Monthly Archives: May 2010

JP had a Turnover of Rs. 10,000 cr.

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Barclays Building in Docklands
Photo by Destinys AgentThe Jaiprakash Associates, one of the leading infrastructure companies in India has covered a turn over or more than Rs. 10,000 cr.

The Jaiprakash Associates Limited (JAL), the leading infrastructure pudding stone having business interest in the area of cement, construction, engineering, expressways, power and associated real estate and hospitality, in order to continue the growth drift, has announced a net profit for FY10 on higher revenue. For 2009-10, a final dividend of Re.0.54 per equity share of Rs 2/- each has been advocated by the company’s board.

In the financial year 2009-10, Jaypee has shown a remarkable growth. Its total revenue exceeded by 72%; from Rs 5979.52 cr. to Rs 10316.04 cr. Although the EBIDTA went through a hike of 40.36%; from Rs 2059.91 cr. to 2891.44 cr., for the financial year 2010, the net profit registered a growth of 90.45%; from Rs 897.01 cr. in FY09 to Rs 1708.36 cr. in FY10. The revenue for this year on the basis of shares was up by 87.47%; from Rs 4.31 to Rs. 8.08.

Realty Boutiques: First Time in India

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Rose vert jaune
Better Options Property (BOP) which is a Delhi based realty management and advisory firm. These realty boutiques seem to be interesting enough since they will be developed for the first time in India. A realty boutique is a real estate Shoppe based on the model of a walk-in store for property consultancy and purchase. These will be called ‘BOP Studio”.

Some of the key features of these studios are:

  • An amount of Rs. 60 lakh would be spent by each studio on the infrastructure alone.
  • These studios would be located at the prime location in each city covering an area of 2000 sq ft.
  • Currently, the cities Noida, Kanpur, Chandigarh, Meerut, Jaipur, Agra, Lucknow, Amritsar, and Ludhiana etc will be credited with the BOP Studios.
  • It is expected that there would be thousands of professionals that would be recruited in these studios.

The target for the BOP studio is quite high. It might have to take around 10 projects hand in hand in every city where it plans to operate. According to Gaurav Mavi, director, BOP, although their plan of expansion in India through the shoppe concept may not flourish at once, but will surely be able to fetch profits later.

Major Land Deals in India

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Residential building
Since now days, land is the most promising resource, the developers are ready to pay any price just to get into the realty business.

Here are some of the major deals in the field of land:

1. The Lodha developers had a deal of Rs 4,053cr for a plot of 25,000 sq mts. The sq per mtr cost is about  Rs 81,818.
2. Next closest deal was by Sunteck India. It was a deal of Rs 3,465 crore. Following Sunteck was Indiabulls Real Estate at Rs 3,327 cr which was backed by Gaurhari Estate at Rs 2,251 cr.
3. In 2008, BPTP, a Delhi based builder had a deal of Rs. 5000 cr for a 95 acre plot in Noida. Unfortunately the deal could not get through.

Lodha Developers plan to launch a 650 million dollar IPO in the end of this year. Also, they plan to build a residential building worth Rs. 10,500 cr in the center of Mumbai.

MCHI Showcasing in Indian Realty Expo 2010

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One of the most prominent bodies of realty developers and builders, Maharashtra Chamber of Housing Industry has planned to showcase the phenomenal work of Indian builders in the field of property in the 13th India Realty Expo 2010. This expo is scheduled from 3rd to 5th June, 2010 in Dubai, at the Renaissance Hotel, Deira. This step is taken by MCHI to bring some  of the NRIs in the Indian realty market.
is a member of CREDAI, Confederation of Real Estate Developers‘ Association of India. This expo will last as an opportunity to NRI investors to fully explore the offers and opportunities in front of them as far as Indian realty sector is concerned. This expo would throw light on all the fields, be it be housing, retail or commercial sector.
This ‘India Realty Expo’ will prove as a golden opportunity for the NRIs, especially in the Gulf region, to come back close to their motherland. Apart from CREDAI and MCHI, there will be 21 more builders who will participate in this expo. The expo will be held at from 5 pm to 9 pm on 3rd June whereas the timings for and June are 10 am to 1 pm and 4 pm to 9 pm. The main focus of this expo will be on the real estate sector of cities like Bangalore, Goa, Pune and Mumbai.

