Tag Archives: Business/Finance

Realty Big Players Attracted Towards Small Cities for Expansion

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NEW DELHI: Growing demand for homes in smaller cities of the country is attracting real estate biggies. Cities like Bhopal, Bhubaneswar, Coimbatore, Indore, Jaipur, Lucknow , Nagpur, Surat , Vadodara and Visakhapatnam are estimated to add 354 million sq ft of residential development in the coming 03 years. According to a research, large builders like DLF , Unitech , Parsvnath , Omaxe , Ansals and Emaar MGF have already diversified into these cities. These cities today show huge potential for growth. These cities are attracting the big developers because of their considerable price stability and growth prospects. With economic activity picking up in these cities, there is a growing migration from smaller areas, which has created a shift towards an apartment culture. This shift will foster volumes for larger developers in the future.

Looking at this new demand, banks and financial institutions are also looking towards these cities to bridge the financial saturation gap.The growth prospects in the smaller cities are fascinating huge developers with multi-city existance.

Brokers Hunt for Jobs as Slump Hits Realty Sales

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NEW DELHI | BANGALORE: Broker in Bangalore bylane has just opened a stationery shop. He has named it ‘Smart Shop’, borrowing the name from the realty brokerage firm that he ran from the same premises until about two months ago. He switched to retail after his property business hit a rough patch following a slump in home sales. About 03-quarters of his revenues came from sale of apartments, the remaining from renting.

“With home sales dropping, it doesn’t make business sense anymore,” he says. It’s the same story in other big cities. In Mumbai, a mid-size broker has set up a small fast food joint to make ends meet. In Nagpur, a real estater has quit the real estate business and set up an ice-cream parlour. Their worries are not unfounded. While the large and established players in the property business have managed to stay, even during the slump, thousands of smaller players like brokers and agents are being forced to look for other jobs.

It also hit lakhs of people employed with such small outfits – each of which hires 5-15 people.With many brokers closing shops or reducing size, these people are out in the market, looking for jobs in sectors such as retail, banking, insurance and call centres. The real estate industry employs about 10 lakh people across the country, the majority in the unorganised sector.

In the first quarter of 2011, home sales dropped 17 per cent in Mumbai, 14 percent in Bangalore and 15 percent in Hyderabad. According to consultant Jones Lang La-Salle, unsold residential units in projects that are complete or are nearing completion in 6-12 months in Mumbai and Delhi-NCR are as high as 25 percent and 16 percent, respectively. In other big cities, including Bangalore, Chennai and Kolkata, the numbers range between 12 percent and 19 percent. Sales in tier-II and tier-III cities are steady, though there is some panic due to the increase in interest rates, which have climbed to about 11 percent from 8.25 percent a year ago.

“For smaller brokers, the impact of the current market factors is a lot more compared to the larger brokers,” says the president of the National Association of Realtors India . “Even for our members – who are fairly well-off – business is down 40 percent compared to 2009-10. But the smaller guys are in trouble and are setting up businesses that move on a daily basis. Many I know have asked their employees to look out” Ravindra Bramhe, chairman of the Maharashtra Property Brokers’ Association, says.

For whatever business is left in the market, there are hundreds of agents in queue. For instance, there are pockets on the Noida Expressway, near large projects, where real estate brokers can be seen sitting inside small tents, under the sweltering sun, waiting for business. Those who can’t afford to set up these tents can be seen on the roadside, running after every car that passes by, with brochures and flyers of projects in hand. Industry refers to them as the broker mandi. “All my friends and colleagues are now looking outside real estate before things get worse,” says Chaudhary. Many have returned to the insurance industry and others have found jobs with small call centres. A few have found employment with retail stores.

Real estate prices fly in Delhi, NCR

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NEW DELHI: Real estate prices in some areas of the NCR glided high by 20 to 27%  in the first quarter of the current financial year as compared to the subsequent period of 2010-1. “Property prices for Delhi have seen boom if we compare per square feet prices of Q1-11 over Q1-10. Certain key areas like Sarita Vihar and Rohini have seen 27% and 20% growth respectivly in prices compared to prices over Q1-10”.

According to a report, the upward price sentiment would continue as the prices on average are hiking up by 15%. The South Delhi locality Sarita Vihar’s PSF prices rise by 27.60% at INR 8,110 as compared to Inr6,356 in the period of 2010-11, while north Delhi-based Rohini’s PSF prices increased by 25%. This is followed by Patparganj at a PSF price appreciation of 21.68%. Other localities like southwest Delhi-based Dwarka sub city’s PSF price also increased by 28 % in sector-11 and sector-2.

