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Now, DLF to split into 3 organisational units

2010-01-11T02:57:00.000-08:00

After deciding to split its parent firm into functional verticals, DLF Ltd has now identified an overall new organisational structure to house them and further sharpen their functioning.The country’s largest real estate firm will now be broadly divided into three units—Devco, Rentco and the holding firm dealing with corporate functions, according to an internal circular issued by DLF vice-chairman Rajiv Singh.

As reported by FE on December 31, the earlier identified verticals like Gurgaon, Super Metros and Rest of India will be part of Devco, which will incorporate all real estate ventures of the company, while Rentco will take charge of all its rent-yielding assets like offices and malls. Going forward, any rent-yielding asset developed by any of the verticals under Devco will be shifted to Rentco.The corporate functions vertical will include key jobs like finance, legal, HR, corporate affairs, treasury/investor relations and V-C’s office, including risk management. A new quasi entity will be created called DLF Holdings, which will aggregate the company’s investments in areas such as hotels, clubs, convention centres, DLF Pramerica Life Insurance and asset management, DLF Metro JV, DLF Golf Resorts and PVR.

The corporate team will focus more on framing policies and providing guidance and oversight to ensure uniformity in implementation, the circular has stated. “While the last 12 months have been extremely trying for both DLF and the entire economy, the company has emerged stronger from the crisis and now well-positioned to take advantage of the revival in growth. In this context, we are simplifying our organisation to ensure sharper focus on execution with greater emphasis on robust systems, processes and risk management,” Singh has said while outlining the restructuring.

Why Gurgaon is so hot property market in India

2009-12-21T01:22:00.000-08:00

Gurgaon is simply the best and the foremost choice for individuals for the requirement of plots,flats,villas space in Gurgaon.Gurgaon that has positively emerged as a BPO hub in north India houses some impressive and major industrial houses on Indian origin as well as top notch MNCs. There are numerous impressive companies that have earned Gurgaon the rank of a progressive back office of the world. A lengthy list of companies, such as Coca Cola, Pepsi, IBM, Genpact, Microsoft, Dupont, Ernst & Young, Hewlett Packard, Nokia, TCS, Ranbaxy, Bank of America, Google, American Express, etc are established here. All these companies have impressive office spaces in Gurgaon.

Gurgaon enjoys a close and integrated proximity with New Delhi. And due to this prime factor, it has emerged as the hub of IT and other new-age business activities. It is mere 15 kms from New Delhi's International Airport thus making the option of commercial activities more convenient and easy for employees and employers. This reason also calls for its preference for being a nucleus of office and residentail space.

The office and residentail spaces in Gurgaon make this city a hot spot for several MNCs,individuals and professionals. There are prevalent all healthy options of a progressive and hi-tech business as well as commercial environment. There are also fully-furnished offices and corporate spaces that offer wonderful infrastructural facilities to corporate houses. So comprehensive is the office space solutions in Gurgaon that multi-national companies can avail all required facities such as security, interiors, exteriors, data cabling and Internet connectivity, utilities, internal housekeeping, and other mandatory provisions.

Property dealers in India - Buy Property in India

2009-12-10T03:34:00.000-08:00

Property dealers in India help people buy or sell their property for a profit. For the services delivered they charge a fixed percentage of commission that varies from place to place. When anyone plans to buy tangible assets, whether a house or a plot for him, the first think that comes to his mind is where to go and whom to approach. Then, he runs to a trustworthy and highly professional property dealer right away. Dealers in India help individuals to choose among the best available options based upon the budget or location of the property. As people spend maximum time in their houses and offices, they spend some quality time in understanding the pros and cons of the locality or the deal before they decide to buy anything. Truly, for a person a house is the most precious entity one has got and under any situation does not want to make any wrong decision. Generally, property dealers in India are quite accessible and anyone who is longing to buy or sell his assets can easily approach them.

Over the years, rates and locality have been two primary factors that either motivate or de-motivate a person's will to buy or sell his assets or not. Before coming to any decision look around and check out all the available options. There are multiple locations 'just' suitable for your house or office space that are brought and sold daily. In order to get hold of best available dealings and the availability of best property spots one must contact professional dealers.

Generally, property dealers in India maintain the list of available plots and property items they are dealing with. Dealers usually have contacts with other real estate agents throughout India, this way they ensure that you get your dream property quickly.

Property in Gurgaon - Latest Property in India

2009-12-04T03:38:00.000-08:00

The property in gurgaon has made it a commercial downtown and Gurgaon has emerged itself lord of real-estate deals.The property here has become a fountainhead of capitalist investments.The cardinal attraction of the property in gurgaon is its low prices that are one-third per square meter as compared to the property in Other cities of India.

property in gurgaon offers the perfect pedestal for the markets of Central Asia, Middle East, Africa, Asian Subcontinent, and East Mediterranean. The economy of India is flourishing as ever with the rising property revenues. The national economy turns out to be a boastful add-on for the property in gurgaon.

The salient features that the property offers are expanding its market substantially. The demand has amplified enormously. Gurgaon has emerged out as a commercial hub where all dealers want to invest considering the lucrative possibilities. It is becoming difficult to locate property in the key areas due to the tremendous demand. With this rapid bloom, it is anticipated that the property will experience a further increment in its monetary value.

The major property areas in Gurgaon have highlighted themselves as the ‘drawing card’ for which everyone has a quest. With the expansion of Gurgaon as a commercial platform, it is attracting more and more expatriates. Hence the demand is outlasting the supply and there is a stage of imperativeness being developed that causes an acclivity in the monetary value.

Gurgaon has a lot more to dispense than just property. The egression of the commercial environment has brought with it a new era of lifestyle and glamour. The efflorescence of malls, hotels have given a new dimension to leisure and entertainment. Gurgaon has turned out to be the ideal destination for all shopping-lovers. It offers an avid and luxurious environment.

Gurgaon Real Estate in India

2009-12-01T01:07:00.000-08:00

A bubbling city in the state of Haryana, Gurgaon has witnessed tremendous growth in several areas over the last couple of decades. Boasting of a superb location and high quality infrastructure, it is now a leading center of manufacturing, outsourcing and other industries.
Expectedly, the real estate sector in Gurgaon has also experienced a significant growth with the mushrooming of residential complexes, modern shopping malls etc to cater to the needs of the cash-rich professionals. The advent of this corporate culture has created a demand for space because of which both residential and commercial real estate sectors in Gurgaon are witnessing a rapid growth.

As far as commercial space is concerned, there is a competition among companies to grab the prime spots in the city. This increasing demand has put the real estate players in a tough situation. The names of some of the companies with presence in Gurgaon will give you an idea about the competitive demand for space - Pepsi, Coca Cola, HP, Nokia, Genpact, Genesys Telecommunications, Ranbaxy, and many others.

The growth of commercial real estate sector, in turn, leads to modern infrastructure and amenities. The leading players in this field include top developers like DLF, Unitech, Vatika, Vipul to name a few. Prices of property in Gurgaon have shown a rising trend in the recent past and are likely to continue that way even if there is a temporary setback because of the global economic meltdown and its impact on India.

And, interestingly, while the major companies are keen on buying fully furnished property to establish their bases in the city, smaller organizations are more interested in renting corporate spaces. This has pushed rates of rent in and around Gurgaon quite considerably.The apartments and residential complexes in Gurgaon are located among other places in the golf course area, sector 37, sector 103. These localities are not too far away from the central areas but are free from the hustle and bustle of the city offering a peaceful ambience to live in. The upmarket apartments and condominiums are self sufficient having grocery stores and other basic facilities within the premises itself.The commercial rental properties in Gurgaon are now available with services such as security, data wiring, Internet connectivity, electrical provisions and various other utilities. Real estate developers are now concentrating on areas of the city including Old Gurgaon road, Gurgaon Sohna Road, and MG Road. These properties are being sold off to interested parties, or being leased or rented.If one prefers to purchase real estate in Gurgaon through the Internet, there is no brokerage cost involved in the transaction. Online selection and purchase is advantageous also because it offers buyers a number of options to choose from depending on its specific needs and allocated budgets. While making a choice, it is better to make the comparison on the basis of its location in or outside the city of Gurgaon Property . The distance and commuting time are among the other factors that should be taken into consideration.

Source:http://www.ezinearticles.com/?Gurgaon-Real-Estate-in-India&id=2591245

Gurgaon Real Estate With Property Dalal

2009-11-23T20:47:00.000-08:00

Property dalal are here to guide sellers, buyers, and renters through any real estate transaction.Property Dalal aims to develop a relationship which guarantees our buyers access to upgraded information about new properties and ensures to give our sellers the power and exposure to a huge network of buyers from other firms in Gurgaon,Delhi/NCR, a crucial element in any Real Estate market condition.

Property Dalal's main goal is to use all our resources to help our clientele to enjoy the best deal in terms of residential and commercial properties. Property Dalal make sure that we deal with our clientele personally and understand their exact requirements. Moreover, with our valuable services and professionalism we have created a wide range of clientele base.

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Bumpy road ahead for realty sector

2009-11-04T01:19:00.000-08:00

The bear hug over the realty sector continued as the sector ended the trading last week as one of the top losers with a loss of 15.38 percent. In the week ended on October 30, 2009, the realty sector traded in the range of 4502.63 and 3827.14 points.

Among those which lead the fall were Indiabulls Real Estate with 18.30 percent, DLF dropped by 16.24 percent, Unitech was down by 12.78 percent, while Omaxe lost 14.41 percent and HDIL closed 14.30 percent lower.The RBI's recent move to curb lending to real estate sector has also helped investors to be away from investing in the realty stocks. Ashish Jagnani of Citigroup said, "RBI's recent policy measure to raise provisioning norms from 0.4 percent to one percent for commercial real estate loans has signaled caution and an uptick in borrowing costs. This has already dampened sentiment, and could act as an overhang on stocks. While the sector is down an average around six percent over last 15 days, with most stocks still trading close to NAVs (net asset values).

We believe new IPOs (initial public offering) will offer much more choice - hence see near-term downside/underperformance risks for existing listed players."The RBI move has come at a time when things were slowly falling in place for the big developers. A fund manager with a mutual fund said, 'We believe access to capital will remain a big challenge to these companies. But, since most of the big players have raised funds through QIP placements, the next issue would be that of liquidity. We prefer a wait and watch approach."

The recovery in the real estate sector is likely to continue at uniform pace for a few more quarters before it translates into more robust growth in revenues and profits. In the last two quarters, real estate companies have noticed a recovery, as prices recovered and buyers started coming back. Analysts are convinced that the market has bottomed out and that prices will steadily improve. But changes in the product mix to more affordable homes and stricter funding norms may lead to some bumps on the road to recovery.

Source:http://www.siliconindia.com

How to buy a home first time

2009-10-20T01:01:00.000-07:00

Buying a home is not a easy task as there are various frauds in this real estate market so must know the steps required in buying a home and this will become more important when you are the first time buyer.Buying a home requires a series of steps that optimally occur in a certain order. Deviating from the normal order or skipping steps works sometimes, but understanding the logic of the normal process is a useful context for any purchase transaction.

you are already clear as to what you are looking for, a search of the available listings within your price range in various cities will quickly familiarize you with the tradeoffs. In one place you will get a larger house with desirable views, in another the better schools but the houses will be smaller, and so forth. You may want to find a group of houses that look promising and drive by these houses or go to open houses. After a few weekends of driving around, most people find that their preferences have become clear.

Purchase Gurgaon Property - A Good Decision For All

2009-09-22T04:23:00.000-07:00

The Real estate in Gurgaon city going to touch the height of sky due to shifting of so many people from other parts of the country and off course from Delhi too, to this city. Gurgaon is preferring specially by the IT people cause so many MNCs are situated here and the employees who are working in those MNCs wants to reside near to their office. Gurgaon is a perfect place for those who like to live in a city having less amount of rush and good modernity.

Taking decision to purchase Gurgaon property could be a good decision for any individual. Its infrastructure always attracts the people to stay here. Gurgaon is specially preferred by the working IT professional who are working in MNCs situated at Gurgaon. This city also contains lots of good residential Flats, Bungalows available for sale. One can also establish his office by selecting a nice area which will be best suited for his business.

Metro work has been about to complete in Gurgaon it will give better traveling facilities to Gurgaon people by using which they can reach to their destinations in few minutes rather than wasting their lots of hour by getting stuck in Traffic jams. Metro will not only make their life easy, but will also save lots of their time to which they can utilize with their families and friends.

Real estate transferred billions from private to public investors

2009-08-27T23:13:00.000-07:00

The final lesson of the last real estate cycle is in: Private real estate investment managers drove real estate values to dizzying heights and as those private buyers offered more than properties were worth, the publicly traded REITs sold them. The result was "an enormous transfer of wealth from private to public investors," Brad Case, NAREIT's vice president for research and industry information, wrote. Now that values have fallen 25% to 39%, REITs are in a position to buy back those same properties at deeply discounted prices.

