Morgan Stanley Likely To Invest In Commercial Project

Posted on February 14, 2013 by designer

Morgan Stanley plans to invest in Bandra Kurla Complex, in Mumbai where the firm will develop around 1.6 million sq. ft. of office space. If this deal takes place this will be the first investment of Morgan Stanley in India in the commercial sector.

Morgan Stanley plans to invest in India

Morgan Stanley Real Estate Investing is pondering over the firm’s plans to develop 1.6 million sq. ft. of office space in Bandra Kurla Complex in Mumbai. Mumbai- based real estate firm, Wadhwa Group, initiated construction of the project under which two more commercial towers will be developed by the end of next year.

Though the deal is only in its initial stages now, it would be the first investment by Morgan Stanley investors in the commercial sector of India. Earlier the firm had invested $850 million in India for developing a real estate project. However the project was basically a housing project. And so it would be the first time the American firm will be investing in a commercial project. Continue reading →

GMR To Sell Chennai Technology Park For Rs.150 Crore

Posted on February 13, 2013 by designer

GMR Group, a leading infrastructure company plans to sell its Chennai technology park – Cognizant Technology Solutions for Rs.150 Cr.

GMR Group plans to sell its technology park in Chennai,

Leading infrastructure development company GMR Group plans to sell its Chennai technology park. The deal is supposed to be fixed at a price Rs.150 Cr (approximately $30 million). Their Chennai technology park – Cognizant Technology Solutions is located on Old Mahabalipuram Road (OMR) one of the prominent IT hubs of the city.

Bangalore-based Global Tech Park and a leading chartered accountant in the South are the two strong contenders who have expressed their interest in the project. Bangalore-based Global Tech Park; though leading the race, may have to face stiff competition from the prominent CA.

OMR-located GMR Varalakshmi Tech Park was entirely leased out to Cognizant Group. The total built-up area of the technology park is over 400,000- sq. ft. One of the subsidiary firms of GMR Group own the tech park.

GMR Group is an infrastructure conglomerate which has vast land banks in Bangalore, Chennai and Hyderabad. While a senior spokesperson of GMR Group refused to comment on the issue, Global Technology Park promoter Satish Chandra could not be contacted for the comment.

GMR plans to sell its tech park in Chennai for a sum of Rs.150 Cr.

Global investment firm and the ultra-high net worth CA are vigorously after the deal. Both of the contenders are sure of their returns in the investment. The investment in the park assures easy returns as the park is highly income generating without any involvement of risk-factor. The proposed buyers expect to gain an average returns by 12% per annum.

Blackstone Group, prominent private equity firm, has invested almost $1 billion in the real estate market of India in the last three years. Indian market also saw huge investments by Xander, Mapletree and many others.

These foreign investors have shown interest in Bangalore, Chennai and Gurgaon– areas where real estate grows faster. Such deals are considered as defensive in the real estate market which is said-to-be sluggish these days.

Yamuna Expressway Awaits Approval Of Master Plan 2031

Posted on February 13, 2013 by designer

Seeking approval from the state government, Yamuna Expressway Authority has dispatched a revised draft of Master Plan 2031 for the development of the first phase.

More residential development is likely to come on the Yamuna Expressway corridor.

Yamuna Expressway Authority has dispatched a revised draft of Master Plan 2031 to the state government with some alterations. The altered draft omits plans to build Jewar Airport and the Yamuna Expressway Authority will reserve the set- aside- land for the airport.

Earlier 10,000 hectares of agricultural land was kept apart for the airport construction. Once the plan gets approval, the revisions will be implemented in the sub-regional plan of Uttar Pradesh.

During its last month’s board meeting, Yamuna Expressway Authority had declared that it would send revised master plan to the state government for approval. However the move is believed to follow the State’s CM Akhilesh Yadav’s decision to construct the proposed airport somewhere nearby Agra or its neighborhood. Continue reading →

Property Expo 2013 To Be Conducted In UAE On Feb 15 &16

Posted on February 12, 2013 by designer

Indian real estate developers will exhibit their properties in the Property Expo 2013 conducted in UAE for two days. Property Expo 2013 is expected to be a big success.

Property expo 2013 will be conducted in Dubai on Feb 15 & 16.

For the NRIs property exhibitions are good platforms for to learn and know more about properties located in India. So far they have remained successful in investing their surplus income in their motherland as they come to know about the properties in their motherland. With the same hope they look forward to the upcoming Property Expo 2013.

This year Property Expo 2013 will be conducted in Dubai on February 15 and 16. Dubai-based real estate firm Yard Real Estate and Indian Properties; another leading realtor, will collaborate with each other to host the Property Expo 2013 in Dubai. Continue reading →

FSI Policy In Mumbai Has To Be Reviewed; Maken

Posted on February 12, 2013 by designer

Union housing minister Ajay Maken said that the FSI policy in Mumbai must be reviewed. He said that only by revising the FSI policy is necessary for developing affordable houses.

