Weekend home: Choose correct location for sufficient resale value

Are you confused over various options to get away on the weekend? Why not get one of your own instead? Investing in a weekend home can provide you  with a retreat which will be your own always. But what really is the concept of a weekend home? And how popular is it?

Says Raminder Grover, CEO, Homebay Residential, Jones Lang LaSalle Meghraj, “A weekend home would differ from a vacation home by virtue of being close enough to the primary place of residence to reach within a few hours, yet far enough and in more convivial surroundings to provide a break from the oppression of city life. Buyers from the more affluent class are the ones currently looking at weekend home options.

Agrees Rohit Gera, executive director of Pune-based Gera Properties who feels that people buy these either as an investment or to upgrade to a larger home, with better facilities, amenities or a better location. “Most weekend homes are in the same city, but probably in a new upcoming suburb which offer them better infrastructure and amenities. If they buy in some other city, it will be due to the exposure they have had to that place before. They would have either studied, lived or worked there.”

Close to Delhi, Karnal, Jaipur and Manesar are good options to look for a weekend getaway investment. Whereas in Mumbai, areas such as Panvel, Nerul, Matheran and Lonavala are popular. In Chennai, the best location for a weekend home is the East Coast Road due to its road connectivity to the metro and proximity to Chennai.

Developers are making ample use of the opportunity at hand. Real estate developer and asset management company, Alpha G:Corp, for instance, is currently in the process of handing over to buyers the plotted development of 141 acres in Phase-I of Alpha International City, Karnal.

Just a two-hour drive from Delhi and close enough to Chandigarh, the group found among its buyers an interesting mix of users. The scenic surroundings, the pleasurable drive, the impeccable infrastructure and the availability of water and electricity in abundance made this an attractive choice for prospective buyers.

Says S K Sayal, director & CEO, Alpha G:Corp, “The extensive research done by our team before launching revealed very clearly that there was an ever-increasing aspiration and demand for more wholesome and organised lifestyles among adults as well as children in families of tier II & III towns as well as people from Delhi and Chandigarh. They seized this opportunity in a destination deemed as a premium investment opportunity in real estate.”

Similarly Raheja Developers is coming up with a 160-acre township in Sohna near Gurgaon which has a combination of large size plots and villas. They are also coming up with a group housing project in Dharuhera near Manesar which is being positioned as “a good highway retreat.”

Harinder Dhillon, VP, marketing, Raheja Developers says that the trend of investing in such homes is picking up. “This trend is getting stronger now with the market revival. We expect this upward trend in demand for weekend homes to continue in the days ahead.”

Closer to Mumbai, developers have options coming up in Lonavala, Pune and Goa that can attract the clientele from the western part of the country. Gera Properties’ GreensVille SkyVillas in Kharadi, Pune, and their Astoria project in Panjim ,Goa, have seen a lot of such home buys.

Similarly, Magarpatta City in Pune was launched over a decade ago as a premium lifestyle concept on the periphery of the city — a selling point for buyers from both Pune and Mumbai. Today, the Magar Group has launched Nanded City, an education hub with a good number of first home buyers. However, its idyllic setting also brings in second home buyers.

If you are looking for options around Chennai, weekend homes are very popular on the East Coast Road (ECR), which is one of the most premium residential locations in Chennai starting from Neelangarai up to Mahabalipuram. The areas include Injambakkam, Akkarai, Panayur, Uthandi, Kanathur and Muttukadu, according to Kalpana Murthy, regional manager, residential services at Cushman & Wakefield.

An average minimum sized three-bedroom house, which is closest to the beach and measuring 3,000 sq ft built up on three grounds would cost around Rs 2.5 cr in Neelangarai.

There are, however, some important dos and don’ts while investing in a weekend home. Choice of location, adequate security measures and proper documentation are the most significant measures that need to be kept in mind.

“Invest in a location and project that allow for sufficient resale value should maintenance of the property prove untenable, or if fast liquidity is required. Do a due diligence on the property’s antecedents and ensure that all necessary permissions and clearances are available. Ensuring that the property exists in an area that is not overly secluded will also hold you in good stead,” says Grover of JLLM.

Rohtas Goel, CMD of Omaxe says it is necessary that the buyer do a thorough market survey of the area before finalising the deal which would give them a better idea of the facilities provided by developer and overall state of infrastructure. “A holistic view about the location is paramount before any property purchase decision is taken.”

http://economictimes.indiatimes.com/features/the-sunday-et/property/Weekend-home-Choose-correct-location-for-sufficient-resale-value/articleshow/5256382.cms

DTC Plans To Come Up With Commercial Complexes

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

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

Realty developers avoid tier II, III cities, prefer Delhi

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

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

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

Villas and suites away from home

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

DDA to allot flats in November after clean chit in scam

The Delhi Development Authority (DDA) Thursday said allotment of nearly 5,000 flats under its 2008 housing scheme would start in November as the final report into a multi-million rupee housing scam has given it a clean chit.

The Economic Offences Wing (EOW) of Delhi Police, in its report, cleared that the software used for the draw of lots was not rigged and it also ruled out any connivance of its serving employees.

Over 500,000 people applied for 5,238 flats under the DDA’s housing scheme 2008. But the scheme got mired in controversies amid allegations of fake applications. The scam came to light earlier this year after a man who was allotted a flat in the draw of lots told the police that he had not even applied for it.

The EOW started investigations, which revealed a group of people conspired to buy several flats in the names of those from reserved categories – the Scheduled Castes and the Scheduled Tribes – who were eligible for the flats but could not afford them. The conspirators meant to sell off these flats at huge profit.

The DDA has now received the EOW’s report, which comprises investigations by EOW, software report from the Government Examiner on Questionable Documents (GEQD0), Hyderabad, and a report from Centre for Development of Advanced Computing (C-DAC), Thiruvananthapuram.

‘The report does not indicate any connivance or favouritism by any DDA serving officers or those connected with the draw. The allotment process will now start in November,’ said DDA spokesperson Neemo Dhar.

‘C-DAC, after analysing all the hard disks of computers used in DDA draw, DDA server, software, has not found any evidence of rigging of software,’ said an official DDA statement.

‘The report also states that from an analysis of the source code, the experts could not find any evidence to indicate that the software shows any type of bias towards any specific applicant or applicants,’ the report given to EOW said.

Said Delhi Police spokesperson Rajan Bhagat: ‘The technical report of C-DAC on the software used in the DDA draw was received and the technical experts have opined that they could not find any external tempering in the software. However, apart from the software matter, other aspects of the investigation will continue till the case is finalised.’

‘As per the report of the EOW, there are nine accused persons who had fraudulently got a large number of DDA forms filled in by inducing poor and illiterate persons belonging to the Scheduled Castes and the Scheduled Tribes with a view to corner maximum flats in bargain and caused wrongful gain for themselves. Out of the total 5,238 successful DDA applicants, only 1.37 percent, that is 72 successful candidates, fall in the purview of such investigations and are connected with these persons,’ the DDA statement added.

‘The persons who fall within the purview of the investigation as mentioned above, will not be issued any allotment letter till the investigating agency clears these cases,’ it added.

