Dubai based Meydan Group plans to develop a project in Dubai’s Mohammad Bin Rashid City. The project will be launched in conglomeration with Indian developer Lodha Group. Continue reading
NEW DELHI: Growing vacancy rates has affected the shopping malls. As per some recent reports the vacancy rate of office space in shopping malls is 30% in Delhi-NCR and 25% in Mumbai. Continue reading
New launches fall in Mumbai.
MUMBAI: The first quarter of 2013 witnessed a sharp fall in the number of new launches in Mumbai. The new figure however is compared to the number of new launches in the last quarter of 2012.
The last quarter which is the season of festivals like Diwali, usually have larger number of new launches. Liases Foras reported that the number of new launches were the maximum in this quarter across the country.
Managing Director of Liases Foras Pankaj Kapoor said that Mumbai has only a fewer new launches compared to the last quarter of 2012. The developers are postponing the new launches due to the weak home sales.
Home sales are yet to pick up in the city. The demand for housing units is still not so impressive. This negative market sentiment has been considered as the reason which forced the developers to postpone their new project launches. Continue reading
Essel plans to raise Rs.1000 Cr for investing in residential sector.
MUMBAI: Private Equity wing of Essel Financial Services Ltd has already raised Rs.200 Cr. The fund will be invested in the real estate sector. Essel Group plans to develop housing projects in top cities across the subcontinent.
Private equity in real estate (PERE) is increasing in India. 2012 saw 32 PERE investment deals. Nearly PERE Funds worth $464.26 million was invested in last year. This is well above $310.88 million in 2011 which saw only 15 such deals.
The PE wing of Subhash Chandra-owned Essel Group plans to launch a Rs.500 Cr fund. The group also has plans to raise another fund of the same amount. The fund will be raised from domestic investors.
Essel Financial Services CEO and MD of Amit Goenka said that developers raise huge demand for capital. He added that most of the projects are stuck, due to the lack of capital. He finds delay in approvals as another reason for the stuck projects. Continue reading
MCHI-CREDAI Property Expo receives good response.
MUMBAI: The first two days of MCHI-CREDAI Property Expo 2013 saw huge numbers of prospective buyers visiting the property show. It shows that the demand is not much affected by the sluggishness of the realty market.
Nearly 25,000 prospective buyers visited the property fair on Friday. This number of property buyers have really spirited the builders.
Over 15,000 residential properties across Mumbai Metropolitan Region (MMR) are showcased in the four day fair. The fair has properties located in Navi Mumbai, Pune and Thane.
The buyers showed keen interest in the properties located at Dombivli and Andheri too. Gundecha, Hubtown and Lodha developers have projects in these areas.
Those who were looking for investment options also visited the fair. Panvel and Thane remain the favorite spots for the investors.
Most of the properties showcased at MCHI-CREDAI Property Expo 2013 were offered with some discounts. Prices for some projects however remained the same. Continue reading
The IT projects in Bangalore more popular for PERE investors.
South and West remain favorites for private equity real estate investors. Majority of the Private Equity in Real Estate (PERE) investment is done in the south and west cities of India; especially in Bangalore and Mumbai.
Last year Bangalore, Chennai, Mumbai and Pune together received Rs.27,907 Cr of PERE investment. This amounts to 84% of the total investment.
The reports say that the Delhi-NCR received the third highest PERE Investment. But experts refute this by pointing out that though Jwala Real Estate and Indiabulls Infratech are Delhi registered companies, their projects are in Mumbai. It means that the investment in the National Capital Region remains only on the paper.
Blackstone is the largest PE investor in India. The US-based PE major alone has invested over $600 million in the Indian realty. However the group has so far invested only in the south and west India. Bangalore holds majority of their investments. The group has also invested in Pune and some southern and eastern cities. Continue reading
Oracle India will lease office space in BKC.
MUMBAI: Oracle has signed a lease agreement for its Indian arm Oracle India Pvt Ltd. The IT major has leased large sized office space in the Bandra Kurla Complex in Mumbai. The group will lease 50,000 sq. ft. of office space.
Oracle India will have to pay Rs.340 per sq. ft. for gaining office in the BKC which is one of the most costly office spaces across India and Asia Pacific Region. The lease agreement will be for a term of nine years.
One floor will be fully leased by Oracle India. The transaction worth Rs.183.6 Cr is the largest lease transaction in FIFC. First International Financial Centre (FIFC) is a Grade-A commercial development in BKC.
Hindustan Unilever plans to divest its realty assets.
