Residential property prices in north India inching up

Demand in the real estate sector has returned . And, with it, developers have raised prices of their products in most of the markets in north India.

However, prices in cities in south India have stabilised, with the exception of Bangalore, which is still witnessing a slight correction , according to a new report prepared by realty consultant Cushman Wakefield. Even after all this, prices are still lower than what they were a year ago. As the market has revived, a large number of developers have jumped in the fray with new launches.

This is expected to put some downward pressure on price points. However, with cash flow improving, developers may not go for distress selling soon.

According to the report, NCR and Mumbai have seen values climb up with the return of investors and an end users interest in the realty market in the third quarter ending September 2009. Certain suburban markets like Noida and Gurgaon witnessed even higher growth due to heavily discounted prices in the previous quarter ending June – particularly in the new launches.

After a sharp decline in the last few quarters, capital values have started to strengthen and register marginal appreciation across most micro-markets . Cyclical demand with festive season has resulted in strengthening of prices. The launch of new projects catering to the mid-segment witnessed heightened activity resulting in price escalation. Gurgaon and Noida are the key locations to witness this activity and registered the highest growth, 19% and 16%, respectively, during the quarter.

Gurgaon witnessed the highest growth in capital values in the mid-segment over the last quarter. By September quarter, capital values of apartments in the suburban city are quoting in the range of Rs 4,000 to 6,500 per sq ft. In the periphery of Gurgaon, the prices are as low as Rs 2,400 per sq ft.

After Gurgaon, Noida witnessed the sharpest appreciation in the prices at 16%. This is essentially due to the increase in purchase activity in the new projects catering to the mid-segment , said the report. At present, the prices are in the range of Rs 3,200 to Rs 5,500 per sq ft.

However, values are still below their all-time highs by about 5-12 % in NCR, 10-20 % in Bangalore, 6-18 % in Mumbai, 10-30 % in Pune, 6-12 % in Chennai, 7-20 % in Hyderabad, and 5-15 % in Kolkata.

Aditi Vijayakar, executive director (residential services) at Cushman & Wakefield said, “The price and the buyer’s sentiment are critical in the current market as key parameters influencing sales. Capital values in select locations in NCR, Pune and Mumbai are likely to see growth in the coming months. However, if prices increase too much too soon, there is a likelihood of them correcting again shortly; the ideal graph representing recovery should be gradual and in line with the demand that calls for a period of considerable stabilization before the hike. In the present scenario, the affordable housing segment holds the largest share of the demand pie and hence, any significant price increase in the high- and mid-segment would lead to another phase of corrections”

The appreciation of the rental values in the high-end residential locations of Delhi in the range of 8-12 % stands testimony to the increase in leasing activities in the region, the report points out. The rental value in suburban locations such as Gurgaon and Noida stabilized over the quarter despite addition of new stock due to latent demand in the region.

Source : http://economictimes.indiatimes.com/Residential-property-prices-in-north-India-inching-up/articleshow/5253761.cms

Doshi Housing launches Serene County in Chennai

Doshi Housing has launched a project offering a mix of independent homes, row houses and four-in-one residential units in Chennai. The project — ‘Doshi Se¬rene County’ offers 64 dw¬elling units, a majority of wh¬ich are independent houses, spread over an area of 3.09 acres at Santhoshapuram, a well-developed residential colony near Medavakkam, a southern suburb of the city on the Velachery-Tambaram High Road, reports Financial Chronicle.

“Unlike other projects that offer independent houses in either remote areas or places where there are hardly any residential or infrastructure development, ‘Doshi Serene County’ is in a well developed area,” quoted Mehul Doshi, director, Doshi Housing in the report.

The size of their independent houses range between 750 sq ft (1,200 sq ft built-up space) and 1,800 sq ft (2,400 sq ft built-up area). The prices range from Rs 46 lakh to Rs 99 lakh.

The project will have wide, smooth, tree-lined roads with street lights throughout the complex, the company said in a statement.

It also has a landscaped park of about three grounds, with children’s play equipment and a jogging track to provide a clean and green environment for physical activity, the report added.

The highlights of Doshi Serene County are tiles, modular switches, inverter, solar water heater and smooth ‘putty’-based wall finish. The clean straight lines and brick cladding premium houses will also come with a top-of-the-line internal specifications.

“Having geared up to offer homes with prices ranging bet¬ween Rs 46 lakh and Rs 1 crore, we have ensured that all internal specifications are really high-end,” said Doshi.

Besides, all the homes will have eco-friendly features with provision for solar water heaters and rainwater harvesting.

According to the company, all approvals have been re¬ceived and a model house is also ready for inspection. The project is slated for completion by June 2010.

“We launched the project last month and we already have bookings for 15 units. The enquiries are mostly from NRIs because they prefer independent homes. We also unveiled a similar project in Singapore recently,” Doshi added.

“Since the project location is just 8 km from the Sholinganallur junction on the IT corridor, we intend to target home buyers from the IT sector too,” said Doshi.

Doshi Housing, started more than 25 years ago, has so far constructed around 20 lakh sq ft of residential space in and around the city, the report said.

http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=6050&cat_id=1

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

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/

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

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/

Vasavi Housing Launches Green Residential Apartment Project In Chennai

Vasavi Housing Infrastructure has announced the launch of a Rs. 20 crore residential project ‘Anicham.’ For this project, a complete green house concept would be adopted which consists of 54 apartments (two and three bedrooms) at Kelambakkam on the outskirts of Chennai. The project is expected to complete by June 2011.

Source : The Hindu Business Line

Indian Residential property prices rise 15%

Wonder why Indian realty woke up so late when the US realtors started this almost 3-4 months back and are about to wind up their campaigns as there aren’t anymore buyers left for them to lure at these prices. Is RE really getting better in India, let’s see. Residential property prices rise 15%

The upswing has begun. Not only have the sales picked up, but the prices of residential property too have increased 5-15 % in the last couple of months. With a long festive season ahead, realty experts believe property markets could see heightened activity, provided developers desist from increasing prices of residential space any further. “After almost a year-and-a-half, we see a renewed demand in the residential sector.

During the last three months, sales have picked up by almost 100%, and with a long buying season ahead, the property prices will definitely move up the graph,” says Sameer Sinha of Savvy Infrastructures Ltd. “In Ahmedabad, going by conservative estimates, the prices of residential property is expected to rise by another 25-30 % in the next one year”, Mr Sinha said adding that the prices in the city have already risen by about 15% since the markets bottomed out earlier this year.

The fresh demand in the housing sector has boosted the confidence of developers as well. Earlier this month, the city-based body of developers, GIHED (Gujarat Institute of Housing and Estate Developers) displayed about 500 projects worth Rs 3,000 crore at property show in Ahmedabad. “As the economy recovers and grows on a pan-India basis, residential demand is expected to grow along side. C&W Research estimated demand to be over 7.5 million units by 2013 across all categories such as Economically Weaker Section, affordable mid segment and luxury segment. The residential demand for NCR, Mumbai, Bangalore, Pune, Chennai, Hyderabad and Kolkata is estimated to be 4.5 million units by 2013”, Ms Aditi Vijayakar added.

Has the author actually gone to ground zero. If you walk around Wakefield/IT park in Bangalore, you will see 1000’s of flats in vacant position either to be sold or lent out with NO takers. In fact, you can easily find an apartment that is NOT even ready at this time being sold at a discount of upto 40% to what the builder is quoting.

For example, if the builder is quoting 50L for a 2 BR in wakefield, Blore, you can easily find the same sized flat on some of the RE websites where owners have put up theirs for sale at a whoppingly low price of 30L. Now that’s the kind of demand these analysts who write all “hypothetical stuff” are seeing. Sentiment is improving in Hyderabad is another article. Hindu Business Line article

Referring to the supply situation, Mr Agrawall said that while there is glut in the Rs 50 lakh to Rs 1crore apartment and villa segments, the supply in the affordable segment is inadequate. In the Rs 1 crore and above category too the number of builders and projects are very few, he added.

All these projects costing 1 crore are at least 10-15 Kms away from the city. Traveling within city, from one end to the other takes an easy 2 hours. One can only imagine the pain one would need to take to travel if they buy at these places that too at exorbitant prices. This is a trend that is way too familiar. Stock market rises 100%. Everyone blindly puts money in it. Makes ton of money. They now move to RE. RE picks up for a little bit. Folks start the “cat and mouse” chasing game and force the prices to go up. When the number of such folks are done. RE comes crashing down.

One can write up a program depicting this behavior and pattern in india and put it in a loop. Unfortunately, common man who may not have access to gory stock markets or higher salaires is the one that gets trapped in all this mess. Common man always gets inot the chasing game at the very end. Like folks who have bought stocks in the last month are trapped for a good 6months to 1 year before they could realize a profit. Similar is the case with RE too.

Coming to affordability, with Labor pains growing not many folks are out there who could a) afford to buy a house, b) qualify for a loan to buy a house. If US market is any clue, then Indian RE market too will go down further. At the current juncture the oversupply of units is hurting and NOT the demand. Demand is and will always be there in a country that is growing. However, unrealistic predictions got Realtors into building too many units when they did not need. Another case in example is Raheja builders who are stuck with a multi-crore residential project in Bangalore whose construction has been shut-down after almost 70% of it being complete. What we at SB would like to state is that do NOT get swayed by those analysts articles and get too pumped up.

Always do your own research before jumping into any ship. Internet is a great resource, make the most of it. We have gotten so many feedbacks stating that we are always on the pessimistic side rather than being optimistic. Please do realize that you switch on TV, everyone will say buy stocks, buy houses. There wouldn’t be anyone who would say do NOT buy. Because everyone has a vested interest. We do NOT and hence our analysis is unbiased and true to our knowledge. And truth is always bitter.

Source:http://www.marketoracle.co.uk/Article14114.html

Commercial property sector boom expected in India from 2010 to 2013

A surge in demand for office space in India is set to revolutionize the commercial property market by 2013, it is predicted.

According to an investment report from consultants Cushman & Wakefield, the pan Indian demand for office space is expected to grow to 196 million square feet.

Demand for retail space and in the hospitality sector is also expected to be high with analysts predicting growth of 43 million square feet in retail and a requirement for 690,000 room nights in the same time space.

‘Though the high growth trajectory of the previous years saw a setback during the global economic slowdown, the inherent strong economic fundamentals, low exposure to debt and state intervention, would help the sector to gradually return to the path of recovery and witness robust demand for real estate across sectors,’ said Anurag Mathur, Managing Director, India, Cushman & Wakefield.

The report, Survival to Revival – Indian realty sector on the path to recovery, also indicates that demand for residential property will be over 7.5 million units by 2013 across all housing categories of which 85% is expected in the mid segment and affordable housing segment.

