On Wednesday, the Cable Corporation of India made announcement that it has planned to enter into the real estate and will spend an amount of Rs. 1000 cr. in its first project. CCI Projects Private Ltd (CCP) is an associate company of CCI in which CCI holds 15% stake. CCI will be developing the project through CCP.
The project is entitled as Rivali Park. It is a project spread over an area of 22 acres located at Borivali, Mumbai. The project can be considered as a mixed-use development with various commercial, retail, entertainment, hospitality, and cultural elements.
The project will be completed in phases and would take around five to seven years to complete. The first phase is expected to complete within next 24 to 30 months and is part of the residential development.
By Anchal
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Tagged Associate Company, Borivali Mumbai, Cable Corporation of India, CCI, CCI Projects Private Ltd, CCP, Entertainment, India, Real Estate, Residential Development, retail, Stake
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‘Inno GeoCity’; a residential project, is launched by Inno Real Estate in Oragadam near Chennai. This firm is a division of Inno while Inno is a , a global investment group focussed on Indian real estate with operations in India, Middle East and Europe.
On Monday, Rajamannar Ramaswamy, the Group Managing Director said that GeoCity is the first own development project of Inno. Till now, they just used to fund other projects and they have already six Indian projects with a total gross development value (GDV) of Rs. 2,600 cr.
Sajid Sathak, the Managing Director said that Geocity, which is spread over an area of 131 acres would be a self-contained township and that it would have a GDV of Rs. 750 cr. 4,000 residential units would be available for buyers plus amenities such as shopping mall, school and medical facilities would be there.
The first phase of GeoCity will consist of 1,000 units and would complete within 1.5 years.
The houses would fall in any of the three categories; Row House I, Row House II and twin house. The cost of houses would fall in the range of Rs. 17 lakhs to Rs. 22 lakh.
By Anchal
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Tagged Amenities, Chennai, GDV, GeoCity, Global Investment, Gross Development Value, India, Indian Projects, Investment group, Middle East, Residential Project, Residential Units
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Since the demand of commercial real estate is increasing due to the increase in retail activity, Sheth Developers, a property firm tied up approximately half the space at its upcoming 1 million sq ft mall in India’s financial capital.
Sheth developers are Mumbai based developers. They have lined up retailers Hypercity and Shopper’s Stop. Also Cinepolis, which is a Mexico-based multiplex chain, is lined up as tenants for the ‘Vivacity’ mall at Thane which is currently under-construction. All this information was gathered by some reporters on Monday from the vice-president for marketing & leasing of Sheth developers.
He also admitted that although the firm had slowed down construction work due to the market slump, they are now back into operation since their leasing team is getting tremendous response now.
This mall has a total of 670,000 sq ft area as the saleable area and it scheduled to start operations by August 2011.
By Anchal
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Tagged cinepolis, Commercial Real Estate, Construction Work, hypercity, India, leasing team, retail, sheth developers, thane, Vice President, vivacity
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Photo by Justin A. Wilcox
On last Sunday, Marib Holdings LLC, an Abu Dhabi-based company announced that they plan to build a “space city” in Chikkaballapur district. This district is approximately 90 km from Bangalore. The company would invest an amount of Rs.18,400 cr. ($4 billion) in the project.
On Saturday, this project got its approval from the state government. The project would include both business as well as residential options. The project is to be built over an area of 1,600 acres. Also, an entertainment theme park would be set which would be inspired from Disneyland.
Exhibition centers, a science and technology park, malls and media-linked events are also included in the project.
In all, the project will include 7,200 residential units, a city center consisting of fashion hub, media city, exhibition halls, media design centre and techno city. Also there will be star hotels, a convention centre, offices and an exhibition hall in the free zone office tower.
By Anchal
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Tagged Abu Dhabi, disneyland, entertainment theme, exhibition hall, exhibition halls, fashion hub, free zone, Malls, marib, office tower, residential options, Residential Units, science and technology, space city, State government, Technology Park, theme park, zone office
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Due to the continuous oversupply of the commercial projects, the signs of pickup in demand in the sector seems becoming dull and thus banks are also backing out from lending to real estate firms.
