Pratibha2020's Blog

Realty at its Premium Best

06.30.08 (1:29 pm)   [edit]

With an aim to help discerning customers realise their dreams, Vancouver-based Royal Indian Raj International Corporation (RIRIC) plans its foray into the Indian market. With Manoj C Benjamin at the helm of affairs, the group comes to Bangalore with a pioneering concept of self sustained townships, under its Royal Garden City projects and its Royal Garden Villas & Resorts’ brand.

 

The Royal Garden Villas and Resort in Bangalore is a master-planned gated community with exclusive amenities, including a chateau winery, opulent club house, world-class spa and pool. Besides these, the property also boasts a five-star hotel, Vijay Amritraj Tennis & Fitness Center, internationally renowned shops, restaurants, an equestrian center and supermarkets.

 

Also included in the plans is a movie theatre, which is slated for phases 2 and 3. “We see the integrated township format as a key driver of future housing supply and as a catalyst for the much needed infrastructure investments in India. The Indian government has spelt out key incentive policies to provide an impetus towards easing the flow of private investments and Royal Garden City is one of the first to have been conceptualized and planned to meet this objective,” says Manoj.

 

Under this initiative, RIRIC plans to develop firstclass resort communities and modern satellite cities in India, with the first project coming up near the new Bangalore airport. The project is touted to be one of Asia’s largest new city developments and is expected to become a model for such projects. The company has also planned similar projects in Mumbai, Delhi and Kolkata.

 

The first phase of the 6,000-acre development in Bangalore is conceived to be built on 3,000 acres and will include 13.59 million square meters of built-up space. Further to these developments, RIRIC has partnered with one of the worlds largest hotel chain’s to build budget style hotel rooms throughout India at an estimated investment of US $ 5 billion. The firm also has plans to announce exclusive rights in India with one of the world’s largest realty marketing groups by June.

 

The Royal Garden Villas & Resort, Bangalore, RIRIC’s inaugural project, lies on approximately 400 acres of prime land situated between downtown Bangalore and the new Bangalore International Airport. The project will offer residential apartments from bungalows to townhouses and the ones modelled after luxurious western subdivisions. Manoj says, “We will offer affordable homes from $ 80,000 to $ 300,000, as well as high-end villas that are in the half million dollar range.”

 

Through ingenious landscaping and architectural designs, Royal Garden Villas & Resort has been endowed with the look, feel, grace and sense of community enjoyed in Tuscany, but also offers amenities that could never even be imagined in rural Italy. Tuscany Square, in the heart of the Royal Garden Villas, is not just elegant but a standing testimony to refined living. In the charming piazza, with its feeling of a friendly neighborhood, residents, along with their children and guests, can sample fine cuisine or casual fare, the best of local and imported goods, or simply relax by the fountain and plan the rest of the day.

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    & nbsp;Courtesy Indian Realty News 27-06-08

LOCATION IS DECISIVE

06.28.08 (5:55 pm)   [edit]
Looking for property? Narrow down your search by making a list of points you are looking for in the property. This should include practical issues such as transport, schools, malls, entertainment centers and the city’s infrastructure facilities. Here are some ways to narrow down the search;

 

Decide on the location first. Buyers usually have a clear idea of where they want to live. Consider locating neat family activities-a calm area with lung spaces, broad reads, entertainment hubs, park, lake and recreation centers make sure there are restaurants and services in the area.

 

Accessibility is another factor. Look at areas where development is happing. The area near a ring road, a metro rail station, or airport is a hotspot.

 

Near Airport
This is a good idea if you have frequent travelers in the family or if you receive guests often who stay at your house. The region around an international airport automatically starts growing with business establishments. From business parks, hotels, residential units and entertainment areas-a cluster of airport-linked businesses will begin to from along corridors in radius of 25 km.

 

IT Belt
Properties in the IT localities are paying rich dividends to those who have invested there. They are potential hot picks and continue to appreciate in value sharply. The sector is poised for growth and this translates to more demand for property.

 

 

 

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Real estate developers bet on eco-friendly buildings to woo buyers

06.28.08 (11:44 am)   [edit]
NEW DELHI: Call it green revolution in the real estate business. Top developers are now betting on green buildings - that use less energy, water and natural resources, creates less waste and is healthier for the people living inside compared to a standard building - to woo large tenants. Even though green buildings involve an incremental cost of 7-10% over traditional buildings, developers see it as an opportunity for differentiation in a growing market.
 
The trigger is a growing environment consciousness among topnotch tenants, particularly the multinationals. In the request for proposals (RFPs) that are coming in, many MNCs are starting to ask the question about the green quotient. "It may not be mandatory today but going forward, many MNCs will make it mandatory," says Jones Lang Lasalle-Meghraj chairman and country head Anuj Puri. Developers such as K Raheja and RMZ have decided to go all green.
 
RMZ's 1.9 million sq ft mall, RMZ Galleria, in Bangalore is currently under construction and will be a green development. So will be K Raheja's Mindspace projects at Mumbai and Hyderabad, both of which are currently under development. According to CII-Indian Green Building Council (IGBC), 147 million sq ft of green space has been registered in India to date across a total of 239 projects. At the moment, K Raheja is planning and developing around 14.5 million sq ft of green space across the country. "We are looking at the long-term and want to be the first ones to go green in a big way," says K Raheja associate vice-president Shabbir Kanchwala.
 
 
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The company has also signed an MoU with CII to train their architects and engineers in green technology, as there is a "dearth of green staff in India," he adds. M Selvarasu, GM-Projects at RMZ, estimates the payback to be 7-8 years for gold-rated buildings and about 12 years for platinum rating. "The certification level will differ from project to project but all of it will be green," he says. At the moment, RMZ is developing a gold-rated building in Chennai and platinum-rated building in Kolkata, both of which have been pre-certified by the CII-IGBC, with another 4-5 buildings in the pipeline.
 
The Lodha Group, though, is getting into it only partially. "Only our commercial buildings will be green," says Lodha Group senior vice-president Bharat Dhuppar. Lodha has about twelve buildings in the pipeline and most of them will be commissioned between 2009 and 2010.
 
In their projects, K Raheja expects the cost to be around 7-8% higher. The savings, though, will be considerable. "We are looking at 30-40% power saving and about 20% water saving," confirms Kanchwala. "Also in construction, we try and use a lot of recycled materials -- aluminum and glass -- as well as mix fly ash with the concrete that is used," he adds. The use of glass too is being reduced. "We keep the use of glass to the minimum, to about 35% in commercial and about 20% in retail," says Selvarasu.
 
In a world where energy costs are going up by the day and investments in energy are peaking, a green building which saves precious energy and comes at the same rental for the occupier is a decent marketing tool for developers. "Many of our customers are Fortune 500 companies who understand and prefer green buildings," says Kanchwala. "The future is in sustainability," says Selvarasu.
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    & nbsp;   &n bsp;   &nb sp;   &nbs p;     ;         & nbsp;   &n bsp;   Courtesy 27 June ET Realty

Height of Style & Taste in Ghaziabad

06.27.08 (1:37 pm)   [edit]

Located on National Highway 24, Ghaziabad and standing opposite Hi-Tech City, Triveni Heights symbolizes a premium stature and redefined taste, a designer's delight and a resident's pride.

 

This mini township is an example of futuristic lifestyle innovation by Triveni Apartments with luxurious interiors and exquisite exteriors, the structure made of earthquake-resistant technology. The apartments will have marvellous wall finishing painted in pleasing shades of design prints. Modular kitchen and Vaastu-friendly are other interesting features.

 

There is going to be three styles of flats. The first standard flats comprise two bedrooms with a hall and kitchen (space 1,100 sq. ft.). The second standard flats have two bedrooms with a hall, kitchen and a study room (space 1,400 sq. ft.). In the third standard flats, there will be three bedrooms with a hall and kitchen (space 1,600 sq. ft). Triveni Heights will suit individual’s aesthetic taste and budget. The greenery and wide open spaces promises a country club lifestyle.

 

Recreational facilities like in-house executive club, multiplex, affiliated school, health club, swimming pool and mini golf course are being planned.

Life with a ‘Green’ smile in Agra

06.27.08 (1:36 pm)   [edit]

Ansal API, notable realty developers, has announced another project. It is called Sushant Taj City, a top-of-the-class township which will redefine lifestyles in Agra in a big way. The attraction for the buyers lies in the availability of modern amenities amidst green surroundings and pollution-free environment.

 

Strategically located near the Delhi-Agra highway, on the

Agra Ring Road

, the township will be spread over 460 plush acres of land. The facilities will include educational institutions, hospitals, clubs, hotels, multiplexes and malls. The structures are earthquake -resistant, with 24-hour water supply and 100% power back-up. Municipal Monitor

REDUCTION IN STAMP DUTY

06.26.08 (4:43 pm)   [edit]

 

    & nbsp;   &n bsp;   &nb sp;   &nbs p;     ;         & nbsp;   &n bsp;  Real Estate Investment in U.P. Cheaper

 

U.P. Government has given a big respite to the people who are interested to invest in

Real estate. It has been announced that stamp duty on registration of flats, plots and building like properties has been reduced from 8% to 5%.

Simultaneously, it has also been announced that within next six months the process of registration of properties will be made easy and side by side e-registration will also be implemented.

Properties will be registered and stamp duty levied in NOIDA and Greater NOIDA on the basis of price. It has also been decided that at both the places, circle rates will not be made effective for a period of next one year.

 

Sanction to increase FAR in Ghaziabad including Gautambudh Nagar has been accorded. With the announcement more flats can be made at these places which will reduce the construction cost and cheap flats will be available. In addition to this, percentage on rent agreements and agreements between developers & property buyers has also been reduced. Additional rebate of 2% will continue for ladies as usual in the state. These decisions were stamped during the cabinet committee meeting presided by C.M. Mayawati on Wednesday.

