estate-india/delhi/dlf-to-build-rs-15-cr-flat-in-delhi%e2%80%99s-posh-locality.html

Hero group in real estate with township project

The Munjal family-controled Hero group, better known for its motorcycles, is entering the real estate business, with nearly Rs. 200 crore already invested.

The cash-rich Munjals are turning the current slump in real estate into an opportunity as they had no previous exposure in the business historically marked by aggressively priced land deals.

The Ludhiana-based group plans to launch over the next two weeks an integrated township in the pilgrim town of Haridwar.

The group plans more residential which are expected to be announced over the next couple of years, company officials said.

“The integrated township at Haridwar will be developed over an area of 50 acres and will have close to 2,000 residential units,” Sunil Kant Munjal, chairman, Hero Corporate Services Ltd told Hindustan Times.

“The company has invested close to a couple of hundred crore rupees for its real estate foray,” he said.

Hero Corporate Services also has interests in IT-enabled services and corporate training.

“The plan is to first consolidate our position in Uttarakhand before venturing out to other parts of the country,” Munjal said.

The Hero group expects real estate to be an important business vertical over the next few years. “The current downturn in the real estate sector has provided the company an opportune time to enter residential real estate development as valuations are just right,”

The company, however, does not wish to have an escrow account, which in effect means that the funds garnered from the pre-launch proceeds of a project is used only for the development of that particular project.

“The timely completion of Haridwar project with optimum standards will help us establish as a serious player in the sector. We are also banking upon our group’s credibility to showcase our prowess in real estate development,” Munjal explained.

The residential units in the integrated township at Haridwar would have apartments priced between Rs 18 and 20 lakh to Rs 70 lakh. The villas constructed in the project would be priced much higher.

The township will have hospitals, schools and shopping complexes, apart from residential apartments.

The company expects to start delivering the apartments within two years. “We would be targeting NRIs (non-resident Indians) and investors from north India who want to own a house at Haridwar, apart from local people,” said Munjal.

Source:http://www.hindustantimes.com/Hero-group-in-real-estate-with-township-project/H1-Article1-472791.aspx

Investment in a second home

According to a study conducted by Kapston.com, a Bangalore based e-business consulting firm, the sales of ’second homes’ in India increased by 50

per cent from 2002 to 2007, before the slump in the market brought the figures down to negligible. “Although the concept of second homes was accepted by the Indian audience, as the figures show, everything crashed during the downturn . In the last one year, there have hardly been any takers for this segment .

The market is stagnant as of now,” says Raminder Grover, CEO, Homebay Residential, Jones Lang LaSalle Meghraj.

There are two types of buyers, in the second home market, explains Grover. The first category consists of the affluent buyers who purely look at luxury and the second category is the middle and upper class, which looks at second homes as an investment option. “The first category has started showing interest, in the last coupe of months, but the second category of buyers is still playing the waiting game,” he adds.

As the demand for second homes dropped, even developers put their projects on hold and only now, are builders completing their pending projects. This trend, says Grover, is not surprising, as projects within the city are the ones that give developers immediate returns and so, most developers concentrated on completing these first. “With DLF launching their luxury home segment in Goa, other players, I believe, will soon join the fray,” he expects.

“The industry is still at a nascent stage and those who are planning for second homes, should look at it purely as an instrument of ‘value appreciation’ . Investors should look at it, in terms of growth, over the next two to five years,” says Hemant Shah, chairman , Ackruti City. Investment in the right property will always appreciate in value and with the younger generation earning well and investing intelligently , the second home market has good scope in India, says Abhishek Lodha, director, Lodha Develoers.

Second homes are sought, primarily as a means for a getaway from the city. However, for the larger Indian market, it is also an investment for post-retirement days. Real estate is always an asset and today’s generation wants the option of having a home by a hill or a riverside and this is why places like Devnahalli in Bangalore, Coimbatore, Ooty and Kasauli, are springing with second homes. “There is a lot of demand for properties between Pune and Panvel. Even the four main metros and its peripheral areas are in demand, for second homes,” reveals Tushar Khatri, GM (sales and marketing), Arihant Universal .

Apart from these, the other hotspots for second homes are hubs in Noida, Hyderabad, Jaipur, Kerala, and Gurgaon. Mumbai is also one of the preferred locations, with Royal Palms being the only second home provider within city limits. The 240-acre Royal Palms Estate is situated in the midst of Mumbai’s only green belt and surrounded by a further 20,000 acres of the Borivali Sanjay Gandhi National Park.

Source : http://economictimes.indiatimes.com/markets/real-estate/realty-trends/Investment-in-a-second-home/articleshow/5198311.cms

Home sales went up by 97% in September

Mumbai: The sale of houses in Mumbai, which was plunging in the corresponding period last year, revived significantly in July-September. The figures are showing a drop again after realtors increased prices, data from the house registration department in the city shows.

