Monthly Archives: July 2010

Impact of Website on Realty Business

July 30, 2010 – 6:34 pm

Aerith Waypoint Editor

Now days, internet is so much in trend that even for realty business, website seems to be must. According to a survey, every two out of three buyers surf the web to search their dream home. Therefore, if a firm wants to be recognized in the realty world, being online is the best lifeline.

The best way to launch oneself on the web is to hire a professional real estate website designer. While hiring one, you must keep in mind to check the previous records of the designer. This is an important aspect since experience matters more than anything else.

Some factors that make a real estate website cheap and best are:

Interactive flash maps which display the currently selling properties across your operational area. Interactive maps can be developed for different locations as per your need.

After the looks comes the user interface of the website. The site must have an interactive interface with an ease for the buyer to send his query.

Next, the site content must have good content. There must be exact information displayed on the site without any redundancy.

Finally, the site must have the capability to catch leads and track backs.

With all these points, one major issue that must be dealt by the site is the Search Engine Optimization (SEO) integrated within the site.

A good website serves you as a 24*7 sales person with very little investment.

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Developers now focusing on Luxurious housing projects

July 28, 2010 – 8:18 am

Luxurious house in Port Douglas
After the success of ‘Affordable homes’, realtors are now moving towards the launch of luxurious housing. The demand for luxurious houses indicates that there is big scope for realtors there.

With this increase in demand, many developers including Ansal API, Unitech, DLF, Emaar MGF etc are jumping into this business and plan to launch huge number of housing projects within next six months, where the cost of each single unit will be over Rs. 2 cr.

According to the executive vice-chairman and managing director at Emaar MGF, Shravan Gupta, since the recession period is over and job market is looking up, there are chances of realty boom too.

Within six months, cities like Punjab, Gurgaon, Bangalore, Hyderabad and Kerala will be overloaded with such projects.

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Deal between DLF and Limitless Group

July 27, 2010 – 9:14 am

DLF
The stake owned by Limitless Group, part of Dubai World, in Bidadi Knowledge City in southern Karnataka state will be bought by a unit of DLF.

Currently, a restructuring worth 23.5 billion dollar is going on in the Dubai World.

In April 2009, Limitless said that since authorities there have not bought the required land, so it was looking a 12 billion dollar project; both residential and commercial in India.

In October 2007, India’s DLF and Limitless first time went into the construction of Bidadi city on the outskirts of Bangalore.

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Realty Market is not the same throughout India

July 26, 2010 – 9:22 am

Since long time, we have been hearing from different sources that realty is back with a bang, realty is blooming, etc. Although it is true that there has been noticed a difference in the realty state during recession and after it, but this change is evident only in Tier 1 cities and not in others.

In other words, it can be said that the realty market is not the same throughout India, rather it is pretty good in Tier i cities, while just the same in Tier ii and Tier iii cities.

As far as the Tier II and Tier III cities are concerned, the property level is exactly similar to the level it was two years ago, i.e. before the recession period. Even after so many corrections in the property prices, the realty is in the same position.

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A word to Small Investors

July 24, 2010 – 11:48 pm


Wise Investments Holiday Card

When the right time to enter into realty is is a kind of intuitive decision and can’t actually be described in words- it is more or less based on judgment considering the past facts. As per the present scenario, it would be good for the small investors to wait for around 8 to 1o months if they plan to invest in certain areas within larger cities like Mumbai since a correction is expected there in the midterm.

However, if planning to invest in other cities, the right time would probably be now. Since this view is always subjective, one must study the local market and inquire into the expected dynamics and prevalent there.

A proper measure is affordability. Since realty is not a one day investment, one should plan well his wealth and then invest into the market. Also, taking a back seat and using the policy of ‘wait and watch’ should be a game of experts, who on one hand hope for the profit, do have the bravery to bear loss, if any.

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Brigade Enterprises; touching sky

July 24, 2010 – 9:09 am

Tressled
Brigade Enterprises, a Bangalore-based real estate company is planning to raise an additional fund of Rs. 750 cr. Foreign currency convertible bonds (FCCBs)American depository receipts (ADRs), global depository receipts (GDRs) or placement with qualified institutional investors will be the key instruments for raising the fund.

After the meeting yesterday, the company said to the shareholders that the funds will be used for acquisition of land, infrastructure cost of current and upcoming projects, clearance of debts, investment opportunities, augmentation of working capital and other general purposes.

Brigade originally focuses on developing residential units in South India, however, is now seeking shareholder approval to list its stock on Luxembourg, London, New York and Singapore Stock Exchanges.

