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

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

Duet India Hotels Invests $12M In Hyderabad VentureDuet India Hotels Ltd (DIH), the private equity firm of UK-based Duet Group, has invested $12 million in a five- star upscale hotel project in Hyderabad. The project, which comprises 210 rooms, is being developed at Gachibowli suburb, close to the IT district, of the city at a total investment of $26 million. The company will soon invest another $25 million in a hotel project in Bangalore

Duet India Hotels, which is the investor and developer of the project, will infuse the remaining amount through debt. The company has already bought the land from L&T Phoenix Infoparks for the Hyderabad project.

It is yet to finalise a hotel partner for the project, Dilip Puri, CEO of Duet India Hotels, told VCCircle.

Across five projects, the company has invested $47 million so far from its $166.5-million fund. Earlier, it has invested in projects in Jaipur, Pune, Ahmedabad and Indore. The Jaipur project is already operational and is run by Sheraton Hotels & Resorts under the brand name, Four Points. The Pune project will be operational by September 2010 followed by Indore and Ahmedabad projects in January and March 2011, respectively.

The company has also completed due diligence for two more investments, one each in Lucknow and Nashik. “We have completed the due diligence for two other projects, and will bring in equity in the next one month. These are smaller projects having equity of $3 million each for developing 3-star hotels of 100 rooms in each,” added Puri. “We are about to conclude a project at Whitefield in Bangalore, and will invest equity of around $25 million,” he said.

By the end of this calendar year, the fund will complete investments of $78 million equity across eight projects. Duet India Hotels, which has raised the fund from foreign institutional investors, plans to raise more equity for the fund and go for an initial public offering in the next two years. “We plan to raise more equity for the same fund and would be looking to do an IPO in a year-and-a-half or two years,” Puri said.

Apart from DIH, Duet Group runs another fund in India called South Asian Real Estate, which has been investing in residential projects.

Source:http://www.vccircle.com/500/news/duet-india-hotels-invests-12m-in-hyderabad-venture

Big Homes Regaining Demand

Two and three bedroom homes, which commanded high popularity among home buyers from Pune in pre-meltdown times, have made a comeback. The last three months have demonstrated that the aspirational buyer is returning to the residential market again to check out developers’ sites in search of good deals, a report by real estate research and advisory firm Jones Lang LaSalle Meghraj (JLLM) said on Wednesday.

In the twists and turns realtors took during the recession, a major shift was seen from the large size homes in the 1200-1600 sq ft area bracket to one bedroom and studio units in the “affordable” category. The general buyer preference has once again evolved to 2-3 BHK flats, the most popular price tags falling within the range of Rs 25 to 35 lakh, the report said.

According to the report, projects that were put on indefinite hold during the financial crunch are now seeing the light of day, with construction once again on a war footing across the city. Projects that are due to be launched within the next six months are being advertised heavily. For projects to be launched within the festive season, developers are not offering freebies and esoteric incentives, but are focusing on price discounts for limited periods, the report added.

“The slowdown has brought about residential space affordability and availability in areas that were previously out of reach for middle-income buyers. Due to reduction in pricing, residential property buyers now have a choice of attractive deals in preferred areas,” Mohammed Aslam, head of Pune market for JLLM said. Apart from a resurgence in positive sentiments, this renewed demand can also be attributed to the fact that housing finance institutions have brought down home loan interest rates to 8-8.5 per cent on fixed interest loans for three years, which stands in marked contrast to the 10-11 per cent that prevailed just six months ago, the report said.

Lalit Kumar Jain, vice-president of Confederation of Real Estate Associations of India (Credai) said the pent-up demand for homes has begun coming back to the market as there is an improvement in the buyer sentiment in the wake of better economic indices. “The feeling of uncertainty in buyers’ minds is reducing and stability is returning. We see demand picking up for property in the Rs 30 lakh -Rs 1 crore price bracket. On either side of this bracket there were always buyers,” Jain elaborated. Vice-president of Credai Pune, Rohit Gera, said there are other factors responsible for the renewed interest in property buying, apart from conversion of pent-up demand. “The increased feeling of job/income stability and the realisation that the prices have finally bottomed out are driving the buyers,” Gera observed.

Aslam said on the downside however, there are first stirrings of price escalations. “Based on the fact that the demand revival is still in its infancy, this represents a worrisome scenario which seems to indicate that the slowdown did not deliver a sufficiently convincing message,” Aslam noted, indicating that owing to the price-conscious buyer profile that generally defines Pune, demand for residential spaces will only continue to grow as long as rates remain rational. Gera said the supply in 2-3 bedroom space will be limited as the developers who were simply not there in the below 1,300 sq ft units game had held back their schemes. Projects in this category which are on hold will roll and more will be planned leading to price stabilisation, he explained.

Source : http://www.indianrealtynews.com/real-estate-trends/big-homes-regaining-demand.html

Indian Residential property prices rise 15%

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

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

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

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

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

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

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

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

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

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

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

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

Nyati Group forays into hospitality business

Nyati Group, a Pune-based real estate developer, has forayed into the hospitality business by setting up the Corinthians Boutique Hotel. Nyati Hotels and Resorts, a SPV floated by the group for this venture, has invested Rs 120 crore in the hotel. The 120-room hotel, which is located on a hill top, has been built in a Moroccan style with Greco-Egyptian elements of architecture.

The hotel has Brew House pub with a brewery, where 2,00,000 litres of fresh beer can be produced. There are plans to launch another property with 60 spa villas at Khadakvasla and build a second boutique hotel on the Pune-Bengaluru highway.

Source:http://www.hospitalitybizindia.com/detailNews.aspx?aid=6399&sid=1

Duet India Hotels eyes expansion

UK-based investment group Duet’s Indian hospitality arm Duet India Hotels is looking for more land to expand its portfolio and add more than 1,300 rooms by the end of this fiscal.

The group plans to develop 20- 30 mid- scale and upper middle segment hotels with around 5,000 rooms in the next two to three years. The company has recently signed a franchise agreement with Starwood Hotels & Resorts Worldwide to open the Four Points hotels by Sheraton.

The company, which opened its first property on October 1 in Jaipur, a 115- room four- star hotel, is developing four such properties in Ahmedabad, Hyderabad, Indore and Pune.

Dilip Puri, chief executive officer ( CEO), Duet India Hotels, said, ” The five properties including Jaipur is worth around Rs 500 crore. In these, we would have around 882 rooms. We plan to reach to 1,500 rooms by the end of this fiscal.” ” For this kind of expansion, we are looking for more land. As soon as we acquire land, we can start building. We have already acquired land in Hyderabad for developing a property similar to our Jaipur property. We are also looking at other Tier- II cities such as Lucknow, Nasik, Bangalore and Nagpur.

Bangalore would be more of a brownfield development. Among the metros, Chennai is also our target.”

