developers

Property Prices Set to Fly Rise in Two Cities

by Paul Joseph August 4, 2011 Uncategorized

The lands in Noida and Greater Noida will make houses costlier in both cities. Out of 54 villages in Noida, 40 have been agitating for plots for years. So, more land is still required. There will be no land left for allotment to developers. Demand for land is ever increasing; land prices are bound to go up considerably. Apart from 10,000 odd farmers who are seeking developed land plots, about 4500 farmers in 11 villages of Noida, whose land was acquired before 1997 have also launched an agitation. The authority says in order to meet the demand the option of raising floor area ratio that allows construction of bulkier buildings. But this alone can’t solve the crisis. The land rates have to go up. In Greater Noida, the situation is different. Here, two court decisions have quashed forcible acquisition of about 750 hectares of land in two villages. Other villages have also moved court. The process of out-of-court settlement is on. If the farmers are paid more, land prices automatically will go up. If there is no out-of-court settlement, land has to be reacquired under the state’s new acquisition policy, which leaves less saleable land with the authority.

Tagged as: cities, construction, court, developers, estate, feeds, greater-noida, investment

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Realty Firm Phoenix Mills Plans to Emerge as the largest mall developer of India

by Paul Joseph July 14, 2011

Realty firm Phoenix Mills Ltd plans to buy underperforming malls and turn them around to attempt becoming the largest mall developer in India. “Acquisition is going to be a route for us. We are under-leveraged right now. We will look at under performing assets that are leaders in the market that they are in and buy them,” Phoenix Mills managing director Atul Ruia, told Mint. “Raising a war chest will not be a worry,” said Ruia, without specifying the size of acquisitions and source of funds. Phoenix operates 1.5 million sq ft of retail space, which includes 0.8 million sq ft of the High Street Phoenix mall at Lower Parel in Mumbai and malls in smaller cities with other developers, such as Entertainment World Developers Ltd and Big Apple Real Estate. Phoenix plans to emerge as one of the largest mall developers in the next 12 months, Ruia added.

Tagged as: apple-real, delhi, developers, largest, look-at-under, lower-parel, mall-developers, phoenix-mills, property prices, real estate, retail market in india, smaller-cities, street

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Increase in Interest Rates May Result in 10-15% Hike in Property Prices

by Paul Joseph June 17, 2011

Housing prices may rise by 5-10 per cent in the next 3-6 months as the cost of funds for developers is expected to increase following the Reserve Bank of India’s decision to raise key policy rates by 25 basis points. “Property prices are bound to go up in next 3-6 months by 5-10 per cent across the country,” Confederation of Real Estate Developers’ Associations of India (CREDAI) Chairman Pradeep Jain told PTI.Jain, who is also the Chairman of Parsvnath Developers , said the hike in repo and reverse repo rates would result in an increase in interest rates for builders and the same would be passed on to home buyers. He, however, said demand would not be hit despite the expected rise in interest rates on home loans. “People will continue to buy knowing that housing prices would go up further,” he said. Instead of demand, Jain said supply would be affected, as the increase in interest rates would impact the liquidity situation of small developers. Asked about impact of the hike in repo and reverse repo rates on the realty sector, DLF Group Executive Director Rajeev Talwar said, “The constant increase in interest rates over the last one year would definitely have an impact”, and suggested that the government initiate reforms to boost the supply of housing. The Reserve Bank, for the tenth time since March, 2010, raised the repo rate by 25 basis points to 7.5 per cent and the reverse repo rate by a similar margin to 6.5 per cent today. Echoing similar views, Credai President Lalit Kumar Jain said, “Any increase in the rate of interest will be counter- productive and my fear is that it will give rise to inflation instead of curbing it.” “… The cost of funding from the developers’ point of view would also shoot up. This will be passed on to the customer, who is already under stress,” Jain, who heads Mumbai-based Kumar Urban Development Ltd , said. Raheja Developers Chairman and Managing Director Naveen Raheja said: “As the cost of money goes up, the cost of construction and production will also go up. This will lead to further inflationary pressures.” The need is to increase supply so that demand pressures can be eased and consequently, the prices are curtailed, he added.

