Tag Archives: Real Estate

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.

Realty Prices Peaking, Time to Sell Your House and a Correction in the Rancid

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As property prices exceeds the 2008 peak levels, realty experts believe that a correction is possible in the next couple of quarters, especially in cities like Delhi and Mumbai where prices have grown up fast. This offers an opportunity to real estate investors to gain profits.

A Navi Mumbai-based marketing executive, Parvinder Singh Sidhu, agrees. Five years ago, he had bought a second home of 750-sq-ft flat at Belapur in Navi Mumbai for about Inr13 lakh. At present, the price of the flat is Inr35-40 lakh. However, with the talk of correction in the Mumbai property market, Sidhu is planning to sell this house and earn profits now. “I have a house to stay, so I can think of selling this one. If property rates come down in the future, I could buy a similar property at a lower price,” he says.

Is it really a good time to cash in on your real estate investment? Yashwant Dalal , president of the (EAAI) Estate Agents Association of India, says that property prices in many markets have begun to show signs of correction. ” Where the rates have peaked, we expect the prices to go down by 25-40% in metro cities. If you had bought a house previously just as an investment, I would suggest that you sell as soon as you can and buy a similar property at cheaper price later,” says Dalal. According to him, property bought even 03 years ago may have appreciated nearly 100-150 percent in some areas, so it may be a good time to book profits.

JP Morgan has Capitalized into Parsvnath Developer’s Residential Project

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JP Morgan financed $30 million in Parsvnath Developer’s residential project La Tropicana launching in Civil Lines area of New Delhi. The deal contains of an additional funding for the real estate group through JP Morgan’s local NBFC in India. The part of the funds raised has been used by Parsvnath to provide an exit to Red Fort Capital, which had put in Rs 115 crore in the project in 2009. Red Fort has made a 30 percent return on its investment in the project. Ernst and JP Morgan did not comment on the deal.

Parsvnath sold 18 percent stake in its 16.8-acre high-end residential La Tropicana project to private equity firm Red Fort Capital for 90 crore in 2009 and later in the same year sold another 4percent to the fund for Rupees 25 crore. The 400 apartment project, which was launched in 2008, has been much delayed and is now estimated to be completed by 2013. The developer is still selling apartments in this project at 14,000 per sq ft. The project was launched at Rs 8,000 per sq ft. Last year, Parsvnath had sold 24.5% stake for 120 crore to Red Fort Capital in an office project that it is building on land it received from the Delhi Metro Rail Corporation. The project is being made on a build-operate-transfer basis. January this year, Sun-Apollo India Real Estate Fund invested Rs 100 crore for a 49.9 percent stake in a residential project, Parsvnath Exotica, in Ghaziabad near Delhi.

Decline in Office and Commercial Space Demand in Mumbai

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India’s business capital, Mumbai, is witnessing a decline in demand for office and commercial space with dealings down by more than half since last year. Classy office space in the center of Mumbai, but it looks there are few buyers. According to a report, need for commercial real estate is lingering. Dealings of 0.88 million square feet were recorded in the fourth quarter i.e. January to March of Fiscal 11, against the 2.81 million square feet transacted in quarter 4th of Fiscal 10, that’s a 68 percent decrease in demand.

Though sale connections showed marginal progress from 13 to 23, the number of properties leased dropped from 54 to just 28 at the same time. A Consulting agency Cushman and Wakefield points to the high level of vacancy rate of 20 percent. Usually it is the BFSI and the IT and ITeS sectors that habitually drive demand in the commercial real estate space. Also since starting of this year the market has been polluted by several scams and that has unfavorably obstructed plans of several corporates.

Still, industry experts says in 2011 demand for commercial real estate across the country is expected to be around 42 million square feet. So, 2011 will be a pretty interesting year in terms of demand. The challenge on pricing will continue to stay. As the demand & supply disparity continues, most developers have so far desisted from hikking rental values. But still, market sentiment continues to be gentle with players expecting large developers to minimise prices further.