Source : http://indiatoday.intoday.in/site/Story/64668/Business/Duet+India+Hotels+eyes+expansion.html#

Times ‘Homes for All’ Property Expo

PUNE: In an effort to cater to the demand of affordable homes, The Times of India has launched a special edition property exhibition, The Times  Homes for All Property Expo.

Times Homes for All’ Property Exhibition is slated to be a one-stop-shop for housing requirements with a special focus on affordable housing and budget homes. The exhibition will be held on Saturday, October 3 and Sunday, October 4 at Hotel Pride, next to Rahul Cinema, Shivajinagar.

The property exhibition has been conceptualised with the aim of providing a platform to the builders and developers in Pune who have projects catering to the middle and upper middle class. Projects spread over the entire city suiting the needs of this segment of home buyers will be showcased at this exhibition.

The exhibition will be open from 10.30 am to 7.30 pm on both days. All are cordially invited to visit the exhibition.

Source : http://timesofindia.indiatimes.com/news/city/pune/Times-Homes-for-All-Property-Expo/articleshow/5079196.cms

Residential property prices rise 15%

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

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

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

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

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

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

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

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

Indian Landscape goes greener

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

City Corp launches second-hand flats biz in Pune

Real estate developer City Corporation has entered second-hand apartments business through an apartment exchange scheme meant for its future customers who would exchange their present house with an apartment in the firm’s Amanora Park Town project in Pune. City Corporation would buy old apartments from customers, renovate them and sell-off through an established network of real estate agents.

Interestingly, the firm does not say, the move comes out of the urgency of selling the apartments in a slumped real estate regime. “We are looking at this exchange offer as a business opportunity along with a value-added service for our probable customers,” said City Corporation managing director Aniruddha Deshpande.

City Corporation is developing a 400-acre township named Amanora Park Town in Pune, which would have 12,000 apartments in different categories. As per this scheme, a flat owner, who wishes to buy an apartment at Amanora Park Town, would hand-over power of attorney to City Corporation at a mutually agreed price. This amount would then be considered as down payment for the new apartment booked in Amanora Park Town and the flat owner would continue to stay in the old flat till the new flat gets ready.

The scheme has been made available for residential flats located within Pune city that are not more than 20 years old. “At a given time, we have planned for a capacity of buying up to 250 old flats. For this, we have made a provision of approximately Rs 75 crore. The process would work like an inventory where we will buy old flats and sell them off on a regular basis. And through these deals, we expect to generate revenue worth Rs 170 crore from Amanora Park Town,” Deshpande added.

When asked, if the slump in the real estate sector had promoted the company to start this scheme, Deshpande said “No”. “We had recently announced 300 new apartments in the township out of which, more than 250 have been sold. there are some 2,000 apartments presently under construction and we have sold over 1,200 as of now. And the bookings are coming in fast,” he added.

City Corporation has already established tie-ups with certain real-estate agents involved in the second-hand flat business. “The scheme offers people an opportunity to upgrade their living standards with the trouble process of selling off their present apartment. Also, it opens a new business segment of second-hand or pre-owned apartments,” he stated.

http://www.business-standard.com/india/news/city-corp-launches-second-hand-flats-biz-in-pune/73370/on

Pune readies for first eco-homes

Pune was amongst the first cities in the country to prescribe certain attributes for eco-friendly housing when, in early 2007, the Pune Municipal Corporation adopted the norms jointly drafted by it in consultation with the Science and Technology Park and the International Institute for Energy Conservation.

As an incentive to purchase such homes, the PMC also announced a 50 per cent discount on the annual tax payable on the property.

The first to get off the ground under the new eco-housing norms was Palash, a 200-home project at Wakad promoted by city-based real-estate developers Vilas Javdekar Eco Homes.

The scheme, which offers a choice of two and three BHK units ranging from 950 sq.ft to 2,200 sq.ft totalling nearly 3.5 lakh sq.ft of built-up space, will be given for possession by October, becoming the first clutch of eco-homes in the region that will be ready for occupation. Broadly speaking, all eco-friendly projects are built on four essential elements, the four Rs so to say, “Reduce, Reuse, Recycle and Renew.” The process of harnessing and maximising natural resources begins at the planning stage itself.

“The site layout has to take into account things such as the direction of natural flow of water, positioning and design of buildings to make the most of natural light, ventilation and circulation,” Managing Director, Aditya Javdekar, explains.

Talking of the specifics at Palash, he says, “In addition to rain water harvesting, to conserve water, the project has dual plumbing. Water that is used for human contact gets re-cycled into the flush tank, while that from the flush tanks is sent to the sewage treatment plant and once treated, is used for car wash and gardening.”Another highlight here is the solid waste management. Sewage and bio-degradable garbage from all the units will be sent to a bio-gas plant, and the methane generated can be used as fuel, Javdekar says. “This can be used to pump water to the overhead tanks or even to run the generator,” he says, pointing out, however, that the eventual use will depend on the quantum of waste generated.

The buildings in the Palash project, constructed on the principles of bio climatic architecture that reduces heat, are energy-efficient. All the lights, while being traffic and time-sensitive, are so positioned to maximise benefit. The outdoors have been greened using natural flora. Fly ash bricks have been used for construction.

Worth the extra cost

According to Javdekar, the cost of the special features in eco-friendly homes add up to a 10 per cent mark-up on the buying price.

The price tag at Palash, “which has been sold out 95 per cent, is Rs 3,000 per sq.ft when other projects in the area are being marketed at Rs 2,000-2,500 per sq.ft.

“However, the long-term cost savings on utilities make it financially worthwhile,” he asserts, adding that break-even point is four to five year after one moves in. To take the concept of eco-friendliness a step further, and to ensure that its green homes remain green, the company has formed Vilas Javdekar Eco Utilities, a new, professionally managed venture that will maintain all the eco features at its projects.

“We will offer free consultancy to those who want to migrate from non-green to green,” Javdekar says, adding that its services will subsequently be offered to other residential and commercial complexes on a non-profit basis.

The brief will be maintenance of solar and wind hybrid systems, sewage treatment/bio-gas plants, time-sensitive lighting systems and garbage collector systems.

A year on, it will also become a Renewable Energy Services Company for societies that do not have eco features for water heating and common lighting but wish to have them. The company will invest in the required infrastructure and provide hot water and electricity for lighting generated by non-conventional means, at the cost same as state electricity companies.

The developer is also launching Yashwant, its first eco-housing project in Kolhapur comprising two BHK flats and bungalows.

Source : http://www.thehindubusinessline.com/iw/2009/09/13/stories/2009091350621500.htm

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

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

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

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

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

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

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

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

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

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

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

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

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

Hospitality giant on land hunt for city address

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

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

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

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

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

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

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

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

Mumbai builders bag Rs 2,000 cr project near Pune

Days before the election code of conduct came into force on August 31, the Pimpri-Chinchwad New Township Development Authority (PCNTDA) awarded a Rs 2,000-crore township project to a consortium comprising Mumbai-based DB Realty, Man Infrastructure and Ajwani Developers.