As compared to the residential sector, the demand growth of the commercial sector in past few months is much behind that of the residential one. Not only the office spaces are yet to be occupied, but also the ready projects are unable to seek buyers. This lack of buyer’s interest in the office spaces, multiplexes and retail has forced banks to back off lending to commercial sector.
Other than the uncertain demand scenario for commercial space, banks also have to look and take care of the rising realty sector debt on their ledgers. Ranjan Dhawan, the chief general manager of Punjab National Bank (PNB) said that since some of the banks have reached their sectoral exposure limit, they cannot now get into more lending. He also added that although PNB is still in is exposure limit, still it would get into some other lending only after thorough due-diligence.
By Anchal
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Tagged Commercial Banks, Commercial Projects, Commercial realty, commercial sector, Commercial Space, Exposure Limit, Ledgers, Multiplexes, Office Spaces, Oversupply, PNB, Punjab National Bank, Real Estate Firms, Residential Sector
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In the Visakhapatnam chapter, regarding the disputes between buyers and builders, on Thursday, the Confederation of Real Estate Developers’ Association of India (CREDAI) took responsibility of being a mediator so as to arbitrate the disputes.
A code of conduct was formally released by code of conduct, national president, CREDAI. This code was originally brought by the Visakhapatnam chapter as a measure of self-regulation. The formal release of this code of conduct announced many dos and don’ts for member developers/builders of CREDAI.
In the welcome address, K. Subba Raju, the chairman of CREDAI said that they would surely keep a watch on all members so that they adhere to the 27 guidelines of the code completely which in turn would develop a sense of confidence upon the fraternity.
The realty prices in cities like Delhi, Mumbai or even some of the smaller tier II cities, like Jaipur or Coimbatore, have shown a remarkable increase over the past few years. This growth has proved the advice of Mark Twain, an American author, that ‘Buy land, they are not making it any more’.
There is no paucity of multibaggers in Real estate. Many cases have been observed in which the property brought in 1986 for just Rs. 1 Lakh is now valued at Rs. 1 cr. or even more.
Thus, it can be inferred that prices are multiplying a whopping 100 times in approximately 25 years at an annual return of 20 percent per annum. For example, in 1977, Mr. N Mehta, a retired professional had bought a 1 BHK house in Andheri, Mumbai, for Rs. 70,000 and the price of this BHK now is Rs. 70 Lakh.
According to the head (real estate investment advisory) of Birla Sun Life AMC, Mr. Sashi Kumar, In today’s scenario, each one should hold realty in the portfolio, although the ratio of how much he/ she should hold could depend on the individual.
Step 1: Survey of Location
Find out whether the location is close to amenities such as apartment complexes, shopping malls, recreational facilities, industrial belts, and schools.
Step 2: Analysis of the plans and policies of the local civic bodies.
Step 3: Prepare the necessary documents
- Salary slip
Statement from bank for the previous financial year
- Identity proof, PAN card
- IT returns of the last three years
- Whole set of house documents
- Form 16 for the previous 3 years
- In case of flat (if you will have to furnish it), the MoU between the builder and you
- Written statement from developer about the advance payment
- NOC from the developer
The decision made by Delhi government in concern with increasing the circle rates has encouraged the Municipal Corporation of Delhi which thus, now plans to revise its property tax rates upward.
According to some experts, the impact of the increase in circle rates would be in the ratio 2:1, i.e. , with the increase of 200% in the circle rates, there will be a hike of 100% in the property taxes.
However, where the circle rate increase is not very steep, the revision in property tax could be lower.
The property taxes in Delhi are based on the unit area. The circle rates are fixed at a higher rate because of the cost of property in the posh areas which is quite high.
![[mb] Gutted Abandonment](http://farm4.static.flickr.com/3085/2711361207_112b76d078_m.jpg)
In order to check the illegal constructions across the capital, especially on the land for agriculture, the concerned departments are ordered by the Delhi Government to come up with strict actions against such activities.
As per the instructions of Mr.Raj Kumar Chouhan, the Revenue Minister, any illegal construction will not be tolerated and along with the guilty, the government officials will also be punished if they fail to control such activities.