The EOW has arrested nine people, including Deepak Kumar, who allegedly blew the lid off the scam after he fell out with some fellow real estate agents, retired DDA employee M.L. Gautam, and real estate agents Raju Ram, Laxmi Narayan Meena and Vijay Pal.

source:http://sify.com/news/DDA-to-allot-flats-in-November-after-clean-chit-in-scam-news-jk3w4daafhi.html

DDA May Start The Allotment Process By November-end

If everything goes fine, the Delhi Development Authority (DDA) may begin the process of allotting flats to its allottees of the 2008 housing scheme by November-end. The draw of lots to 5,238 flats was held in December 2008. This year, in January, the Union Urban Development Ministry froze the allotments after allegations of irregularities in the reserved category cropped up. A group of builders had forged documents to get flats under the reserved category. According to sources, Union Urban Development Ministry (UDM), the Centre for Development of Telematics (C-DOT), where the software report of the draw has been sent for investigation, is expected to submit its report by October end. “Once C-DOT submits its report and we get a green signal from the UD Ministry, we will start the allotment process,” said a DDA official who did not want to be quoted.

Source : Hindustan Times

Office rentals in Mumbai, Delhi slip on oversupply

MUMBAI | NEW DELHI: Excess supply has made office rentals in key commercial centres in Mumbai and Delhi come down by half over last year, and realty
analysts fear that with business houses waiting for economic activity to pick up speed and a raft of new commercial facilities nearing completion, the rates could head further southwards.

Residential prices have firmed up after the lows they hit late last year, but the recent uptick in macro economic activity is yet to trickle down to sectors such as retail. Realty consultants said in Mumbai there are vacant commercial properties in Malad, Thane, LBS Marg and Andheri MIDC despite the fall in rentals. Rentals have crashed from Rs 400 per sq ft in December last year to around Rs 250 per sq ft now in Mumbai’s commercial hub, the Bandra Kurla Complex (BKC).

ET has learnt that an FMCG company is asking for rentals at 35% lower rates than what it was a year ago for its 1.5 lakh sq ft office space in south Mumbai. Samsung recently took 90,000 square feet on rent on Gurgaon’s Golf Course Road for Rs 58 per sq feet against the asking price of Rs 80 a sq feet. In another deal, a tenant has leased out 50,000 sq ft at DLF Cybercity in Gurgaon for Rs 45-50 per sq ft while the quoted rent was Rs 60-65 per sq ft. “Since there is a downward pressure on many developers and building owners, one may witness even bigger deals at further lower rates,” said Kaustuv Roy, executive director, Cushman & Wakefield.

In Mumbai, supply of the commercial space has gone up with constructions of new buildings and shifting of offices to the cheaper complexes giving the buyers a chance to bargain. For example, JP Morgan is shifting its office from Mafatlal Centre at Nariman point in South Mumbai to Kalina near BKC. This will free up close to one lakh sq ft of space in Nariman Point, further suppressing rentals.

Vacancy — the difference between demand and supply — at Lower Parel is estimated to be around 22%. The number is as high as 35% in North Mumbai and 25% in BKC. Many developers prefer to hold on to their vacant properties rather than leasing them out on lower rentals just to keep the premium tag of the properties intact, said real estate consultant Anckur Srivasttava.

However, the capital value of commercial properties is not falling despite the fall in rentals. New Delhi, in particular, has seen a strange anomaly between rental and capital values. While rentals are still in the Rs 50-70 per sq ft range, capital values are in the Rs 11,000-13,000 per sq ft range.

Source : http://economictimes.indiatimes.com/markets/real-estate/news-/Office-rentals-in-Mumbai-Delhi-slip-on-oversupply/articleshow/5129336.cms

Parsvnath to focus on existing projects

Cash-starved real estate major Parsvnath Developers Ltd ( PDL) has decided to go slow on its non- housing projects such as development of special economic zones ( SEZs) and focus on the completion of its existing projects.

The New Delhi- based developer through its subsidiary company, Parsvnath SEZ Ltd ( PSL) is to carry out activities to develop and operate SEZs. PSL is to develop 17 special SEZs across 10 states covering an area of over 1,780 hectares ( 4,400 acres) in the next five to seven years. Of these, four SEZs have already been notified.

The company that expects a revenue of over Rs 5,000 crore in the next two and half years is looking to raise about Rs 500- 600 crore this fiscal by selling equity at project level.

PSL had raised Rs 115 crore from private equity ( PE) firm Red Fort Capital by selling 22 per cent stake in the 17- acre premium housing project ‘ Parsvnath La Tropicana’ at Civil Lines in North Delhi.

Speaking on the sidelines of a presentation on public- private partnership in the housing sector by the National Real Estate Development Council ( Naredco), Parsvnath chairman Pradeep Jain said, ” The company also plans to cut down its debt to Rs 800- 900 crore by March next year from the existing Rs 1,420 crore. We have put construction of 42 million sq ft on fast track. In the next 25- 30 months, we are expecting to realise Rs 5,300 crore from the sale of these areas.” Jain added the company is about to finalise two PE deals. He further said out of this 42 million sq ft area, around 97 per cent is earmarked for housing. The company has sold 35 million sq ft and expects to sell the remaining area in six to nine months.

“From this 42 million sq ft of saleable area, we expect a total sales realisation of Rs 8,150 crore. The company has received Rs 2,850 crore from the buyers,” he said.

Jain added, “Our focus is to create a huge base of internal accruals and retire the debt. In the next two years, we may become a debt- free or very low- debt company.” The company currently has a land bank of 3,400 acres with a saleable area of 193 million sq ft.

“Of the total land bank, about 97 per cent is fully paid and we have received all regulatory approvals and licences for about 85 per cent of land,” Jain said.

Source:http://indiatoday.intoday.in/index.php?option=com_content&task=view&issueid=110&id=65750&Itemid=1&sectionid=110

Raheja bags 500 cr Delhi slum project

New Delhi:
Delhi Development Authority (DDA) has awarded Delhi’s first slum redevelopment project, worth Rs 500 crore, to a local builder, Raheja Developers, in a move that may see more such projects in the national capital resulting in better living conditions for urban poor and thousands of crores of businesses for builders.
DDA has awarded 5.22-hectare , or 13-acre , project at Kathputli Colony near Shadipur Depot in west Delhi to Raheja Developers for Rs 6.11 crore, a DDA spokesperson said. Under the scheme, the builder pays only Rs 6.11 crore—the bid amount—for the land, but has to build 2,800 homes, of 30 sq metre size each, for existing slum dwellers of Kathputli Colony named after its majority residents of puppeteers and craftsmen.

In the bargain, the builder gets for commercial exploitation 10% of the total space slated for 2800 homes and also close to a hectare for high-end residential development. Therefore, the cost incurred in building 2800 homes for slum-dwellers will be offset by the sale of commercial space (office, shops) and high-end houses in the project, while land would come dirt cheap at Rs 6 crore.
DLF has recently sold 1,250 apartments in its Capital Greens project, just 3-4 kilometres from Shadipur Depot at a rate of Rs 5,677 a sq ft. Raheja Developers will have to create temporary accommodation for the slum dwellers at a piece of land close to the project site that will be given by the DDA in a month or two.
The builder will be expected to build homes for slum-dwellers within two years of the allotment of the land for temporary accommodation. Usually, slum redevelopment projects offer a very high margin of 70-75 % to the developers, mainly because land comes cheap even as projects are fraught with political risks. In Mumbai, developers have to get the consent of 70% of the slum-dwellers and many a time face opposition from political interests as well as voluntary organisations.