The land is spread over 130 acres in Sector 12 at Bhosari, Pimpri-Chinchwad, near Pune and the development is to be carried out as a Public Private Partnership (PPP). Proposals were invited by the authority from various builders in June and by the last week of August the consortium bagged the project.

Real estate sources have expressed surprise at the lucrative project being pushed through within two months. Others in the fray included Tata Motors, Mahendra Estates, Panchsheel (Pune) and a consortium comprising Vijay Associates (Wadhwa), Goel Ganga and J Kumar Infrastructure.

A developer who lost out said, “Bids were kept unopened for over two weeks. For instance, in the MMRDA, bids are opened in front of all the bidders. You submit a bid at 12 noon and they are opened by 3 pm in the MMRDA.’’ DB Realty chairman Vinod Goenka said that the consortium had bagged the project a week ago.

“There will be a total of 12.5 million square feet of development. Out of this, we will construct and hand over 3.5 million square feet to the Pimpri-Chinchwad authorities. The remaining nine million square feet will be retained by the consortium as part of the free-sale component,’’ said Goenka.
The developer plans to use 70% of its share in the free-sale component to construct middle-income housing and the remaining for commercial purposes. “We are looking at a profit of Rs 300 crore,’’ claimed Goenka. PCNTDA was mandated by the state government to develop about 43 sq km to house a population of five lakh citizens.

It has so far acquired and developed 10.8 sq km. The area has been developed in sectors comprising housing and commercial uses. In the current project, PCNTDA will provide 53 hectares (130 acres) to the developer with an applicable Floor Space Index of 2.5. “The project is envisaged to be developed as an integrated township with excellent basic infrastructural facilities like good roads, adequate water supply, an efficient sewerage system as well as schools and hospitals,’’ said the tender document.

The developer will prepare a master plan for the land and construction of infrastructure. It will hand over 5,040 low-income houses under the Basic Services for Urban Poor scheme of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) on part of the land and PCNTDA will then pay a fixed cost to the developer for the construction of these housing units. The developer will give Rs 50 crore to PCNTDA as cost of land before starting the project and providing basic amenities like roads, electricity and water supply. The expenditure on the project and basic amenities will be around Rs 417 crore. The PCNTDA will provide Rs 225 crore on a PPP basis to the developer (which includes Rs 123 crore as grants from the Union government).

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

Real estate moves towards industrial hubs in tier 2 & 3 cities

The demand fundamentals of India are now focused around cities that have sufficient economic activity, be it industrial, service sector-driven or  incentive-driven programs by the State Government. In Gujarat, which has seen considerable industrial progress, cities of Ahmedabad, Surat and Vadodara come readily to mind.

Baddi in Himachal Pradesh and Pantnagar and Rudrapur in Uttaranchal attracted a lot of residential developers, thanks to government policies. In the South, Coimbatore, Vizag and Kochi emerged, either thanks to a large investor segment or as the outcome of sufficient economic activity. Towards the West, Pune, Nasik and Nagpur are noteworthy in this context.

In all cases, developers positioned their development close to industrial hubs, targeting a totally different price segment. While this was a worthy ambition , it was poorly conceived as a plan since many of them did not factor in State Government-level regulatory challenges such as local municipal laws.

Source : http://economictimes.indiatimes.com/Markets/Real-Estate/Realty-Trends/Real-estate-moves-towards-industrial-hubs-in-tier-2-3-cities/articleshow/4970256.cms

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

RE/MAX India Expand its Area of Operation in 7 More Regions

RE/MAX India, the master regional franchisee of RE/MAX International in India, has expanded its areas of operations in 7 more regions. The company has appointed regional owners for seven new regions which include Bangalore, North & South Gujarat, Rest of Tamil Nadu, Delhi NCR, Chandigarh and Pune. Mr. Samir Chopra, head of RE/MAX operations in India, will retain the Delhi/NCR region in order to maintain first hand experience with the trade. With this development, RE/MAX India is nine regions strong in India within a short span of 4 months into operations.

RE/MAX recently forayed in India with the mission of organizing the Real Estate brokerage industry. The company is rapidly expanding its presence and is planning to establish its operations throughout the country within the next few years. Expressing his delight on this development, Mr. Samir Chopra, CMD RE/MAX India said – “I’m extremely happy and excited about the way things are shaping up. We have found like minded people, who share our values and our vision.”

“RE/MAX India with its network of brokers, authentic information and world class standards of operations will certainly infuse transparency in this sector. The organization of the highly fragmented Real Estate sector will not only solve the woes of the consumers but would also generate many entrepreneurial opportunities in the industry,” Mr. Chopra added.

Source : http://www.indianrealtynews.com/real-estate-india/remax-india-expand-its-area-of-operation-in-7-more-regions.html

B’lore realtors scout Goa, Mumbai for new projects

MUMBAI: With the real estate sector story looking up in large parts of the country, Bangalore-based realty companies are now exploring options to  enter new markets. Among the interested players are Puravankara Developers, Sobha Developers and Nitesh Estates, three of Bangalore’s large real estate companies. It is learnt that these players are drawing up plans to invest in cities like Mumbai , Goa and Pune.

Provident Housing, a fully-owned subsidiary of the Puravankara Group, is said to be in talks with individual land owners in Mumbai to buy land in three locations for affordable housing projects. An industry tracker said Provident Housing is largely looking at western Mumbai for this venture. Ashish Puravankara , director, Provident Housing confirmed the plan to enter the Mumbai market through affordable housing projects though he declined to share details on locations. “We have not bought any land yet and are exploring options in Mumbai,” he said.

The cause for concern, according to analysts, comes from the fact that companies in the sector are highly leveraged. Purvankara , for instance, had a debt of Rs 582 crore on its books at the end of FY09 even as company officials maintained that the the debt-equity ratio at 0.56 was favourable.

Like Purvankara, Sobha Developers is also keenly looking at Mumbai and Pune. A source in the industry said that the company is close to sealing a deal with another developer for an affordable housing project. JC Sharma, managing director, Sobha Developers, when contacted said, “Mumbai is an attractive market and we are certainly interested in it though nothing concrete has been decided so far.” After a recent debt restructuring exercise, Sobha has reduced its debt from Rs 1,900 crore to Rs 1,450 crore. “We are at a comfortable position as far as debt is concerned,” he added.

Joining Purvankara and Sobha is Nitesh Estates which has already bought a large tract of land in Goa for a high-end project . “We would be developing higher end villas in Goa,” L.S. Vaidyanathan, Director, Nitesh Estates. The company is planning to raise around Rs 1,200 crore through an infusion of private equity (PE) funding and a planned public issue. Nitesh is also said to be interested in the Mumbai market.

The consensus is that money will not be easy to raise at a time like this. “It will be interesting to see how these companies arrange for the funds for these projects. While PE money is hard to come by, it will not be easy to take the capital markets route,” said a consultant at an international real estate firm.