Of the total demand expected across India, 60% would be generated in the country’s top seven cities. Mumbai is expected to witness the highest cumulative demand of 1.6 million units by 2013 whereas Bangalore and Hyderabad are expected to see the highest compounded annual growth rate of 14%.

Total office space demand will be down in 2009, the report says, but from 2010 onwards the markets will experience a healthier demand.

The highest demand is expected in Bangalore with the need for 34 million square feet followed by Chennai at 27 million square feet.

This increase in demand is largely due to improving economic conditions leading to positive market sentiments and growing corporate confidence, the report adds.

In the retail sector Bangalore in likely to see the highest demand with approximately 6.8 million square feet needed and Pune is expected to record the highest compounded annual growth of 51% in the retail segment.

NCR and Mumbai are expected to see the highest increases in demand for rooms due to the higher volume of business travellers in these cities.

Various initiatives taken by the Indian government to promote commercial and tourism activity in these locations will add to growth.

Source : http://www.propertywire.com/news/asia/report-predicts-commercial-boom-200910063561.html

Despite Slowdown India to Add 40 mn sq ft Office Space This Year

With the economy regaining its momentum slowly, India will add up to 40 million sq ft of office space this year, which will be higher than many other advanced countries, but lesser than China. “Despite the slowdown, India will add highest ever office spaces this year. We will see 30-40 million sq ft of office space coming up in 2009,” global real estate consultant firm CB Richard Ellis Chairman and Managing Director (South Asia) Anshuman Magazine said.

The addition of office space will be more compared to many other advanced countries, except China, he added. Magazine, however, said demand has not picked up yet and the huge supply would lead to correction in rentals. “Prices can further fall in certain pockets depending on how much supply these places can absorb. In other places, prices have almost stagnated,” Magazine said, adding that some locations in Bangalore are likely to see decrease in rentals.

“After 2-3 years when supply will decrease and demand will increase, probably then we will reach at a stage of equilibrium,” replied Magazine when asked about the time by which office-space rentals could stabilise. Although office-space demand has increased in the first two quarters in 2009, Magazine said it would take time for “actual demand to pick up”.

“IT companies are responsible for 80 per cent of the total demand for office locations and these were the most impacted firms during the recession… But next year supply will dip by atleast 20 per cent,” he added. Of the total anticipated supply this year, Mumbai, Bangalore and the National Capital Region will house most of the spaces. “Chennai, Hyderabad, Kolkata and Ahmedabad will also see considerable addition of office spaces,” Magazine said.

Source : http://www.indianrealtynews.com/property-prices/despite-slowdown-india-to-add-40-mn-sq-ft-office-space-this-year.html

RE/MAX expanding network in South

RE/MAX, a US-based international property brokerage chain, is expanding its franchise network in the South. It has firmed up a master regional franchise for Tamil Nadu (excluding Chennai, for which it finalised a franchisee in June) and will soon expand into Andhra Pradesh, Goa and Gujarat.

According to Mr Sam Chopra, Director, RE/MAX India, and part of a group that operates the Indian master franchise, since its launch in April RE/MAX has tied up with regional franchisees in seven States representing 32 regions for RE/MAX. In the South it has expanded into Karnataka, Kerala and Tamil Nadu.

RE/MAX is present in over 74 countries and 7,000 offices and aims to introduce a degree of professionalism and accountability into the business of real estate brokerage which is dominated by the unorganised sector. The key feature on which it builds its network is that, unlike the typical brokerage business, the major share of a commission in a property deal is left to the ground level associate rather than the top man.

RE/MAX’s system provides for a 2-3 per cent commission on transactions and the maximum share of the commission goes to the field-level staff. The personnel who actually effect the transactions and the broker office share over 90 per cent of the commission, 7 per cent goes to the region owner, 2.1 per cent to the India master franchisee and 0.9 per cent to RE/MAX International.

In addition, the brokers get the strength of RE/MAX’s brand building exercise, apart from training and the backing of an international chain in getting a client base.

While most international property consultants stick to major deals, RE/MAX will handle property transactions across the entire gamut of real estate business covering residential, commercial and industrial deals, he said.

Source : http://www.thehindubusinessline.com/iw/2009/10/04/stories/2009100450531300.htm

Residential property prices rise 15%

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

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

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

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

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

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

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

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

Carlson enters Chennai with Rs 78-cr hotel

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

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

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

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

Balaji Resorts put up for sale

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

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

Super-luxury is back in the realty lexicon

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

3C Company’s new project

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

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

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

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

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

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

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

Hiranandani Upscale’s Chennai project

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

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

Festive offers from Amrapali Group

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

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

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

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

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

Rakindo, Appaswamy strike Rs 100-crore deal

Appaswamy Real Estates has struck a deal with the Rakindo Group to jointly develop large-sized residential projects in the key
locations of Kotturpuram and Pallikarnai in Chennai. The projects, coming up on 110 grounds (1 ground = 2400 sq ft), is estimated to have a sale value of Rs 250 crore.

Though the land-owner and the developer did not divulge on the deal details as far as price is concerned, industry trackers ET spoke to peg the 30-ground Kotturpuram property at Rs 60-crore and that of Pallikarnai (80 grounds) at Rs 40-crore.

Rakindo Group is making its debut in India with its $1.5 billion integrated township project in Coimbatore. Construction activity has been on for a while now. According to a senior Rakindo official, integrated township is its forte.

But as development in central business districts is not its core competence, the group decided to partner with Appaswamy Real Estates, its MD Prasad Koneru told ET.

Incidentally, both the properties were purchased recently after long drawn negotiations but it is gleaned from the market that the deal between Appaswamy Real Estates and Rakindo Group was struck last month. The Kotturpuram property was purchased from a Christian association, while the other land parcel in Pallikarnai was bought from an individual.

It is learnt that the Locke Road Kotturpuram property is located next to Kottur Villa, a property developed by Appaswamy Real Estates, and is in the vicinity of Adyar villa area, belonging to Spic CMD A C Muthiah. The Pallikarnai land parcel is situated a kilometre away from Kamakoti hospital on the Medavakkam-Velachery road.

When contacted, Appaswamy COO T S S Krishnan confirmed that the deal was concluded about a month ago. There is a proposal to develop multi-storied buildings over 5.30 lakh sq ft in Pallikarnai and 1.25 lakh sq ft in Kotturpuram. Of the total 6.55 lakh sq ft built area, Rakindo is to get a share of 2.6 lakh sq ft built up area.

Two special purpose vehicles would be floated to execute the projects, he said.

Rakindo Group is a joint venture between Rakeen, a joint stock company promoted by the government of Ras-Al-Khaimah, UAE and the Trimex Group, India. The property development and master planning company has been designing and developing properties and resorts in the Middle East, China, India and Europe.

Source:http://economictimes.indiatimes.com/articleshow/5015590.cms

Government slashes amenities charges

In what could be termed a major relief for developers and home buyers, the state government on Wednesday slashed infrastructure and basic amenities charges by 50 to 75 per cent across various categories of buildings. The revised rates will come into effect from September 9, 2009. However, all projects which have been given approval, or for which demand notes have been raised by the regulatory agencies till Tuesday, will not stand to benefit. These projects will have to pay the amenities charges as per the earlier rates.

The biggest beneficiaries of the government’s latest decision are people proposing to buy apartments in multi-storeyed buildings in Chennai and Chengalpet region, for whom, the amenities charge has been brought down from Rs 1,000 per sq metre to Rs 250 per sq metre. It works out to a reduction of roughly Rs 75 per sq ft. The revised rates will have to be paid upfront as a one-time payment for obtaining plan approval for buildings.

A government order issued in this regard on Wednesday pointed out that the government had taken into consideration the slump in the construction industry, dip in real estate sales and high rates of interest for housing loans while taking such a decision.

The revised infrastructure charges for various categories of buildings are as follows: for multi-storeyed buildings which are commercial, IT, industrial or institutional in nature or that have a combination of such activities, the levy is Rs 500 per sq metre in Chennai and Chengalpet region. In Coimbatore and Tirupur region, the amenities charge for multi-storeyed buildings is Rs 375 per sq metre and in other regions it is Rs 250 per sq metre.

For multi-storeyed residential buildings across the state, a uniform infrastructure charge of Rs 250 per sq metre is applicable. For non-multi-storeyed commercial, IT, group development or special buildings (either ground-plus-three floors or stilt-plus-four floors) amenities charge is Rs 250 per sq metre in Chennai and Chengelpet region, Rs 190 per sq metre in Coimbatore and Tirupur and Rs 125 per sq metre in other regions.

For institutional buildings which are not multi-storeyed, the levy is Rs 100 per sq metre in Chennai and Chengalpet region, Rs 75 per sq metre in Coimbatore and Tirupur and Rs 50 per sq metre in other areas.

For non-multi-storeyed industrial buildings the amenities charge is Rs 150 per sq metre in Chennai and Chengalpet, Rs 112.5 per sq metre in Coimbatore and Tirupur and Rs 75 per sq metre in other areas.

Confederation of Real Estate Developers’ Association of India Tamil Nadu chapter president Prakash Challa, while welcoming the move, said, “We will directly pass on the benefit to the customers. We thank the government for heeding to our request. But we are disappointed that the government has not given retrospective effect to the GO. It will lead to unnecessary litigation because in our state a planning process takes two years. Buildings which were planned three years ago, when no such infrastructure charge was there, had to pay the levy because by the time their approvals came, the government had introduced the amenities charge. Hence, the benefit being given to new buildings should be extended to all projects which were cleared since April 8, 2008 (when the previous GO was issued).”

source:http://timesofindia.indiatimes.com/news/city/chennai/Government-slashes-amenities-charges-/articleshow/4992430.cms

Bolywood Actress Malaika Arora to Launch India’s First Rent-Free Malls

Mumbai, Sep 9: Entertainment World Developers Private Limited (EWDPL), a front-runner in developing shopping Malls, residential townships and hospitality projects, has just announced ‘Treasure Showcase’ – a concept that offers Indian manufacturers and emerging brands to virtually showcase their products / brands in a modern, world-class mall environment.

The most notable feature of Treasure Showcase is that it is a unique ‘no-rent, no cam, no deposit and no maintenance’, which will be featured in 20 malls in 11 states across India by 2011, offering one million square feet of international quality retail space on a revenue share basis. The cities include Agra, Amaravati, Bangalore, Bareilly, Bhilai, Chennai, Hyderabad, Indore, Jabalpur, Kolkata, Lucknow, Mumbai, Mohali, Nanded, Pune, Raipur, Thiruvanathapuram, Udaipur, Ujjain and Vadodara, featuring categories ranging from apparel, footwear, electronics, food, accessories, cosmetics, jewellery and home furnishings. ‘Treasure Showcase’, in fact, is the new face of Indian retail. It is an opportunity for every manufacturer / brand with a vision, to gain from modern retail and take their brand across the nation.

