Tag Archives: Goa

Goa real estate market: Young professionals are buying more and more villa properties due to the appealing rental yields

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Gated villas in Goa are an appealing investment option for young professionals due to the segment’s attractive capital appreciation and rental yields. Grade A locations like Anjum, Arpora, Baga, Calangute, and Candolim have seen a 22% capital appreciation in villa prices in the FY 2023-2024, even though the return on rentals is only about 5-8%. 

According to data supplied by Savills India Research, some of the newly built villa properties in Goa are priced between Rs 7-10 crore, comparable to apartments in South Delhi and South Mumbai. 

Younger professionals are increasingly relocating to Goa, particularly from large cities like Bengaluru, Delhi, Mumbai, and other well-known cities. According to the data, these new residents frequently work in creative industries or are digital nomads looking for a better work-life balance. 

According to Savills India’s research, buyers are mainly people in their 30s to 60s, including business owners and salaried professionals. These purchasers seek wealth diversification opportunities with gross yields of 10-12% annually, drawn by the prospect of capital appreciation and rental returns. 

It was evident that buyers of the second homes were not only end users but also retail investors looking for both capital appreciation and rental returns due to the emergence of asset management companies and hospitality operators managing individual properties. 

Savills India’s gated villas with three to four bedrooms and sizes between 2,000 and 4,000 square feet are becoming increasingly popular, according to Savills India. Savills India research provided data indicating that the plot sizes of these gated villa projects range from 190 to 400 sq m. 

Villa sizes decrease as a result of rising land costs. 

Due to higher land prices, the standard size of villas in Goa has fallen over the past five years from 500 square meters to 250 square meters, according to the data. 

Although still in demand, premium views are becoming increasingly rare, and investment goals frequently take precedence over end-use goals. According to the data, Assagaon and Siolim are popular with lifestyle-conscious buyers who value address and quality over beach access, even though beach proximity is still preferred. 

While larger properties are still available in emerging areas, the average size of a home in prominent locations has decreased to 300 square meters. The data indicated two primary buyer categories: end-users, professionals, industrialists, those looking to deploy capital gains, and investor-aspirational buyers. 

High rental income from vacation rentals in well-liked micro markets gives investors a competitive return on investment and a consistent. Families and groups are increasingly choosing private villas, according to the report. 

This is how Goa’s villa capital values compare. 

During the fiscal year 2023-2024, villa prices in grade A locations such as Anjum, Arpora, Baga, Calangute, Candolim, Vagator, Morjim, Assagao, Siolim, Mapusa, Pilerne, Reis Margos, Caranzalem, and Dona Paula– went up by 22%. The average capital rate in Q2 2024 was about Rs 25,504 per square foot, while in Q2 2023 it was about Rs 20,914 per square foot. They were Rs 15,6667 per square foot in Q2 2022. 

In the 2023-2024 period, prices at Grade B locations like Aldona, Moira, Nachoinola, Panjim, Chapora, Nerul, Mandrem, Parra, Saligao, Verla Canca, Saipem, Guirim, Tivim, Bicholim, Penha de Franca, Sangolda, and Bambolim changed by 30%. Rs 17,286 per square foot in Q2 2023 and  Rs 22,410 per square foot in Q2 2024. The cost of a villa in Q2 2022 was Rs 14,564 per square foot. 

As a component of Goa Home Fest 3.0, we offer a venue where sellers can highlight their finest properties and buyers can look for properties that meet their needs. It includes more laid-back coastal areas like Nachinola, Moira, and other North Goa neighborhoods, alongside more upscale ones like Anjuna, Vagator, and Candolim. It also includes ready-to-move-in and under-construction homes in Goa. According to Shveta Jain, MD of Savills India’s Residential Services division, the showcase highlights Goa’s rich history and culture in addition to independent bungalows and Portuguese homes. 

A fascination with commercial property 

Goa’s market for commercial real estate has been expanding along with its growth and tourist appeal, according to the data. 