Source:http://www.smartbrief.com/news/nareit/storyDetails.jsp?issueid=330C7296-A708-4275-B736-EB7CF6186F19

Realtors rebuild hopes on rising home sales

2009-08-10T05:39:00.000-07:00

After a long hiatus, home sales are finally back on track. Sales of major real estate developers have more than trebled in the June quarter compared to the preceding three months, amid growing expectations that the good times will continue to roll.

Consider this: DLF, the country’s largest real estate developer by market value, has sold 2,500 apartments in the first quarter of the current fiscal, compared to nearly 600 in the quarter ended March 2009. In the preceding quarter, DLF had sold just about 120 apartments.Unitech, the country’s second largest property developer, went a step further and sold 5,000 units in the first quarter, compared to 300 to 400 apartments in the preceding quarter.

Delhi-based Parsvnath Developers did 100-odd transactions against 25 to 30 in the previous quarters, and Omaxe reported sales of 700 units, compared to 200 in the same period.“After a few difficult quarters last fiscal, we have seen a fairly good first quarter of the current fiscal. The economy on the whole has been showing signs of recovery, and activity in real estate has picked up,’’ DLF Vice-Chairman Rajiv Singh said.

Almost all of them are convinced that the future looks bright. While DLF’s Singh aid he expected the market to improve, a Unitech spokesperson said the market would pick up in the second quarter, though demand would be mainly for affordable products.

“It is a good time to bargain-pick now,” said Ravi Ramu, director of Bangalore-based Puravankara Projects.

That the first-quarter sales are no flash in the pan is reflected in the fact that developers have lined up around 60 million square feet of new launches this year, more than double last fiscal’s bookings.DLF plans to launch 8 to 9 million sq ft of city centre projects in Chennai, Kochi, Delhi and Gurgaon and 5 to 8 million sq ft of mid-income housing projects in the National Capital Region and southern cities. Unitech has launched buildings covering 15 million sq ft since April and plans to launch an additional 15 million by March 2010.

Apart from lower interest rates and affordable housing, the reduction in the number of fence-sitters has helped in a major way. ICICI Bank Chief Financial Officer N S Kannan said buyers had been postponing their purchase decisions in the hope that prices would fall further.

Source:http://www.business-standard.com/india/news/realtors-rebuild-hopesrising-home-sales/366216/

Jaypee results shine in the cesspool of realty downturn

2009-08-03T23:58:00.000-07:00

The Jaypee group has closed the quarter with Rs 211686 lakh of total income for the quarter ended June 30, 2009. Net profit for the period was Rs 49118 lakh.The company has as usual beaten expectations. It is expected it will do better in times to come.

There was a time when your dream house was being offered with a free Mercedes car or a gleaming beamer, or even a few 22 carat gold coins as freebies. In some cases, even a small spare as a wee bit apartment was being thrown into the deal for customers looking at premium bungalows located in the lap of nature.

The real estate sector was totally unprepared when the slowdown hit them as every single participant of this industry was supremely confident of it growing all the time and that too more than 200 per cent every month. A few newspapers such as FINANCIAL TIMES had predicted that the real estate industry is likely to crash but nobody was listening.

Therefore, when the slowdown happened nobody had prepared for it. Some of the innovations were really cheesy. Some builders had begun shifting from the premium housing sector and were launching projects in the more affordable range for middleclass buyers. Were these the signs that realty prices will never rise like rockets in the future?

Source:http://economictimes.indiatimes.com/Features/Financial-Times/Jaypee-results-shine-in-the-cesspool-of-realty-downturn/articleshow/4847340.cms

Is it good time to buy or sell in real estate mkt now?

2009-07-31T03:40:00.000-07:00

Is it a good time to buy or sell in the real estate market right now? Chances are that as a prospective buyer or a property owner, you may be Land as investment facing a serious dilemma.Industry players feel that while it may be a good decision to buy in certain locations, a sell off needs to be given a few more months till the market picks up completely.

So which are the best places to buy in right now? According to global real estate consultancy Cushman & Wakefield (C&W), in Delhi NCR, it is Noida, Greater Noida Expressway and areas in Gurgaon along the Golf Course Extension Road. In Mumbai, central Mumbai and western suburbs such as Bandra, Kalina and JVLR are good bets. New emerging destinations in Bangalore such as Sarjapur Road, North and central Bangalore, apart from a few projects within the city can be considered.

Aditi Vijayakar, executive director, residential services India, C&W, says that this is a good time to buy a property for self use as prices have corrected considerably over their peak in 2007-08. “Buyers at this time can take advantage of lucrative interest rates on home loans. However, for investors entering the market, this time should be evaluated keeping the various arbitrage options that they can take advantage of in the current scenario. As far as selling is concerned, this is not a sellers market. The decision should be taken when the owner is confident of achieving the expected appreciation of the capital value of that property.”

While developers such as Vipul, Realtech, Raheja Developers and SVP Group say the market is picking up and one should look at buying, they don’t sound equally enthusiastic about selling off one’s property at this time.

Source:http://economictimes.indiatimes.com/Features/The-Sunday-ET/Is-it-good-time-to-buy-or-sell-in-real-estate-mkt-now/articleshow/4820837.cms

Real estate developers in India pushing up prices

2009-07-13T02:55:00.000-07:00

Developers in India have stopped offering discounts on properties and in some cases are even increasing prices as demand rises.Rising sales are also prompting some developers to return to the luxury end of the real estate market which had stalled in the economic downturn.'Prices are likely to inch upwards in the coming months in some markets,' said Kumar Gera, chairman of the Confederation of Real Estate Developer's Association of India.But he added that even an increase in prices will still leave many developments cheaper than they were at the peak of the market a year ago. He estimated that the property crash saw prices fall 25 to 30% but proposed increases in coming months would be around 10 to 15%.

The prices increases vary. Unitech has increased prices marginally, by some 2% in its Gurgaon projects but Mumbai based developer Lodha Group has upped prices by 10 to 15%. A Lodha spokesman confirmed that prices had gone up in luxury projects launched in March. 'We have marginally increased prices every month for these projects since their launch. But the market is in a good spot and the response is still good,' said director Abhisheck Lodha.Bangalore-based firm Brigade Enterprises cut its prices by 15% in April but has now increased them by 3 to 5% and said that it plans to continue doing so at regular intervals. 'We are hoping that in one year's time, prices will be back to the peak levels of 2007 to 2008,' said chairman and managing director M.R. Jaishanker.

However, discounts through brokers have not yet disappeared from the market. Developers have increased the commission offered to brokers from 3% maximum to 5 to 6%. Brokers in turn are offering a discount of 1.5 to 2% on the price of property to buyers.

Source:http://www.propertywire.com/news/asia/real-estate-india-200907083303.html

Finding lucrative property deals in Gurgaon

2009-06-18T03:58:00.000-07:00

The real estate industry has been prospering in India and some of the main areas that are experiencing this boom include the cities like Bangalore, Hyderabad and Gurgaon. The construction of properties and apartments has been on the rise in Gurgaon and there are various factors related to the same. Some of the major reasons for the boom in real estate in Gurgaon residential properties and commercial properties are the rise of software and IT companies in the area. It has been seen that the properties in Gurgaon have also reached new zeniths.

There has been a lot happening here in terms of constructions and sky scrapers. Basically experimentation with new constructions along with an increase of condominium constructions is increasing in this area. New buildings reflect new architectural styles and experiments. It has been seen that the construction of modern homes in Gurgaon has been due to the people living here and since they are working with multinational companies, but are not from the city they want modern yet compact homes.

Most people here arrive from different parts of the country and for them living in condominiums are more convenient than living in stand alone apartments. The benefits here include security and luxuries, which are provided at these condominiums along with a feeling of community. All of these properties have been in high demand for a long time, since the advent of the multinational companies here. The property dealers are well aware of these facts and hence had invested in land a very long time back. These property dealers cater to the needs and requirements of the people living here.

They aim to provide apartments and commercial properties that are loaded with modern amenities and other related features. Both residential and commercial properties in Gurgaon are listed on websites, and they also provide for the costs of the same. If you are looking for homes, then you can opt for properties in Gurgaon through benefits like loans and EMI’s. Most banks are willing to offer loans at low rates of interest against jobs and pay checks. Also the tough competition amongst builders and large numbers of upcoming constructions, have made it easier to find homes and commercial properties here.

Potential buyers look for modern and spacious apartments which provide for security and basic amenities like swimming pool. Apart from this proximity to the central areas along with greenery and other related factors are sought. However it had not been imagined that real estate in Gurgaon would conquer such soaring heights. This city is also known as the Electronic City of Delhi or NCR. Gurgaon has become the hot spot for real estate agents and this has reached unprecedented heights. The real estate boom is being chased by many Gurgaon property dealers. This electronic city is offering the property investors and potential buyers with plenty of scope for expansion along with plenty of space for making there dream homes come true. The real estate development in Gurgaon is expected to surpass all expectations.

source:http://www.articlesbase.com/real-estate-articles/finding-lucrative-property-deals-in-gurgaon-937816.html

Most Updated Information about gurgaon

2009-06-12T02:20:00.001-07:00

find latest and most updated information about gurgaon.

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Get more information about Gurgaon the Corpporate city of india

Gurgaon's commercial significance is growing at an unprecedented rate and the same is discernable from a look at the list of hospitals, banks, BPOs, KPOs, etc. in the city. Commercial and other establishments like hospitals, health centres, dental clinics, etc. find Gurgaon a very promising hub because of the growing urbanization of the place. Others like beauty clinics, banks, BPOs, KPOs, shopping malls, chemists, etc. open their new units in the newly developing areas of the city. With the ubiquitous presence of these establishments in the prime locations of Gurgaon, city life has become much more convenient and comfortable than ever before.

Companies take advantage of falling real estate costs

2009-06-08T04:05:00.001-07:00

Adversity opens up opportunities. The adage is now ringing trye for the real estate sector. With lower rentals and lower costs of buying office space, many companies have shifted offices to take advantage of the lower costs and to gear up for future expansion.

Companies such as Swan Telecom-Etisalat and Tecpro Systems have leased and bought office space at much lower costs, in the range of 25-50%. A number of other examples too exist. According to industry sources in the know, Inox Cinemas in Mumbai has moved their corporate office from Tardeo to Andheri, Symphony Services in Chennai has moved from the central business district (CBD) to the Outer Ring Road and Standard Chartered Bank has consolidated its operations and moved to newer locations in Bangalore, Delhi and Mumbai.

Various locations in the country have seen a rental and capital value correction. Office space can be bought or rented for at least 25-30% lower value across the top 8 cities of India. According to a recent Cushman & Wakefield report some of the top micro markets in the country have seen a drastic rental correction. In Mumbai, Worli is down 38%, Lower Parel is down 39% and Andheri is down 33%; In the National Capital Region, Gurgaon is down 26%, Noida is down 20% and Jasola is down 24%.

For new telecom players like Swan Telecom, Datacom, Shyam Sistema and Aircel who are looking for new office
space, the slowdown has come as a boon. The Swan-Etisalat combine has leased 30,000 sq ft in Malad West in Mumbai. The deal, say sources, has been fixed at Rs 80 per sq ft.The rental in the area has come down 30% in 6 months. In another deal, the same telecom operator has leased 45,000 sq ft in Vatika Business Park on Sohna Road, Gurgaon for Rs 40-45 per sq ft. The rental here was close to Rs 85 per sq ft a year back. Similarly, Aircel has signed up for 60,000 sq ft of space in DLF Cybercity in Gurgaon for Rs 50-55 per sq ft. The rentals here have dipped considerably from Rs 100-110 per sq ft a year ago.

Companies in varied fields are taking advantage of the situation. For example, Tecpro Systems based in Gurgaon recently bought 4,000 sq ft of space in Mumbai’s Malad area at 25% lower cost than rates about 6-8 months back. Even in Gurgaon, where the company is based, it is looking at adding another 10,00 sq ft for expansion. “Looking at the real estate market, this is just the right time to buy,” says Amul Gabrani, managing director of the Rs 700-crore Tecpro Systems, which is in the business of material handling for power plants, steel and cement companies.

Source:http://economictimes.indiatimes.com/Features/The-Sunday-ET/Markets/Companies-take-advantage-of-falling-real-estate-costs/articleshow/4625895.cms

In Current market scenario where should you invest

2009-06-02T21:20:00.000-07:00

As economic slowdown has brought greater rationality to real estate market and also in the prices of real estate. With prices correcting in overheated pockets of metros and tier II cities, residential real estate has become more affordable and the scales have tilted in buyers’ favour.

While an investment in residential property may yield lower returns than an investment in commercial property, it is safer, especially if the property is chosen wisely. For city-based small investors, studio apartments or 1-BHK properties near known demand drivers such as IT hubs, large manufacturing units, and educational institutions offer good return so these are some very good options in investment in real estate or property market in current market scenario.