On Thursday, the shares of Brigade closed at 1.07% higher to Rs. 137.35.

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Seven Hotels lined up in Mumbai

July 23, 2010 – 8:18 am

Taj Mahal Hotel
Last Wednesday one of the leading hotel operators, Accor and InterGlobe, a travel corporation announced that they are establishing an investment fund for a chain of hotel assets.

In the fund, both InterGlobe and Accor would hold 32% equity share.

Also, according to a press statement, an affiliate of Pacifica Partners (Pacifica) will have 36% equity share.

Currently, InterGlobe and Accord own seven hotels in India which would contain 1,750 rooms in all. An approximate amount of 325 million dollars is expected to be the cost of these hotels infrastructure.
It is expected that between 2011 and 2013, all the seven hotels would start operating.

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Increased Taxes urged Traders to hit the road

July 22, 2010 – 8:39 am

Traders of Ghaziabad city came together and presented a protest march for opposition of the proposed increase in house tax. Mahanagar Udyog Vyapar Mandal was the organizer of this march. The participants gave a huge dharna in front of the gate of municipal office.

Dr HS Saharia was given a written memorandum by these traders. According to this memorandum, the taxation policies should fall into one of the two categories only; either in the residential or in commercial one. However, if the government wants to impose higher taxes, then they should do so in a proper order. It must remain in limits.

The president of the district Vyapar Mandal, Gopi Chand said that government should realize that traders are already going through tough phase of inflation. Higher taxation would make their survival tougher.

The main participants of this rally were Ram Kishor Aggarwal, Sunil Goel, Rajiv Aggarwal, Dhanesh Singhal, Shiv Shankar Rathi, Rajdev Tyagi, Shanti Swarup Sharma, Pawan Sharma and Ashok Chawla.

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Report on Godrej Properties

July 20, 2010 – 10:28 pm

Still growing up
Last Monday, Adi Godrej, Group Chairman of the realty developer Godrej Properties admitted that on June 30, their net debt was reduced to Rs. 4 billion. He added that the balance sheet is really comfortable with the debt equity ratio of 0.5: 1.

As per the data revealed by Managing Director of Godrej Properties, Milind Korde, there was a net debt of Rs 4.50 billion on the company in the end of the financial year 2009.

In December, Godrej Properties which is a unit of Godrej Industries was able to raise around 100 million dollar through its Initial Public Offering (IPO).The share of firm closed at Rs 690.40 per share which is a decline of 1.69%.

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Realty Firms filed Prospectus last Monday

July 20, 2010 – 3:11 pm

The world-famous InterContinental Hotel on Park Lane in London, England, United Kingdom! Grand hospitality! Enjoy the magic!:)
Last Monday, prospectus was filed according to which the Embassy Property Developers, an Indian real estate firm is planning to raise an amount of 513 million dollars through an IPO (Initial Public Offering) of shares.

As per the prospectus, a pre-IPO placement of around 57.5 million shares for up to 11.75 billion rupees is being considered by Embassy Property. However, it is expected that they will provide a discount of 5% to the retail investors.

The IPO time line is not yet set.

According to the data collected by Thomson Reuters, in 2009, there was a raise of $16 billion from 87 offerings, while in mid June of this year; a total raise of about $11 billion from 56 issues took place.

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Affordable Housing helped Realty Market in overcoming Recession

July 18, 2010 – 12:08 am


Too Much Credit
Affordable housing is an unquestionable concept. The buyers and their service providers learnt a lot from the sudden growth of Indian economy and the recession which followed it.

It was a miserable condition for buyers when the annual GDP growth rate hit double digits. Be it be a vehicle or a house, an essential or a non essential product, everything was quoted at a big price. But, thanks to the banks which offered every kind of loans to the investors and brought them out of their miseries. However, the recession is over now.

After this recession, the affordable housing emerged as a new as well as interesting concept which became the ray of hope for all. Due to these affordable houses only, the realty market could recover so early. Thus, it would be nowhere wrong to call ‘Affordable Housing’ a pillar of residential realty market in this scenario.

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Home Prices Rising Again

July 16, 2010 – 9:17 am

Home Loans
HDFC, one of the leading home-loans lenders has observed that the prices of residential realty which were hitting the peak levels are now undergoing pre-slowdown.

Deepak Parekh, the Chairman of HDFC said that there is an improvement in the economic condition and therefore, developers have started charging premiums. Due to the land prices touching sky, the realty prices also shot up.

As per the report, there was a downfall of 25% in residential real estate prices in October 2009, but now it’s steeping upwards again.

Parekh observe this change in the most active markets of India, for instance, suburbs of Mumbai, NOIDA in the NCR, a Bangalore suburb etc which all are experiencing price hike.

