Tag Archives: real estate projects

New residential projects in North Bangalore

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With the high increase in commercial activity in North Banglore region, the demand for residential sector also gets affected. New residential projects are being launched in this area which comprises of both apartments and Luxuroy homes (villas).

Bengaluru provides flats for sale in affordabe prices. The development in this area offers residential spaces for all three budgets; premium, mid range and luxury. Areas like Thanisandra, Yelahanka Doddaballapur, location near airport offers mig segment housing to its buyrers whereas, for luxury living one has to look for available in and arond Hennur Road, Kogilu, and some parts of Thanisandra.
New flats for sale in Hebbal-Yelahanka stretch of Bellary Road, which includes Hebbal and RMV II Stage has luxury apartments in the price range of Rs 8,000-12,000 per sqft. The areas situated beyond Devanahalli till Doddaballapur is very popular as it comprises of a large variety of high-end villa projects and also, plot development projects. The price here ranges between Rs 6,800-12,000 per sqft accumuating an area range of 2,500-7000sqft.
Meanwhile, the plot development projects in this area ranges from Rs 2,150 to 4,000 per sqft. Plots as well as luxury flats in this region are mostly preffered by high net worth individuals and investors due to their ability to serve as good holiday or retirement second home options. Apartments towards Nandi Hills Road are looked at with a keen eye as they range between Rs 7,300-10,00 per sqft. Vijayoura has new flats for sale ranging between 4,500-5,050.

Where to buy your house in Bangalore?

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Like every other place, Bangalore also hit itself hard with demonetisation. This deeply effected the realty sector which consequenced in the announcements on Akrama Sakrama Scheme, National Green Tribunal’s drive to reduce the lake beds in the city. However, this is now beginning to change with the initial dust of demonetisation finally settling down. With the Union Budget Announcement, which extended a big hand to support the affordable housing, the demands have increased yet again.

Bangalore is reported as the third largest hub for High Net Worth Individuals which increases the demands for luxury housing in the form of apartments or plots in Bangalore. As the southern and eastern zones of Bangalore are popular for their commercial complexes and workplaces, major residential demands are fed by these areas.

With a 4% increase of ready to move in demands, a data was collected about where should buy their properties according to the budget.

For those who wish to manage a housing within 40lakhs have a number of options to choose from sppecially in the IT hubs such as electronic city. 1bhk Flats falls the most popular under this category. Amonsgt married couples who choose to live in the city regarding work, opt for a 2bhk house in Electronic City, Whitefield or Bannerghatta Road.

The residential demand in these areas are the highest and always dominate the popularity charts with a perfect capture of 40% of the total demands.

Apart from this, the Bangalore real estate is not keeping the 3BHK Flats and private villas aside and are launching new apartments under the category of 60lakh to 1 crore in areas like Hennur which have large scale infrastructure, easy connect with outer ring road and the international airport. Apart from Hennur, Kanakpura Road and Hebbal are also set with their ready to move in flats to meet the expectations of investors who desire luxury laced with tranquility.

Now for those entrepreneurs who does not wish to compromise on their lavish living and royalty, Bangalore is providing them plots and private villas in the range of Rs 1 Crore- 2 crore in areas such as Sarjarpur Road and Arekere. These have recently turned out to be a royal investing for the rich entrepreneurs which are mostly HNIs.

Power Shortage, Water Scarcity Hit Gurgaon

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Gurgaon, one of the most prominent cities in the NCR, is now facing acute power shortage. Scarcity of water adds multiplies the troubles of the city-residents.

Gurgaon was once considered as one of the most suitable locations in the NCR to live on. Now the recent reports show that the city is affected by various issues like power shortage, water scarcity and other sanitation troubles. Continue reading →

MCHI Demands Expert Panels To Clear Projects

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The Maharashtra Chamber of Housing Industry (MCHI) requested the state CM Prithviraj Chavan to form two expert panels for the clearance of projects.

MUMBAI: The Maharashtra Chamber of Housing Industry (MCHI) has requested Prithviraj Chavan, the State CM, to appoint two expert panels for clearing the real estate projects.