 

KARNAL (HARYANA)

06.25.08 (4:08 pm)   [edit]
Step Into Modern Living 

 

Ansal Housing and Construction has incorporated state-of-the art lifestyle and world-class facilities in a residential project in Karnal. Ansal Town Karnal (Haryana), spread over approximately 98 acres, is an integrated township and is strategically located near National Highway 1. The township is about 125 kms away from New Delhi as well as Chandigarh. The project turnover is approximately Rs 250 crores. It will feature amenities like a jogging track, commercial and shop-cum-office complex. A community centre with swimming pool and gymnasium, schools and a dispensary are other attractions.

 

 

 

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A Luxurious 'Sky Life'

06.25.08 (4:06 pm)   [edit]
Lanco Infratech's Rs 5,500 crore-mega project in Hyderabad, called Lanco Hills, presents the finest lifestyle features, international facilities and amenities. Featuring the world's tallest residential tower as a signature landmark, Lanco Hills offers an unique world within, with convenient access to homes, premium office spaces, entertainment, hotels, leisure and shopping at one place. Lanco Hills comprises exclusive 3-BHK Type I premium high-rise residences with around 1,850 sq.ft. to 1,950 sq.ft. of living space. Every tower houses over 100 exclusive homes. All towers rise to over 26 to 33 levels, each offering a unique experience of the "sky life."

 

 

 

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BHOOMI POOJAN OF AMRAPALI MODERN CITY

06.24.08 (4:46 pm)   [edit]
Amrapali Group performed the bhoomi poojan of 'Amrapali Modern City' in Indore. Located in close proximity to IIM, Indore, 'Amrapali Modern City' will have premium class independent luxury villas, residential apartments, and plots besides commercial complex. Developed over 150 acres, the township has two entry points one from

Rau-Pithampur Road

and the other from Rau Khalghat, 4-lane road. Central Green Park, jogging track, exclusive clubhouse, swimming pool, gym, steam and Sauna bath, kids zone, community hall, basketball and badminton court will be part of this project.

 

 

 

 

 

Courtesy: - HT dated: - 21^st June 2008

SUBHASH PROJECTS ENTERS BOOT PROJECTS IN ROAD CONSTRUCTION

06.24.08 (4:43 pm)   [edit]
Subhash Projects and Marketing Ltd (SPML) has forayed into BOOT projects in road construction with the commencement of work on the four-laning of the Jaora Nayagaon state highway by Madhya Pradesh Road Development Corporation (MPRDC). SPML is actively pursuing similar opportunities for the development of highways on Build Own and Operate (BOOT) toll model elsewhere in India.

 

 

 

A special purpose vehicle (SPV) - Jaora Nayagaon Toll Road Company Private Limited - has been formed for implementation of the project which covers a length of 126 kms on SH-31 to 4-lane section in Madhya Pradesh. The total cost of the project is Rs. 847 crores with a concession period of 25 years including construction period of 2.5 years on BOOT basis. The consortium will pay annual premium (negative grant) of Rs. 15.39 crore over a period of 22 years increasing @ 5 per cent per annum to MPRDC.

 

 

 

 

 

Courtesy: - HT dated: - 21^st June 2008   &nb sp;   &nbs p;     ;         

 

30 PC GROWTH IN REALTY IN NEXT TEN YEARS

06.23.08 (5:11 pm)   [edit]
The realty sector is projected to grow at the rate of 30 per cent annually over the next decade, attracting foreign investments worth USD 30 billion, with a number of IT parks and residential townships being constructed across-India, industry body Assocham said. Currently, the domestic real estate market is expected to be worth 15 billion dollar in which the FDI is estimated to about 6 billion dollar, it said.

 

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Courtesy: ET dtd. 20/06/08

BOOM IN REALTY SECTOR HIKES INDIA INC.'S NET

06.23.08 (5:10 pm)   [edit]
Having surplus land during a realty boom is similar to sitting on a goldmine. While many corporates continue to hold on to this valuable asset in anticipation of a further price appreciation, quite a few have decided to cash in on the opportunity and boost their bottom lines in the bargain. Corporates have reported a significant improvement in net profit riding on the large extraordinary income earned in the form of profit on the sale of property. The list includes ACC, Ranbaxy Laboratories, Pfizer, Rallis India and BOC India. Others like Bombay Dyeing, Century Textiles and Godrej Industries own several acres in Mumbai and Thane, thereby creating huge assets for themselves.
 

 

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    & nbsp;   &n bsp;   &nb sp;   &nbs p;     ;         & nbsp;     Courtesy: ET dtd. 20/06/08

SEVERE CASH CRUNCH IN THE REAL ESTATE SECTOR

06.21.08 (5:18 pm)   [edit]
The recent bloodbath in the real estate sector has started taking a toll. Almost all large developers are facing a severe cash crunch and finding it difficult to complete their ongoing projects. The situation is so bad that most of them have reported a 50-70% cash shortfall. Liquidity crunch has forced many developers to pick up cash from the unorganized market at interest rates as high as 35% to 50% annually. The lending rate of banks is between 18% and 20%. The grade A developers which are facing crash crunch include DLF, MGF Emaar, Shobha Developers, Unitech, Omaxe, Parsvnath Developers, Hiranandani Group, Ansal API, BPTP Developers and TDI Group.
 

 

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RELIGIOUS TOURISM BOON FOR HARIDWAR REALTY

06.21.08 (5:16 pm)   [edit]
Instant karma has emerged as the driving force behind the state's multimillion-dollar realty industry, with religious tourism turning the twin towns of Haridwar-Rishikesh into hot spots for developers, industry trackers say. With the two holy cities located some 200 kilometres from the national capital, Haridwar and Rishikesh are fast becoming a favourite with residents of Delhi and its adjoining areas looking for a bit of quick spiritualism. Subsequently, these places have become almost an extension of Delhi-Gurgaon for spending the weekend.
 

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Courtesy: ET dtd. 20/06/08

F to launch villas in Gurgaon for Rs 1.5 cr

06.20.08 (5:17 pm)   [edit]

 India's largest property firm DLF is planning to launch villas in Gurgaon for Rs 1-1.5 crore, reports Sanjeev Choudhary. The company feels villas will score over apartments in offering a value proposition to home buyers in a market hit by slowdown. At a time, when Rs 1-crore apartments have become a commonplace in metros and their suburbs, providing a villa for a similar price will enthuse all potential home buyers, says a DLF executive. The company plans to launch its latest offering in a month. The total number of villas on offer is not clear yet, but the company executive said it could be over 500.
 

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RBI RELAXES HOUSING LOAN LENDING NORMS FOR COOP BANKS

06.20.08 (5:14 pm)   [edit]
Making it easier for urban cooperative banks to extend housing loans, Reserve Bank has relaxed the risk provisioning norm for purchase of residential properties up to Rs 30 lakh. The central bank issued notification on Monday in pursuance of the annual credit policy announcement made by Reserve Bank governor Y V Reddy on April 29. Earlier on May 15, the central bank had relaxed the risk provisioning norms for housing advances by the commercial banks. "It has been decided to enhance the limit of Rs 20 lakh to Rs 30 lakh in respect of bank loans for housing in terms of applicability of risk weights for capital adequacy purposes. Accordingly, such loans will carry a risk weight of 50%," Mr Reddy had said. 
Courtesy: - ET dated: - 18^th June 2008

 

CIVIC LEVY IN GURGAON OFFSETS STAMP DUTY CUT

06.20.08 (11:13 am)   [edit]
2% TAX IMPOSED ON VALUE OF PROPERTY, BUT WOMEN HOUSE OWNERS WILL GET TO PAY 1% LESS

 

Gurgaon: While property buyers across Haryana have welcomed the recent government decision to reduce the stamp duty on conveyance deeds and sale deeds from 6% to 5%, it has brought no relief to residents of Gurgaon. The district administration has imposed a new levy of 2% of the value of property to generate revenue for the recently-created Gurgaon Municipal Corporation (GMC).
  
Therefore, the buyer has to now pay 7% of the transaction instead of 6% earlier. On an average, Gurgaon generates daily revenue of about Rs 2 crore from stamp duty and registration fee. However, there is some relief for women buyers who have to pay one per cent less than men i.e. 6%.
  
According to officials of the revenue department, the better deal for women buyers is already having an impact. They pointed out that in places like Gurgaon and Faridabad, or for that matter any NCR city of Haryana, the property transactions are in crores. ''In case, a plot costs Rs 1 crore, the buyer would like to get it registered in the name of a woman since he will save at least Rs 1 lakh on account of stamp duty. So, we are witnessing a major shift in the pattern of property ownership with women becoming landlords,'' said a senior official.
  
Estimates suggest over 60% of properties sold recently have been bought in the name of women. So far as the reduction in stamp duty is concerned, the Haryana cabinet had approved the draft of the Indian Stamp (Haryana Amendment) Ordinance, 2008, and the rates of stamp duty on conveyance deeds and sale deeds were reduced to discourage alienation of property on general power of attorney and to raise more revenue from stamp duty.
  
The Government of India has launched three schemes for improvement of infrastructure in urban areas and the Centre is providing substantial assistance to the state for this purpose. One of the conditions for providing this assistance is to reduce stamp duty to 5%. The Haryana finance minister had also made this announcement in his budget presentation early this year. A senior official of the revenue department said the move is also aimed at pushing the sale of properties. ''This is also an encouragement for the buyers since due to the reduction in the stamp duty, they are going to save more, he added.
  
Property dealers said since there has been a slowdown in the real estate market, the government might have taken this decision to push property transactions. Areas in Gurgaon, Faridabad, Sonepat and Panipat have witnessed increased business in this sector. ''This is a positive development. But in Gurgaon, with the new municipal duty of 2%, while the state government gets only 5% of the stamp duty, buyers pay 7%. So, how much this will help government achieve its goal here remains to be seen,'' said G L Sharma, a property consultant.  
District officials said earlier buyers had to pay 2% extra stamp duty in case of properties falling under the erstwhile Gurgaon Municipal Council. ''Now the additional 2% is being charged on all transactions for properties in the entire urban conglomeration, including the colonies developed by private developers and villages which have been included in the corporation,'' said a senior official.
 