Goa’s transition from tourist destination to luxury real estate haven

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Goa, once known for its sandy beaches, vibrant nightlife, and as a popular tourist destination, is undergoing a remarkable transformation. This coastal paradise is now an appealing option for wealthy Indians investing in luxury real estate, transforming it from a vacation destination to a prestigious investment haven. 

The Change in Investment Motivations 

Lifestyle upgrades have traditionally fueled real estate investments in Goa. Buyers were primarily drawn to the region’s picturesque landscapes, laid-back lifestyle, and distinct cultural blend. However, recent trends point to a significant shift in investor motivation. Capital appreciation has now surpassed lifestyle and distinct cultural blend. However, recent trends point to a change in investor motivation. Capital appreciation has now surpassed lifestyle as the primary driver of real estate investment in Goa. This shift represents a broader return of investors to the market, fueled by the prospect of high returns on investment. 

Why go to Goa? 

Several factors contribute to Goa’s growing importance as a real estate hotspot. 

  1. There is a strong intrinsic appeal to Goa, despite capital appreciation. The picturesque coastline, lush greenery, and serene environment continue to attract buyers seeking a peaceful and luxurious lifestyle. 
  2. Economic Growth and Infrastructure Development: Goa’s economy has been steadily growing, supported by improvements in infrastructure. Enhanced connectivity through new highways, and bridges, and the development of a second international airport in Mopa have made Goa more accessible, further boosting its real estate market. 
  3. Regulatory Support: The state government’s pro-investment policies have helped to attract high-end real estate investors. Investment in Goa has become more accessible thanks to streamlined processes and developer incentives. 
  4. High Returns on Investment: Goa has significant capital appreciation potential. Properties in prime locations have appreciated significantly over the years, making them an attractive option for investors seeking high returns. 

The Boom in Luxury Real Estate 

The luxury segment of Goa’s real estate market has grown particularly well. High-net-worth individuals and celebrities are increasingly investing in luxury properties. Luxury real estate in Goa is in high demand, and choices vary from opulent villas with beachfront views to high-end apartments in gated communities. 

Developers are capitalizing on this trend by launching exclusive projects tailored to the tastes of the elite. These properties frequently feature cutting-edge amenities such as private pools, landscaped gardens, advanced security systems, and personalized services, which comply with global luxury living standards. 

Long-term Investment 

 Property in Goa is not only luxurious; it also represents a long-term investment. Three strict environmental regulations balance economic development with environmental preservation in the region. As a result, Goa’s natural beauty is protected and its property values are raised in the long run. 

Goa’s transformation from a tourist destination to a luxury real estate haven is a testament to its enduring allure and evolving market dynamics. As capital appreciation becomes the mainstay of investment motivations, Goa continues to attract the country’s wealthy promising both lifestyle upgrades and high returns on investment. 

A premier destination where natural beauty meets modern luxury, Goa stands out as an unbeatable investment choice in this evolving landscape. 

Formerly a part-time courier, now a luxury real estate mogul: Meet Suraj Morajkar, a pioneer of innovation in India’s luxury

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Growing up in Goa, he witnessed the influx of tourists seeking luxurious accommodations amidst the pristine landscapes and saw an opportunity to combine luxury with Goan heritage. 

Suraj Morajkar, the visionary behind Sun Estates Developers, set out to redefine luxury housing development through a deep passion for architectural elegance and an unwavering commitment to excellence. Discover his inspirational journey from humble beginnings to pioneering luxury real estate professionals. 

Venture into Luxury Housing Development 

Suraj Morajkar’s move into luxury housing development was a natural progression, motivated by a deep appreciation for architectural elegance and a desire to redefine luxury living. Growing up in Goa, he witnessed the influx of tourists seeking luxurious accommodations amidst the pristine landscapes and saw an opportunity to combine luxury with Goan heritage.  Establishing himself as a pioneer in this segment necessitated meticulous attention to detail, an unwavering pursuit of excellence, and a dedication to providing unforgettable experiences. Suraj became known not only in Goa, but throughout India, for infusing each project with innovative design concepts, superior craftsmanship, and a keen understanding of client preferences. 