September saw a 97% jump in house registrations — which includes new and resold homes with 6,112 properties stamped compared with 3,107 in September 2007.

The components of registration include certificate of sale, apartment deed, conveyance and agreement deed.

This led to a 68%, or Rs180.4 crore, jump in revenues for the state exchequer. Hari Prakash Pandey, vice-president, finance, Housing Development and Infrastructure Ltd (HDIL), the third-largest realtor in the country based in Mumbai, said the rebound has been quite significant.

“We have seen a V-shaped recovery since March. Though prices are still below 2007 levels, they have risen 10% from 2008. We are seeing record sales since July,” Pandey said.

HDIL recently launched its Bhandup project, where it is developing 1.3 million sq ft with approximately 1,000 apartments.It has already sold 15% of the properties, priced at Rs5,751 per sq ft, in week since launch. “We have priced it competitively and after selling more than 60% stock we would revise our prices.”

Despite the price hike, sales are very good, said Abhisheck Lodha, director, Lodha Developers. “Sales are higher by 40-45%. In our Dombivili project, we sold 900 units in the first 9 days since launch. I hope it is a long-term recovery. As for prices they can increase at a moderate pace, but if there is a sudden price rise demand will vanish,” Lodha said.

A real estate analyst with a domestic brokerage points out the sales trend is very impressive in March-July, when prices were low. “But if you see the numbers since, sales have been slipping in inverse proportion to prices,” he said.

Source : http://www.dnaindia.com/money/report_home-sales-went-up-by-97pct-in-september_1307381

Home prices up in 15 cities, shows Residex

The new index of residential price movement – Residex, released by the National Housing (NHB), shows a mixed trend among 15 major cities.

As many as nine out of 15 cities, covered by Residex across the country, have witnessed hardening of residential property prices. Prices of homes have recorded a decline in cities such as Delhi, Bangalore and Bhopal, between December last year and June, but the same went up in cities such as Mumbai, Kolkata and Chennai, among others.

Prices of residential property in Mumbai have increased by 5.98 per cent between December and June, and by 26 per cent and 13 per cent in Chennai and Kolkata respectively. Prices of residential property in Ahmedabad increased by 27 per cent in the same period and during the same time, Faridabad, the neighbouring city of Delhi, reported price hardening to the extent of a whopping 36 per cent.

Other major cities that witnessed price hardening include Lucknow, Pune, Surat and Patna.

On the other hand, the National Capital registered a fall of 7 per cent in prices of residential properties, while Bangalore and Hyderabad witnessed a correction of 24 per cent and 29 per cent respectively. Other cities where prices fell are Bhopal, Jaipur and Kochi.

NHB, a 100 per cent subsidiary of the Reserve Bank of India, comes out with pricing index of residential properties across 15 major cities in the country twice a year.

http://www.mydigitalfc.com/news/home-prices-15-cities-shows-residex-714

Mall vacancy in southern cities drops in July-Sept

The average mall vacancy in the southern cities of Chennai, Hyderabad and Bangalore dropped to 5.7 per cent in the third quarter (July – September) of 2009 from seven per cent in the second quarter.

However, supply in these three cities increased by one million sft, up 33 per cent from the second quarter, according to Cushman & Wakefield, a commercial real estate services and research firm.

Alongside this development, rents stabilised in these markets in the third quarter as against the corrections they had witnessed in the last six to seven months.

Rents in major cities and markets are expected to remain stable in the coming few months. Over 60 per cent of the anticipated supply during the quarter was delivered, a marked improvement from previous few months, it said.

There was no fresh mall space in Bangalore. Though leasing activities remained low, vacancy rates dropped as there was no additional supply in the city. The average rentals stabilised indicating a revival of interest in the city’s organised retail space.

However, the Garden City anticipates supply of one million sft in six months, 80 per cent of which is expected to come up by this year end. Bangalore’s suburban zone will see more than 60 per cent of the total new supply and the rest will come up in peripheral micro markets.

Hyderabad, till September, witnessed an additional mall supply of 650,000 sft at Madhapur and vacancy dropped to 14 per cent from 17 per cent till June. Rentals are likely to remain stable till March next year.

The mall space in Chennai increased 28 per cent with Ampa Skywalk mall becoming operational.

Food and Beverage outlets continued to be the main driver for retail space and are expected to remain so in the future. Retailers preferred to expand within city limits and refrained from venturing into the peripheries, it said.

Source : http://www.business-standard.com/india/news/mall-vacancy-in-southern-cities-drops-in-july-sept/375173/

Sharp Drop in Kolkata Office Rentals

If you had any doubts about new business ventures giving Kolkata the miss, here’s damning proof that should send the alarm bells ringing loud and clear. Vacancy levels have shot up with nearly a quarter of the available office space finding no takers between July and September. Though office space across the city has been hit by the poor business sentiment, peripheral locations like Rajarhat and Salt Lake are the worst affected with the IT and ITeS industry giving the city a cold shoulder in recent months. Significant infusion of new supply has also accentuated the problem in this belt, leading to a sharp drop in rentals.