He added that if anyone is found who is carrying out any construction activities in 1,639 unauthorized colonies, which are being considered for regularization by the government will also be considered guilty and will be punished as well.
Finally, he also said that government would not stand aside but will take action against developers and land mafia if they are found guilty.
Hindustan Construction Company (HCC) which is country’s leading construction firm has declared that it will soon strip its stake. The firm revealed the fact that it will divest its major proportion of investment, i.e. 74% of its stake in various other projects.
At present, the firm’s focus is the project called ‘247Park’. This project lies in Mumbai and this project is expected to work as a milestone for the company’s business destination. IL&FS Milestone Fund are the ones from which firm has striped stake.
The ‘247Park’ will be the hugest standalone LEED Gold certified green building in India. The total estimated value of this Park is Rs. 775 cr. The project is spread over an area of 1.8 million square feet. While Vikhroli seems to acquire a good position in the ranking of business corridors in Mumbai, this ‘247Park’ is located at the heart of Vikhroli. This project was completed in March, 2010 and in just a couple of months, its more than 85% of space has already been leased.
According to Mr. Rajgopal Nogja who is the President of HCC Real Estate Ltd., HCC has finished the project in time without compromising on the high standards of the project.
One of the leading real estate developers in India, DLF, has been granted the NOC from the government today, thus the firm will now resume its plan for SEZ, a special economic zone in Kolkata.
After a meeting of the Board of Approval which is the nodal body for SEZ-related matters, Mr. D K Mittal, the Commerce Ministry Additional Secretary told the media that the DLF’s SEZ in Kolkata has been granted re-notification by the Board of Approval.
In June, 2008, DLF had come up with four SEZ projects out of which one was SEZ Kolkata.
DLF have gained this notification after a long struggle since it had to approach the Commerce Ministry for reviving this IT/ITeS tax-free zone. Finally, once the demand for IT/ITES leasing space came up, the company allowed for resuming the project.
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.
Competition Commission of India (CCI) has decided to take action against the malpractices taking place in the real estate sector. While any specific complaints would be dealt with, misleading the buyers would also be considered as a malpractice.
Some sources revealed that apart from the general complaints of conditions of sale agreements, change in terms, delayed possession and problems faced by consumers while opting out, the complaints of misleading advertisements would also be taken into note.
Sources also revealed that CCI has found a large number of complaints against many leading real estate developers. There exist an Act of Parliament through which the Commission, which gained functionality last July, is empowered to ban any malpractice or enalise the guilty.
According to the Commission, irrespective of any specific builder, the consumer status as far as unsatisfaction is concerned, is the same. Thus, it is well justified to look into these specific as well as general problems.
It is never easy to find answers for the questions like how to buy a house, which option is best for me, or whom to rent my house, etc. Although these questions are important to one, but people forget the most basic question which is ‘when to buy?’.
Someone has rightly said “Never bite off more than how much you can chew”. One must always be realistic and look forward to a house according to his own budget.
The financial planners advice you to have a thumb rule that never go for a property for which the EMI loan amount exceeds 40% of your take home. You must be careful enough and make sure that the return on investment pitch given to you by the broker or the builder doesn’t fool you.
Next, the reverse mortgage schemes offered by the financial institutions can be of great use in the latter years of life if so required. At any point of time, one must not give a thought to how much money he can save in the long run if a house is purchased.
Another area which one must consider is that the decreasing interest rates and the increasing real estate rates are not always a nice combination. Thus, one must be careful enough while selecting his dream home.
Finally, especially for the individuals who are on the drive of establishing themselves, the financial advisers suggest not to have heavy loan burdens as it may hinder their growth.
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.
By Anchal
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Tagged br apartments, Flats, Gurgaon, Ireo, Launch, North India, penthouse, Real Estate Sector, residential towers, tallest towers, Victory Valley
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Since the home prices continue to surge in the financial capital of the country, one of the leading real estate developers of India, Lodha Developers have come up with the tallest residential tower in Mumbai. For the financial support, Lodha is negotiating with foreign as well as local financiers.
A banker informed that the Lodhas have approached the property fund of mortgage giant HDFC for over Rs 1,000 cr. and the leading Singapore funds, GIC and Temasek.