FSI policy in Mumbai likely to be reviewed.

Union housing minister Mr. Ajay Maken said that the FSI policy in Mumbai as well as in all the mega cities of India must be reviewed. He added that the builders will be able to develop more affordable houses, if the Floor Space Index is raised.

There is a possibility for all the major cities of India to have taller skyscrapers in future. If the FSI policy is revised and the FSI rate is raised, then the mega cities like Mumbai and Bangalore will have taller residential development. In fact vertical development is comparatively less costly and so the buyers may be able to get homes at affordable rates. Continue reading →

Properties In Pune Unsold; Boon For Home Buyers?

Posted on February 11, 2013 by designer

Home buyers look with lure to attain a better one among the many unsold properties in Pune. The home buyers are expected to bargain for the unsold properties in Pune.

Properties in Pune remain unsold. Home buyers see it as a boon.

Vast numbers of properties in Pune remain unsold. Recently residential market in the city has experienced stable property prices for a few couples of weeks. Home buyers consider this as a boost for them as they will have plenty of options to choose from. They are also hopeful of attaining properties in Pune at lower rates through bargaining with the builders.

Global property consultant Cushman & Wakefield’s October-December (2012) quarter residential research report stated that the home launches fell sharply in the last quarter of 2012. Though there was a substantial increase in home launches here in the first three quarters of the year, the final quarter faced around 60% fall in new launches. Continue reading →

Real Estate Sector Wants FM To Lower Costs Of Finance

Posted on February 11, 2013 by designer

Real estate players of India hope that Finance Minister’s upcoming budget will bring down the costs of finance for the construction sector. Finance minister is likely to announce new Budget which is expected to boost the real estate sector on February 28.

Real estate sector wants Financial Minister to lower the financial costs.

Real estate developers expect that the new budget which the Finance minister of India will announce on February 28 will contain provisions to boost the real estate sector. Builders and other realty players expect the cost of finance for the construction will be brought down by the new budget. They demanded that it will be enabling them to provide housing units at lower costs.

Real estate developers are also hopeful of faster clearance for their projects. Many at a time, the delay takes place due to the longer time taken for gaining the clearance. The delay in gaining clearances leads to delayed deliveries. Further the cost also gets accelerated in meantime, developers claimed. All these affect home buyers onto whose shoulders the additional cost is loaded. Continue reading →

DDA Plans Reconstruction Of Dangerous Houses

Posted on February 8, 2013 by designer

Increasing incidents of building collapse prompt Delhi Development Authority (DDA) to reconstruct dangerous and unsafe buildings in the city. However DDA’s plans of reconstruction are dependent on building owners whose consent is necessary for the reconstruction.

DDA proposes a reconstruction of unsafe buildings

Recently Disaster Management Authority conducted a survey on unsafe buildings in the National Capital. Using the survey a team of experts have focused five areas of the city where many buildings are identified as dangerous and unsafe. The team proposed to the DDA that the buildings in these areas have to be renovated or totally reconstructed.

The proposal has already been approved, though only in-principle, by an LG – headed DDA meeting. However the financial matters are to be worked out. Fatehpur Beri, Gandhi Nagar, Kondli, Lal Kuan and Lalita Park are the five areas which have been selected for the reconstruction of unsafe houses. These areas have witnessed a number of building collapses recently. Continue reading →

Blackstone To Buy Bangalore Business Park For $367 Mn

Posted on February 8, 2013 by designer

US-based private equity firm Blackstone, along with two Indian real estate firms, plans to buy Business Park in Bangalore at a price of $367 million (Approximately Rs.19.5 billion).

Blackstone aims to own Business Park in Bangalore.

US-based Blackstone plans to buy Bangalore Business Park for a sum of $367 million. The private equity major is in talks and is expected to buy the Business Park in Bangalore. The deal is said to be over within two or three months.

The Rs.19.5 billion deal is expected to be the largest ever private equity investment in India since 2008. Blackstone, along with HDFC and Embassy Realty group, will equally invest in the Business Park in Bangalore. The Business Park is located in the outskirts of Bangalore. Continue reading →

Mumbai & Delhi; Top The List Of World’s Cheapest Cities

Posted on February 7, 2013 by designer

A recent survey reports that Mumbai and Delhi are included among World’s cheapest cities. Mumbai shared the top-spot with Karachi; while Delhi stood third.

According to a survey; recently conducted by Economist Intelligence Unit, top Indian cities Delhi and Mumbai have found place among world’s cheapest cities.

Mumbai tops the list of all least expensive cities of the world.