Smaller-format housing continues to have steady demand, especially in metros where company staffers and students seek cost-effective housing on rent. Rental accrual on such properties becomes a steady source of income, while the capital value invariably appreciates over time. The returns from commercial real estate are higher, but so is the risk. Such properties are also more expensive.Let us now turn to a city-wise survey of residential areas that offer good investment potential even in today’s bleak market scenario. While other areas in these cities are headed for correction, these locations will hold their own and might even offer positive returns.

source:http://www.expressestates.in/full_story.php?content_id=93830

Is Gurgaon property really booming again?

2009-05-25T00:02:00.000-07:00

I also love the way it tells me what’s going on in the Gurgaon property market. The current consensus is that the boom is back.Wouldn’t the other 20% be sold, too? Those in any doubt about the utter lack of a property boom in Gurgaon need only look in the windows of the local Gurgaon Real estate agents: there appear to be hundreds of one, two and three- bedroom flats available.

www.propertydalal.com includes in its survey only the asking prices of houses that have been put on its website that month (not the sale prices, however) and ignores all those put on in previous months that may not have been sold yet, or sold at a much-reduced price.The survey therefore tells us nothing about what prices are really like, merely about what sellers and agents would like them to be like. These, as anyone who has ever tried to sell a house will know, are entirely different numbers.

So how can we know what is really happening with house prices? One way might be to look at a new index out from the property-search website hotgurgaon.com It is calculated using the asking prices of “the majority of the properties for sale on the open market in the Gurgaon at any one time” (about 600,000 houses and flats), regardless of when they first went up for sale.This means that not only does it take into account more houses than any other survey, but it reflects any falls in the asking prices of houses that are not selling.

Finally, the average house is still unaffordable to those on average incomes: the house price-to-income ratio is about five times in most areas of the city.This just isn’t the kind of environment in which house prices rise. I think they are falling and I think they are likely to keep doing so.

Awards Galore for TATA Housing at the Asia Pacific Property Awards, 2009

2009-05-17T21:51:00.000-07:00

TATA Housing, one of the leading real estate companies in the country, with a vision to provide quality life spaces in India, today received the highest level of achievement in the property and real estate industry in Asia Pacific, as two of its projects were declared one of the best in the category at the CNBC Asia Pacific Property Awards 2009. The awards are the Asia Pacific edition of the International Property Awards, the industry's most prestigious award programme globally.

The International Property Awards is a world-renowned mark of excellence and celebrates the highest levels of achievement by companies operating in all sectors of the property and real estate industry. These awards are judged by a highly experienced team of professionals who cover the whole range of property disciplines.

Xylem, the company's Leed Gold Certified IT Park in Bengaluru was successful in winning an award for the Best Office Development in the Commercial category and Raisina Residency in Gurgaon built on the theme of Art and Culture, was successful in winning an award for Best Development Marketing in Residential category.

source:http://www.prweb.com/releases/2009/05/prweb2427714.htm

Tata NANO Homes - A Dream of homes Come True

2009-05-11T23:06:00.001-07:00

India's giant Tata conglomerate, whose subsidiary Tata Motors just successfully launched the $2,000 Nano, the world's cheapest car, is ready for an encore: ultra-cheap homes.

Tata Housing Development, the real estate arm of the giant Tata group, is poised to start building apartment-style homes priced from $7,800 to $13,400 in a township being planned at Bhoisar, an industrial suburb located 31 miles (50 km) north of Mumbai. Like the Nano, which was designed to bring some middle-class comforts to the masses, the homes are geared for the hundreds of millions of Indians making less than $5,000 a year who are unable to afford decent dwellings. "We have realized that there is an opportunity at the bottom of the pyramid," says Brotin Banerjee, CEO of Tata Housing Development.

The homes will be built in three sizes, all extremely cramped by Western standards: 283 sq. ft. (one room, including kitchen plus a bathroom), 360 sq. ft. (ditto), and a 465-sq.-ft. model with a tiny bedroom. In addition to the modest proportions, Tata is relying on economies of scale and careful sourcing of materials to keep costs low. The Mumbai project, for instance, will get its steel from group company Tata Steel, which has plant at nearby Tarapore. Land-acquisition costs will be minimized by giving the original landowner a percentage of each project's returns. The homes will occupy cement buildings no more than two stories high, because construction costs go up as buildings get taller. There will be eight to 12 homes per building.

Source:http://www.time.com/time/world/article/0,8599,1896894,00.html

New launches trigger demand in realty sector

2009-05-04T04:59:00.000-07:00

After experiencing a sharp slowdown during the third and fourth quarter of 2008, the real estate sector has shown some recovery in the first quarter of 2009 ended March 31. If current trends continue to absorbFor the period from January to March 2009 of any reference, a report prepared by the PropEquity proposed research has been a surge in absorption in most cities.
A recent study conducted across PropEquity Mumbai, Bangalore, Chennai, Hyderabad, Gurgaon, and the absorption of the resistance and shows that the high calling of new housing in the first quarter of 2009 in Mumbai, Chennai and Gurgaon.

Study attributes the success rate of absorption of the correct price and a decline in unit volumes and the development and demonstration in those cities. However, Bangalore and Hyderabad, which has seen fewer new launches during this period, the decrease in absorption.
The real estate sector witnessed one of the worst kind of slowdown in demand due to a rise in interest rates in January to March 2008, nearly 2 percentage points to 12%. At the same time, the prices prevailing in the housing in most cities, making it extremely difficult for most buyers. Worsening situation in global financial markets after getting affected due to the failure of banks and brokerage houses in the United States and Europe.

This also affects the Indian real estate market very badly and decreased demand. According to the report, although from October to December 2008 and has seen the bottom to accommodate the 1113 units in Mumbai, and the first quarter of 2009 saw the release of more than 14,478 housing units and an apartment to accommodate the 5746 units. On the other hand, during the October to December 2008, launched 3096 units, the report said. This means, in the first quarter of 2009, 40% of the apartments were sold started, which is that the sales are good.
Similarly, in Gurgaon, during the period from January to March 2009, the sale of 815 units in 4490 fired units. On the other hand, in the October to December quarter 2008, only 587 units were sold in the period from 3708 units launched. Therefore, both the absorption and release the figure showed a sign of recovery.

DLF Icon Apartment – DLF Resale Property – DLF Buy Sell Rent Property Gurgaon

2009-04-29T01:36:00.001-07:00

BUY SELL RENT PROPERTY GURGAON / LEASE PROPERTY GURGAON / DLF GURGAON PROPERTY / DLF ICON / GURGAON APARTMENTS / GURGAON REAL ESTATE / DLF RESALE APARTMENTS GURGAON / DLF RESEDENTIAL APARTMENTS GURGAON / DLF
DLF ICONDLF new Project Phase 5 Gurgaon. It is a Group Housing, Residential project in Phase 5 Gurgaon, India. The Icon will have exclusive access cards for the residents for entry into the entrance lobby at ground level and the lift lobby in the basement, along with CCTV surveillance in the basement and main entrance lobby for the total security of the residents. The complex will be provided with a power back up of 10 KVA.
LOCATION: Delhi & NCR » Gurgaon DLF Phase - 5
FEATURES: Floors: White Mosaic/Terrazo, Toilets: ceramic tiles, Kitchen & Utility: purely durable floor tiles, Walls: oil bound distemper, Doors & Windows: aluminum, Electrical: switch/sockets, copper wiring Under Construction.
AREA:Type---------------------------Size(Sq.Ft.)4 B/R + SQT--------------------2575 sq. Ft.
DLF DEVELOPER:DLF Projects include world class DLF Homes, DLF Apartments, DLF Flats, DLF Offices and fully equipped DLF Buildings and Towers for residential as well as commercial purposes. DLF Projects were commenced six decades ago with the DLF Constructions undertaking the residential colonies in Gurgaon. DLF Buildings and DLF Projects in Gurgaon include DLF Offices like the DLF Square, DLF Homes and Housing, DLF Apartments and DLF Hotels.
source:http://www.bignews.biz/

Announcement Booking Open-Ramprastha City Artium Gurgaon

2009-04-24T01:47:00.000-07:00

Best Residential Option in Gurgaon

Ramprastha City, Ramprastha City Gurgaon, Ramprastha City Residential, Ramprastha Edge Tower Sector 37 D Gurgaon, Ramprastha Edge Towers, Ramprastha Edge Towers Apartment, Ramprastha New Project Gurgaon, Ramprastha at sector -37D gurgaon,Ramprastha city at gurgaon, Ramprastha City Gurgaon - Ramprastha Edge Towers Gurgaon, Ramprastha City Sector 37D Gurgaon, ramprastha in gurgaon.

Ramprastha Promoters and Developers, a name synonymous with quality building is proud to present its latest pride and joy…Fine living starts with a great home. And that is exactly what we bring to you at The Edge Towers. Placed in sector 37-D of Gurgaon, the Edge Towers are strategically located at Ramprastha City. They are positioned on the brink of the Metro route, and 3 minutes from the highway, making it all the more convenient. A conclave of high-rises placed in a lush landscape with a trendy clubhouse, picturesque swimming pool, smart tennis courts and a lavish golf course truly make it the isle of the blessed. What’s more! Swanky shopping malls, hospital facilities, reputed educational institutes and recreation parks, give it a perfect setting for your family’s well-being and vitality. Available in 2,& 3 bedroom, each apartment is furnished with all the required amenities and ergonomics. A technically sound design and quality, ensure that it’s not only beautiful but secure as well.

Ramprastha The Atrium Gurgaon

Ramprastha launches its new residential project THE ATRIUM in Ramprastha City. It is one of its kind Integrated Township spread over an area of 450 acres in Gurgaon. Ramprastha The Atrium with all apartments facing green area and complete with ultra modern amenities such as schools, hotels, hospital, multiplex and lots more to enjoy. This project offers 2 and 3 BHK luxurious apartments of 965 and 1185 Sq. ft. respectively.

Ramprastha The Atrium Location:

RamprasthaAtrium is located in sector 37D, Gurgaon. It is 0 KM from Dwarka Expressway and Metro Station and adjacent to Reliance SEZ. Only 15 minute drive from Airport.
Ramprastha The Atrium Amenities:
Schools, hospitals, shopping malls, Multiplex, Golf Club (Golf Swing Training), Post office and temples, Swimming Pool, Gym, kids play area, sports facility.
Ramprastha The Atrium Options:
source: FPR

Type-----------Size (INR)----------Amount (INR)
2BR-2T---------965-----------25 Lakhs
3BR-3T---------1185----------30 Lakhs

Few takers for realty projects on the block

2009-04-21T05:44:00.000-07:00

The cash strapped real estate sector is desperately seeking funds to script a revival. And what could be a better way out for the companies than to put their assets on the block. Buyers, however, are still not coming forward. SundayET’s findings reveal that an estimated Rs 4,500 cr to Rs 5,000 cr worth upcoming projects by leading developers around the country are on the block - but takers are very few. Industry sources say that while top names in the businesshave been able to sell off some assets, a lot more of those still need to be offloaded.
People close to deals say that while there were a large number of developers entering the special economic zones (SEZ) segment during the boom time, now there is almost a reverse wave to get out. Says Rajeev Talwar executive director, DLF Group, “The market over the last six to eight months have witnessed a major slowdown as far as the cash flow is concerned. This has resulted in many developers trying to raise cash by putting few of the assets on the block. What will sell in these conditions are projects which are priced attractively as there is some room for the buyer.” DLF, India’s largest real estate developer, has requested the ministry of commerce & industry for de-notification of four of its nine SEZs for IT and IT-enabled service projects.
Source:http://economictimes.indiatimes.com/Few-takers-for-realty-projects-on-the-block/articleshow/4420505.cms

Real Estate Gurgaon india,dlf gurgaon india

2009-04-13T05:12:00.000-07:00

Our channel checks indicate that sales volumes are still down 80-90% y-o-y and property prices continue to drop. Sharp slowdown in the economy and in the IT/ITES sector will maintain weakness in sales volumes and property prices.Checks have also confirmed that sales volumes continue to be very low; this has maintained pressure on cash flows.Increase in cancellations (as per reports) has increased the pressure on the already stretched cash flows for all three real estate companies. Recent reports have indicated a sharp rise in cancellations for properties of DLF in Gurgaon.The report suggests that the buyers of properties at both locations are insisting on cancellations of their bookings and refund of their booking amounts.

To raise cash, most companies (including Unitech and DLF) are selling completed / partially constructed hotel properties for the past few months.However, there has been very limited success in selling these properties. Unitech has been able to sell only one out of six hotel properties it intended to sell in the past few months.We reiterate SELL on Unitech (target Rs22 downside of 44%) and DLF (target Rs80, downside of 62%), and downgrade HDIL to SELL (target Rs67, downside of 42%).

Our downgrade on HDIL is supported by the company’s weak fundamentals due to deteriorating balance sheet (rising debt equity ratio), increasing pressure on cash flows due to weak sales coupled with falling TDR demand, and probability of higher FSI sales that could drive down NAV.

source:http://www.livemint.com/2009/04/13101342/Sector-Update-Real-Estate.html

Future of Real Estate Market in Gurgaon

2009-04-08T01:53:00.000-07:00

According to the real estate experts, the prospect of getting superior returns in the U.S combined with less asset price distort the risk-reward balance in opposition to upcoming realty markets of Gurgaon. Thus, there is a high probability of foreign investors avoiding the Gurgaon real estate market.

