Tag Archives: Real Estate Sector

Indian Real Estate – Ever-Expanding Territories

July 24, 2008 – 5:41 am

Real estate market in India is on the upswing while builders in India are rapidly investing in all the parts of the country. New constructions in this field are into an all-time growth. Indian property developers are buying plots in large number for construction of townships and residential complexes.
A study of the market trends for commercial property in India reveals a similar pattern of the rising rates and a closer look at the prevailing rates is necessary to get the best out of the property. Commercial properties in India are also on the rise with their flourishing constructions. Shopping malls, shops, big Corporate Offices, Movie Halls, Amusement and Recreational parks et al are in for investments by Real Estate Developers in India.
Huge number of properties is on sale in India, luxurious apartments, premium quality flats, independent homes, farm houses, penthouses, row houses - are some of the projects that are selling like hot cakes in residential property sector in India. Property developers in metropolitan cities are expanding their vision and investing in tier II cities like Pune, Surat, Coimbatore, Cochin, and Vadodara.
Property developers in Lucknow, such as Ansals have invested here in a township, Sushant City- Lucknow, which they name as “shaan of Awadh” or Awadh’s pride. Builders in Chandigarh like Axiom Estates are coming up with projects in residential sector. Real estate builders in Ludhiana are investing in residential as well as commercial complexes.
Builders in Hyderabad like Modi Builders are coming up with number of residential projects such as The Gardenia, The Golden Palms, Palm Springs and The Silver Springs. Builders in Cochin for instance, Abad Builders, Trinity Builders & Developers and Gokulam Engineers are establishing themselves in real estate sector and their construction and investments are showing up to be fruitful.
With the kind of growing economy buying, selling, investing and renting properties in India is considered a lucrative option by the people world over. Moreover, an increase in the property rate in the real estate market, even in tier- II or tier - III cities of India, is showing an upswing trend in building and construction. According to real estate agents in India, this is indicative, at least on one level, of a clear interest of people in buying or selling of properties.

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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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Slowdown Of Real Estate Market Affecting Deals

July 10, 2008 – 5:30 am

With slowdown hitting the real estate sector, land/property deals appear to be falling like ninepins. The latest deal to come unstuck is one involving the K Raheja Universal group and Lupin.
According toSources the negotiations between the two parties for part of Lupin’s land at Boisar in Tarapur and Thane district, has fallen through primarily because of the existing insecurity in the real estate market.
While officials from K Raheja Universal did not respond to a media query on the deal, Lupin’s spokesperson, replying to an email questionnaire, said: “Lupin is an innovation-led transnational pharmaceutical company with no interest in real estate.”
Incidentally, Lupin had some years ago sold its Bandra Talkies property to a real estate developer. An analyst with a foreign brokerage house covering the firm said Lupin had, at one time, large tracts of land. “The real estate market then crashed. Slowly over the years, Lupin managed to sell most of its properties. It could well be considering the same now,” he said. Lupin has entered the league of the top five Indian pharmaceutical firms. The company hopes to be a $1 billion company by the end of the current financial year.
It is not just Lupin alone which is having to bear brunt of the real estate downturn. Other deals which have hit the dirt in the recent past include Orbit Corporation’s deal for a six hundred crore rupees property with Kotak Realty Fund and Citra Developers and Rs 676-crore bid for the 134 crore Pal-Peugeot land at Dombivli-Kalyan.

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Sobha Sells 40% In Bangalore Project

July 3, 2008 – 7:06 am

Sobha Developers Ltd leading real estate company said on 02nd July it has sold forty percent stake in an forthcoming Bangalore project to Dubai’s Pan Atlantic LLC for ten million dollar.
Sobha plans to develop a 1.7-million-sq ft residential township at the plot in south Bangalore. A senior company official said the present value of the land is estimated at 1.05 billion rupees. Read More »

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Realty Dreams Of Small, Mid-Sized Cos Crumble

July 1, 2008 – 1:20 am

Struggling with a slowdown across segments, the Indian property market is moving towards the next phase of consolidation. Liquidity crunch in the real estate market is beginning to drive many mid-sized and small developers to beg for cover.
Many want to liquidate their land and incomplete projects by selling them to bigger developers or private equity players even at lower valuations. This is due to the stagnant market conditions. Around fifteen deals in real estate sector have fallen through in the past two months with investors developing cold feet.
A mid-sized builder at Chembur in Mumbai has put its fourteen floor commercial property in central Mumbai on the block. The developer wants to raise around one hundred fifty crore rupees which would help him complete his upcoming project.
A Hyderabad-based real estate group has started advertising to attract high networth investors to generate fifty crore rupees against bulk purchase of its housing project in the city. A small developer in Mumbai, pushed to a corner on account of mounting payables for construction material, is now offering its project at Juhu-Versova in Mumbai at about 35% discount to the current market price. In Delhi, some developers have approached property consultant to sell their income generating commercial properties to finance some of the unfinished projects.
Real estate funds and established developers admit that they are working on various proposals. Hiraandani Developers chairman Niranjan Hiranandani said, “Even in the normal circumstances we used to get offers from mid-sized developers to buy out their projects. But now, the numbers have increased considerably”.