Source : http://economictimes.indiatimes.com/News/News-By-Industry/Services/Blore-realtors-scout-Goa-Mumbai-for-new-projects/articleshow/4905366.cms

Changing Real Estate Scenario in Tier 2 and Tier 3 Cities

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Hiranandani may tie-up with Maha govt for affordable housing

Real estate developer Hiranandani Constructions is looking to enter the affordable housing segment and may enter into a public private partnership (PPP) with the Maharashtra Government for the same, a top company official said.

“We are certainly looking at opportunities in cluster/rental housing. Although we haven’t started talking to MMRDA (for public private partnership) for low-income housing, internally we have started making plans,” Hiranandani Constructions Managing Director Niranjan Hiranandani told reporters on the sidelines of a conference here.

The company is also exploring the markets of Bangalore, Nashik, Panvel, Thane and Pune among other cities for the affordable housing project, he added.

The State Government is focusing on the rental housing model and aims to have three lakh flats/tenements ready in the next three years through the PPP model, Government of Maharashtra, Additional Chief Secretary and Mumbai Metropolitian Region Development Authority (MMRDA), Metropolitan Commissioner, Ratnakar Gaikwad, said.Hiranandani said he does not foresee real estate prices picking up at least till about a year.

“I don’t see prices rising in the next 3-12 months. Housing demand is expanding rapidly but prices right now are stagnant,” he said.

Prices may increase steadily after a year as the market takes away ready products, he said.

“In five years, there would be a 100 per cent jump in demand over that which existed during peak times before the meltdown,” Hiranandani added.

Source : http://www.business-standard.com/india/news/hiranandani-may-tie-upmaha-govt-for-affordable-housing/70001/on

Big-ticket land buys on realty radar again

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

5% to15% Mall Vacancies in Major Retail Destinations

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

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

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

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

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

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

Ackrutis “Just Perfect Homes” receives Overwhelming Response

Sales touch the 1000 mark

* Luxury homes at Just Perfect Prices

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

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

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

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

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

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

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

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

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

The Pune Dream Home Put on Hold

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Bennett Coleman picks stake in Lavasa Corporation

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

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

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

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

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

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

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

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

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

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

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

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

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

Oakwood Worldwide plans 15 operational properties in India by 2012

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

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

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

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

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

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

Ireo to invest $500m in Indian realty

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

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

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

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

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

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

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

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

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

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

Real estate survey shows silver lining for market

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

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

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

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

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

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

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

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

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

Budget hotels, serviced apts sprouting fast

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Wadas of Pune ripe for redevelopment

R. Savitha

Residents of Pune’s wadas, the 16th century-style tenements in the heart of the city, are fast waking up to the need to do something about their crumbling edifices. That redevelopment of wadas has to happen, and fast, has hit both the tenants and the owners alike.

Repairs needed

The Pune Municipal Corporation (PMC) records that of the nearly 18,000 properties located in Kasba Peth, Budhwar Peth, Shaniwar Peth, Nana Peth, Bhavani Peth and Narayan Peth, around 8,000 are very old and need immediate repairs.

Many are considered dangerous to live in but repairs have not always been possible because of technical and legal issues, including ownership issues of a majority of the wadas. Even if a tenant wants to repair the wada, it is necessary for him to get a no-objection certificate from the owner, who would invariably refuse to give it.

A wada is a typical 16th century construction style, originally meant for the society’s elite, where joint families could live in the many rooms on the same premises.

Over time the same style of construction was practised allowing for many families to live in as tenants and share common utilities such as toilets and bathrooms.

Mr Shantilal Kataria, Chairman and Managing Director of Aditya Developers, is of the view that wada redevelopment would help Pune and although late , the builders would welcome the idea. He said the idea of redevelopment had been on in Pune for a long time, and as recently as two months back the Promoters and Builders Association of Pune (PBAP) and the Confederation of Real Estate Developers Association of India (CREDAI) had met with Mr T. C. Benjamin, the State Urban Development Department (UDD) Principal Secretary, and had put forward the proposal.

For overall betterment

Mr Benjamin had wanted Pune to follow the footsteps of Mumbai where old building had been redeveloped, helping the owners as well as the tenants alike. “Eight years ago, we used to develop wadas within the given FSI, but this would happen only when the tenants as well as the owners had an agreement.

Not all wadas in Pune are heritage structures and most of the wadas do not get redeveloped as the tenants and owners are invariably at loggerheads.

But there are plenty of wadas which only require redevelopment but the PMC has to give us a good FSI, else it would not be financially viable.”

If a wada is redeveloped, it is for the betterment of both the tenant as well as the owner, for none of them alone can look at repairs or maintenance of the dilapidated wada.

According to builders and developers, hardly 20 per cent of these wadas are in a liveable condition. These wadas were made out of clay, bricks and wood, which have deteriorated over the years, due to lack of maintenance. As the rents too are pretty low and cannot be raised due to the Rent Act, the owners too are not interested in maintenance .

Mr K. P. Baney, Chairman and Managing Director of Devi Constructions, noted that all the builders and developers would like to help in the development of the wadas.

There are many concessions being offered and the area has not been developed so far. The wadas should be redeveloped as a mix of residential and commercial complexes. As the people have been staying there for a long time, development of residential building would be a priority, but commercial space should also be allowed for viability.

He noted that Devi Constructions had been approached about three times for redevelopment but it has always got deferred because the residents did not cooperate.

The owners are looking at the financial aspect as well as getting more built-up space in the same area, he added.

Incentive FSI

Mr Kishore Wani, Director of Amit Enterprises, notes that that redevelopment of the wadas had begun eight years ago — being built up as apartments with an FSI (floor space index) of 1.5 and for commercial space at an FSI of two. But commercial buildings could come up in the place of a wada only if the wada was on a 30 ft road, where an FSI of two was possible.

If there are a large number of tenants the limit of 1.5 FSI is not feasible for redevelopment, he saidThe State Government needs to bring in ‘incentive FSI’ in Pune as it did in Mumbai.

Incentive FSI is the component of FSI that can be used for free-sale. The incentive FSI admissible ranges from 50 to 75 per cent of the total area of amalgamated plots.

Ms Punam Gadgil, resident of Sadashiv Peth, used to live in a wada which had been around since the time of her great grandfather.

The area was 675 sq.ft, consisting of six rooms. Today, she owns an apartment of 1,030 sq.ft of two bedroom-hall-kitchen. The redevelopment happened, she said, as a couple of more tenants mutually agreed to leave.

In May 2008 they handed the wada over to the local builder and this September she will be shifting into her new home.

Source : http://www.thehindubusinessline.com/iw/2009/07/05/stories/2009070550571500.htm

Luxe India to build portfolio of 12 properties in two years

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

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

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

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

Indian cities should make space for low-cost housing

In the next six years, urban India needs to build at least 10.5 million houses to meet the demand for housing that accompanies rising levels of urbanization. With the financial crisis bringing affordable housing back on the radar of promoters and builders, it is worthwhile to estimate the extent of unmet demand for low-cost houses.