According to another expert retardation of general growth and low interest rates have served as a double blow to the real estate developers even as the alleged risk-reward ratio for Gurgaon is going downhill. For instance, the pension funds in US have the opportunity to invest in Gurgaon or other markets. They opt for other option because of better level of available information. According to another expert in real estate, there is no developmental liability in other markets as these are existing properties. Further, the absence of political or currency risk and the prospect of approximately 18-20% returns in the US make it very attractive for investment and, they are not particularly eyeing for additional 5% they may gain coming to Gurgaon.Considering the elevated risk that the investors have to take in Gurgaon, this minor extra return seems to be rather inadequate.

This might be an early phase but, for investments, it may result in investments decisions against Indian market. Investors have plenty of doubts and asking many questions and deals are getting cancelled. Term-sheets are deferred. Citi Venture and AIG backed out of a proposed investment of Rs 1500 crore to be made in Mumbai-based real estate developer Akruti City in April. There is a hold-up or delay because of slow decision-making by the PE majors. According to the experts, this is happening because PE majors are not sure. However, developers are commencing to recognize the actuality and coming with better terms and condition. This is clear from the financing terms that they are accommodating nowadays with the growing demand of economy.

If a developer and a PE major invested in a ratio of 75:25, the profit-sharing was partial to promoters by the ratio of 60:40 beyond a specific interest rate of 15-16%. This has now become almost 20-22%. The coming year could lead to more confusion, as inflation would elevate the rates of interest rates. Deficit financing for oil subsidy would also place the economy in much strain. And thus real estate in Gurgaon is all set for a hard time. This indicates an end of the days of extraordinary profits, and real estate developers would be forced to price their products affordably. Further, the passion to purchase lands would slow down and consequently Gurgaon Property Prices would be corrected. The aggressive land purchasers, having a tendency to acquire lands in large scale will definitely be in a restrained mode for inadequacy of fund. A rectification in this regard will be good option.

Gurgaon Must Visit City of india

2009-04-01T02:59:00.000-07:00

If you are planning to visit to india in near future then gurgaon is the best option for you to visit as it is very close to delhi(15 min drive) besides having beautiful shopping malls and has various cheap budget hotel in gurgaon compare to delhi as it is a very good and you can say satallite city to delhi.

Cheap residential apartments in delhi,gurgaon and noida

2009-03-27T03:33:00.000-07:00

Unitech, others such as Omaxe, Raheja, Tata Housing and Ansal API are planning new projects in the suburbs of satellite towns or smaller cities to target the bottom segment, to generate more cash.New Delhi-based Unitech and the Raheja group are planning to build single-bedroom homes in and around Gurgaon. While Unitech is busy conceptualising the project, Raheja has announced plans to construct 10,000 flats in the Rs 5 lakh range at Gurgaon, the satellite town bordering New Delhi. Tata Housing Development, too, is working out the feasibility of a sub-Rs 5 lakh housing project.
Unitech plans to launch mid-segment residential projects in the Rs 5-10 lakh range in metros like Chennai and Kolkata, and suburban cities like Gurgaon, over the next few months.Another developer, Omaxe, is planning a sub-Rs 4-10 lakh project at Peetampur and the Dewas industrial area near Indore to target workers. In the first phase, to be launched in the next 10 days, Omaxe would launch 5,000 flats and in the second phase, 5,000 more flats, the company said.
“The inspiration to develop smaller and cheaper apartments comes from the Nano, which is eliciting a tremendous response. I am sure our project will see a similar response, given the fact that we will come up with such low-cost apartments near metros,” said Nagaraju.“Many industries around Udyog Vihar and Manesar are looking for houses for their workers. Our demand survey has shown tremendous interest among such firms to provide houses for their employees in the vicinity of the workplace. The new project will take care of their interest,” said Navin M Raheja, managing director, Raheja Developers.
“Nothing is selling today, as people do not have money. When both large and mid-income projects are not selling, developers have to come up with smaller projects, though they cannot earn the 30-50 per cent margins that they used to make earlier,” said Akshaya Kumar, chief executive of Park Lane Property Advisors.Developers are battling slowing sales since the beginning of 2008. Higher property prices, which more than doubled in metro cities during 2004-07, and high interest rates have made property buyers stay away from new purchases. Despite a nearly 30 per cent fall in property prices and a cut in loan rates from 11 per cent to 8.5 per cent in recent months, property sales have fallen 70 per cent from their peak last year.
DLF, Unitech, Parsvnath and all other major developers have entered the Rs 20-40 lakh segment to generate liquidity, even as their top line fell as much as 80 per cent in the last quarter.But property experts believe sub-Rs 5 lakh projects have few takers, even in smaller cities like Indore. “Even a good wage earner wants to stay in a comfortable home, which costs between Rs 8 lakh and Rs 10 lakh in smaller cities and Rs 18 lakh and Rs 20 lakh in the metros,” said a top executive of a New Delhi-based realty firm who did not wish to be quoted.
“At such as a price (sub Rs 5 lakh), either the houses have to be small or not in a good location. Prices should at least be in the range of Rs 10-15 lakh (per flat) for a project to make profit,” said Kumar of Park Lane AdvisorsBut developers are still launching projects to generate cash. Ansal API has launched 4,000 apartments in Jaipur, Jodhpur, Agra and Meerut. “We have priced these apartments in the range of Rs 5-10 lakh per unit, keeping in mind customers who are ready to buy small apartments. The size of a one-bedroom apartment is 500-550 sq ft, while a two-bedroom apartment has an area of 850-900 sq ft,” said a company spokesperson. The company will launch another 6,000 apartments in the coming months.

Realty prices in metros set to ease further

2009-02-27T01:21:00.000-08:00

‘If one searches hard enough it is possible to find God, but not a nice flat in Mumbai”, goes a popular saying and over the years this has come to be true not just about Mumbai, but about all the big cities in India.

However, of late, property prices have fallen in the metros in double figures, as developers are finally being forced to pull them down.During the real estate boom in India, among all the metros, it was Mumbai, which saw the steepest appreciation in property prices. In many cases, prices rose beyond affordable limits and, to most people, buying a house seemed almost unimaginable.However, today, despite the city witnessing a correction of some 16 to 36 per cent, the same people are expecting real estate prices to fall by another 30 per cent.

Goldman Sachs believes that property prices across Mumbai suburbs would need to fall by about 30 per cent for affordability to improve. “We believe most price cuts are in the range of 16 to 26 per cent with the exception of two or three developers, who have cut prices by more than 30 per cent. In our opinion, the move is in the right direction but the extent of price cuts may not be enough to tempt buyers,” said a recent Goldman Sachs research report.

Aniket Khanzode, a Mumbai-based merchant navy officer, sums up the ground reality.“I have been looking for a house for quite a while. It’s not as if only builders are quoting more. I saw a 1BHK house in Goregaon, recently. This place was located far away from the metro yet the owner was demanding around Rs 35 lakh. I was willing to buy it for Rs 27-28 lakh, but the owner refused to budge,” he said. Khanzode is willing to wait for the price to drop further, something, he feels is inevitable, given today’s market scenario.

This story finds an echo in other metros. Recently, real estate major DLF led a wave of residential price correction in Bangalore, reportedly slashing rates for a project on Bannerghatta Road by 32 per cent. Since then, property rates have fallen from Rs 2,775 per sq ft to Rs 1,850 per sq ft.

Bangalore-based Sobha Developers had announced an 8 per cent reduction in prices across all its projects. Another Bangalore developer, Golden Gate Properties, is reportedly selling condominiums at its Golden Grand project at 75 per cent of the property value, with an option to pay the balance over a period of five years.In the north, most property watchers say that prices in Gurgaon, Noida and NCR would fall further. “With builders now taking a serious look at pricing, there is sure to be marginal drop by the end of June,” said Harsha, a Gurgaon-based property broker. He added that in many areas prices have dropped as low as they were four years ago.ICICI Bank CEO Chanda Kochar has reportedly said that a 15 to 20 per cent correction in property prices is still needed.

Source:http://www.mydigitalfc.com/real-estate/realty-prices-metros-set-ease-further-041

DLF Secures 20 Billion Rupee Loans

2009-02-10T01:53:00.000-08:00

DLF Ltd., India's biggest realty company by sales, has secured long-term loans of about 20 billion rupees ($411.7 million) from three state-run banks and a financial institution, a person with direct knowledge of the matter said Tuesday.DLF has tied up loans of about 7 billion rupees from Punjab National Bank and 3 billion rupees from State Bank of India, the person, who asked not to be named, told Dow Jones Newswires.

The New Delhi-based company has also secured funding of about 7.5 billion rupees from Life Insurance Corp. of India and 2.5 billion rupees from Bank of India, the person said."The loans have been tied up at 12%-13% interest rates," the person said.Sanjey Roy, a spokesman for DLF, declined to comment on the company's fundraising plans, but said "we are very comfortably positioned and will fulfill all our obligations on time."

DLF is raising fresh loans and also replacing costlier short-term loans with cheaper long-term debt as five-year high lending rates and a slowing economy hit demand for real estate in Asia's third-biggest economy.DLF had raised 10 billion rupees in long-term debt during the quarter ended Dec. 31, Vice Chairman Rajiv Singh said last week. The company has a net debt of about 130 billion rupees, Mr. Singh said.About 40 billion rupees of the total debt is short-term, maturing during mid-2009 to late-2009, he said last week.

Source:http://online.wsj.com/article/SB123425048231667337.html?mod=googlenews_wsj

Best real estate investment in this slowdown

2009-01-27T20:25:00.000-08:00

In this slowdown it is best to invest in low cost high return yielding properties. The prices have come down in metropolitan and cosmopolitan cities. It makes sense to take a look at tier II and tier III cities with good infrastructure.

IN THIS economic slowdown it is very difficult for investors to make a decision on investing in real estate. The prices have come down in metropolitan and cosmopolitan cities. It makes sense to take a look at tier II and tier III cities with good infrastructure and proximity to airports and other destinations.Places like Gurgaon, Mysore, Hosur may be the places to look at.Hosur seemingly is best suited due to proximity to Bangalore and its climatic conditions. Hosur is just 40km from Bangalore and it would be an extension of the Bangalore Electronic City. Tamil Nadu government has announced four Special Economic Zone (SEZ) in this town.

They are aeronotical SEZ promoted by Tanuja Aerospace, floriculture SEZ promoted by Tanflora, IT SEZ promoted jointly by Tamil Nadu Industrial Development (TIDCO) and Electronic Corporation of Tamil Nadu Ltd (ELCOT) and last but not the least is the dream project of Hosur, the 3300 acre multiproduct SEZ promoted jointly by GMR Group and TIDCO.Keeping all this in mind, it would be best to invest in Hosur, where the prices are affordable and would fetch a high return in the future.You may look at Eco Vista which is a DTCP approved project located adjacent to the multiproduct SEZ. The prices are very attractive and has got all amenities like wide roads, drainage, security, water supply and luxury amenities like clubhouse and a swimming pool. It is also approved by ICICI Bank for site loans.

source:http://www.merinews.com/catFull.jsp?articleID=157210

Omaxe to launch 10,000 homes in Indore

2009-01-15T04:33:00.000-08:00

Realty firm Omaxe on Wednesday (January 14) said it will launch 10,000 low-cost homes in Indore next month, which would be developed at about Rs 1,000 crore. The company will launch the flats in the range of Rs 4-10 lakh.

“We will launch 10,000 affordable houses in February at a 200-acre township in Indore," Omaxe Chairman and Managing Director Rohtas Goel told reporters on the sidelines of an Assocham function on real estate.

Asked about the investment, he said the project cost would be about Rs 1,000 crore and the size of the flats would be 350 square feet upwards. Construction would be complete in 18 months. Goel noted that the company would sell these units at a margin of 10-15 per cent.

In May 2007, Omaxe had announced that it would develop 10 lakh affordable homes for low-income consumers in five years at Rs 80,000 crore. To take its plan forward, it would launch similar projects in Raipur, Rohtak, Sonepat, Chandigarh, Bhiwadi and Ludhiana.

While Omaxe would develop affordable housing in North India, in the south, Mumbai and Ahmedabad, such projects would be launched by a group company 'National Affordable Housing and Infrastructure Ltd', Goel said.

Omaxe would soon launch housing projects at Rs 12-19 lakh at Faridabad, Greater Noida and Ludhiana, he added. On correction in property prices, Goel said the rates have declined by 10-40 per cent across the country and there is no further scope for reduction.

Stating that sentiment in the market has improved after the stimulus package, he said states should also pitch in to boost housing by reducing stamp duty to 2-3 per cent for the next two years, raising the density norm and offering interest subsidy to buyers.