Tagged as: bangalore, chairman, cost, developers, director-rajeev, hike, kumar-urban, mumbai, property prices, raised-the-repo, real estate, real estate india, reserve, urban

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ASK’s Chairman Forms New Real Estate Company ‘Pashmina Developers’

by Paul Joseph May 25, 2011

Asit Koticha, chairman of financial services firm ASK Investment Holdings Pvt Ltd, has floated a real estate company, Pashmina Developers, with an undisclosed investment from his personal funds.The Mumbai-headquartered venture aims to develop properties across India and has acquired land in Bangalore, Pune and Mumbai. Koticha will be Pashmina’s chief investor. ASK Investment, named after Koticha and brother Sameer, has a diversified portfolio that includes a wealth management arm and a realty-focused private equity fund that is raising Rs 1,000 crore for investing in residential developments, reports Mint. “The big challenge for new entrants is to get approvals for projects and clean land titles,” said Koticha. Pashmina has an immediate project pipeline of nearly 3.8 million sq ft and expects its first four projects to earn a total revenue of Rs 2,500 crore in three years. Koticha admitted Pashmina’s land bank was created over a few years with a plan to enter into the real estate business either on his own or with other developers. Eventually, he decided to pursue it on his own. Pashmina has a robust pipeline that includes a host of redevelopment projects in central Mumbai’s Dadar area, a second residential project in Bangalore and a 100-acre land parcel in Pune for developing a township. So far, Pashmina’s land acquisitions are self-funded. “Going forward, we will raise money for construction finance,” said Rajesh Turakhia, Pashmina‘s chief executive. Turakhia has been involved with Pashmina since before its inception. The company’s first project, Pashmina Waterfront, is a 16-acre residential development with eight 32-storey towers to be built in phases along Old Madras Road, an arterial road in Bangalore. It will be launched this year. Bangalore was the natural choice to launch Pashmina’s maiden venture, said Koticha. “Bangalore is in the radar for any developer… it’s a cleaner market in terms of computerized land titles and smoother approvals,” he said.

Tagged as: bangalore, chennai, developers, estate-business, investment, mumbai, pashmina, property prices, rajesh-turakhia, real estate

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Akshay Tritiya May add Some Sparkle to Realty action

by Paul Joseph May 6, 2011

The real estate market , over the last three years, has taught everyone a lesson. Unlike gold, which witnesses record sales during Akshay Tritiya, the property market has different dynamics, wherein the stakes are much higher. It is often a question of investing one’s hardearned , lifetime savings. Does this mean that Akshay Tritiya has lost its significance, for the real estate market? Analysts in the property market do not think so. Most of them believe that the volatile property market, may have prompted customers into becoming over-cautious . Nevertheless, during this Akshay Tritiya, the market is stirring with new realty projects and a higher ratio of buyers . After all, realty buying is always favoured by the concept mahurats and Akshay Tritiya is one of the most favoured days, which Indians look forward to when it comes to buying real estate. Interestingly, Akshay Tritiya holds more significance for first-time property buyers, who are in no hurry to invest in the property market and prefer to wait for the right moment. Narmada More is one such lady, who has postponed her house booking for the last five months and will give the down payment only on the day of Akshay Tritiya. “Since the day is considered prosperous, it is of sentimental importance to me. I want to buy my house with the blessing of God,” she says. Developers too agree that while people no longer tend to wait for auspicious days like Akshay Tritiya, it still adds a sparkle to the realty action. “While people look for an auspicious day to book property, I feel that today’s generation will not let a particular day be decisive, in their quest to have a property. Having said that, people do tend to pre-pone or postpone their purchase a bit, if an auspicious day is around,” explains Atul Modak, head of Kohinoor City Project. Does it make any difference from the developers’ business standpoint, as well? “Yes, it does,” adds Modak. “You will find many project launches on Akshay Tritiya. The day may not affect real estate market as such but there certainly is an upward movement,” he says.

Tagged as: akshay, auspicious-days, developers, house, property, property prices, real estate, real estate developers, real estate trends, retail market in india, special economic zones, the-property

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Piramal Realty Ltd Plans 5 Residential Projects in Mumbai