As much as 65% of the demand in India’s top 112 cities is for houses measuring less than 1,000 sq. ft. This translates into approximately 6.8 million new homes. Interestingly, about 70% of the demand would be for houses with two rooms or less. This means 7.4 million new houses need to meet these specifications. This is because 90% of the urban households have incomes under Rs5 lakh per annum.

Thus, the demand for majority of the urban housing would be in this category. The rising slum and squatter settlements in cities is a clear sign that this demand is not being met through formal housing stock.

Greater housing demand originates from two sources—those who have arrived earlier and residing in makeshift tenements, shacks and slums, and those who are expected to migrate into these areas. The requirements are different. Typically recent in-migrants require smaller areas, but as they stay on, their families join them and expand, and their incomes and wealth also increase. This translates into requirements for marginally larger carpet areas.

The cities that have the largest requirement for such housing are those that attract migrants—Mumbai and New Delhi and their surrounding areas, Bangalore, Pune, Surat, Coimbatore, etc. These cities either saw large migration in the recent past but are slowly stagnating (for instance, Mumbai), or continue to have great levels of in-migration (New Delhi, Surat and Pune, for example). Either way, these cities are already bursting at their seams.

The need to expand opportunities in other cities is paramount, as is the need to get a better grip on land utilization within these cities. Typically, government bodies have almost monopolistic control over land, and this is a serious problem as land management is riddled with bureaucracy and poor governance. What is needed is a much more aggressive and forward-looking approach that looks at the requirements for each city specifically. Ensuring there is regular availability of land for low-cost housing within a city is among the first and foremost steps.

The supply side constraints for provision of low-cost housing are well known and these problems have been made worse due to the rapid increase in real estate values.

As a result, the largest action in urban housing has been in suburban areas surrounding the large cities— rural Bangalore, Ranga Reddy near Hyderabad, the Gurgaon, Noida, Faridabad and Ghaziabad quadrilateral surrounding New Delhi, and Howrah and North and South 24 Parganas near Kolkata are well-known examples. The bulk of new housing is occurring on converted agriculture land around these cities.

This need not have been the case, had local governments been more responsive to emerging requirements. Unfortunately, unplanned and unstructured development is a hallmark of urban India and is unlikely to change very soon. Demand Curve is a weekly column by research firm Indicus Analytics Pvt. Ltd on consumer trends and markets.

Source: http://www.livemint.com

Expo offers affordable homes in eastern Pune

PUNE: Best Of East’, a property exhibition that displays residential properties in the eastern parts of the city, has attracted house hunters in  large numbers with its promise of apartments in the price range of Rs 10.40 lakh to Rs 13.50 lakh.

The exhibition, organised by the Confederation of Real Estate Developers’ Associations (Credai), Pune was inaugurated by its president Satish Magar on Friday. The exhibition has 36 builder-developers offering over a 100 projects, a Credai press communication said.

This is the second in a series of area-specific real estate exhibitions Credai has planned to bring together home buyers and developers. The projects on offer at the current expo comprise a wide range of apartments in the affordable to premium categories, their status ranging from under-construction to ready possession. The properties are located in Hadapsar, Mundhwa, Kondwa, Koregaon Park, Kalyaninagar, Dhanori, Undri, Wagholi, Vimannagar, Kharadi and Mohamedwadi, among others.

The exhibition has seven projects that have apartments in the price range of Rs 10.40 lakh to Rs 13.50 lakh. “There are varied needs that buyers have and while we see the top-end apartments not largely affected by the market slowdown, we saw a need for affordable housing,” Magar stated.

The exhibition will be on till Sunday at the Weikfield IT Park near the Aga Khan Palace on Nagar Road.

Source : http://timesofindia.indiatimes.com/Cities/Expo-offers-affordable-homes-in-Pune/articleshow/4625835.cms

CREDAI Pune to launch second property exhibition today

With the better than expected response to their previous property exhibition, the Confederation of Real Estate Developers Association of India, Pune (previously known as PBAP) will launch its second of the series of 8 property exhibitions- the Best of East starting from June 5 to June 7, at Weikfield IT Park, Viman Nagar, Pune.

“At the last area specific property exhibition, the Association had over footfalls that later converted to bookings in a span of one month,” says Anuj Bhandari, chairman exhibition committee, CREDAI (Pune), ” we are very happy with the response to our last exhibition. We had 450 bookings as a result of the Best of West. People’s sentiments about home buying is changing as is evident from the response.”

The reasons for this, says Bhandari are several.

” Many factors are contributing to this upward movement in home sales. First and foremost the prices have rationalised. Add to this the push the RBI has given to the realty industry by improving liquidity and reducing interest rates. “

Source : http://www.indianexpress.com/news/CREDAI-Pune-to-launch-second-property-exhibition-today/471601

WHERE SHOULD YOU INVEST

The economic slowdown has brought greater rationality to real estate prices. With prices correcting in overheated pockets of metros and tier II cities, residential real estate has become more affordable and the scales have tilted in buyers’ favour.
 
While an investment in residential property may yield lower returns than an investment in commercial property, it is safer, especially if the property is chosen wisely. For city-based small investors, studio apartments or 1-BHK properties near known demand drivers such as IT hubs, large manufacturing units, and educational institutions offer good return potential. Smaller-format housing continues to have steady demand, especially in metros where company staffers and students seek cost-effective housing on rent. Rental accrual on such properties becomes a steady source of income, while the capital value invariably appreciates over time. The returns from commercial real estate are higher, but so is the risk. Such properties are also more expensive.

Let us now turn to a city-wise survey of residential areas that offer good investment potential even in today’s bleak market scenario. While other areas in these cities are headed for correction, these locations will hold their own and might even offer positive returns.

MUMBAI
Mumbai witnessed some of the highest prices in the residential market till the beginning of this year. Clearly, those prices were not sustainable since the number of buyers for super-luxury houses is shrinking. Central Mumbai (specifically Lower Parel and Worli) witnessed the highest price escalation. The slowdown has affected these areas.

The current slowdown has curtailed demand from investors. Most of the demand today comes from end-users. In Mumbai, there is no dearth of those desperate to buy affordable housing. Three areas of Mumbai offer such housing. These areas are likely to sustain their prices, while others are likely to witness a correction.

Vasai-Virar sub-region. The extended western suburbs are well-known for budget housing. The key economic drivers in this region are MP SEZ by DHL, Biotech SEZ and IT SEZ by Mahindra. Connectivity to this area is likely to improve due to the introduction of additional suburban trains from next year. Prices range from Rs 2,500-3500 per sq ft.

Area adjoining Panvel. This region is benefiting significantly from infrastructure enhancements such as the upcoming airport, the Trans-Harbour Link, a railway terminus, and the mono rail. Mega SEZs by Reliance and others are also expected to have a positive impact, as is the expansion of JNPT. Many developers have already initiated large township projects in this region. Prices range from Rs 3,000-3,800 per sq ft.

Bandra-Khar area. Those hunting for prime properties focus on this area. Its connectivity is expected to improve due to the Bandra-Worli sea-link, the proposed Metro Line 2, and the upcoming Santacruz-Chembur Link road.