Global real estate solutions firm Cushman & Wakefield, which researched on office space, expects the current situation to persist, triggering a further rise in vacancy levels. “There will be a prolonged situation of over-supply unless significant space uptake occurs in the market. Due to the current trend of low demand, there may be deferrals in certain projects to later periods,” a researcher said. Rentals of office space for both corporates and IT/ITeS firms in Rajarhat have nosedived by a whopping 31% in the July-September 2009 against the corresponding period last year. In Salt Lake, IT/ITeS space rentals has crashed by 29%. Corporate space in Sector V is slightly better off with rentals taking a 22% dip.

But what comes as a shocker is the steep fall in office space rentals in the heart of the city. At BBD Bag the city’s commercial hub and central business district rentals have tumbled by 26% despite no addition in supply. At Park Street and Camac Street, rentals have slipped by 18%. It is down 20% along Park Circus connector and 19% along the Rashbehari connector. While the current political flux in the state and loss of big-ticket investments has made Kolkata a less-favoured destination than it was a year ago, the turnaround in the economy following last year’s downturn is yet to impact the IT/ITeS sectors that have displayed the largest appetite for office space in the past.

The phenomenon though, isn’t restricted to Kolkata. And it is the central business district (CBD) in each city that has been the worst hit. In the National Capital Region, comprising Delhi, Gurgaon and Noida, the vacancy rate was pegged at 11-12% while rental values saw a downward correction of 37% in CBD to 21% in Noida. In Mumbai, the rentals dip ranged from 11% in Thane Belapur Road to 42% in Lower Parel and Bandra. In Worli, the dip was 38-40%. In Chennai, the CBD at Anna Salai saw rentals for corporate offices drop by 29%. At Alwarpet in T Nagar off CBD, the rental drop was 23-27%.

Source : http://www.indianrealtynews.com/real-estate-india/kolkata/sharp-drop-in-kolkata-office-rentals.html

SBI’s 8% Home Loan Scheme will End on November 8th

The country’s largest lender, State Bank of India, will not extend its eight per cent home loan scheme, the cheapest in the country, beyond November 8. SBI had introduced its Happy Home loan scheme, that allowed the borrower to freeze the eight per cent interest rate for a year, in February this year. In August, the bank had introduced another home loan scheme under a ‘My Home’ campaign, in which it offered loans up to Rs 5 lakh and tenure for up to 10 years, at an eight per cent per annum fixed rate during the first five years, among other offers.

However, the My Home campaign will come to an end on November 8. “The bank has taken a decision that the eight per cent home loan scheme will not be extended beyond November 8. It is yet to take a decision on the new interest rates. It is likely to be more than eight per cent,” said sources at SBI. Under the My Home Campaign, the bank was offering home loans in three segments, namely, SBI Hi-Five Home Loan, SBI Easy Home Loan and SBI Advantage Home Loan. Under the SBI Hi-Five Home Loan, it has been offering loans up to Rs 5 lakh and tenure for up to 10 years at an eight per cent per annum fixed rate during the first five years. From the 61st month onwards, the rate will be a floating one, at an interest rate 2.75 per cent below the State Bank Advance Rate (SBAR) and 1.25 per cent below SBAR.

In SBI Easy Home Loan, for maximum loan of Rs 50 lakh and tenure of up to 25 years, the interest rate is fixed at eight per cent per annum during the first year and at 8.5 per cent during the second and the third year. After three years, the rate will be 2.75 per cent below SBAR (for floating rate) and 1.25 per cent below SBAR for fixed ones, with a reset frequency of five years. For loans above Rs 50 lakh and tenure of up to 25 years ( SBI Advantage Home Loan) , the rate is fixed at 8 per cent per annum during the first year and 9 per cent per annum during the second and third year. From the fourth year on, the rate will be 1.75 per cent below SBAR (for floating rate) and 0.75 per cent below SBAR for fixed ones, with reset frequency of five years.

http://www.indianrealtynews.com/home-loans/sbi%e2%80%99s-8-home-loan-scheme-will-end-on-november-8th.html

SBI not to change home loan rates immediately

MUMBAI: State Bank of India today said it did not have any immediate plans to revise its home loan rates, including that of the eight per cent  special scheme originally slated to end this week.

“We have decided to keep the rates at the same level in the immediate future (including the 8 per cent scheme). The current rate structure will continue,” SBI Chief General Manager, P Nandakumar, said.

The bank was responding to media reports that SBI may withdraw the special home loan scheme, which offers eight per cent fixed interest rate for loans upto Rs five-lakh for five years.

