The developers would not have imagined that the sky reaching property prices will have as disastrous as this. Many of the builders now have unsold properties at their hand as they are not able to find any property buyers. Continue reading
May 04, 2010
Investors have made a return to realty. Long term capitalization and an expected rise in this sector are the two major reasons for this come back.
However, the present investments are not as good as they used to be before recession period.
The Chief Financial officer of Mantri Developers, Anil Kumar said that currently there is a considerable amount of investment and it is expected to increase in future.
He also added that the realty cost which went through a sharp correction during the recession now has a large scope for capital appreciation in future.
In India, the usual investors in the residential properties are the Non-Resident Indians (NRIs), High Net worth individuals (HNIs), domestic investors and professionals with large disposable incomes.
However, the view of analysts is different.
According to them, although the investments are higher than they used to be at the time of recession, but the uptake is not encouraging due to the recent increase in price by developers.
One of India’s Major Real Estate Firms Mantri Developers based in Bangalore announced the opening of one of India’s largest malls Mantri Square. The main attraction of the project is metro connectivity in the mall itself.
Mantra Square was inaugurated on Tuesday by B S Yeddyurappa, Chief Minister of Karnataka. The mall will be located at Malleswaram, north Bangalore and spread over 1.7 million square feet which will be built with an investment of over Rs 500 cr. It will boasts of 252 retail outlets) offering 10,000 brands; said Mr. Sushil Mantri the Chairman and Managing Director of Mantri Developers. Mantri square will generate direct employment for about 4,600 people.
The connectivity of the mall to railway station is being jointly developed by the metro rail authorities and Mantri developers. Bengaluru Metro Rail Corporation (BMRCL) has signed first-of-its-kind joint venture with this realty firm to develop the commercial hub-cum-metro station. It will be the first station to be constructed on a public-private participation model. According to the, Sources Mantri and BMRCL have entered into a revenue-sharing agreement for the proposed station. BMRCL will get 1per cent of the revenue earned annually for 30 years, and the percentage will go up to 5 after that. The land will belong to BMRCL but Mantri will spend Rs 35 cr to develop the station, and then construct a commercial tower over the station. According to the agreement, BMRCL will lease the space above the station for 99 years and after the 5-acre property is developed, it will be transferred to BMRCL.
The station becomes operational in two years time frame and is expected to provide an additional footfall of 20, 000. The footfall is expected to go up to one lac a day once the station gets started. The station area would cover around 80,000 sq feet and a third party will be involved to maintain it.
The mall would be responsible for introducing some leading international brands first time in the country and many national brands launching their outlets for the first time in the city.
Mr. Mantri said, “Mantri Square is going to be the largest mall in India. It will undoubtedly be the most sought after destination amongst discerning shoppers and for brands of repute as well. The sheer scale of offerings at the mall came only second to the detailing that has gone into ensuring a world class shopping, leisure and entertainment destination.”
Shopping in this mall will be one of its kind experience for sure.