Source:http://www.timesnow.tv/NewsDtls.aspx?NewsID=26389

Realty industry wakes up to reality: Bubble has burst

2008-12-28T22:08:00.001-08:00

The five-year boom in India's realty industry came to a crashing halt in 2008, following an acute liquidity crunch, falling sales andrising interest rates. The year, though, started on a positive note.The Dubai-based Emaar MGF raised $1.64 from the primary market in late January, and two motnhs later, Delhi-based realtor BPTP registered the country's largest land deal, shelling out over Rs.50 bn ($1 bn) for 94 acres of land in Noida, on the outskirts of the national capital.
But after that, the fairy tale run for the industry ended. As apartment prices shot through the roof, and interest rates soared, buyers turned away, which immediately hit sales. Subsequently, over the rest of the year, realty stocks began to get hammered on the bourses."Slowdown and higher interest rates started spilling over on the realty sector and the immediate impact was visible in realty stocks," said Sanjay Verma, managing director of South Asia operations for realty consultancy Cushman and Wakefield.The realty index of 14 real estate stocks was the worst performer and slumped 80 percent, outpacing the 58 percent drop in the Sensex, the benchmark sensitive index of the Bombay Stock Exchange.As a result, valuations of realty stocks of even major developers such as DLF, Unitech, Omaxe and Parsvnath were greatly eroded.
DLF, which had raised Rs.100 bn (over $2 bn) in June 2007 in what was then the largest-ever initial public offering (IPO) in India, saw its share value dropping by 79 percent.Emaar MGF scrapped a proposed $1.64-bn public offer in February after failing to attract investors, while Indiabulls Properties Investment Trust, backed by billionaire Lakshmi Mittal, dropped 10 percent on its trading debut in Singapore.BPTP hit the news once gain in May as the company failed to pay the first instalment on time due to cash crunch and requested the Noida authority to grant a two-month extension to cough up Rs.12.5 billion.
The crisis deepened after investment bank Lehman Brothers filed for bankruptcy mid-September, blocking even the private equity route for developers.Big developers like DLF, Unitech, Ansals API and HDIL were particularly hit as Lehman Brothers, along with Merrill Lynch, another cash-strapped investment bank that had to be sold, had direct investments in these companies."What hurt the overall housing sentiment was the increasing borrowing rate. The current cost of borrowing for the company has risen to between 15.5 percent and 16.5 percent, compared with 12.1 percent for the year ended March 31," said Unitech managing director Sanjay Chandra.
"The liquidity risk was accentuated by the slowdown in the overall real estate market and the increasing reluctance of financial institutions and banks to fund real estate developers," added Verma.According to real estate service provider Jones Lang LaSalle Meghraj (JLLM), a steep rise in the interest rates brought down demand of residential properties, which went down by 40 percent.The slowdown faced by the realty developers was also reflected in their second-quarter results that showed profits dropping, ranging from four percent in the case of DLF to around 80 percent for Omaxe.
Source:http://economictimes.indiatimes.com/Market_News/Realty_industry_wakes_up_to_reality/articleshow/3903900.cms

Real Estates - Booming Industry in India

2008-12-24T00:37:00.001-08:00

Everyone has the dream to have a house. And it is such a scenario where so many people now have started living in nuclear families. Break-ups in joint families during last few decades promote the people to buy home and apartments for their own. In the last few decades, the income of middle class people is rising. Apart from the income factor, low interest rate on bank housing loan and young generation's modern thought for house ownership are some basic reasons for development in the real estate industry.

Real estate is such an industry which is blooming very vastly during the last few decades. The growth of this industry has moved to 35 per cent, which is estimated about US $ 15 billion and in future decades it is expected to grow at 30 per cent annually. It shows that people will be influenced towards this sector. After the year 1995, large number of business groups, IT companies and BPOs have moved to Indian market for establishing their offices, hotels, factories, workshop. This has given a huge boost to the real estate market. In India this industry is engaged in residential and commercial constructions. Commercial property is especially designed for business, industrial and institutional activity for generating revenue and profits. And residential property is for residents only. Delhi and NCR, Mumbai, Kolkata and Chennai are such metro cities where it has worked beautifully. Prices of property, houses, apartments, offices are moving higher, because of progress in the realty sector.Infrastructural development of any country depends on its realty sector development. For introducing foreign companies, hospitals, schools, townships, offices the country needs development in the realty sector.

India's economy is a developing one. And Reality sector forms 5-6 per cent of the Gross Domestic Product (GDP). Large scale investment, rapid urbanization and Foreign Direct Investment (FDI) are contributing to the growth of real estate sector in India. Government also promotes the international business groups to invest in this industry. It is such an industry where so many of job opportunity exist and it promotes several different industries like glass, iron, cement, paint, steel etc.

After the introduction of of international business groups in realty sector market prices of property are scaling newer and newer heights. They offer as much cost as a property owner demands. When the prices of property in metro cities are very high they are moving to smaller towns.

Every middle class family has the dream about their own home. Housing Loan is provided by the banks and various financing companies. They issue home loans for purchasing of house, building and apartment, against some securities and these securities are Life Insurance Policy assignments, guarantee from one person to another, share deposits. The maximum amount of loan for purchasing and constructions in rural areas is Rs. 25 lack and for semi-urban, urban and metros is Rs. 100 lacks. Bank and financial institution also check borrower's financial status. After that, loan provided by them covers about 80-85 percent of the total cost of home.

Source:http://ezinearticles.com/?Real-Estates---Booming-Industry-in-India&id=1654806

Real estate market ripe for Gulf non-resident Indians

2008-12-22T19:53:00.000-08:00

For the Gulf NRIs weighing his options diligently and with foresight, some attractive opportunities are on offer in the real estate sector. Consider these facts: Lenders are slashing home loan rates; Prices of real estate have slipped in tandem with the stock indices; Recession in the United States and Europe has forced many NRIs to rethink their property investment plans in India leaving thousands of plush homes in ‘NRI colonies’ without buyers.

There has been a drop of 50-60 per cent bookings by the NRIs over the last three months owing to tight liquidity conditions in the international markets, top realty players told Sunday Economic Times. If 100 bookings were being made earlier, today that’s not more than 30. There have been atleast 15-20 percent cancellations over the last few months. Developers expect the situation to continue till the liquidity situation improves in foreign markets.

This one time at least, NRIs in the Gulf have an advantage over those in the West as the GCC economies have been much less affected by the meltdown. Apart from some layoffs, there has not been much adverse action such as slashing of earnings. Unlike those in the West, it is unavoidable for the Gulf NRIs to have a home of their own – not necessarily their ancestral home which they left behind, but a more modern and better-equipped place like the homes available in the many housing complexes developed exclusively for NRIs across the country.

Source:http://www.thepeninsulaqatar.com/

DLF, Unitech ask flat buyers to pay more

2008-12-15T02:22:00.000-08:00

Buyers who bought apartments in Gurgaon and Greater Noida from DLF Ltd and Unitech Ltd are complaining that the builders have increased maintenance charges, sought advance payment of such charges, and increased the so-called super built-up area of their flat resulting in an escalation of costs.

At least three projects around capital New Delhi—DLF Pinnacle, Unitech Horizon and Unitech The World Spa—have seen changes in charges and terms from what was originally stated in the buyer’s contract, buyers say.DLF and Unitech say they are within terms of the agreements with buyers and such changes are not unusual.The increase in charges that have taken payments by a few lakhs comes at a time when demand for real estate is waning and developers find themselves faced with reduced cash flows from new projects.

“I got a bill in November this year from DLF asking me to make an advance payment of Rs45,000 towards maintenance fees for five months,” says a Singapore-based investor who has bought a 4,000 sq. ft apartment in DLF Pinnacle for about Rs1.2 crore. “I think it is completely inappropriate that they are charging this fees in advance.”DLF has also doubled the monthly maintenance fee to Rs2.50 a sq. ft from what was agreed to in the agreement.“The finishing of the apartments has not been done and the place still looks like a construction site,” says Girish Khera, another owner of an apartment in Pinnacle.

Maintenance, normally, is the builder’s responsibility until such time a possession certificate has been handed over to the buyer, says Sanjay Dutt, chief executive officer (business) of realty consultancy Jones Lang LaSalle Meghraj. “This is the general rule though this could vary depending on the fine print of the contract.”Buyers also had a shock when they were informed that DLF had increased the super built-up area of the apartments without any increase in the carpet area forcing buyers to pay more for the same apartment. Carpet area is the actual usable area within the apartment, while super built-up area also includes the apartment’s proportionate share of all the area under common spaces.

Super area is completely under the discretion of the builder, says Dutt. “It is a very grey area as far as transparency issues are concerned.”A DLF spokesperson says its decisions were not unusual. “The super area of every project we sell are tentative at the time of sale,” says the spokesperson. “The final areas are calculated after construction is finished, which is when we apply for occupation and hence informed them about the final area one year back, not on possession.”
On maintenance charges, the spokesman adds, “(it) is on a ‘no loss no profit’ basis and surplus, if any will be passed on to the next financial year.”

At Unitech’s The World Spa project in Gurgaon and Horizon development in Greater Noida, buyers have a similar story to tell.“I originally bought a 1,693 sq. ft apartment but now my total apartment size has increased to 1,760 sq. ft for which I have to pay an extra Rs1.5 lakh,” says a buyer who works with a multinational corporation in Greater Noida. He did not want to be identified. “(Unitech) told me that they have built a separate staircase for fire exit and a water tank on top of every tower, so (costs of) the super-built up area has increased.”

Together with advance maintenance charges, the buyer has to pay Rs7 lakh as final payment, about Rs3.5 lakh more than initially budgeted. “I took a loan to buy this property. I don’t know how I will get this extra amount,” he says.
Unitech accepts that the contract only mentioned one year maintenance charges but says it is only doing the duty expected of a residents association usually tasked with running maintenance of an apartment complex and which can take up to two years in forming. “It is our practice to immediately hand over the complex to the association after it has been formed and in such an event balance amount in the sinking fund is also transferred to the association,” a company spokesperson said.
Unitech said that the cost of inputs towards maintenance services has increased over the last three years when the apartment was allotted and the agreement states that prices might be revised.

Some buyers say such charges are being imposed because developers are not regulated. The urban development ministry had proposed a regulator to oversee developers in Delhi and around the city but legislation is yet to be presented in Parliament.

source:http://www.livemint.com/2008/12/14214235/DLF-Unitech-ask-flat-buyers-t.html

DLF, Unitech may slash prices by 30% next year

2008-12-11T01:03:00.001-08:00

DLF, Unitech and other real estate developers may lower prices by 30 per cent by mid-2009 to nudge buyers out of their ''wait and watch’’ stance, according to experts.The price cut, if implemented by the country's builders will also push sales higher, especially of the affordable category, property consultants said.''Many developers will come down on their asking rates after being saddled with unsold stock beyond their ability to hold on," added Anuj Puri, chairman and country head, Jones Lang LaSalle Meghraj (JLLM)

Property prices in the key cities have more than doubled in the past few years helped by a boom in the stock market and a spurt in salaries of home buyers. The subsequent measures of the Reserve Bank of India to cool the overheated economy and a subprime crisis coupled with a credit crunch, has tempered growth prospects in the country hurting sales of property developers.

The benchmark Sensitive index has dropped more than 60 per cent from the beginning of the year, eroding much of the investors’ wealth and RBI has increased repo rates by 150 basis points till September this year to curb inflation.
"If you take same time next year, there will be better volumes at lower prices than what they are today. Buyers will be tired of waiting and all the developers realise that price cuts are necessary across the board,'' said Pranay Vakil, chairman of property consultancy Knight Frank India.

To boost sales property developers have been forced to cut prices of real estate but buyers are still adopting a ''wait and watch’’ stance as many feel that even the lower rates continue to be unaffordable.''For the prices to come down further, the government need to increase the floor-to area ratio with a limit on the ticket size of the apartments fixed at 350 sq feet to 700 Sq feet,’’ said Rajeev Talwar, group executive director, DLF. The government should bring loans upto Rs 40 lakhs under the priority sector purview, he added.

Property prices in Gurgaon, Noida in the National Capital Region (NCR) have fallen by 25-30 per cent while Mumbai's distant suburbs have seen 15-20 per cent drop in prices. Now property consultants foresee further price correction of 25-30 per cent in 2009."By the middle of 2009, developers will loose holding power and cut prices sharply. Cuts will follow big time after elections," said Ambar Maheshwari, director of DTZ, an investment advisory.

Experts say that developers are likely to focus on sub Rs 20 lakh flats due to huge demand for such flats and the government’s stimulus package for Rs 20 lakh home loans.''Keeping in mind the current scenario DLF is launching its new residential projects in the range of Rs 2,000-2,500 sq feet at places where the market price is Rs 3,600 sq feet,’’ said Talwar, group.'' The fall in the prices of raw material will also help developers to come up with projects that are more affordable for the consumers" said a senior official in Unitech."Earlier, developers thought that there is latent demand for premium homes, but in the current slowdown, that perception has changed. There is always demand for Rs 5 lakh-Rs 15 lakh homes and developers will look towards that," Maheshwari said.