Realty prices in suburban NCR like Noida and Gurgaon also increased because of metro rail services came into operation. Prices per square feet in sector 110 and sector 93 of Noida also moved up by 16 %  and 11 % respectively,  as compared to prices in the corresponding period of last financial year. “Gurgaon witnessed an upgoing trend in property prices. Properties located on the Sohna Road and DLF City phase IV have seen the highest growth in prices by 46 % and 42 %, respectively, in Q1-11 over Q1-10”.

 

GMR Declared Net Loss of Rs1,006.7 crore for 4th Quarter

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GMR Infrastructure on Tuesday declared a consolidated net loss of Rs 1,006.7 crore for the fourth quarter ended March 31, on account of a one-time loss from its dissociate of power company InterGen NV and losses from its Delhi airport.

Losses from the Delhi airport stood at INR 214 crore for the quarter on higher capacity costs, including interest charges and depreciation, with Terminal-3 becoming operational during the financial year. GMR’s net revenue during the quarter increased 74% to INR1,962 crore over INR1,125 crore in the corresponding period last year. The growth was assisted by revenue from its Male airport, the increase in traffic at Hyderabad and Delhi airports and better operations in its Chennai and Kakinada power plants, the company said.

The losses from the InterGen dissociate and Delhi airport operations also diminished the full year performance of the company which posted a loss of INR 929 crore for 2010-2011 as against net profit of INR158 crore in the past year. Full year revenue, however, increased 26% to INR 5,773.8 crore with airports contributing 41%, energy business 38% and highways 7%. The chairman of the GMR group said,“Though the dissociate of InterGen has resulted in a one-time and non-recurring loss, it has released equity capital of INR 958 crore and would enable us to reinforce our focus and resources on more profitable Indian assets.” The company also expects to recover part of the loss through Island Power, which is Singapore-based electric utility.

Chhattisgarh Developers to Follow CREDAI Transparency

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CREDAI is coming up with new system for Real estate developers in Chhattisgarh. They will have to follow way to ensure transparency in the dealings of the sector. “The sector has been under the scanner of customer and the real estate developers across the country are on one operation, that is ‘transparency’ and hope to achieve it through the code of way initiated,” National President Lalit Jatin of CREDAI said.

The members in the state were prompt and had signed the declaration to follow the new rule drafted by the apex body of the real estate developers. The state will also have a consumer redressal forum managed by the Confederation. Under this new system, it would be compulsory for the developers to mention the actual usage area to buyers, reimbursement in case of project delay and honouring of the agreement between the two parties, said Anand Singhania, president of Chhattisgarh Chapter of CREDAI.

Moreover, there should be a true revelation of the property under development in the
“Title Certificate” from a solicitor or an Advocate showing the rights and obligations of the developers along with the Agreement for sale. All sanction from the sanctioning authorities like approved plans and starting certificates, should be made available for scrutiny of the purchaser at the time of signing the agreement.

The members will have to follow set of rules laid down by the national body. “If any member defy them, would be removed from the Association,” Jain said, also added that they would appeal people not to buy any property from the developer
who was not a member of CREDAI.

Fathers of Balwa, Goenka Joins DB Realty Board: Mumbai

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Another resignation of independent director of DB Realty Board from the board of the company. The real estate company introduced Krishna Murari Goenka , father of the promoter Vinod Goenka , and Usman Balwa, father of the promoter and the previous Managing Director Shahid Balwa, as additional Directors.

Michael McCook, was a non – executive Director  who resigned from the board last week. He was on the board since June 28, 2008 as a nominee director of financial investor Bollywood Mauritius Holdings, Mauritius. Bollywood Mauritius holds 4.66% stake in DB Realty. The company on April 21, appointed KM Goenka and Usman Balwa on the board, announced in a notice to the stock exchange.

The Delhi Court had rejected the bail pleas on April 20 of five corporate executives, including Swan Telecom Director Vinod Goenka, named by CBI as one of the accused in 2G scam. DB Realty’s former managing director Shahid Balwa in 2G Spectrum case is already in Tihar jail.

