Monthly Archives: July 2010

Real Estate Industry In India To Reform

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Photo by Joe AthialyIndian Real Estate Developers have fastened their seatbelts to come at par with their counterparts in other parts of the world. This has been started by the formation of new boards and committees which will include leaders from the Real Estate and Infrastructure sector of the country.

The move was initiated by RICS (Royal Institution of Chartered Surveyors) India.

The persons in the committee will mainly focus on developing standards and practices in the Indian Realty Market to increase the level of professionalism and transparency among professionals as well as bring reforms in policies for the benefit of people at large and overcome barriers obstructing the growth of industry.

The various challenges that have to be met are the currently fragmented and old legal system including the current laws on land acquisition, problems associated with Rent control laws, providing infrastructure facilities keeping pace with the speed of urbanization, lack of skilled professionals in the industry, among others.

As said by Sachin Sandhir, MD, RICS India, “As the mark of property professionalism worldwide, RICS aims to develop professional knowledge and standards in India and protect public interest through best practice regulation. We are pleased to be represented by India’s most established and respected professionals in this industry and are confident our new Boards and Committees will enable us realize this goal”.

An Agenda-driven conference on the issue saw participation from various Government bodies such as SEBI, National Housing Bank, Ministry of Corporate Affairs. Matters that were discussed were the need for valuation reform and the directions for future practices for the Real Estate Industry.

Real Estate Developers Tie-Up With Education Industry

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Po.Realty sector and Infrastructure firms like GMR and Hindustan Construction Company have announced to set up university campuses and other educational institutes within the country. They mainly aim to ride high on the huge returning education industry.

The education industry in India is worth more than 10 bn US dollars with continuous growth rate. As the Real Estate market is on a low developers are looking at alternate assets such as education.

Partnerships of such kind are increasing day by day in every other township or SEZ as educational institutes bring more revenue.

Chintan Patel, Associate Director, Transaction Advisory Services, E&Y said, “Access to social infrastructure such as schools and colleges serve as attractive features that make it easier for a developer to sell projects.”

Further he had to say that partnerships between a developer and an international institution benefits society and develops retail, office and residential spaces around.

The tie ups usually work on build-and-rent business model. While a developer acquires the land and builds the infrastructure for the educational facility, the institute runs the school or college. It either pays rent or works on a revenue-share model.

The companies which are laying out plans in education are HCC who have bought 500 acres for institutes at Lavasa, its hill city project close to Pune, Maharashtra.It has tied up with Symbiosis, Bangalore-based Christ University, Institute of International Business Relations of Germany, Switzerland-based hospitality Management Institute Ecole Hoteliere de Lausanne and Educomp, and more.

Global infrastructure player GMR, too, has collaborated with Canada-based Schulich School of Business to build a campus in Shamsabad, Andhra Pradesh, The Company will construct the physical infrastructure for the institute, and in return, earn management fee on the maintenance of residences and hostel facilities. Also, it is planning an aviation academy on 25 acres in the same region, fueled by its international airport project in Hyderabad.

Realty Market Attracting Manufacturing Companies

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People seldom notice old clothes if you wear a big smile - Lee Mildon
The shining real estate market in India has now attracted even small as well as medium scale manufacturing companies. In fact, around 6 to7 companies have even announced real estate projects either with partners or monetized their prime land assets.

Some of such companies are:

Textile company Arvind announced a residential complex across an area of 10,00,000 sq ft in Ahmedabad, in partnership with B Safal Group.

Cable Corporation of India (CCI) plans a project in the western India. The project is located in Borivali area of Mumbai and will be a project worth Rs. 1000 cr.

Usha Martin, the steel wire maker recently launched a residential project in Boisar, on the outskirts of Mumbai, and also plans to come up with more such projects in Bangalore and Pune.

Golden Tobacco and Hindustan Composite are next on the list who have not exactly launched projects but have sold their lands to Wadhwa group and Sheth Developer respectively for real estate projects.

Similarly, Reliance Group, Bombay Dyeing and Century Textiles etc are entering into this market.

Thus, conclusion can be drawn that the manufacturing companies are now hitting the realty market.

Best Features of Noida Extension

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CORNER LOT FOR SALE: SAGAMI-OTSUKA
After the locations called Raj Nagar Extension, Mayur Vihar Extension, now its Noida’s turn to stretch itself and the name given to this stretch is Noida Extension.

There are large numbers of upcoming projects here located adjacent to Noida’s Sector 121. These face the Noida-Greater Noida Link Road. It is expected that within next three months, this stretch will become operational.

Some of the major features of Noida Extension are:

Prime Location: Noida Extension actually belongs to Greater Noida sector 1. It is a part of NCR and is close to Noida sec. 121 and sec. 119.

Connectivity: One of the best features of Noida Extension is its connectivity across the complete NCR. And the upcoming metro line is acting as cherry on the cake.

Infrastructure: The Noida-Greater Noida Link Road which is 130m wide passes through the area. Also, NH 24 is just 60m away.

Long Term Investment: The area will pick its pace in around a year or two. But once it is full fledged, it won’t lack returns. Thus, it’s a long term investment opportunity.

Options for all: The developers are coming up with all kind of residential projects, office spaces and commercial projects. Thus, Noida Extension will have goodies for everyone.

Affordable Housing: The projects brought up by the developers provide a large range of residential opportunities whose prices will fall in the range of Rs. 9 lakh to Rs. 40 lakhs.