Designing for High-Profile Clients 

Building luxury homes for affluent individuals necessitates a highly collaborative approach centered on understanding their distinct tastes, preferences, and lifestyle requirements. Suraj starts by encouraging open communication channels to learn more about their vision for their dream home. Using his extensive experience and expertise, he meticulously curates every aspect of the design process, from concept to execution, ensuring that each element reflects its uniqueness and goals. 

Preserving Goan History

Suraj’s commitment to preserving Goan heritage permeates all aspects of Sun Estates Develeper’s luxury housing projects, forming the foundation of their design philosophy. They approach integration with reverence, drawing inspiration from Goa’s rich tapestry of culture, architecture, and traditions. Whether incorporating Goan motifs, using indigenous materials, or embracing vernacular architectural styles, they strive to create harmonious spaces that honor their heritage while offering a modern take on luxury living. 

The Vision of Sun Estates Developers 

Suraj envisions Sun Estates Developers focusing on innovation, sustainability, and long-term growth over the next two years. They are preparing to launch an ambitious expansion strategy, leveraging emerging trends and market opportunities to diversify their portfolio and achieve new milestones. With several exciting projects underway,  including luxury residential developments and boutique hospitality ventures, they hope to redefine luxury living experiences while adhering to their core value of integrity, excellence, and customer service. 

Influence of Previous Experiences 

Suraj’s experiences with part-time jobs and cricket taught him invaluable lessons that continue to shape his approach to entrepreneurship and leadership at Sun Estates Developers. From the discipline and perseverance he learned on the cricket pitch to the humility and work ethic he developed through humble beginnings, these formative experiences instilled in him a strong sense of resilience, adaptability, and tenacity. 

Advice to Aspiring Entrepreneurs

Suraj advises aspiring real estate entrepreneurs, particularly those interested in luxury housing development, on the following: Stay true to your vision, view challenges as opportunities for growth, and prioritize integrity and excellence in everything you do. To stay ahead of the competition, you must constantly educate yourself, stay current on market trends, and innovate. 

Outstanding legacy 

Suraj’s ultimate goal for Sun Estates Developers is to redefine luxury living experiences while contributing to the community and industry. He hopes to set new standards for excellence in the real estate industry by delivering iconic projects that transcend mere structures and become timeless symbols of elegance and sophistication. Their dedication to social responsibility, environmental stewardship, and community development is just as important. They hope to leave a lasting legacy that enriches lives, lifts communities, and inspires positive change for years to come by empowering future generations, preserving cultural heritage, and promoting sustainable practices. 

The Goa SCPCR calls for the Labour Commissioner and the MD of Ambiance Real Estate Developers

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Several infractions of the 1996 Buildings and Other Construction Workers Act have been brought to the attention of the Commission. 

  • Unsafe Living Conditions: Without basic utilities and in makeshift housing with potentially dangerous materials, the children and their families were discovered to be living in risky conditions. 
  • Lack of Creche Facilities: The location flagrantly disregarded the necessity to provide creche facilities, which is essential for the safety of the kids employed in construction. 
  • General safety violations: There was a compromise to the site’s overall safety because no measures were taken to guarantee basic sanitation or prevent injury. 

The hearing will cover all of these topics in detail. The parties responsible must submit a thorough report and plans to improve the existing circumstances. Serious legal action under applicable statutes will follow noncompliance with these expectations.   

The Goemkapronn desk 

PANAJI: In response to the horrific abuse and death of a 5- 5-year-old girl, the Goa State Commission for Protection of Child Rights (GSCPCR) has taken a strong stance against violations of children’s rights at the New Vaddem Vasco construction site. This incident has exposed the appalling and harsh living conditions that children and their families are subject to at this location. 

The GSCPCR is a legally mandated statutory body tasked with monitoring the protection of children’s rights and examining complaints alleging these rights have been violated. By the law, the Commission has called a crucial hearing for May 2, 2024, including the Chief Labor Commissioner and the Managing Director of Ambiance Real Estate Developers. The purpose of this meeting is to discuss the violations in detail and make sure that thorough corrective action is taken right away. 