Source:http://www.business-standard.com/india/news/dlf-unitech-may-slash-prices-by-30-next-year/09/48/342893/

2008-12-03T03:30:00.000-08:00

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Business Center for Sale | Property Dealer India | Real Estate Investment in Gurgaon

2008-12-02T03:44:00.001-08:00

Central Park, one of India’s leading real estate developers, is committed to excellence in the creation of living, recreation, leisure and commercial spaces. It promotes global lifestyles through creative values and quality of design, layout, construction and marketing in all land developments projects it undertakes.

We are dedicated to the creation of quality developments that span the residential, commercial, recreational and hospitality sectors of real estate. Aesthetic designs and a sincere concern for the surroundings have established for us a reputation of reliability amongst a discerning clientele. As we seek to abide by the fundamental principles of environmental stewardship, customer centricity continues to form the bedrock of our values.

Central Park is a dynamic and innovative company with a passionate commitment to excellence in real estate development. Its commitment is reflected in all aspects of its core competencies, right from the acquisition of land, through to planning, design, construction and marketing. It has unrivalled expertise in creating elegantly designed living spaces that exhibit the highest standards of global quality.

Source:http://www.newdesignworld.com/press/story/5896

Property slowdown to have ripple effect

2008-11-25T21:15:00.000-08:00

The ripple effect of a slowing property market is likely to result in a substantial impact on the Indian economy, states a report by the Asia Economics Research Team at Goldman Sachs.

According to the report, a slowdown in the realty industry results in an inevitable slowdown in construction activity. While construction activity accounts for 7.3 per cent of the GDP, the sector’s multiplier effect would be felt in other industries that account for an estimated 14 per cent of the GDP.

Construction has strong backward linkages to sectors such as iron, steel, cement and forward linkages to segments such as hotels, trade and transport, thus bringing about a ripple effect.

The report estimates that the realty sector along with its linkages will reduce about 0.7 percentage point from India’s GDP in FY09 (compared to previous year) and an additional 0.4 percentage point in FY10.

The report also draws parallels to the previous cooling off of the property market in 1996 and the accompanying periods of relatively low economic growth.

It is to be noted that during 1994-95, India’s GDP growth had shot up to 6.4 per cent, a sharp acceleration from the less than 2 per cent growth in 1991-92. The country was also challenged by double digit inflation. Interest rates, then too, were raised to contain the inflation leading to turmoil in the property market and an overall liquidity crunch. With constrained money supply as well as demand, the country’s GDP declined to 4.3 per cent in 1997-98.

According to the Goldman Sachs report, residential real estate prices on an average rose 70 per cent cumulatively over the three years preceding the property bust in 1996 and declined by a cumulative 40 per cent in three years after 1996. The report notes that it took a good five years for the prices to recover from the slump.

Placed in a similar context, residential property prices over the last three years to 2008 have surged by a total of 80 per cent on an average. Inflation-adjusted real estate prices in the four major cities of Delhi, Mumbai, Kolkata and Chennai have also gone past the previous peak in 1996.

The report, released on Monday, suggests that residential property prices in some regions may have to decline by 30 per cent from current levels to improve affordability.

Source:http://www.thehindubusinessline.com/2008/11/25/stories/2008112551041100.htm

India's Emaar MGF May Form Retail Venture With Overseas Partner

2008-11-19T04:24:00.000-08:00

Emaar MGF Land Pvt., the Indian unit of the Middle East's largest real-estate developer, is seeking an overseas partner to start a retail venture in the world's second-most populous nation.

Retail will play an important role in growth and diversification,'' Shravan Gupta, vice chairman of New Delhi- based Emaar MGF, said in an interview in New Delhi today. ``We are looking at a foreign company that's not present in India. We can hand-hold them here.''

The developer, which is building at least five malls in India, plans to use its expertise in the property market to help an overseas partner establish a presence in the South Asian nation. Sales at chain stores in India may rise as much as 35 percent annually until 2015 to $80 billion, according to estimates by consultants McKinsey & Co.

Emaar MGF will also continue to focus on finishing its real-estate projects in India as slowing economic growth and high mortgage rates damp demand for homes in the country.

Prime Minister Manmohan Singh said Nov. 16 India's pace of economic expansion may slow to between 7 percent and 7.5 percent this year, from an average of about 9 percent in the past four.

source:http://www.bloomberg.com/apps/news?pid=20601091&sid=asL62cSTPK30&refer=india

Property for super rich hits record price

2008-11-15T01:08:00.000-08:00

A 78th floor penthouse at the Time Warner Centre in midtown Manhattan is on the market for an eye-watering $65 million.

But before you think that the US real estate crash has failed to hit the top end of the market, guess again.The apartment is only the most expensive in town because an $80 million apartment overlooking Central Park was taken off the market last month having failed to sell, according to the New York Observer.

The city’s super rich will not only have to pay $65 million for the apartment’s leasehold – a staggering $7,831 per square foot – they will also have to pony up monthly maintenance fees of $13,361 and monthly taxes of $16,332.

A 25-year mortgage at five percent would require monthly repayments of around $400,000 to clear the loan.

The penthouse has five bedrooms, including the master suite that has two bathrooms, two dressing rooms, an office and its own gym.

It has a 41 foot living room containing its own library, a dining room overlooking the Hudson River, a staff kitchen, and a home cinema.

But it's still peanuts compared to the home being built by Mukhesh Ambani, the richest man in India. His new home in Mumbai is reportedly a 27-storey tower, complete with a four-storey-high open garden, and is believed to be worth upwards of $2 billion.

Property watchers in the UAE expect a premium-priced apartment in the Burj Dubai, the world’s tallest building, to set the local record for property prices when it hits the market.

source:http://www.arabianbusiness.com/

Real estate giant HDIL to sell off 4.5 million square feet

2008-11-14T03:19:00.001-08:00

In a sign of the times, the country’s third largest real-estate player, Housing Development and Infrastructure Limited (HDIL), has offered to sell off three of its plots totalling about 4.5 million square feet. Analysts say the rare move shows the extent of liquidity crunch in the realty market where no developer normally takes the extreme step of off-loading valuable land stock.
The plots along with their potential Floor Space Index amounts to 1.5 million sq ft saleable land at Andheri, 2.5 million sq ft at Kurla and 63,000 sq ft at Carmichael Road in the upmarket Malabar hill area. At present, the Carmichael Road plot houses a bungalow.

The Kurla plot is a portion of the 53 acres acquired by HDIL to rehabilitate 20,000 of the 85,000 slum-dwellers’ families, in Phase I of the massive Mumbai Airport Slum Rehabilitation project.

Earlier this year, HDIL had raised money through debts to purchase the Premier Automobiles Kurla land from an IFLS affiliate at Rs 1,900 crore.

The current debt of the listed real-estate company, which is also one of the largest landowners in Mumbai, stands at over Rs 3,000 crore.
Sarang Wadhwan, HDIL managing director, brushed aside any co-relation between the debt and the proposed land sale. “It’s just a business move where we are planning to offload some land as a means of revenue. We are trying to raise money for the airport land rehabilitation. At present, work is on as per schedule at 125 of the 190 buildings,” he said.

Wadhwan refused to comment on how much money he expected to raise from the land sales. On whether the land would have any takers in the present market, he said, “The market is seeing a correction and there will definitely be no problem in getting buyers.”

Realty analysts state that HDIL’s move is just the tip of the iceberg in the real-estate industry which has been aggressively acquiring land over the past few years. According to Akshaye Kumar, CEO of Parklane Property Consultants, over the last few months, a significant number of developers have put up a few sites on their portfolio for sale. “Historically, developers never sell land. Even when the previous real-estate crash happened, there was only an odd developer who put up his land for sale. But this time, considering the asset-rich cash-strapped scenario, such a step might be unusual but not surprising,” said Kumar.

Source:http://www.indianexpress.com/news/real-estate-giant-hdil-to-sell-off-4.5-million-square-feet/385514/

Buy a property when its nearing completion

2008-11-11T01:02:00.000-08:00

Buying a property that is nearing completion makes more sense for end users. While one may not get launch rates, there are good bargains on offer along with an assurance of timely delivery.

Shail Patwardhan had been looking for an apartment to purchase for self use since 2006. But while many developers had launched premium projects that would suit her lifestyle in Gurgaon, where she is part of the senior management of a leading IT company, most were promising delivery about two to three years down the line.

“In a booming market, I could see projects being launched but not much activity on the ground. I wanted a house to live in not to invest in, so I held back.” While in 2006 it would have cost her Rs 3,200 per sq ft, she has now paid Rs 4,900 per sq ft.

But she does not regret her decision. “I wanted a house I could occupy immediately on purchase. If I had bought it in 2006 I would have had the pressure of paying the EMIs on the property which was due two years down the line and had to take care of the rental outflow as well. I also feel more comfortable that the house I am buying today is ready and there are no variables on when it will be delivered to me. Therefore, my purchase at this time is a good option.”

Patwardhan is not alone in making such decisions. According to Ravi of True Value Homes of Chennai, there is a huge demand for completed property. Of the 450 apartments in the Central part of the city launched two and a half years ago at Rs 2950 per sq ft have now been sold at Rs 4750 per sq ft. In the last four months alone he has sold 150 apartments at over Rs 1 crore each. This is despite the slowdown in the market.

The buyer, in this case, was the end user, largely businessmen, professionals, corporate executives and even local bureaucrats. However, in his Sriperambudur project he has gone for affordable housing in the Rs 15-25 lakh category. “Despite the so-called recession we moved 400 apartments by taking token advances of 5-10%. Since, Sriperumbudur is a thickly populated area the number of end users is very high. The property was priced at Rs 2,200 per sq ft and possession is within 18 months.”

Suresh Jain of Vijay Shanthi Developers of Chennai, agrees that the end user is active when the property is ready built. “Everyone was waiting for prices to come down in Chennai but since that has not really happened, end users, who had been watching from the 70-80% completion stage, are concluding deals by the time the property is 85% complete.

In the suburbs, they know, the wait is longer for infrastructure to develop and the off-take has been a little slower. But where the properties are in the more affordable ranges, it comes under the end users’ scanner once the columns are done. The customer knows that he would get occupancy within 12-15 months. The floor slabs take 4-5 months to complete and the top floor slab is laid within 6 months. The individual client then gets the flat ready for fit-outs. This stage is when the end user is very active.”

Demand in the mid segment has changed and the buyer who wanted an 1,800 sq ft apartment is currently looking at the 900 sq ft apartment. His demand is for a 2BHK with all amenities at the site. The home should still be a status symbol. Since the cost cannot come down the area per unit has come down.

This is a trend that Gaurav Bhalla of the Vatika Group too endorses. He, in fact, is very bullish on the Group’s growth because they held close to 60% of the property with themselves. Today, with the Vatika City project on the Sohna Road in Gurgaon ready for possession, Bhalla finds a huge number of buyers who are also end users. “We were not over leveraged and received a tranch of money from Goldman Sachs just before the slowdown happened.

This helped us complete the project. Since we held 60-70% of stock we were able to sell at over Rs 4,000 per sq ft. In 2004 we sold the same property at Rs 1,400 per sq ft. This time we are able to attract large number of end users because of the ready stock.”

Bhalla continues this logic to the next stage and says that handing over possession of existing projects with the requisite lifestyle features actually helps in attracting end users even to newer projects. Today’s buyers are in the 35-40 year age bracket, mid-career executives who are buying first homes.

They have been paying rents for some time and their aspirations are refined and not overly stylised. Safety and security is a prime driver. The difference between the buyer in the frenzied boom time and now is that the user today realises what contributes to lifestyle and what is not very important. A jacuzzi in the bathroom is one such feature.

As in the case of the Chennai developers, Vatika too, is building India Next and Jaipur 21 based on actual end user needs. Even sizes are designed to suit the pocket of the mid-budget buyer. If the mid-budget buyer is what the developer community is wooing and where maximum demand exists, there are certain advantages that he can leverage too. Look for a property that is nearing completion.

While you may not get launch rates if you enter the market just six months before it is ready for fit-outs you will get good bargains and also be assured that the property will be delivered on time. Also, you tend to get the best locations because you are ahead of the frenzied demand cycle. If you can manage a down payment go for it because you get better discounts from the developer for doing so.

Source:http://economictimes.indiatimes.com/

Indian real estate sector in recession mode

2008-10-20T23:01:00.000-07:00

THE DEVELOPMENT of real estate in India is attributed to the off-shoring and outsourcing businesses, such as high-end technology consultation, call centres and programming houses. The demand from the information technology sector has changed the urban landscape. Several multinational companies (MNCs) continue to move their organisational operations to India to take advantage of lower manpower and other costs. Providing human resources and home at their workplace assumes great significance and therefore, the requirement to create space for people to live and work that in turn, causes the development of other related infrastructure. It has been a predominant trend to set up the world’s best business centres, often campus-style establishments bearing a distinguishing corporate stamp. Some of these locations are so distinctive that they are termed as the ’temples of new India’. It is just an indication of the extent to which the development of real estate has been taking place.