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Thirty Billion FDI Likely In Real Estate In Next Decade

June 27, 2008 – 6:06 am

According to estimate made by ASSOCHAM, the FDI component in the domestic real estate market is expected to be thirty billion US dollar as against its total amount of one hundred two billion US dollars in next decade as the real estate sector escalation will raise up by more than 30%.
Additionally, ASSOCHAM report stated that, the domestic real estate market is expected to be of fifteen billion US dollars in which the FDI contribution is estimated around six billion US dollars. The bank credit to this sector in 2006-07 has been estimated around three lakhs crore rupees, which will multiple substantially in the future years considering the growth that the sector has been registering.
Mr S. Jindal president of ASSOCHAM said that presently the foreign developers can take on construction actions on a minimum space of fifty thousand square feet in consequence of which Indian real estate sector could achieve FDI’s component around six billion US dollars.
Mr. Jindal further said, “The upper limit of fifty thousand square feet would be lifted by the government as it is under continuous pressure for increased FDI’s which as per ASSOCHAM estimate will increase to two lakh square feet in subsequent decade in a gradual manner and result for much higher foreign capital absorptions”.

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Leading property developers are pulling out of hotel project

June 23, 2008 – 12:17 am

Leading property developers are pulling out of proposed deals with hospitality majors, including Royal Orchid Hotels and Ramada Worldwide, as cash flows in the real estate sector are slowing. Realtors are reconsidering plans to go into the hospitality sector. Read More »

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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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Deepak Parekh Proposes Real Estate Regulator

June 18, 2008 – 12:03 am

HDFC chairman Mr. Deepak Parekh has advocated the need for a real estate regulator in an attempt to protect the interest of property buyers in the country.
In his letter to HDFC shareholders, Mr. Parekh has written, “The real estate sector has been growing rapidly and is a sensitive sector given its strong inter-linkages to other industries in the Economy. I have advocated the need for a real estate regulator, though I understand this proposal has been met with stiff resistance from certain members of the developer fraternity. Though land is a state subject and would therefore require regulators at each state level, there can be a mechanism whereby there is an apex national body, which can oversee the functioning of state-level real estate regulators.” Read More »

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Real Estate Boom In Multi-Cultural City Lucknow

June 16, 2008 – 8:24 am

LUCKNOW, the ‘Shiraz of Awadh’ and ‘Constantinople of India’, as it is metaphorically called, is the capital of Uttar Pradesh. Located in what was historically known as the Awadh region, Lucknow has always been a multi-cultural city.

The real estate sector is seeing hectic activity, with every major property developer operating in North India launching projects here. Real estate giants such as Parsvnath, DLF, Omaxe, Sahara, Unitech, Ansal API are already here. The city offers better employment opportunities and education facilities. Being a state capital, it also offers better social and physical infrastructure and amenities compared to other cities in the state.

Says Janardan Aggarwal, president, Association of Real Estate Consultants, Lucknow: “In last 10-12 months, there has been an appreciation of around 20-30% in residential prices in Lucknow. Since it is the capital city, more and more people want to have a house here.”

He says about half of the demand is from people who live in nearby cities who wish to have a house in the capital. Also, there is a significant proportion of PCS officers who look for their dream home in the city. There is not much of business community in the city. One reason why most of the consumers are from the salaried class is that most of them believe that one day or the other they will either shift to Lucknow or will be transferred.

Hazratganj office spaces come at a price of around Rs 50 sq ft/month, while showrooms command around Rs 150 per sq ft/month. From the traditional retail markets of Hazratganj, Aminabad and Kaiser Bagh, Lucknow is also moving to the mall culture with Fun Republic Mall and the Eastern Mall in Gomti Nagar and the Sahara Ganj on Shah Najaf Road.

These days there is more demand of 2-3 BHK flats in the city. Also, there is a great interest for government housing schemes as they are affordable for most of the people. Recently, Lucknow Development Authority came up with a housing scheme that got cancelled due to some unknown reasons, adds Aggarwal.

Says Rohtas Goel, CMD, Omaxe: “Lucknow is witnessing a huge real estate growth with massive developmental changes happening within the city. Increase in economic activity and changing aspirations of the resident population has led to a massive growth of real estate in the city. There is a good demand for quality housing in Lucknow, which boasts of excellent infrastructure, international standard and yet affordable residential developments.”

Riding high on the surging economic activity, increasing disposable in-come and growing aspiration for modern living, Lucknow is bracing for big time real estate growth in both residential and commercial property market. Improved infrastructure in the city has also catalysed the boom in real estate. Lucknow offers a substantial potential for the future growth of real estate.

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