DLF’s Net Profit Dropped by 4.8%

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India’s biggest real estate company, DLF Ltd, accounted a bordering drop of 4.8% in its net profit for the year ending 31 March 2011. Company’s combined net profit stood at Rupees1,640 crore in comparison to Rs1,720 crore in fiscal 2010. The earnings per share for the year stood at Rupees9.66 versus Rupees10.13 in fiscal 2010.

However, for the quarter ending 31 March, organisation’s net profit stood at Rupees 344.54 crore, a drop of 19% in comparison to Rupees 426.38 crore in the subsequent period in the previous financial year. It reported combined revenue of Rupees10,145 crore for the year ending 31 March 2011 and an increase of 29 per cent from Rupees7,851 crore in the subsequent period in the previous fiscal.

EBIDTA stood at Rupees 4,337 crore, after adjusting for a one-time cost reset due to input price high of Rupees 475 crore.

Why Real Estate Investments are Getting Riskier

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The first quarter of this fiscal would be a difficult one for the real estate sector. Many of the big players in metropolitan cities have had to borrow funds to pay their installments on loans due to banks by the end of March 2011. In smaller cities and towns, the situation is not any better. Realtors who had overerated actual end user demand for housing, and had received advances from pioneers and investors are coming under pressure to deliver promised projects to enable them to cash in on their investments.

Projects are not moving ahead because of lack of cash, and banks are not falling over themselves to lend money to the sector any longer – especially as the RBI has restricted such flows and had asked banks to be cautious of offering out too much money to real estate companies. What does all this mean and how are these indications going to affect the person who wants to invest in real estate? Firstly, potential investors should be very, very careful of where they invest in. In the absence of a real estate regulatory body in place the old statement of requirement , or buyers beware is more relevant today than ever before. Developers are facing a double setback this year.

Even if their projects come up, the support of foundations and substructures promised by government agencies such as power, water , sewage, and above all, road and transport connectivity – is just not happening on time, so projects may be finished, painted and polished, but may not be livable . The high cost of borrowing money is also hitting developers and with banks becoming cautious of extending credit to the sector, many developers are now looking towards private equity and similar sources of finance, many of which are much more expensive than bank funds. Apart from expenses, many financiers are also more wary about the money they lend.

FDI Inflow Drop by 11%

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Foreign direct investment in India refused for the third consecutive month in March, dropping by 11 per cent year-on-year to 1.07 billion Dollars in the backdrop of financial havoc in Europe. The country received 1.2 billion Dollars in FDI in the consistent period last year. During the financial year 2010—11, the inflows droped by 25 % to 19.43 billion Dollars, which makes it vital for the country to fine tune its policies to attract overseas investment, sources told.

The FDI during 2009—10 had totalled 25.83 billion Dollars during 2009—10, which, too, was lower than 27.33 billion Dollars invested in the previous financial year. “The numbers are not enough, the govt. has to take more steps,” sources said. The Department of Industrial Policy and Promotion, the nodal agency on FDI policies, has initiated steps, including merging of all related rules and regulations into a single document. In January and February FDI drowned by 48 per cent (1.2 billion Dollars) and 30 per cent (1.04 billion Dollars), respectively, over the same period previous year. The sectors that attracted FDI include services, telecommunications, housing and real estate, construction activities and power.

The major investors in India are US, UK, Singapore, Netherlands, Japan, Germany and UAE. Foreign institutional Investors have invested 3.6 billion Dollars since January 01 till May 5, 2011.

NRI TCG and US Based VRT Invests Rupees 270 crore in Mumbai, National Capital Region Residential Projects

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NRI investor Purnendu Chatterjee’s TCG Real Estate and US-based Vornado Realty Trust, is in the final stages of investing Rupees 270 crore in two residential developments in NCR and Mumbai. The fund will invest Rupees 150 crore and Rupees 120 crore in housing projects in Mumbai and Noida, respectively, and pick up 40-45 %  in each of the projects, said a person known with the fund’s plans.