Also, he plans for having a real estate regulator in place.

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The Rise of Affordable Homes

July 14, 2010 – 1:04 pm

More affordable homes
The concept of affordable homes came into existence after the recession that hit real estate industry in 2008. From the beginning of 2000, a house meant stretching resources to the maximum due to the IT driven property boom. Since many people could not afford the sky-rocketing prices, they were left out of league.

Although property prices were comparatively lower at the outskirts but buying there was not considered wise since the connectivity was inadequate.

After some years came the 2008 recession. The lapse of the IT sector which resulted in job uncertainty all around hit the realty sector, in the very similar manner as it did to many others.

Then the realty market which was much affected by the IT sector went under a price correction. With this correction came the new concept of Affordable Homes.

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Western themes for Townships are in trend

July 11, 2010 – 10:50 pm

Nile river boat - AL SARAYA -
Western themes for Townships are in trend these days. For instance, in a project ‘The Nile’ launched in Gurgaon by Omaxe group followed the Egyptian architectural designs.

Another instance, a recent one is the Tuscan City by TDI in Kundli. As per the words of Mr. Kamal Taneja of TDI, the landscapes, the market squares, gardens, picturesque scenes and the artistically conceived architecture actually belong to the scenic region of Italy’s Tuscany and have become an inspiration for Tuscan City.

Nowadays, people want to have good lifestyle with an affordable price when buying house. Although the cost of flat is the major factor, but the buyers nowhere compromise on their lifestyle and comfort level.  Developers added that times have changed and thus people are moving fast towards the western lifestyle.

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Real Estate Market Analysis

July 11, 2010 – 10:45 pm


Blackstone Hotel Omaha, Nebraska


Since the sales of residential properties are diminishing gradually these days, it is expected that the real estate companies will experience decline in the first quarter of financial year 2010-11. However, it cannot be ignored that the office market is picking up with the economy.

As per the data collected by leading stock brokerages show, it is expected that in the June quarter, the realty companies will undergo around a 20% growth in the net profit and a growth of 38-40% in net sales. As per the data of last year, there had been a net profit of over 80% which certainly brings the conclusion that market has experienced a decline in sales and profit.

A stock analyst with a Mumbai-based brokerage said that as compared to the June quarter of financial year 2010, the numbers look somewhat flat in this financial year.

For instance, the gross margins of DLF were 49% and had a growth of only 4%. Similarly, Unitech’s net profits had a growth of just 1%.

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Residential Project launched in Mumbai

July 9, 2010 – 2:56 pm

Residential tower
Borivli, in Mumbai’s western suburb is to be gifted with a residential project brought by Gitanjali Gems Ltd who is the leading diamond jewelery manufacturer and retailer.

The project is spread over an area of 400,000 sq ft. the project consists of two similar wings residential towers having 28 stories each with ultra modern amenities and two podiums. It is oriented in the direction facing Sanjay Gandhi National Park. Gitanjali Infratech Ltd which is a 100% subsidiary of the Gitanjali Group is going to develop this project.

The developers will offer possession in somewhere mid of 2013 while the bool=kings will be open from September. The expected revenue Gitanjali would be able to fetch is around 400 cr.

Along with this project, two more projects are on the list of Gitanjali Infratech.

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New Project launched in NCR

July 8, 2010 – 8:37 am

DLF Square Tower, Gurgaon
Godrej Properties are entering NCR with their first residential project in Gurgaon.  The project will be developed in partnership with Frontier Home Developers on an area of 1.05 million sq. ft. on nine acres of land.

Pirojsha Godrej, the Director of Godrej Properties Ltd. said on Wednesday that GPL is now operating in 11 cities including NCR.  The project is a residential one which includes flats and penthouses. The best features of this project are its flexibility with respect to various configurations, extensive green and open areas and cherry on the cake is that it faces a 36-meter wide green belt.

The project is located in NCR’s growth corridor and near NH-8. Some of the landmarks are the industrial township of Manesar, 20km from the Indira Gandhi International Airport, near Metro station.

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Indian Real Estate market on its pace

July 6, 2010 – 11:24 am

Parasailing at Virginia Beach / May, 2008
 India no more lacks in the race of real estate market. Although many developers are nurturing this fact, but its high time now and they should come out of their shell to realize the boom of realty market.

Due to the rise of upper middle class in India, a sense of better lifestyle and good living has made home in the heart of society. Now days, people believe in spending and enjoying rather than saving and worrying. Easy living is the demand of the time.