“With ‘Treasure Showcase’, the idea is to enable more Indian products and brands to benefit from modern retail practices, leveraging retail intelligence and a new business / revenue model. Here, emerging brands will rub shoulders with established brands under the same roof. Besides, it will also lead to an increase in footfalls, drawing in consumers, who are currently non-mall customers, offering them greater choice,” said Manish Kalani, managing director of EWDPL.

According to him, EWDPL has always believed that besides creating world-class retail infrastructure, its role is really to promote consumption, by providing emerging Indian consumers access to a wider bouquet of brands / merchandise / choice / price points. This will help modern retail create fresh demand and generate new revenue streams.

Keeping this in mind, EWDPL is creating Retailocracy and a level playing field between what is considered traditional retail and modern retail. The idea is to expand the market for modern retail by promoting consumption and innovating retail, thereby enabling emerging and aspiring manufacturers and brands to enter malls.

Kalani strongly believes that everyone should gain from the emergence of modern retail – manufacturers, brands, retail realty developers and most of all consumers. According to Kalani, while India’s aggregate consumption is set to quadruple by 2025, the emerging middle class in metros, cities and towns will significantly drive consumption across categories, thus creating the need for a whole new generation of brands that are young, trendy and affordable.

‘Treasure Showcase’ brings its partners, mall management experience, operational and retail expertise, trend spotting and an opportunity to be alongside the world’s best brands and reach customers directly. Further, management information systems and databases will be shared to ensure a profitable and efficient business, added Kalani.

Gaurav Marya, president of Franchise India, strategic partners for ‘Treasure Showcase’, said, “internationally, revenue sharing model is getting popular and we feel this will unleash a new era of retailing in India.”

The group expects to generate revenues of over Rs 500 crore by 2011 from Treasure Showcase. Nearly Rs 300 crore will be invested in creating and promoting Treasure Showcase, which would include the cost of real estate. The whole concept will be based on a transparent / pre-determined margin sharing revenue model, added Kalani.

“This concept would have a great impact on the real estate industry, as more realty players will formally join the fray, which will lead to market expansion for modern retail,” said Marya.

Kalani, Marya and others were present at the press meet that was held at Taj Land Ends, here on Tuesday September 8.

Source : http://www.daijiworld.com/news/news_disp.asp?n_id=65437&n_tit=Bolywood+Actress+Malaika+Arora+to+Launch+India%92s+First+Rent-Free+Malls++

Hospitality giant on land hunt for city address

KOLKATA: Zuri Hotels & Resorts a multinational conglomerate promoted by a consortium of investors from West Asia is scouting for opportunities in Kolkata. The company is open to contract management opportunities as well as setting up its own hotel in the city. The Zuri Group is into real estate, floriculture and hospitality with resorts and hotels in Kenya, the UK and India.

“The Zuri group sees tremendous potential in Kolkata and rest of the east. We are keen to be present in the hospitality sector here at the earliest. We are in talks with a couple of hotels on a possible management contract and use of the Zuri brand. If something does not work out within six months, we will look at a 1.5-2 acre plot in Kolkata proper to set up a 140-170 room business hotel. The investment will be around Rs 200-225 crore,” said Aditya Mata, general manager of the Zuri group’s flagship property in Kumarakom, Kerala. The group owns two other hotels in Goa and one in Bangalore.

The team currently camping in Kolkata to negotiate with potential partners is looking for a property with large banqueting facility to tap the marriage market. “Since marriages in Kolkata are elaborate, we want to get into the business. It’s a good money-spinner as well,” said Mata.

Incidentally, the company was looking for land in New Town and Rajarhat but developed cold feet after the Vedic land scam. “Land has become a hot potato. The thing that happened in Rajarhat was an eye-opener. We are now looking for a property in the central business district,” company spokesperson Priti Chand said.

Apart from Kolkata, the group is eyeing properties in Ahmedabad, Pune, Chennai, Nagpur, Visakhapatnam and Mysore. While three of the four hotels that the group has in India are resorts, the company is now looking at business hotels that have a shorter return on investment.

Meanwhile, city-based Gama Hospitality (GHPL) on Tuesday signed a master franchisee agreement with Global Franchise Architects (GFA) to launch four international brands Coffee World, Pizza Corner, The Cream & Fudge Factory and The Donut Baker in the eastern region. With an investment of Rs 52 crore, GHPL will focus on Kolkata in the initial phase this year.

“We intend to open 35 outlets in this part of the country in the next 18 to 24 months using up a cumulative floor-space of about 42,000 square feet. All the four brands should be in Kolkata by the end of this year,” Gama’s director Gaurav Agarwala said.

source :http://timesofindia.indiatimes.com/news/city/kolkata-/Hospitality-giant-on-land-hunt-for-city-address/articleshow/4988332.cms

Housing for senior citizens

Amidst the clamour and claims of realtors that they are making a range of houses, from luxury to affordable, for their customers, a major question remains – whether there is anything in it for senior citizens? Not really, at least in this part of the country.

Perhaps, unthinkingly, realty firms have for long ignored the claims of senior citizens. Experts feel realtors must not ignore the special needs of senior citizens when they design their residential projects as these are people who have given their youth to build the society of today, and that they deserve a better deal enabling them to lead a peaceful and dignified life after retirement.

Sunil Jindal, CEO of realty firm SVP Builders, says they keep in mind interests of people of all age groups while designing their housing projects. For youngsters, he says, they provide facilities from gym to swimming pools inside the complex. And for senior citizens, they provide facilities like reading rooms, round-the-clock security, water softening plants, uninterrupted power supply, and maintenance services. However, they have never made homes exclusively designed to cater to them.

There are reports that some realty firms in cities like Chennai, Coimbatore and Kochi are designing and building flats exclusively for senior citizens. Since they are making flats for senior citizens, they are providing in-house medical facilities, available round the week, throughout the year. Most of these projects also have lounges for yoga and meditation. Domestic help, laundry service and maintenance services are also available in-house at all times.

Sanjay Singh, VP (marketing) at Century 21 India, says houses specially designed for senior citizens are not new down South and that many realty firms are making homes for them inside or on the outskirts of major cities there. According to him, Chennai already has some residential projects for senior citizens and more are on the cards. Moreover, professional services such as legal and financial consulting, alarm hooters and community halls are also provided in homes for them. These homes are also equipped with access ramps to common facilities, wider doorways, extra lighting, larger lifts, and centrally located common amenities.

Dr Nazma Rizvi of School of Planning and Architecture (SPA), strongly feels that if realty firms make specially designed homes for senior citizens in NCR, they would get a good response. “Senior citizens purchase such homes. If there is good demand for such flats in places like Chennai and Kochi, there is no reason such flats would not find buyers in this part of the country.”

According to one report, a builder in Chennai specially designed apartments for the elderly with larger ramps and lifts. Extra rest rooms are provided in the common areas, and normally, residents prefer to have a larger green space in these projects.

Pavan Dhir, a social worker active in East Delhi, says that currently our leaders and intellectuals only talk about the youth of India. While talking about them, they should not ignore the legitimate concerns and interests of senior citizens in the twilight years of their lives. According to him, senior citizens were 7.5% of the population in 1991 and the number is expected to go up to 10% by 2015.

Alimuddin Rafi Ahmad, CMD of realty firm ILD, admitted that the realty firms in this part of the country somehow failed to look after the interests of senior citizens. “They can make homes for this section of the society. They deserve something special from the society,” he says.

Dr Rizvi says realty firms must take care the interests of disabled a well as senior citizens while building their projects. “It is really sad that even though real estate sector has taken huge strides in India over the last couple of years, yet not many real estate firms make buildings accessible for the elderly populace. For instance, there are not many building where one can find lifts that can easily accommodate wheelchairs. Cabinets are fixed in bathrooms, bedrooms and kitchens at a height that can give jitters to disabled persons,” he concludes ruefully.

Source : http://mail.google.com/mail/?shva=1#inbox/1239767df20821a2

Making affordable housing workable

At the ‘Housing for All’ seminar, the emphasis was on involving the private and cooperative sectors in developing housing with land made available by the public sector.

A focussed policy is needed to lower cost of housing and encourage public-private partnership to bring land available with the public sector for development by the private sector, said Mr D. P. Yadav, Managing Director, Tamil Nadu Housing Board.

Addressing a seminar on ‘Housing for all’ organised by the Confederation of Indian Industry – Chennai Zone and the State chapter of Confederation of Real Estate Developers Association of India (CREDAI), he said State governments need a policy approach to address the housing needs of the economically weaker sections and the low-income groups. Some States such as Gujarat, Karnataka and Punjab have moved towards making available land to the building industry to set up affordable housing.

Transport bottleneck

Transport infrastructure gap was another important cause for the bottleneck in supply of affordable housing, he felt. In the 1960s and 1970s, the TNHB had developed suburban areas which were now a part of the city. But areas more to the periphery could not be developed because transport was not available for people to move efficiently at affordable cost. Even now the city could grow and affordable housing supply increased if adequate transport was available to tap the land in the peripheries.

Mr Surjit Chaudhary, Secretary, Housing and Urban Development, Tamil Nadu, said that it was ironic that developers focussed on the creamy layer of the market while 98 per cent of the market demand was in the middle- and low-income groups, which need affordable housing. Builders need to shift their focus to the segment where there is demand.

Mr Vikram Kapur, Member Secretary, Chennai Metropolitan Development Authority, said that the Centre’s National Urban Housing and Habitat Policy 2007 highlights that 99 per cent of the housing shortage was in the economically weaker and low income segments.

The shortage of 26 million residential units would involve an investment of over Rs 3.61 lakh crore to bridge. Chennai alone would need over 1.23 million dwelling units, but the current supply was about a fifth of that.

The Centre has provided for subsidies under the JNNURM for increasing supply of housing to the economically weaker and low income segments. The State Government has provided for additional built-up space for builders to cater to these segments.

If land could be made available by the public sector, then the private and cooperative sectors could be involved in developing housing. Some element of cross subsidy could also be enabled by allowing middle income housing and commercial development and make the project attractive to the builders.

Builders’ view
According to Mr R. Kumar, Managing Director, Navin Housing and Properties (P) Ltd, the options available for builders to bring down prices was by cutting down on the size of residential units and introducing modern technology. But significant reductions could be achieved if land cost could be controlled, the time taken to obtain statutory clearances reduced and taxes and levies brought down for the benefit of the buyers.

For a project within city limits, these costs alone worked out to over Rs 8,100 a sq.ft and in the suburbs to about Rs 3,800. Under these conditions, housing supply could never be affordable anywhere in the vicinity of the city.

Mr Prakash Challa, President, CREDAI – Tamil Nadu, proposed the development of Special Residential Zones, a concept being suggested by the builders’ body.

Along the lines of the Special Economic Zone for industry, such residential zones could be promoted to encourage affordable housing. Costs could be brought down through incentives and land made available by the Government.