Mumbai and Karachi; the financial capitals of India and Pakistan respectively, topped the list of the cheapest cities of the world. They were followed by the Indian Capital city New Delhi which was ranked third. Algiers, the Capital of Algeria and the Capital of Nepal Kathmandu were the other two world cities included in the top five cheapest cities of the world.

Recently Economist Intelligence Unit conducted a survey among world’s top 131 cities. The survey was based on the cost of living. The cost of living was decided on the prices of over 160 items. The list of the items included the transport-fares, utility service charges, and expenses on food and clothing.

Continue reading →

Ghaziabad -Gr Noida Link Rd To Boost Realty In Ghaziabad

Posted on February 7, 2013 by designer

Realty market in Ghaziabad is likely to grow with the arrival of new 22 Km –long link road connecting Ghaziabad and Greater Noida.

Ghaziabad to see real estate growth with the launch of link road.

Ghaziabad will witness the growth of realty in the city. This is made sure with the resume of construction of the Ghaziabad – Greater Noida link road. The 22 Km –long link road will connect the city to the Zeta sector.

The proposed link road is expected to reduce the commuting hours. Further it will take away the amount of traffic on NH-24. As connectivity plays a greater role in any of the area’s real estate development, the builders are already planning to develop projects in this link–road corridor. The area falls under Ghaziabad Development Authority. Continue reading →

Residential Market Revives After RBI Rate Cut

Posted on February 6, 2013 by designer

Real estate experts said that the residential market across India has revived after RBI cut its major rates. After the RBI rate cut; the home loans have become cheaper and this has improved the sentiments of home buyers.

Residential market started reviving after RBI cut rate.

RBI rate- cut have highly affected the sentiments of home buyers. With the RBI rate cut, the home loans have become cheaper. This has increased the housing demand that helped residential market to revive.

Praising the RBI rate cut, real estate developers and consultants have said that the act will improve the housing demand. As a result the residential market will see a growth. According to them, the rate cut will boost foreign investment as well.

Last week; in a much awaited decision enabling the subsidiary banks to offer loans at lower interest rates, RBI had cut short its key interest rates. The Central Bank lowered the repo rate by 0.25% and cash reserve ratio by 4%. Continue reading →

Top Property Investment And Home Destinations In India

Posted on February 6, 2013 by designer

Many cities are emerging as hot destinations for property investment in India. Here we have shortlisted a few property investment and home destinations which provide better returns to the investors.

Top destinations that provides better returns for your property investment .

Chembur, Ulwe and Wadala in Mumbai are three most-promising property investment and home destinations. These areas are noted for its improved infrastructure and job-generation capacity.

Noida-Greater Noida Expressway, Yamuna Expressway and Noida Extension are three top destinations in the National Capital Region. These areas offer better price appreciation to the investors. So they remain top destinations for property investment as well. Continue reading →

DLF to raise Rs.2100 Cr via institutional placement program

Posted on February 5, 2013 by designer

India’s largest real estate firm DLF plans to raise Rs.2,100 Cr through institutional placement program (IPP)- a system in the market in which the stakes are sold to qualified institutional buyers.

DLF to raise Rs.2100 Cr through IPP.

DLF, India’s largest real estate firm, by April 2013, will raise over Rs.2100 Cr via selling its shares to qualified institutional buyers. The real estate major will sell around 8.1 Cr shares of the firm to raise the fund.

Though the move is in line with the guidelines specifying 25% public shareholding, the main aim of the move is to help the firm reduce the debt. However the Rs.2100 Cr fund is one of the biggest ever- raised through IPP, in India.

An official said that they have already started discussions with the bankers. He added that the firm is likely to appoint around three or four merchant bankers soon for the purpose. Though the pricing is not yet done, the official said that the shares will be priced either at the current market price or there may be a 5% discount in the existing prices. However the prices will be as per the prescribed guidelines of IPP, he added. Continue reading →

Ahmedabad Authority (U.D) Halts Conversion Of Agri. Land

Posted on February 5, 2013 by designer

Ahmedabad Authority (Urban Development) froze the conversion of agricultural land. The move of AUDA will affect thousands of realty investors who have invested in lands. Many investors had invested on lands for constructing farmhouses.

Ahmedabad Authority bans conversion of agri land

Ahmedabad Authority bans conversion of agricultural land for construction purposes.

Thousands of realty investors have invested in 68 villages that fall under the limit of Ahmedabad Urban Development Authority. They will be trapped as AUDA halted conversion of agricultural land for other purposes. It seems that non-agricultural conversions will take place only in rare conditions.

Those who have invested in the agricultural land with the aim to covert them later and have not gained NA permissions already will be affected by the Ahmedabad Authority’s new plan. Under the new plan the conversion of agricultural land for other purposes will be banned entirely. Continue reading →

Vadodara’s Vacant Properties? RTI Reply Invites Mix-Up

Posted on February 4, 2013 by designer

An RTI reply stated that Vadodara has around 1 lakh of vacant properties. The RTI reply is considered as an alarm-bell for the real estate sector in Vadodara.

