August 2010

India property – Ever-growing areas

by Paul Joseph August 31, 2010 Uncategorized

Property bazaar in India is on the upswing even as developers in India are speedily investing in all the pieces of the kingdom. New-fangled structures in this meadow are into an unsurpassed enlargement. India real estate property builders are purchasing plots in huge digit for manufacture of townships and housing complexes. A revise of the marketplace drifts for commercial real estate in India discloses an alike pattern of the increasing rates and an earlier observe the existing rates is essential to obtain the most excellent out of the real estate. Commercial properties in India are also on the climb with their prosperous structures. Shops, Shopping malls, big Corporate Offices, Amusement, Movie Halls and frivolous parks and so on, all are in for investments by property builders in India. Gigantic amount of real estates is on transaction in India, premium quality flats, luxurious apartments, independent homes, penthouses, farm houses, row houses – are several of the plans that are selling akin to hot cakes in housing real estate subdivision in India. Real estate builders in municipal cities are growing their image and investing in tier II cities like Surat, Pune, Cochin, Coimbatore and Vadodara. Real estate builders in Lucknow, for instance Ansals have invested here in a township, Sushant City- Lucknow, which they title as “shaan of Awadh” or Awadh’s pride. Developers in Chandigarh property resembling Axiom Estates are forthcoming by way of projects in housing area. Property developers in Ludhiana are investing in housing in addition to commercial complexes.

Tagged as: india real estate, property in india., real estate

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Godrej Properties launches project in M’lore

by Paul Joseph August 31, 2010 Uncategorized

MUMBAI: Realty major and Godrej group company Godrej Properties on Friday announced the launch of its first project in Mangalore called Godrej Avalon. Located on the fast developing Airport Road, the project is spread over 6 acres and will have a saleable area of over 6 lakh sq ft, a press release issued here stated. The site is strategically located in Mangalore’s growth corridor with the airport and the city centre located at a distance of about 12 kilometres and 5 kilometres, respectively. Godrej Avalon is designed as a high-end residential project and will have three 23-storey towers offering 3 and 4 BHK luxurious apartments with panoramic views of the city, the surrounding valley and the sea. Apart from offering contemporary features, the project will also house a well equipped club-house with lifestyle amenities like game courts, a gym, a party hall and landscaped gardens. The company, however, did not mention the price range of the apartments. Like most of its projects, Godrej Properties is developing Godrej Avalon as a joint development project with the Fiza Group. The construction activity for Godrej Avalon will be done by L&T, the release said. This is the company’s third project launch in Karnataka after its Godrej Woodsman Estate and Godrej Cypress projects in Bangalore. Source: http://economictimes.indiatimes.com/news/news-by-industry/services/property-/-cstruction/Godrej-Properties-launches-its-first-project-in-Mangalore/articleshow/6446736.cms Filed under: Builders/ Developers , New projects Tagged: Godrej Properties , Mangalore

Tagged as: apartments, builders/ developers, godrej, mangalore, new-projects, press-release

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Redevelopment benefit is proportionate to the size of your flat

by Paul Joseph August 31, 2010 Uncategorized

Majority of members of our society in redevelopment have agreed tofixed additional areas irrespective of the sizes of our existing flats.We, few members are adversely affected because of our larger sizes of flats. Can the society do so? Whether monies received by us would be taxable as our income or society’s income? Society functions by decisions of the majority, but rule of majority cannot be an oppression on minority and the decision of majority has to be within the framework of applicable laws. In a co-operative housing society (CHS) type of organisation, although all members are equal in respect of their membership rights in view of principle of one member one vote but their property rights may be substantially at a variance. Property rights of members in a CHS are with reference to sizes of their respective flats. MOFA, 1963, being a territorial Act, automatically applies to sales of all flats on ownership basis by a builder, developer or promoter and since under MOFA, sale of units in the building is succeeded by conveyance of the underneath and appurtenant land, the builder recovers entire price of the property from sale of flats. Under such a legal system, therefore, even though each flat purchaser has paid the price for acquisition of his flat, but implicit in the price of each flat is the price of proportionate land. In redevelopment transaction, whether society is the taxable entity or individual members, would depend upon the manner in which scheme of redevelopment is designed and the documentation of the transaction.Although depending upon the facts of each case, in many cases, redevelopment of properties inter alia of societies have been held non-taxable. But at the same time, in all such cases, appeals filed by the income tax department have been admitted by the Mumbai High Court. Decisions will come after some years. If the high court confirms non-taxability of redevelopment through TDR-FSI route, things would be fine for societies. But if the high court decides that such redevelopment transactions are taxable, in such an adverse eventuality, if the society is a taxable entity, taxes would have to be paid whereas if a member is a taxable entity then once again due to various exemption sections applicable to individual assesses under the provisions of the Income Tax Act, 1961, the tax liability may come to nil or negligible. Therefore, a member and not the society as a taxable entity in such transactions, would provide double safety. In the case of Aurovilla CHS Ltd, represented by this writer, Hon’ble Mumbai Tribunal, inter alia held that in respect of corpus fund of Rs 10.26 crore, since the members were the owners of the property, society is not taxable. Source: http://www.dnaindia.com/money/column_redevelopment-benefit-is-proportionate-to-the-size-of-your-flat_1429673 Filed under: Builders/ Developers Tagged: Mumbai , redevelopment