Source : http://www.thehindubusinessline.com/iw/2009/09/06/stories/2009090650711500.htm

LIC to develop hotel in Chennai

Chennai, Sept. 3 Life Insurance Corporation south zone expects to develop a hotel on the 2.8 acres of property it has in Pallavaram, in Chennai. This would be the first property to be developed as a hotel. LIC has so far developed property for other commercial purposes. South zone comprises Tamil Nadu, Kerala and Puducherry.

Sources close to the development said the company is in talks with hotels chains. The property would be developed by LIC and given on long lease to the hotel chain. LIC had bought this property from Hindustan Unilever for Rs 63 crore two years ago. It had also bought about seven acres of property valued at Rs 110 crore from Amrutanjan last year. The south zone earns about Rs 6 crore as rentals a year from various properties it has across the two States and Union Territory.

Micro insurance

LIC south zone has so far settled 500 claims worth about Rs 75 lakh on its first micro insurance policy called Jeevan Madhur, launched two years ago. It has so far covered about 6 lakh people.

Asked about the experience of micro insurance, Mr V.K. Sharma, Zonal Manager, said the policy was targeted at the low income group and was launched on no-profit basis.

The more number of people insured the better as the fixed cost is lower, he said. Under this policy, the minimum sum insured is Rs 5,000 and the maximum Rs 30,000. As the policyholders are mainly daily wage earners, the flexibility of premium payment is given on weekly basis.

LIC on Thursday launched a term assurance micro insurance plan. The minimum and maximum sum insured would be Rs 10,000 and Rs 50,000 respectively.

 Source : http://www.thehindubusinessline.com/2009/09/04/stories/2009090451310600.htm

South India’s largest mall to be ready next year

CHENNAI – The first phase of the 1.8 million sq. ft. Rs.750 crore Express Avenue, billed to be south India’s largest shopping mall cum commercial and hospitality complex, is expected to be ready here early next year.

“The first phase will have 11 lakh sq.ft. retail space and will house about 260 retailers – anchor retailers like Lifestyle, Future Group – and others, food court, multiplex theatres,” R.R. Aroonkumar, chief financial officer of Express Infrastructure Pvt Ltd, told IANS Tuesday.

According to him, 64 percent of the retail space has been booked and negotiations are on for the rest.

“There is cautious optimism now and we are confident of booking the balance space. The second phase will comprise of commercial office space and hotels which will start after the first phase gets stabilised.”

Express Infrastructure has signed an 18-year multiplex theatre lease agreement with Sathyam Cinemas for running eight theatres inside Express Avenue.

Source : http://blog.taragana.com/n/south-indias-largest-mall-to-be-ready-next-year-156343/

Puravankara, Mexico’s Homex talk JV

Bangalore: Realty major Puravankara Projects is in talks for an alliance with Homex, a Mexican company that specialises in affordable housing.

The idea is to give a boost to its affordable housing subsidiary Provident Housing.
Ashish Puravankara, director, Puravankara Projects, said, “We are holding discussions with Homex as they have build a large number of affordable homes. They like our business model and are very keen to tie up.” He did not divulge the nature of the alliance.

Homex is vertically integrated home development company focused on affordable-entry level and middle-income housing. It is also the largest home builder in Mexico, based on the number of homes sold, revenues and net income. It has so far delivered around 270,000 homes.

Its affordable entry-level housing ranges between 452 sq ft and 818 sq ft in size and its middle-income apartments are typically 818-1,851 sq ft.

Homex has operations in 32 cities located in 20 Mexican states as of December 2008.
Homex integrates aluminum moulds into its construction process. With this method, the shell of an entire home can be constructed from concrete poured into as many as 1,000 interconnected pieces of aluminium moulding for an affordable entry-level home.

Once the concrete hardens, the moulds are disassembled for use on another home. Each mould can be used as many as 2,000 times. The method also generates less waste, reducing materials cost. Most importantly, the mould system reduces the average time of construction.

Provident Housing has roped in SBI Capital and Housing and Urban Development Corp to raise funds for it affordable venture. The firm is currently at an advanced stage of talks with private equity investors for diluting stake on a project level and hopes to close the deal soon.

It has already launched two projects in Bangalore and Chennai and is in the process of launching its second project totalling 6 million sq ft in size in Bangalore with an investment of around Rs 900 crore.

The project is expected to have 6,000 apartments. It is currently waiting for sanction to kick start the project.

The real estate player will invest Rs 1,900 crore by 2010 on three affordable housing projects in Bangalore and Chennai. The three projects, slated to be ready by 2010-11, will house 15,000 units.

The one, two and three bedroom flats will be priced at Rs 10 lakh, Rs 15 lakh and Rs 20 lakh respectively spanning from 750 sq ft to 1,100 sq ft.

Provident Housing will also roll out the concept to other cities like Hyderabad, Coimbatore and Mysore in the Phase I. In Phase II it will set up properties in Delhi, Kolkata, Kochi, Jaipur, Pune and Nagpur.

Source : http://www.dnaindia.com/money/report_puravankara-mexico-s-homex-talk-jv_1284925

Office space rentals decline at slower rate

While there has been a drop in the rate of decline in office space rental rates in the country in the second quarter of the current fiscal, the absorption rate has shown an uptrend for the first time in four quarters. This is according to a recent research report — State of the Office Sector – by financial and professional services firm Jones Lang LaSalle Meghraj (JLLM). The report shows that the rate of decline, as a national average, has slowed to 8.3 per sent in the second quarter, compared with a dramatic drop of 18.8 per cent in the previous quarter. Nation-wide, rates had dropped sharply in the first quarter of this fiscal as compared with an 8.6 per cent drop in the last quarter of the previous fiscal.The report’s author, JLLM research head Abhishek Kiran Gupta has attributed slowdown in rate of decline of office space rental rates to four factors that have helped shape the Indian economy over the past six months. The factors pointed to are: Firstly, increased liquidity in the market due to fiscal measures taken by the government. Secondly, a sharp rise of 4,536 points in the Sensex in the first six months of this fiscal. The index has risen over 50 per cent after hitting a low of 8,451 points on November 20 of last year post the Lehman Brothers-led global financial crash. Thirdly, strengthened political stability with the UPA governments being sworn back into to power and sweeping the elections by a large margin. The government has also shown its resolve in boosting the economy with a string of fiscal measures as well as its decision to disinvest large public sector undertakings. And lastly, green shoots that are now being seen in the affordable segment of the residential sector. There has been a rise in the number of developers embarking on affordable housing projects across the nation. The study covers seven cities — Hyderabad, Mumbai, Delhi, Kolkata, Bangalore, Chennai and Pune. It, however, does not include Chandigarh. While only Hyderabad has shown a steady decline in office space rentals quarter-on-quarter — from (-)5.8 per cent in Q4 of the previous fiscal to (-)7.6 per cent in Q1 and a further drop to (-)10.4 per cent in Q2 of this fiscal — all other cities, except Pune, have shown a drop in the rate of decline. In Pune, the decline in office space rental rates has been witness to a gradual slowing down — from (-)17.3 per cent in Q4 of the previous fiscal, to (-) 12.9 per cent in Q1 of the current fiscal, to a weak (-)4.2 per cent in Q2. The country’s financial and political capitals — Mumbai and Delhi — have seen a drastic drop in rate of decline. Both cities have seen a near-13 percentage point drop in rate of decline of office space rentals. Gupta contends that the factors that led to the slowdown in decline, coupled with the gradual revival of opportunistic demand, have led to strengthening of absorption rates.

After decreasing since Q2 of the previous fiscal, absorption rate at the pan-India level has picked up for the first time in a year in Q2 of the present fiscal — inching from a low of 7 per cent in Q1 of this fiscal to 13 per cent in Q2. The JLLM study notes: “Net Absorption of office space in Q2 stood at around 4 million square feet, doubling from (the) previous quarter. About 1.8 million square feet of absorption in Q2 is contributed by pre-leased projects of SBD (small business development) Bangalore, which became operational in the quarter. Gupta, in the report, goes on to state that “considerable rationalisation of rents in the information technology (IT) as well as non-IT spaces (has resulted in) opportunistic demand led by domestic occupiers who have expanded their real estate portfolios in various Indian cities. Apart from IT/ITES and BFSI (banking, financial services and insurance) sector, other sunshine sectors -– like telecommunications, pharmaceutical and automotive — are leasing out office spaces in various Indian cities”.

The seven cities covered in the nationwide survey witnessed completions of 7.5 million square feet of office space in Q2 of the current fiscal, taking the total operational office stock to 200 million sq ft. “While vacancy in office space decreased at the country-level from 12.6 per cent in Q1 of the previous fiscal to 11.1 per cent in Q2 of the current fiscal — on account of completion of a few projects and better absorption — it has witnessed a year-on-year rise of 490 basis points,” says Gupta.

There are also chances of high vacancy levels in micro-markets through 2010. As total operational office stock continues to grow, the vacant space available in operational projects continues to augment itself to massive proportions.

Source : http://www.expressestates.in/full_story.php?content_id=93889

Changing Real Estate Scenario in Tier 2 and Tier 3 Cities

The demand fundamentals of the India story are now focused around all cities that have sufficient economic activity, be it industrial, service sector-driven or incentive-driven programs by the State Government. In Gujarat, which has seen considerable industrial progress, the key cities of Ahmedabad, Surat and Vadodara come readily to mind. Baddi in Himachal Pradesh and Pantnagar and Rudrapur in Uttaranchal attracted a lot of residential developers that met with success, thanks to proactive Government policies. In the South, Coimbatore, Vizag and Kochi emerged, either thanks to a large investor segment or as the outcome of sufficient economic activity. Towards the West, Pune, Nasik and Nagpur are noteworthy in this context. In all cases, developers positioned their development close to industrial hubs, targeting a totally different price segment and making the most of it.

This said, every developer was inspired to create a national footprint three to four years back. While this was a worthy ambition, it was poorly conceived as a plan since many of them did not factor in State Government-level regulatory challenges such as local municipal laws. They also did not consider that they may not have had the requisite financial resources, organizational depth and knowledge of the local markets to manage and execute projects in Tier II and Tier III cities. Nor had they accurately gauged the demand fundamentals of these locations. Such developers proceeded to enter into land acquisition on their own equity and were caught short-footed, not realising that the property cycles were then at their peak, and that there was bound to be a correction – if not a fall.

Major players are now going to re-align their positions vis-à-vis unexplored territories. There is now a very clear realisation that it is extremely difficult to become a genuine Pan India player in every geography and real estate segment. Moreover, developers today have woken up to the fact that there is only limited capital available to real estate players today – capital that is earmarked for residential projects, construction funding against achieved leases and signed contracts, or for cities displaying sufficient demand even in subdued market conditions. In the current context, it makes sense for developers to re-strategize and focus on their core geographies. For example, if a certain developer is extremely accomplished as a residential player in the South, having high credibility and sufficient brand recall in this region, such a company would ask itself how wise it is to experiment in the North or the West, and whether it would not make more sense to expand in the South.