MCHI asked for two panels which will be formed of five experts and structural engineers. MCHI has also asked the state CM to disperse the high-rise committee. Continue reading →

House of Patels’ Indian Project, Ritz Carlton Likely to Manage

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House of Patels Group chairman has told that he has plans to develop luxury project in India. The group plans to develop a residential or hotel project in collaboration with Ritz Carlton.

House of Patels Group, Dubai based real estate group, plans to develop a luxury residential or hotel project in India. Commenting on the plan, the group chairman Asgar Patel said that he plans to develop the project in the land which he owns in India. Continue reading →

Housing Ministry Recommends Single Window Clearance

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In view of bringing the property prices down, housing ministry has recommended single window clearance. The housing ministry hopes to lower the sky reaching property prices.
Housing ministry recommends single window clearance to speed up clearance.

Housing ministry recommends single window clearance to speed up clearance.

New Delhi: As per Economic Survey 2013, delay in project-clearances is one of the main reasons which cause the hike of property prices. The survey had suggested the government to look into the matter and take out suitable steps. This might have prompted housing ministry to move in that way.

If single window clearance system is introduced, the builders will be able to launch their projects soon. Moreover they will be able to provide homes at lower prices as they need not spend lot of money as ‘preservation charges.’

The builders had claimed that they had to spend a lot of money for preserving their land and properties during the period taken for approval.

To consider the issue a committee was formed under Dhanendra Kumar, former chairman of Competition Commission of India. The committee has recommended single window clearance for the real estate projects. Continue reading →

Land Acquisition Bill May Boost Property Prices

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Land acquisition bill may boost the property prices in the urban cities. Investors expect land acquisition bill to provide more clarity to the land acquisition process.
Property prices may go up with land acquisition bill

Property prices may go up with land acquisition bill.

The farmers may be happy to see the parliament passing land acquisition bill. Once the bill gets through the parliament the farmers will be sure of gaining more rights on their land parcels.

Though the bill will bring clarity to the land acquisition; the bill will affect the property prices severely. The prices will shoot up as the bill stands for the consent of the land owners, at least four- fifth of the entire land holders.

Industries also fear that the cost of the projects will be costlier. The land acquisition bill forces them to pay an amount, four times higher than the market price, in the rural areas.

The bill also asks them to pay a double the market price for the land in the urban areas. Project development will not be as easier as the builders have to get the permission of the land owners. Continue reading →

Construction Halted in Noida, After NGT Bans Groundwater- Use

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National Green Tribunal recently prohibited the use of groundwater for construction- purpose. After the order the builders of Noida and Greater Noida have halted their projects.
No more groundwater for construction- NGT Order passed in Noida.

No more groundwater for construction- National Green Tribunal’s Order prohibits the Noida builders to use groundwater for construction.

National Green Tribunal (NGT) recently  prohibited the builders from drawing groundwater for construction purposes. After the order the builders of Noida and Greater Noida have decided to halt their construction works.

The NGT Order was released on last Friday. The builders said that they will have talks with the Noida Authority soon to clear out the authenticity of the order. Continue reading →

Real Estate Booms around Schools of Reputation

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The value appreciation of real estate properties goes ups and downs along with the presence of any reputed schools in the area. The higher reputation the school has the higher value real estate property gets.

High reputed schools normally admit children into kindergarten on the basis of local address. As a rule such schools accept the children within a distance of three to five kilometers away from the school. So the people opt for homes which are close to such schools of reputation. Real estate builders realize the importance and act accordingly. Continue reading →

Real Estate Township Projects Sees Light Again in W.B.

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townships see light again

townships see light again after 6 months in W.B.

West Bengal government plans to allow the real estate builders to resume their construction works which have been barred for last six months. Earlier the West Bengal government had prevented West Bengal real estate builders from building townships in West Bengal. Continue reading →

Jan-March Net Profit Of Unitech Plunges 98% On Weak Property Demand

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Unitech Ltd. (507878.BY), one of India’s top realty companies by sales, Wednesday posted a 98% drop in consolidated net profit for the January-March quarter as expensive loans and property prices crimped demand for apartments and shopping malls. Profit in the fiscal fourth quarter plunged to INR22.6 million from INR1.03 billion a year earlier. The figure lagged the INR790 million averages of estimates in a Dow Jones Newswires poll of five analysts. Sales declined 32% to INR7.16 billion from INR10.54 billion.

