NEW DELHI: Last week, all parties expressed their consensus on Land Acquisition Bill. However the land bill had to undergo many amendments to receive the consensus of all parties. Continue reading
DELHI-NCR: Though Vasundhara Enclave Delhi has been expected to become one of the hot residential locations, it still remains as an unpopular residential destination. Property prices are remaining more or less stable. Continue reading
Is Real estate losing its charm? Whether it loses its charm or not, the investors are not fond of investing in the construction sector now. One of the main reasons for this is the fall of gold prices. Continue reading
MUMBAI: Steelcase, the US based furniture major, has leased 50,000 sq. ft. of office space in Chakan. IndoSpace Chakan, joint venture of Everstone Group and Realterm Global. The project is executed by Realterm Everstone Development Management Ltd, their joint group. Continue reading
NEW DELHI: Growing vacancy rates has affected the shopping malls. As per some recent reports the vacancy rate of office space in shopping malls is 30% in Delhi-NCR and 25% in Mumbai. Continue reading
HYDERABAD: Recently the government has initiated some new SEZ policies. The government, by taking away the minimum land requirement of 10 hectares of land for developing IT and ITES SEZ, has taken a landmark decision which will boost both realty and IT sectors. The new SEZ policies will be enforced in top seven cities with immediate effect. Continue reading
New launches fall in Mumbai.
MUMBAI: The first quarter of 2013 witnessed a sharp fall in the number of new launches in Mumbai. The new figure however is compared to the number of new launches in the last quarter of 2012.
The last quarter which is the season of festivals like Diwali, usually have larger number of new launches. Liases Foras reported that the number of new launches were the maximum in this quarter across the country.
Managing Director of Liases Foras Pankaj Kapoor said that Mumbai has only a fewer new launches compared to the last quarter of 2012. The developers are postponing the new launches due to the weak home sales.
Home sales are yet to pick up in the city. The demand for housing units is still not so impressive. This negative market sentiment has been considered as the reason which forced the developers to postpone their new project launches. Continue reading
Valmark Group plans to raise Rs.125 Cr for investing in real estate.
BANGALORE: Valmark Group, a Bangalore-based real estate firm, is mulling over raising a fund worth Rs.125 Cr. The main focus of the fund will be Bangalore realty.
Valmark Infra and Realty Trust plans to invest in the residential market of South Bangalore. The group expects a minimum return of 15%. The fund will be invested for developing six to seven projects in Bangalore.
The investment will be for three to five years. The investment manager for the fund Jaswant Munoth said that Valmark Group expects a return of up to 36%.
Mr. Munoth added that the investment will be extended to two more years in case if there is no chance for an easy exit after five years. Continue reading
Is property market safe for the investors to tread on?
NEW DELHI: The fall of gold prices has affected the jewelers and the gold investors. Now the next will be property market, the industry experts express their fear.
The unpredicted and unforeseen fall of gold prices has affected not only the gold jewelers but also those who had investments on gold. Rising prices of gold had wooed the investors.
If the gold prices in 2001 were around Rs.400 per gram, it has gone to Rs.3000 per gram in the beginning of 2013. It means that the gold prices have gone up by 1500 percentages within a span of 12 years. However within a week the prices fell by around Rs.1000 per gram.
In the same way the property prices have been shooting up in all the cities and villages. Along with the fall of gold prices, there can be a fall of property prices.
Though the property market denies the chances of a price correction, the possibilities are not to be overlooked. Continue reading
Air India prefers government entities while leasing its properties in Delhi.
NEW DELHI: Air India plans to lease out its real estate assets, located on Baba Kharak Singh MargBaba in Delhi. However the airline has expressed that it would not sell its properties to any private entity but will lease them to government entities.
While planning to lease out its real estate assets in Delhi, Air India has said that the preference would be given to government entities. ONGC, LIC and SIB have showed their interest in leasing the property of Air India.
Private sector companies may not get a chance to lease the property of Air India which prefers government entities to private sector companies.
As part of its monetization program, Air India will lease around 1.7 lakh sq. ft. of office space in central Delhi. The property is located on Baba Kharak Singh Marg.
Though many private sector companies have approached the national carrier for leasing, the airline authorities have said that the preference will be given to state-owned entities. Continue reading
NCR residential market is affected by construction delay.
DELHI-NCR: The prospective buyers are nailed by delay in projects. As per a recent report by Knight Frank states that new launches in the Delhi-NCR has fallen by 31%. It has adversely affected the NCR residential market.
As per the report, NCR residential market has nearly 1,40,000 unsold inventories. Out of this, over 27% is under construction.
As per the Knight Frank India report the 33,500 units were launched in the second half of 2012-13. This shows a fall of 31%. Global property consultant firm warns that the launches will see slowdown in the coming months too, affecting the largest residential market.