In Delhi’s Kathputli Colony project, the government has already got slum-dwellers on board. And Navin Raheja, CMD of Raheja Developers, said the project is a ‘loss-making proposition’ , but he has taken this up because he is engaged in a social ‘mission’ to help urban poor get homes. He estimates this project to be worth Rs 500 crore.

DDA had invited technical bids for the project over a year ago. Eight developers , including Unitech, HDIL and Raheja, met the technical qualification criteria, but only one of them submitted financial bid early this year amid cash crunch faced by most realty firms.

Unitech, country’s second largest realty firm, declined to comment on why it didn’t submit a bid.

Demand for retail space on the rise

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

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

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

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

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

Stabilisation period

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

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

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

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

Aggressive expansion

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

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

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

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

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

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

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

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

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

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

NCR Developers Expecting High Sales during Navratri

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

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

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

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

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

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

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

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

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

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

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

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

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

Real estate firms build hopes on festival sales

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

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

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

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

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

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

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

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

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

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

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

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

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

Oh max! Omaxe goes max and launches new projects

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

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

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

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

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

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

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

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

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

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

Hence the recession could not take these guys out.

When the going gets tough, the tough get going.

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

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

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

Excerpts from the interview:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

DLFs phase II flats to cost 30% more

NEW DELHI: Indias largest property firm DLF plans to formally launch 1,900 apartments in its Capital Greens project in Delhi within a week. The flats will be sold for around 30% more than the phase I price of the same project signalling the companys rising confidence in the revival of the property market, a company executive said.

DLF intends to launch the second phase of Capital Greens project, a 200-acre project located in West Delhi, at a minimum rate of Rs 6,500 a sqft, making the cheapest apartment in the project cost around Rs 80 lakh. This is significantly higher than the rate of Rs 5,000 a sqft, or the least price of Rs 60 lakh for an apartment, at which DLF sold 1,350 apartments in the first phase of the project in April.
Unlike in the first phase, when only 2 and 3 bedroom apartments were available, the second phase will have 2, 3 and 4 bedroom apartments with areas ranging from 1,200 sqft to 2,600 sqft.
A DLF spokesperson said the company was still carrying out a market survey through a chain of brokers and consultants to reach an offer price for the project.
Despite a good response in the first phase of the project, DLF was cautious about launching the second phase as it was unsure of the homebuyers appetite. Many of those who booked in the first phase were investors hoping to earn a premium when prices move up. Our Bureau

Source:http://lite.epaper.timesofindia.com/getpage.aspx?pageid=5&pagesize=&edid=&edlabel=ETD&mydateHid=14-09-2009&pubname=&edname=&publabel=ET

Leela Aims to Unseat Rivals as Top Luxury Hotel Chain in India

In a country where information technology is the largest industry, the Leela Palaces, Hotels and Resorts organization aspires  to become the best-known brand  in India’s growing hotel corridor.

Leela’s newest property is the Leela Kempinski Gurgaon in the fast-growing suburb of Delhi. Since its soft opening in April, the hotel has posted occupancy rates in the low 70s.

Leela Kempinski Gurgaon Hotel
Between July 14 and July 24, the hotel was sold out, according to hotel officials. They say guest demand in India is for 100,000 to 150,000 new hotel rooms, particularly at business-oriented properties.

A 15-minute drive from the Indira Gandhi International Airport, the Leela Kempinski Gurgaon offers 322 guestrooms and suites and 90 residences in one-, two- and three-bedroom options.

Built next to the Ambience Mall, reputedly Asia’s largest, it targets the international business traveler. It’s the first entry into northern India for Leela, the Mumbai-based luxury brand Capt. C.K. Krishnan Nair founded in the mid-’80s.

A center of business process outsourcing, Gurgaon is expected to house branches of 40 percent of Fortune 500 companies by next year, according to HotelNewsNow.com.

American Express, Microsoft, General Electric and IBM already have offices there. There’s no off-season. Rates start at 7,000 rupees (about US$145) for double occupancy.  The Leela is strategically located on the Gurgaon-Delhi border.

In Gurgaon, 90 percent of hotel business is corporate. There are 700 international business offices in Gurgaon, a brand-new city of 1.5 million on the southeastern border of Delhi, a much older city of 14.5 million.

There are 1.1 billion people in India, so the country will never be short on a work force, industry analysts point out.

Leela plans to open another five properties by 2012 in India’s destination cities, including the academic center of Pune, and Agra, a tourist magnet that features the Taj Mahal and Agra Fort.

“India is a giant engine starting to roll,” says Sanjoy Pasricha, Leela VP of sales and marketing, noting 65 percent of the Indian population is less than 25 years old.

Pasricha says that by blending traditional Indian styles based on the country’s royal past with state-of-the-art technology, Leela, the newcomer, hopes to edge out competitors, such as Taj Hotels Resorts and Palaces, Oberoi Hotels and Resorts and Trident Hotels.

Leela encompasses business hotels in Gurgaon, Mumbai and Bangalore. It also has leisure properties in Goa, Kerala and Udaipur.

However, Leela has no plans to expand beyond India–at least for now. Kempinski is its international marketing representative, a business partner that will help it realize its phased plans, Pasricha says. Leela also belongs to the Global Hotel Alliance and Preferred Hotels & Resorts.

A distinctive  Indian ambience separates Leela from its competitors, says Onno Poortier, Leela’s president. The company thoroughly researches  its locale before it builds, Poortier adds.

“The other key difference is going to be that our business hotels are newly built palace hotels reflecting the royal tradition of India,”  says Pasricha, the sales and marketing executive.

“This is true of Bangalore (where the 357-room Leela Palace Kempinski Bangalore evokes the Mysore Palace) and will be true for Chennai (the Detroit of India, where the 397-unit Leela Palace Kempinski Chennai will open next year) and New Delhi as well,” Pasricha says.

The 260-room Leela Palace New Delhi will open next fall in the city’s diplomatic enclave. Construction cost will be about US $1 million a room, including more than US $500,000 per room in land costs alone.

Source : http://www.realestatechannel.com/international-markets/vacation-leisure-real-estate/leela-palaces-hotels-resorts-leela-kempinski-gurgaon-taj-palaces-oberoi-hotels-resorts-trident-krishnan-nair-onno-poortier-leela-palace-kempinski-bangalore-1384.php

http://www.realestatechannel.com/international-markets/vacation-leisure-real-estate/leela-palaces-hotels-resorts-leela-kempinski-gurgaon-taj-palaces-oberoi-hotels-resorts-trident-krishnan-nair-onno-poortier-leela-palace-kempinski-bangalore-1384.php

Mall developers and retailers in the country appear to be slowly warming up to the revenue-sharing model. Mumbai-based Entertainment World Developers Pvt Ltd (EWDPL) has just launched a mall-in-mall concept called Treasure Showcase, which allows non-mall brands to sell their merchandise without having to pay rent or common area maintenance charges. The company will, however, take a percentage of the retailer’s turnover as its share, EWDPL chairman and MD Manish Kalani said. Hitherto, despite being touted as the best possible arrangement between a mall developer and a retailer, the adoption of the revenue-sharing model has been less than encouraging. The handful of success stories include Inorbit Mall in Mumbai, Select Citywalk in south Delhi and the soon-to-be-launched Palladium mall at High Street Phoenix, Mumbai.