Presently, the world’s tallest residential tower is in Australia, known as Queensland Number One which has a height of 322.5 metres. While due to the market downturn, some of the major projects in the West are put on hold, there’s some movement in the Middle-East. Dubai is to come up with a tower of height 516 metres having 120 floors.
The New York architects,Pei Cobb Freed and Partners, who have designed some of the most lavishing architectural marvels across the globe, around 200, are to be hired by the Lodhas for this tower. Some of their famous marvels are Bank of China Tower in Hong Kong, Louvre Pyramid in Paris and John Hancock Tower in Boston.
By Anchal
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Tagged Bank of China Tower, GIC, Hdfc, John Hancock Tower, Lodha Developers, Louvre Pyramid, Mumbai, New York, Pei Cobb Freed and Partners, Queensland Number One, Temasek
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After a year, the realty market seems to be overwhelmed with the comeback of the demand of luxury homes. Apart from the prime locations like Bangalore and Mumbai, the tier-II or tier-III cities, such as Nagpur and Ahmadabad are also witnessing remarkable growth as far as luxury homes are concerned. Within just six months, these cities have seen a rise of about 20-25% in account of premium residential projects.
Some of the developers who have floated several luxurious schemes across the country in order to grab more and more investors and end-users are Hiranandanis, Sobha, DB Realty, Lodhas , Indiabulls and Prestige.
However, each city has its own range of prices of these luxury homes. The cities Bangalore and Hyderabad have a pricing of Rs 6,000 per sq ft while the pricing in Mumbai is Rs 30,000 per sq ft.
“From Jones Lang LaSalle Meghraj (JLLM) which is a real-estate consultant, the managing director, strategic consulting, Mr. Deepak Bhavsar said that there has been an increase of 10-12% projects in Delhi NCR and Mumbai.
By Anchal
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Tagged Bangalore, DB Realty, delhi, Hiranandanis, Hyderabad, Indiabulls, JLLM, Lodhas, Luxury Homes, Mumbai, Prestige, Sobha
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Since the land rate are rising and realty seems to be the most profitable market, many of the top textile firms are also attracted to this business and are thus generating additional revenue streams by developing or selling precious real estate.
Some of such firms are Provogue India, Century Textiles & Industries, Bombay Dyeing & Manufacturing and Alok Industries. These all aim at boosting the cash flow and reducing debts.
In the last year, the cities like Mumbai and Delhi have gone through a big hike in property prices. Across the whole world, Mumbai is rated as the most expensive office location.
The chairman of brokerage CNI Research, Kishor P Ostwal said that a lot of companies own huge land banks but the valuations in the market are given only to those who aim to develop these land banks and not just own them.
Thus, Century and Bombay Dyeing are both rated as a ‘buy’ by Ostwal since they have premium large tracts in central Mumbai.
By Anchal
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Tagged Alok Industries, Bombay Dyeing & Manufacturing, Century Textiles & Industries, CNI, delhi, Land, Mumbai, Property, Provogue India, Realty, Textile
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The Jaiprakash Associates, one of the leading infrastructure companies in India has covered a turn over or more than Rs. 10,000 cr.
The Jaiprakash Associates Limited (JAL), the leading infrastructure pudding stone having business interest in the area of cement, construction, engineering, expressways, power and associated real estate and hospitality, in order to continue the growth drift, has announced a net profit for FY10 on higher revenue. For 2009-10, a final dividend of Re.0.54 per equity share of Rs 2/- each has been advocated by the company’s board.
In the financial year 2009-10, Jaypee has shown a remarkable growth. Its total revenue exceeded by 72%; from Rs 5979.52 cr. to Rs 10316.04 cr. Although the EBIDTA went through a hike of 40.36%; from Rs 2059.91 cr. to 2891.44 cr., for the financial year 2010, the net profit registered a growth of 90.45%; from Rs 897.01 cr. in FY09 to Rs 1708.36 cr. in FY10. The revenue for this year on the basis of shares was up by 87.47%; from Rs 4.31 to Rs. 8.08.