What Should the Buyers do?

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Delhi Properties - Real Estate India - Unitech Location
The apartment buyers were already burdened by the day by day increasing property rates, and now come another burden to their door. Since last month, many developers have been demanding the buyers to start paying up the service tax announced in Union Budget, 2010, i.e. a 2.5% tax.

However, this service tax will be imposed only on the under construction residential project or where the building has not yet received its occupation certificate. Some sources revealed that some developers admitted that they asked purchasers to pay this tax.

On the other hand, buyers say that they were not told about this additional taxation at the time of booking of flats. A market source told that although the buyers are raising voice against this game played by builders, but they do not have much choice. As they are forced to pay the development charges, society fees, hefty parking charges and other various charges, they will have to pay this tax too.

39th Position of India in retailer’s global favorite places

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Although countries like China and Britain are ahead in the race but India has still managed to acquire 39th position in the favorites list of retailers in the world.

In 2008, the CB Richard Ellis (CBRE), a real estate consultancy conducted a survey in which India was ranked as the 44th preference of retailers. It is an appreciable growth of 5 ranks in just 2 year s. This survey was called ‘How Global is the Business of Retail?’

This survey conducted by CBRE is an annual survey which involves around 294 top retailers of the world across 69 countries. Britain acquired 1st position in the list, followed by the UAE, the US, France and China.

The chairman and managing director of CBRE, Anshuman Magazine said that since the last year’s survey, the growth of Indian retail market is commendable. However, the recent global economic crisis has slowed down the activities since it led to delay in completion of retail projects.

Indian Realty Open for NRIs

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Bangalore Properties - Real Estate India - Vaswani Bella Vista 1
For the Diasporas, who plan to invest in the commercial and residential properties, the Indian real estate market is able to hold its position in front of them.

For instance, a person Ganesh is an NRI (Non Resident Indian) who currently is in London, UK. He wishes to buy property in India and thus needs advice and information on the regulatory framework for investing in Indian real estate.

The NRIs and foreign citizens belonging to Indian Origin (PIO) are permitted to buy Immovable property in India. The people who held an Indian passport (at any time) or who had/have their parents or grand-parents in India come under PIO.

It is to be noted that even if the citizens of Bhutan, Afghanistan, Sri Lanka, Pakistan, Nepal, China, Bangladesh and Iran fulfill above conditions, they are not allowed.

Jaypee’s New Project – Yamuna Expressway

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A new project, Yamuna Expressway is introduced by Jaypee in the northern state of Uttar Pradesh which is a 165-kilo, six-lane expressway. This project has a total cost of 2 billion dollars. It connects Noida, near Delhi with city of The Tajmahal, Agra. Realty of about 25 million sq ft. along the expressway is being planned by the company. Mr Manoj, Chairman of Jaypee Group told the media that although the expressway will be started in phases from November onwards, it will generate toll revenues in FY12 only.

Revenue of 100 billion is planned to be generated by 2015/16 by the firm. This fiscal, they saw a revenue of Rs. 25 billion, all from real estate sales. The managers to the Jaypee Issue were Bank of America-Merrill Lynch, SBI Capital Markets, Kotak Mahindra Capital, IDFC Capital, ICICI Securities, Morgan Stanley India, Axis Bank, JM Financial, Enam Securities.

In March, on the last day of the offer at the bottom of the price range, a share sale of $2.2 billion in state-run miner NMDC was covered. ($1=47 Indian rupees)

Tata Housing Won Cityspace Award

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tatai naplemente
One of the leading real estate companies of India, Tata Housing was honored by the Best developer award in the category of CSR in the recognized award ceremony called Cityscape Awards – Real Estate Asia, 2010.