This region has an elite profile due to the availability of quality infrastructure: shopping, healthcare, education and recreation facilities. Developers are working on a number of redevelopment schemes in this area. Prices range from Rs 18,000-25,000 per sq ft.

DELHI
Currently, Delhi’s suburban residential market is witnessing a definite slowdown. Construction on several new projects has come to a halt, and rates of flats that are ready-for-possession have stabilised. Even within Delhi rates are currently stable. Some areas, however, hold better prospects for appreciation over the medium- to long-term.

Gurgaon-Dwarka road. Areas around the 150-metre road that will eventually connect Gurgaon to Dwarka — specifically, Sectors 103 to 111 — have significant growth potential. As the area develops, it could offer a 5-7 per cent annual appreciation even in the current scenario while over the next three years you could expect an appreciation of 30-35 per cent. Much will depend on the ability of developers to raise cash for completing their projects. Currently rates range between Rs 2,200-2,300 per sq ft.

PUNE
With Talegaon not picking up in the anticipated manner, Pune’s new growth corridor now encompasses Kharadi and Nagar Road. This can be safely regarded as the most lucrative real estate investment zone for 2009-2010.

The key demand driver is the Eon IT Park, which offers 4 million sq ft of prime IT space. It is currently in the final stage of completion. Other IT SEZs and commercial developments are also on the anvil. Proximity to revamped airport is another point in its favour. Due to the opening of VIP Road that connects Viman Nagar to the airport, connectivity has improved. The opening of five-star hotels such as JW Marriott, Grand Hyatt and Leela in the near future will add further gloss to the area. Moreover, at Rs 2,700-3,500 per sq ft, the area appears reasonably priced.

MOHALI
With residential rates in Chandigarh having gone through the roof in the last few years, there appears to be little scope for appreciation currently. Because Chandigarh is a planned city with a cap on density of population, the potential for development is limited here. For this reason the city could not partake of the IT boom of recent years.

Nearby Mohali, however, presents a sharp contrast. The area named Greater Mohali, which encompasses the fast-developing Landra-Mohali Road area, is promising. Pan India developers such as Unitech, Emaar-MGF, Ansals and DLF have snapped up land here for developing mega, multi-sector residential hubs.

The key drivers of growth here will be the international airport, Indian Business School, and the 120-acre township with IT SEZ.

The investment opportunity here lies in land, which is currently available for Rs 12,000 to 14,000 per sq yd. In three-four years, land rates in these areas could even surpass rates in central Mohali, which are currently in the range of Rs 30,000-35,000 per sq yd.

CHENNAI
Chennai’s residential real estate scenario is depressed currently. Developers with projects along the once-booming IT corridor are set to reduce their rates by as much as 20 per cent. However, the Mogappair-Porur composite region continues to hold mid- to long-term potential. This location is close to the prime residential catchment of Anand Nagar and also to the railway station and the bus terminus. The fact that it is not near the IT corridor also increases its potential. Rates here range from Rs 2,800 to 3,000 per sq ft.

BANGALORE
Bangalore is feeling the brunt of the IT slowdown. However, established suburban areas like Koramangala, Outer Ring Road and Bellari Road continue to be good investment destinations. As in the case of Mumbai, appreciation is not the criterion in the current scenario: these are the areas that will sustain their prices while others are likely to correct. Mysore Road, which encompasses the upcoming NICE corridor, has potential owing to good connectivity with Mysore. Koramangala. It’s close to Electronic City. Residential demand is high here while the scope for new developments is nil. Rates range between Rs 7,000-8,000 per sq ft.

Outer Ring Road and Bellari Road. These are close to IT hubs. Outer Ring Road is close to Whitefield. New developments are coming up on Bellari Road, which is also close to the Devenhalli airport. The rates here range from Rs 3,500-5,500 per sq ft.

HYDERABAD
Hyderabad continues to hold its own even in the current scenario, though significant growth is now restricted to specific areas. Residential real estate investment growth in Hyderabad is expected to centre primarily around Gachibowli and Tellapur owing to their proximity to the financial district, which is where the highest growth of IT and other commercial projects is happening. These areas could emerge as the next central business district (CBD) over the next ten years. Proximity to Outer Ring Road (Phase 1 in advanced stage and phase 2 scheduled after six months) will reduce commuting time of residents to key workplaces. Rates range from Rs 3,000-3,500 per sq ft.

While demand exists, affordability is the key issue. Location, as always, will remain an important criterion: investment destinations that are closer to the CBD and other demand drivers will do well while far-flung destinations will have less potential for appreciation. Investors with a medium- to long-term investment horizon should take advantage of the current depressed climate now and in the latter part of 2009 to hunt for bargains.

Source : http://www.google.com/url?sa=X&q=http://www.expressestates.in/full_story.php%3Fcontent_id%3D93830&ct=ga&cd=ePLxtnuuHg4&usg=AFQjCNFUfJY2P8fBFjlYdLcohcuuWUpQbg

Over 100 malls to spring up in India by end-2010: Report

Mumbai (PTI): Keen on matching supply with demand, real estate developers may spring up more than a hundred malls spread over 30-million sq ft in the country by end-2010, a report says.

“Between now and 2010, an additional 31,846,504-square feet of mall space will be created across India through just over 100 new shopping centres,” findings from a report titled ‘Mall Realities India 2010′, said.

However, 54 per cent of expected mall supply in 2008 was deferred to 2009-10, the report compiled by real estate consultancy firms, Cushman & Wakefield and Jones Lang LaSalle Meghraj, said.

“As far as retail real estate in the top eight was concerned, as much as 11-million sq ft of expected mall supply in 2008 was deferred to 2009-10, which was a reduction of 54 per cent from the projections made at the beginning of 2008,” it said.

Of the over 30-million sq ft of malls to be added by end-2010, India’s north zone is leading with a total of 14,790,000 sq ft.

“That translates into 45 malls expected in the North Zone with 24 in the Delhi NCR (National Capital Region) itself,” it said.

West Zone is the second-most prolific region in terms of additional projected mall supply of 7,438,504 sq ft through 47 malls, it said.

South and East Zones total up a projected mall space at 5,865,000 sq ft (through 29 malls) and 3,753,000 sq ft (by way of 13 malls), respectively, it said.

“Interestingly, while most projects in North, West and South Zones are in and around Tier II cities, in the East, the majority of developments are to open in or around West Bengal’s capital Kolkata,” the findings said.

The list of properties scheduled to open in this period are located across metros, mini-metros and Tier II towns, including in Delhi, NCR, Mumbai, Pune, Aurangabad, Raipur, Bangalore and Siliguri, among others.

Source : http://www.hindu.com/thehindu/holnus/002200905311051.htm

Times Property expo from May 30

PUNE: The Times Property Showcase, a prestigious property exhibition organised by The Times of India, will be held on May 30 and 31 at Le Meridien.  