 

 

Courtesy: - TOI dated: - 19^th June 2008     & nbsp;   &n bsp;   &nb sp; 
 

 

DEHRADUN TO DELHI DRIVE TO TAKE 3.5 HOURS

06.19.08 (3:09 pm)   [edit]
The Uttarakhand government has agreed to a proposal by Uttar Pradesh to build an expressway from New Delhi to Dehradun that will minimise the travel time to less than 3.5 hours. The 200-km-long, eight lane expressway along the Hindon River would start from the national capital linking Saharanpur and Ghaziabad in Uttar Pradesh. From Saharanpur, an industrial area bordering Uttarakhand, the state government will further extend it up to Dehradun. Already, two meetings between the top government officials of both the states have been held in this regard. "We are ready for the expressway being proposed by Uttar Pradesh," said Additional Chief Secretary Indus Kant Pandey. The proposal is being seen as a major infrastructure initiative between Delhi and Uttarakhand that can boost business prospects in the hill state. "If such a proposal materialises, it will give tremendous boost to industrialization and other business activities in the hill state," said Pankaj Gupta, president, Industries Association of Uttarakhand. At present, traffic congestion is very high on the Delhi Dehradun highway, which is also being widened. But since the pace of work is very slow, the Uttarakhand government has evinced interest to the proposal of Uttar Pradesh to build the expressway. Plans are also afoot to extend the expressway from Saharanpur to Haridwar, which has also emerged as a major industrial hub with leading companies like M&M, HUL, ITC and Hero Honda setting up their units there. Please visit website any further information real estate www.propertycafeteria.com Courtesy: - B.S. dated: - 16th June 2008

PRIMROSE, FOR AN AFFORDABLE LIVING

06.18.08 (6:19 pm)   [edit]
Panchsheel Group, the real estate perfectionist has redefined perfection with various dream projects that include Panchsheel Park Colony -Ashok Vatika, Lajpat Nagar, SPS Apartments Phase 1- Main GT Road, SPS Apartments PhaseII-Radhey Shyam Park, GT Road, Euro Apartments- Rajendra Nagar, SPS Residency Vaibhav khand, Indirapuram, and SPS Heights- Ahinsa Khand II, Indirapuram. The Group has also created Panchsheel Wellington in India's first global city, Crossings Republic. In its series of uncharted success, the Group has now created budget apartments on Hapur Road, Ghaziabad, for home seekers who want a complete lifestyle and that too at an affordable price. This living abode is strategically located in the bustling township of Ghaziabad. It is an ultimate destination for people desirous of settling in Delhi and NCR. It has become one of the favourite destinations for living due to easy accessibility from the capital and its other suburbs. With the proposed Metro Station, World class infrastructure, Residential and Commercial Complexes, Shopping Malls, Multiplexes Schools, Hospitals Community Centre, Parks and Shopping Centres and other luxuries of modern living, Ghaziabad is fast becoming the choice of upwardly families. It has been listed in the top 10 most dynamic cities of the world in'06 by Newsweek international. Catering to the needs of different strata of the society, it has become the most sought-after destination for Business Groups, Industrialists, Technocrats and Home Seekers. These are the advantages why Panchsheel has found Ghaziabad as the most sought after location for their budget apartments. Today the world is fascinated with a culture called Interior Design and Better Living. The lifestyle of the people gets a facelift with contemporary lifestyle that starts at their home and remains with them. The people today are not considered as general buyers but designated as smart home seekers who don't want just homes but a perfect habitat that reflects their attitude and style. Keeping all these minute details and reasons in mind, Panchsheel has created Primrose, the budget apartment that offers luxury with affordability. Courtesy: - HT dated: - 14th June 2008

EXCITING TIMES ARE HERE IN NCR

06.17.08 (7:15 pm)   [edit]
All across Delhi Extn.NCR Baghpat, there is a wave of excitement and wellbeing as this Land of Tigers is being totally revamped. Resting gently on the banks of river Yamuna, Delhi Extension NCR Baghpat boasts of its picturesque location. Surrounded by acres of verdant greenery, this enchanting neighborhood enjoys its proximity to Delhi by 22 kms. Strategically located on the Delhi - Saharanpur Highway, it is bounded by Meerut in the north, Ghaziabad in the south and river Yamuna and Kondli Sonipat in the west. Owing to its vast linkage of rail and road network, Delhi Extn.NCR Baghpat attracts a lot of manufacturers and house hunters. Its nearness to the Railway Station (only 2kms.), ISBT (only 25Kms.) and the IGI Airport (only 80 kms.) allows it to make the best resources available. Delhi Extension NCR Baghpat has grown from a small town trading in the making and selling of jaggery to a major industrial centre. Due to its location on the banks of river Yamuna, the region has rich and fertile agricultural land with a high water table. Owing to its nearness to Delhi and its versatile nature it has been included in the National Capital Region. The state government of Uttar Pradesh is blending in all vehicles to completely revamp the area. To meet the challenges of the 21st century and to realize the untapped potential of this industrial town, the state government is strengthening its infrastructure and preserving historical sites to promote heritage tourism. Impetus is being given to the development of infrastructure components like road and rail network, electric and water supply, sewer and drainage. For this reason, the Baghpat Development Authority has also been formed. Courtesy: - HT dated: - 14th June 2008

BHUMIPUJAN FOR SUPERTECH'S PROJECT

06.17.08 (3:00 pm)   [edit]
The Bhoomipujan for Phase I of Supertech’s upcoming residential project, Livingston was started of recently by R K Arora, CMD along with the Directors and VPs. The Livingston apartments are a part of Crossings Republik, which is an integrated township spread across a 360acre plot, situated on National Highway - 24. Livingston has been built keeping in mind the importance of space for rejuvenation. The Company will develop 635 units of 2 /3 Bedroom luxurious apartments in Phase I. The area surrounding it is clutter free and pollution free with a lot of natural foliage. There is also very easy access to all the amenities that one needs along with world-class facilities. These flats are especially for Middle Class Category and the price of these flats is starting from 21.60 Lakhs which is very much effective for a Middle Class family. The areas of these flats are from 1000sq.ft to 2075sq.ft. and the possession of Phase I will be on June 2010.Speaking at the ceremony R K Arora said, "Livingston will add value to the trust that Supertech has earned in the past 20 years. We see our aim of changing the face of still developing cities into realty destinations of the future becoming a reality." Livingston is set in the heart of Ghaziabad, a city that has been featured in Newsweek International as one of the top 10 dynamic cities in the world in 2006. It promises to be the perfect investment and housing destination. Courtesy: - HT dated: - 14th June 2008

NEW ENERGY IN PARAS TOWER

06.17.08 (2:53 pm)   [edit]
Paras Twin Towers, located in Gurgaon, has been inaugurated recently with fanfare. At the nerve center of Gurgaon, in sector-54, this project has developed a commercial space of 2,30,000 sq. ft. GE, American Express, Aviva, Hewitt, Vertex, SAP, Yahoo, are some of the establishments which fill the vicinity of Paras Twin Tower. Paras Twin Towers is developed by Paras Buildtech which is a progressive, future-focused, real estate company. It enjoys a good reputation of conceiving and executing large and stylish real estate projects in both commercial and corporate segments. The company says that an array of the world-class facilities will grant Paras Twin Towers a rare excellence and exclusivity. Rajinder Takhar's, COO, Paras Buildtech, said, "Our project is set to become a landmark commercial space of Gurgaon." High-quality commercial space is indeed need of the hour in Gurgaon, and the arrival of Twin Towers holds promise. Courtesy: - HT dated: - 14th June 2008

Why Most Real Estate Entrepreneurs Don’t Make Consistent Profits and What To Do About It

06.16.08 (5:54 pm)   [edit]
Go to just about any town or city in the country and you’ll find real estate entrepreneurs and investors like yourself working far more than they should for the return they are getting. And this despite all the promises of "fast cash" and "easy money" that sold the courses that got them into the business in the first place. You see, the reason many Real Estate Entrepreneurs don’t do so well is not because of lack of intelligence or their willingness to work hard. It is simply due to being focused on the wrong area of their business. We come out our training very "deal" focused, and not motivated seller focused. If there is one thing that is the mark of someone experiencing problems in our business, it is that they cling to marginal deals. This is directly related to not having enough qualified leads to work with. You know. You only got two or three interested sellers even talking to you in the first place, so if you want to eat you better close those deals! And that sets up the worst of all scenarios; a desperate buyer chasing a luke-warm seller. The solution to this problem is to have a continuous flow of sellers calling you so that you have a choice of who you want to work with. With so many people calling, you are in the position of not needing any one of them. If any particular seller is inflexible or difficult to deal with, you can legitimately walk away from them knowing that you having another seller to move on to right around the corner. Where this leads in your deal-making and business is after a while you only talk to the most motivated people with the nicest houses where there is the most potential for maximum profit, people who are almost pleading with you to take their house! After all, it makes little sense to speak to anybody else. These deals are the cream of the crop. People whose houses have diminished in value in their eyes because they now want something else more, and their continued ownership of the house is preventing them from getting that something else. These are your motivated sellers. And they are the only people you should ever consider dealing with. Try calling a seller who is still emotionally attached to their house with an offer involving creative financing. Your offer is an insult to them. But it is a godsend to a seller whose life is elsewhere now and no longer wants his house. Well how do we get so many people to call? And how do you get the right people to call? The answer lies in the basic principles of Direct Response Marketing, and Emotional Direct Response Copywriting. As business owners our overarching goal is to make the most profit, incurring the least cost, with (preferably) the least effort. As Real Estate Entrepreneurs that means talking to motivated sellers as much as possible, avoiding time-wasting unmotivated people as much as possible, and using a system to deliver those results predictably and consistently for us. Nothing achieves this better than Direct Response Marketing! With Direct Response we decide who our best prospect is first, attract only them, then put a message in front of them that is more difficult to ignore than it is to respond. A very successful direct marketer named Gary Halbert sums this up succinctly by asking a question. The question is: "if you were in business, say the restaurant business and you could have one ultimate advantage over the rest of your competition, what would that advantage be?" People usually fumble around with things like best service, best food, etc. But no, that’s not it. The answer? "A starving crowd". So obvious. So simple. By targeting precisely the high probability sellers (i.e. the starving crowd) you want to go after, putting a piece of paper in front of those people with a message on it that speaks directly to a burning frustration they are experiencing, and then tells them exactly what to do to get relief from that pain, your odds of being on the phone with a motivated seller go way up, as the odds of you wasting time with unmotivated people still in love with their house go way down. That’s what we want. Only real motivated ("starving") people calling us one after the other, uninterrupted, so we can concentrate on our most profitable business activity; CLOSING DEALS. Mastering the basics of Direct Response Marketing will take you from wherever you are now to a rare place in the business world; having predictable, reliable, profitable marketing systems that will provide you with all the deals you want.