Likewise, developers accomplished in IT projects would now concentrate on geographies that feature a healthy IT component, and avoid branching out into cities that lack a sufficient volume of such activity. Such developers would see the virtue of focusing on IT-centric cities such as Bangalore, Hyderabad, Chennai, Mumbai, Gurgaon and Pune, and re-think on plans to invest in cities that lack Information Technology activity. Tier II and Tier III cities still represent a great story, especially in terms of affordable housing for industrial workforces. However, this story may no longer be suitable for some of the larger developers. These are locations where the strength of regional players will come into play. There is at least one strong developer in every region. For instance, Panchshil Realty, Magarpatta, Paranjape Builders and Kumar Builders are very powerful local brands in Pune, with a company like Pharande Spaces practically spearheading the residential drive in Pune’s PCMC area. These brands have demonstrated that they understand their geographies better than any players who arrive from the outside to experiment on the Tier II / Tier III story.

The success of these local developers will inspire larger developers from beyond a region’s borders after the fundamentals of that area’s demand are captured sufficiently and the markets are sanitised in terms of municipal and financial market stabilisation. In the next one to two years, developers will have realigned their business strategies sufficiently to leverage the potential of Tier II / III cities that have sufficient market drivers or are witnessing considerable investor activity (such as Kochi, Surat, Mohali and Chandigarh).

Source : http://www.indianrealtynews.com/real-estate-india/changing-real-estate-scenario-in-tier-2-and-tier-3-cities.html

Realtors turn malls and office plans into homes

Mumbai: Residentials hot, commercial space not.

With developers forced to return to the drawing board to make projects financially viable, the landscape is, indeed, changing.

Look what TTK Prestige, the cooker-to-condom maker, said in a notice to the Bombay Stock Exchange last week.

In 2007, the company had entered into a joint development agreement with Kolkata-based Salarpuria Group to develop a 6.3 acre site in Dooravani Nagar, Bangalore.

The initial plan was to construct a mall to ensure recurring rentals. But the financial crisis has forced a change: residential blocks will be added to the project.

“Taking into account the ground reality, Salarpuria suggested putting up a residential-cum-office space. But a decision on this is yet to be taken,” said K Shankaran, director and secretary, TTK Prestige.

The management feels the new plan makes sense from a liquidity point of view.

Also last week, another firm, Sunteck Realty, said it was revisiting its project –a commercial complex on a 1.5 acre site between Kandivali and Borivali. “The project hadn’t even reached the drawing board when we closed the deal a few months back. However, taking into account the oversupply situation in Mumbai’s commercial space, we thought it prudent to develop a high-end residential complex instead, with a small portion of retail added to it,” said Sunteck Realty managing director Kamal Khetan.

Orbit Corporation, the south Mumbai realtor, decided convert its 2.5 lakh sq ft commercial development, called the Hafeez Contractor House in Lower Parel, into a residential project.

Pujeet Agarwal, managing director, Orbit, said the company is actually converting two commercial developments — the Lower Parel one and another in Andheri — into residential ones.

Realty analysts said oversupply and declining demand is making such commercial space development unviable.

“The government’s initiatives towards reducing borrowing costs is reflected in declining interest rates on home loans. This, coupled with realty prices getting more realistic are helping maintain the excitement in the residential space,” said Sanjay Dutt, CEO, business, Jones Lang LaSalle Meghraj, the real estate consultancy.

Revival in demand for commercial space, meanwhile, will largely depend on the global economic scenario.

“The only movement that I see is offices being relocated to more reasonably priced commercial developments thereby cutting costs,” said Dutt.

Investment bank Goldman Sachs in a recent report, said primary residential volume trends (year to date till May this year) indicated recovery in markets such as Mumbai and Noida.

“Inventory days in the two cities have fallen back to early 2008 levels or better. However, the overhang in Bangalore, Chennai, Gurgaon and Hyderabad remains significant with at least 15 months of inventory in the pipeline,” Goldman analysts Vishnu Gopal and Aditya Soman wrote.

With inputs from Pooja Sarkar in Kolkata

Source : http://www.dnaindia.com/money/report_realtors-turn-malls-and-office-plans-into-homes_1282909

Want to buy a home? Shift to a less costly city

A  study of households with an annual income of Rs 3 lakh (Rs 300,000) to Rs 10 lakh (Rs 1 million) in seven cities shows substantial variations in the type of houses they can afford to buy.

The study on affordable housing, done by property consultants Knight Frank, says the Rs 8-10 lakh (Rs 800,000-1 million) income category in Chennai can afford houses up to Rs 45 lakh (Rs 4.5 million), while the same group can afford houses up to only Rs 38 lakh (Rs 3.8 million) in Mumbai [ Images ] and Rs 37 lakh (Rs 3.7 million) in Bangalore. The same category in Hyderabad, Kolkata [ Images ] and Pune could afford between Rs 40 lakh (Rs 4 million) and 43 lakh (Rs 4.3 million).

In terms of apartment sizes, the Chennai households can afford up to 1,200 square feet, while those of Pune and Mumbai can only afford 800 sq ft and 950 sq ft, respectively.

In terms of affordable rates per sq ft, Pune can afford up to Rs 5,900 a sq ft and Bangalore only Rs 3,600 a sq ft, the study said.

“Mumbai’s high cost of living, coupled with the generally higher maintenance lifestyle, has adversely affected the affordability of households in the city. For instance, middle class households in Kolkata, Chennai and Hyderabad can afford houses valued at Rs 14-45 lakh (Rs 1.4-4.5 million), whereas households of similar stature in Mumbai can afford houses valued at Rs 12-38 lakh (Rs 1.2-3.8 million),” the study said.

“Affordable rates are higher if sizes are smaller. If buyers can compromise on size, they can afford higher priced apartments,” said Samantak Das, national head, research, Knight Frank.

The study assumes significance, as top real estate developers such as DLF, Unitech and Parsvnath have shifted their focus towards the Rs 20-60 lakh (Rs 2-6 million) income category in many cities, with the premium housing segment seeing sharp decline in sales after the economic slowdown and stock market decline impacted home buyers.

The report states that not all of the so-called affordable housing projects in the country are really affordable; they are way beyond the means and preferences of buyers.

“Although preferred unit sizes are less than 1,200 sq ft, many projects are offering greater sizes that are unaffordable. Based on consumer preferences, house property beyond Rs 5,900 a sq ft would be unaffordable across all cities covered,” it said.

The consultancy thinks it is premature for developer to raise prices now.

“It is too short a period for developers to increase prices. It is just euphoria after elections and a stable government and not supported by fundamentals,” said Gulam M Zia, national director, research and advisory services, Knight Frank.

Source : http://business.rediff.com/report/2009/aug/13/shift-to-a-less-costly-city-to-buy-a-home.htm

Unitech to pump Rs 600 cr into affordable housing

New Delhi: Unitech Ltd, India’s second largest real estate developer, is looking at investing Rs 600 crore to develop and launch affordable houses under its Uni Homes brands across seven cities in the country.

The developer would launch these homes in the price range of Rs 10-30 lakh in Noida, Greater Noida, Chennai, Kolkata, Rewari, Bhopal and Mohali.

The total area in the phase one of the launch would be about 4.5 million square feet with about 5,000 flats. The company would fund the development with a combination of debt and internal accruals.

The developer had earlier said it would launch 30 million sq ft of development of commercial and residential properties in the current fiscal, which included 20 million sq ft of residential projects. By August it has been able to launch 17 million sq ft of projects, mostly in the affordable housing segment and has already sold 6,000 flats.

However, analysts covering the company believe that Unitech’s margins would go further go down with its concentration in the lower-margin affordable housing segment.
“We expect the profit margin to reduce going forward as affordable and mid housing are low-margin segments compared to commercial, retail and luxury housing segments,” K R Choksey analysts said in a note to clients.

The company plans to launch 40 projects, and would develop 35 million sq ft properties in the next two years. The company may require Rs 6,000 crore over the next two years for funding the expansion, and would use the cash generated from two qualified institutional placements (QIP) of shares, asset sale and internal accruals.

The developer has already raised about Rs 4,410 crore through QIPs. It is also looking to raise Rs 500 crore by selling about 20-25 hotel land parcels as its hospitality expansion plans have been deferred due to low demand.

The realtor currently has debt of around Rs 7,000 crore, which is expected to go down to Rs 4,000 crore by the fiscal end.

Source : http://www.dnaindia.com/money/report_unitech-to-pump-rs-600-cr-into-affordable-housing_1281927

Big-ticket land buys on realty radar again

With a boost in sales and better cash flows from the June quarter, the appetite for land has improved

Bangalore/New Delhi: With the first signs surfacing of a revival in the realty sector, several developers have resumed buying large plots of land for building luxury and budget housing projects as well as to enter new markets.

India’s largest residential developer, Hiranandani Group, Lodha Group, Indiabulls Real Estate Ltd, Provident Housing Ltd and Anant Raj Industries Ltd have purchased tracts of land in cities such as Mumbai, Kochi and Pune at lower valuations following a boost in sales and improved cash flows from the June quarter.

The Mumbai-based Lodha Group, which last year had kept away from land deals worth more than Rs50 crore, came out of its sabbatical in July when it bid Rs710 crore for the 10.4-acre defunct Finlay property in Mumbai, auctioned by National Textile Corp. Ltd (NTC).

NTC now plans to put the Kohinoor Mill No.1 property in central Mumbai on the block for Rs1,100 crore. The Lodha Group may bid for this property as well, said a top executive.

“We bid for Finlay because we are planning new supply, more projects,” said Abhisheck Lodha, director, Lodha Group. “We may buy more land if the deal is good. We would build high-end homes in one part of it.”

In 2005, when land prices were beginning to peak, Lodha had bought Apollo mill, another NTC property in Mumbai, for Rs180 crore.

“The appetite for land transactions has improved. And if that continues, we can say the market has revived,” said Hari Pandey, deputy general manager (finance), Housing Development and Infrastructure Ltd, or HDIL.

The economic downturn had pushed developers such as DLF Ltd, Unitech Ltd—India’s top two realty firms—and Sobha Developers Ltd to sell land and non-core assets such as hotels.

This lull in buying land, which began sometime in mid-2008, followed a three-year realty boom that saw a spate of expensive transactions and continuous land assembling by developers.

Realty firms say they are now buying land for specific purposes. Land prices have not climbed down on par with property prices, but have dipped by 10-20% in certain markets such as Mumbai, Pune, Bangalore and Chennai.

Hiranandani Upscale, founded by Surendra Hiranandani, managing director of Hiranandani Group, intends to buy land in smaller cities such as Pune and Kochi to build townships.

“We are in talks with four private equity players—three foreign and one domestic—to raise about Rs800 crore to develop these projects,” said Hiranandani.