Strongly denouncing the abuse and neglect discovered during the inspections was Chairperson Mr. Peter F. Borges. “Defending our children’s rights is more than just an act of kindness; it is ingrained in the legal system and permeates every aspect of our society. We now have a situation where and permeates every aspect of our society. We now have a situation where our kids are fighting for their lives in dangerous living circumstances rather than having fun and learning. 

Mr. Borges said, “Under our supervision, this cannot and will not continue.” 

He continues, saying, “The most defenseless people in our society should not be treated with such flagrant contempt. This Commission will guarantee justice and accountability. 

Chairperson Mr. Peter F. Borges’ visit to the construction site revealed the terrible conditions.  

The grave circumstances were made public when Chairperson Mr. Peter F. Borges visited the construction site. “The victim’s family was found living in extremely inhumane conditions directly at the construction site during an inspection led by the Hon’ble Chairperson of the Goa State Commission for Protection of Child Rights,” reads the official notice. 

The grave circumstances were made public when Chairperson Mr. Peter F. Borges visited the construction site.

Registration fees and stamp duty in Goa in 2023

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Goa’s breathtaking scenery and stunning beaches make it the perfect destination for a holiday. Additionally, this state is the ideal location for owning a home or investing in real estate. However, purchasing a home is a challenging task. It entails a great deal of taxing and paperwork. Following your purchase, you must register your property by the Registration Act of 1908. To finalize the procedure, you also need to pay the state-imposed taxes of stamp duty and registration fees in Goa, which gives the property document legal status. This article will examine the registration procedure, stamp duty, and registration fees in Goa, as well as the payment options for these fees. 

Stamp Duty Act of Goa 

Section 3 of the Indian Stamp Duty Act 1899 directs the state government to levy stamp duty. In addition to increasing government revenue, the stamp duty in Goa gives the document legal status. To legally register the property, payment of stamp duty is required. If the charges are not paid, there is a penalty of up to 200 percent of the initial sum. 

In Goa, the circle rate of the region determines the stamp duty; the state government sets these rates. The owner’s age, gender, location of the property, amenities provided, and kind of property are all factors that influence the circle rates. Due to the high circle for a prime location, stamp duty charges will be higher for that particular property. It is important to note that stamp duty depends on the market value of the property. Like this, not all states grant women a discount on stamp duty; Goa is an exception. 

Stamp Duty and Registration Fees 

In contrast to other states, Goa levies stamp duty and registration fees based on the property’s market value. In states like Punjab and Uttar Pradesh, stamp duty rates for men are the same regardless of the property’s value.

The following are the stamp duty and registration fees in Goa in 2022: 

Market ValueRegistration charges in GoaStamp Duty in Goa 
Upto Rs 50 Lakhs 3%3.5%
Above Rs 50 lakhs up to Rs 75 lakhs  3%4.5%
Above Rs 75 lakhs up to Rs 1 crore 3.5%5%
Above one crore3.5%5%
More than Rs 5 crore3.5%6%
Contract for sale 3%2.9%
Act of Correction Rs 500Rs 500
Conveyance Deed in Housing Co. Op. Societies’ Favor 1.5%3%

Goa Stamp Duty Calculated with AI

Goa computes stamp duty using the National Generic Document Registration System (NGDRS). Following Andaman & Nicobar, Punjab, and Manipur, it is the fourth state to adopt NGDRS. 

The Goan state government posts the market price of each land parcel on the sub-registrar portal to facilitate the execution of deeds of sale for individual parcels. 

This data will be used by an artificial intelligence (AI) system to calculate the amount of stamp duty that must paid. For every survey number, the revenue department will calculate the land price and update it on the portal. 

  • The stamp duty process will be quicker and more effective thanks to the AI system, which will minimize human intervention. 
  • Every year, the AI system will update the rate based on suggestions made by the revenue department. 

How Can I Pay Goa Stamp Duty?

The registration process requires the payment stamp duty using the methods below. 