11% Hike Observed in Mumbai Rentals

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Rising real estate rates may have resulted in a spiky decline in property sales, but it has lead to a good growth in rental value in Mumbai and other metropolitan cities in the country. Mumbai and the outskirts of the city have seen an 11% growth in rental value in the past year. The figure for Bangalore, Pune and Delhi has shot up by 13%, 11% and 9% respectively.

Unexpectedly, rental value in South Mumbai, one of the most preferred locations to stay in the city, has seen a drop. The Worli residential market saw a 21.31% drop last year, while the figure for Prabhadevi, Parel and Bandra (West) fell by 18%, 12% and 11.57%. “The rent in South Mumbai had gone up to the roof. It is still unaffordable. So, people are shifting towards the suburbs and outskirt of the city,” a real estate expert said. However, the rental value in the suburbs too has shot up radically. Borivli (West) witnessed a record of 42.25% growth, while the rates have shot up by 35.04% in Powai, 28.32% in Malad and 20.40% in Kandivli (East). The Mumbai metropolitan region too has seen a rise in rental value. The figure for Mira Road and Seawoods shot up by 39.28% and 36.36% respectively in the past year.

A real estate expert featured the rise in rental value to exorbitant property rates in Mumbai. “People prefer to stay in rented homes instead of buying a house. Also, there is a huge arrival of people in the city. As a result, there is a huge demand for rented homes,” a study says. Government data compiled by the stamp duty department also shows that there is a 35% of rise in the number of lease agreements being signed in the city.

TATA Housing Development enters into Redevelopment of Old Buildings, Mumbai

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TATA Housing Development, a subsidiary of Tata Group is entering into its home market in Mumbai by taking up project of redeveloping of old building complexes. The developer has started operations pan India which has been restricted to building townships and residential complexes adjoining the Greater Mumbai.

Brotin Banerjee, Managing Director & CEO, TATA Housing Development said, “we expect to start doing the premium housing project of redevelopment of the societies in the western suburbs of Mumbai such as Andheri and Bandra. However, in such redevelopment projects societies normally they call for bids, which make it quite competitive. This was told to Financial Chronicle.

The company hopes that its reputation for ethical behavior would get preference even if its bid is lower than others as these societies have had bad experience when dealt with lesser known realtors.” Unlike certain other developers we cannot cut corners or engage in illegal activities as these would violate the TATA code of conduct”, so it would be safer for the societies to go with developers who don’t bend rules and give a better quality housing product said Banerjee.

“These projects would help us ensure that premium development brings in around 60 per cent of our revenues this year even though they will constitute only around 40 per cent of the number of units being constructed,” said Banerjee. The company currently has 45-50 million square feet of area under development. This is split across value and premium housing respectively and includes around four to five million square feet of commercial and office development.

The company expects the first such development projects to be signed up over the next 6-9 months. “Under the Smart Value Homes and New Haven brands itself we have 15,000 homes under construction,” he added.

By the end of this fiscal year the company hopes to have operations in Kolkata, Mumbai, Pune, Ahmedabad, Khandala, Chennai, Hyderabad, Bangalore, Chandigarh and the National Capital region.

Lutron India To Foray Realty Sector

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Living Area
erAs the Real Estate Industry of the country gains pace after the slowdown, many different firms plan to foray into the sector. One among them is the Global Lighting Controls Major LUTRON.

Lutron which is present in the country for more than 10 years is likely to enter into the residential apartment space. Till now they have been focusing only on the hospitality sector and high end residential projects.

Lutron’s Country Manager-India, Mr. Manjul Trehan said, “This is a very nascent market, and we have not touched residential apartments yet. But looking ahead, this would be the volume business. We are in talks with a few real estate companies.” Further he added that the company will mainly concentrate on projects where the expenditure on lighting will be more than one lakh.

The company is looking at 2-3 players in the eastern part of the country but the region is likely to contribute very minimally to the firm’s earnings. Mr. Trehan hoped to double the figures in the next few years.

Even though the company was not badly affected by the slowdown in the market the present and the coming year look challenging for the company.

Shapoorji Pallonji Group Lays Focus On Infrastructure

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3D Realty Handshake
tThe multi million Shapoorji Pallonji Group, India’s one of the oldest and biggest industrial house, is putting major focus on “owned” infrastructure as far as the roads, ports and power are concerned. This has been done as the company approaches 150th year of operations.

Mr. Shapoor Mistry, Group MD said during a function in Mumbai, “We have done a lot of projects under our company Afcons as contractors; now we will give a greater push for ownership-based infrastructure projects. We have already done some work in these areas, but owing projects would be our key focus.”