The company also plans to launch three projects in Bangalore, Chennai and Hyderabad, where it already owns land.

Indiabulls Real Estate, the country’s third largest developer by market value, is set to buy land in the metros and large cities after selling small parcels in the past eight months, primarily non-core assets such as 2-3% of a 150-acre plot in Sonepat, Haryana.

“We want to buy land in the heart of the city and are looking at Mumbai, Delhi and Chennai. We are also interested in buying through the government auction route and are looking for attractive deals,” said Gagan Banga, chief executive, Indiabulls Financial Services Ltd, and group spokesman.

Developers are in a relatively better position to buy land after restructuring debt and offloading part of their inventory, said Ashutosh Limaye, associate director (strategic consulting), Jones Lang LaSalle Meghraj, a property advisory.

“We will now see a lot of developers roping in a partner to buy land. Developers will also tie up with private equity funds at the land buying stage, which was not very common earlier,” Limaye said.

As it became more difficult to buy land due to a severe cash crunch, many developers resorted to joint venture projects with landowners to cut costs. But many projects didn’t take off because the landowners demanded more money, he added.

Another set of developers is scouting for cheaper land parcels far from city centres for low-cost and mid-segment housing projects.

After launching two low-cost residential projects in distant suburbs in Chennai and Bangalore, Provident Housing, a subsidiary of Bangalore-based Puravankara Projects Ltd, is negotiating with landowners in Kochi and Coimbatore. Typically, Provident’s apartments are priced at Rs15-20 lakh, excluding taxes.

“We have restrictions in cost because we need to build the homes in a lower price bracket,” said Jayakar Jerome, managing director of Provident Housing, at the launch of the Bangalore project this week.

For other builders, the worst is clearly behind them. Anant Raj Industries, which has a land bank of 990 acres, has set aside Rs400 crore for buying land in prime locations as prices have fallen, Anant Raj is looking at launching houses near New Delhi in the Rs15-18 lakh range, said Amit Sareen, executive director.

http://www.livemint.com/2009/08/02214942/Bigticket-land-buys-on-realty.html?h=B

Ambuja Realty to execute Rs 4,000 cr housing projects

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

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

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

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

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

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

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

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

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

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

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

Go and grab your dream home

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

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

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

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

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

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

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

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

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

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

Govt in India wants to attract more foreign real estate investors

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

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

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

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

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

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

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

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

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

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

Premium residential properties again on buyers’ list

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Oakwood Worldwide plans 15 operational properties in India by 2012

Planning a major foray into service apartments segment, international player Oakwood Worldwide would launch 11 five-star category temporary housing facilities across India over next three years.While the brand is already operational in Pune, Mumbai and Bangalore with four properties, it will have operations in prominent Indian cities such as Chennai, New Delhi, Hyderabad, Thiruananthapuram and Ahmedabad by 2012.

Oakwood Worldwide, which runs resorts and service apartments in United Kingdom, USA, Singapore and a number of Asian countries, plans to run properties in three different categories in India. The Oakwood Premier category provides for a long-term stay in five-star deluxe category rooms while the Oakwood Residence has five-star standard residential flats. The Oakwood Apartments category is meant for tier-two and tie-three cities and has compact service apartments.

The brand has so far launched four properties in the country while 11 new locations are under construction. Speaking to Business Standard , Oakwood’s country general manager Vikas Kapai said, “We have signed 11 new deals with different real estate developers. We expect to have two properties operational in each of New Delhi, Chennai and Hyderabad by 2011.”

Oakwood recently launched its largest property in India, the Oakwood Premier in Pune with 202 five-star deluxe studios and suits. It also runs an 84-unit Oakwood Residence property in Pune. The brand already has a property each operational in Mumbai and Bangalore. It plans to have have two new properties in Mumbai while a property each in Ahmedabad and Thiruananthapuram.

“We have seen more than 73 per cent occupancy during the financial year 2008-09 at our three properties. This year as well, we have seen more than 65 per cent occupancy, which is excellent considering the present economic situation,” Kapai added. the firm plans to concentrate on Pune, New Delhi, Mumbai and Bangalore, the cities that attract the maximum number of foreign working professionals in India. Kapai however did not disclose the financial details of the company in India.

Source : http://www.business-standard.com/india/news/oakwood-worldwide-plans-15-operational-properties-in-india-by-2012/67360/on

Ireo to invest $500m in Indian realty

The global investment fund Ireo announced its plans to invest $500 million in real estate projects across the country. The project mix will include both residential and commercial developments. The $500 million fo-rms part of the $2 billion tranche of fund available with the Ireo.
“We already have invested close to $1.5 billion towards development of 13 real estate projects in the country,” said Anurag Bhargava, chairman Ireo. He added that the company is now exploring options in tier I and II cities. “Residential projects will remain our priority though we are open to developing commercial projects like the SEZs,” Bhargawa explained.
The company has already completed three million square feet of residential development and has further plans to develop around eight million square feet residential and commercial pro-jects over the next one year.
At present, the company owns 3000-acre at Pune, Gurgaon, Mohali, Ludhinana, Ghaziabad, Noida, Chennai, Coimbatore, Goa and Jalandhar wherein it is developing thirteen realty projects that include development of IT-SEZ at Pune. The construction work of the IT-SEZ at Pune is expected to be complete by next year.
“Though the SEZs do not find favour with other developers in the changed economic environment, yet we feel that with right location and scale they still can be good business propositions,” quipped Bhargawa.
The company is also exploring options in the education and hospitality sectors. “The projects in these categories will largely be in and around the areas where we already are executing projects, as we have a fair amount of understanding of the market, he said.
The investor base of Ireo consists of several financial institutions such as JP Morgan Chase, TPG-Axon, Citadel Investment Group and sovereign wealth funds.

Source : http://www.mydigitalfc.com/companies/ireo-invest-500m-indian-realty-875

Govt may relax FDI norms for realty

The government department responsible for the promotion of industry is proposing easier rules to allow overseas investors to be part of smaller real  estate projects and lower capitalisation norms for those which involve facilities related to hospitality or tourism.

The department of industrial policy & promotion (DIPP), which handles the FDI policy, in a note drafted for the Cabinet Committee on Economic Affairs (CCEA), has said that FDI should be allowed to flow into realty projects even if the area covered is only 10 acres.

As of now, FDI is allowed in realty projects only if the minimum area covered is 25 acres (or 10 hectares).
The move will help realty projects in metros like Mumbai, Delhi, Bangalore, Chennai and Hyderabad to attract FDI.
Realty players feel that it is not possible to find 25 acres of land in these cities to make their projects comply with Press Note 2 of 2005, which defines guidelines for permitting FDI in this sector.

The industry is keen on business in the metros, as it attracts high-profile customers, but wants FDI to be allowed since the cost of land in these cities is high, making them expensive.

The DIPP has also proposed that the minimum capitalisation norms specified in Press Note 2 can be waived in the case of projects, which involve hospitality and tourism facilities, such as hotels, restaurants or entertainment facilities meant for tourists.

Press Note 5 specifies that minimum capitalisation should be $5 million for permitting FDI in realty projects, which involve an Indian partner. In case the project is implemented by a fully-owned subsidiary of an overseas firm, the minimum capitalisation specified is $10 million.

The waiver would be available in case 50% of the built-up area in a project is devoted to hotel and tourism businesses, such as food courts, resorts, restaurants.

If 20% of the total built-up area is used for hotel rooms, the waiver will be available. Veterans in the real estate business, who do not want to be identified, said the liberalisation moves were welcome changes that they have been waiting for.

These steps, when implemented, will provide relief to high-value projects in metros and projects being developed for the tourism sector.

The move comes as a relief at a time when realty players are struggling to managed debt and lull in business, they added.

However, the realty industry is upset that its demand for waiving off the three-year lock-in for FDI in real estate has not been accepted. Many fund houses keep off realty projects due to the three-year lock-in period, industry veterans feel.

Source : http://economictimes.indiatimes.com/Markets/Real-Estate/Govt-may-relax-FDI-norms-for-realty/articleshow/4764581.cms

Leela Palaces to invest Rs 2,200 cr by next year

NEW DELHI: Hospitality player The Leela Palaces, Hotels and Resorts is planning to invest Rs 2,200 crore by the next year as part of the group’s  plan to add seven new properties across the country by 2012-13.

The company will spend the amount for its upcoming hotels in Delhi and Chennai which will be ready for inauguration in 2009.

“We plan seven new properties across India by 2012-13, and as the first phase of it our group would be investing Rs 2,200 crore to complete two new hotels in Delhi and Chennai by the end of 2009,” Hotel Leela Venture Ltd Vice Chairman and MD Vivek Nair told reporters here.

He said that besides the properties in Delhi and Chennai, the chain is also going ahead with plans to set up hotels one hotel each in Udaipur, Pune and Hyderabad and resorts in Kovalam and Kolkata by 2012-13.

“We have managed to secure funds for the Delhi and Chennai properties with a mix of buy-back of 25 per cent of our Foreign Currency Convertible Bonds worth USD 100 million and Euro 60 million,” Nair said, adding that the buy-back was decided during the company’s board meeting on June 27.

Leela group’s board had also passed the enabling resolution for setting up properties in Agra, Hyderabad and Pune during the same meeting, though actual number of equity has yet to be decided upon, he added.

Source : http://economictimes.indiatimes.com/News/News-By-Industry/Services/Hotels-Restaurants/Leela-Palaces-to-invest-Rs-2200-cr-by-next-year/articleshow/4766743.cms

Real estate survey shows silver lining for market

CHANDIGARH: Presently facing a downward trend, the real estate market is likely to recover by 2010 with increase in demand for residential segment driven by improving affordability, steady economic growth and greater liquidity. These are the findings of a survey carried out in 10 cities, including Chandigarh, by the Crisil Real Estate Research Group.

The report says, “Demand in the residential market is expected to turn positive in 2010 due to these factors, however, a decline in the currently over-priced capital values of all the three real estate segments – residential, commercial and retail would persist through 2009.” “The commercial and retail markets would continue to witness erosion in lease rentals through the next two years,” it states.

The report provided information and analysis of more than 400 acres of land across 88 micre markets in 10 cities – Ahmedabad, Bengaluru, Chandigarh, Chennai, Hyderabad, Kochi, Kolkata, Mumbai and Pune.

The report indicated that capital values for residential sector and lease rentals for commercial and retail properties have substantially corrected till March this year, due to slowdown in both the domestic and global economies. Cities such as Kochi, Chandigarh and Pune, which have greater investor presence as against end-users, witnessed a greater fall in capital values compared to other cities, the report revealed.

However, Crisil believes that demand for houses would improve in 2010, backed by lower home loan interest rates as well as better job security owing to higher growth in the economy.