It also offers loans upto Rs 50-lakh at 8 per cent for the first year and at 8.5 per cent in the second and third years. The scheme was supposed to end on November 7.

State Bank is understood to have plans to come with some special offers on home loans in the near future.

The bank had seen a 23.40 per cent growth in its home loan portfolio in the quarter ended September 30.

On the back of a healthy growth in net interest income and core fee income, State Bank clocked a 10.19 per cent jump in its standalone net profit at Rs 2,490-crore in Q2 FY 10.

SBI witnessed a healthy credit growth of 16.39 per cent in the quarter and is optimistic about achieving a growth rate of 22 per cent for the full financial year.

The lender’s advances grew to 5,80,237-crore, up 16.39 per cent, as compared to Rs 4,98,513-crore in Q2 last fiscal.

Its car loans grew by 44.45 per cent in the quarter, large and mid-corporate loans and education loans grew by 14 per cent and 42.23 per cent respectively.

Source : http://economictimes.indiatimes.com/news/news-by-industry/banking/finance-/banking/SBI-not-to-change-home-loan-rates-immediately/articleshow/5197006.cms

Tata Housing progresses into Phase II of Raisina Residency, launches Victoria in Gurgaon

Delhi: Tata Housing Development Company, recently awarded the title of ‘Promising Future Company – Real Estate, 2009′ by GIREM, today announced the launch of ‘Victoria’, phase II of its premium and exclusive residential complex, Raisina Residency built on the theme of art and culture at Sector 59, Gurgaon. A total of 71 units comprising 3BHK apartments would be available under the new tower.

Raisina Residency offers amenities for an unmatched lifestyle. Three BHK air-conditioned apartments, 100% power backup, a beautifully designed entrance lobby with premium marble flooring, an air-conditioned ground floor lobby, a well-designed and furnished waiting lounge with reception area, two high-speed passenger lifts in each tower, earthquake-resistant structure as per relevant IS codes, split air-conditioner in all rooms, imported marble flooring in living/dining room and in family lounge, real wooden flooring in master bedroom, natural teak veneered flush door for the main entrance and modular kitchens make the property a luxurious haven.

Speaking on the launch of Victoria, Brotin Banerjee, CEO and MD, Tata Housing, said, “With the overwhelming response received from our consumers for phase I of Raisina Residency launched in August 2008, we are happy to announce the launch of Victoria, phase II of Raisina Residency, which again is designed by one of the best international architects. With improved market conditions, we are confident of Victoria generating a favourable response from consumers. Tata Housing’s philosophy of maintaining transparency coupled with credibility and reliability of delivering projects on / before schedule has resulted in complete support from both public and private financial institutions.”

Raisina Residency has pre-certified Green Homes under the guidance of Indian Green Building Council (IGBC). The key features of a ‘Green Building’ have been taken into account while designing the layout of the complex. As a mandatory part of Green Building development and to ensure a healthy environment for customers, Raisina Residency is designed to provide excellent natural ventilation. Also, Raisina Residency comes with 86% open area surrounding the towers.

Tata Housing’s award-winning property has also been awarded the prestigious 5-star and 4-star awards in the Best Development Marketing (Residential category) and Best Architectural Design (Residential category) at the CNBC Asia Pacific Property Awards, 2009.

Source:http://www.equitybulls.com/admin/news2006/news_det.asp?id=63307

CHD Developers launches Lifestyle GRAND at CHD City in Karnal

New Delhi, November 2, 2009 – Sequel to the successful Launch of CHD Lifestyle -Stylish, Comfortable & Affordable independent floors which were sold out within just 6 weeks of its launch, CHD Developers Ltd, a leading real estate developer launched Lifestyle Grand, Comprising of 120 of Modern, Spacious & Majestic independent floors. The luxuriant and spacious independent floors in CHD Lifestyle Grand are available in two different floor area options of 1630 sq.ft. and 1580 sq.ft. and are competitively priced at just Rs.17,00,000*. Lifestyle Grand is an integral part of CHDDevelopers’ Rs. 500 crore mega project, CHD City at Karnal, Haryana.

According to Mr. RK Mittal, Chairman and Managing Director, CHD Developers, “Anyone who places a premium on personal privacy and convenience will find Lifestyle Grand an elegant place to live in. The independent floors are spacious and airy, offering a marvelous living experience to the family of our customers. With incredible attention to detail, the residential floors create an atmosphere of unparallel privilege. All three floors will have optimum light and enhanced visual axis in the living, dinning and bedroom.”

Lifestyle Grand provides open and flexible residences, overlooking beautifully landscaped gardens. The exclusive group housing has been eminently conceived to provide all the facilities of a poshresidential locale at extremely competitive prices. While the Ground Floor has access to both front and rear lawns, the First Floor residents can luxuriate in spacious verandah and balconies that open to lush greenery. The inhabitants of the Second Floor will acquire the roof terrace rights, apart from the balconies.
“A true grandeur of stately residence awaits our customers at CHD Lifestyle Grand, which has a distinct flavor and ambience that our customers will be proud to call their own. Lifestyle Grand offers a modern and vibrant living atmosphere, where families can enjoy an exclusive and active environment with their own distinct social life and sense of community,” added Mr. Mittal.

