commercial

USA Downgrading Impacts on Interest Rates

by Paul Joseph August 16, 2011 Uncategorized

Will the US rating downgrading from AAA to AA+ impact the real estate sector ? Will it have a long-term or an immediate impact? Who would get the hit, the residential or the commercial real estate sector? The good news is that the interest rates might come down in residential segment whereas commercial real estate sector will be hit and the reduction will take place in office space. This is the first time something like this had happened and it is difficult to predict the consequences. It has created uncertainty in the global market and extreme instability across asset classes. There could be some positives for emerging markets such as India , with the cut of prices of oil and other commodities, inflation too can be controlled adding to it interest rate should come down. Overall, impact on real estate in India could be positive. The money that pours in will be further used to further for residential development as we already have reasonable capacity for commercial development that still needs to be absorbed. However, in the long run, the commercial property sector take-up maybe an issue, from the demand side from IT/ITeS sector which are closely linked with the USA.

Tagged as: commercial, director, feeds, private-equity, property, property articles, property news, real estate, residential

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Commercial property in Noida

by Paul Joseph May 21, 2011 Uncategorized

Planning to grow your business – the commercial space is appearing up. The good information is that the commercial part in properties is upbeat and requirement for commercial office gap on sale or on rent is choosing up. The procedure of stabilization has at the present turned over the last few weeks. Company which were hesitant before and currently searching up to increase to possible location. Consistent with a study by a trustworthy source, absorption among 4-5 million square feet of commercial terra-firma was witnessed in the first quarter of 2009, which was upper than fourth quarter of 2008. Requirement for commercial Real Estate in Noida is sky kissing and this is still the top time to make profitable investments. Business connoisseurs see a phenomenal growth in the near future. With better infrastructure and world class facilities, commercial properties in Noida are the most sought-after. Noida, which is single among the few planned industrial townships in Asia, is famous for its commercial Real Estate optimism. Besides the business use, there is above 20 % of the whole accessible space, which is used as commercial region, and the development is awe-inspiring. The top factor about the commercial office point in Noida is that it is essentially extend across different sectors and not grouped in one particular region. Sector 1 to 6, 10, 16, 16A (Film City) 18, 51, 52 and 57 to 62 are the zones that boast of stylish markets, impressive malls and office space while numerous commercial avenues have too turn up in sector 21, 28, 29, and 37. After it, there are lots of other commercial regions which are famous for his commercial spaces and increase the importance of Noida real estate properties .

Tagged as: accent, business, colorful-grid, colorful-shading, commercial, importance, light-grid, medium-list, medium-shading, real estate

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SBI to End its Teaser Home Loan Scheme on April 30th 2011

by Paul Joseph April 26, 2011 Uncategorized

State Bank of India (SBI) will discontinue its teaser home loan schemes from the end of this month. The interest rates offered on its home loans will now be replaced by floating interest rate schemes, which are comparable with those offered by other commercial banks and housing finance companies. All loans from May 1 will attract an interest rate of 9.5-10.25 per cent, depending on the loan amount. Loans up to Rs 30 lakh will be available at 9.5 per cent (one percentage point above their base rate). Loans in the Rs 30-75 lakh bracket will be charged 9.75 per cent (125 basis points above the base rate). And, those above Rs 75 lakh will be charged 10.25 per cent (175 basis points above the base rate). However, these rates would move in line with the changes in the bank’s base rate that is reviewed every quarter. Earlier, the Reserve Bank of India had asked banks to stop giving teaser loan rates, since it believed such loans impacted the asset quality of the bank’s home loan portfolio. Teaser loans offered advances at a comparatively lower rate of interest for the first few years, after which rates were re-set at higher rates. SBI was the last one to discontinue such special loans. Under its SBI Easy Home Loan and SBI Advantage Home Loan products, one could get loans for 8-8.75 per cent in the first three years. After the third year, the rates would get reset at the then current floating rate structure. At 8.75 per cent, a 20-year-old loan on Rs 30 lakh would come to Rs 884 a lakh. At 9.5 per cent, you would now be paying Rs 932 a lakh. The good news is that for those who have already availed SBI’s teaser home loans and are still in the initial three years, the old rates remain applicable. The new rates will only apply to new applicants. Among the housing finance companies, LIC Housing Finance still offers a fixed interest rate of 9.9-10 per cent for the first five years and, thereafter, the then prevailing rates are applicable. But a quick calculation on apnaloan.com showed that the average rate for a 20-year period still works out in SBI’s favour. The average rate for SBI was 9.5 per cent, while that for LIC Housing was 10.5 per cent for the same period. SBI has also said there would be no prepayment penalty on home loans. The bank used to charge customers a two per cent penalty on prepaying the home loan. It will also introduce a graded processing fee, which it will increase according to the loan amount.