  • Buying stamp paper: In Goa, this is the most popular and practical method of paying stamp duty. An authorized individual can sell you a stamp paper that contains all the information about the real estate transaction. You must turn in the stamp paper to the sub-registrar in the state registration department within four months of the date of issuance. 
  • By franking, both parties sign a property agreement on a plain. Subsequently, the authorized bank receives the agreement and documents it further using a franking machine. Also, banks charge franking charges. Generally, franking charges are 0.1% of the property value. 
  • E-Stamping: By going to the Document Registration website in Goa, stamp duty fees may be paid via the Internet. The website calculates the stamp duty, payable with a debit card, credit card, or net banking facility. 

Apartments in Goa for Rent

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Goa is a popular tourist destination, and the state’s real estate prices have risen in recent years due to increased demand from locals and foreigners. However, the Goa market can be volatile, with prices fluctuating depending on various factors such as the state of the economy, changes in tourist demand, and shifts in the local market. 

Additionally, when renting an apartment in Goa, there are often legal and regulatory issues to think about, such as obtaining permits and paying taxes. Overall, Goa can be an excellent place to rent, but it’s critical to conduct thorough research and consider all the factors mentioned before deciding. 

Whether renting an apartment in Goa or an experienced one, renting a property in this area can provide numerous benefits: you will enjoy white sand beaches to explore, colorful festivals that fill the streets, and an exciting nightlife scene with nightclubs and shacks along its coastline strip. All of this is in India’s smallest state! This article covers these incredible benefits, so keep reading about why renting a home in Goa makes so much sense. 

Benefits of renting an apartment in Goa 

There are several advantages of renting an apartment while visiting Goa with family and friends, including: 

  • Renting an apartment gives you and your family more privacy than staying in a hotel. You can enjoy your privacy without worrying about other guests or people nearby. 
  • Saving money: Renting an apartment can be less expensive than staying in a hotel, especially for a large group. 
  • Renting an apartment allows you to experience a more local and authentic side of Goa. You can prepare your meals, relax in your own space, and enjoy the comforts of home. 
  • There is more flexibility in meal times, sleeping arrangements, and daily routines. 
  • More space: Compared to a hotel room, renting an apartment provides more space, which can be important for families or groups of friends traveling together. 

Before deciding to act, conduct extensive research on the property and neighborhood and the availability of amenities and services in the area. 

How are Goa Flats Apartments different from other apartments? 

Apartments in Goa are different from typical flats. They have something unique that distinguishes them from other apartments in the city. 

These apartments include everything you could want and more. Here are some of the most vital features that distinguish Goa Apartments from other apartments: 

  • Well-maintained and well-groomed homes are often meticulously cared for and maintained, resulting in an impeccable appearance. 
  • Exclusive and unbeatable offers- You will not find anything better on the market than what these apartment complexes have to offer. Not to mention that they frequently sell at much lower prices than other apartments in the city. 

Why should you rent an apartment in Goa? 

A Goa flats apartment might be of interest to someone for a variety of reasons. Some people may just be looking for a new place to live, whereas others may be interested in renting an apartment in one of India’s most popular tourist destinations. Whatever the reason, there are a few things to consider when looking for Goa apartments. 

First and foremost, Goa flats are one of the most affordable places to live in India. As a result, they are not subject to monthly rent payments like other apartments in major cities. Second Goa, flats have every amenity that individuals want or need to live comfortably. 

It includes air conditioning, electricity, and water meters, all billed monthly. 

Realty projects, roads focus to help build-up for Unity Infraprojects

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Healthy order book, strong balance sheet and the potential to unlock value from real estate projects make Unity Infraprojects a decent investment idea on a medium-term basis. Mumbai-based Unity Infraprojects is a small-sized construction firm operating in buildings, water and roads segments. The company is also developing real estate on its land parcels in Nagpur, Bangalore, Pune, Kolkata and Goa. The total saleable area from these projects is nearly nine million square feet.