According to experts, when they analyzed the commitment and positive contribution of the company in the society welfare, it would be fully justified to call it one of the best developers in the Indian real estate market.

The award ceremony was originally organized to honor the real estate companies and industry professionals who have put their heart and soul into the realty and have done significant contributions in the growth of Indian realty. A panel of experts was the judge.

The Managing Director and Chief Executive Officer of Tata Housing, Brotin Banerjee, said that the company has the motive of delivering to the consumer what he wants. They firmly believe in ‘what you see is what you get’. And the Cityscape award is the evident of the contributions the company has made over the years to the society.

Revision in Property Registration Fee

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After a long gap of 45 years, finally this Monday, Delhi cabinet approved the proposal of increasing the registration fee of property in the city. It is expected that through this revision, the revenue collection will be increased from Rs 1.5 cr. per year to Rs 100 cr.

This revised fee is as follows-

  • 1% of the stated value or the circle rate whichever is higher up to a fee of Rs 50,000 will be charged for registering sale deed, conveyance deed, gift deed etc in case of immovable property.
  • Rs. 1000 will be charged if the value of property is not mentioned.
  • In case of immovable property, Rs 1,000 is the fee for registration of lease.
  • Registration of wills will be done at Rs. 500.
  • Rs. 1000 per document will be the cost of miscellaneous registration of documents.
  • Rs. 10 per page will be the cost of copies of registered documents.
  • Rs. 50 will be charged for filling the translation.

Survey on Realty Growth

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contact: rajkamal.aich@gmail.com
Analysis of the growth in real estate sector in last few years was performed. It revealed some very interesting statistics of the growth. The facts go like this:

In 2007, the office sector experienced highest demand. Grade A office space of about 32 million sq ft leased out in that year. But after that, it has been a decline throughout. In 2008, it reduced to 28 million and a further decrease to 21 million in 2009. However, now a growth back to 28-29 million is seen. Although it is less than what was in 2007, but still is complementary. This demand majorly comes from infrastructure companies, from Indian corporate who wish to merge, from pharmaceutical etc and it is at pace in Bangalore, Delhi and Mumbai.

After the office space, we move on to the residential sector, where once again these three cities are putting their landmarks. Even on the account of increasing prices, these cities have managed to go through a rise in demand. In cities like Mumbai where the pricing went through a downfall of around 25-30%, it has once again come back with the demand as well as pricing. However, the situation is not the same in the other regions of India as far as residential sector is concerned.

Next comes the retail sector. This sector has not seen much growth. Although the demand from some new Indian corporate, the existing retailers and many foreign retailers, this sector still seems to be gloomy for now.

DLF Plans to sell non-core assets for Raising Debt.

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Kolkata Properties - Real Estate India - Surekha Sunrise Symphony
DLF, India’s leading real estate developers, plan to raise an amount of Rs. 2700 cr. this financial year by selling non-core assets in order to reduce its debt of over Rs 16,421 cr. by about 33%.

The realty giant plans Rs. 5000 cr. to be cut from its debt. Out of these, Rs. 2700 cr. will be raised from sale of non-core assets and the left over from internal accruals. Last year, DLF could raise only Rs. 1800 cr. from sale of non-core assets while it planned for Rs. 5500 cr.

This fiscal, DLF has to compensate Rs 2,500-2,700 cr. in debt and also an interest of Rs. 1800 cr. Also, officials believe that this Divestment of non-core assets is not just a means to reduce debt but is a strategy to focus more on the core business operations.

Rs. 7,855 cr. was the overall revenue during financial year 2009-10 which is reduced by 25% as compared to Rs. 7,855 cr. in financial year 2008-09. The firm sold an area of 12.55 million sq ft across the world in the last fiscal.

Real Estate Suffers due to Regional Laws

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3D Realty Handshake
In past few years, the realty sector has shown tremendous growth but according to experts, it may still remain a regional play in the country. The underlying reason is that different regions have different laws.