The parties cite incorrect retailing format, opacity in recording sale transactions, hesitation in sharing books of accounts and lack of successful track record etc among the reasons for a slow adoption. “A lot of retailers have problems with sharing sales/revenue numbers. It’s a real task for the mall developer because retailers are hesitant in doing so,” Dharmesh Jain, chairman and managing director of Nirmal Group of Companies, said at the recently concluded CII Real Estate Conference. Revenue sharing generally involves the developer charging the retailer on the basis of a minimum guarantee or percentage of turnover, whichever is higher, or a combination of the two. The minimum guarantee figure is arrived at by taking into account the ongoing market lease rate that can be commanded for the space being occupied by the retailer. As for the percentage of sales, it ranges between 3% and 25% depending on the nature of business being conducted by the retailer.

Pranay Sinha, managing director of Star Centres, feels the key lies in being able to choose tenants who can generate enough business to cover the cost of housing their stores in the mall. “It’s a science,” he says. “Besides, once the retailer is assured that the mall developer/ management will channelise all their efforts in doing things that will eventually improve the retailers’ business, they have no issues sharing an X% of their revenues with the developer.” The demand-supply imbalance in the retail real estate space has changed in favour of retailers in recent months. Over a year ago, they were chasing mall developers for space at unreasonable rates. However, today, with new properties coming up and retailers playing safe on expansion plans, lease rentals have taken a knock of 30-35% across the country.

However, few retailers favour revenue sharing over lease rentals. Many see it as a mere marketing ploy to lure retailers in. “It always is accompanied by a host of add-ons that eventually work to the disadvantage of the retailers. There is no clarity on what exactly is my per square foot cost,” says Jay Gupta, customer care associate and managing director of The Loot India Ltd. On their part, developers feel most retailers are yet to establish themselves as professional outfits. Vishesh Rawat, senior manager — retail, Ansal Plaza, says, “Maintaining transparency in sales and accounting processes are crucial for building faith in the mall owners. Besides, most of them are new and don’t have long and successful track records of retailing profitably in Indian markets. Retailers make profits or losses primarily due to their business format and operations. Why should we have a stake in their profits or losses?” he asks.

B S Nagesh, vice-chairman, Shoppers Stop Ltd, sums up the situation. “People are still experimenting and sanity can be achieved only once both the businesses reach a certain level of maturity. Till then it will continue to be a highly debatable issue of choosing between fixed rentals and revenue sharing as a business model.” Going by industry reports, barely 25 of the 250 odd malls in the country are malls in the real sense, though around 50-75 are slowly reaching that level.

Source : http://www.indianrealtynews.com/retail-market/mall-in-mall-concept-receiving-warm-response.html

Omaxe`s arm to develop hi-tech township in UP

Omaxe`s  subsidiary – Rivaj Infratech has entered into memorandum of understanding (MoU) with Bulandshahar Development Authority for the development of hi-tech township in Bulandshahar, Uttar Pradesh on a proposed area of 3601.19 acres.

The proposed hi-tech township is well connected to Delhi, located in NCR Region adjoining Greater Noida adjacent to proposed Eastern Peripheral Expressway and North-East Railway Freight Corridor and will have estimated revenues of over Rs 75 billion and is to be executed in Phases over a period of 5 to 7 years.

Omaxe is a leading real estate development companies in India. Omaxe`s ventures in the real estate business include developing integrated townships, group housing, shopping malls, multiplexes, hotels, resorts, IT parks, biotech parks and SEZs.

Shares of the company gained Rs 5.1, or 4.34%, to trade at Rs 122.65. The total volume of shares traded was 415,172 at the BSE (2.25 p.m., Thursday).

Housing Development Says Demand From Overseas Indians Is Rising

Sept. 5 (Bloomberg) — Housing Development Finance Corp., India’s biggest mortgage lender, said home demand from Indians living overseas is rising as the global economy recovers and interest rates remain low.

Home loans to non-resident Indians currently account for 14 percent of Housing Development’s business, Joint Managing Director Renu Sud Karnad said today at a property exhibition in Singapore. The pace of increase in loans extended to non- resident Indians in Singapore could surpass the company’s 20 percent per annum rate of loan growth in the Middle East that contributes the biggest share of business overseas, Karnad said.

Consumer demand for home loans in India is reviving after the central bank cut its key rate by 425 basis points since October to the lowest on record in a nation that has a shortage of 24.7 million housing units. Housing Development in July reported a 21 percent increase in first-quarter profit to 5.65 billion rupees ($116 million) as a drop in borrowing costs and decline in property prices lifted demand for home loans.

“It’s a good time to invest now as prices have come off quite a bit due to the global crisis but have started to inch up already in the past two months, especially in Mumbai and Delhi,” Vice Chairman and Managing Director Keki Mistry, said at a press conference today. “Interest rates won’t be rising too much due to ample liquidity.”

Property prices in central Mumbai and New Delhi have risen 30 percent since May after falling 35 percent to 40 percent during the global crisis, Mistry said.

Source : http://www.bloomberg.com/apps/news?pid=20601091&sid=a2V.zYjgUvOE

Search Affordable Property In Dwarka At Dwarkaguide.com

India 01/09/2009- Since the inception of Delhi Metro Line in Dwarka, the sub city no longer remains the long distance cousin of Delhi. That is why people are queuing up to acquire a piece of Property In Dwarka. You can secure a nice Real Estate in Dwarka with the help of Dwarkaguide.com website which excels in quick affordable property searches in Dwarka.

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Source : http://www.bignews.biz/?id=812338&keys=information-Property-investment-Business

Bestech Group: Building more than trust

Gurgaon, a modern suburb of Delhi, is witnessing a flurry of activities in real estate sector. Well-known realty majors are developing a large number of projects to meet the growing demands in the commercial, residential and retail sectors in the area.

Bestech Group, a twenty-year-old company managed by professionals with construction background is prominent name in the northern part of the country. The group has a portfolio that boasts of real estate development, hospitality and construction, Bestech Group, is owned, managed and led by Dharmendra Bhandari and Sunil Satija.

Powered by a multi-disciplinary team of specialists and professionals, Bestech Group is constantly innovating and growing. With a total commitment to quality and meeting time schedules, the group always ensures the highest degree of professional handling at all levels.

Company has started new projects based on exciting new concepts of modern lifestyle. At present the Group has an impressive list of completed and under-construction projects in its kitty. These projects include residential and commercial complexes, integrated townships, shopping malls and IT parks.

Bestech has recently launched its Flagship project in Sector -47, Gurgaon. Park View Spa – Nothing More to Desire A prize project by Bestech, Park View Spa is spread over 13 acres and is a premium luxury apartment endeavor from Bestech. Park View consists of 390 units of 3 B/R & 4 B/R and also includes Penthouses with 5 B/R. Bestech has designed this project centered around a Spa to make everyday a rejuvenating experience for its owners. Each apartment is air-conditioned, floorings laid with imported marbles in living and dining area, modular kitchens, R.O. water purification unit and shower cubicle in all bathrooms. Park View Spa is all this and much, much more and definitely meant for those with distinctly refined taste.