The real estate market in India remains unorganised, fairly fragmented, mostly characterised by small players with a local presence. Traditionally, real estate developers were viewed with an element of skepticism. They were often identified dealing with large amounts of unaccounted money, lacking transparency and would use unscrupulous mean to acquire a variety of regulatory approvals.

The tremendous growth of the real estate sector is attributed to various fundamental factors such as growing economy, growing business needs etc. However, this boom is restricted to areas such as commercial office space, retail and housing sectors. The impending concerns of this sector namely skill shortage, non-availability of statistics, lack of low cost-affordable housing, lack of sustainability and to meet a future that might have downturn due to oversupply.

The industry is presently facing a major resource crunch – an obvious lack of qualified and skilled people from construction firms etc. Coupled with this manpower shortage is the shortage of availability of relevant statistics, which has created an ambiguity as to how much construction activity is actually taking place and one can’t gauge the demand and supply trends accurately.

The opportunities and issues of affordable, low cost housing in India are mainly related with tremendous shortfall of middle class housing as majority of the developers are involved in developing high class housing. So, there is a dearth of low cost affordable units. The negative version of Indian real estate industry is ’they have complete disrespect for sustainability’ and that the concept of green buildings, proper waste disposal methods and the longevity of the product are often dismissed.

Presently, the impact of recession in US economy has caused mammoth impact on Indian real estate market as well, as it is witnessing the recession. Till now, the real estate industry was a booming industry, which were in pace with information technology (IT) industry. Accordingly, the demand for IT space and commercial spaces has been grown. Also, the high net worth of individual investors has created a very fast pace of demand in Indian real estate sector, which has a very high impact image of investing in India.

As the money was coming in terms on investment in from non-resident Indians as well as private equity funds, the well-known developers and real estate players have grown their portfolio as well many small sized players have also created in Indian market. It has provided a very high supply of real estate segments either in residential or in commercial or in office space. Special economic zone (SEZ) has also creates a very good opportunities for investors as well as corporate to invest and get benefited from Indian real estate market. So, the booming market has created a niche as modern living and created a very mass employment in Indian segment.

The recent changes, which happened in American market such as bankruptcy of Lehman Brother (one of the oldest financial firms of American market) and sell process of PE firm Merryl Lynch by the largest US bank, Bank of America, has created a very fast drops/recession in financial industry and created a crisis in all over US economy. Both of these firms were invested their more part of funds into real estate sector without having the proper analysing or effect.They also have given the funds for mortgage industry of US, which is currently facing the hurdle of sub prime lending and have affected many players to bankruptcy.

All of these changes in the US economy have affected Indian economy as well as real estate segment as most of the Indian players have their liquidity funded by both of these firms. The IT segment, which was mainly funded by the PE firms or have their export to US markets have noticed very sharp drop of net worth of their firms. This recession also affected the Sensex, which is bullish and brings down the net worth of the leader of Indian real estate player very low. The impact can be shown in share price of DLF, Unitech, GMR group, Reliance Group, Wipro, Satyam etc groups. All of these sudden changes in Indian and US market created a point of thinking to investors and individuals that where it will go and what will be the best option in real estate investment. The market rates in India are also dropped by 10 to 30 per cent in most of prominent as well as upcoming cities and the trend appears to be still continuing, till it recovers from the ill effects of financial crisis.

Source:http://www.merinews.com/catFull.jsp?articleID=145014

Having property in Gurgaon is beneficial in respect to prices

2008-10-19T23:22:00.000-07:00

Having property in Gurgaon is beneficial in respect to prices, rental income and security. The prices of residential as well as commercial real estate has been increased at a fast pace. It's been over 60 years, since the DLF Group has been providing us its exceptional real estate services. DLF has over 224 million sq.ft. of existing development and 748 million sq. ft. of planned projects. The company is thoroughly committed to quality, trust and customer sensitivity, and delivers on promises with agility, financial prudence and in tune with the highest global standards. Not only this, the real estate major has also entered into various strategic alliances with global industry leaders.

Nowadays, the trend of having elite dwelling has increased the demand of real estate in Gurgaon. For accomplishing the increasing demand of Gurgaon properties, a number of real estate developers have come with some new high end projects for middle and upper class people at Dlf Phase Gurgaon.

Real Estate/Plots Gurgaon is best opportunity for property, It is located close to Delhi and is emerging one of the hottest destination as far as for real estate is concerned. Gurgaon can be the best choice for buy residential property, commercial property, plots property. There are many ongoing projects. DLF has launched a new residential/plots project in DLF Phase 1 to phase 5.Besides modern offices and expensive houses, Gurgaon is also very popular for its residential properties for middle class people. Nowadays, a lot of constructions are ongoing keeping in mind requirements of middle class segment. Due to easy accessibly from South Delhi, the city has become world's finest real state destination either for Indian or investors from abroad. With the connectivity from international airport gives Gurgaon special attention over other cities in the NCR.

Gurgaon Real Estate has become first choice among investors as the quality construction and innovative additions. The real estates in Gurgaon offer lucrative profit for investors who are investing money either for commercial or residential properties. The city is renowned as a one of the finest choices for investment in India.

source:http://www.pr-inside.com/at-present-the-real-estate-market-r866630.htm

Reality check as property market slumps in India - Feature

2008-10-15T21:32:00.000-07:00

With the global credit crisis leading to the worst slowdown in the Indian real estate market in recent times, agents and developers are hoping the festive season surrounding Diwali, the Hindu festival of lights, will drive away the gloom. Coming at the end of October, Diwali will prove a crucial period for developers as many Indians consider it to be the start of the Hindu business year and an auspicious time to start new ventures, buy property and expensive consumer goods.Indian cities enjoyed a real estate boom for nearly four years, ending 2007. After being stagnant for the first part of the year, property prices slid about 15 per cent during the last two months in key metro areas like New Delhi or Mumbai and fast-growing cities like Bangalore and Pune.

Apart from prime locations in such cities, price corrections of up to 15 per cent could continue in the residential, office and retail space.Realty consultants said the property market will be affected for at least a year."The global economic meltdown is, beyond doubt, taking its toll on India's real estate sector. We can safely expect the current dynamics to prevail to varying degrees for another 14-18 months," said Anuj Puri, country head of real estate consultancy Jones Lang La Salle Meghraj.Amid rising mortgage rates, a drop in demand and cautious consumers awaiting a further slump; developers are concerned about credit access drying up and bank liquidity.

The central Reserve Bank of India has also put a restriction on banks' financing of real estate firms to reduce exposure to the sensitive sector.As foreign funds and investors exit India and the rupee weakens to a six-year low, many realty majors dependent on foreign investment have slowed down their projects."This is a tough time for developers. While sales have declined owing to rising home loans, developers are also facing a credit squeeze that is holding up projects," said a senior executive at leading realtor Unitech.Private equities are hesitant to deploy funds and the fall in stock prices is also make fundraising difficult. The realty index of the benchmark Bombay stock exchange is the hardest hit, having declined over 70 per cent from its peak in January.

Subhash Madhok started building his two-storey house in Delhi's suburb of Ghaziabad more than a year ago, aiming to finance the construction by selling a floor."Today the floor is fetching a lot less. I do not know how to pay back the bank," he said.Meanwhile, developers are bracing to face the challenge around Diwali - the biggest shopping time in the year - as over half their sales are traditionally recorded between October to December.

Hoping to boost sales, they are targeting government employees flush with arrears of their newly hiked salaries and private sector employees who will receive bonuses.Besides discounts of up to 15 per cent, they are offering incentives of jewelry, gold coins, massage chairs and luxury cars with flats costing 10 million rupees (208,000 dollars) or more.

"We want to launch projects during Diwali because properties launched at this time get a better response. At a time when sales are down, Diwali comes as a major sentiment booster for developers as well as customers," Dimple Bharadwaj, Raheja Developers spokeswoman, told the Business Standard daily.But sales have yet to pick up despite the discounts and freebies. Some realtors said the incentives would not help improve property sales because home loan rates are high and property prices out of reach for many ordinary buyers.

However, the long-term outlook remains upbeat considering the strong fundamentals of the economy, a dynamic workforce and robust demand.The demand for real estate in the office, retail, residential and hospitality sectors is expected to cross 1 billion square feet by 2012, according to the latest report by Cushman and Wakefield. The bulk of the demand, about 876 million square feet, will be in the nation's seven major cities.

"New markets and foreign investment-friendly formats are emerging, and increasing transparency catalyzed by the very dynamics that give the market pause now will propel it forward," Puri said."I remain confident in the India story," said Rajeev Talwar, group executive director of DLF, the country's largest developer."We will take sometime to adapt to the changing global scene but the property market will thrive at a realistic rate, as speculative growth will go down."

Source:http://www.earthtimes.org/articles/show/236884,reality-check-as-property-market-slumps-in-india--feature.html

Realtors blink, cut home prices up to 25%

2008-10-06T02:12:00.000-07:00

This festive season may be a good time to buy your dream home, for property developers are showering discounts.Most realtors are already advertising cash discounts of 5-10 per cent on upfront payment and buyers can get up to 25 per cent discount if they book properties and are willing to wait for two to three years until possession. According to consultants, developers may even give 15-20 per cent discount on the price as they are eager to clear inventories.

Normally, the October-December period accounts for 60 per cent of the sales. What is worrying developers is the sharp decline in property sales this year. From the beginning of the year, home sales have halved because of high interest rates and a sharp rise in the monthly loan payouts of borrowers.

According to a recent national poll conducted among top property brokers by Mumbai-based brokerage Edelweiss Securities, nearly 90 per cent said they have seen a drop in transactions in the last one month and almost 80 per cent witnessed a reduction in enquiries during the same period.

Oberoi Constructions was planning to launch a 300-apartment complex called Oberoi Island in the Goregaon suburb of Mumbai during Diwali. The realtor was mulling to offer apartments under construction, which were expected to be completed in two years, at Rs 9,000 per sq ft from the current price of Rs 12,000 per sq ft.

Developers such as Mumbai-based Sunil Mantri Realty are more candid about the price cuts, as the company has already advertised a 6 per cent discount for its 206-apartment complex Mantri Royale in Bangalore, which was launched last Thursday. The company would be selling flats at Rs 2,590 per sq ft, instead of the normal Rs 2,750 a sq ft, for the next 15 days and was planning to extend it further, depending on the buyers’ response.

Mantri Realty was also planning to give similar offers at its upcoming projects at Gwalior in Madhya Pradesh and Solapur in Maharashtra, slated for launch in the second and fourth week of October respectively.

“It makes much more sense to give discounts and waive off stamp duty to persuade customers to buy apartments when the market is facing a slowdown. Every buyer demands a little more for his money and we are doing that,” said Sunil Mantri, promoter of Sunil Mantri Realty.

Seeing the sharp decline in property sales, the Maharashtra Chamber of Housing and Industry (MCHI), a trade body of realtors, has already advised its members to bear the stamp duty charges and pay a part of the interest cost on loans to improve the declining sales.

In the National Capital Region (NCR) of Delhi too, where price correction was more deeper than Mumbai, developers are doling out discounts to woo customers. Delhi-based Pearls Infrastructure is giving 6 per cent discount on down payments in its Nirmal Chaaya Tower at Zirakpur and 8 per cent discount in the Pearl City project at Mohali in Punjab.

Though big developers such as DLF, Ansal API, Parsvnath Developers and Raheja Developers have not advertised discounts, they are launching their new projects, mostly in the mid-income segment during Diwali to attract buyers in the mid-income segment.

"We want to launch our projects during Diwali because properties launched at this time get better response. At a time when sales are down, Diwali comes as a major sentiment booster for developers as well as customers," said Dimple Bhardwaj, spokesperson, Raheja Developers, which is launching a 412-apartment project at Gurgaon.

However, some realtors and consultants said the discounts and offers would not help improve property sales since home loan rates are high and property prices are out of reach of ordinary buyers.

“This Diwali will not be like that of previous years. The current market sentiment is down and the developers are feeling the heat. I do not think that the discount offer of Rs 1-2 lakh will make a customer buy an apartment that costs more than his pocket,” said Anshuman Magazine, managing director, property consultancy CB Richard Ellis.

Adds Akshaya Kumar, MD of Park Lane Property Advisors, "This Diwali will be a damp squib for the property market. Only in 2010, developers can do some good business. Developers may offer 5-10 per cent discount this time depending on their strength,'' Kumar says.

Prakash Gurbaxani, founder and chief executive of Bangalore-based QVC Realty, said competitive pricing is the key to sell property than discounts. QVC is launching its 100-villa project QVC Hills, with each villa costing Rs 2-4 crore, in Bangalore during Diwali. "Nobody will wait for a Rs 5 lakh discount to buy a Rs 2 crore house. You have to price the property right and product should be good,'' he said.

source:http://www.business-standard.com/india/storypage.php?autono=336458

Global real estate investors turn their attention to Australia

2008-09-18T22:59:00.000-07:00

With $12 billion of commercial buildings up for grabs and its currency weakening, Australia is becoming a prime target for global funds interested in snapping up the bargains being offered by the country's troubled real estate trusts.