CHD Lifestyle, another project offering independent floors with smaller size area was completely sold out within just 6 weeks of its launch, a noteworthy record of sorts considering the current slowdown in the real estate industry in India. Hundreds of investors recently chose to invest their hard earned money in CHD Lifestyle because of its inherent strengths and impeccable track record. CHD Lifestyle comprised 138residential units spanning an area of approximately 1,50,000 sq.ft. and its unprecedented success gives a clear indication that the real estate sector in India is bound for a quick revival.

“The enthusiastic response & success of our CHD Lifestyle project motivated us to offer Lifestyle Grand –an exclusive housing with modern facilities for poshresidential locale at competitive price” Mr. Mittal further added.

It is worth noting that this kind of success is not new to CHD Developers. Just a few months ago, one of the company’s commercial projects at CHD City, Karnal Business Centre (KBC), was sold out in 5 months of the launch and this happened during the slowest phase of the Indianreal estate industry . KBC offered prime shop-cum-office (SCO) commercial plots that a progressive business could construct upon as per its unique requirements for any commercial purpose.

The demand for both residential and commercial properties at CHD City underline the fact that it is one of the finest private townships coming up in Karnal, Haryana, located right on NH-1 and midway from Delhi to Chandigarh. The NH–1 is being rapidly widened into a 8-lane Expressway, thus substantially reducing the travel time from Delhi to Chandigarh and to Karnal.

The estimated project cost of CHD City is Rs. 500 Crores and it comprises plots, affordable homes, row houses, independent villas, shopping malls, commercial properties along with school, dispensary etc. It is significant to note that CHD Developers has acquired fully paid up licenses for the 123 acres land and has complete possession of the land. The company has also recently begun to hand over the possession to some of the plot buyers. The construction for Silver County Villas and the Lifestyle Floors at CHD City has already started.

Almost 25,000 families are expected to inhabit the CHD City, making it the most sought after destination in Karnal as its residents will be able enjoy the best of amenities in finest dining, shopping, arts and entertainment, which include a mall, food court, hotel, clubhouse, commercial centre, offices, school, hospital, multiplex, dedicated play area for kids, jogging tracks, high speed internet broadband and wi-fi connectivity, 24-hour power backup and round-the-clock security.

CHD City will also feature world-class facilities at its clubhouse, which will include Swimming Pool, Lawn Tennis Courts, Badminton Courts Pool and Billiards, Health Club, Steam, Sauna and Coffee Shop. Even a 5-star hotel is supposed to come up in its vicinity, which will further add to the marketability of the location. This area is right opposite to the Oasis landmark on the NH and is close to Karna Lake and the golf course, which means that there will always be an abundance of greenery, making it a prime location. This fast developing area is, thus, emerging as the most happening suburb of Karnal.

CHD Developers Ltd. has ushered in a new era of building projects for the residential as well as commercial sectors in northern India and has to its credit several residential complexes such as Gayatrilok at Haridwar, Sri Krishnalok at Vrindaban (Mathura) and CHD City, a residential township in Karnal. CHD has successfully delivered projects covering more than 700,000 sq. feet area and proposes to develop more than 10 million sq. ft. area in the next few years.

About CHD Developers

CHD Developers, an ISO 9001:2000 certified company, was originally founded by the farsighted entrepreneur Mr. R.K Mittal, CMD as “Capital Developers Pvt. Ltd.” in the year 1990. Today having proven itself time and again under the progressive leadership of Mr. Gaurav Mittal, Director, CHDDevelopers is one of the fastest growing ‘Real Estate Major’ in Northern India. CHD’s expertise lie in diverse field including Real Estate Development, Construction, Education and Hospitality where its reckoned for building state of art, elegantly designed, strategically located and high qualityResidential Townships, Residential Apartments, Commercial Complexes and Restaurants. CHD believes in providing true value for money and forging strong relationships with its customers as it has a track record of delivering all their projects on time.

Source:http://press-releases.techwhack.com/42515-chd-lifestyle

Builders revive stalled commercial projects on early signs of recovery

Bangalore: Realty firms, encouraged by early signs of a revival in the market, are dusting off shelved or deferred projects and testing their financial viability to gauge which of these can be resurrected.

Solid foundation: A commercial complex under construction at DLF Cybercity, Gurgaon. Developers who had shifted focus from commercial projects to residential sales during the slowdown are restarting them. Rajkumar / Mint

DLF Ltd and Unitech Ltd, India’s top two developers by market value, which had suspended most of their commercial projects earlier this year, said they are in the process of redeveloping them because of a return in demand.

