Tag Archives: India

Wipro Managed Ten Year Project From Lodha Group

July 26, 2008 – 3:55 am

Wipro Infotech has managed to get a ten year project worth Rs. 1.3 billion from Lodha Group. Wipro will provide IT and business transformation services to Lodha group in India and Middle East. Wipro InfoTech is a leading IT company in India. Lodha group has started a new path to get a premier position in the dynamic real estate market.
Lodha Group is a leading real estate project in Mumbai. It has a land bank of 6000 acres. The group is developing multiple projects in and around Mumbai. It is focusing on the development projects of offices, campuses, SEZ’s and townships and keen to enter in southern and western markets
The deal was announced by Lodha group director, Abhisheck Lodha. He expressed happiness on becoming technology partner with India’s leading IT service provider Company, Wipro info tech. chief executive of Wipro Infotech, Anand Sankaran expressed hope of successful completion of the project. He said that company will deliver its IT related services to make the group, a leading player, in real estate business.
The shares of wipro witnessed a fall of Rs 3.55, or 0.87% as per data shown by BSE.

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Prediction About Realty Trend

July 21, 2008 – 4:53 am

For now, the next few quarters could be the acid test for the sector. The stock prices of many real estate companies are under duress. DLF’s offer for a share buyback comes at a time when the stock price has been adversely hit. While one could argue that the overall sentiment is on a low, the fall in these stocks has hit the investor really hard.

At such high price levels for property, the buyer is taking his time which does not augur well for the developers. It is precisely for this reason that the uncertainty has stepped in.

HDFC’s Karnad admits that there are some pockets in India where prices need to correct further. “However, today, the real estate sector is going through a stage of over-pessimism,” she argues.

The story of the aspiring Indian middle class is hard to ignore and that could be urge to own a home could still make sure there is a healthy level of demand. Overall, the impact of a global slowdown on India is slowly being felt. It may affect Indian realty sector in coming time. However, NRIs affections towards Indian properties will not likely to be vanish in near future.

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NRIs Thinking Of Coming Back To India

July 8, 2008 – 7:05 am

Home sales in India might have turned slow but sales to NRIs is on boom continuously. According to Jones Lang LaSalle Meghraj (JLLM), residential sales to NRIs have tripled over the last half year, from 3% to 10% of the total business.

Lodha Group senior Vice President R. Kartik said, “What would happen when one loses his job in the US? The downturn is scaring many NRIs who fear job cuts”. JLLM’s Raminder Grover said, “There is a renewed interest in selling abroad”.

Sobha Developers has viewed the share of NRI sales go up from five percent to ten percent of its sales. Sobha Developers Managing Director J. C. Sharma said, “In the last six months, we have been selling about twenty five thousand square feet a month to NRIs”.

Many NRIs have been planning of coming back to India and many of them are making safety investments. Over the last few months, Lodha has seen twenty-five percent rise in its sales to NRIs.

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Ascendas Front Runner For Rs 200 Crore TVS Land In Chennai

July 8, 2008 – 7:04 am

Asia’s leading business space solutions provider Ascendas has emerged a front-runner for acquiring a 6.18 acre plot in Chennai for developing commercial space.

The land at Nandambakkam, near Chennai Trade Centre, belongs to Sravanna Properties, a subsidiary of a TVS group, managed by brothers Venu Srinivasan (CMD of TVS Motors) and Gopal Srinivasan (CMD of the new VC, TVS Capital Funds). The Singapore-based Ascendas has reportedly been short-listed by TVS along with a retail biggie, an educational institution and two parties from Mumbai and North.

As the first step for clinching the deal, TVS has signed a letter of intent with Ascendas. However, top sources on both sides declined to comment.

The deal has been hanging fire for quite some time and apparently TVS also hoped to realize a better value for the land in the event of State approving the second master plan for Chennai with higher floor space index (FSI).

Realtors have been anticipating relaxation in FSI to 2.5 from the current 1.5. Keeping this in view, TVS is said to have asked Ascendas to give two quotes, one with current FSI and another with a relaxed rule under the second master plan.

Ascendas is said to be doing a due diligence of the land. Sources in the know of the development said if the FSI is increased, then the deal would fetch Sravanna Properties about Rs 220 crore.

Sravanna Properties had fixed the upset price of the property at Rs 35 crore per acre. The company has been expecting a price realization of Rs 225 crore from the land. Originally, it was acquired by TVS-E in 1999 from ICL Foundries of India Cements for around Rs 10 crore.

A fresh lease agreement has to be drawn with the Defence authorities to handle the pathway problem, which has been hampering the deal progress. Currently, the road is maintained by TVS Electronics.

All the loose ends are likely to be tied up soon and the deal expected to fructify by August.

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Boom Time Over:-Keki Mistry, Vice Chairman Of Housing Development Finance Corp

June 27, 2008 – 12:55 am

According to Keki Mistry, vice chairman of Housing Development Finance Corp An increase in the housing supply, rising borrowing costs and a stock market rout are bringing a five-year property boom in India to a close, according to executives at two mortgage lenders. Property prices across the country could drop as much as 15% in the coming months. Gagan Banga, chief executive of Indiabulls Financial Services Ltd., predicted prices could decline as much as 20%.