Unity Infraprojects stands to gain by unlocking the value in its real estate projects. It was not able to monetise any of its real estate projects due to delays in execution by over a year. However, it is now in an advanced stage of securing approvals for launching its Bangalore residential project. Unity has a total saleable area of nearly 3 million square feet in this project, which it intends to launch in another three months.

After this it will focus on monetising its real estate in other cities. The current order book of the company in its construction business stands at Rs 4,700 crore, which are 2.75 times its FY11 revenues. These orders are to be executed over the next three years. The company has been increasing its exposure to the roads segment in the last few years. Although the roads segment is highly competitive, Unity’s backward integration in terms of owns machinery has allowed the company to garner better operating margins than its peers.

In the nine months ending December 2011, the company has maintained an operating margin of 15.5%. Another factor that augurs well for the company is its strong balance sheet. As of September 2011, the company had a debt-equity ratio of 1.1, which is one of the best among its peers. Unity Infraprojects’ stock is trading at a P/E of 3.9 while similar-sized rivals like Pratibha Industries and Supreme Infrastructure India are trading at a P/E of 5.9 and 5.2, respectively. Considering its growth potential and the relative discount to its peers, the stock looks attractive at this level.


“India is a top focus for Realty Moghul” says Trump Scion.

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Trump’s eponymous real estate group expects to sign multiple deals for Indian residential projects and hotel contracts over the next five years, despite a market riddled by regulatory uncertainty and bureaucratic red tape.

“India, among other emerging markets, is the biggest push for our organisation,” Donald Trump Jr, an executive vice president of The Trump Organization, said on Wednesday.

Trump, whose portfolio includes projects in South Korea and Turkey, in addition to hotels and skyscrapers in the United States, is close to signing a couple of deals with Indian developers, the younger Trump said without providing details.

“Equity investment will depend on individual projects and partnerships but first we would like to form relationships which allow us to understand the processes and spectrum better,” the 34-year-old said on the side-lines of a hotel conference.

The developer entered India last year with a joint venture partnership with Rohan Lifescapes to build a 45-storey luxury residential tower in Mumbai.

However, work on the tower, which will bear the Trump name but involves no equity from the U.S. developer, has been halted for about nine months since authorities said it lacked the necessary permits, a common problem in an industry wrapped in red tape.

Indian developers are often hit by changing regulations. In Mumbai, for example, the scrapping of a rule granting extra floor space in exchange for providing public parking facilities has meant many projects must reapply for clearances.

But Trump, whose father is worth an estimated $2.9 billion, according to Forbes, says the lure of an emerging India outweighs the regulatory headaches.

“The Indian market is starved for a good luxury product and it needs a brand like ours,” he said.

“I like the regulatory changes I am seeing. It may slow things down a bit but will create a level playing field and will help in eliminating the unknown for an outside investor coming in,” he said.

The company plans to focus expansion in the country on luxury residences and hotels, and would look at cities including Mumbai, Delhi, Bangalore and the state of Goa.

Some local players such as privately held Lodha Developers and Godrej Properties are emerging as strong brands in India’s luxury housing space, but the market remains fragmented.

And despite a slew of interest rate hikes that have cooled India’s overall property market and hit luxury developers particularly hard, Trump is bullish.

 

India loses $210 billion in Coal Scandal.

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The Indian Parliament erupted in hoots and jeers Thursday after a draft report by government auditors estimated that the national treasury lost $210 billion by selling coal fields to private excavation companies in sweetheart deals.

According to the report, leaked to the Times of India newspaper, the primary beneficiaries were about 100 private and state companies that were handed contracts for 155 coal fields between 2004 and 2009 without going through a competitive bidding process. The report said that $210 billion — five times India’s annual defence budget — was a conservative estimate given that it relied on prices for low-grade rather than medium-grade coal.

The report represents the latest in a string of corruption scandals to hit the ruling Congress Party — others have involved the telecommunications, real estate and sports industries — that has left India’s leadership weak and bereft of policy initiatives. Opposition leaders called the latest revelation the “mother of all scams,” accusing the government of looting the country.