With over 50 top builders showcasing around 300 projects, it is set to be the season’s biggest property expo.

The event is aimed at offering a wide range of properties across Pune under one roof. With lowered property prices and home loan interest rates, this is the perfect opportunity for buyers to zero in on their dream home. The exhibition will remain open between 10.30 am and 7.30 pm on both days.

Source : http://timesofindia.indiatimes.com/Cities/Times-Property-expo-from-May-30/articleshow/4590855.cms

Le Meridien plans to open 5 hotels in India

The French hospitality major, Le Meridien, plans to open five hotels in India in the next three to five years, a top company official said in Mumbai yesterday.
 
 ”We are looking at setting up five new properties of hotels and resorts in India adding around 1,000 rooms capacity over the next three to five years,” Starwood Asia Pacific Hotels regional vice president, Don Elliot, told reporters.

However, he has not revealed the names of the cities in which the company is interested in setting up its properties.
 
”We are negotiating with our partners and these properties will be set up in Tier I and Tier II cities,” Elliot said.
 
Le Meridien currently has eight hotels in India in Ahmedabad, Kochi, Jaipur, New Delhi, Pune, Mumbai, Bangalore and Chennai.
 
With close to 80 of its properties located in Europe, Africa, the Middle-East and the Asia-Pacific region, Le Meridien provides a strong international complement to Starwood’s primarily North American holdings.
 
Le Meridien recently opened new hotels in Bangkok, Chian Mai, Chiang Rai and Shimei Bay in China, and will open in Dallas and Philadelphia in the coming months.
 
It has also signed new hotel deals in Taipei, Xiamen, Chongqing Nan’an and Qingdao in China.
 
Le Meridien was started as an accommodation option for Air France customers to be used when they travelled to destinations across the world. The first Le Meridien property was setup in Paris in Etoile with 1,000 rooms.

In November 2005, the company, was acquired by Starwood Hotels & Resorts Worldwide Inc, one of the leading hotel and leisure companies in the world with more than 940 properties in approximately 97 countries and 145,000 employees.

Starwood ’s internationally renowned brands include St. Regis, The Luxury Collection, Westin, Le Méridien, Sheraton, Four Points by Sheraton, and the recently launched Aloft, and Element. Starwood Hotels also owns Starwood Vacation Ownership, Inc., one of the premier developers and operators of high quality vacation interval ownership resorts.

 
Source : http://www.google.com/url?sa=X&q=http://www.domain-b.com/industry/Hotels/20090523_hotels.html&ct=ga&cd=oHwoFOHo08Q&usg=AFQjCNHsb8y9_H9ryXaPz_alVqBeKu3WGQ

ABIL to pump in Rs 600 cr to set up 3 five-star hotels

The Avinash Bhosale Group (ABIL) is planning to invest Rs 600 crore for setting up three five-star hotels in Pune, Nagpur and Mumbai over the next three years.
 
The 280-room hotel in Pune will be launched by October, while the other two hotels will come up by 2011. ABIL Chief Executive Officer Sudhanshu Purohit said, “We have a strong presence in real estate and infrastructure sectors. Now, we are focusing on the hospitality segment. We already run Sun-n-Sand hotels in Pune and Goa through a joint venture company named CCPIL. Now, we are planning for three more hotels in Pune, Nagpur and Mumbai.”

While the Pune property would be operated by Westin Hotels, the hotel coming up in Parel-Mumbai would be run by the Shangrila Group. The property in Nagpur would be operated by CCPIL under the brand name ‘Sun-n-Sand’.

However, the group has delayed its ambitious five-star hotel project near Palm Beach in Navi Mumbai called Metropolice in the wake of the delayed international airport project there. The company has acquired 10 acres there for the project.

“We have slightly delayed the Navi Mumbai project because it is meant to address the requirements of the officials involved in the development of the upcoming international airport there. Once the actual work begins at the site, we will start the construction of our hotel,” Purohit said.

The company is also developing a super luxurious cold-shell residential project called God’s Blessings in Pune, where every apartment has an area of more than 5,000 square foot. “The project is nearing completion. The flats will be sold in a cold-shell manner to buyers. Later, according to the buyers’ requirements, we will complete the interiors,” Purohit said, without disclosing the project cost.

Source : http://www.business-standard.com/india/news/abil-to-pump-in-rs-600-cr-to-set3-five-star-hotels/359012/

Soon, a 30-storeyed building on Karve Rd

PUNE: City-based construction house, Kumar Builders announced the launch of the first tallest building of Pune ‘45 Nirvana Hills,’ a 30-storeyed residential complex at the main Karve Road.

Announcing the development here on Thursday, Kumar Builders CMD Lalit Kumar Jain said, “45 Nirvana Hills is a 100-metre residential complex that will offer exclusive first-of-its-kind features to home buyers. Besides, the four towers of 30-storeyed will offer home buyers the option of choosing between 2, 2.5, 3 and 4 BHK apartments.”

He said that each of the structures would have six floors of parking, two floors of amenities while the remaining 24 floors would have 422 flats altogether.

In addition, the structures will have sky lounges, one acre of sky garden coupled with world-class security systems, he added.

Jain said the booking would officially begin from Friday for flats within 70 metres of height, as permission for the remaining height was under process.

He added, “Some customers prefer to use their own fixtures and finishes, hence, 45 Nirvana will offer bare homes, for example walls with no finish, no tiles, no sanitary fittings.”

Jain added, “Customers can choose material of their own choice, should they need, we can do this for them at a cost or they can take the flat completely bare.”

When quizzed about expectations from the new government, he said, “We are upbeat about the new United Progressive Alliance (UPA) government and look forward to policies, which favour development.”

Jain said that in the coming 45 days, the construction industry would witness a boom in Tier I and II cities. Defending his prediction, Jain said, “In Mumbai, we sold around 100 flats in the reasonable segment only through word of mouth, which indicates that things are changing for good.”

The month of March was one of the best times for the real estate sector in Pune as compared to the last nine months when sales almost touched nearly zero, added Jain.

Source : http://www.sakaaltimes.com/2009/05/22112015/Soon-a-30storeyed-building-o.html

Jones Lang sees commercial rentals correcting further – report

MUMBAI, May 15 (Reuters) – Commercial rentals will fall faster in the second quarter of 2009 than the first, and some recovery should be seen by the end-2010, Jones Lang Lasalle Meghraj said in a report.

Oversupply across commercial space in cities are expected to increase in 2009 and vacancies are seen rising over 20 percent, in the year, the real estate consultant said in its May report.

The report covered Delhi, Mumbai, Bangalore, Chennai, Pune, Hyderabad and Kolkata, taking into account the first-quarter results of 2009.

Around 70 percent of India’s commercial projects announced in these cities for completion during the year are expected to be operational, it said.

“The rest will be delayed…We’ve only seen some isolated cases being shelved or converted. But it’s just a very small number and not in the major cities,” said Abhishek Kiran Gupta, Head-Research of Jones Lang LaSalle Meghraj.