The group’s interests lie majorly in Real Estate, Construction, Textiles, Apparels, Shipping and Water Purification Appliances.

Shapoor’s father, Mr. Pallonji Mistry, Chairman, Shapoorji Pallonji Group is reportedly one of the largest shareholders in Tata Sons with 18.5% stake in the salt-software corp. house.

Real Estate Firm To Raise Funds

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Feeling Rich
Photo by Trilok RanganA Real Estate firm Embassy Developers is expected to generate over 513 million US Dollars as said by their Prospectus which was filed today. This will be done through an initial public offering of shares.

The draft is available on the Edelweiss website. The lead running managers for the issue are Nomura, UBS, Local Investment Bank and Citi.

The prospectus included that Embassy property is looking at pre-IPO placement of around 57 million shares for up to 11.75 billion rupees with certain investors. The retail investors may be offered a 5% discount on the issue price.

Though the time line is not yet been set.

The Indian companies have raised a lot of money through share sales by mid-June of FY10 from 56 issues which is higher than last year, as shown by the data collected by Thomson Reuters.

India has also asked bids to appoint 4 banks for managing a follow-on public offering in state-run Power grid Corp of India.

Real Estate Prices To Increase

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Sansad Bhavan
Photo by It is very likely that the Real Estate prices in the country will shoot up further with the Finance Ministry’s decision of not withdrawing 2.5% service tax. This move was proposed by the Urban Development Ministry in the budget of FY10-11.

The budget had earlier proposed this tax on all under-construction projects. And it is common knowledge that eventually the customers will have to bear the burden and not the developers.

The declination came as no less than a shock to the Urban Development Ministry. Its Minister Mr. S Jaipal Reddy argued with the Finance Minister Mr. Pranab Mukherjee in the favor of the move in April this year but it could yield no results evidently.

The ultimate sufferers will be the Indian middle class who already has to bear the burden of inflation in almost all other spheres but also dreams of owing a home of their own!

RBI Changes Norms Regarding ECBs

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contact: rajkamal.aich@gmail.com
PIn a recent development the Reserve Bank of India along with the Department of Industrial Policy and Promotion are working to streamline and regulate the access and use of Real Estate Firms regarding the External Commercial Borrowings (ECBs). This will be done through a monitoring mechanism which will ensure stricter norms from now on.

RBI took this step in lieu of Real Estate Companies planning to raise ECBs worth Rs.4000 cr in the future and using this money for activities that cannot be funded through ECBs which will eventually adversely affect our economy.

Presently, Real Estate Companies that are only into developing integrated townships of various sizes are allowed to make use of these ECBs provided it is being used only for activities that are related to the construction of the townships. Now even this window will not be available by the end of this year.

Indian Real Estate And It’s Future

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Shanghai World Expo 2010 Opening
PIndian Real Estate Market has grown with time. The main reason for the accelerated growth can be contributed to the fact that the industry is very flexible in nature.

The development has caused higher aspirations for better standards of living and a good quality of life.

The rapid increase has been because of the relaxed policies of our government regarding Foreign Direct Investment which favors economic development of the country as well as easy Home Loan terms and conditions with an increase in the income of people, degree of urbanization, and their purchasing power. All this has helped shape up the Indian realty sector.

Some of the factors that have given a boost to the Indian Real Estate Market are the FDI policies have increased the amount of Foreign Investment in India. Owing to this our country ranks second most preferred location for Real Estate Investment in the world.

After Agriculture Industry, Real Estate has become the second highest employer.

Real estate whether Residential, Commercial, Retail is being developed on full scale in many different cities of the country.

The large number of people getting education in India will demand over 100 million sq feet of office and industrial spaces.

More so, India has been a host to Fortune 500 companies which in turn attract more companies to make this country their operational base which will also require more office space in future.

Thus it is evident that the Real estate Industry in India will see a lot of work in the years to come.

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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YorkLanes Mall
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.

Yatra Capital to Increase Investment In India

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Panama Property = Money
Photo by thinkpanamaEuronext-listed company, Yatra Capital managed by Saffron Capital Advisors, an Indian Real Estate Private Equity fund has announced to invest around 20 million Euros in India in FY10. The company plans to invest the Rs 115 cr in two deals in the domestic sector of real estate. The company has as of now invested about Rs 916 cr in 13 projects which include 2 entity-level details.