by Paul Joseph May 4, 2011

Piramal Group chairman Ajay Piramal’s newest venture, Piramal Realty Ltd, will kick off with five residential projects in Mumbai at an estimated investment of about Rs. 1,500 crore. The company will develop about 30 million sq. ft through land acquisitions funded from its own sources, without any borrowing, managing director Khushru Jijina said. “We are looking at various segments for development, which include premium residences, premium office spaces, second homes, and low-cost housing as well as the redevelopment space in Mumbai,” he said. The developer is evaluating 20 projects across Mumbai, Pune and Nashik. Land procurement is at an advanced stage for five large residential projects in Mumbai that are expected to be launched in the next year or so, Jijina said. Senior property consultants said the biggest asset of the start-up is its financial strength. Part of the Rs. 17,000 crore that was raised through the sale of Piramal Healthcare Ltd’s branded generics business to Abbott Laboratories would be used to create new businesses, including property development, Ajay Piramal had said in an interview last year. “This growing trend of corporates such as Piramals, Godrej and Tatas venturing into real estate will increase the transparency and credibility in the sector because they will build organizations, put systems in place and also look at the ethical and legal parameters,” said Anuj Puri, chairman and country head, Jones Lang LaSalle India, a property advisory. “Piramal Realty, as a company, is also coming in with a lot of financial strength and great brand recall as additional advantages,” he said. In the low-cost category, Piramal Realty would look at both the Rs. 10 lakh as well as the Rs. 20-25 lakh segments, Jijina said. The firm is eyeing a number of big ticket land deals, including the property of Mafatlal Mills in Byculla, Mumbai. The estimated price tag of this acquisition alone would be more than Rs. 700 crore. The firm will also launch joint ventures with strategic partners or joint development deals typically with landowners. Piramal Realty has also bought a majority stake in a large commercial project in Kurla, a Mumbai suburb, this year after Indiareit Fund Advisors Pvt. Ltd, a fund backed by Ajay Piramal, exited with a return of Rs. 400 crore. Jijina said they bought the stake through “a competitive bidding process where other developers also participated”. Designed by architect Norman Foster, the project would now be co-developed by Mumbai-based Neptune Developers Ltd and Piramal Realty. “We have worked with the Ajay Piramal Group for last five years through Indiareit, which invested both at our entity and project level,” said Nayan Bheda, managing director, Neptune Developers.

Tagged as: acquisition, developers, housing-as-well, india, mumbai, norman-foster, piramal, property prices, real estate, real estate india, real estate trends, redevelopment

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MAT to Affect 1 lakh crore SEZ proposals in Gujarat

by Paul Joseph April 27, 2011

The Government of India’s (GoI) decision to impose a minimum alternative tax (MAT) of 18.5 per cent on income of units operating within special economic zones (SEZs) is all set to adversely affect Gujarat’s 50-odd SEZ proposals at various stages of implementation. Well-placed industries department sources say that with MAT in place, proposals made in two Vibrant Gujarat investment summits, in 2009 and 2011, worth around Rs 1.25 lakh crore, would be adversely affected. “The Gujarat government has drawn the attention of the GoI’s Export Promotion Council for export oriented units (EOUs) and SEZs that MAT, which has been imposed alongside dividend distribution tax (DDT), will stunt SEZs’ growth in particular and exports in general not just in Gujarat but India,” said an official. The matter is particularly serious as, already, Gujarat’s dozen-odd SEZs account for nearly 50 per cent of all exports being made from 130 SEZs put into operation all over India. “Out of nearly Rs 3 lakh crore of exports from SEZs in the country in 2010-11, Gujarat’s SEZs accounted for Rs 1.5 lakh crore,” the official said, though conceding, “Of this, most of the export is from the Reliance Industries Ltd’s SEZ in Jamnagar.” Dahej SEZ, being developed by the Gujarat Industrial Development Corporation (GIDC), is being cited as a case in point, suggesting how GoI’s adverse policies may affect investment. Most of the allocable land – 1,175 hectares (ha) out of 1,300 ha – has already been sold out, and an investment worth Rs 7,500 crore has been made in Dahej SEZ. Five units are operational, while another 15 are likely to become operational next year. “Last year, Rs 436 crore worth of exports took place from Dahej SEZ, and if all 60 proposals pending for investment will come in, exports would reach Rs 76,000 crore. But with MAT and DDT in force, it is difficult to say how many units will come in,” the official said, adding, “Already, 24 units have postponed their decision to put in units. We have served them notice that in case they do not begin construction within the stipulated time, land allocated to them would be taken back.” In fact, there is danger that in case SEZ proposals are not implemented, as desired, the land allocated to the developers -around 16,500 hectares (ha) – may become a haven for speculative business for realtors. “There are 15-odd IT SEZ proposals in Gujarat. Of these, just two have been implemented. As for most others, they are under realtors’ plans. They appear not so keen as of today, and are waiting for an opportune moment to kick-start project,” the official said, adding, “The case is not very different for other type of SEZs.”