MUMBAI: Hindustan Unilever Ltd is the largest consumer goods firm in India. It produces around three dozens of consumer goods like Bru coffee, Knorr soups, Lipton tea, Lux and many others.
Real estate has never been their core business. However it has fetched them nearly Rs.672 Cr of profit, a value which is higher than all their other profits. Interestingly it is more than the profit of DLF from their real estate business.
During the same period, DLF has earned Rs.596.35 Cr in the form of net profit. The figure shows the net profit of DLF while the consumer producer’s it is the amount which is collected through selling their realty assets.
Though these figures are incomparable, they are mentioned only to make a sense of amount the consumer producer has earned from selling its realty assets.
Hindustan Unilever Ltd is now looking to collect over Rs.300 Cr through divesting its realty properties. The Anglo-Dutch MNC will sell off 55 ultra-luxury apartments. Continue reading
Golf courses do have an impact on the property sale.
MUMBAI: In Mumbai and its neighborhood areas, golf courses are slowly becoming a necessary amenity. This is true especially for the top-end housing projects.
There is a higher demand for housing projects which have golf courses. Seeing this increased demand, the builders are also coming up with such projects. They use golf courses as a means to persuade the buyers to their projects now.
Though Golf courses are considered to be the sign and symbol of luxury now, there are only a few golf courses in Mumbai. Unlike Delhi-NCR, Bangalore or other top cities, the commercial capital lacks golf courses. Though main reason is land scarcity, excessive land price also matters.
Right now there are three 18-hole golf facilities in the city. Two of them are in South Mumbai, while one is at Chembur. Willington Sports Club and United Services Club are the two South Mumbai golf courses. Bombay Presidency Golf Course is located in Chembur. Continue reading
PERE investments have risen in Bangalore.
BANGALORE: According to the latest report by Cushman & Wakefield PERE investments have increased in Bangalore. Last year the city received Rs.32.3 billion in the form of private equity investments. The global property consultants reported that the amount is double the size than that of last year.
Most of the private equity investments were done in the commercial sector. The PE investors like Blackstone and others shifted their investment plans to the commercial sector.
While Rs.32.3 billion was invested in the commercial sector, only Rs.28.5 billion was invested in the residential sector. However the pre-launch residential properties witnessed highest number of PE deals. Though about 25 PE deals took place in the residential sector, the amount was comparatively far lower.
With Rs.13 billion of PE investments, Mumbai stood on the second spot. Delhi-NCR stood third with INR Rs.7 billion of investments. While Mumbai witnessed a minimal decline of 2%, NCR saw a sharp decline of 44%. Continue reading
Home sales pick up in NCR.
Tracking over 45,000 housing projects of 8200 builders, Property research firm PropEquity has reported that home sales in the National Capital Region (NCR) has picked up.
Now NCR sees a revival of home sales. In January, it added, nearly 9000 housing units were sold in the region.
As against the 6032 home sales in January 2012, 8,812 housing units were sold in January this year. With this improved home sales, NCR sees a revival in the region.
Housing demand picked up along with the clarity in land acquisition issues in Greater Noida. Home sales have picked up highly in Faridabad, Greater Noida and Noida Extension. Besides these areas Yamuna Expressway was another area which saw an increased demand for housing units. Continue reading
Trump plans to expand its presence in India.
Trump, the real estate major of USA, is set to enter India. Its India-representative revealed that the group is looking to expand to India now. The US based real estate developer has already entered into talks with some top developers of the country.
The group plans to develop projects in Mumbai and in NCR. Two Trump-branded housing projects will be developed in these areas, said the representative.
The group’s first project is being developed in Pune. Trunk is developing this ultra-luxury project in collaboration with Panchshil Realty. Their Pune project marked their entry into the Indian realty market. Now, they move ahead with the plan to expand their presence in India, especially to Mumbai and NCR.
Their first project ‘Trump Towers Pune’ was launched in 2012. The project is considered as a project which marked the new arrival of elegant luxury in to the subcontinent.
Mumbai-based Tribeca Developers is appointed as India-representative. The group will find out more projects which could be developed under their brand.
Trump to develop two more ultra-luxury housing projects in India.
They show keen interest on Indian realty market. It was the first of its kind tie-ups of Trump which plans to make India one of their top markets, outside North America.
Tribeca will help the American firm to find out suitable project sites. Besides, it will also help them find reputable developers of the area who can join with the American real estate major.