The weighted average Yatra Equity Fund covers 27 million square feet spread over nine cities. They have sold or pre let over 3 million square feet across various projects.

The chairman and Co-Founder, Yatra Capital, Mr. Christopher Wright said, “In India, one needs to be very careful on Real Estate investments as the market is volatile. After a drop in 2008-09, the realty sector is now moving up. The Indian economy is growing well making people more confident on future investments. We have invested 44% in residential projects, which would be our focus area in future. We always look at investing in affordable residential projects in tier I and II cities.”

Yatra has invested in 90 cr Residential Project and 97 cr Market City Retail Project at Pune, 115 cr in Riverbank Holdings, 91 cr in forum IT parks and 23 cr in Taj gateway at Kolkata, 160 cr in market city at Bangalore and 57 cr at Nashik.

It has entered partnership with Phoenix Mills for 5 various projects across Bangalore, Pune and Mumbai.

A presentation by Yatra to investors in March this year said, “Most markets have seen positive traction due to price cuts. However, developers have now started raising prices especially in Mumbai and the National Capital Region which has led to a slowdown in sales. Projects where pricing is realistic continue to enjoy healthy absorptions. The monetary environment tightening may impact the fund raising environment for many real estate companies still out to raise money. Investor enthusiasm for participation in realty IPOs remains muted.”

IL&FS Plan To Invest In Real Estate

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IL&FS private equity is planning to increase its investment in infrastructure and Real Estate sector by the end of FY10.

They announced to increase their investment from 660 million US dollars to 1 billion US dollars in the infrastructure sector. In the realty sector they already have investments of 1.6 billion US dollars. They are planning to take deals in both the sectors as well.

Mr Shahzad Dalal, Vice Chairman of IL&FS Investment Managers Ltd said, “We will invest close to a billion dollars in infrastructure as well by about the end of this financial year.”

Bangalore Properties - Real Estate India - Vaswani Bella Vista 1
Photo by nancyarora2020In the realty sector the firm has spent 1.2 billion US dollars from the total investment on over 30 deals. It is said that they are now looking at 10 more. The left over amount is expected to be deployed by the end of this year mainly in residential space along with commercial.

The company recently bagged a deal in the real-estate segment through IL&FS Milestone Fund in HCC’s Real-Estate project ‘247 Park’ for Rs 575 cr for a 74 per cent stake.

Mr Dalal further added, “The outlook is fairly bullish on both Real Estate and infrastructure. We believe there are a lot of opportunities. There may not be many good projects, but because of our reach and reputation, we do see some really good projects.”

Andhra’s Realty Sector Grows

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Delhi Properties - Real Estate India - Unitech Location
PThe state of Southern India has shown a demand in Real Estate properties over the last few months which is a good news for the people of the trade.

The Realty Sector in Hyderabad, Andhra Pradesh has shown sudden upsurge after the recent political turmoil it went through. The demand for both, commercial and residential properties have registered an increase.

The trend is more evident in Tier I and tier II areas specifically; making them high demand markets.

Prabhakar, a Real Estate Sales Officer had this to say on the topic, “Market is improving as of now because of these developments happening in the Hyderabad areas like outer ring road area, Infosys campus and many other areas, so this is the right time to invest and to buy a customer.”

Even the prices of the realty sector have improved as the customers feel Hyderabad is the right place for investment thus increasing the sales.

Raj Kumar, Marketing Manager in a Real Estate firm puts forth, “NRIs, Doctors and Information Technology (IT) people are coming forward for the investment and even some of the central government employees are also coming forward. As you know, now a days comparing with the facilities what we are giving on what rates we are giving, people are seeing benefits and on these bases they are coming forward for investments and showing interest.”

The sector is one of the biggest in terms of number of employees working in the country. It is anticipated that in the next decade the realty sector will grow at a rate of 30% every year. This is bound to attract foreign investors with as many as 30 billion US dollars along with a number of IT parks as well as residential townships being constructed across our country.

India’s Silicon Valley- Bangalore

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Photo by dno1967Bangaluru has over the years gained immense popularity as the hub for IT industries in India. With great opportunities like world class education, working environment, living standards it is not wrong to mention it as the “The Silicon Valley of India”.

Many non-Bangaloreans now call the city their home. It is interesting to note that over 10,000 dollar millionaires and about 60,000 super rich people are currently living in the city with huge investments to make. All these have made Bangalore a hot spot for Real Estate Market, both Residential and Commercial.