“The 400 million  Dollars Fund works with land-owners, state governments and developers; particularly medium size developers who lack both money and management talent, to produce international quality real estates, which supply to the high demand sector of the industry. The Fund takes both controlling and minority positions. The Fund also looks at investing in related sectors such as construction, mortgage, lending and infrastructure. The Fund invests between  5 million Dollars to 50 million Dollars in each investment. TCG is the property development and investment arm of The Chatterjee Group.

 

City Realtors used Brokers to Grab Lands from Farmers

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AHMEDABAD: With each unaccounted income disclosures in the recent income-tax raids on four city-based groups, I-T detectives are disclosing newer shady froth of real estate business in the city. I-T officials have found that the raided real estate groups had given so much of freedom to brokers to grab lands from farmers. The property consultants would strike the deal with farmers, mainly to adjust the cash transaction, and realtor would appear only at the time of documentation.

Around 200 I-T detectives had on April 28 carried out a search and survey operation on 60 premises of four city-based groups, three of which are popular realtors, while the fourth group has one of city’s well-known jewelers as key promoter. The I-T officials searched many land brokers attached with the realtors and has got Rs 6 crore black money disclosure from one such broker from whom Rs 20 lakh cash was also captured. The total disclosures in the operation have already touched Rs 66 crore. Still more such disclosures are to come while premises of the fourth group are still sealed as the promoters are out on a trip to Singapore.

I-T officials have already struck gold in the first raid this financial year and have captured Rs 8.3 crore cash from realtors and property consultants. During the search at the jeweler’s premises, the officials found a difference of Rs 60 lakh in the stock officially declared and displayed at the shop. The department is now closing in on different ways evolved by realtors to avoid tax and ground black money. However, city realtors said that employing brokers while dealing with farmers is no new thing, but now these brokers are used to do foggy deals.

“A builder would book a land at the prevailing rate with token money given through brokers. The brokers would keep the farmers hanging and depending on the cash flow of the builder he would go ahead with the deal on his will,” the official said.

The department has earlier already found that the realtors searched used cheque transaction to record cash payments by the buyer against a property.

CREDAI to Handle Corruption in Real Estate Sector

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“The CREDAI today presented an action plan to union urban development minister Kamalnath at the two-day 11th National Conference (NATCON) of CREDAI in Singapore to handle corruption”. CREDAI National President Lalitkumar Jain said, the developer community is being marked as being pollute. He said the association would seek an appointment with the prime minister to discuss ways and means to check the cancer of corruption rather indulging in blame game.

“Our country is, sadly though, rated to be one of the most corrupt nations of the world. Any citizen of the country will feel hurt and disgraced. The real estate sector is rated to be the biggest contributor to this dishonor. Jain Said, “I and all my colleagues in real estate  feel seriously insulted.” He added that developers were sufferers of the system and not the beneficiaries. He also said the real estate sector was being named as the reproduction ground for black money and corruption. “It is the various government methods, procedures and delays in clearances that give birth to corruption. We curse every person who exploits us to give us a lawful permission which we deserve immediately and without any dishonest demand,” he said.

“After investing madly in land, even a day’s delay in approvals adds to the costs and in extreme anxiety and when speed becomes important, the concept of speed money crawls in,” he pointed out. Every developer has to get 40 certificates, No Objection Certificates and clearances. “The McKinney report to the Government of India as long ago as in 2001 said that land approval related obstacles are costing 40% higher to home cost,” he said. CREDAI presented two key documents to Kamalnath – an anthology of best practices by some state governments that can be followed by the rest of the country and a extensive checklist for approvals.

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.

BOP studios to be set up soon

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New projection screen
Photo by laRuthThere are 30 real estate boutiques lined up for establishment across various cities in India as per Better Option Propmart’s plan.

These boutiques will be titled as ‘BOP studio’ wherein consultants will sit and provide free guidance and counseling to every walk in customer. This studio will provide a proper look and feel of how a real estate boutique look like including the ambience of a high-end store, centrally air-conditioned and live presentations of various upcoming as well as existing projects will be illustrated by the trained professionals according to the need of the people.