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Standardization Of Real Estate Sector

June 20, 2008 – 2:49 am

It is now become essential to standardize real estate. Builders and developers are not averse to the idea of a regulator in the real estate sector.Credai president Mr. Kumar Gera said that developers want a regulator to discourage the dishonest players from entering the sector. Mr. Gera further said that Credai has made a number of representations to the government in this regard. Read More »

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Houses On Rent In Bangalore

June 12, 2008 – 6:59 am

Renting a house in Bangalore is as easy as never before. Thanks to notable increase in the rate of urbanization in this part of the country. Often Bangalore is termed as the IT capital of India. Many IT professionals come to Bangalore for various training activities as many IT majors have their head quarters located in this city. Also Bangalore is ideal place for education since many educational institutes are located in and around the city. Many students from other states like Maharashtra and Andhra Pradesh come here for education purpose. All these people are taken good care as many house rent options are there in the offering for them. Another reason for growth of the rental market could be that many working professionals come over on some official and stay for a short period of year. For such people renting a house would be ideal instead of purchasing a house. Read More »

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Real Estate Growth Impacted Due To High Interest Rates

June 5, 2008 – 8:51 am

Leading home loan lender ICICI Bank said that growth in the real estate sector has been impacted due to high interest rates and prices but maintained that there was no asset bubble in the sector.

ICICI Bank Joint Managing Director Chanda Kochhar said, “Clearly there is a slowdown in the number of deals …interest rates have gone up from 8% in the past to now 12% and prices too have gone up but an asset bubble is not there”. She further said that a correction was expected as the present slowdown was in number of deals and not so much in prices. Read More »

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EIB’s 2nd Fund To Focus On Indian realty

June 4, 2008 – 2:59 am

Emirates Islamic Bank (EIB), a leading Islamic financial institution in the region, plans to launch a 2nd fund focused on the Indian real estate market following the doing well closing of its Danat India RIA Fund, the bank said on 3rd june.
The bank said the new fund will add to a growing portfolio of funds aimed at producing wealth for investors in the UAE.
EIB has successfully closed the Dh270 million Danat India RIA fund, which invests in the Indian real estate sector. The bank has paid up to Dh60m and collected Dh210m through subscriptions in the UAE and other GCC countries.
The bank, through the fund, will acquire 77.78 % equity in the Danat RIA Company, which has been established with the principle purpose of acquiring 500 acres of land to develop an integrated middle-income township within the boundaries of New Delhi. Indian investors own the residual stake in the company.
Faisal Aqil, general manager of retail banking at EIB, said the fund – the first EIB fund committed for investment in the Indian real estate sector – could achieve its targeted subscription.
“Construction of the project has already started and the mandate is for three years. However, the EIB has the right to extend the fund’s mandate to four years according to developments in the project.
“The target market of the township will be New Delhi’s growing middle-income population who are seeking more affordable housing opportunities,” he said.

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India Loses Top Retail Position To Vietnam

June 3, 2008 – 12:55 am

After being three years on the top, India has finally lost its position as the most preferred destination among upcoming markets for retail investment, according to the 7th annual global retail development index (GRDI) by management consulting firm A.T. Kearney.

The GRDI ranks countries among the thirty emerging markets on the basis of their retail investment attractiveness.

Vietnam occupies pole position in 2008. The country’s leap from the fourth place in 2007 to the top spot this year was driven by strong GDP growth, changes in its regulatory structure favoring foreign investors and increase in consumer demand for modern retail concepts.

India, Russia and China —the top three countries in last year’s GRDI fell to 2nd, 3rd and 4tf places, respectively, in the 2008 GRDI.

While India, Russia and China remain important destinations, high real estate prices in big cities and growing competition have decreased the attractiveness compared with the last years and forced retailers to look for opportunities in Tier II and III cities.

“India continues to be a dominant force in AT Kearney’s annual GRDI report. While India has slipped to No. 2 this year, it continues to be a favored destination for global retailers. However, challenges such as skyrocketing real estate costs, a lack of good commercial property and complex regulations for foreign entry have caused the slide in ranking,” said Hemant Kalbag, principal (consumer industries and retail practice), AT Kearney India.

Vietnam’s twenty billion dollar retail market place is very small compared with India or China, but the absence of competition and an 8 %GDP growth make it an attractive opportunity for global retailers, says the report.

Moreover, the Vietnamese consumer is among the youngest in Asia, with seventy nine million below the age of 65. Moreover, the country’s consumer spending increased by more than 75 % between 2000 and 2007.

But all is not lost for India. The retail market opportunity here is larger than ever at $510 billion and spending patterns and consumer maturity are growing faster than what most retailers had forecast.

However, there are a few stumbling blocks that have emerged. Foreign players entering India today face stringent regulations, a clouded political atmosphere, soaring real estate costs and a fiercely competitive domestic retailer group, said the report.

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