Residential market has seen some significant action with many developers like Prestige and Sunil Mantri, Sobha, rolling out new projects in micro market segment. Some of the key areas in Bangalore, where the residential demand has picked up, are Sarjapur Road and Whitefield, Doddakanenahalli and, Jayanagar.

The supply is growing in line with the revived commercial real estate demand. Latest report from Cushman & Wakefield implores that the total projected supply for the current year is 12.42 million square feet of office space, more than twice the supply delivered in the year 2009.

Indian Market Research Bureau (IMRB) conducted a survey among 5 cities, amongst individuals aged between 25-39 yrs, stated that Mumbai and Bangalore are the most preferred places to live as the cities provide the best quality of life as well as the most courteous people. Bangalore is also identified as a city which is in the process of development on multiple counters – numerous projects have been initiated in areas of Infrastructure, Power, Water, and Sanitation.

All this indicates that this will be a good investment destination, hence attracting FDIs and NRIs fund flows as time goes.

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.

RE/MAX Partners With Visual Advisory Services

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One of the world’s largest Real Estate franchising networks RE/MAX has formed an alliance with a Bhopal based firm, Vision Advisory Services. Re/max proudly boasts off more than seven thousand open offices in 74 countries. This is the first time a company as big as RE/MAX has taken a step towards building a network of Real Estate community on a national level.

Procter and Gamble World Headquarters

The director of Vision Advisory Service, Pradeep Karambelkar said, “We look forward to being a vibrant part of the RE/MAX community and playing an important role in the real estate transactions in Bhopal.”

Vision Advisory Services focuses on ethical and transparent business practices, customer-first-attitude, research-based value investing, implementation of cutting-edge technology and respect for professionalism which has enabled them to create an impact in over 40 cities till date.

Vision Advisory Bhopal has been awarded with many felicitations by almost all major bigwigs of the Investment Industry. Vision advisory well supported by top notch professionals having expertise in well diversified financial services in the areas of  Life and General Insurance, Financial Education, Training Manpower, Stock Broking, Real Estate, Mutual Funds and Resource Management.

It’s a first of a kind initiative taken by RE/MAX India which aims to bring organizing and professionalism in the unorganized real estate market of the country. RE/MAX India is also planning to open Franchisees in major towns and regions of the country.

The RBI’s Realty Indices For Ahmedabad

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Ahmedabad happens to be one of the 11 countries for which the reserve bank of India would prepare one index for commercial and one for residential properties. This is done to curtail speculations and expected realty bubble burst in the coming years. The RBI report on asset price monitoring system (ASMS) advised to formulate these indices two months back.

Reserve Bank of India, Kolkata
Photo by seaview99

Many different countries such as Canada, France, us refer to these indices for realty prices.

The report says, RBI should start compiling a realty index and update it every quarter. To begin with, the report has proposed Mumbai and Delhi where property prices have skyrocketed to record levels. After these cities RBI would add 10 other cities which include Greater Chandigarh, Hyderabad, Chennai, Bhubaneswar, Pune, Jaipur, Kolkata, Lucknow, Bangalore and Bhopal.

The real estate price index once devised would become the primary index that could be perused by investors to gauge the performance of companies that are listed in the realty sector. The index can also help the investor analyze how real estate is performed in comparison to stocks and bonds. It can also provide information on the risk involved in a particular investment and returns that can be achieved from it.

The ASMS report has defined the deficiencies this indices would help overcome.

Gurgoan to be gifted with North India’s Tallest Residential Tower

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A leading private equity fund, Ireo, which is dedicated to the Indian real estate sector with nearly $2 billion of funds, has annunciated the launch of the tallest residential towers in Gurgaon which would be called Victory Valley.

There will be adjacent mid rise options along with the three high-rise residential towers which would essentially be the tallest towers across the whole North India. This Victory Valley will come up with a wide range of choices for the consumers, varying from the 2 BR apartments to 5BR apartments in penthouse/ simplex/ duplex formats. It would have 51 stories.

There will be total 762 flats in the tower. The inaugural base price is Rs 5,500 per sq feet for the bookings of the flats. As per the company plans, the project is likely to complete within 3 years after the commencement of construction.

This project is located at Sector 67, Gurgaon and is spread in an area of 25 acres. Security, comfort and convenience will be the three major pillars of this tower.