But what sets this project apart is a luxurious spa complete with Jacuzzi in every apartment says MD Dharmendra Bhandari. The success of the Spa project shows the trust of customers in the Bestech Brand, he added. The 80% of the project sold in just 30 days, he said.

Strategically located in Gurgaon’s Sector 47, Park View Spa is about 1 km away from NH-8, 0.5 km from Medicity and 2 kms from the last Metro station. Other highlights of Park View Spa include lush green landscapes, a fully equipped gym, plunge pool, putting greens, Badminton/ Basketball/Tennis & Squash courts, meditation and contemplation center, children’s play area, 24-hour 3-tier security with monitoring systems and ample parking space to accommodate a fleet of cars for every apartment owner. The entire complex enjoys sufficient power back up. Daily necessities can be acquired from the shopping store inside the complex and there’s a ‘Facility Management Center’ to take care of all the bills and maintenance needs. The in house club of the Park View Spa has swimming pool, steam, sauna, beauty parlour and massage center. Park View Spa is an embodiment of finest living.

The sample flat of Park View Spa, with select marble and tiles is appreciated by one and all.

After the overwhelming response of Park View Spa, Bestech is shortly launching a project in Sector-67, Gurgaon Sohna Road, “Park View Spanext” (affordable luxury flats). The location and the specification of the project makes it unique, said MD of the company Sunil Satija. The accommodation available is of 3 B/R, 4 B/R and Penthouses.

The apartments are priced between Rs 60 to 90 lakhs.

Bestech Group is developing commercial and IT projects over an area of approx 2.5 million sqft, 50% of which shall be delivered within the next 6 months, and the remaining within the next 6-12 months. Few of the landmark commercial projects are Bestech Cyber Park, Park View Business Tower, Bestech Chambers, and Orient Bestech Business Tower. In residential arena, it has already developed over 2000 residential dwelling units at various group housing in Gurgaon and in a township in Dharuhera. Park View City, Park View City-2, Park View Residency, Park View Delight, and Park View Sapnext are few prestigious projects based in Gurgaon.

The hospitality divisions of Bestech Group have two 4 star hotels which are fully operational. ‘Park Plaza’ in Noida with 88 rooms and 2 specialty restaurants and ‘Radisson Suites’ Gurgaon. Further two 5 star hotels – ‘Radisson Indore’ and ‘Radisson Nagpur’, each comprising more than 200 rooms are heading for completion.

The group is in the process of developing new and exciting projects targeting different customers. It is forging new methodologies and technological back-ups for building a new and better tomorrow. The landmark projects initiated by the Group independently are symbols of perfection and precision and the result of concerted efforts of its professionals, engineers, design specialists and suppliers.

Bestech is steaming ahead with innovation and commitment, striving relentlessly to better its previous performance.

Source : http://content.magicbricks.com/bestech-group-building-more-than-trust

After a lull, land deals make a comeback

The slowdown in the property market, induced by the global meltdown and negative sentiments, had dealt a body blow to the mega land deals, in the country. But the gloom seems to be finally lifting. Coinciding with the return of buyer interest in select pockets of residential market and the improved liquidity position of builders, land auctions are inching back into the spotlight.

Consider this. DLF Ltd recently made headlines when it walked away with 350.7 acres in Gurgaon, for an estimated Rs 1,750 crore, marking one of the largest land deals in the country. The prime land, on the Gurgaon-Faridabad road, had been put on the block for re-bid after the only bidder in the first round (DLF) had drawn attention to certain difficulties in project implementation.

HSIIDC (Haryana State Industrial & Infrastructure Development Corporation) re-invited bids in July this year with easier terms and conditions, including staggered payment plan spread over seven years. This time, DLF clinched the deal with its winning bid of Rs 12,000 per square metre — two other bidders did not qualify on technical grounds.

The land in the Delhi suburb would be used for development of commercial, residential, sports complexes, and an 18-hole golf course. DLF, however, remains tight-lipped about the project, but sources say that the land deal is “positive” for the company, given its proximity to South Delhi on one side and the existing golf course on the other.

DLF is not the only one going after such transactions. Earlier this year, Anant Raj Industries decided to set aside nearly Rs 400 crore from its cash reserves, to acquire land for upcoming residential projects.

So are the land deals back in reckoning, after a long dry spell? Industry experts believe that land acquisition will gather pace, but will remain largely need-based.

“The market definitely is improving, new projects are being launched and the cash flow, for builders, is getting back in shape on the back of QIP issues and some proposed public offers that are being lined-up,” says Mr Manish Aggarwal, Executive Director, Investment Services, Cushman & Wakefield (C&W) India.

Time to buy

While the conditions are turning positive, the biggest clincher clearly is land valuation. In many cases the land prices have corrected nearly 60-70 per cent, says an industry observer.

Agrees Mr Amit Sarin, Director and CEO, Anant Raj Industries. “It is the best time to buy land — the valuation is a fraction of the 2007-level. Everyone is announcing low cost and affordable housing projects and the main ingredient of low cost in real estate is the land cost, not construction cost,” Mr Sarin points out.

But Anant Raj Industries, itself a zero-debt company, expects land buying to remain selective for a while.

“It is not a trend in the industry. It will happen only in those cases where the land costs are extremely attractive and the builder has a comfortable liquidity position,” he adds.

The company has stayed away from aggressive land buying over the last 2-3 years.

No frenzy likely

Real estate consulting firm CBRE too does not foresee the return of land frenzy seen in 2007-2008. “Companies are not rushing into transactions. They are more cautious and evaluating deals carefully on parameters such as potential for development, location, margins and valuation,” says Mr Anshuman Magazine, Chairman and Managing Director, CB Richard Ellis South Asia Pvt. Ltd.

Source : http://www.thehindubusinessline.com/iw/2009/08/30/stories/2009083051041500.htm

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

TDI’s Rs 1,000 cr project for low-cost homes

NEW DELHI: Delhi-based realty firm TDI is planning to invest Rs 1,000 crore to build lower-priced homes in the national capital region in the next  three years, a senior company executive said.

“The demand for homes is coming back slowly,” said TDI managing director Kamal Taneja, adding that the company was focusing on lower priced homes to attract buyers. TDI, which has its real estate projects spread over Delhi, Kundli and Panipat in Haryana and Mohali in Punjab, recently launched 350 residential units in Kundli and claims to have sold all of it in just a month.

The company is now planning to launch another 350 homes over the weekend in Kundli, around 35 kms from central Delhi. The 900-sqft independent floor homes will be priced between Rs 16.50-19 .50 lakh. The company will invest around Rs 1,000 crore to build a total of 700 homes in Kundli over the next three years, Taneja said.

TDI has tied up with architectural firms Drew Dickson Associates of Australia and HO Partners of Hong Kong for development of its 1600-acre Kundli township. Following a revival in the capital market, many listed real estate companies, including Unitech, HDIL and Sobha, have raised funds via QIP, while some other unlisted firms are lining up their initial share sale.