Tagged as: advantage-home, after-the-third, bank, commercial, home-loans, housing, india, loan, offered-on-its, real estate, sbi

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Mumbai Real Estate Sector can witness Oversupply in 2012-13: Jones Lang LaSalle

by Paul Joseph March 29, 2011 Uncategorized

Mumbai’s residential market is predicted to witness a glut in 2012-13 owing to steady new launches at a time when sales are extremely slow, according to real estate consultancy Jones Lang LaSalle. “The overall sentiments of the market and the consistent rate of new project launches in Mumbai give a clear indication of an impending oversupply by 2012. A lot of developers in the most severely affected locations are currently open to closing sales at lower rates,” said a note by JLL. It points out that bouncing back from the economic slowdown-induced realty slump in Mumbai in early 2009, the rates started rising swiftly until the end of 2010. During this period, a total of Rs 20,000 crore was pumped into land acquisition by developers in Mumbai, Delhi and Bangalore. Of this, Rs 12,000 crore was spent in Mumbai alone, leading to high land valuations and inflated rates. Also, due to the prolonged slump in the commercial realty market, developers focused on the residential market. “Over the past 12 to 14 months, developers from Mumbai and Delhi started focusing on their home markets and launching a substantial number of residential projects. Land was bought at expensive rates and if sales continue to remain dull for longer, there would be a 15-25 per correction,” said Sanjay Dutt, CEO (business) at JLL India. Dutt added that of the total recent residential sales about 65 per cent flats in Delhi and 35 per cent in Mumbai have gone to speculators. These flats are also expected to roll back into the market. According to JLL, real estate prices have already dipped in Parel, Lower Parel, Mahalaxmi, Bandra east, Andheri east, Goregaon east, Kurla and Mulund. The agency points out that after surpassing the peak values of 2008 by 20 per cent by way of correction, the property rates have now slumped back to peak 2008 levels.

Tagged as: commercial, consistent, lower-parel, mumbai, over-the-past, prolonged, property prices, pune, real estate, real estate developers, real estate trends, sanjay-dutt, the-residential, until-the-end

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Chennai Based True Value Homes to Develop 12 Projects at an Investment of Rs 800cr

by Paul Joseph March 23, 2011 Uncategorized

Chennai-based real estate developer, True Value Homes India Pvt Ltd (TVH), has announced plans to invest Rs 800 crore over the next three years to develop around 12 projects, majority of which will be in the residential segment. The investment would be from internal accruals and debt. The company has so far developed six million sq ft cumulatively in both commercial and residential space. It is now developing around five million sq ft with major share of the projects in Chennai. It has a few more projects in the pipeline — to develop around seven million sq ft — and which may go up according to the market condition in future, said N Ravichandran, chairman, TVH. “We have projects in Chennai, Coimbatore and Trichy. TVH is also looking at the fast growing Tier II cities for property development. We are planning a joint venture project in Madurai. Our current pipeline is to develop a total area of around 12 million sq ft on around 12 projects,” said Ravichandran. Besides, the company is looking at starting projects at Thiruvananthapuran and Kochi in Kerala in the medium segment. It also has plans to start a project in Bangalore. However, he refused to divulge details of projects stating it was in the pipeline. Of the total projects, 80-90 per cent would be residential, while the rest would be in the commercial space, he said. TVH recently announced the launch of its Rs 125-crore high-end green residential project, TAUS, at Old Mahabalipuram Road, near here, with 403 apartments. The company, which clocked a turnover of Rs 500 crore in the fiscal 2009-10, expects to end the current fiscal with Rs 650 crore.