Unitech and other realty companies in India have been hit by weak demand in a slowing economy. The central bank raised interest rates 13 times between March 2010 and October 2011, before finally easing rates this April. Also, rising living costs and reluctance of most realty companies to make major cuts in prices have made potential buyers put off purchases.  Unitech’s net profit for the financial year ended March 31 fell 56% to INR2.48 billion. Sales declined 23% to INR24.46 billion.

“Financial year 2011-12 was a very challenging year, particularly in terms of availability as well as cost of funding for real estate projects,” said Ajay Chandra, Unitech’s managing director. “This has resulted not only in an increase in financing costs for the company, but also adversely affected construction activity.” Chandra said, however, that he expects the current financial year to be “significantly better” as there has been a gradual improvement in availability of funding in recent months. Also, interest rates are expected to come down.

He said Unitech plans to deliver nearly nine million square feet of space in this financial year which began on April 1, up from last year’s 3.4 million square feet. The guidance will be helped by Unitech receiving bookings for 7.19 million square feet in the past financial year — including 6.34 million square feet of residential bookings — totalling INR38.08 billion. The company launched projects of 7.81 million square feet last year.

Assotech and Sunapollo to Build Rs 500cr Housing Project in Gurgaon

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Real estate Company Assotech and private equity firm Sun-Apollo Friday announced the development of a housing project in Gurgaon at an investment of about Rs 500 crore over the next three years.

Sun-Apollo Real Estate Advisors has invested Rs 75 crore to pick up nearly 50 percent stake in Assotech’s subsidiary firm which would develop this project. Assotech has infused Rs 76 crore for nearly 51 percent stake in the subsidiary. “We are entering into the Gurgaon market by launching a 12-acre housing project in partnership with Sun-Apollo. This is our first project to receive private equity investment,” Assotech Managing Director Sanjeev Srivastava told reporters.

The project, which is located on Dwarka Expressway, has been launched at a price of about Rs 5,000 per square feet. He said the company has bought the licensed land where it would develop about 580 apartments, 23 villas and 102 flats for economically weaker section. “The total investment in this project ‘Assotech Blith’ would be about Rs 500 crore including the land cost over a period of the next three years,” Srivastava said.

The investment would be met through equity contributions from both the partners, bank loans and advances from customers against sales, he added. Sun-Apollo Principal Alok Aggarwal said: “The two partners are committed to invest more if required for construction activities”. The private equity firm has also invested in real estate projects of Parsvnath Developers and Godrej Properties in north India. “We will do more projects with Assotech in future if there is good opportunity,” Aggarwal said.

Assotech is currently developing many housing and hotel projects in the National Capital Region (NCR), Uttar Pradesh, Odisha, Uttarakhand, Madhya Pradesh and Bihar.

Unitech comes up with Gardens Galleria in Noida.

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Unitech, one of the India’s leading integrated developers of large-scale real estate projects, has launched Gardens Galleria in Noida. It is part of Unitech’s existing 147 acres entertainment-cum-retail destination in Noida.
Gardens Galleria, designed by US-based firm Callihon, is spread over 8.36 acres, is strategically positioned adjacent to sector -18, Noida and Film City. It is minutes away from ITO, East Delhi, South Delhi, and Noida Expressway. The project is in the midst of established residential areas, offices, colleges and other commercial towers.

The destination already comprises of an international standard themed amusement park Worlds of Wonder and The Great India Place, a shopping mall. The mall, a combination of entertainment, retail and hospitality, in Noida will comprise of hyper market, departmental stores, international shops, spa, gymnasium, banks, ATMs, food and fun joints. The project comprises 230 retail outlets and there is also parking facility for 8,500 cars. Unitech has already got over 10 lakh patrons a month in its three operational malls the Metro Walk in New Delhi, Great India Place in Noida and Gurgaon Central.