Expressing confidence in the report, a leading real estate agent of the city, Sunil Kumar, said, “Apart from the low interest rates on housing, another important factor for the rising demand in 2010 would be the upcoming international airport in Chandigarh. The direct Dubai flight from Chandigarh would also add to arrival of many big business houses here.”

Kumar insisted that these factors would compell more and more tricity tenants to go for owning a property of their budget and choice. “The demand for residential properties would be more in the neighbouring areas like Mohali, Panchkula, Zirakpur, villages across the city and even far-off areas like Derabassi, Kharar and Kurali,” said Kumar.

Source : http://timesofindia.indiatimes.com/NEWS-City-Chandigarh-Real-estate-survey-shows-silver-lining-for-market/articleshow/4770363.cms

Budget hotels, serviced apts sprouting fast

Bangalore: Mid-market hotel brands and serviced apartment chains are fighting tooth and nail for the keys to growth, and perhaps, the same customers.

Both segments are on an expansion spree to cash in on the slowdown that has thrown up good demand for cheaper hotel rooms.

The high average room rates (ARR), despite the current slump, have reduced hotel occupancies by 57% in cities like Bangalore, Hyderabad and Pune for star hotels.

But budget hotel chains and serviced apartments have benefited from this. Not surprisingly many of them have charted out aggressive plans including expanding in the hinterland.

For instance, Roots Corporation Ltd, a wholly owned subsidiary of the Indian Hotels Company, plans to launch 30 more properties by 2010 under the Ginger brand. The firm will add hotels in Guwahati, Durg, Surat, Chennai, Jamshedpur and Pune among others.

“We have identified the locations after detailed studies across various parameters such as market potential, clusters of clientele and peak periods,” Prabhat Pani, chief executive officer & director, Roots Corporation Ltd, said.

Likewise, Fortune Hotels Pvt Ltd, a wholly owned subsidiary of ITC Ltd, is planning 26 hotels across India by mid-2011. “There had been minor hiccups but there is still a huge opportunity to add new property in the mid segment. All the properties are in different stages of development and Fortune is the fastest growing brand for ITC Hotels,” ITC Ltd – Hotels Division senior executive vice president, Pawan Verma, said.

The firm has signed management contracts for 55 hotels with a total room inventory of 4,400 rooms. It is also in talks with Bangalore based JP Group to operate and manage its luxury hotel in Mysore. Fortune has 29 hotels in operation comprising an inventory of 2,400 rooms.

Mumbai based Sarovar Hotels Pvt Ltd, one of the largest budget and mid-market chains, is looking at garnering higher business by adding 800 more rooms in eight hotels to its existing 4,500 in 35 hotels by the end of this year.

Sarovar will invest about Rs 250 crore, excluding land cost, to develop hotels in Bangalore, Jaipur, Gurgaon, and Chandigarh among others, said Ajay Bakaya, executive director, Sarovar Hotels.

With competition increasing in the affordable stay segment, average room rates will stabilise by 2010, said Tarandeep Singh, principal consultant (hospitality), Technopak Advisors.

“There will be excess inventory and hotels will be cautious while revising rates,” he said, adding the industry will pick up by September 2010.

Serviced apartment players are letting go of their cautiousness and are re-looking at the market to close deals on affordable rates. Many of the operators are in talks with developers to enter into management contracts and are bargaining hard to add rooms.

Priyadarshi Samal, director, operation, Chalet Hospitality, a leading serviced apartment player in Bangalore said he believed this is the right time to get value for money property. “The value of good property has come down and we plan to add another 100 rooms in next three to six months.”

Keshav Baljee, co-promoter Royal Orchid Hotel, said, “We are not much affected by the downturn and are currently operating on healthy occupancy.” The firm is adding extended holiday concept in Hyderabad, and is in talks with several developers to build and operate properties in Mumbai, Chennai and National Capital Region. It is also eyeing distressed property which can be converted into serviced apartments.

Source : http://www.dnaindia.com/money/report_budget-hotels-serviced-apts-sprouting-fast_1272389

Housing sector sees a silver lining, sales up 25%

A cross section of banks, property developers and real estate consultancies that SundayET spoke to confirmed that the rise in activity levels since the start of the year had picked up momentum in the last three months, with some in the sector saying that sales were up by as much as 25-30% since April, after witnessing a growth of 10-15%  during the first quarter of 2009.

India’s property market started showing signs of serious trouble nearly a year ago with first the American sub-prime crisis and later the Lehman bankruptcy playing havoc. The overpriced projects by builders found few takers which was worsened with the IT industry facing a major setback. Builders were stuck with high-end apartments which had no takers. There was a severe drop in sales with people wanting to conserve resources. As a result, property prices too fell 30-45% since peak of 2007, according to industry estimates. But today the scenario is different, with builders getting a mix of mid end and affordable housing into their portfolio. Raminder Grover, CEO – Homebay Residential, Jones Lang LaSalle Meghraj, says the revival in sales has been, conservatively speaking, to the tune of around 25% across the mid-to-high income segments, according to his company’s sales records.

Rohtas Goel, CMD of Delhi-based Omaxe too says there has been a 30% increase in sales thanks to factors such as a reversal in general economic sentiment after the elections and more options available in affordable housing. Statistics too would appear to bear this out. India’s largest real estate developer DLF says it has sold almost 1,500 flats in various cities since April, notably some 400 flats in its mainstay market Gurgaon, 700 in Bangalore, 100 plots in Indore, 200 flats in Hyderabad and 50 in Cochin. Rival Unitech has managed to sell more than 4,000 units in the last two and a half months in the National Capital Region, Chennai and Mumbai. Omaxe has also sold almost 500 apartments in its Omaxe Eternity project in Vrindavan. Niranjan Hiranandani, MD of Hiranandani Developers says there had been a sale of 7,000 apartments across the industry, mainly in Mumbai suburbs, over the last 60 days..http://www.maaproperties.com/Pages/ModuleContent.aspx?Module=Articles

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http://www.pr-inside.com/housing-sector-sees-a-silver-lining-r1360901.htm

Office, retail space is hot property

Lower real estate prices have triggered some big-ticket sales in recent months in the commercial segment

Bangalore: Some six months after they fled the real estate sector, investors are gradually making their way back. This time around, high networth individuals (HNIs) and domestic funds are putting money mainly into office and retail spaces.
As the economic meltdown unfolded in late 2008, commercial realty became the worst hit segment in the sector and lease rental and property rates fell by 30-40% in the metros and the bigger cities. The lower prices, in turn, have triggered some big ticket sales in recent months.
Big catch: The DLF tower in Gurgaon. The cash-strapped realty firm sold its 66% stake in a private mill property in central Mumbai to an undisclosed Chennai-based investor for Rs310 crore in May. Ramesh Pathania / MintIn May, Unitech Ltd, India’s second biggest listed developer, sold a 200,000 sq. ft office property in Saket, New Delhi, to an investor for Rs450 crore, nearly Rs200 crore cheaper than in 2007-08. Unitech didn’t disclose the identity of the buyer.
The same month, a cash-strapped DLF Ltd, the country’s top realty firm, sold its 66% stake in a private mill property in central Mumbai to an undisclosed Chennai-based investor for Rs310 crore. DLF had bought the property for Rs350 crore in 2007, at the peak of a realty boom in India.
In April, three investors from Kolkata bought 50,000 sq. ft of an office property near Bangalore’s Outer Ring Road for Rs35 crore, about 20% lower than the asking price till mid-2008, said a property consultant who brokered the deal. He didn’t want to name anyone involved in the deal. The developer had earlier leased the property to companies.
“Many HNIs and funds are now returning, looking at only commercial properties…to take advantage of the falling rates. The returns for such properties are as high as 12-13% compared to 3-4% in residential projects,” said Farook Mahmood, chairman of Bangalore-based advisory Silverline Group Inc.
For example, a Hyderabad investor with Rs300 crore is scouting for commercial properties in Bangalore, said Mahmood, without elaborating.
There is huge demand from HNIs for buying office properties, said a Unitech spokesman. “We are in contact with a group of HNIs with a portfolio of Rs1,000 crore each, who are looking at lucrative deals,” he said.
Unitech, also cash-starved, has been selling office properties and hotels the past two quarters in and around New Delhi and Mumbai. Domestic property-focused funds, which earlier targeted residential projects, too, are looking at commercial properties now. Red Fort Capital Advisors Pvt. Ltd, for example, has invested Rs400 crore in three commercial properties in New Delhi and Mumbai and is looking for more.
“In the current scenario, most developers are looking to sell their commercial properties. There are many such distressed assets and the pressure of liquidity is still there on them. For us, it’s a good deal because property rates have dipped,” said Subhash Bedi, director of Red Fort Capital.
Research and rating firm Crisil Ltd, the Indian arm of Standard and Poor’s, said in a June report that while the overhang of commercial property was enormous, demand was still slow.
In the first three months of 2009, there was a fresh supply of 11.5 million sq. ft of space, outstripping absorption of 5.78 million sq. ft, according to property advisory Cushman and Wakefield’s report in April, based on a survey of eight major cities.
The combination of over supply, poor demand and a liquidity crunch pushed many developers to focus on selling commercial properties.
Developers such as DLF and Unitech, which adopted the build-and-lease model the past two-three years when rental costs had skyrocketed and technology firms were expanding, now prefer to sell their stock.
“We are only keen on selling office space now. The focus will also be on developing non-IT space like pharma and telecom, where demand still exists,” Unitech’s spokesman said. Unitech has about 4 million sq. ft of commercial space under development. Its spokesman didn’t disclose how much of this would be up for sale.
Investors are also keen on buying pre-leased properties from developers who are in a hurry to sell, said Kaustuv Roy, head of tenant strategies and solutions, Cushman and Wakefield. “It’s much easier to sell pre-leased properties. There are more takers for them and they fetch better rates.”
“Going forward, most developers will adopt a mixed model where 80% would be sold and 20% will be leased out,” said a senior official of Maker group, who can’t be named as he is not authorized to speak to the media.
In April, the group sold 4,300 sq. ft of space at Maker Chamber VI, an office building in Nariman Point, Mumbai, to a pharma company for Rs12.5 crore at Rs30,000 per sq. ft. The price was Rs40,000-45,000 per sq.ft. in 2008, said S.G. Maheshwari, a property consultant in Mumbai.
“The thing to look out for in the coming quarters will be if there is a revival of interest among corporates for commercial space,” said Anirudh Wahal, national director, business development, Jones Lang LaSalle Meghraj, a property consultancy.

Source : http://www.livemint.com/2009/07/01234720/Office-retail-space-is-hot-pr.html?h=B

25% Upswing in India’s Housing Market

Activity levels are gaining traction in the near moribund housing market as a flurry of interest rate cuts, price drops and the building industry’s focus on affordable housing start to lure buyers back into the market. A cross section of banks, property developers and real estate consultancies that SundayET spoke to confirmed that the rise in activity levels since the start of the year had picked up momentum in the last three months, with some in the sector saying that sales were up by as much as 25-30% since April, after witnessing a growth of 10-15% during the first quarter of 2009. India’s property market started showing signs of serious trouble nearly a year ago with first the American sub-prime crisis and later the Lehman bankruptcy playing havoc. The overpriced projects by builders found few takers which was worsened with the IT industry facing a major setback.