HIGH-PROFILE HOSPITALITY PROJECTS SHELVED

06.14.08 (5:44 pm)   [edit]
Pune's booming hospitality sector, which had seen some high-profile announcements being made, has already witnessed a shakeout; with some high profile projects have quietly been shelved. But these are at the top end of the spectrum and industry maintains that Pune is a business or budget hotel city. While occupancy, the measure of viability, is around 65% in the business hotel segment, the expectation is that capacity addition to its existing 250 rooms will happen. At which point, a price correction is expected, as supply increases. Courtesy: ET dated:- 13th June 2008

INDIA EXCEEDS

06.14.08 (5:42 pm)   [edit]
DELHI AND MUMBAI'S OFFICE SPACES ARE MORE EXPENSIVE THAN THOSE IN PARIS, NEW YORK, STOCKHOLM, MILAN, GENEVA, ROME, SHANGHAI AND LOS ANGELES. THIS SIMPLY SUGGESTS THE NON-AVAILABILITY OF SPACE IN INDIA AT COMPETITIVE RATES. The demand for office space in India continues to be strong, despite fears of some moderation in economic growth. According to the latest report of global consultancy firm CB Richard Ellis (CBRE) on fastest growing occupancy costs of office space in the world, Mumbai, Bangalore and Delhi featured at 8th, 22nd and 45th positions. While rentals in Mumbai grew at 40.7% in the last one year, they went up by 22.6% in Bangalore and by 15.3% in Delhi. However, Mumbai slipped from second place in November 2007 to the fourth place at present, on the scale of most expensive office markets in the world. London's West End, Moscow and Tokyo dominate the list of costliest places in the world, in that order. Delhi continues to be at the seventh spot. According to Anshuman Magazine, CMD of CB Richard Ellis for South Asia, the drop in ranking is not due to rentals in Mumbai falling, but because of a significant increase in rentals in Moscow, where they almost doubled in the last one year. He said that the number four position of Mumbai is still very high and is reflective of the tight supply of prime office space in Mumbai and Delhi, and demand remaining constantly active. According to the report, office space in Mumbai and Delhi are costlier than in Paris, New York, Stockholm, Milan, Geneva, Rome, Shanghai, Los Angeles, among others. This clearly suggests the nonavailability of space in India at competitive rates. Magazine says: "Although absorption of office space remained brisk in most markets, continuous increases in occupancy costs have driven some companies to relocate beyond prime locations in cities including Tokyo, Hong Kong, Singapore and Mumbai." According to the report, rentals in Central Business Districts (CBD) in Mumbai and Delhi are Rs 738 per sq ft per month ($210.97 per sq ft per annum) and Rs 508 per sq ft per month ($ 145.16 per sq ft per annum). As against this, rentals in London are $300 per sq ft per annum, $142 per sq ft per annum in Paris, and $103.43 per sq ft per annum in New York. Rentals in Tokyo at $220.25 per sq ft per annum eased for the first time in the past three years, falling by less than one percent, as a number of large occupiers put expansion plans on hold. In India, however, the story is a bit different. Magazine says, "In India, supply remained limited in CBD areas, while facilities in secondary locations like Gurgaon and Noida in National Capital Region of Delhi have attracted office occupiers due to availability of superior quality office space." He said that in New Delhi, prime office rentals remained stable in the first quarter of 2008 and are expected to remain at current levels or increase marginally. New supply is expected to continue to be dismal in the CBD while the supply situation in the peripheral areas of Gurgaon and Noida is set to improve as a significant amount of supply is set to enter the market over the remainder of 2008, and in 2009. A clear trend is that when rentals go beyond a point, occupiers think it more prudent to move to secondary market areas rather than stick to the CBD at high costs. As there is hardly any supply going to come in the CBDs in the near future, the rentals in these areas continue to be high. But, in the peripheral and suburban areas, large supply is likely to come in near future. According to a CBRE report, the demand supply gap is expected to be much closer in 2008, with some micro markets even witnessing surplus stock by end of third quarter in 2008. "This is a welcome development from an end-user perspective, especially for the large space occupants and would only lead to enhanced take up in the medium to long term. However, rentals in peripheral markets of Gurgaon showed no sign of a meltdown in the January-March quarter, the report says. Transactions were reported in MG Road for rentals upwards of Rs 135 per sq ft per month and on the Golf Course Road at Rs 125 per sq ft per month. In the area, there is a lot of demand, which is evident from the huge transactions through pre-commitment for space, while it is under development. According to the report, pre-commitment remained a feature in DLF Cyber city, where rentals ranged from Rs 70 per sq ft per month to Rs 105 per sq ft per month. The report said rentals are expected to remain stable in the next quarter with additional supply on the MG and golf Course Road meeting the huge corporate demand. Noida continues to attract IT/ITeS companies primarily for back office operations. Rentals in Noida, the report mentions, were marginally higher in the last quarter but are expected to be steady with high supply available, especially in the industrial and institutional sectors. The absorption rates are expected to rise significantly this year with improved infrastructure and affordable rentals in relation to other areas in NCR. This augurs well as it will increase the economic activities in the region. Courtesy: ET dated:- 13th June 2008

THE GREEN EFFECT

06.14.08 (11:03 am)   [edit]
Green buildings based on the premise of increased efficiency and minimal wastage are eco-friendly and more cost-efficient. Many end-users and investors shy away from green building technologies due to misplaced notions of cost overruns and impracticability of construction. The notion that green buildings are 'costlier' impacts the profit motive that lies behind real estate, prompting both builder and investor to stick to conventional methods of construction. To dispel this myth and promote sustainability, the concept of green buildings and its cost effectiveness during its lifecycle needs to be understood. GREEN BUILDING A green building is based on the premise of increased efficiency and minimal wastage during its lifecycle. It addresses aspects such as health, environment and resource conservation, while maintaining economy. Thus, it focuses on reduced energy consumption, reduction and recycling of produced waste, reduced emission of pollutants into the environment, minimizing construction impacts, and healthier and more productive indoor environment. COST FACTOR While the initial cost of a green building may be slightly higher as compared to a conventional building, the operational cost is lower because of their reduced energy consumption feature. For instance, the energy requirement of a green building can be just 15 percent of a conventional building in some cases. This makes them very cost-effective in the long run as the initial higher cost is more than recovered within a short span of it being operational. RETURNS In terms of rentals as well as capital gains, green buildings have an advantage because of reduced operational cost and higher productivity of employees. All modern techniques, building design and usability of space can be incorporated into a green building. In the demolition phase too, these buildings are suitable for recycling, minimizing waste. Some of these are built to adapt to different uses, eliminating the need to demolish. Studies have shown that the average construction cost premium for green buildings is less than two percent while the reduction in annual operational cost is 30-40 percent as compared to a conventional building. Add to this the quantifiable and nonquantifiable benefits and the fact that they are feasible anywhere in the world, green buildings then become extremely attractive economically. SUSTAINABILITY Green buildings can be simple and down to earth, or modern and ultra elite. Simple techniques like incorporating a green roof which substantially insulates and cools interiors, besides cutting down on urban heat island effect, designing to take advantage of wind and sun in terms of energy, light and ventilation, going in for indoor plants such as the Areca Palm which releases sufficient amounts of moisture into the air and flushes out toxins, go a long way in making buildings sustainable. As for residential complexes, large savings on energy and operational cost can prove extremely attractive in terms of both rentals and investment. Green buildings essentially evolve based on specific local conditions, working them to their advantage and sustainability. In a city like Bangalore, green buildings could address aspects such as ventilation, heat and light by adopting a suitable facade and orientation. For instance, usage of higher technology glass along with right orientation would keep the heat out while allowing sufficient light. The IT developments could incorporate displacement ventilation for better quality air, which also saves energy. Large residential complexes could structure the building to take advantage of wind, allowing natural ventilation. The site too could be designed to be cooler with trees and water bodies. A clever design with glass and concrete would allow plenty of natural light while still maintaining privacy. Courtesy: ET dated: 13th June 2008