There will be a customer friendly atmosphere where people can easily discuss all their questions with experts and that too while enjoying a cup of coffee, lounge space, and viewing the different projects on large screen projectors.

2/5 is Navin Fluorine International’s rating

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Navin Fluorine International has been awarded two stars out of five by CRISIL Equities, the Credit rating agency.
The rating implies that the company`s fundamentals are moderate relative to other listed equity securities in India.
This rating has been given to Navin due to its long-standing presence as one of the four main fluorine players in India. Our grade is moderated by the stagnation in Navin`s main lines of business refrigerants and bulk fluorides. The production of Navin`s flagship refrigerant HCFC 22 is being phased out under the Montreal Protocol due to its ozone-depleting nature. Also, at the same point of time, sales of low-margin products, i.e. bulk fluorides, are facing tough competition from China.
 CRISIL’s criteria for rating Navin 2/5 are the following:
1. Significant non-operating assets in the form of cash.

2. Balances with group companies.

3. Real estate
 4. Investments in group companies through equity, and preference shares.

Rent-generating assets are a good investment option

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In present scenario, scope of small real estate investors in India is low as compared to the institutional investors. Although they can own many property, but bank would not fund more than two loans.
However, this restriction doesn’t imply that they cannot invest beyond that from their personal accruements. They always have the option to go for investing in rent-generating assets, which can bring decent returns, if not good, if they have been bought wisely.
Even after all these limitations for small investors, property investment is an all time investment since it belongs to some of the belongings which always tend to retain their intrinsic value.

Gurgaon; the most developing location of NCR

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A high-end flat was leased for a rental value of Rs 1.2 lakh per month. This apartment is built in the peripheral location of Gurgaon on an area of 4,200 sq ft.  The apartment has been taken on lease by a big corporate for their senior executive.  The average rental value for these flats has been consistent throughout the last quarter and falls in the range of Rs 1 to 1.75 lakh.

Since Gurgaon has now become one of the key commercial office hubs in the NCR, it has acquired a remarkable demand for rental residences. With the growth of Gurgaon, metro connectivity which is soon going to hit Gurgaon seems like cherry on the cake. This is likely the reason behind people getting attracted from other areas of NCR to own their homes in Gurgaon.

3% rise in Indiabulls Real Estate shares

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me, chairman of Bombay Stock Exchange
After winning the bid of NTC’s defunct Bharat Textile Mills in Worli, Mumbai, for Rs. 1505 cr, Indiabulls Real Estate shares have raised by over 3 %. Last Friday, the bid for Bharat Textile Mills closed and the winner was Indiabulls Infraestate which won by just Rs. 2 cr.  

On the Bombay Stock Exchange, the shares settle at Rs 175.70 which is 3.51 % higher than the share price before this bid. Also, on the National Stock Exchange, the share price closed at Rs. 176.45; 4% higher.

Sensex, the broader market also closed higher by 143.51 points at 18,287.50.  

Indiabulls had also one the auction before this one which was for NTC’s 2.3-acre Poddar Mill held last week. Indiabulls paid almost double the reserve price for the mill, i.e. it paid Rs.474 cr for the mill where the bid started from Rs.250 cr.

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.

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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LAA cover
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.

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.”

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.

Real Estate Exhibition organized by TOI

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Messe Turm
A real estate exhibition has been organized in India which starts from tomorrow in Doha and is a two day showcase. This exhibition is organized by the Times of India newspaper. The venue of the exhibition is Regency Halls near Mall Roundabout.

The exhibition guarantees showcase of the best real estate options available across India which thus assures the visitors with the exhibition worth a watch.

According to a study carried out by PricewaterCoopers and Urban Land Institute, Mumbai stands at second and New Delhi at the fourth position.

The release also added that the key advantages of Mumbai are its lack of dependence on foreign demand and strong fundamentals. The exhibition would be an ultimate opportunity for potential homeowners to choose from among the best available in India.

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.