Tagged as: income, mumbai, transaction

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Pearl Infrastructure’s housing projects under way

by Paul Joseph August 31, 2010 Uncategorized

Pearls Infrastructure Projects Ltd, having presence over 15 states across the country, is setting up two residential projects in Kochi – Pearls Riviera and Pearls Garden View. Pearls Riviera is spread over 9.65 acres, surrounded by lush greenery close to the banks of a river. It will have more than 1,300 flats with facilities such as swimming pool, clubhouse, landscaped gardens, etc. The Pearls Garden View is an 11-storey twin tower spread across two acres having 142 flats. The complex located in Chilavannoor Road-Bund Cross Road has a 100 feet lap swimming pool, sports building, landscaped greens, jogging and paved tracks, etc. Padmashri Mammootty, one of the most accomplished actors of Indian cinema, will be the brand ambassador for Pearls Infrastructure Projects Ltd in Kerala. The well-known Australian cricketer, Brett Lee, is the PAN India brand ambassador for the company. Source: http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=9992&cat_id=1 Filed under: Builders/ Developers , New projects Tagged: Pearls Infrastructure Projects Ltd , Real Estate in Kearala

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Newcomers eye affordable housing

by Paul Joseph August 31, 2010 Uncategorized

Many established real estate developers may shy away from affordable housing segment due to the low margin. But, this space is receiving a lot of interest from new developers who wish to cash in the rising requirement for housing in urban areas. Interestingly, these new developers also believe that decent margin is achievable through the use of latest technology with reduction of timing of construction. “Our business model is about value housing at affordable rate and we plan to build one million houses in next 10 years,” Jaithirth Rao, chairman of Value and Budget Housing Corporation (VBHC), said. VBHC is a new corporate entity floated by Jaithirth Rao, former chairman of Mphasis and P S Jaykumar, former head of consumer banking of Citibank, among others . The new company, recently, launched its first project ‘Vaibhav’ in this segment that is spread across 16.1 acres with close to 1,900 apartments in the outskirt of Bangalore. While the cost of the apartments in this project varies from Rs 4.5 lakh to Rs 12 lakh, there will be facilities like schools, water harvesting structures inside the premises. Further, holding of around 10 per cent stake by Housing Development Finance Corporation (HDFC) in VBHC shows the trust of bankers in these kind of models. Referring to the average margin in this project, P S Jaykumar, another promoter of VBHC said they were looking at an average margin of 25-30 per cent from their projects. The company, which is looking at metros like Chennai and Hyderabad for setting up such projects, will enter tier-II cities like Nashik and Baroda in the second phase. Similarly, another project promoted by Bangalore-based ‘Janaadhar Constructions’ is also coming up with its affordable housing project ‘Janaadhar Subha’ on the outskirts of Bangalore. The project, ‘Janaadhar Subha’, comprises of 1,140 flats with a saleable area of 0.7 million sq ft. The first phase of the project comprises of 528 flats of 400 sq ft each and will cost around Rs 4 lakh excluding property registration and other charges. “We will focus on people with an earning of Rs 15,000 per month, mostly comprising of people like security guards, household help, shop floor worker in factories and such others,” Ramesh Ramanathan, chairman and director, Janaadhar Constructions Pvt Ltd. There is a requirement of around 25 million houses by the middle and lower-middle class people in urban India. However, there are very few real estate companies having projects to cater to this segment. In a bid to fill this demand-supply gap, even companies with future plans to enter into real estate industry are planning to establish such projects. Rajesh Exports, India’s largest jewelery exporter, is one such company with plans in affordable segment. “We plan to enter into affordable housing space in near future as there is huge demand for these houses,” Rajesh Mehta, chairman and managing director of Rajesh Exports said. The company has a land bank worth Rs 1,200 crore as of now and will rope in a strategic investor to enter into this space, he added. Source: http://www.business-standard.com/india/news/newcomers-eye-affordable-housing/406340/ Filed under: Bangalore , Baroda , Builders/ Developers , New projects Tagged: affordable housing , Bangalore , Baroda , Janaadhar Constructions , Nashik