Unitech, which is more upbeat about the potential of commercial development, said on Monday that it has started developing many projects which had been suspended before. DLF, however, plans to remain cautious and wants to launch only in selective markets such as New Delhi and Hyderabad that it thinks have revived faster than others, a senior DLF official said on condition of anonymity.

Large developers such as Housing Development and Infrastructure Ltd (HDIL), Orbit Corp. Ltd, Ozonegroup and Prestige Estates Projects Pvt. Ltd are also launching or firming up plans to build offices and shopping malls.

“This is a good time because most of us have repaired balance sheets and can afford to start construction and can hold on if needed,” said Hari Pandey, vice-president of finance and investor relations at HDIL. “We are also observing a rise in interest from healthcare, financial services and IT (information technology) companies.”

HDIL, the country’s third largest developer by market value, in September and October launched 3.5 million sq. ft of commercial and retail development projects in two Mumbai suburbs that were initially scheduled for a 2010 launch. HDIL’s capital outlay for these projects is Rs600-700 crore over the next four years.

Improved cash flows from sales and a rise in the so-called transfer of development rights (TDR) rates, too, propelled the company’s decision to start building these projects. Slum TDR is a tradable paper issued by state governments in exchange for free development of slums by builders. They, in turn, use the paper to develop other sites.

Analysts, however, remain sceptical and say the commercial and retail segments, unlike residential housing, may be far from a turnaround. Real estate consultancy Cushman and Wakefield said in a 27 October report that the estimated absorption of office space in the first three quarters of 2009 was 4 million sq. ft and is expected to be 5 million sq. ft for the entire year—a 50% drop from the 10.36 million sq. ft sold in 2008.

Developers had shifted their focus from commercial, retail and hospitality projects to residential sales during the slowdown. DLF and Unitech led the way, saying they would concentrate on mid-income homes, and suspended other projects. While a Unitech official said on condition of anonymity that the company has changed its stand and gotten back to commercial development, DLF is also developing about 2.5-3 million sq. ft of commercial space.

Overall, DLF is trying to clean up whatever commercial space was launched by beginning construction as well as delivering what was promised, said a DLF official, who also did not want to be identified.

“The revival of the commercial sector will be a slow process, and the initial trends emerging after the lull include the gradual return of demand from non-IT companies as well as from investors,” said Anshuman Magazine, managing director at property advisory CB Richard Ellis.

Bangalore-based Ozonegroup is back at the drawing board, deliberating the format of its Urbana project—a 162-acre sprawl in Bangalore. The company, which had earlier considered building an IT special economic zone (SEZ) here, may instead build a large IT park with retail spaces.

Similarly, Orbit, after turning its premium commercial projects into residential formats, plans to launch two commercial projects in the coming months in the Bandra-Kurla Complex and Andheri, both Mumbai suburbs.

“The launches are in anticipation of demand picking up as companies begin to expand again,” said Pujit Aggarwal, managing director of Orbit.

India’s retail property market has recorded the highest correction in the world, according to a 22 September report by Cushman and Wakefield. The biggest fall in rentals globally was in Colaba Causeway, a high street in Mumbai, where rentals fell by 63.5%.

In the past couple of months, many mall developers have restarted projects they had given up on.

A Bangalore-based developer, requesting anonymity, said he is redesigning a 2 million sq. ft mall off Bellary Road in north Bangalore, which he had shelved late last year. “We had even dissolved our entire retail team but now we are again at it, though we have to rethink our mix of retailers, etc.,” he said.

From the complete silence that reigned in the retail sector in the past two quarters, sign-ups have started though retailers are more demanding this time, said two retail analysts.

“The current set of mall developers are long-term players and are more cautious because retailers want to see that construction has begun, unlike earlier,” said Susil Dungarwal, founder of Beyond Squarefeet Advisory Pvt. Ltd, a mall advisory.

Retail investors, too, are hopeful of seeing more movement in an otherwise dull sector. Ivanhoe Cambridge Investment Advisory (India) Pvt. Ltd, a Canadian retail-focused fund, is close to signing a joint venture with a leading developer, almost a year-and-a-half after it announced its India plans.

“We see India as a long-term strategy, and the recent economic downturn has not impacted our interest in investing in quality shopping centre projects with competent local partners,” said Phil McArthur, senior vice-president, India, Ivanhoe Cambridge.

Source:http://www.livemint.com/2009/11/02214640/Builders-revive-stalled-commer.html

Home loan rates to harden as banks feel crunch news

The days of cheap home loans are drawing to a close as the Reserve Bank of India prepares to harden its key policy rates. Large public sector banks, such as the State Bank of India and Punjab National Bank, are reportedly planning to withdraw the special schemes that offer rates as low as 8 per cent for the initial years.