Better Options Property (BOP) which is a Delhi based realty management and advisory firm. These realty boutiques seem to be interesting enough since they will be developed for the first time in India. A realty boutique is a real estate Shoppe based on the model of a walk-in store for property consultancy and purchase. These will be called ‘BOP Studio”.
Some of the key features of these studios are:
- An amount of Rs. 60 lakh would be spent by each studio on the infrastructure alone.
- These studios would be located at the prime location in each city covering an area of 2000 sq ft.
- Currently, the cities Noida, Kanpur, Chandigarh, Meerut, Jaipur, Agra, Lucknow, Amritsar, and Ludhiana etc will be credited with the BOP Studios.
- It is expected that there would be thousands of professionals that would be recruited in these studios.
The target for the BOP studio is quite high. It might have to take around 10 projects hand in hand in every city where it plans to operate. According to Gaurav Mavi, director, BOP, although their plan of expansion in India through the shoppe concept may not flourish at once, but will surely be able to fetch profits later.
By Anchal
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Tagged Advisory Firm, agra, Amritsar, Better Options Property, BOP, BOP Studio, Chandigarh, Jaipur, kanpur, lucknow, ludhiana, Meerut, noida
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Since now days, land is the most promising resource, the developers are ready to pay any price just to get into the realty business.
Here are some of the major deals in the field of land:
- The Lodha developers had a deal of Rs 4,053cr for a plot of 25,000 sq mts. The sq per mtr cost is about Rs 81,818.
- Next closest deal was by Sunteck India. It was a deal of Rs 3,465 crore. Following Sunteck was Indiabulls Real Estate at Rs 3,327 cr which was backed by Gaurhari Estate at Rs 2,251 cr.
- In 2008, BPTP, a Delhi based builder had a deal of Rs. 5000 cr for a 95 acre plot in Noida. Unfortunately the deal could not get through.
Lodha Developers plan to launch a 650 million dollar IPO in the end of this year. Also, they plan to build a residential building worth Rs. 10,500 cr in the center of Mumbai.
Photo by on Vacation ModeOne of the most prominent bodies of realty developers and builders, Maharashtra Chamber of Housing Industry (MCHI) has planned to showcase the phenomenal work of Indian builders in the field of property in the 13th India Realty Expo 2010. This expo is scheduled from 3rd to 5th June, 2010 in Dubai, at the Renaissance Hotel, Deira. This step is taken by MCHI to bring some of the NRIs in the Indian realty market.
MCHI is a member of CREDAI, Confederation of Real Estate Developers’ Association of India. This expo will last as an opportunity to NRI investors to fully explore the offers and opportunities in front of them as far as Indian realty sector is concerned. This expo would throw light on all the fields, be it be housing, retail or commercial sector.
This ‘India Realty Expo’ will prove as a golden opportunity for the NRIs, especially in the Gulf region, to come back close to their motherland. Apart from CREDAI and MCHI, there will be 21 more builders who will participate in this expo. The expo will be held at from 5 pm to 9 pm on 3rd June whereas the timings for 4th and 5th June are 10 am to 1 pm and 4 pm to 9 pm. The main focus of this expo will be on the real estate sector of cities like Bangalore, Goa, Pune and Mumbai.
By Anchal
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Tagged commercial sector, Credai, Dubai, expo 2010, Goa, golden opportunity, Housing Industry, Mchi, Mumbai, Nris, Pune, Real Estate Developers, Real Estate Developers Association, Real Estate Sector, Realty Market, renaissance hotel, showcase
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The apartment buyers were already burdened by the day by day increasing property rates, and now come another burden to their door. Since last month, many developers have been demanding the buyers to start paying up the service tax announced in Union Budget, 2010, i.e. a 2.5% tax.
However, this service tax will be imposed only on the under construction residential project or where the building has not yet received its occupation certificate. Some sources revealed that some developers admitted that they asked purchasers to pay this tax.
On the other hand, buyers say that they were not told about this additional taxation at the time of booking of flats. A market source told that although the buyers are raising voice against this game played by builders, but they do not have much choice. As they are forced to pay the development charges, society fees, hefty parking charges and other various charges, they will have to pay this tax too.