GURGAON REAL ESTATE

06.13.08 (3:27 pm)   [edit]
A recent report has shown that UK investors are looking to India as the UK property market shows continuing signs of weakness. While the property market in India has been growing for some time, many investors feel that it is still at a very early age with vast areas of the country still relatively untouched by the increasing demand for quality property. The growth in interest from UK based investors has been helped by the recent decision of the Indian government to relax the barriers for foreign investment into the housing sector. While the flow of funding is still very much controlled by the regulators, the walls are coming down and increased investment is flowing into the country. It appears that British citizens with connections to India are looking at areas such as Gujarat, Gurgaon, Bangalore, Chandigarh, Pune and Jaipur although when you consider the size of India a number of other destinations could well appear in the short term. Financial powerhouse Merrill Lynch forecast that the Indian property market will increase by over 700% between 2008 and 2015, offering the potential for large property gains for those brave enough to take the plunge. It is also interesting to see the increase in Indian property road shows in the UK with London, Manchester, Birmingham and Leicester all hosting a number of investment briefings for those looking for alternative markets. While the property market of India is not a new venue for many investors it seems that more and more in the UK are looking at this area as the domestic market continues to flounder. UK interest rates seem to have bottomed out, although some analysts expect them to rise by the end of the year, property transactions have all but dried up in some areas of the country and financing is still a major hurdle for many. All in all it is easy to see why so many are now turning their attention to the massive Indian property market, a market which is still very much in its infancy and set to show significant growth for some time to come. Propertycafeteria.com supports your plans for buying and selling properties in Gurgaon. From gaining access to current property rates to sale and purchase of property, our real estate solutions apply to a whole host of situations across the economic value chain in commercial (retail and office space), industrial & residential/rental properties in Gurgaon. The initiative by the Government of Haryana in inviting investments to Gurgaon has brought about the active growth in knowledge based industries like IT Services. This has created demand for office space and consequently to residential properties in Gurgaon. In commercial space reputed developers like DLF, Unitech, Vipul, Vatika, JMD, Omaxe Parsvnath, Sun city Projects Ltd. are pushing the concept of workspace, urban living and leisure time in all directions. The realty boom is unbridled but eminently sustainable. Malls in Gurgaon have been instrumental in giving a pattern to mass affluent household spends as retail and commercial business is becoming specialized. There are a number of large format retail stores in Gurgaon and existing formats are changing radically according to size and category. Office spaces in corporate buildings as well as in commercial centers like IMT Manesar, Pace City, Info City and Udyog Vihar in Gurgaon have catapulted Gurgaon to become the Commercial hub of India.

Gurgaon gives Sops to Overseas Citizens of India

06.12.08 (7:07 pm)   [edit]
Offering sops of sorts, the district administration on Tuesday announced it would issue Indian driving licenses to Overseas Citizens of India (OCIs), Putting them on par with non-resident Indians (NRIs). Children of OCIs can also be enrolled in any educational institution here, just like NRI children are. Foreign nationals are denied this option, and their children can only study in international schools, or study in approved universities under mutually agreed quota system. With this, Gurgaon has become one of the select cities to put in place a mechanism that brings some sort of parity in status between OCIs and NRIs. OCIs are people of Indian extract but are citizens of another country, and hold an OCI card under a special scheme introduced in 2006. NRIs, also settled abroad, on the other hand may or may not be citizens of the country they are settled in; they definitely do not hold an OCI card. Now, anyone holding an OCI card in Gurgaon is entitled to both options - enrolment in schools and driving licenses - which the NRIs enjoy during their stay in India, district magistrate Rakesh Gupta said. The registration booklets they hold will be treated as their identification proof, Gupta added. Gurgaon is dotted with multinational companies (MNCs) employing both foreign nationals as well as people of Indian origin from various countries who hold OCI cards; their stay could be either for business purpose, or because of the project period of the company they work for. Under the OCI scheme, persons of Indian origin from any country (except Pakistan and Bangladesh), who were once citizens of India, or were eligible to become citizens of India on January 26, 1950, under the Citizenship Act 1955, are eligible to become OCIs. OCIs are not required to report to the police or other foreign office for any length of their stay in India, nor do they require employment visa to work in the private sector here. However, OCIs do not have political rights and are not allowed to hold government jobs. Additionally, they cannot acquire agriculture and plantation properties. 12 June Indian Realty News

Satyam leases 400,000 sq ft of office space

06.11.08 (7:17 pm)   [edit]
CHENNAI: As part of expanding its services, Information Technology service provider Satyam Computer Services Ltd on Saturday said it has leased 400,000 sq ft of office space in Shriram- the Gateway, the special economic zone, being developed by Shriram Properties at Perungalathur near here. "We are pleased to establish Satyam's presence in The Gateway, which accommodates Satyam's needs for high-quality infrastructure" Satyam Computer Services Managing Director B Rama Raju said. The facility is scheduled for completion in November 2008 and is expected to accommodate 4,000 Satyam consultants, who work on technology applications, industries and regions. Satyam development and delivery centres are in the US, Canada, UK, Brazil, Hungary, Egypt, UAE, India and China. It serves 654 clients, including more than one third of the Fortune 500 companies, the release added. TOI 31 May 2008

Why NOIDA?

06.11.08 (2:46 pm)   [edit]
But what explains the scramble for this area in particular? "There is a great market potential for such centers as people do not have outlets where they can shop and enjoy and entertain themselves all at one place. Such centers provide them with a relaxed and enjoyable environment,” explains Bhatia. Says another real estate consultant, “Both rentals and selling prices have definitely increased; however there is tremendous competition from the malls in terms of available retail space for the purpose of lease and purchase. Rented prime retail space will always command a high premium.’’ The Success Story “The success of the market has definitely jacked up real estate rates and not long ago, a 60-metre constructed land for showroom space was sold for Rs. 12,000 per sq. ft.,” says Bhatia. While the prices for buying office space range between Rs. 12,000 and Rs. 18,000 per sq. ft., rents are Rs. 190 to Rs. 90 per sq. ft. for showrooms and offices respectively, he adds. “Basking in the glory of the first toll bridge and, more recently, the NOIDA-Greater NOIDA Expressway, the Sector 18 commercial complex has seen sales as well as rates increase by nearly 20 per cent,” says Shyama Chugh of YD Properties. She is convinced that once the market hosts more commercial complexes like the Unitech multiplex as well as amusement and water parks, retail will definitely soar further in Sector 18 as space is a scarce commodity there. Adds Anand, “The strategic location of the trade sector has ensured and will continue to ensure the upward trend of this area. But those at the helm of affairs of NOIDA need to keep in mind that infrastructure is a serious issue in most retail markets and should be addressed at the earliest in order to maintain the attractiveness of the market for consumers. Only this will help the market grow.” Sanjay Verma, executive director of Cushman & Wakefield says that retail in NOIDA has certainly seen a flux of large brands in the past 24 to 36 months. “A large number of retail outlets and restaurants are located in sector 18. The development of malls will further fill in the need for organized retailing.” Adds a spokesperson for Radisson MBD Hotel, NOIDA: “These are significant advancements compared to an area like Gurgaon and NOIDA will soon bypass the developments that have taken place in Gurgaon. Additionally, location-wise, NOIDA is close to the South Delhi areas that have major purchasing power and may help in the development of the city particularly the retail hubs like sector 18.” Courtesy Realty Plus

A Complete Experience

06.11.08 (2:40 pm)   [edit]
“NOIDA, with its urban mix of educated middle and upper class clientele, presents the right environment for any retail outlet location,” says Deo Datta Sharma, chairman and CEO of NOIDA Authority. “The market is a wholesome place, which not only gives us a complete shopping experience but also the most sought after eateries for an enjoyable evening out,” adds Lalit Mehta, advertising professional and a resident of NOIDA for several years. “The easy traffic and peace - far from the madding crowd of the capital - is alluring,” says corporate lawyer Anurag Chawla, a resident of Sector 15A. Having developed as a retail hub ahead of other suburbs of Delhi, the Sector 18 market of NOIDA is all set to soon sport further landmarks on its sprawling premises. “The recent addition of the Centrestage Mall, spread over approximately 8,900 sq. mts., and situated next door to the Radisson MBD Hotel, promoted and owned by the MBD Group, has further fuelled the retail activity in the area,” says realty specialist Pradeep Bhatia of Bhatia Brothers and Company, Delhi. Prophesies Datta, “NOIDA will soon be a tourist destination with hordes of Asian tourists making a beeline for the city. We have an amusement park as well as a mall from Unitech planned across more than a million sq. ft. of space, which is all set to take the city by storm. We want this place to be a destination where everybody in the family has something to look forward to.” Courtesy Realty Plus

NOIDA Sector 18– Ultimate Retail Destination

06.10.08 (6:35 pm)   [edit]
Swanky malls, hip hangouts, eateries, and multiplexes make the commercial complex in Sector 18, NOIDA, one of the most happening places in the NCR. Real estate in NOIDA is on the ascending graph and expected to receive a further boost. A large number of corporates in recent years have been looking at NOIDA as a commercial address, which has in turn fuelled the supply in this area. Today, NOIDA is a consumer haven, leading leisure and entertainment players do roaring business here, and the Sector 18 market has emerged as an extremely popular retail destination. Virtually every well-known prominent national and multinational brand has opened shop in Sector 18. Adidas, Benzer, Blackberry's, Bentley, Benetton, City Look, City Palace, Color Plus, Dockers, Ebony, Future Zone, Tekson’s, Galgotia's, Gaint, Gautier, Hallmark, Indigo Nation, Li'l Tomato's, Levi's, Louis Philippe, Store 18, Proline, Reebok, Van Heusen, and more, have jumped on to the bandwagon. Apart from these, food joints like Aroma, Bamboo Shoots, Barista, Bon Bon, Domino's, Kebab Factory, Karim’s, Kathis, Lasagne, McDonalds, Nathu Sweets, Nirula's, Pizza Hut, Punjabi by Nature, Super Stars and Fortune Cookie are all here. Sector 18 now successfully combines the key elements of local market life, typical of the area, with the style of the city - in a whole new world. Chill-out Zone The shopping complexes of Delhi pale into insignificance when compared with the commercial paradise that is NOIDA. Gone are the days when shoppers from NOIDA would make a beeline for Connaught Place or Lajpat Nagar. It is quite the opposite now; the good planning and the alluring atmosphere at Sector 18 pulls customers not just from Noida but from South as well as East Delhi. “This is not surprising, considering that nowhere in Delhi do you find a concentration, in one complex, of all such brands of consumer items and such a variety of cuisines to intersperse your shopping experience,” says Mohamed Mustafa, president of the Sector 18 commercial complex. “Good infrastructure, regular power and water supply, wide roads, a working sewage system, ample parking space, and now better connectivity, have boosted consumers interest in the area,” he adds. On the other hand, well-known real estate developer Getamber Anand, managing director of ATS Infrastructure Limited that is located in the heart of Sector 18 feels that there are several basic flaws in the planning which can be seen now that the area is fully developed. “To put NOIDA on the international map as a commercial hub there needs to be some semblance of aesthetics in this sector. It is not very well kept and there is no traffic discipline. The administration should make it ‘only for pedestrians’ or only allow non-polluting vehicles in the area,” he says. Courtesy Realty Plus