JLLM,Jones Lang LaSalle Meghraj, a property consultant firm’s  Country Head and Managing Director Anuj Puri said that developers experience difficulties in having a pan-Indian presence due to the different procedure and different laws in every state for acquiring land, property taxation and approvals for projects.

Since there is a need of understanding local dynamics for developing realty projects, many developers take property sector as a regional business.

The problem for developers of having a pan-India presence cannot be helped until there is in land acquisition process and regulatory approvals are the belief of many consultants and developers.

Amrapali Group announces “Amrapali Leisure Valley” Independent Villas in Noida Extension

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Till now Noida extension was only having war between budget home providers. Adding to the current construction war in Noida Extension Amrapali group recently added new Category “Independent villas“. Today In leading newspapers through Full page ad Amarapali Group announced a Project Having Luxurious Independent Villas in Noida Extension. Name of the project is yet not announced but According to the sources it’ll be called “Amrapali Leisure Valley“.It will have around 71 Acres of open area. At its name suggests It will have many Leisure facilities like golf,cricket academy, Club, Pool facility.

For More details and Booking Visit http://amrapalileisurevalley.propertywala.com/

Jaypee Greens Launched “Kasa Isles”

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19c The Balian Mansion (E)
Mediterranean Style ArchitectureJaypee Greens recently launched “Kasa Isles”. This is an anomalous project which has taken inspiration from the Mediterranean style architecture. This project will introduce high rise flats and is located at Sector 129, Jaypee Greens, Wish Town, Noida.

There will be somewhere 2000 apartments in “Kasa Isles”. These flats fill you with delight and make your living worth. These luxurious flats are in the reach of common man and thus have the potential of attracting individuals. Studio apartment, Duplex Penthouses and 2/3/4 BHK apartments in sizes ranging from 550-3100 sqft will be offered in this project.

This project is highly influenced by the Mediterranean style architecture, especially its ambience and landscaping. The green parks guarantee hi-quality lifestyle for its residents with its large range of recreational facilities like central club and with low-height stone fountains. Some more facilities are Italian style swimming pool, sports facilities for Tennis, badminton court, jogging tracks, Card room, Mediterranean cuisine restaurant and many more.

The price list has a BSP of Rs 3390/- per sqft.

The most attractive feature of Kasa Isles is the club it is offering to the residents. In order to give its members a warm welcome, it has soothing interiors created with terra cotta walls blended with stacked stones in the club. A complete home is offered with wide & low windows, arched entrance opening to wide sitting areas, a stone fireplace, and beautiful hardwood floors.

‘Kensington Boulevard’ by Jaypee Greens,A New Paradise to live in Noida

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Jaypee Greens, a division of Jaiprakash Associates Limited brings you high-rise flats with cool environment as they launched a new project-‘Jaypee Kensington Boulevards‘ at the Jaypee Greens Wishtown, Noida.  All modern amenities such as thematic gardens, symmetric flow of the elevations of the apartment towers and of the residential plots will be offered.

One of the key attractions of Kensington Boulevard is its clubhouse which has shopping areas, swimming pool, sports facilities for outdoors like Squash, Tennis, Skating rinks, Table Tennis , Health Club with well equipped Gym, Sauna etc, enclosed hall for Martial arts / yoga & meditation and many more.

Apart from its clubhouse features such as Landscaping- Patio theme, Environment friendly design, Jogging tracks, Vertical Landscaping, Double basement parking, Rose Garden seem to be mouth watering.

2/3/4 BHK Apartments, Studio flats and 3/4 BHK Duplex Penthouses will be offered. A total of about 2500 flats exist under this project. Exclusive apartment layouts with un-ending views for the residents exhibit the uniqueness of this project. The Price List has BSP @ 3330/sq ft.