Tagged as: builders/ developers, city-trends, constructions, finance, housing, promoter

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TCIL Plans Exit from Real Estate Business

by Paul Joseph August 31, 2010 Uncategorized

Transport Corporation of India (TCIL) will demerge its real estate and warehousing divisions in next three months and expects to create greater value for shareholders through the hive-off. After the demerger, the company would focus on the core activity of providing logistic services, according to a report published in Financial Express. “Our board approved the demerger in April this year while shareholders have just given their nod to the proposal. The matter is with the Andhra Pradesh High Court at present. We are expecting a green signal in next 2-3 months,” (TCIL) executive director Vineet Agarwal, said. “The logic in the demerger is that we want to create value for shareholders by focusing on our core activity. The development of real estate and warehouses will be done by the new company,” he added. The company has 15 real estate properties with a book value of Rs 55 crore. It has engaged a slew of consultants to ascertain the best use and market value of the properties. “Some of these properties may be developed as commercial real estate,” Agarwal said. As per the demerger scheme, a holder of 20 shares of Rs 2 each in TCIL will receive one share of Rs 10 in the new company. The earning per share (EPS) of the company was Rs 5.9 at the end of March 2010 against Rs 3.9 a year ago. TCIL aims to take it to Rs 8 by the end of 2011-12. Agarwal said his company is also exploring the possibilities of setting up multimodal logistics parks along the dedicated freight corridor being developed by Dedicated Freight Corridor Corporation of India (DFCCIL). DFCCIL has planned four such zones in Haryana and Gujarat in public-private partnership mode. DFCCIL will provide only land for the zones while the development investment will have to be put in by partner companies.

Tagged as: development, properties, real estate, real estate developers, the-development

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Realtors Express Satisfaction on Tax Exemption in Housing Loan Segment

by Paul Joseph August 31, 2010 Uncategorized

Realty firms and consultants have expressed satisfaction on the proposal to retain income tax exemption on interest up to Rs 1.5 lakh a year on housing loan, but said the government needs to enhance the limit. “It is a very good thing that the government has retained the exemption. It will have a feel-good sentiment in the market,” said Anuj Puri, country head, Jones Lang LaSalle Meghraj (JLLM). He said the move will not dishearten the low and mid-income group from going ahead with their buying decisions. The first draft of Direct Tax Code (DTC) was silent on exemption on interest paid on housing loans. However, after adverse feedback from various quarter, the second draft proposed to retain this exemption, which is also incorporated in the bill. Commenting on the development, the country’s largest realty firm DLF Group executive director Rajeev Talwar said: “It is good that the exemption has been retained. However, the industry was expecting enhancement of the limit. “I think, in future the government has to consider increasing the limit to include more people in the bracket.”

Tagged as: country, delhi, development, government, the-government

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Consumer Affairs Ministry Gives Green Signal to 49% FDI in Multi-Brand Retail

by Paul Joseph August 30, 2010 Uncategorized

The Consumer Affairs Ministry has given the green signal to allow 49 per cent FDI in multi-brand retail. It has written a letter to this effect to the Commerce Ministry. India currently allows 100 per cent FDI in cash-and-carry operation and 51 per cent in single-brand retailing. Foreign investors are barred from investing in multi-brand retail. Additionally, the Ministry also sought that a model law be first put in place at the State-level to protect mom-and-pop stores from the impact of the ‘Big Boys’ of retail. “Multi-brand retail should be permitted with a cap of 49 per cent. A significant chunk of investments should be spent on back-end infrastructure, besides logistics and agro-processing,” the Consumer Affairs Ministry had said in response to the discussion paper floated by the Department of Industrial Policy and Promotion in June on allowing 100 per cent FDI in multi-brand retail. A senior government official said the Consumer Affairs Ministry has sought the enactment of the National Shopping Mall Regulation Act to regulate the fiscal and social aspects of the retail sector, besides allowing mom-and-pop stores to become franchises of multi-brand retailers. “This will help grow not just the business but also in setting up back-end infrastructure which is much needed for the evolution of the retail sector,” the official added. According to an ICRIER study, commissioned by the Commerce Ministry in 2007, “the retail business, in India, is estimated to grow at 13 per cent each year from $322 billion in 2006-07 to $590 billion in 2011-12. The unorganised retail sector is expected to grow at about 10 per cent a year from $309 billion 2006-07 to $496 billion in 2011-12.”