FIVE INFRASTRUCTURE COMPANIES ACQUIRED BY GAYATRI

06.10.08 (3:01 pm)   [edit]
Gayatri Projects is all set to acquire five smaller infrastructure firms in the country, paving way for its inorganic expansion. The company plans to fund these acquisitions through divestment of 49% equity in favour of Australian multi billion-dollar wealth management firm AMP. The latter will bring to the table Rs 200 crore through FDI for the planned expansion of Gayatri Infra Ventures, a subsidiary of Hyderabad-based developer Gayatri Projects. Courtesy ET Realty 06-06-08

ZOOM DEVELOPERS BAGS 3 IRCTC BUDGET HOTEL SITES

06.10.08 (2:58 pm)   [edit]
Zoom Developers have bagged three sites of IRCTC Rail Ratna Budget Hotel project. The three sites — Raipur, Bilaspur and Guhawati hotels — will have budget hotels of 75, 80, and 150 rooms, respectively. "These budget hotels will cater to the growing demand of railway travellers and of the increased demand of tourist and business travellers visiting the cities/ country," said Rameet Trehan, head, business development, Zoom Developers. Last year, in the first batch of the 20 Rail Ratna Hotels, Zoom Developers in consortium with the Royal Orchid Hotels, had won bids for 11 sites and out of the second batch of 10 sites, the first, Bhubhaneshwar whose bid was opened in July 2007 was won by Zoom Developers in consortium with the Toshali Sands Group. With this the total tally of Zoom Developers comes to 15 hotel sites. Courtesy ET 07-06-08

PRS 600 CRORE GENERATED BY DELHI METRO'S SURGING REALTY

06.09.08 (3:40 pm)   [edit]
Delhi Metro has generated Rs 600 crore revenue from the commercial use of its property during the first phase. The actual revenue generation is almost double the target, thanks to skyrocketing commercial property prices and rising demand from retail sector and IT companies. Buoyed by the good response, DMRC officials hope the total revenue from property development would reach Rs 1,000 crore soon. Courtesy ET Realty 06-06-08

$20 BN TO BE INVESTED IN REALTY BY 2010

06.09.08 (3:37 pm)   [edit]
Investment in the Indian realty market is likely to increase to $20 billion by 2010 with a boost from Real Estate Mutual Funds and Real Estate Investment Trust, a recent report said. "The sector, which is growing at an annual rate of 30 per cent and is currently worth $12 billion, will get a further boost from the Sebi's Real Estate Mutual Fund (REMF) and the Real Estate Investment Trust (REIT) regulations," a report by Deloitte said. Courtesy ET Realty 06-06-08

CREDIT CRUNCH STARTS TO HIT PRIME LONDON PROPERTY

06.09.08 (10:59 am)   [edit]
Prime central London house prices are falling at the fastest rate since the early 1990s, data shows. They went down 1.5% in May-the fastest rate of decline since the house price crash of the early 90s, according to estate agent Knight Frank. That takes annual growth to just 12.8%, down from a high of almost 38% last August. Liam Bailey, head of residential research at Knight Frank, said: "Up until April, London appeared to have escaped the worst effects of the credit crunch, but with the mortgage market in growing difficulties, the weakness seen across the wider UK market is now spreading to the prime London market." Liquidly problems have seen lenders scrap cheap deals and cut the maximum amount they will lend and to whom in recent months. Data from the Halifax, Britain's biggest mortgage lender, showed on Thursday that British house prices overall fell a larger-than-expected 2.4% in May. The weakest performance in the prime London market during May was seen in the sub-one million pound sector, where prices fell 2.3% according to Knight Frank. In the one to 2.5 million pound price bracket, price dropped 2.2%. However, at the top end of the market, prices are holding firm: 10 million pound-plus properties saw no change in value. Overall, sales volumes in central London are almost 50% lower year-on-year, but of homes worth more than 10 million pounds are up 40%. Bailey expected prime central London property prices to slide further in 2008, with a 5% drop over the whole year being a "best-case scenario". "With no improvement in the mortgage market, this decline could easily be well into double figures, "he added. Courtesy: The ET 06-06-08

Real Estate Outlook: Positive GDP Growth Rate

06.09.08 (10:55 am)   [edit]
Recession or no recession? That's a key question for real estate because any sort of deep or prolonged recession would choke off all hopes of a housing recovery anytime soon. But last week's big economic number -- positive growth in the national gross domestic product for the second straight quarter -- is the latest sign that this economy still has some fight left in it. Economists define a recession as two straight quarters of negative GDP... so we're definitely not seeing that. No question though: The GDP growth rate is anemic -- just under one percent for the first quarter. But remember that doomsayers last Fall had projected us to be well into a recession by now. Instead, the economy keeps defying the worst predictions: Exports are booming, job growth remains positive, unemployment is at 5 percent. And the National Association of Business Economists is forecasting a much healthier 2.2 percent growth rate by the third quarter. Even new home sales have bounced back for the first time in half a year -- up by 3.3 percent last month, according to the Commerce Department. Mortgage Bankers Association economist Orawin Velz points out that the economic stimulus package is just now beginning to flow through to consumers ... and the stimulus checks "should help lift (consumer) spending growth in the coming months." That's good. Mortgage interest rates continue to be highly favorable for home shoppers. The Mortgage Bankers' latest weekly survey found 30-year fixed rates remain just below six percent on average, and fifteen year rates are around five and a half percent. Home sales are still far below year-earlier levels in many local markets, but economists agree that the recent changes by Fannie Mae and Freddie Mac to ease downpayments and other underwriting restrictions have the potential to stimulate sales in the next several months. Already, there are scattered reports of unexpected sales increases in some markets that had been almost moribund for months. Sales in the Sarasota-Bradenton area on the west coast of Florida, for example, were up five percent last month, and the median sales price increased. Dr. Lawrence Yun, chief economist for the National Association of Realtors, pointed to San Diego, California and Fort Myers, Florida as two local markets that had been in the sales doldrums, but now with lower prices, are racking up sales gains. "Lower pricing and low interest rates," said Dr. Yun in a recent commentary, "are starting to generate results." That's the equation that could move us past the down cycle … very possibly starting sometime in the second half of this year. All details visit website www.propertycafeteria.com Realty Times 05-08-08

INVEST, SELL AND THEN BUY

06.07.08 (2:36 pm)   [edit]
Properties in the metros are literally going out of the reach of common people; the latest is to invest in affordable houses on the periphery, and later on encash these assets to purchase another house in the city. ET realty explores the idea of buying property in the peripherals Meet the new home buyer, who is actually a medium-term investor with a long-term enduser perspective first, an investor on the outskirts of the city, and later, a buyer in the city. Take a look at the case of Sanjit Baijal, a guy in his late twenties who works with a retail company. He wanted to own a house in Delhi itself. Anything which can be called a decent accommodation comes for nothing less than Rs 50 lakhs, whereas, he had only Rs 15 lakhs to spare. The result- he explored options in this range and combed the projects across Delhi NCR. The projects in affordable range were all on the periphery of Delhi, further away from the suburbs. He finally invested at the Ansal Town project at Karnal where he bought a plot of land measuring a little over 200 sq yards for Rs 16 lakhs. "I think I got a good deal - I am happy with the corner location of this plot. I hope to sell it off for good returns, in the next five years, and then buy a decent three bedroom flat within Delhi," he says. As affordable housing becomes the key to sales in a slowing market, key Delhi real estate developers are developing affordable residential property along the National Highway No 1, 2, 8, 10, 24, 58, 65 - left, right and centre! So whether it is Kundli, Sonepat, Panipat, Karnal, Ambala, Chandigarh or Faridabad, Mathura, Agra on National Highway No 2; or, Manesar, Dharuhera, Bhiwadi on NH-8, they all abound in projects in a price range of Rs 15-30 lakhs. What's more, they come with add-ons of lifestyle living. Says Radha,"Delhi is now beyond end users. It is only when one gets lucky with a lottery or a windfall of ancestral property that one can afford to buy a decent accommodation here. The rising interest rates are also not helping anybody." She adds that there is hardly anything available for the middle and the lower middle classes. Most of the affordable properties being launched now are in the peripheral areas where infrastructure is yet to come. Meet another investor-buyer Parikshit Satija, a banker with a private company. He invested with the Ashiana project at Bhiwadi. Parikshit expresses, "How much can a middle class person afford to shell out more than Rs 25 lakhs, today? When I saw Ashianas tag line middle class budget, world-class living, I said this is it." On an average, a 3BHK covering 1275 sq ft area costs Rs 23-25 lakhs and this includes lifestyle features of a landscaped large central lawn, internet enabled apartments, club house along with gym, swimming pool, Jacuzzi, games room, TV lounge and party hall, besides other regular features. But on second thoughts, he was not very happy with the location of the project at Ghaziabad. And since it was only an investment, he surfed more options and the Ashiana Angan project appealed to him immensely. This one was at Bhiwadi, a better destination and at lesser price - a 2BHK of 1200 sq ft was going for Rs 20-22 lakhs. Developers have an interesting take on the new buyer. According to Ansal APIs Kunal Banerjee, President Marketing, "In all these peripheral real estate projects, the client-mix earlier comprised a ratio of 70% speculators or short-term traders in real estate and only 30% long-term investors. The latter would hold on to the property for 2-3 years, just as they would treat their blue chip account or ITC shares. But this was the scenario two years back, when real estate investment reaped immediate returns. In the current situation there are zilch speculators and 50% long-term investor and 50% actual buyer. The affordable properties on the periphery are certainly driving and acting as revitalisers in a slowing down real estate market. Courtesy: ET Realty 06-06-08