Commenting on the launch, Munish Baldev, head-retail of Unitech said, “We are happy to launch Gardens Galleria in Noida. Unitech has already developed 1.3 million sq ft of mall area in New Delhi, Noida and Gurgaon since 2006, and is developing another 4 million sq ft of retail space in cities such as Kochi, Gurgaon, Bangalore, Lucknow, Mohali, Bhopal, Bhub­aneswar, and Dehradun. We have always been bullish about the retail development space and have been developing the shopping malls as per our business plan. We have been getting strong traction from retailers for leasing of the mall-space under development.”

Genesis Luxury, Genesis Lifest­yle, French Connection, Nautica, Louis Philippe, Van Heusen, Calvin Klein are among some of the major brands who have their stores in Galleria. The company is also developing another 4 million sq ft of retail space in cities such as Kochi, Bhopal, Bhubaneswar, Bangalore, Dehradun, Mohali, Lucknow, and Gurgaon in the next 4-5 years.

Mirah to Grow Realty Business, Double Presence in Food and Beverages

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Mirah Group, a diversified business group with interests in food and beverage (F&B), hospitality, travel and international trading, is scaling up its real estate business and consolidating it under a single entity, said a top executive. The group, which runs popular restaurant chains and food stores including Rajdhani, Mad over Donuts and Manchester United Cafe and Bar, has completed around 10 real estate projects in the past decade. But it is only now that the group is organizing and branding the business under a new entity, Edifice Properties.

“We are looking to develop large mixed-development townships in Mumbai and Pune,” said Gaurav Goenka, managing director, Mirah Group. The first project is a 300-acre township in Nagpur, which has received funding in the form of foreign direct investment from a subsidiary of Bank of Scotland. The second will be a township in Pune, and the third, of 200-300 acres in Thane, is in the land acquisition stage.

In the F&B space, Mirah Group, known for expanding through acquisitions, is in talks to buy stakes in both domestic and international brands. “International brands are coming in by the dozen and we will look at picking up stakes in brands that are scalable and have a USP (unique selling proposition),” said Goenka.

The firm intends to invest around Rs.200 crore in this space in two-three years. It will expand Rajdhani, its flagship brand, from 35 outlets to 50 in a year and Mad Over Donuts to 100 from the current 35. Cafe Mangii, which is present only in Mumbai, will travel to Bangalore and Delhi and expand from five to 15 restaurants.

Mirah also runs a chain of hotels under the brand name, Citrus. From the current lot of seven hotels, it plans to open another seven that it will itself build, own and operate. Besides running its own F&B outlets, last year, Mirah Hospitality, a part of Mirah Group, invested Rs.40 crore and acquired a 26% stake in Impresario Entertainment and Hospitality Pvt. Ltd, which runs cafes and fine dining restaurants such as Mocha and Smoke House Deli.

Saloni Nangia, senior vice-president at retail consultancy Technopak Advisors Pvt. Ltd, said that with the fast pace of growth in the number of people across socio-economic strata eating out and ordering in, the F&B space in India will only grow from where it is today. “While a lot of modern retail will move online, F&B, still being an experience-related business, will continue to grow,” she said.

Retail consultants said the F&B sector will continue to draw the attention of investors such as private equity and venture capital funds. Jacob Kurian, a partner at Asia-focused private equity fund New Silk Route, said the fund is exploring opportunities in the sector. New Silk Route is in talks to buy a stake in Adiga’s, a south Indian restaurant chain.

 

Real Estate Sector Brokers bail out Developers with Buyback Deals.

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The prices are not moving up in metros for more than a year now and the buyers including investors are staying away from making a purchase decision, so brokers are in a fix currently.

An Industry watcher said that the Real Estate Developers are facing a cash crunch in the NCR and Mumbai Metropolitan Region and are approaching brokers to underwrite their properties to save the day and maintain prices of properties in a bid.

“So as the new real estate projects that are launched, brokers underwrite a bulk of apartments and the developer can show it as sales,” said Sachin Sandhir, managing director, Royal Institutions of Chartered Surveyors.

Kaustuv Roy, executive director, Cushman & Wakefield, said “For the whole system to work two things are very important, first there should be buyers in the market and second the prices should continue to increase at a faster rate.”