About 146.6 million sq. ft. of space will come up in the next 11 quarters, according to the company’s estimates, as opposed to the total 172.9 million sq. ft. of commercial space announced for completion in the next 3-4 years.

The largest decline in commercial rents have been in Mumbai and Delhi, down 24 percent from the last quarter, followed by Kolkata, Hyderabad, Chennai and Pune, which were down 10-15 percent from the last quarter.

RETAIL

Total retail stock across the cities at the end of the quarter to March stood at 34.8 million sq ft while another 62.6 million sq ft of mall space is either proposed or under various stages of construction in the next 2-3 years.

Currently, Mumbai and Delhi account for about 72 percent of the retail space, but this is seen dropping to just under half the stock by the end of 2011.

Vacancies of retail space have increased to 14.5 percent as more malls in Delhi became operational.

Retailers are renegotiating on their rentals, looking for zero rental schemes, minimum guarantee and revenue sharing models, it said. (Reporting by Jasudha Kirpalani; Editing by Sunil Nair)

Source : http://in.reuters.com/article/domesticNews/idINBOM46805420090515?pageNumber=2&virtualBrandChannel=0

Ginger Hotels plans 11 properties

Ginger Hotels, a budget hotel chain from Roots Corporation Ltd, a subsidiary of Indian Hotels Company belonging to the Tata Group, is planning to invest around Rs 100 crore for setting up 11 budget hotels across the country. The hotel chain is planning to add 1,100 rooms by December 2010.

Prabhat Pani, CEO and director, Roots Corporation Ltd, said Ginger Hotel operated 19 hotels across the country with an inventory of 1,800 rooms.

A 100-room Ginger Hotel required an investment between Rs 10 crore and Rs 15 crore in each property, depending upon the model used in the location. The company was planning to set up these hotels through ownership, lease, public private partnership and management contracts, he said.

Some of the hotels under construction include Surat, Indore, Chennai, Tirupur, Jamshedpur and a second hotel in Pune.

In the south, Ginger Hotels’ properties are operational in Bangalore, Mangalore, Mysore, Puducherry and Thiruvananthapuram with nearly 480 rooms. The company will widen its network in south India with the launch of Ginger in Chennai and Tirupur. It is also evaluating options in Hyderabad and putting up a second hotel in Bangalore.

Ginger Hotel in Chennai, which is currently at an advanced stage of construction, is coming up next to the IIT campus in Guindy. The hotel would have 86 rooms and the proposed investment is around Rs 12 crore, he said.

Pani added the growth in the branded budget hotel segment was a reflection of the changing Indian consumer and his lifestyle.

Though there are no formal estimates, this sector is expected to be one of the fastest growing segments in the Indian hospitality industry. The main growth drivers are the economy’s and the customer’s inclination to shift from the unbranded to branded segment.

Source : http://www.business-standard.com/india/news/ginger-hotels-plans-11-properties/357738/

Peninsula Delays Hotel Project

Peninsula Land Ltd, a unit of the Ashok Piramal group, is deferring its plans to build business hotels by at least six months to preserve cash, a company official has said. In May last year, Peninsula forayed into the hospitality sector with a joint venture with textile maker and real estate developer, Arrow Webtex. The JV planned to build hotels in Mumbai, Pune, Nagpur, Nasik and Kolhapur in Maharashtra. There were also plans to develop hotels in Ahmedabad, Surat, Jamnagar, Mundra port, Goa and Kerala. “Currently, all outside initiatives are on hold. We do not think it is prudent to diversify rather than executing our current projects. We will look into new projects in the second half of this year when we expect markets to go up. It is more important to preserve cash in the downturn,” said Rajeev Piramal, executive vice-chairman, Peninsula Land.

Real estate developers such as DLF, Parsvnath and Unitech are also going slow on their hotel plans due to tough credit environment and fall in occupancy rates. DLF, the country’s largest property developer, is said to be pushing back its hotel plans by 12-18 months, another Delhi-based realtor Unitech, has sold its Gurgaon hotel to reduce its debt burden. “Land values are not attractive and still there is more scope for correction to launch these projects,” said Piramal. Peninsula and Arrow Webtex were to create a special purpose vehicle (SPV), where they would hold 50 per cent stake each. In the first stage, the JV was to invest Rs 100 crore and build 10 hotels of 100 rooms each, aggregating 1,000 rooms.

Peninsula is also putting its plans to get into new areas such as project management, infrastructure and others on the backburner to save cash even as it is expanding into new cities such as Nasik, Hyderabad and Pune this year, amounting to 8 million square feet. Peninsula is also looking at alternative options such as fund structures wherein capital is pooled in from different parties and invested in real estate projects as it is yet to close its Rs 1,400-crore Paramount offshore fund floated earlier.

The company is expecting nearly Rs 2,000 crore cash flows from its Mumbai projects mainly from the Peninsula Business Park project in Lower Parel area of Central Mumbai and from the Peninsula Technopark project in Kurla, which has been sold to the Essar group wherein it is yet to get full payment due. The company posted 49 per cent increase in its profit after tax to Rs 35.96 crore for the fourth quarter of FY 2009 as compared with Rs 24.06 crore it posted in the corresponding quarter of the previous financial year.
Source : http://www.indianrealtynews.com/real-estate-developers/peninsula-delays-hotel-project.html

Mumbai, Ahmedabad see steepest fall in mall rentals

AHMEDABAD: Once buzzing with a lot of business activity, shopping malls too are feeling the pinch of the slowdown. While mall rentals in retail  hotspots like Mumbai and Ahmedabad have seen a correction of 36-42%, other shopping destinations like Hyderabad, Pune, Kolkata and the NCR saw a drastic dip since January 2009.

The mall and main street rentals fell as much as 42% in Mumbai and 25% in the NCR in the January-March quarter, compared to preced-ing quarter, according to a report by real estate consultancy Cushman & Wakefield. Ahmedabad saw corrections in the range of 20-36% over the last quarter.

In the past one year, mall rentals in Ahmedabad alone have corrected by a whopping 33-55%. The correction in rental points to a waning retail sector in Ahmedabad. Be it stores of Indiabulls Retail, Spencer’s Retail or Subhiksha, the retail biggies have either shut shop (completely or partially) or have shrunk in size.

In Mumbai, main-street locations also saw rental correction with Colaba Causeway recording the highest correction of 38%.

Hyderabad recorded one of the highest mall rental corrections of 25-29% due to restrained demand from retailers. Main-street rentals also saw corrections in the range of 5-20%, largely due to renegotiations and restrictive demand.

In Kolkata, the Theatre Road and Elgin Road, two prominent street markets of the city, registered 10% correction on the account of exit of some prominent retailers. In Pune, the Bund Garden Road witnessed the steepest correction of 25%. MG Road remained stable on account of lack of supply.

Source : http://economictimes.indiatimes.com/News/News-By-Industry/Mumbai-Ahmedabad-see-steepest-fall-in-mall-rentals/articleshow/4488973.cms