Developers are finding it really hard to complete the projects. The escalating prices of raw materials make construction costlier. This prompts the developers to invest more. Difficulty in finding sufficient fund is thus another reason for delayed projects. Continue reading
Gurgaon is one of the top realty investment destinations in the NCR.
GURGAON: There are many hot realty destinations in Delhi-NCR. Noida and Greater Noida, Gurgaon, Ghaziabad, Faridabad, etc. are some of the most popular property destinations in the NCR. However the most popular one among all these hot destinations is Gurgaon.
A recent report by Bank of America Merrill Lynch report stated that home sales in Gurgaon have fallen in the first quarter of 2013. It adds that home sales have picked up across the subcontinent.
Home sales picked up because builders launched new projects in lucrative prices. Discounts were offered. The situation was all the more boosted by the expected rate cut on home loans.
Though home sales in Gurgaon did not pick up, the property prices are not affected. The lower demand for housing units has, in fact, no effect on the home prices. Prices rose during the period by 4 to 5%. Continue reading
HUDA takes the time limit for construction on allotted plots.
GURGAON: Haryana Urban Development Authority has taken away the deadline, the time limit, for finishing minimum construction in the allotted residential and commercial plots. Commenting on the new decision of the HUDA, a spokesperson said that there will be no time limit for completing the construction.
As HUDA has taken away the time limit, the allottees will be free to complete construction according to their financial stability. Earlier they were supposed to complete minimum construction within a couple of years from the possession-date.
The HUDA spokesperson added that after 12th year, the expiry period, further extension can be attained by paying the double the rates. However this will not be applicable to the plot sizes which are up to 100 sq. m. or less. Continue reading
Maria Sharapova is one of the ambassadors of a branded homes project.
BANGALORE: Owning a home worth Rs.10 to Rs.25 Cr is nothing impossible for any HNIs or top class people. Those who have enough to spend on homes are now demanding branded homes.
Yes, the demand for branded homes is increasing in India. This is why the builders are running after international brands. Some of the developers have successfully tied up with some international brands.
The sluggish real estate market and fall of home sales prompted the Indian developers to seek some other ways to woo the buyers. They find it best to introduce some international figures to promote their projects.
Homestead developers tied up with Maria Sharapova and Michael Schumacher. Both the tennis queen and the F1 legend will endorse one each project of Homestead.
Both Maria Sharapova Tower and Michael Schumacher Tower are sports oriented projects. Both these Homestead projects are located in Gurgaon.
It means that the concept of luxury has changed over the times. If earlier it was all related to some amenities and facilities, it is now no more related to amenities and facilities. Continue reading
Essel plans to raise Rs.1000 Cr for investing in residential sector.
MUMBAI: Private Equity wing of Essel Financial Services Ltd has already raised Rs.200 Cr. The fund will be invested in the real estate sector. Essel Group plans to develop housing projects in top cities across the subcontinent.
Private equity in real estate (PERE) is increasing in India. 2012 saw 32 PERE investment deals. Nearly PERE Funds worth $464.26 million was invested in last year. This is well above $310.88 million in 2011 which saw only 15 such deals.
The PE wing of Subhash Chandra-owned Essel Group plans to launch a Rs.500 Cr fund. The group also has plans to raise another fund of the same amount. The fund will be raised from domestic investors.
Essel Financial Services CEO and MD of Amit Goenka said that developers raise huge demand for capital. He added that most of the projects are stuck, due to the lack of capital. He finds delay in approvals as another reason for the stuck projects. Continue reading
Home rentals will rise in top cities due to the shortage of supply.
BANGALORE: In all the top cities of India it is impossible for any middle income class person to own a home. The main reason is higher property prices. Yet, the increasing demand and shortage of supply, etc. too play their roles. Adding all together the home rentals in cities are expected to rise sharply.
Rental homes remain the possible option for a majority of residents who have migrated from other rural areas or tier II cities to top cities. Higher flow of population causes more demand for rented homes.
However there is a mismatch between the property price hike and the hike of home rentals. While property prices have shot up many doubles, the rise of home rentals was down by three to five percent down. (Compared only in proportion to the property price hike) Continue reading
CREDAI NCR to regulate property dealers in the region.
NEW DELHI: Confederation of Real Estate Developers Association of India, the apex body of real estate developers, has decided to regulate the property dealers in the Delhi-NCR region. For this purpose, CREDAI NCR Chapter has already asked its member developers to include both salable and carpet area in their brochures.
The apex body of developers has been thinking over how to boost the home sales. The body found out that there are many scrupulous property dealers who sell the properties by providing misleading and wrong features.
To control the property dealers, it has asked its members to include both salable and carpet areas.
CREDAI NCR also plans to introduce lock-in-period for resale. It also plans to impose higher transfer charges as well. These measures are expected to impact on the property dealers. Moreover it will boost the sentiments of end users.
Amrapali Group’s CMD Anil Sharma has been elected as its new president of CREDAI NCR. His term is for three years – from 2013 to 2015. Continue reading
Shilpa Shetty enters real estate sector by launching Groupco Developers.