Source : http://economictimes.indiatimes.com/Markets/Real-Estate/News-/TDIs-Rs-1000-cr-project-for-low-cost-homes/articleshow/4917254.cms

Raheja Developers plans to develop serviced apartments in Delhi, Noida and Faridabad

According to a report in The Financial Express, development of serviced apartments in major metros is the latest trend in the Rs 10000-Crore real estate sector. Top builders aim at supplying 100 per cent service apartments to attract tourists and business travellers.

Delhi-based Raheja Developers is planning to venture into the development of serviced apartments in India, for which the company is planning land deals in Delhi, Noida and Faridabad. The move coincides with the Commonwealth Games 2010.

Navin Raheja, Managing Director, Raheja Developers, said, “In the next one year, we will launch 150 units of serviced apartments in various sectors of Gurgaon to cover the huge shortage of hotel rooms and apartments for tourist and business travellers. The demand for serviced apartments is suddenly high in the National Capital Region (NCR) because of the upcoming Commonwealth Games. We would be offering 25 per cent lower room rents, an alternative option to steep hotel accommodation. The area would vary from 400 sq ft to 600 sq ft and would be extremely competitive in pricing.”

Serviced apartments are fully furnished, ready-to-use apartments, usually 300

Source : http://www.hospitalitybizindia.com/detailNews.aspx?aid=5849&sid=1

DLF Launches Phase II of its Project in West Delhi

India’s largest real estate developer DLF is showing signs of greater confidence. It is launching the second phase of a project in West Delhi at about a 30 per cent premium to the price of the flats it sold in the same project a few months ago. In a sure shot sign of a revival, DLF, back in business, is set to launch the second phase of the Swatantra Bharat Mills project, one of the most expensive land deals ever.

NDTV learns from sources that phase II launch can be expected by August end. This phase will have 1,400 flats, and will be priced at Rs 7,000 per square feet. The first phase was sold by DLF in the range of Rs 4,500-Rs5,500 per square feet. DLF officials are confident that even at 35-40 per cent premium over the first phase, the company will be able to attract interest of investors and end-users, considering the fact that during peak, flats in the locality were selling at more than Rs 15,000 per square feet. Interestingly, some Delhi-based property dealers operating in West Delhi say that even SBM phase I flats are commanding Rs 8,000-Rs 9,000 per square feet in the secondary market.

Following the response that DLF had attracted in SBM phase I, many real estate developers had decided to go affordable in the national capital region. These include Unitech, which is selling apartments for as less as Rs 1,900 per square feet in some parts of Noida. BPTP has launched floors in Faridabad at just Rs 15 lakh. Also, Assotech, which had priced its luxury project Celeste in Noida at a whopping Rs 4 crore plus range, has now brought the price down to just about Rs 45 lakh, but of course, it has also cut down on size and features to accommodate the price cut. Meanwhile, Raheja Developers is giving final touches to an affordable housing project in South Delhi.

Navin Raheja, MD of Raheja Developers, said, “It is now a proven fact that only houses that can be afforded by the common man attract interest. We have realised this, and therefore, most action is in that segment.” Evidently, the real estate companies have realised that the mantra for survival is selling flats and not selling stakes and surplus land banks. Flats in turn can only attract end user interest if they are affordable.

Source : http://www.indianrealtynews.com/real-estate-developers/dlf-launches-phase-ii-of-its-project-in-west-delhi.html

Realtors may not gain from tax benefit extension

The government’s decision to extend the time limit for claiming tax exemption on profit earned from projects may not give the desired benefits to Buying a house?

Instead of giving benefits to ongoing projects, the government chose to extend a tax waiver to ‘affordable’ housing projects that were approved till March 31, 2008.

“A change in any regulation with retrospective effect doesn’t seem to address either the pricing or the supply issue in the real estate sector,” said Kumar Gera, chairman, CREDAI, a builder’s association.

The current provision is unlikely to have any impact on the prices or on the sale of stock. Had it been an exemption for ongoing projects, it would have been an incentive for developers to build more such projects.

Though there is a shortage of 24 million dwelling units in India, there is not enough supply, especially in bigger cities that cater to middle-income segment. “Such an announcement would have no impact on the overall sector,” said E Sudhir Reddy, chairman, IVR Prime, a south-based developer.

Since projects are already under construction, we will check their eligibility status only when tax is due, said R Nagaraju, corporate strategy planning head at Unitech. For developers, project completion is more important than the checking whether it will benefit from any regulatory change.

As per the new regulation, all projects which were approved by March 31, 2008 against the earlier deadline of March 31, 2007, would be eligible for the benefits of Section 80 IB (10). This section provides tax waiver for a project, which is on a minimum one-acre plot of land and the residential unit, and has a maximum built up area of 1,000 sq ft in Mumbai or Delhi and 1,500 sq ft at any other place. Besides these, there are certain other criteria that need to be fulfilled.

“Most builders preferred large units during April 2007 to March 2008, as they were in high demand at that time,” said A Shyamsunder, executive director, marketing agency Disha Direct.

All big builders, such as DLF, Unitech, Sobha, Omaxe and Parsvnath, had launched their luxury projects those days. One of the few listed players that had launched mid-housing projects during that time was Indiabulls Real Estate and DLF.

However, experts say that this relaxation could benefit a few developers, but not the entire industry. “The overall effect of the announced provisions will only be noticeable in smaller cities, where homes costing below Rs 20 lakh are still procurable. In larger cities such as Mumbai, a flat of 1,000-1,500 sq ft can by no yardstick be considered affordable,” said Anuj Puri, chairman, real estate consultancy firm Jones Lang LaSalle Meghraj.

Source : http://economictimes.indiatimes.com/Markets/Real-Estate/Realtors-may-not-gain-from-tax-benefit-extension/articleshow/4858000.cms

5% to15% Mall Vacancies in Major Retail Destinations

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

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

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

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

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

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

Rentals in Mumbai and Delhi are higher than New York

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

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

Rentals in Mumbai and Delhi are higher than New York

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

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

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

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

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

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

Mall owners focus on space fillers

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

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

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

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

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

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

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

Shreya Developwell pioneers ultramodern lifestyle in India

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

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

World-class projects of Shreya Developwell:

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

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

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

Strategic locations of Shreya Developwell Projects:

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

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

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

Developers Start New Projects Leaving Old Projects Midway

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

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

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

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

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

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

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

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

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

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

Steady Recovery for Office Real Estate

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

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

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

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

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

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

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

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

The Leela Kempinski Hotel and Residences opens in Gurgaon, Delhi

The Leela Palaces, Hotels and Resorts has announced the launch of its first property in northern India — The Leela Kempinski Hotel and Residences — in the business district of Gurgaon, Delhi (NCR). The property is located within 15 minutes drive from the Indira Gandhi International Airport and is on the Delhi-Gurgaon border. The hotel offers 322 luxuriously appointed guestrooms and suites and 90 Residences in configuration of one, two and three bedroom options.

The Leela Kempinski, Gurgaon is the first property among the upcoming properties of The Leela Palaces, Hotels and Resorts in north India and is the first managed property of the group. The rooms feature modern amenities and facilities including Wi-Fi internet connectivity, Internet Protocol phones, LCD Television with Blue Ray Player, Bose iPod Dock, electronic safes and ergonomic mattresses. Two exclusive floors of The Royal Club will offer guests personalised and complimentary services with added Royal Club Lounge facilities.