But auditors with the comptroller/auditor general’s office countered that the leaked draft is misleading, adding in a letter to the prime minister’s office that the figures publicized were the product of discussions held at a “very preliminary stage.

“We are examining the news report and I have called for records,” Coal Minister Sriprakash Jaiswal told journalists, adding that he wasn’t in office at the time of the suspect deals. “After that I will reply.”

The government said it has not received the report yet from comptroller/auditor general’s office.

India, the world’s third-largest coal producer after China and the United States, has seen a series of mining scandals. In August, the top elected official in south western Karnataka state resigned after being implicated in a mining scandal that a watchdog said involved $400 million. Three months later, a report claimed that almost 50% of the iron ore exported from western Goa state was illegally mined.

India is hungry for energy to fuel its fast-growing economy, and coal accounts for 70% of the mix, a percentage expected to grow, given limitations on the further development of power from nuclear reactors and renewable sources. Environmentalists, however, say increased production is ecologically unsustainable.

Indian developers will present properties to NRI investors at Doha exhibition.

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Indian developers are all geared up to offer NRI investors a wide choice of properties across India at an exhibition which is going to start on 16th March 2012.

It is the 20th India Property Exhibition in Doha on Friday which will showcase more than 100 projects spread across New Delhi, the National Capital Region, Jaipur, Mumbai, Pune, Goa, Hyderabad and several other cities.

The $12 billion realty market in India is on a high growth curve, because of the fast growing economy, increased participation of global players in the Indian market and new technological innovations.

According to organisers – Indus Fairs and Events (India) and Apex Business Solutions, Doha – the investment portfolio includes apartments, independent houses, bungalows, luxury villas, farmhouses, commercial properties, beach resorts and plots.

LIC Housing to Concentrate on Senior Citizen Homes Business

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LIC Housing Finance focuses to have a all India-presence for its senior citizens homes business as the rise in demand from senior citizens provokes the company to scale-up presence in other cities across the country. The 4th largest mortgage lender has finished two projects, one in Bangalore and the other in Bhubaneswar, They believe this “futuristic idea” will lead to the home finance company eventually spinning off its care home business into a listed body as early as 2014.

“We expect to make the care homes business a fully listed body in coming three to five years,” CEO of LIC Housing finance said. LIC H.F., promoted by the country’s largest insurer, the LIC of India, is looking for an existence in up to 07 cities, which it says are more “friendly to the senior citizens” and also can get land at discounted rates. The company lately finished a 98-unit project and a bigger 200-unit project in Bangalore and Bhubaneswar respectivly.

Presently the organisation is in the process of acquiring land in Jaipur, Haridwar and Goa. “More cities such as Nagpur and Pune which have historically been friendly to the retired people will be looked at.” India has 65 % of its people aged between 15 and 64 years, so the business model might find many takers. Retirement homes are built in a community format with modern amenities including gymnasium & club houses, music rooms and auditoriums. These projects also come with a house-help which is offered by the developers or owners themselves.

13th India Realty Expo’10 A Success

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The India Realty Expo 2010 organized by the Maharashtra Chamber of Housing Industry (MCHI) in Dubai was a great success. It was the 13th year of the realty expo and 9th consecutive year of the expo in Dubai. The exhibition held from June 3, 2010 to June 5, 2010 saw a presence of total 2847 NRI’s. The event’s success can be contributed to the fact that the exhibitors were offering ready properties or possessions between 3-6 months.

The Exhibition was inaugurated by his Excellency Mr. Naresh Mehta, Consul Commerce of India, Consulate General of India, Dubai-U.A.E on June 3, 2010.

Eighteen leading developers and builders from India including Acme Housing (India) Pvt Ltd., Akar Creations Pvt ltd., Ashiana, Delta Group, Everest Developers, Godrej Properties Ltd, Hiranandani Constructions Pvt Ltd, Kolte-Patil Developers Ltd, Marvel Realtors, Nahar Group, Nyati Group, Our Town, Pathy Housing, Runwal Group, Rustomjee, Uma Constructions- represented by United 4 realtors participated in the exhibition.