Builders were stuck with high-end apartments which had no takers. There was a severe drop in sales with people wanting to conserve resources. As a result, property prices too fell 30-45% since peak of 2007, according to industry estimates. But today the scenario is different, with builders getting a mix of mid end and affordable housing into their portfolio. Raminder Grover, CEO—Homebay Residential, Jones Lang LaSalle Meghraj, says the revival in sales has been, conservatively speaking, to the tune of around 25% across the mid-to-high income segments, according to his company’s sales records. Rohtas Goel, CMD of Delhi-based Omaxe too says there has been a 30% increase in sales thanks to factors such as a reversal in general economic sentiment after the elections and more options available in affordable housing.

Statistics too would appear to bear this out. India’s largest real estate developer DLF says it has sold almost 1,500 flats in various cities since April, notably some 400 flats in its mainstay market Gurgaon, 700 in Bangalore, 100 plots in Indore, 200 flats in Hyderabad and 50 in Cochin. Rival Unitech has managed to sell more than 4,000 units in the last two and a half months in the National Capital Region, Chennai and Mumbai. Omaxe has also sold almost 500 apartments in its Omaxe Eternity project in Vrindavan. Niranjan Hiranandani, MD of Hiranandani Developers says there had been a sale of 7,000 apartments across the industry, mainly in Mumbai suburbs, over the last 60 days. Despite indications of improving demand, builders don’t seem to be in a hurry to raise prices. They are conscious that demand was up due to price cuts and the affordable housing strategy. Builders are loathe to do anything that could incipient recovery.

“We will not be looking at a price increase,” says DLF’s group executive director Rajeev Talwar. The company says it has cut prices by up to 30% from peak levels of 2007. Others point out that the demand is coming from the low-end housing segment comprising houses prices under Rs 25 lakh. “Buyers have come out of the waiting mode…By December, the situation is expected to become much better,” said Mr. Goel of Omaxe. Mr. Hiranandani of Hiranandani Developers also agreed that affordable housing was selling the most right now, saying that while the overall market had improved, this particular segment was doing really well as buyers realised that the market has bottomed out. Bank officials SundayET spoke to also confirmed the trend of rising demand, and noted an increasing demand for home loans.

“Largely the demand is coming from the sub Rs 30-40 lakh category. Resale market is also showing high growth. However, there is lesser demand for new projects as well as in yet to be completed ones,” said Kamlesh Rao, senior vice president at Kotak Mahindra Bank. “While during January-March, there was a growth of 10-15%, now it is around 15-20%.” He is not alone. Officials at UCO Bank, Axis Bank and the country’s top mortgage lender HDFC too agree that an improving sentiment had helped drive housing sales. “We are witnessing an increased interest from our clients. The condition has definitely improved over the last 3-4 months,” says Sujan Sinha, senior VP and head of retail assets at Axis Bank. An HDFC spokesperson felt the growth is up month on month mainly due to decline in interest rate and the growth of affordable housing. “We are confident that we will achieve the 20% annual target growth,” he said.

Source : http://feedproxy.google.com/~r/Indian-Realty-News/~3/r71BjpVplMg/25-upswing-in-indias-housing-market.html

Luxe India to build portfolio of 12 properties in two years

Luxe India, a JV between US-based Luxe Worldwide Hotels and Indian hospitality company Tian Serrai Group, plans to develop its hospitality portfolio in the four-star boutique hotel segment. Under the arrangement, the Tian Serrai Group will develop, manage and market hotels under the Luxe brand in India. The company aims to develop a portfolio of 12 properties in the next two years. This also marks Luxe Hotel group’s foray into the Indian market.

Speaking with Hospitality Biz about the company’s India plans, Kishore Luthria, Director, Luxe India states, “We aim to design unique business properties for the business traveller; also, we want to develop the boutique hotel concept in this country. There are several five-star developments or low key properties coming up. However, there are few boutique properties under development. Our products are different in their look and offering.” The company has signed up two properties, which are presently under construction in India; an 80 room property in Pune and a 120 room hotel at Chaul Village in Raigad District. The properties are expected to start operations by end 2010. The company is also in negotiations with developers in Delhi, Mumbai, Bengaluru and Chennai. It is considering resort locations, like Kochi for development, as well. The average room inventory size Luxe India aims to develop will be under 150 rooms per property.

However, investments made into hospitality development do not form part of the joint venture. Currently, only Tian Serrai Group will focus on investments. It has earmarked about Rs 100 Crore as investment in the Indian hospitality sector, with about Rs five to 10 Crore per project. Luxe Hotels may consider investment into the Indian hospitality sector at a later stage. Luxe India will adopt the joint venture route providing the partners with capital and expertise required to manage the properties. The hotels that are taken over by the group will be branded under the Luxe Hotels brand. This will provide the property with access to the Luxe hotels’ central reservation system and marketing and promotional initiatives. The company is also open to co-branding the properties in India.

Source : http://www.hospitalitybizindia.com/detailNews.aspx?aid=5385&sid=1

19 Indian realty firms showcasing projects in London

London, June 28: Nineteen Indian realty developers are showcasing their housing projects to NRIs here at a two-day ‘India Homes Fair’, which began on Sunday.

The realty firms participating in the event include Ansal Properties and DLF Home Developers. The 19 developers showcasing their projects are from the Indian cities like Bangalore, Chandigarh, Chennai, Hyderabad, Jaipur, Mumbai and New Delhi.

“Almost all major developers from India are participating in the fair attracting good response from the NRI investors,” Renu Sud Karnad, joint Managing Director of India’s leading housing finance firm HDFC, the organiser of the event, said.

The price range of properties being showcased at the fair vary from Rs 21 lakh to a couple of crores, Karnad said.

“Through this event, we are bringing NRI home-seekers and leading developers from major cities across India together under one roof.

“We hope to provide a platform where both of them can interact freely so that the developers are exposed to the NRIs, their needs and preference,” she said.

M Subhashini, Minister, Press and Information in the High Commission of India to the UK, inaugurated the fair.

Source : http://www.zeenews.com/news542821.html

‘Property brokers expect prices to increase’

Residential property builders have something to cheer if the result of a poll of property brokers conducted by Edelweiss Capital is any indication. The pan-India poll shows that property brokers expect prices of residential property, especially i n the Mumbai and NCR region, to increase around the Budget, Edelweiss said in a press release issued here.

“Throughout India, property brokers have turned positive on the Indian residential realty market, in the last three months,” the poll said. There has already been an increase in the number of transactions in the past one month against nil in the preceding five months, it said.

The poll was conducted amongst 100 odd property brokers in the first-half of June in the four cities of Mumbai, NCR, Bengaluru and Chennai and 20 micro-markets. A significant change in sentiment post-elections and preceded by strong stimulus measures have contributed to a strong recovery in volumes and prices, the release said.

According to the poll, nearly 87 per cent of the brokers surveyed endorsed that transactions had indeed increased in the last one month

Source : http://sify.com/finance/fullstory.php?a=jg2q31hcedf&title=’Property_brokers_expect_prices_to_increase’&scategory=real%20estate

Ozonegroup announces Chennai residential project

CHENNAI: Real estate firm Ozonegroup is all set to commence its Rs 2,500 crore residential project in the city on 42 acres of land.

The project, ‘The Metrozone’ at Anna Nagar, would have 1,600 apartments across 29 towers. “This is our flagship project in city and the total project cost is Rs 2,500 crore”, Ozonegroup Managing Director Mr S Vasudevan told reporters here.

He said the project would have three basement levels to park 6,000 cars and a piped gas network. As part of promoting ‘Green’ power, the project would have solar lighting and the rainwater storage systems, he said.

The residential units range between 1,555 square feet for double bedroom apartments (Rs 95 lakh) to 4,818 square feet for penthouses (Rs 1.5 crore), he said.

The first phase of the project is likely to be completed by 2011.

“Construction is expected to begin by June 29 and the entire project should be completed by 2013-2014”, he said.

Mr Vasudevan said the Metrozone would have 15-17 screen multiplexes and one lakh square feet area had been allotted for food and entertainment.

“We are talking with the multiplexes and will be signing agreements on this very soon”, Ozonegroup Chief Operating Officer Mr K S Sudarshan said.

The group is also constructing two residential projects in Bangalore at a total cost of Rs 400 crore, he said.

“About 1,000 apartments are likely to come up in both these projects and the minimum price of an apartment would range between Rs 26 – Rs 28 lakh”, he said.

The company also planned to set up a leisure project in Goa on 180 acres, he said, but declined to divulge further details. – PTI

Soruce : http://www.thehindubusinessline.com/blnus/02251592.htm

Chennai Plans New IT SEZ

Tamil Nadu government is planning a special IT industry economic zone spanning 1,000 square kilometres, according to T Willington, director of projects, Tamil Nadu Industrial Development Corporation (TIDCO). The project, worth about thousands of crores of rupees, is likely to attract investments of more than Rs one lakh crore and is being termed as ‘IT investment region’. Willington was speaking at a FICCI-MIBC (Malaysian-Indian Business Cooperative) conference on real estate and infrastructure here. He said the petroleum, chemicals and petrochemicals investment region at Cuddalore which had planned investment of Rs 19,000 crore, and the IT investment region near Chennai, were major projects apart from the 69 SEZs being planned in the State.

He told Express that the project report had been sent to the Centre. “We expect the approval by the end of this year, after which we will begin work on phase 1 of the project. The project will be many times larger than the Cuddalore project,” he added. The project, he said, would be executed in two phases wherein the first phase covering not more than 20 per cent of the project area would be completed within five years and the next phase within 15 to 20 years. The identified region spans from the outskirts of Chennai to its North and extends upto Kancheepuram and Chengalpet to its South and will be bordered by the East coast road to its East.

In phase one, development will start in the Kancheepuram and Chengalpet areas, “The idea is to take the pressure off the metro. Since the Northern side with Chennai is developing, we will focus initially on the southern side of the project area,” Willington noted. “Around 250 square km should be sufficient for such a project but we are going in for 1000 square km because we don’t want to congest development within a small area,” he added. This region would be administered by a development authority on the lines of Chennai Metropolitan Development Authority. Two new townships of 2,000 acres and housing capacity of 2.5 lakh people each would be created in phase one. Willington said that once the project was notified, developers would be free to acquire land and start developing land. “There will be no compulsory acquisition by the government except to create social infrastructure such as roads.”

Source : http://www.indianrealtynews.com/real-estate-india/chennai-plans-new-it-sez.html