FARIDABAD CALLING

06.06.08 (6:15 pm)   [edit]
With Property Rates Rising Steeply Across The Country, It Has Become Increasingly Difficult For People To Own Their Dream Home In Delhi And NCR. At A Time Like This, Faridabad Comes To The Rescue With Quality Houses At Reasonable Prices. Et Realty Finds Out More… Even though food, clothing and a shelter are only the most basic necessities of mankind, with all these fabulous sales on clothing and cheap and quality food dished out by famous restaurants, quality food and clothes are very much within the reach of the common man but, the same cannot be said for a shelter, which is his dream home. Owning a fine home and living a peaceful life is the dream of every common man. However with property rates rising steeply across the country, it has become increasingly difficult for people to own their dream home in Delhi and NCR. Even, the pre-launched projects come almost at the price equivalent to the price of a completed project and further take two to three years for possession. Even in newly developed cities like Indirapuram and Kundli, prices have risen exponentially; taking them out of the reach of common people in these times of overpriced properties in Delhi and NCR, there is a fully developed place near Delhi where people can still by quality houses at reasonable prices. Located just eight kilometers from the Delhi border are sectors 21 A, B, C, D, 45 and 46 in Faridabad. These sectors are places where a person, even today, can buy a flat here at a reasonable price. People have a wrong notion about Faridabad that it is a city with poorly developed infrastructure, bad roads, massive power outages and water shortage. But things have changed over the past few years, which have seen a drastic change in the infrastructure and living conditions at Faridabad. Especially, in the sectors of 21C, 46 the living conditions and infrastructure have improved drastically and are in many areas better than many places in Delhi and NCR. These sectors are just 16 km away from Ashram and take 15 to 20 minutes drive from GK-I & II to reach these Sectors. It takes a maximum of 20 minutes to reach sec 46 from South Delhi, a time and distance that no other place can boast off in NCR. Sector 21C and Sector 46 are well connected by Mathura Road and they are connected through another 4-lane Surajkund Road. In South Delhi, where price of land ranges from Rs.3 lakh to Rs.4 lakh per sq yard, the price of plots in these sectors ranges from Rs.22,000 sq yard to Rs.35,000 sq yard. In areas such a Gurgaon and Noida where plot prices range from Rs.70,000 to Rs.90,000 per sq yard, and flats from Rs. 50 lakh to Rs. 80 lakh, a 3-bedroom group housing flat here can be purchased for almost Rs. 45 lakh. Thus, the amount of money a person will spend in buying a flat In Gurgaon or Noida will fetch him a whole house in these sectors. These sectors are well developed and include all basic amenities they are ideally located between Gurgaon and Noida. Nitin Kapoor, a software engineer says, “I work in Gurgaon and my wife works in Noida. Property rates were quite high in South Delhi. So, we bought a plot and constructed a house in Sector 46, Faridabad. Now, it takes me and my wife only half an hour to reach office with no commuting problems, and further, our dream of living in an open pollution free environment has also come true.” The prime sectors among these are Sec 21C and Sec 46. People can buy plots between 160 sq yard and 1000 sq yard in the price range Rs.25, 000 - Rs. 34, 000 per sq yard. These sectors contain markets. Schools and Hospitals Sec 21A has bigger plots - 500 sq yards to 1000 sq yards. It is ideal for the construction of farm houses and very big homes. The average flat in these areas costs around Rs.2,400 – 2,800 per sq ft. residential apartment are available in sizes ranging from 1,200 to 2,200 sq ft. A two bedroom apartment costs around Rs. 29 Lakhs, while a three bedroom flat can be bought for Rs.46 lakhs. Omaxe has come up with two housing projects on Surajkund Road – Omaxe Green Valley and Omaxe Hills. Omaxe Green Valley caters to high-end luxury apartments available at Rs.6, 000 per sq ft, whereas in Omaxe Hills non luxury flats are available at Rs. 2, 8000 per sq ft. In Sector 21-D, One finds a lot many group-housings, beautifully constructed and ready for possession. These apartments are priced between Rs, 29 lakhs and Rs.60 lakhs. Over the past two years, property rates in these sectors have increased by two to three times. A person from Royal Estate agency explains, “Past two years have seen a lot of high-profile people moving to these sectors, thus increasing the prices considerably. Though property prices are falling across India, prices over here have seen an appreciation of 22-25% in the past providing around Rs.250 crore for complete development of roads in Faridabad and the power ministry assuring people and industries of Faridabad with adequate power supply, it will be ideal place to live in. Courtesy ET Realty 06-06-08

DLF FY08 NET UP 400%

06.06.08 (12:44 pm)   [edit]
Real Estate major DLF on Wednesday announced a consolidated net profit of Rs 7,812.03 crore for the financial year ended March 31, a four-fold growth over the year-ago period. The company had a net profit of Rs 1,933.65 crore in 2006-07 fiscal, DLF said in a filing to the Bombay Stock Exchange. The total income rose to Rs 14,683.91 crore from Rs 4,053.3 crore in 2006-07. The board has declared a dividend of 200% at the rate of Rs 4 on shares of face value Rs 2 for 2007-08 fiscal. For the year ended March 31, DLF reported a net profit of Rs 2,574.59 crore, over six-fold rise over the year-ago period. The company had a net profit of Rs 406.91 crore in FY07. The stand-alone total income rose to Rs 6,058.46 crore in FY08 from Rs 1,429.49 crore in the previous fiscal. Shares of DLF were trading at Rs 574.15 at the BSE, down 1.43 per cent in the early morning. Courtesy: ET dtd – 05-06-08

BPTP GETS MORE TIME TO PAY FOR NOIDA LAND

06.06.08 (12:41 pm)   [edit]
Delhi-Based real estate developer BPTP has again received a month's reprieve to deposit the first installment of the Rs 5006-crore Noida land deal — the largest ever land acquisition by a private developer in the country. Now the deadline for the company to deposit the first installment of Rs 1,250 crore with the Noida authority is July 12, which if missed will lead to cancellation of the deal. BPTP has already missed the original April 12 deadline. BPTP chairman Kabul Chawla told ET, "We will make payment in the next three days. We have enough funds." BPTP, which bagged the 95-acre Noida land deal beating larger rivals DLF, Omaxe and Ansal, had to pay the first installment by April 12. The rest of the payment was to be made in sixteen six monthly installments, along with an interest of 11% compounded annually on the due amount. Unable to pay the first installment, BPTP sought and was granted 60 days' relief, which ends June 12. The company has now got the deadline extended to July 12. BPTP will have to pay an interest of 14% on the due amount for the extended period. In the case of cancellation of the deal, BPTP will have its earnest deposit of Rs 100 crore forfeited by the Noida authority. "There is a provision for 90 days extension and that's why we sought it. There is no problem of fund raising," Mr. Chawla said. Following the land deal, the company has raised $160 million (approx Rs 640 crore) through stake sale in its SEZs to Citigroup's realty arm Citi Property Investors (CPI). The money, however, is not enough to pay for the land deal. Mr. Chawla didn't disclose from where he had raised the additional funds to be able to make payments in three days. The company's reserves are likely to be too small to fill the gap. BPTP clocked a turnover of around Rs 1,100 crore and a net profit of Rs 220 crore in FY08. The company is said to be in talks with more international investors to raise debt to fund the land deal. The consortium comprising BPTP and its three subsidiaries had offered a rate of Rs 1, 30,207 per sq meter to win the bid for 95-acre land on March 12. Courtesy: ET dtd – 05-06-08

INTEGRATED TOWNSHIPS TO TAKE OFF IN A BIG WAY

06.05.08 (5:23 pm)   [edit]
Integrated townships are the next big thing in the Indian real estate sector; it seems, with a quiet growth in the number of planned projects that blend in a lot of things to make ambitious projects realty successful and sustainable. As land prices peak in key cities and basic infrastructure lagging to cope up with rising population, developers are building cities away from the city to provide quality lifestyles. These are being aided by the government's policy that allows foreign direct investment (FDI) in such townships. Almost all major developers under- stand the huge potential of this concept and are investing heavily with intent of emerging as big asset managers in the coming years Rakindo Developers, a joint venture between RAKEEN, a Joint Stock Global Business Company promoted by the Government of Ras Al Khaimah, UAE and Chennai-based mineral conglomerate Trimex Group is launching an integrated township at Coimbatore towards the end of 2008. Gulf-based ETA Star and Mumbai-based Normal Lifestyle are among those setting up integrated townships. There are several townships already under way, including those by Bangalore-based Prestige Constructions in Whitefield on the city's suburbs and L&T South City's project on the Old Mahabalipuram Road near Chennai. Hyderabad and Pune are other cities where similar projects are in the works. The $1.5 billion (Rs 6,000 crore) 'Kovai Hills' project will be developed over 1,000 acres with an 18-hole golf course as the centrepiece. Rakindo said exclusive villas at this theme- based town- ship would be offered to buyers on 'Own by Invitation Only.' The project will have about 22 million square feet of constructed space. Prasad Koneru, Managing Director, Rakindo Developers said, "Our vision is to create modern theme-based townships which will offer holistic lifestyle and world class amenities". Rakindo is committed to investing $5 billion in India over the next five years and plans to build about 50 million square feet, on a conservative estimate. The company will in the course of the next 12 months announce a slew of new projects in Kerala, Tamil Nadu and Karnataka. Similarly Dubai based ETA Star's Indian subsidiary is also developing integrated large townships in the south and recently announced plans to enter the northern Indian markets of NCR Delhi and Jaipur as well. Mumbai-based real estate company Nirmal Lifestyle has announced plans to set up five integrated townships including three near Mumbai within the next three years. This is the part of the company's long term plans to set up 20 integrated cities across India. In the first phase, the company would invest Rs 20,000 crore. "We are targeting house buyers in the bracket of Rs 20 lakh to Rs 1 crore who otherwise find it difficult to buy a house in Mumbai," said Dharmesh Jain, Chairman & Managing Director, Nirmal Lifestyle. Each township called "Lifestyle Cities" will be located on 300-1,000 acres of land with 30 minutes traveling distance from the nearest existing main city. Mumbai-based Oberoi Constructions, which is not connected with the hotel chain of the same name, after having developed Oberoi City in Mumbai's western suburb of Goregaon, is planning to set up similar cities in other parts of the country "We want to develop cities within cities which will cater to all the requirement of the residents and they need not have to move out unless required. These cities will provide high class living for the residents," said company official Vikas Oberoi. Courtesy: - HT, dtd: - 12th May 2008