Tagged as: bangalore, both-commercial, commercial, divulge-details, mahabalipuram, pipeline, real estate developers, real estate india, residential, the-commercial

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Larger Issues affecting Real Estate Ignored in Budget: Anuj Puri

by Paul Joseph March 1, 2011

Anuj Puri, chairman & country head, Jones Lang LaSalle India said it would seem that the Union Budget 2011 pointedly ignored the larger issues affecting the Indian real estate sector at this sensitive stage of revival and growth. Direct Implications: SEZs have been brought under the purview of MAT, which basically diminishes the benefits that SEZs offer for developers over other commercial real estate asset classes Raising the priority home loan limit from Rs 20-25 lakh is good news for the LIG segment, but will do nothing to ease the pain in the metropolitan cities where real estate prices and therefore demand for affordable housing is highest. Companies such as Unitech and Ansals, which are rolling out budget housing, will be benefited by increase of volumes. The 1 per cent interest subvention for home loans upto Rs 15 lakh from the previous limit of Rs. 10 lakh will come as a relief to home loan borrowers from the LIG segment. Indirect Impact and Implications: Enhancing personal tax exemption limit from Rs 160,000-180,000 is insignificant and insufficient to make a difference in real estate market terms. Allowing FDI in mutual funds would have been a blessing if the Government had been more proactive in allowing REMFs. Stricter measures against black money can potentially help bring about greater transparency and make the real estate sector more attractive for foreign investors. One awaits the detailed outlining and real-time implementation of these measures. The budget made no mention of FDI in retail, which is great disappointment since the retail sector seriously requires the benefit of foreign investments into multi-brand retailing. The budget remained silent on the pressing issue of extension of the STPI exemptions as well and Sec 80IA and 80IB, which are pertinent to the construction of residential projects of units sizes below 1200 sq. ft. This is a de-motivating factor which will further curtail the supply of affordable housing. Raising the corpus of the Rural Infrastructure Development Fund from Rs 16,000 crore to 18,000 crore would logically translate into the opening up the real estate potential of hinterland locations. However, similar provisions in the previous budget had no discernible effect. Much depends on how seriously actual implementation is taken. The budget’s stated intention to create 150 lakh metric tons of food storage capacity can potentially catalyze the formation of more retail warehousing. This would potentially encourage the construction of more modern warehousing facilities, and benefit the retail supply chain by reducing the cost of business operations via increased shelf life of perishable products, reduced wastage and increased margins.

Tagged as: commercial, delhi, government, gurgaon, mumbai, real, real estate india

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Trump to Develop 60 Storey Super Luxury ‘Condo’ in South Mumbai

by Paul Joseph February 7, 2011 Uncategorized

US billionaire real-estate developer Donald Trump is finally making a serious move to transform the skyline of India’s financial capital, Mumbai. Trump is now planning to develop a super luxury 60-storey tall “condo” in south Mumbai. The Trump Tower is expected to be launched next month and is believed to have 45 flats across 60 floors, most of which will have one flat for every floor. Trump, who has joined with Mumbai developer Rohan Lifescapes for his first venture in the country, plans to invest $500 million to change the face of half an acre plot. It could well be the most expensive residential buildings in Mumbai. “We are the developers to the building and Trump will be lending his brand. We’ve seen some great interest in the pre launch and it is promising. We will watch the market carefully and close in on a price,” said Harresh Mehta, chairman and MD of Rohan Lifescapes. With the US housing market in a extended period of slump, India is one of the big focus areas for Donald Trump. And promoters say the interest during the soft launch has been fairly high despite the sky high prices for the 60-floor apartments being planned for which high rise clearance is yet to be received. Sources say that the starting price for flats at the tower would be Rs 40 crore and goes up as high as Rs 50 crore. In comparison, other premium Mumbai apartments like Indiabulls, Lodha are all selling apartments under Rs 10 crore. Those who can afford that luxury can expect to get possession in the next three years. Rohan is involved in premium residential buildings in South Mumbai and is also involved in the commercial development on Ruby Mills. It will now have to create a building where specifications are stringent – from the construction materials used to the number of fittings, and the age of staff members. Both Trump and Trump Junior are coming to Mumbai to launch the building next month. Looks like Mumbai realty is ready to have luxury redefined.