MUMBAI: Bollywood actress Shilpa Shetty is thinking of stepping into real estate sector. The Bollywood Diva has launched a Groupco Developers, a real estate development company.
Groupco Developers Group has been launched in partnership with Hem Tejuja. The group aims to focus on residential development. The group plans to develop housing projects in collaboration with land owners.
Commenting on the launch of her real estate company, Shilpa Shetty said that she wanted to make the lives of people happier. She already has diversified business entities in the fields of sports, health and entertainment areas.
The idea which motivated the actress to enter into the realty sector is the hard-effort of the middle class people to own a home. Despite their tremendous effort, they remain unable to own a home. Continue reading
The opening ceremony of DAMAC Towers by Paramount, one of the most noticed projects of DAMAC Properties.
DAMAC Properties is pondering over having an investment in India. The Dubai-based private developer will invest $1Billion for developing realty projects.
DAMAC Properties has informed that they will be soon launching the second phase of its $1Billion project. Under the second phase luxury hotels and serviced residences will be developed.
DAMAC Towers by Paramount is on its way to completion. The premium luxury hotel tower is being developed in the prime location in Dubai. The project is located in the Burj Area in the same location of the world’s tallest tower Burj Khalifa Dubai.
The tower comprises 540 prime Paramount Hotel and Residences. Additionally there are 1000 units of DAMAC Maison – Paramount co-branded serviced hotel residences in the tower.
Indian investors are expected to invest in the realty projects of DAMAC properties.
DAMAC Towers by Paramount is a joint venture between DAMAC Properties and Paramount Hotel & Resorts. The project was presented in Delhi and Mumbai in the last week.
DAMAC Properties’ Managing Director Ziad El Chaar said that the project received good response from the Indian investors. He added that Indian investors make a good percentage of their clients.
He opined that there is a deep love for Hollywood movies among Indians. So by partnering with one of the well-established Hollywood movie houses, the group aims to attract investors from India.
This unique project is one of the best investment options. It is noticed for its intrinsic value appreciation. DAMAC Maison will manage the 1, 2 and 3 BHK serviced hotel residences. DAMAC Maison is the hospitality division of DAMAC Properties.
Fully-fitted kitchens and other services make these serviced hotel residences more favorites. Other services include housekeeping, valet parking, concierge, in-room beauty treatments and round the clock kids club, and lots more. All the more the owners will have the option of keeping their residences on rent while they are away. It thus lets them have a source of income as well.
MCHI-CREDAI Property Expo receives good response.
MUMBAI: The first two days of MCHI-CREDAI Property Expo 2013 saw huge numbers of prospective buyers visiting the property show. It shows that the demand is not much affected by the sluggishness of the realty market.
Nearly 25,000 prospective buyers visited the property fair on Friday. This number of property buyers have really spirited the builders.
Over 15,000 residential properties across Mumbai Metropolitan Region (MMR) are showcased in the four day fair. The fair has properties located in Navi Mumbai, Pune and Thane.
The buyers showed keen interest in the properties located at Dombivli and Andheri too. Gundecha, Hubtown and Lodha developers have projects in these areas.
Those who were looking for investment options also visited the fair. Panvel and Thane remain the favorite spots for the investors.
Most of the properties showcased at MCHI-CREDAI Property Expo 2013 were offered with some discounts. Prices for some projects however remained the same. Continue reading
Will Subrata Roy Sahara have a chance to smile when Securities Appellate Tribunal hears them?
MUMBAI: Sahara –SEBI case is yet to get another twist as the pleas of Sahara firms against the market regulator is to be heard by the Securities Appellate Tribunal.
SAT will hear four petitions filed by Subrata Roy, the chairman and the managing worker of Sahara, two other Sahara firms and their top executives.
Subrata Roy Sahara has pleaded with Securities Appellate Tribunal against the market regulator which has attached the assets of Sahara groups and the top executives.
The Securities Appellate Tribunal will hold a “preliminary hearing.” The petitions of Sahara firms and the top executives will be heard in the meeting. Continue reading
Subrata Roy Sahara was questioned by SEBI.
MUMBAI: On last Wednesday, the Securities Exchange Board of India questioned Subrata Roy Sahara and three other directors. Though the main thrust of the questioning was to find out the details of Sahara assets, no information is out yet.
Sahara chief and the other directors have presented the details of their personal assets. A Sahara Group press statement which was released after the SEBI questioning said that Subrata Roy Sahara has only Rs.3 Cr worth personal assets.
Earlier the market regulator had warned that they would sell the seized Sahara properties if the Sahara Chief and the directors did not appear in front of them on April 10.
The seized properties include Aamby Valley, a posh project near Pune, and some land parcels in Delhi, Gurgaon and Mumbai.
Ashok Roy Choudhary, Ravi Shanker Dubey and Vandana Bhargava, the three other directors of Sahara Group, were also questioned. Continue reading