Order of Documents for Property Sale

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NYC - Queens - Flushing: Bowne House


Essential Documents
The sale/purchase deed and the housing society share certificate are the major documents required while selling a property. Sale deed serve as confirmation for the land belonging to the seller only and he has full rights to sell the land. Some more documents such as NOC from the housing society, registered house documents and original copies of stamp duty are necessary. Also, the owner/owners have to submit documented consent if it is a joint ownership land.

Necessary clearances

The NOC from the society and title clearance are necessary, but they are not sufficient. The exact details of how old the building is, the carpet and built-up area, car parking status, the floor plan, land title (free hold/lease hold/collectors land), the conveyance of the society and transfer charges of the building and the apartment also have importance.

Buyers Now Moving Towards Delhi

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According to a recently conducted survey, it has been found that over 34% of the people who are interested in purchasing property across the country wish to own a home in NCR-Delhi.

The survey revealed the fact that NCR/ Delhi has got the highest priority in 2010 for real estate investment, i.e. the most preferred realty investment destination in 2010 is NCR/Delhi. With 28% purchasers interested in Mumbai, it has become the next choice of investors. Next in the line are Hyderabad and Bangalore with 11% buyers.

Also, as per the survey, in 2010 the real estate sector is likely to be much more driven by the end user. Since last year was under the clouds of unstable property prices and recession, the investors were backing off from the realty sector, but with the slightly stable property prices and the better conditions of economy, they are back into the lead. It would also be interesting to know that most of the purchasers, who this year plan to buy a house are usually the one who want it for own use which brings a conclusion that the ones who drove the realty in 2004-07, the speculators are out of the market now. Even the people interested in buying property now are the long-term investors.

The survey also brought out the fact that 67% of the property seekers are interested in property for own use and just 23% are the ones who are long term investors.

Hilton International To Expand Base In India

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The US-based hospitality major Hilton International Co is thinking of bringing more of its global brands, including luxury chains Waldorf Astoria and Conrad, to the country.

I think it's smaller
Photo by MelkirThe company is willing  to expand its base in India particularly after it got into a joint venture with real estate major DLF in 2006-07, in which the American chain holds a 26% stake. At that time, the JV had announced plans to invest $ 1.5 billion to open 50-75 properties across the country over next few years. Now it is believed that the company has sought permission to either invest or acquire stake in other Indian hospitality firms as well.

According to some official sources, Hilton International Co had sought an approval from the Foreign Investment Promotion Board (FIPB) to allow it to bring forward more brands such as Doubletree and Hampton by Hilton, Waldorf Astoria and Conrad which was deferred by the FIPB in its meeting held last month.

It had sought a change in existing approval by the FIPB, under which it operates a joint venture with DLF for running four of its brands in India. The brands include the serviced apartments under the Hilton Residences and Homewood Suites and serviced segment Hilton and Hilton Garden Inn.

In its application to the FIPB, the hospitality major also sought permission to invest in or acquire equity stake in other Indian companies, which are into hospitality and tourism sectors.

“The existing JV remains on track. The new partnerships will be for its other brands that it intends to bring to the country,” the sources from the company said.

Hilton Worldwide has global revenue of over $ Eight billion and currently operates over 3,200 properties across 80 countries. It owns, manages or franchises a portfolio of over a dozen brands.

Hilton currently operates 2 hotels in Delhi. One of which is under the JV and the other under a franchise agreement with a local partner.

With so many world’s leading corporations coming to India in the year ahead the country’s economy is on  a roll.

New Residential Project in Noida – Jaypee Greens Kensington Boulevard

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The builder Jaypee Group has announced the launch of its new residential apartments, Jaypee Greens Kensington Boulevard, in Sector 131, Noida. This will be a part of the Jaypee Greens Wish Town project and will features 1, 2, 3, and 4 bedroom flats ranging from 550 to 2700 sq feet. The tentative rate is Rs 3330/- per sq. feet.