Tagged as: commercial, construction, india, mumbai, pune, real estate developers, real estate india

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Hyderabad – The afterward lucrative center

by Paul Joseph December 22, 2010 Uncategorized

The explosion in the Hyderabad property sector has still not been talented to gratify the increasing requirement from business gazing for ready-to-occupy properties. IT and ITes are ongoing to force the market. IT professionals are vying to acquire an apartment in Hyderabad. Furthermore, Hyderabad is the commercial marketplace which is driving the residential real estate piece in the city. Hyderabad property builders experience that, in subsequently few years BPOs and call centers, software offices and back offices of financial institutions will dwell in the utmost liberty. Real estate consultants anticipate the uphill trend in prices to persist, flush as the State Government frees up terra firma in dissimilar parts of the municipality and the periphery. Terra firma accessibility will assist the conception of commercial office liberty. In Jubilli Hills, inner business district of Hyderabad, investment prices of plot choice from Rs 80,000 to 2 lakh per sq ft. Retail real estate in CBDs is just about Rs 3,500- Rs 10,000 per sq ft. Multiplex are the up-to-the-minute and forthcoming technique of commercial tricks ranges from Rs 10,000 per sq ft and goes more than. The payment value in this vicinity is Rs 30,000-60,000 per month which is elevated in comparison to other commercial regions. Countless new money-making projects are on the cards by big countrywide developers. Raheja group has obtained 100 acres in Gundla, Pochampalli, Delhi based DLF has obtained 3 million sq ft terra firma for marketable behavior, Godrej Properties will be conception an IT Park on 34 acres of earth at Pattancheru, Parsvanath has a mall-cum- multiplex, and a hotel plan forthcoming in the city, Ramkey cluster is venturing into marketable expansion in the city.

Tagged as: city, commercial, hyderabad, investment, property, state

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BPEP in India

by Paul Joseph December 6, 2010 Uncategorized

Baring Private Equity Partners (BPEP), the global PE major, is planning its future investments in Indian real estate in the near future. For a long time now, BPEP India was looking at investing from its $650 million Baring India Private Equity Fund III. Previously, the firm has invested in information technology, healthcare and financial services sectors from its first two funds. BPEP has been investing in India since 1998. Baring will look at residential and commercial properties in top seven cities. The foray comes at a time consolidation is taking place in the real estate PE space. Global PE firm Blackstone has taken over the management of BoA-Merril Lynch’s Asian real estate business. Apart from consolidation, overseas property investors such as Goldman Sachs, Landas Banki and Carval have pulled out from the Indian realty market, while others such as Morgan Stanley, AIG and Wachovia have become dormant.

Tagged as: commercial, india, indian, management, morgan-stanley, private-equity, residential

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Gurgaon Property best for Investmenst in Reality

by Paul Joseph December 1, 2010 Uncategorized

Mumbai and Gurgaon are the hotspots of property investments in India. As we all knows now there days Gurgaon is the commercial hub of India as Mumbai. It is one of the most developed cities in the country which contribute really a very big had in the economy growth of the country. Gurgaon has seen some of the major upswings in its real estate market. The commercial as well as residential properties price of city is very high due to very high demand on a regular basis. It has been analyzed that the value of Gurgaon Property is likely to increase by 15-20% in the next few years. Since 2004-05, many luxurious apartments and villas and residential projects has been launched by the top builders of India like DLF, Emaar MGF, Unitech with all modern and International amenities and services are being offered to the customers. There real estate developers has given new edge to the leaving style to the Indian residencies. Few luxurious projects are MGF Vilas, DLF’s Aralias, Aralias II, Unitech Larma Lakelands, Unitech exquisite, Unitech Nirwan country, DLF’s Magnolia, and Ambience Caitriona. There are also some middle and high-end budget projects planned at Sohna Road, Old Gurgaon Road, MG Road, and Golf Course Road. The projects built around the golf course area are constructed as high-end apartments and vilas. These accommodations are expected to start from the price range of USD one million dollars. Apart from the high rated projects mentioned above, Gurgaon Real Estate also offers an array of options to the middle class segment residing here. Some of the mid budgeted projects include DLF’s ‘New Town Heights’ and Vatika’s ‘Vatika India Next’. The accommodations of these projects will be priced under the range of middle class community. If you want to invest in property and real estate then the best way would be to invest in Gurgaon properties. The real estate in Gurgaon is on a rise and investing in the Gurgaon real estate can be a very good investing. People can get the information about Gurgaon properties online and can get great deals related to the Gurgaon real estate. With the increasing development in Gurgaon many of the multinational companies are opening their offices in Gurgaon. This has further lead to boom in Gurgaon real estate and the prices for the Gurgaon properties are increasing tremendously. Investing in real estate in Gurgaon can help you increase your capital. You can further rent the property to the MNC’s who prefer renting the property.

Tagged as: commercial, country, india, indian, price, real estate, unitech

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