Tagged as: consumer, department, green, ministry, national, real estate india, real estate trends, retail market in india

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Hoteliers Planning to Increase Room Tariff by 10-15%

by Paul Joseph August 30, 2010 Uncategorized

In an attempt to cash in on the peak winter season and the improved economic scenario, “Hoteliers are planning to increase the average room rates (ARRs) by 10-15 per cent from September 2010 as they expect tourist traffic to improve,” says a report by domestic brokerage Angel Broking. Although, the report didn’t talk about their plans for the upcoming Commonwealth Games, it is expected that tariffs will increase from October 3-14 on the back of strong demand. Last two years proved dull for the hotel companies as they were forced to slash average room rates by 25-30 per cent due to terrorist attacks in the country that led to lower occupancy levels as people were apprehensive to travel, the report said. Hotel industry, which is inextricably linked to the tourism industry and its growth, increases rates before the crucial winter season every year. Reflecting a sign of improvement over last two seasons the hotel industry is inching closer to the benchmark 2008-09 levels in terms of booking volumes. Although, demand in the leisure travel segment may take longer time to revive but demand from the business segment, besides local tourists, is likely to push up occupancy rates. While occupancy rates are expected to rise to 70 per cent during the upcoming season (October 2010-March 2011), thereby providing opportunity to hoteliers to firm up their average room rates. On an average, the room tariff in a premium hotel in metros hovers around Rs 8,000-Rs 10,000 per day. But from September, you may have to pay in the range of Rs 9,200-Rs 11, 500. And going by the government estimates, in December, which is the peak tourist season, rates often go up to USD 500 (around Rs 23,300) in the five-star category hotels in Delhi. Commenting on the tariff hike Taj Group of Hotels Senior Vice-President (Sales and Marketing) Ajoy Misra had said:”The tariffs will go up marginally…Fortunately the hotels industry has seen occupancy going up in the last two quarters…With demand going up now,from September onwards there will be an upward revision in hotel charges.” The Indian hotel industry had witnessed a tremendous growth in 2008. Experts feel that this year, the hotel industry will make a comeback after the sluggish performance last year, driven by the boom in the overall economy and high growth in sectors like information technology, telecom, retail and real estate among others. Besides, rising stock market and new business opportunities are also attracting foreign investors and international corporate travellers to look for business opportunities in the country.

Tagged as: chennai, country, gurgaon, hotel, indian, peak, real estate developers

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Dlf projects in Gurgaon

by Paul Joseph August 28, 2010 Uncategorized

DLF Projects embrace outstanding DLF Homes, DLF Flats, DLF Apartments, DLF Offices and copious prepared DLF Buildings and Towers for housing over and above commercial rationales. DLF Projects were inaugurated six decades before with the DLF erections undertaking the housing colonies in Gurgaon real estate in the very stunning region. In the midst of the achievement of DLF erections and DLF Housing, at the moment DLF Projects embrace plumbs reminiscent of Hospitality, DLF Retail, DLF Malls, DLF Houses and DLF Homes. The conversation on DLF Projects warrants a reveal of DLF SEZ-Special Economic Zones where DLF cluster has Projects to proffer complete dealing solutions by offering exceptional infrastructure slouch roads, flyovers and so forth in order that enlargement in that region can be made easy. The bunch of DLF projects swell out in Gurgaon properties in various regions are describe here- DLF the Belaire- DLF Belaire is a burning project in Gurgaon real estate by DLF group. Construction plan of this residential project is for the uppermost seismic reflections for sector V, next to sector IV as inspired by the code, for enhanced protection. This project is Centrally Air conditioned among warm water supply with toilets and kitchen. DLF new town Heights- The further project by DLF group in Gurgaon location is DLF New Town Heights. It is also a residential project in the rank of luxury apartments to facilitate the Gurgaon investors. DLF park place- DLF park place is our top residential expansion plan in Gurgaon forcefully fetched by DLF builders. The Park Place contains the mixture of three and four bedroom dwelling apartments extend across a region of more than 30 acres, in the lap of Gurgaon property .

Tagged as: apartments, dlf, gurgaon, projects, residential projects, retail

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