EMI HOLIDAYS DRIVE FLAT HOUSING SALES

06.05.08 (12:42 pm)   [edit]
Faced With declining demand for properties, real estate companies are courting buyers with a new offer: EMI holidays. This trend is catching up in cities like New Delhi and Bangalore where real estate markets face stagnation. Under an EMI (equated monthly instalment) holiday scheme, the buyer only needs to make a down payment of 10-15 per cent of the flat's cost and does not need to pay EMI till he gets possession. However, the buyer has to arrange the loan and the builder will pay the interest till the flat is handed over, in about 18-24 months. According to a recently released report by Citigroup, developers like Parsvnath, Uppal's, RPS Group, Gaursons India, Triveni Infrastructures and KDP Infrastructure are offering this scheme in select projects in NCR Delhi. "We see these schemes as substitutes to discounts for boosting transaction activity," Citigroup analysts Ashish Jagnani and Aditya Narain wrote in their report on the Indian realty sector. "While this is expected to indirectly impact developer realisations by 18-20 per cent, it will provide near-term funds for construction. "Big developers, who are still flush with funds, are yet to join the bandwagon. Developers, which are facing credit crunch due to lack of funding from private equity players, appear to be exercising this option. "We are giving the monthly installments towards loan, provided the customer has opted for down payment and not construction linked and the loan tenure is for 20 years," said Pradeep Jain, chairman and managing director, Parsvnath Developers. The schemes is aimed at insuring the timely delivery of flats besides providing them (buyers) the comfort of not paying rent as well as monthly installments simultaneously, he added. Others are packaging discounts in the form of EMI holidays. "We are giving a discount of 15 per cent for down payment customers, which is industry trend," said Rahul Gaur, managing director, Gaursons India. "In case customers borrow from financial institutions, we are offering discount equal to 24 months monthly installments through post-dated cheques." The situation is different in Mumbai, which is yet to see this trend, but which experts believe should make an entry into the city soon. "It is yet to be implemented in Maharashtra but several builders are thinking to start offering EMI holiday scheme here," said Mahesh Mudda, chairman of the Mumbai chapter of Builders Association of India (BIA). Most developers will hold on to high prices in the short-term. Things may change in the medium-to-long term, according to real estate industry experts. However, experts also warn that buyers should wait before committing for such a deal as prices are set to crash in the next few months. Developers are holding on to their higher price levels despite a dip in demand for properties. "Buyers are advised to understand this trend before buying a house, even in the light of special offers like EMI holidays," said Raminder Grover, CEO, Sandalwood Residential Services, Jones Lang Lasalle Meghraj a global rea1estate consultancy. "It is possible that the area they have chosen may see a drop in rates over the next six to eight months." According to Manohar Shraff, a real estate agent in Navi Mumbai, Diwali could be the right time to test the patience level of builders. "Small builders here are in the lurch but they will hold on to the price line till Diwali," he said. Courtesy: HT dtd. 30-05-08

UNDERSTAND A CONSTRUCTION CONTRACT

06.04.08 (2:47 pm)   [edit]
Constructing a house is a cumbersome process. Many people prefer to construct a house rather than purchase a built house. A plot is purchased and the house is constructed according to one's requirements and lifestyle. There are two ways to get the house constructed. One option is construction on a turn key basis. In this case, the owner and the builder enter into a contract wherein the contractor completes the entire construction along with fixtures and fittings, and hands over the key to the owner on completion. The owner has no other role to play, except to make the payment and to enter the house on completion of the construction. The other option is to enter into a labour contract. In this case, the owner enters into a labour contract with the contractor. The material is purchased and arranged by the owner himself. Only the labour is supplied by the contractor. This is more suitable for people who want to maintain strict standards. Whatever mode is chosen, as a first step, it is essential to formalise the arrangement. It is important to enter into a contract with the contractor. The mutually-agreed terms should be penned in black and white. The terms and conditions should be written down and signed by both the parties. In case of construction contracts, it is better to have a two part contract. The first part of the contract relates to the structure to be built. The second part of the contract relates to the fixtures, fittings and furnishings in the house. In order to prevent disputes, ambiguities and confusion, the contract should specifically cover the terms. These include, among others, the parties involved, terms related to quality of material to be used, timeframe for completion of various phases of the house, payment terms according to which the payment needs to be made, escalation clauses, penalty terms, liability of respective parties, authority to appoint or subcontract work, who will provide the material, specifications of fittings to be used, timelines for inspection etc. Usually, construction costs are quoted on a per square foot basis. You may have the structure built on a per square foot basis. The contractor would quote on the basis of the structural and working drawings prepared by the architect. For the part related to fittings, fixtures and furnishings, you should get a quote on an item rate basis. The contractor gives a quote after going through the specifications and quantities needed. All specifications regarding the make, brand and size should be mentioned specifically. It should be ensured that the base rates for the tiles used, granite, marble, glass, lights, tubes, pipes, windows, grills, basins etc are mentioned separately. This gives flexibility to the owner to build as per his budget, resources, requirements and tastes. Further, the owner can safeguard his interests. The advantage of having this kind of clarity is the owner has the freedom to choose. He may buy any quality of flooring - He can choose whatever quality of marble he wants and at whatever price. He can deduct an amount of Rs 90,000 from the payment to be made to the contractor towards the material supplied by himself (Rs 150 x 600 sqft). The same logic applies to other items of furnishings, fixtures and fittings. The contract should be drafted with as many details as possible and should be specific. A careful drafting of the contract will prevent disputes and confusion at a later stage. http://www.propertycafeteria.... ET Realty, May, 30,2008

INDIAN REAL ESTATE PRODUCTS SHOWCASED IN DUBAI

06.04.08 (12:38 pm)   [edit]
Around 35 Indian companies participated in the three-day Indian Realty Expo 2008, which concluded in Muscat on Saturday. Organised by the Maharashtra Chamber of Housing Industry (MCHI), the exhibition showcased some of India's prestigious properties including some high-end properties targeted at high net worth individuals and non-resident Indians. Indian Consul to Dubai Partha Ray said a number of NRIs and people of Indian origin, especially professionals, in the Gulf and other countries are being attracted by the rapidly growing economy of India. "It's all about living in your own country the Khaleej Times quoted Ray," as saying. There are about 1.5 million Indians in the United Arab Emirates (UAE) and 5.5 million across the Gulf region. MCHI chief executive Zubin Mehta said his company expected to sustain growth in the number of transactions closed through the exhibition. MCHI, which has been holding the show in Dubai twice every year since 2002, saw total sales of 442.4 million dirhams (Rs.500 crore). The next show will be in October. Mehta said the most sought-after properties were in India's major cities, among them Mumbai, Bangalore and Kolkata. The value of property has appreciated by 60 percent in urban centres and 40 percent in the suburbs, he told the local newspaper. Courtesy: - HT, dtd: - 12th May 2008

GODREJ PROPERTIES TO RAISE RS 600 CR

06.03.08 (6:57 pm)   [edit]
Godrej Properties Ltd, the real estate arm of the diversified Godrej group, on Friday filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI). The company wants to raise Rs 600 crore through an initial public offering (IPO). Godrej properties proposes to issue 9,429,750 equity shares of Rs 10 each through 100 per cent book building process to fund its forthcoming projects. The equity dilution by promoters amount to 13.5 per cent of the post issue paid up capital of the company. Godrej Industries and the Godrej family led by Adi Godrej hold majority stake in the company The parent company Godrej Industries Ltd, currently holds 81.41 per cent of the equity share capital of Godrej Properties. Godrej Industries Limited is the listed flagship company of the Godrej Group. The IPO is expected to be completed by September 2008. The company has been preparing to get listed since October last year but poor market conditions forced it to defer the launch of the IPO. In January this year Emaar MGF had to withdraw their Rs 6,000 crore IPO due to a market melt down. This could be the first real estate IPO since then. Godrej Properties Ltd is in the business of real estate development including residential, commercial and township development. The company currently has real estate development projects in 11 cities in the country at various stages of development. As of May 15, 2008, it has completed a total of 19 projects consisting 13 residential and six commercial projects, aggregating to approximately 3.62 million square feet of area that can be developed. Anuj Puri, Chairman and Country head Jones Lang Lasalle Meghraj, JLLM, a global real estate consultancy said that the market would certainly welcome good quality stocks like Godrej Properties. "Despite the depressed sentiments, the market has appetite to accommodate good quality stocks. The market needs such (Godrej properties) developers to get listed. All their developments are of superior quality and the entry of corporates such as Godrej will bring transparency in the real estate sector, because these people know how to effectively run businesses." Godrej Properties' land reserves currently stands at 404 acres aggregating to approximately 78.87 million square feet of area that can be developed. The proceeds of the IPO will be utilized for acquisition of land, completion of on going projects and repaying debt. For the financial year ending March 2008, the company made a profit after tax of Rs 75.9 crore on an income of Rs 227.5 crore. The tota1net worth of the company stands at Rs 242.1 crore. The net asset value per share as on March 31, 08 stood at Rs 41.24. ICICI Securities and Kotak Mahindra Capital are the book-running lead managers to the issue. Courtesy HT. dtd . 31-05-08