With the RBI sending out signals of a tighter monetary policy, banks may have to raise their home loan rates by January. Moreover, listed Indian banks may have to shell out more than Rs11,000 crore in the next one year to improve their cover towards non-performing assets to 70 per cent, as mandated by RBI’s recent monetary policy.

“Seeing the hawkish tone in RBI’s quarterly monetary policy review, the bank board thinks it may not be possible to continue with these schemes after the end of the current calendar year,” The Economic Times quoted an unnamed senior official with PNB, the country’s second-largest public sector lender, as saying.

While the special offers will be withdrawn from the end of the current calendar year, most banks are extending the festival offers, such as a zero processing fee, till then.

Currently, various banks are offering teaser rates for the first few years on home loans. Development Credit Bank is offering 7.95 per cent rate for the first year on their home loans. SBI, Dena Bank and Canara Bank are currently offering 8 per cent rate for the first few years.

After the offer period, such loans will be converted into floating rate loans.

Private sector banks, which were forced to offer lower rates after the announcement of special schemes by their state-owned rivals, are likely to hike rates once the public sector banks withdraw such schemes. Considering the fact that floating rate loans comprise a large part of the housing loan segment, any increase in rates will affect a large number of existing loans as well.

http://www.domain-b.com/finance/banks/20091102_home_loan_rates.html

Recession good for property buyers

The market may witness an over supply like condition in the affordable segment of residential real estate making prices range bound in times to come. Though the global financial crisis affected developers badly, it brought cheer to the middle class end users as builders were forced to bring down their units prices to the affordable range of Rs 5 lakh to Rs 30 lakh.

In fact, the crisis led to emergence of a new segment of affordable housing in residential real estate in the country. This helped revive realty market and instilled a new confidence among developers and end users, according to Samir Jasuja, founder CEO of PropEquity Research.

In order to bring down prices to drive sales, developers cut the rate by lowering specifications and also by reducing the size of units. The combined effect of cutting the rate and reducing the size led to a steep fall in prices of two and three-bedroom apartments, by as much as 30% to 40% from their peak level of early 2008.

The fall in prices spurred demand. Many developers even sold their entire projects in only a couple of days. This is mainly because developers could successfully convey the impression to buyers that availability of apartments at prices at which they offered would not last long. This made the buyers queue up to buy these apartments.

But as demand rose sharply in this category, more and more developers launched apartments in the affordable segments and supply increased manifold. According to Jasuja, this category is now beginning to get overcrowded with a rapid increase in supply, which is outstripping absorption and leading to an inventory pile up. According to the accompanying chart, absorption rate or sold-out rate in the last one year in apartments in the price range of Rs 5 to Rs 15 lakh is much better than that in the Rs 15 to Rs 30 lakh range. This is also because of the number of apartments launched in the Rs 5 to Rs 15 lakh price range is much smaller than that in the Rs 15 to Rs 30 lakh range in the National Capital Region (NCR).

Gurgaon saw the launch of maximum number of apartments in the affordable range. But the sold-out rate here is the second worst at 37%, next only after Greater Noida, where it is only 25%. As sales in affordable range of apartments picked up, many developers jumped onto the affordable housing bandwagon to bail themselves out of the global economic crisis.

Many of them treated affordable housing category as the new mantra in marketing and launched several projects in this category resulting in an oversupply in the market, Jasuja says. Interestingly, as demand picked up and number of transactions increased, many developers revised prices upwards, by around 10%. However, consultants feel price hike is more cosmetic in nature as developers are giving discounts over quoted prices. Some developers increased the quote prices, but the discount was also suitably hiked.

Data collected by PropEquity from 13 cities suggests that rate of sales (absorption) of affordable units have slowed down in the September 2009 quarter. In the early phase, the euphoria was mainly due to a huge pent up demand in the category. Falling absorption velocity coupled with an over supply in this category has now resulted in an inventory pile up. As cost of carrying inventory in real estate sector is very high, developers will resort to price correction at the cost of profits. But developers argue the prices are at rock bottom. In most of the areas of NCR, developers are selling apartments at 30% to 50% discount to the average price of apartments in the area. In most of the cases, they are working on a very thin profit margin.

Therefore, a further cut in prices will be a big disincentive to launch the project itself . However, bankers and consultants feel that most developers are under a huge debt. As they are not able to raise funds through equity-sell, they have no choice but to launch projects for the purpose.

Source:http://mail.google.com/mail/?shva=1#inbox/124a85c163d611fe

DLF plans to make affordable homes

New Delhi: India’s largest developer by market value, DLF Ltd, will now build apartments worth Rs30-50 lakh, a senior official said.

The realtor plans to launch 3-4 million sq. ft of what it called value housing in the current fiscal to March, Saurabh Chawla, senior vice-president, finance, told analysts on a conference call on Friday.

The projects will be located in Chandigarh, Gurgaon on the outskirts of New Delhi and on the fringes of Bangalore, Chennai and Hyderabad.