People now do not compromise on their comfort level. When one comes back home after a day’s work, he just want an ambiance that helps him to unwind. And this statement has proved itself as a boom for the developers since they now provide facilities and get customers as soon as the project launches. The demand in the residential sector is increasing day by day. Also, due to globalization, demand for office spaces has also grown. Thus, it can be easily concluded that realty sector is flourishing to the fullest.

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Service Tax Applied since July 1

July 5, 2010 – 8:33 am

tax_2960
According to CREDAI, the Confederation of Real Estate Developers Association of India, due to the application of service tax as per the union budget 2010, the property prices will experience an increase.

All of us are aware of the fact that this service tax has come into effect since July 1. For those who don’t, a quick recap says that an introduction of “deeming provision” took place in Union Budget 2010 which brought realty within the horizon of service tax.

According to the president of CREDAI, Mr Chitty Babu, there will be an increase of around 2.5% in property prices on account of the levy. Additional to this, in locations like Tamil Nadu where land registration and sale of building are done separately, a hiatus of 66.3% has been granted, thus, service tax will be applicable on the balance.

Finally, this whole tax would come just on the shoulders of buyers. This fact has even been admitted by some developers that they would charge extra from the buyers themselves to pay this tax.

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Future of Indian Real Estate Market

July 3, 2010 – 8:59 am

American Dollar 2Future of Indian Realty market seems to be brighter than ever. Following are the major reasons for the growth of Indian Realty:

  • The policies made by government for the Foreign Direct Investment have brought quite a large number of foreign investors into the Indian real estate market. India now ranks second in the list of most preferred location for real estate investment. In fiscal 2005-06, the FDI turned thrice to that in 2004-05, i.e., it turned from 2.38 billion USD to 7.96 USD.
  • Another reason for the growth of Indian realty sector is the positive reform implemented by the government. The growth of this sector is also evident by the fact that this sector is the largest sector after agriculture providing employment.
  • The education system also has impact on the realty sector. It is estimated that in next 2 or 3 years, there will be around 2 million graduates who would create a demand for 100 million sq ft of industrial space and office.
  • Lastly, the existence of world renowned Fortune 500 companies also other large companies to start operations in India, which in turn would generate huge demand for corporate hubs.
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Manufacturing Companies entering Realty Market

July 2, 2010 – 9:23 am

Theatres on the Bay
The shining real estate market in India has now attracted even small as well as medium scale manufacturing companies. In fact, around 6 to7 companies have even announced real estate projects either with partners or monetized their prime land assets.

Some of such companies are:

Textile company Arvind announced a residential complex across an area of 10,00,000 sq ft in Ahmedabad, in partnership with B Safal Group.

Cable Corporation of India (CCI) plans a project in the western India. The project is located in Borivali area of Mumbai and will be a project worth Rs. 1000 cr.

Usha Martin, the steel wire maker recently launched a residential project in Boisar, on the outskirts of Mumbai, and also plans to come up with more such projects in Bangalore and Pune.

Golden Tobacco and Hindustan Composite are next on the list who have not exactly launched projects but have sold their lands to Wadhwa group and Sheth Developer respectively for real estate projects.

Similarly, Reliance Group, Bombay Dyeing and Century Textiles etc are entering into this market.

Thus, conclusion can be drawn that the manufacturing companies are now hitting the realty market.

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Noida Extension; an Upcoming Location

July 1, 2010 – 9:23 am


Whitmore Lake Transit Oriented Development
After the locations called Raj Nagar Extension, Mayur Vihar Extension, now its Noida’s turn to stretch itself and the name given to this stretch is Noida Extension.

There are large numbers of upcoming projects here located adjacent to Noida’s Sector 121. These face the Noida-Greater Noida Link Road. It is expected that within next three months, this stretch will become operational.

Some of the major features of Noida Extension are:

Prime Location: Noida Extension actually belongs to Greater Noida sector 1. It is a part of NCR and is close to Noida sec. 121 and sec. 119.

Connectivity: One of the best features of Noida Extension is its connectivity across the complete NCR. And the upcoming metro line is acting as cherry on the cake.

Infrastructure: The Noida-Greater Noida Link Road which is 130m wide passes through the area. Also, NH 24 is just 60m away.

Long Term Investment: The area will pick its pace in around a year or two. But once it is full fledged, it won’t lack returns. Thus, it’s a long term investment opportunity.

Options for all: The developers are coming up with all kind of residential projects, office spaces and commercial projects. Thus, Noida Extension will have goodies for everyone.

Affordable Housing: The projects brought up by the developers provide a large range of residential opportunities whose prices will fall in the range of Rs. 9 lakh to Rs. 40 lakhs.

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