Indian_Consulate_03_07_2010-36
Photo by vasofoto.comMr. Sunit Mantra, President MCHI said on the occasion, “Looking at the factors such as attractive prices of Indian Real Estate as compared to Dubai coupled with a lackluster trend in local markets there, turned out a bonanza for the Indian realtors exhibiting their properties in the Dubai exhibition with investors and genuine buyers visiting in large number this year.”
The Hon. Secretary, MCHI, Mr. Deepak Goradia said, “We have seen tremendous response and turnout for the exhibition this time. Projects in Andheri, Powai, Navi Mumbai, Kandivali, Borivali, Bandra, Ghatkopar, Thane from Mumbai and other cities such as Bangalore, Goa and Pune received a lot of enquires for residential flats. Quality of visitors was good and mostly they were affluent, focused and high end consumers. Moreover visitors showed interest in 2/3 BHK flats ranging from 60 lacs to 1 cr.”

The Indian Real Estate Industry has only reasons to cheer in the time to come.

The Indian Hospitality Industry-An overview

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Indian hospitality industry has emerged as a hotspot destination for investment for the global hospitality companies in the last few years. Many leading global hotel chains aim to enter India in the near future and the ones that are already present in the country as of now are eager to expand. The companies are betting big on dearth of hotel rooms in the nation.

ATTARD - Hôtel Corinthia Palace
Photo by Michel27Industry estimates say, in the next 3 years there will be about 40 international hotels operational in the country. These global chains plan on catering to all the classes—the upper scale, mid-scale, the economy and the budget.

Some of the chains that are set to come to India are MGM Mirage Hospitality a US-based firm, Amari from Thailand, Fairmont Raffles Hotels, Golden Tulip Hotels, Movenpick Hotels and Resorts, Corinthia Hotel group from Europe, Carlson, Starwood, Choice, Marriott, Accor, Hyatt, Intercontinental and Hilton.

Amari Hotels is set to launch Amari India and is searching for expansion opportunities in the Indian metro and tier-II cities to open seven hotels and resorts within the next 5-7 yrs. Likewise, MGM Mirage Hospitality aims to sign management contracts with realty sector developers as joint venture initiatives with local companies to set up hotel properties in the country.

Kaushik Vardharajan of HVS Hospitality Services said that, “India is more profitable for global hospitality firms than the international market. There is huge demand-supply gap which offers opportunities for international firms”. Data gathered by the firm shows that the international and domestic hotel chains had announced in August to build at least 9400 rooms in the country but the actual construction is underway for 3,840 rooms only.

Another hotel chain, Fairmont Raffles Hotels International is in advanced stage of discussions for properties in Delhi, Gurgaon, Bangalore, Hyderabad, Mumbai, Goa and Chennai.
Golden Tulip is looking to add 10 properties which totals to 800 keys across tier-II towns by the end of the next financial year.

Four Seasons, a luxury hotel brand is in various stages of discussions with developers for constructing properties in Bangalore, Delhi, Hyderabad, Pune and Goa. “There is enough room for several players to enter the market. India will become a major market for our company,” said Director Marketing Four Seasons, Sanjiv Shukla.

Accor, which has five hotels at present, will expand its network to 50 with 10,000 rooms in 15 cities by 2012.

ITC Welcomgroup plans to add 40 hotels to its 113 under four brands out Of which 25 are under the Fortune brand of business hotels. Senior Executive Vice-President at ITC, Pawan Verma said that “We are attached to the ground unlike them (international chains). We excel in Indian hospitality”.

The Taj Group is growing furiously both in the country and abroad. It is looking to roll more than 70 new hotels in 4 categories including its budget brand Ginger to add to the 105 hotels out of which 17 will be abroad.

However, falling rates of up to 18 per cent over last year has become a cause of concern for these hospitality chains. In 2008-09, the average room rate was Rupees 7,800 which has now reduced to Rupees 6,396 per night.

Still it will not be wrong to say that Indian hospitality is in a state of war where hotel rooms are being built like army barracks.