 

Gurgaon is safe as an investment bet.

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Capital values rose by more than 30-35% in Gurgaon’s residential sector over the last one year. Developers are now going slow on execution of real estate projects, resulting in a drop in supply of residential apartments in most prime markets. Emerging residential areas are still not able to meet the huge housing demand.

Due to rampant construction delays, the expected supply of residential properties announced in early 2009 has not been able to reach the market. Around 500,000 units that were scheduled for possession in key markets by end of 2011 are delayed by another year.

There has been an increase in lateral hiring by corporates. With job scenario improving all over the country, people have more to spend. This has resulted in good investment opportunities, and investor sentiments in the affordable and mid-income segment of Gurgaon’s residential market have improved.

Gurgaon remains promising for office space, and there are good prospects for more major global players setting up operations here in near future. On the whole, this augurs well for the residential property market, more or less assuring relatively healthy absorption of residential space in the times to come. The new infrastructure initiatives being undertaken by the government will also play a crucial role for Gurgaon’s residential and commercial property sectors.

Hopes Revive for Housing , Infra Projects in Patwari

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With the Supreme Court on Wednesday dismissing as withdrawn a special leave petition (SLP) filed by a group of Patwari farmers ,who challenged the Government ‘s move to work out an out of court settlement with farmers , The greater noida industrial development authority (GNIDA) is confident that the crises in Patwari will be resolved soon. There’s relief for 20,000 homebuyers who have booked flats in projects coming up in Noida Extention’s paywari village.

The Dismissal of the SLP and the indications that the Allahabad high court will begin hearing the Noida and Greater Noida land acquisition cases only after two weeks have allowed the government more time to make more and more Patwari farmers fall in line.
Not only homebuyers but projects like Metro line which is proposed from Noida to Greater Noida road (140 Metre wide, 28 Kms long) , a Greater Noida – Ghaziabad road (60 Metre wide , 22 Kms Long) will also get a new lease if life.
The authority had allotted 3,000 residential plots to people , plus there are number of corporate offices , besides schools and other institutions in that area. A section of farmers in Patwari , where the state government on August 6 struck a higher compensation deal to revive real estate projects , had moved the Supreme Court against the arrangement. Greater Noida chief executive officer Rama Raman termed the SC order “a positive sign”.
A two judge bench of the same court on July 19 quashed forcible acquition of 589 hectares of land in Patwari. But another two judge bench of the same court , while hearing some remaining petitions from Patwari on July 26 , referred the matter to the higher bench for hearing. The court also allowed the contesting parties time till August 12 for the settlement.
Farmer Layer Mr Parminder Bhati said “our contentions was when the HC had quashed acquition in Patwari village , the remaining petitions should have got the same relief. In the name of out of court settlements , government, officials and its heavy weight politicians have been putting pressure on farmers”
Farmers also claimed the court’s stand on Wednesday as victory for them. Ranveer Pradhan a farmer said “we thought we might not get back our land.but the court has approved of the july 19 verdict of the high court”.”The court has said the July 19 verdict was in favour of farmers and assured if the high court’s higher bench ruled against the interest of farmers they can move the Supreme Court.” Said Bhati.

Tata Housing in talks for fund

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Tata Housing is in initial talks with 2 PE funds, Sequoia Capital and Atlanta Equity, to raise funds for its multiple affordable housing projects, signaling that the PE players were willing to return to the real estate projects that offer good customer demand and less risk.

Sequoia and Atlanta have begun talks with the Mumbai-based realty firm to pick up minority stakes into its existing low-priced housing project in Boisar near Mumbai and three other affordable housing projects expected to be launched.

The two PE players want to pick up stake in Tata’s projects because they are low-risk projects with decent returns, the person close to the development said, adding that PE players could expect a return of 20-30% in these projects.

Sequoia Capital had marked around $1.8 billion out of its total ten billion dollars to India. If a deal with Tata Housing goes through, it could perhaps be its first in the real estate. Ditto for Atlanta Equity, an Atlanta-based $109-million fund founded in 2007.