For more information and booking visit http://kensingtonboulevard.propertywala.com/

Jaypee Greens Announces New Residential Project: Kasa Isles, Sector 129, Noida

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Constuction major Jaypee Group has announced a new residential project in Sector 129, Noida called Kasa Isles. Jaypee Greens Kasa Isles will feature 1, 2, 3 and 4 bedroom flats/apartments ranging from 550 to 2700 sq. feet. The approximate cost will be Rs. 3390 per sq. feet.

For more details and booking visit http://kasaisles.propertywala.com.

Real Estate Trends And Consequences

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An interactive discussion on Real Estate titled ‘Real Estate: Trends, Issues & Consequences’ was organized by Money life Foundation on May 5. The session was jointly conducted by industry experts like Pranay Vakil, Chairman of Knight Frank (India) Pvt Ltd and Pankaj Kapoor, MD, Liases Foras.

AAR's Staying Competitve Seminar
Photo by Phil SextonMr. Pranay Vakil said on the occasion, “One of the major reasons why the prices are high today is infrastructure. Nobody wants to travel long distances for work. Title insurance is another major issue in this industry.”

He added on being quizzed about the short recession, “Liquidity is vital. Developers realized this when sales volumes declined drastically due to the liquidity crunch. The slowdown gave customers ample choice as affordable housing came into the industry in a big way. Investors are ‘fair-weather friends’, Sell ‘ready’ products during a slowdown; contracts can be broken; healthy growth can be sustained by a gradual increase in prices; high-value transactions hyped by the media are not the ‘real’ market and the need is to innovate sales strategy.”

Mr. Kapoor said, “Are we heading towards another asset bubble? Are the prices affordable? What is wrong with the valuation and where is affordable housing? The government is responsible for hiking prices. We need a regulator for this industry to grow and curb wrong practices.”

The workshop witnessed enthusiastic participation from several investors, research analysts and industry experts in form of healthy exchange of ideas between them.

Ms Kavita Hurry, CEO, ING Vysya Mutual Fund asked the speakers to highlight three major issues in the sector.

On which Mr. Vakil said “Three most important things we need in real-estate as a priority are—rental housing, all over the world there is organized rental housing. Here you are left at the mercy of the broker who does not know anything. Secondly, infrastructure— the government cannot be a provider, it can be a facilitator. Thirdly, all these need funds, so get foreign parties excited about India.”

Mr. Kapoor said, “We need to address the congestion issue in the island city. If we move five buildings from the island city to Bandra, there will be a whole shift in the crowd. If we can shift Mantralaya, BSE or the Income-Tax office, there will be a difference. There are three-four magnets which draw the crowd there. Everyone knows about it but there is no intension to do that because they are sitting in luxurious places. We need to add more connectivity. We need a complete master plan for Mumbai to reduce the congestion. We need a regulator, and urban planning.”

Other industry experts also voiced their opinion.

The audience reached to a consensus which was that there is an immediate need for a citizen action forum to make higher authorities listen.

quences

Buyers Investing Again in Residential Properties

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Goa Real Estate Properties - Sapana Palmeiras 1




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.

JLLM and WIPRO Come Together.

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Real estate consulting company Jones Lang LaSalle Meghraj (JLLM) has signed a big contract with a country’s major information technology company Wipro for managing its 2.3 million square feet of office space in Bangaluru, Mumbai and Mysore.

Auto Rickshaws, Bangalore India
Wipro is the third largest exporter of the country of information and technology whereas with global revenue of $2.5 billion in the last year, Jones Lang LaSalle serves clients in over 60 countries from750 locations across the world, including 180 corporate offices. The firm is a forerunner in property and corporate facility management services, with a portfolio of approximately 1.4 billion sq ft worldwide.

The statement issued by JLLM contained “Riding high on its recent successes with Indian corporates such as Max India Group and Lavasa (of HCC group), Jones Lang LaSalle’s Integrated Facilities Management India team has won a facilities management contract with another Indian corporate giant – Wipro Technologies”.

“There is a vastly increasing demand for professional integrated facilities management services in India,” said Yash Kapila JLLM’s Integrated Facilities Management MD.

The coming together of two big corporations is a good sign for the industry.