Sunset scene from Manjalpur Bridge in Vadodara: Confusion arises over the number of vacant properties.

According to an RTI reply, over 1 lakh of properties remain vacant in Vadodara. Meanwhile there appear no takers for the property, it added. The RTI reply which revealed that there are over 1 lakh vacant properties in Vadodara has been considered as a warning- sign for the real estate sector in the city.

RTI reply was made by the Directorate of Census Operations, Gujarat, to a native of Vadodara. A copy has been sent to the Vadodara Municipal Corporation as well. The RTI reply clearly stated that over 1 lakh properties, precisely 1.02 lakh, were vacant in the city. Continue reading →

Blackstone To Gain Huge Profit From Its JV With Embassy

Posted on February 4, 2013 by designer

Blackstone, one of the leading global private equity and investment firm, is set to amass a huge profit from its Joint Venture in Bangalore.

Realty investment in Bangalore gives a good reap to Blackstone.

Blackstone has, joining hands with Bangalore– centered real estate firm Embassy Property Developments, planned to develop a luxury-oriented residential project. The Blackstone- Embassy group will jointly develop 467 housing units; each unit priced between Rs.3 to Rs. 10 Cr, in the project.

Blackstone expects to gain around Rs.210 Cr from their JV. This is their first big investment in Indian real estate market. In 2011 the global private equity major invested in Embassy Lakeside Terraces which is an ultra-luxury villa project. From their investment in the project, Blackstone is expected to gain around Rs.210 Cr which represents around 28% of the absolute profit. Continue reading →

Walmart Anxious Over States’ Veto Power On FDI

Posted on February 2, 2013 by designer

Walmart as well as US government seem concerned over States’ veto power the states have over the Foreign Direct Investment. They have conveyed their concerns, to the union government of India.

Walmart remain cautious to enter Indian Market as the states are given Veto Power.

Wal-Mart Stores, Inc.; generally branded as Walmart, an American multinational retail corporation, as well as the US government has revealed their concern over the veto power conferred to the states by the Union Government of India. Union Government’s decision to confer absolute power to the states; to decide on the matters related to the foreign retailers’ entry into their states, is seen as a barricade for the foreign investors.

Being concerned over the veto power of the States, many of the foreign retailers like Walmart, still not interested in the Indian Market. They, the world’s largest supermarket chain, still remain reluctant to enter the Indian Market. Continue reading →

Residential Market Likely To Grow Theme-Based

Posted on February 2, 2013 by designer

Theme-based housing has become the latest trend in the Indian residential market. According to the industry experts, the theme-based housing projects hold better potentials for growth in India.

Indian residential market becomes theme oriented.

Recent trend in the Indian residential market is that it has become theme-based. Indian realty market witnesses a steady increase in the demand for theme-based housing projects. Viewing this increased demand for theme-based homes; Tata Housing Development Co. Limited is up with many theme-oriented projects.

Speaking to media persons Mr. Rajeeb Dash, marketing head at Tata Housing Development Co. Limited; said that theme based projects are becoming more popular in India. In his opinion theme based projects have a very bright future in the residential market in the upcoming days.

The growing trend is seen as resulting from the people’s contact with the outer world. At present the people of India travel a lot; and they get acquainted with the housing trends in the world-cities like Paris, New York, Dubai and the-like. These cities influence them and moreover they become aware of the western culture and the residential markets there. Continue reading →

AUDA To Raise FSI; Ahmedabad To See Taller Buildings

Posted on February 1, 2013 by designer

Urban Development Authority of Ahmedabad (AUDA) may announce its new Development plan on February 1. The new development plan is expected to raise the floor space index (FSI) up by 30%.

AUDA to raise FSI in February.

Paving way for vertical residential development, the new development plan, likely to be announced by the Urban Development Authority of Ahmedabad, will raise the floor space index (FSI) by up to 30% in Ahmedabad. The New development plan will cover 68 villages. The new plan is expected to permit the builders to develop sky-reaching buildings. Continue reading →

Indian Realty Sees Private Equity Firms’ Faded Zeal

Posted on February 1, 2013 by designer

Private equity firms show low interest to invest in Indian Realty and infrastructure. India witnessed a deep fall in the Private equity investment in the last year.

Indian Realty loses its attracting charm.

According to a report by Grant Thornton, a leading global accounting firm, the Private equity firms have lost their interest in the Indian Realty and infrastructure. As per the Grant Thornton report $ 7.4 billion was invested in India by the private equity firms in 2012. Private equity investment of 2012 is comparatively very lower to the same of the previous year in which $8.8 billion was invested, the report adds. Continue reading →