Tagged as: being-developed, council, developers, development, gujarat, india, not-implemented, property prices, real estate india, reliance, stipulated, the-official, units-operating

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TATA Housing Development enters into Redevelopment of Old Buildings, Mumbai

by Paul Joseph April 16, 2011 Uncategorized

TATA Housing Development, a subsidiary of Tata Group is entering into its home market in Mumbai by taking up project of redeveloping of old building complexes. The developer has started operations pan India which has been restricted to building townships and residential complexes adjoining the Greater Mumbai. Brotin Banerjee, Managing Director & CEO, TATA Housing Development said, “we expect to start doing the premium housing project of redevelopment of the societies in the western suburbs of Mumbai such as Andheri and Bandra. However, in such redevelopment projects societies normally they call for bids, which make it quite competitive. This was told to Financial Chronicle. The company hopes that its reputation for ethical behavior would get preference even if its bid is lower than others as these societies have had bad experience when dealt with lesser known realtors.” Unlike certain other developers we cannot cut corners or engage in illegal activities as these would violate the TATA code of conduct”, so it would be safer for the societies to go with developers who don’t bend rules and give a better quality housing product said Banerjee. “These projects would help us ensure that premium development brings in around 60 per cent of our revenues this year even though they will constitute only around 40 per cent of the number of units being constructed,” said Banerjee. The company currently has 45-50 million square feet of area under development. This is split across value and premium housing respectively and includes around four to five million square feet of commercial and office development. The company expects the first such development projects to be signed up over the next 6-9 months. “Under the Smart Value Homes and New Haven brands itself we have 15,000 homes under construction,” he added. By the end of this fiscal year the company hopes to have operations in Kolkata, Mumbai, Pune, Ahmedabad, Khandala, Chennai, Hyderabad, Bangalore, Chandigarh and the National Capital region.

Tagged as: brotin-banerjee, developers, financial, greater, housing, housing-product, india, mumbai, national, smart, tata, under-the-smart

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Bangalore property in its prices trends

by Paul Joseph March 3, 2011 Uncategorized

Bangalore the historic name Bengaluru is the original IT destination of India and still the best bet for any investor contemplating investments in the IT sector. Its burgeoning contribution to the IT sector has made the city synonymous to the industry itself. Moreover, Bangalore has been the destination for many ITES and BPO organizations in the last few years. This has created a void in the demand and supply for commercial as well as residential properties in Bangalore . In the commercial piece, office breaks have been the most in insist as companies are moreover shifting base to Bangalore real estate properties or developing their business. The developers are also catering to the investor’s stipulate in developing a bloodthirsty market for high-tech office spaces. Yet the retail section has shown marvelous development for the period of the past few years. The ‘garden city’ or Silicon Valley as definitely succeeded in impressing the concentration of numerous multinational projects and Non Resident Indians (NRIs). By way of extra foreign investment pouring in the city and Indian real estate developers opposing to carve a place in the worldwide market, there is an augment in requirement for international up to date offices in the speedy prosperous Bangalore. Such a massive development itself converses for increasing real estate prices while the developers target the metropolis ensuring the allocation of superiority breaks at reasonable prices. In connection with commercial gaps, the demand for housing units is as well shooting up at a speedy rate in Bangalore. The recent prices structure of Bangalore properties are- Location Residential Commercial M. G Road 2800 – 4000 4000 – 9000 Cunnningham Road 2800 – 5500 4500 – 5000 Jayanagar 2500 – 3400 3000 – 4500 Basavangudi 2100 – 3200 3000 – 4000 Koramangala 1800 – 2800 2500 – 4500 Ulsoor 1800 – 3000 2000 – 3000 Langford Road 1600 – 2800 2000 – 3000

Tagged as: bangalore, developers, indian, indian real estate, industry, langford-road, properties in bangalore, real estate prices, retail, retail section, silicon-valley

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Gurgaon Real Estate Market after 2009 Slump

by Paul Joseph December 29, 2010 Uncategorized

Gurgaon being located in the Delhi Border, has been the target of real estate investors. many Indian cities like Gurgaon witnessed industrial and corporate growth, eventually leading to development of vast acres of land and property construction. Since the city has now turned out to be one of the leading IT hubs of India, the Gurgaon property has eventually emerged in the form of a prominent industry. Presently, Gurgaon property market is recovering fast from the global economic down turn. The prices are soaring and in case you are planning to buy property in Gurgaon, the right time for you to invest is probably now. The commercial shops/space suffered quite low during the economic slow down. But the year 2010 reports that the demand for commercial space in the Indian cities is rising with an increase in the cost price of properties and rentals. The realty experts say that the market is ready to boom, After recession is the reason for the most of the created demand for commercials in the market. the demand of the cheap properties is rising in gurgaon, has diverted the focus of the developers to launch affordable properties in Gurgaon. This demand further implicates the creation of new residential and commercial properties in Gurgaon to be launched at a rate that can be afforded by majority population.

Tagged as: delhi, developers, gurgaon, new-residential, property-market

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