Trump’s development arena is not limited to ultra-luxury residential projects. Their development is extended to hotels, mixed-use projects and Golf Course projects. All these will be developed in India too or they plan to do so.
Kalpesh Mehta, Tribeca Developers Managing Partner, said that the group is in advanced talks with some domestic developers. He added that the firm hopes to develop two ultra-luxury projects in NCR and Mumbai within a period of six months to a year.
New property tax plan of BMC, received severe discontent.
BMC’s decision to compute property tax on the basis of capital value of the property raised the anger of the city residents. The residents of over 35,000 housing societies have already decided to protest against the new property tax policy of BMC.
Some citizens’ groups and 40 Non-Government organizations will support and take part in the protest. They have planned to conduct a one-day hunger strike at Azad Maidan. They plan to conduct the hunger strike before the current session of BMC ends next month.
NGOs like the Bombay Catholic Sabha, Federation of Housing Societies, SOUL and Watchdog Foundation will partake in the protest. While addressing the media, the representatives of these NGOs said that they want the authorities to do away with the new system.
They demanded the authorities to go back to the old system. They claimed that the new property tax system has really upset the people. Continue reading
Camron offers financial aid to India to complete the development of Mumbai-Bangalore corridor.
Mumbai to Bangalore corridor spreads across over 1000 km. Along this corridor nearly 9 districts and a good number of cities could be built. Around 2 to 3 million of population can settle in each city. Once the project is completed, Mumbai – Bangalore corridor would be offering millions of jobs. David Cameron, the British PM, has showed readiness to help India complete the project.
Speaking about the growth potential of the corridor, Cameron said that the physical infrastructure should be developed in the first phase.The development of social infrastructure must be followed, he added.
Offering their help to finance the project, Cameron said that their government is happy to see the development of Mumbai-Bangalore corridor. Besides financial assistance to the Indian government, Britain also has showed its readiness to cooperate with India in the project.
British prime minister’s office said that the British officials had been working on the 1000 km-long corridor from Mumbai to Bangalore. It added that they already have assessed and analyzed the project well. The development of the corridor: at an estimated cost of $25 billion, will link the commercial capital with the tech hub.
Mumbai-Bangalore corridor needs to be developed, says Cameron.
While addressing the business people and workers at Hindustan Unilever Limited, Cameron told that their country could find complete solution. He added that Britain has good architects, planners and finance experts who could offer better solution to the project.
The British PM predicted that this corridor would be holding 11.8% of total GDP of India by the year 2020. 5.8% of the total population also will be concentrating on this area.
The first phase development will include physical infrastructure, consisting power generation, telecommunication facilities and other transport networks. Once the physical infrastructure is completed, the social infrastructure including education and healthcare facilities should be developed.
Development of 24 industrial cities along the railway line that links New Delhi with Mumbai has also been planned. The project will be developed with the help of Japan. However the project is moving very slowly now and has not reached anywhere around completion.
The British government also has showed its readiness to fund the project. They will fund around $1.55 million or one million Pounds. The project, if completed, would generate over a half million jobs in the country. This will be besides the indirect jobs which the project will bring in. So the total number of jobs would be over two million or even more.
Godrej will develop a commercial project named Godrej BKC jointly with Jet Airways.
Real estate wing of Godrej Group, Godrej Properties Ltd. (GPL) will launch a commercial project, named Godrej BKC, in the Bandra Kurla Complex area. Jet Airways will partner with Godrej Properties for the development of this commercial project.
The construction has already been started and the project is expected to get over by 2015-end.
Pirojsha Godrej, the Managing Director and Chief Executive of GPL; while commenting on the project, said that the firm expects to create around Rs.3,500-4,000 Cr from the project. He added that the project will be completed within two to three years.
However, he kept his lips crossed when asked about the financial details of the project. So far no financial details are available.
The cost will be borne by both Jet Airways and Godrej Properties equally. They will have 50 – 50 share in the project named Godrej BKC. Jet Airways has already reserved 2.5 lakh sq. ft. of office space in the project. The total salable space in Godrej BKC is 1.3 million sq. ft. Continue reading
Connectivity holds the growth-key of Thane.
A few couple of years or decades back, Thane remained as an unpopular suburb in the Mumbai Metropolitan Region, right now this has become one of the most popular suburbs in the region.
Though the well planned development and schemes of the Authority plays a key role in the growth of Thane, the main role is played by the connectivity which has attracted more population to the city. Along with the infrastructure growth the connectivity of the area got developed.
