As per the survey, in quarter II, occupiers markets picked up, with increased lease demand as compared to first quarter as indicated by countries. However, the rents continue falling in thirty countries out of 46 countries covered under the survey. On the other hand, in 8 out of 10 countries, there is a continuous increase in available spaces.

Also, the expectations from the third quarter 2010 are much higher. India ranked 6th highest amongst 46 countries on the basis of commercial rents while in case of lettings, it ranked at 13^th position. India was able to secure 10^th position in field of capital values but still as compared to other countries, investment activity in India was relatively lower. This indicates that investment returns are better in other countries.

According to a survey, 33% people believed that home values in their housing market are still above the bottom line while 38% believe that they have already reached a bottom.

28% homeowners expect a decrease in home values in the next six months. However, 30% of them are expecting an increase in their local market.

In totality, 27% of homeowners hope for an increase in their home values in the next 1 year, 12% expect a decrease in value, 35% say the value ill be same and 26% don’t have any opinion yet.

Mumbai will soon be gifted around 70 million sq ft of developed area by Raheja Universal out of which 26 million sq ft will be the commercial segment and 44 million sq ft will be residential segment.

The three stars received by the company from CRISIL reflect its strong position in the realty business in Mumbai. Due to its good execution track record and high quality construction, it has been able to maintain its image as a good brand. This brand name has been the major reason for the company being able to command premium prices over its competitors.

Also, other than this, the company owns an area of 1,202 acres across eight Indian cities.

Photo by Ravi Karandeekar

On Friday, Alembic, India’s oldest pharmaceutical company announced its entry in real estate sector as it has launched a company called Alchemy Real Estate. The CEO of this company will be Mr. Udit Amin, son of chairman and managing director of Alembic Limited Chirayu Amin.

The city-based pharmaceutical major Alembic had announced its planning in June this year about entering the realty sector with residential and commercial properties. Also, one of the official told that Shangri-La, company’s first residential project is located on Alembic road overlooking Alembic cricket ground and near Bhailal Amin hospital.

During these announcements, officials informed that the company holds more than 100 acres of land in the city out of which around 50 acres is might be used for real estate purpose. The recently launched residential project will consist of 11 towers of nine floors. There will be in all 396 flats of two, three and four BHK. The project is spread over six acres of land.

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At the company’s 130th annual general meeting, Mr. Wadia told the shareholders that debt has always been a big concern and the company hopes to get free from these debts within 2-3 years. The company expects a good response for its real estate business which might help them become a debt-free company.

Last year, the income from Real estate business doubled to Rs. 562 cr. The company now plans to come up with residential and commercial buildings on the 67 acres of land it owns in Mumbai.

Rs. 5.58 cr. was its standalone net sales.

According to the data, in March 2010, the trailing 12-month (TTM) EPS of the company was at Rs 0.56 per share. The ratio between stock’s price and earning (P/E) was 334.02.

Rs 89.84 per share are the latest booking value of the company. Thus, at this value, the ratio of price to book value was 2.08.

Gautam Chatterjee, Vice-President and Chief Executive Officer of MHADA stated in a conference that MHADA is lacking in land due to which it is not able to provide affordable houses to the urban poor.

He also said that the MHADA’s available land is passed on by the Government at subsidised rates.

He continued that value of land is a component of the price of finished products (houses). Therefore, it is difficult for the government to subsidise the land with the market price resulting in shortage of land.

As a measure to help the situation, MHADA plans to buy land at market prices from developers. The authority will also give advantage of additional 2.5 FSI scheme to the developer.

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The refinancing will be done in terms of dollars since last year the debt was raised in dollar terms only. It means that it may not be in accordance with the current base rate. ICICI and SBI currently have base rate of 7.5%.

Due to the recent permit from RBI to take-out financing arrangement through ECB under the approved route for infrastructure sectors like bridges, airports, power sector, sea ports and integrated townships, DLF’s chances for refinancing becomes brighter.

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.

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As per the report, the bank is not disclosing any details, neither about size of fund nor about the sales price of the deal.

Also, the report stated that the total real estate investment arm of Credit Suisse manages around 33.5 billion USD in property assets.

On the other hand, Mizuho Sec plans to focus on developing a growth capital private equity business in India. Also, it wants to invest in Indian companies through private transactions. According to MD & CEO, Tata Capital, Praveen Kadle, Japan’s saving base offers a stable source of capital. If all goes well, then there will be high investments from Japanese and other International investors.

Also, Kadle told that the company chose Singapore only due to its transparent regulation with economic and tax advantages.

Roopa Kudva, the Managing Director and Chief Executive Director of Crisil, told that there will be a scale of seven stars through which rating would be given to specific projects as compared to the other alternative available projects in the city.

Also, CREST publically declared that they are currently considering 21 projects spread across 9 Tier-I and II cities.

The parameters of rating will be previous record of the developer, the infrastructure of the project, cost overruns, timely completion, finishing, after-sales service, project innovations and the legal issues associated with the project.

Also, this rating will be revised after the project completion.

The report stated that during the first quarter of 2010, most Indian cities have experienced an upward movement in the volume of lease transactions. There have been recorded around a million sq. ft. of leases in each of the cities; Delhi, Hyderabad and Mumbai.

For the future, the report predicts that within the next three quarters, most micro markets are expected to reach their rental lows. This implies that even after balance of power favors the occupiers, the opportunity for then is diminishing with every passing quarter.

The report “The Seven Stars of India India’s best performing micro markets for occupiers” gives the prediction about real estate rental market in cities like Mumbai, Delhi, Bangalore, Chennai, Kolkata, Pune and Hyderabad.

The size of these plots is 153 square yards. Thus, the whole plot would cost approximately Rs.25 lakh.  The additional charges on the plots will be the same as the old ones applied on all other plots.

These plots are available at a further discount of 10% on BSP in case of Down Payment. In case of Partial Down Payment, there is a discount of 6.25% on BSP.

One more update is that the project earlier known as JPSK (Jai Prakash Sports Komplex) will now be known as JPSI (Jai Prakash Sports International).

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.

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.

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.

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.

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.

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.

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.

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%.