Among dining alternatives is a unique 225 capacity restaurant with live kitchens, Spectra;

Source : http://www.hospitalitybizindia.com/detailNews.aspx?aid=5541&sid=1

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 Developers have stopped Discounts on Properties

Developers in India have stopped offering discounts on properties and in some cases are even increasing prices as demand rises.

Rising sales are also prompting some developers to return to the luxury end of the real estate market which had stalled in the economic downturn.

‘Prices are likely to inch upwards in the coming months in some markets,’ said Kumar Gera, chairman of the Confederation of Real Estate Developer’s Association of India.

But he added that even an increase in prices will still leave many developments cheaper than they were at the peak of the market a year ago. He estimated that the property crash saw prices fall 25 to 30% but proposed increases in coming months would be around 10 to 15%.

The prices increases vary. Unitech has increased prices marginally, by some 2% in its Gurgaon projects but Mumbai based developer Lodha Group has upped prices by 10 to 15%. A Lodha spokesman confirmed that prices had gone up in luxury projects launched in March. ‘We have marginally increased prices every month for these projects since their launch. But the market is in a good spot and the response is still good,’ said director Abhisheck Lodha.

Bangalore-based firm Brigade Enterprises cut its prices by 15% in April but has now increased them by 3 to 5% and said that it plans to continue doing so at regular intervals. ‘We are hoping that in one year’s time, prices will be back to the peak levels of 2007 to 2008,’ said chairman and managing director M.R. Jaishanker.

However, discounts through brokers have not yet disappeared from the market. Developers have increased the commission offered to brokers from 3% maximum to 5 to 6%. Brokers in turn are offering a discount of 1.5 to 2% on the price of property to buyers.

‘These are the same measures developers and brokers adopted to create a price bubble during the boom years. Demand has not risen to an extent that it can fuel a price increase,’ said S.G. Maheshwari, a Mumbai-based property consultant.

Aditi Vijayakar, residential executive director at property consultants Cushman and Wakefield is not convinced the market will carry the price increases. ‘Right now it is a fairly confused market. Rates have more or less bottomed out but there needs to be substantial amount of sales before buyers are convinced price increases are justified. I think the real estate market will be flat for some time,’ she said.

Source : http://www.indianrealtynews.com/real-estate-india/real-estate-developers-have-stopped-discounts-on-properties.html

Global Real Estate Giant IREO to Pump $500 million in Indian Real Estate and Infrastructure

Global real estate giant IREO will pump in $500 million in various infrastructure projects in India over a period of seven years, the company said Thursday. IREO, which has invested $1.5 billion in India, is already one of the largest investors in the country’s real estate sector. “Having already invested $1.5 billion, we still have another $500 million available in cash for further investments in our projects,” Lalit Goyal, vice-chairman and managing director IREO, told reporters here.

The company currently has 13 projects and is in the process of constructing an IT SEZ (special economic zone) in Pune. “We have already commenced construction of a five million square feet IT SEZ (Pune) and a three-million-square-feet housing project,” Goyal said. Added Anurag Bhargava, chairman IREO: “The Pune SEZ should be completed by next year.” The company has projects in many states including Haryana, Punjab, Tamil Nadu, Maharashtra and Delhi. The company said it would develop an eight-million-square-feet housing project in the next 12 months.

Source : http://www.indianrealtynews.com/real-estate-india/global-real-estate-giant-ireo-to-pump-500-million-in-indian-real-estate-and-infrastructure.html

Delhi and Mumbai Dominate Residential Market

The rest of India almost doesn’t matter – at least when it comes to realty. Think property and you think capital Delhi and financial capital Mumbai. These two metros, along with their suburbs, comprise the largest pie of real estate in the country. No surprise that they are undoubtedly the most sought after destinations for an investor looking at attractive residential locations. These markets are significant from the perspective of sheer administrative strength and as centres of business as well as growth. And numbers bear out this fact as well. According to Rajiv Sahni, partner, real estate practice, Ernst & Young, while in terms of office space absorption, NCR comes second after Bangalore, it commands nearly 35% share of the top 8-10 residential markets in India. Mumbai comes second, with a 15% share of residential market.

So which are the best places to invest in Delhi and Mumbai? Aditi Vijayakar, executive director, residential services India, Cushman & Wakefield, advises that investments should usually be targeted towards destinations that have a stronger prospect of appreciating in the future, offer leasing potential and have the inherent strength to sustain demand. “Locations such as central Mumbai (Parel, Mahalaxmi), Bandra (West & East), Kalina and JVLR in Mumbai and NOIDA-Greater NOIDA expressway, Indirapuram, Golf Course extension road, in Delhi offer such opportunities. They are ideally located from the perspective of accessibility and have growing commercial hubs in the vicinity. These are emerging as strong changing markets.” Aditi adds that as far as return on investment is concerned, these will vary depending on projects, acquisition cost, leasing potential, supply pressure, promoter’s brand equity and maintenance quality. “Average returns from rental may vary from 4% to 6% and capital values may appreciate at the rate of 8% to 10% per annum. Returns are dependent on the capital and rental value cycle and currently both values have dipped given the economic environment.”

What also makes these cities attractive for owning a residential space is the fact that they are buzzing with economic activity. According to Anshuman Magazine, CMD, CB Richard Ellis, a lot of improvement has taken place in these cities in terms of business opportunities and infrastructure which makes them extremely viable destinations. Developers also agree that Gurgaon and Indirapuram are attractive markets in Delhi NCR whereas it is Navi Mumbai, Vasai, Virar, and Kandivali in Mumbai which will see increased development.

Says Harinder Dhillon, GM, Marketing, Raheja Developers, “These two markets make up at least 30% of the entire market. Gurgaon is lucrative due to the upcoming developments in accordance with the new Gurgaon masterplan. The Indirapuram area and beyond will remain in demand because of the revised floor area ratio (FAR) and population density norms. In Delhi, the areas under new master plan which will open up under the new R zone such as Chattarpur, Nangloi, Alipur, Najafgarh blocks will see heightened activity. In Mumbai, it is Navi Mumbai, Vasai, Virar, Kandivali which are likely to witness hectic transactions in the near future.”

“If one is looking at the futuristic development of the place, then places in Ghaziabad are NH24 and NH58, and if you move further then Faridabad is also coming up well. Some of these places might look deserted but think of places like Dwarka some 10 years back. It is now in demand primarily because of infrastructural developments. In the financial capital, locations such as Navi Mumbai and Thane are attractive,” he says. Some are of the view that the genesis of Delhi and Mumbai is different altogether as one is a political centre and the other a business hub. Brijesh Bhanote, senior V-P, sales and marketing of The 3C Company, a Delhi-based real estate firm feels that as the cost of construction and land prices in Delhi are relatively lower than Mumbai, hence return on investment could be better in the capital.