“Pricing will depend on the location and city, but we are largely looking at this price band (Rs30-50 lakh),” the company executive said on condition of anonymity. “You can’t compete in the market if your products cater only to a certain segment,” the official said, referring to DLF’s product portfolio that largely comprises houses in the Rs50 lakh plus range.

“Value housing will offer a smaller sized unit at prices lower than the premium segment of housing,” said its vice-chairman Rajiv Singh. “It is a lower extension of premium housing… We expect reasonably good money from this segment even when compared with premium housing.”

DLF’s rival Unitech Ltd recently launched a new brand, Uni Homes, which will offer homes in the Rs10-15 lakh range. Other developers such as Puravankara Projects Ltd also have separate brands for so-called low-cost housing.

DLF expects to make a margin of 25-30% from value housing, compared with 30-40% from its other projects.

“Some of the larger developers, who are sitting on land bought at an historical cost, have a competitive edge in the market, which offers them the flexibility to develop products according to the market needs,” said Anshuman Magazine, managing director of real estate consultancy firm CB Richard Ellis.

DLF expects to launch 12 million sq. ft of residential space, including lower priced housing in the second half of this fiscal. In the first half, the firm had launched around 5 million sq. ft of homes.

According to a presentation available on its website, DLF’s net debt has increased from Rs11,686 crore in the three months to June to Rs12,135 crore. In the September quarter, DLF repaid Rs394 crore and borrowed Rs183 crore. The firm added Rs165 crore of debt due to consolidation of land.

DLF Assets Ltd, which buys and holds completed commercial assets of the developer, still owes around Rs2,500 crore to DLF, Chawla said. In the second quarter, DLF Assets would have contributed around 10% to DLF’s revenue, he added. Till December last year, DLF Assets was contributing around 40% of the firm’s revenue.

Source:http://www.livemint.com/2009/10/30223329/DLF-plans-to-make-affordable-h.html?h=B

Matrix Partners India invests Rs 47.34 cr in Siesta Hospitality

Mumbai-based venture capital firm Matrix Partners India has invested around Rs 47.34 crore in Bengaluru-based Siesta Hospitality Services Ltd. Rishi Navani, Co–founder and Managing Director, Matrix Partners India said, “Siesta Hospitality has an innovative business model to address the hospitality needs of corporations.”

Ashok Chattaraj, Co-founder of Siesta Hospitality declined to disclose the stake acquired but said it was a minority one. E&Y advised Siesta Hospitality on the deal.

According to a report in livemint.com, Siesta Hospitality, set up in 2005, provides customised serviced apartments for travelling executives, based on specific requirements. The firm, which owns at least 500 rooms across 14 cities and counts Barclays Bank Plc, Citibank N A, and Nokia Siemens Networks Pvt Ltd, among others, also customises the apartment according to client specifications.

Source:http://www.hospitalitybizindia.com/detailNews.aspx?aid=6586&sid=1

Taj, Radisson to open hotels in Amritsar

To cash in on the growing demand of hotel rooms in Amritsar, not only local players but also major national and international hospitality chains are setting up new properties in the city. Among the prominent ones are Radisson, Holiday Inn and Taj Properties, according to sources. Experts in the hospitality sector say there is lot of demand of quality rooms in the city, especially from the NRI community and foreigners, besides high-end domestic tourists.

Recently, IHHR Hospitality Private Limited announced the opening of its five-star luxury hotel, Ista, in Amritsar. Ista Amritsar is the third in chain after Ista Bangalore and Ista Hyderabad.

Speaking to Business Standard, X-Cell Hotel Consultancy President Narbir Singh said, “Being one of India’s most popular religious tourist destinations, Amritsar has vast untapped potential in the area of hospitality. On an average there is demand of 200-250 good quality rooms, especially in the five-star category, from foreigners and NRIs. So, in order to serve that segment, major chains are planning to set up their properties. With infrastructure coming up, we expect NRIs would like to stay there for 2-3 days in order to enjoy their visit to the holy city for the Golden Temple, retreat at Wagah border, Durgiana temple etc. He added in absence of good quality rooms, people used to come in the morning and preferred going back the same day. “I am confident that these ventures by Radisson, Holiday Inn, Taj Properties will boost religious tourism as well as business prospects in the city and attract a lot of foreign and Indian travelers,” he said.

Experts also feel that since Amritsar is well connected with international flights, there is vast potential for the hospitality sector.

CII Punjab State Council Chairman Gunbir Singh said, “In 2007, we projected about 2,500 rooms would be added in Amritsar alone in next three year, but my perception is we are going to exceed the target.To support this sector, the government must encourage the industry, and also promote the tourism sector in the state.”

Source:http://www.business-standard.com/india/news/taj-radisson-to-open-hotels-in-amritsar/374980/