The area is all set to be a fully–developed city in all spheres. With easier connectivity to Brahamand, Ghodbunder Road, Owala and Patlipada, the city becomes a hub for all the other areas of the city. Moreover there is a simultaneous and concurrent growth of commerce and infrastructure in the city. Continue reading
Corporates plan to shift their HQs to bigger offices as rentals slightly fall.
Due to the sluggish realty market the rentals have fallen in many of the cities like Bangalore and Mumbai. Seeing this fall of rentals as a good opportunity, many of the corporates are moving their headquarters to bigger offices.
Bigger offices with ample space are also noted for better amenities and facilities. The corporates are sure that they enjoy better amenities now at comparatively an equal amount or slightly higher amount they used to spend for a small office now.
The Corporates feel that the headquarters is the sign of their prestige and status. The fall of rentals in some of the top cities of India has prompted them to think in this way to move their HQs to bigger offices. Continue reading
GVK plans to monetize Mumbai airport land with the aim to modernize it.
GVK Power & Infrastructure Ltd owned Mumbai International Airport Ltd (MIAL); a firm which is developing the Mumbai international airport now plans to monetize the allowed real estate land for monetizing.
While commenting on the issue, Mr. Isaac George Director of GVK Power, told that the initially GVK will monetize about 2.9 million sq. ft. He added that the process will be initiated by the beginning of June this year. However, he did not reveal the details of the fund expected to be raised through monetization.
The monetization will be finalized only once it gets the approval of Maharashtra Chief Minister,who has already approved the plan as the chairman of Mumbai Metropolitan Regional Development Authority (MMRDA). Continue reading
BMC will increase water supply level giving relief to the residents of the city.
Builders in Mumbai finally had something to cheer and be joyous as they heard the news that the Brihanmumbai Municipal Corporation (BMC- also known as Municipal Corporation of Greater Mumbai) is increasing the amount of daily water supply.
BMC has announced an increase from 90 liters per head per day to 135 liters per head per day. The new level of water supply will be effective from October 1, announced BMC.
Up to last year, finding water for construction was the main concern for the builders. They really had to struggle to find sufficient water for housing constructions in the city. As the civic body increased the daily water supply, the builders will be able to find sufficient water for construction purposes.
In experts’ opinion the decision of BMC will be boosting housing industry to greater extents. However they are sure that the increase in daily water supply is not meant for the builders but for the residents.
BMC will make sure that all the leaking pipes in the city are either replaced or repaired.
For a long time, residents of the city had been suffering from acute shortage of water which is a basic necessity. Mr. Paras Gundecha, Maharashtra Chamber of Housing Industry (MCHI) Chief said that this news is a relief to the residents of the city who struggle with water-shortage.
Mr. Gundecha added that though the consumers are aware of the water shortage, they had no option but to complain about the shortage they faced as it is basic.
Last year, though BMC had promised to bring over 200 MLD of water supply to the city, it could not fulfill the promise due to inadequate rain which drained the water level of the Middle Vaitarna Dam.
A senior civic official from the water department revealed that this year adequate water will be collected and supplied in the city in abundance. The official added that BMC has considered changing old and corroded pipelines which cause the loss of lot of water while supplied.
Revenue of Bollywood movies is affected as number of multiplexes are lower.
Bollywood film industry is affected by the sluggish realty market which has halted many mall projects. It is estimated that around 150 multiplexes across the country has not been completed in time due to the slowdown in the realty market.
It is a bad news for any Bollywood fan to hear that real estate market has indirectly affected the Bollywood industry. If the developers are not developing multiplexes, where will the Bollywood movies be shown and the people will be able to watch them. So in short the slowdown in the real estate sector has affected Bollywood, though indirectly.
In India, majority of the multiplexes which contribute a major share of film’s total collection, are built in malls. Once the mall construction has been halted by the developers due to the existing slowdown, the film industry also is affected. According to experts, Bollywood industry might have lost over 150 multiplex screens which would have generated more income to the industry. Continue reading
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
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 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
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.
Mumbai real estate builders welcomed new industrial policy despite scam allegation.
The new industrial policy announced by the Maharashtra Industrial Development Corporation – MIDC gives new hope to the Mumbai Real estate developers. This new policy remains as a New Year jackpot for the Mumbai Real estate developers.
MIDC decided to free nearly 35,000 acres of land in the special economic zones (SEZ) for developing residential projects. As per the new policy, around 40% of the total available SEZ land can be used for residential developments. The remaining 60 % of the land will be used for commercial development. Continue reading