A few things should, however, be kept in mind while seeing the investment potential of a given location. Various aspects such as infrastructural developments, connectivity, power, roads etc should be considered so that one can get maximum returns of the investment. “Neighbourhoods with a strong employment base, proximity to educational, health and shopping centres, ideal external connectivity through mass transportation system, closeness to golf course and natural garden are essential features of a property having appreciation potential. If such a property is backed by a developer having reputation for high quality construction, it is destined to give handsome return on a medium to long term basis,” says Rajeev Rai, vice-president, corporate, Assotech.

With developers coming up with many projects in and around new developments in Delhi NCR and Mumbai, you can expect a lot of supply in these cities in the near future. But do study the pricing basics and micro examine the investment potential of a given location in these two real estate markets. Make a good choice and be sure of a profitable bargain.

Source : http://www.indianrealtynews.com/real-estate-india/delhi/delhi-and-mumbai-dominate-residential-market.html

Delhi, Mumbai command 50% of top residential markets

The rest of India almost doesn’t matter – at least when it comes to realty. Think property and you think capital Delhi and financial capital Mumbai. Land as investment

These two metros, along with their suburbs, comprise the largest pie of real estate in the country. No surprise that they are undoubtedly the most sought after destinations for an investor looking at attractive residential locations.

And not without reason. These markets are significant from the perspective of sheer administrative strength and as centres of business as well as growth. And numbers bear out this fact as well. According to Rajiv Sahni, partner, real estate practice, Ernst & Young, while in terms of office space absorption, NCR comes second after Bangalore, it commands nearly 35% share of the top 8-10 residential markets in India. Mumbai comes second, with a 15% share of residential market.

So which are the best places to invest in Delhi and Mumbai? Aditi Vijayakar, executive director, residential services India, Cushman & Wakefield, advises that investments should usually be targeted towards destinations that have a stronger prospect of appreciating in the future, offer leasing potential and have the inherent strength to sustain demand.

“Locations such as central Mumbai (Parel, Mahalaxmi), Bandra (West & East), Kalina and JVLR in Mumbai and NOIDA-Greater NOIDA expressway, Indirapuram, Golf Course extension road, in Delhi offer such opportunities. They are ideally located from the perspective of accessibility and have growing commercial hubs in the vicinity. These are emerging as strong changing markets.”

Aditi adds that as far as return on investment is concerned, these will vary depending on projects, acquisition cost, leasing potential, supply pressure, promoter’s brand equity and maintenance quality. “Average returns from rental may vary from 4% to 6% and capital values may appreciate at the rate of 8% to 10% per annum. Returns are dependent on the capital and rental value cycle and currently both values have dipped given the economic environment.”

What also makes these cities attractive for owning a residential space is the fact that they are buzzing with economic activity. According to Anshuman Magazine, CMD, CB Richard Ellis, a lot of improvement has taken place in these cities in terms of business opportunities and infrastructure which makes them extremely viable destinations.

Developers also agree that Gurgaon and Indirapuram are attractive markets in Delhi NCR whereas it is Navi Mumbai, Vasai, Virar, and Kandivali in Mumbai which will see increased development.

Says Harinder Dhillon, GM, Marketing, Raheja Developers, “These two markets make up at least 30% of the entire market. Gurgaon is lucrative due to the upcoming developments in accordance with the new Gurgaon masterplan. The Indirapuram area and beyond will remain in demand because of the revised floor area ratio (FAR) and population density norms. In Delhi, the areas under new master plan which will open up under the new R zone such as Chattarpur, Nangloi, Alipur, Najafgarh blocks will see heightened activity. In Mumbai, it is Navi Mumbai, Vasai, Virar, Kandivali which are likely to witness hectic transactions in the near future.”

Agrees Vijay Jindal, CMD, SVP Group who says that some of the best places to invest are in Delhi NCR and the new developments in Mumbai. Land as investment

“If one is looking at the futuristic development of the place, then places in Ghaziabad are NH24 and NH58, and if you move further then Faridabad is also coming up well. Some of these places might look deserted but think of places like Dwarka some 10 years back. It is now in demand primarily because of infrastructural developments. In the financial capital, locations such as Navi Mumbai and Thane are attractive,” he says.

Some are of the view that the genesis of Delhi and Mumbai is different altogether as one is a political centre and the other a business hub. Brijesh Bhanote, senior V-P, sales and marketing of The 3C Company, a Delhi-based real estate firm feels that as the cost of construction and land prices in Delhi are relatively lower than Mumbai, hence return on investment could be better in the capital.

A few things should, however, be kept in mind while seeing the investment potential of a given location. Various aspects such as infrastructural developments, connectivity, power, roads etc should be considered so that one can get maximum returns of the investment.

“Neighbourhoods with a strong employment base, proximity to educational, health and shopping centres, ideal external connectivity through mass transportation system, closeness to golf course and natural garden are essential features of a property having appreciation potential. If such a property is backed by a developer having reputation for high quality construction, it is destined to give handsome return on a medium to long term basis,” says Rajeev Rai, vice-president, corporate, Assotech.

With developers coming up with many projects in and around new developments in Delhi NCR and Mumbai, you can expect a lot of supply in these cities in the near future. But do study the pricing basics and micro examine the investment potential of a given location in these two real estate markets. Make a good choice and be sure of a profitable bargain.

Source : http://economictimes.indiatimes.com/Features/The-Sunday-ET/Property/Delhi-Mumbai-command-50-of-top-residential-markets/articleshow/4739137.cms?curpg=2

Decline in Demand of Service Apartments

The demand for service apartments has declined in the last few months due to the slowdown. This apart, real estate experts feel that lack of dedicated players and lower hotel room prices too have impacted the demand in this segment. This, however, was not the scene a year ago. “Last year, the boom had resulted in corporates offering a lot of privileges like frequent travels, which had seen a rise in demand for service apartments. However, lately, with the domestic travel reducing and even hotels offering cheaper prices, the demand has dropped a bit. Nevertheless, the industry expects demand for service apartments to rise again in the next six months,” says Jaxay Shah, director, Savvy Infrastructure Limited.

Real estate analysts agree that the option of service apartment is better than hotels as far as corporates are concerned. “Service apartments carry facilities that support stay with a duration of 15 days as well as over six months. Compared with that, staying in hotels tend to be costlier. Longer stay, however, is being ruled out by corporates as of now. Rather, they are now relying on video conferencing and other cost effective means,” says Ashutosh Limayi, associate director, strategic consulting at John Lang LaSalle Meghraj (JLLM), a real estate consulting firm.

According to SK Sayal, chief executive officer and director of Delhi based Alpha G: Corp Development Private Limited, the segment also lacks seasoned players. “Since service apartments require more facilities that can be offered over a period of time, ranging from 15 days to over six months, there are not many specialists in the industry. As compared with global markets, India still lacks dedicated service apartment providers and hence, hospitality players are complementing it with their hotels. Even our upcoming hotel project in Ahmedabad might complement service apartment need in the market,” points out Sayal.

Ahmedabad-based Neesa Leisure, which operates service apartments in Gurgaon and Jaipur, is also wary of the market. “We have a couple of properties in Ahmedabad and one in Gandhinagar. However, another service apartment is yet to be planned,” says Arvind Gupta, managing director of Neesa Leisure Limited. Industry estimates reveal that the investment in service apartment is over Rs 20 lakh per room.

Source : http://www.indianrealtynews.com/real-estate-trends/decline-in-demand-of-service-apartments.html