The Australian commercial real estate market, long dominated by local companies, has held its value because of low vacancy rates. But highly leveraged real estate investment trusts are in trouble because the global credit crunch has raised borrowing costs.

Investors from the Middle East as well as German funds seeking low-risk, low-return placements are searching for potential deals, said Robert White, president of the research firm Real Capital Analytics in New York.

"A lot of investors want to invest in Asia-Pacific for allocation reasons, but they're scared of China, and there are limited opportunities in other markets," White said. "So Australia has emerged as a very attractive market for Germans, for Middle East investors."

The Australian developer Ashington said this month that it was seeking foreign investors for a 200 million Australian dollar, or $160 million, fund to buy buildings. And the Abu Dhabi Investment Authority, the world's largest sovereign wealth fund, wants to expand its portfolio of Australian real estate holdings, according to newspaper reports in the United Arab Emirates.

Source:http://www.iht.com/articles/2008/09/18/

Era Infra Receives Contract Worth Rs 2.09 Bn From NRDA

2008-09-12T04:05:00.000-07:00

Era Infra Engineering has disclosed that it has bagged a contract worth Rs 2.09 billion from Naya Raipur Development Authority (NRDA) for the construction of Head of Department Building at Capitol Complex, Naya Raipur, Chhattisgarh.

Era Infra Engineering is a fully integrated infrastructure conglomerate that specialiges in infrastructure development, pre-engineered building blocks and real estate development.

Recently, the company’s joint venture with KMB has won Rs 129.65 crore contract from the Airports Authority of India (AAI).

In such unpredictable market session, the stock of Era Infra Engineering ended well at Rs 489, up 1.01 per cent on National Stock Exchange.

Source:http://www.topnews.in/era-infra-receives-contract-worth-rs-2-09-bn-nrda-266610

Faridabad: Fast coming into limelight

2008-09-08T02:20:00.000-07:00

THE industrial hub of Haryana has changed its blueprint to accommodate more capital inflows. The constant and the consistent infrastructural development in the commercial as well as retail sector is keeping an option open to the investors from far and wide to consider the real estate boom in Faridabad. Coming soon a new city from the womb of Faridabad - Greater Faridabad is conceptualising the group housing sector. With twenty residential sectors, the region is going to meet the needs of all kinds of people lying in the bracket of urban poor, middle-class and luxurious. Two separate multi-storied housing facility has been announced to provide affordable accommodation to urban poor, fresh plans are being drawn up to welcome the middle-class families under the roof of Greater Faridabad and high rise multi-storey buildings with all comforts for well- heeled people. The construction of other projects like Lakewood City and Greenfield’s colony is underway. Already drawing a lot of attention, the city is attracting major investments and by 2010 more than 5000 crores will be invested in the major property hubs of Faridabad city.

With the Badarpur-Noida Express Way in the offing, the nominal connectivity between Faridabad and Noida will turn the corner. The mushrooming of mall culture in the city is surging Faridabad’s popularity among Delhiites. At present, Faridabad is experiencing reverse trend in terms of visitors rushing in from Delhi, Noida to test the flavour of city’s malls. Especially malls like ‘Crown Interiors’ bordering Delhi is witnessing more of capital’s crowd.

“The mall is of international concept. I find all the classy brands here. Moreover, it has easy accessibility from my home. So, I prefer to come here,” says a visitor from New Friends Colony who wished not to be named.

Newly arrived shopping malls like Parsvnath Group’s City and Manhattan Mall will get flowered in the coming six months. “A lot of national and international brands are coming in and definitely both the malls are going to develop in the next six months. There is already PVR multiplex in both the malls so people can enjoy their bit of entertainment,” claims Sonia dealing in the retail department of Parsvnath Developers Ltd. Apart from the surviving Malls like Ansal Crown Plaza, SRS, Pristine, EF-3, ten new malls are under construction on Mathura Road. All these will further change the face of already developing Faridabad and with the next important project in the pipeline - ‘express way’, will help bring a lot of people rushing into these malls.

What next is Faridabad going to accept with veneration? The three star and the five star hotels are on the way to Faridabad. Situated in close proximity to SRS Mall, the site for a five star hotel has been finalised. And another three star hotel with 40 rooms’ capacity on the area of three lakh square feet is arriving on the doors of the city. Faridabad is going to hold its head high with the stars studding on its head anon.

The city is making a good fist of prospering into the arena of education. Host of new schools of international standard like - GD Goenka, New DPS, Manav Rachna International School, Cambridge International School are giving scores of option to the students and the parents to consider the better education. Imparting cutting edge knowledge to change the global scenario, Gopal Sharma MVN Institute of Engineering and Technology, co-ed and Les Filles MVN Institute of Engineering and Technology for women are operational from this session. The campus established on the sprawling 23 acre area with all the Wi-Fi facilities available.

Situated on the 74 KM Stone, National Highway-2, Faridabad, the college provides transport facility from Delhi and Faridabad and also hostel facility at Faridabad. And to provide medical students some respite the city is being a pioneer in imparting education. Vivekananda College of Dental Science and Research at sector-16, Faridabad, is under construction and likely to commence its first session right from the next year.

With more and more constructive activities on the rise, the vertically and horizontally growing city of Faridabad will have a new face five years down the line. To improve transport amenity – the upcoming Metro Railways in the city will do its bit.

Source:http://www.merinews.com/catFull.jsp?title=Faridabad:%20Fast%20coming%20into%20limelight&articleID=140764

Licence must for Haryana dealers

2008-09-06T02:18:00.001-07:00

The Haryana legislative assembly has passed the Haryana Regulation of Property Dealers and Consultants Bill to safeguard the interests of the people using services of property dealers, property consultants and real estate agents. Minister of State for Revenue, Savitri Jindal tabled the bill in the assembly on September 2. After this Act is enforced, no property dealer or his representative without obtaining licence can enter into transactions of sale, purchase, exchange, letting or taking on lease between the buyer and seller, lessor and lessee, landlord and tenant, including the collection of rent in respect of the immovable property with anybody in any manner.

Meanwhile the Haryana assembly has also passed the Indian Stamp Bill 2008 (Haryana Amendment Bill). According to the Bill, the rate of stamp duty will be decreased from six per cent to five per cent on conveyance deeds and sale deeds.

Parsvnath Residency

Parsvnath Developers has launched its group housing project Parsvnath Residency at Moradabad. The project is strategically located at Ram Ganga Vihar, Phase - II. Parsvnath is investing approximately Rs 15 crore in the property for which construction has already begun and is scheduled to be completed by the end of 2010. The project will offer 34 luxurious dwelling units. It has three bedroom flats on 1,587 sq ft, 1,846 sq ft and 1,906 sq ft. It also offers limited and exclusive four and five bedroom penthouses on 2,868 sq ft and 3,350 sq ft, respectively. The ongoing rate for the above-mentioned apartments is Rs 1,850 per sq ft. The company has already got residential project Parsvnath Pratibha and a mall in Moradabad.

Ramprastha City in Gurgaon

Ramprastha has announced a mega township in Gurgaon spread over an area of 450 acres. The residential part will include premium villas, penthouses, plotted row housing, group housing, apartment and low-rise buildings. The apartments will be in the configuration of two (1,286 sq ft), three (1,650 sq ft and 1,975 sq ft) and four bedrooms (2,350 sq ft). The apartments are being sold at a basic rate of Rs 2,350 per sq ft. The project will be completed in phases spanning over a period of seven to eight years.

Bhoomi Poojan

Tivoli Group has conducted bhoomi poojan ceremony at its Tivoli Holiday Village at Dharuheda. The project is likely to be complete by end of 2010 . Spread over an area of 8 acres, the project will offer 536 fully furnished dwelling units including villas, studio apartments, two and three bedroom apartments and penthouses. Priced between Rs 26 lakh to Rs 1.10 Crore, the 1- to 3 bedroom apartments offer an area of 656 to 1,550 sq ft. There will also be 2, 3 and 4 bedroom penthouses of 1,935 to 2,720 sq ft. Studio apartments will cost Rs 26 lakh while 1 to 3 bedroom apartments are for Rs 34 to 62 lakh.

The penthouses start at Rs 77.50 lakh and go as high as 1.10 crore. Facilities will include a club, pool, restaurants, business centre and miniature golf course.

Source:http://www.expressestates.in/full_story.php?content_id=93511

Get lucrative offers in gurgaon property deals

2008-09-03T04:06:00.000-07:00

Popularly known as cyber city, Gurgaon will continue to remain the scene of much of the realty action in the next few years. The place is investment worthy due to availability of quality housing at reasonable prices and the quality of construction. Gurgaon is recognized as the safest NCR region to invest in.

It is expected that the value of the properties in Gurgaon will increase 10 to 15 per cent a year for the next few years. Gurgaon has altered the definition of realty sector by pioneering luxury segment during 2004-05 with the launch of DLF's Aralias; Aralias II; MGF Vilas; DLF's Magnolia and lately Ambience Caitriona and Unitech Karma Lakelands. These modern projects have 4-5 bed rooms, central air-conditioning, luxury apartments with bountiful specifications and all the modern amenities and comforts for clients’ satisfaction.

Nowadays, the trend of having elite dwelling has increased the demand of real estate in Gurgaon. For accomplishing the increasing demand of Gurgaon properties, a number of real estate developers have come with some new high end projects for middle and upper class people at Gurgaon Sohna Road, Old Gurgaon Road, MG Road and Golf Course Road.

The real estate market of Gurgaon has shown incredible boom in the period between 1998 and 2006, a period in which the city pioneered real estate developers for instance DLF and Unitech. In this period, the value of property has incredibly increased. People who have ancestral property have become multi-millionaires overnight.

Besides expensive houses and modern office spaces, the city also presents a wide range of residential properties for middle class segment. Keeping in mind middle class segment, DLF has recently introduced "New Town Heights" and Vatika limited has come up with "Vatika India Next". So, invest in realty sector of Gurgaon and get unprecedented results.

Gurgaon: From boom town to doom town

2008-08-31T23:34:00.000-07:00

The Millennium City's growth meter appears to be galloping with foreign investors queuing up to open shop. Cashing in on the outsourcing boom, Gurgaon has emerged as the economic capital of north India, the model destination every other town in India aspires to be. But scratch the surface ever so lightly and the gloss wears off to reveal a story of non-existent infrastructure, official apathy and a boom town hurtling towards doom.

The state government and administration worked overtime to market the city as the perfect investment destination and for big time real estate development. But the lack of infrastructure has begun showing, haunting those who shifted here from Delhi and other major cities in the hope of a better life. How the Haryana Urban Development Authority (HUDA) failed in its job to install the necessary infrastructure came to light recently when rainwater not only flooded the entire basement of the upmarket Belvedere Park residential estate but also almost all houses in the old city and many other homes in new Gurgaon.

But problems like lack of stormwater drains and delay in laying the master sewer line along the Delhi-Gurgaon Expressway are minuscule compared to the other infrastructure issues facing the city.

Gurgaon, which generates almost 40% of Haryana's earnings, does not have a proper public transport system nor a designated place to dump the 375 tonnes of solid waste it generates everyday. Add to it an acute water and power crisis in summer.

The problems are manifold in the city which is now home to a population of 18 or 20 lakh. What is worrying is the projected population of 50 lakh in 2021. "That is a major concern and we are worried despite the fact that we live in a condominium which is a well-maintained complex with round-the-clock water supply and electricity back up. But at the end of the day we all go out to work or to shop and find how the city's infrastructure is deteriorating," said Hamilton Court RWA president M M Bhalla.

He added that even for condominium societies where people pay a price for living a hassle-free life, the lagging infrastructure has begun to pinch. "How will we reach our workplace or return home when the city infrastructure collapses?" Bhalla asked.

ROADS

Except the Delhi-Gurgaon Expressway, hardly any road can be said to be in a good condition in the city. There is no stormwater drain to protect the roads from the ravages of monsoon. If official estimates are to be believed, repair and relaying of bitumen on the affected stretches would require an investment to the tune of Rs 150-Rs 200 crore. HUDA administrator G Anupama said it would take at least one year to prepare the plan for stormwater drains and to complete the civil work. In Gurgaon, all major roads are under HUDA's control.

When questioned, newly-appointed Gurgaon Municipal Corporation (GMC) commissioner Rajeev Sharma said repair work on different stretches had already started despite the fact that the roads had not been handed over to the corporation.

It may be recalled that in a recent meeting, Haryana chief minister Bhupinder Singh Hooda had said it would not take more than six months to bring all the roads back into shape.

However, the slightest efforts to either widen the existing roads or to improve the public transport system are expected to throw the city out of gear. "It takes half an hour to cross the one kilometer stretch between 32-lane toll plaza and Udoy Vihar or Cyber Greens. The situation will get worse with more and more industries starting their facilities in these two regions," said Praveen Kumar, who works with an IT major.

Although there was a HUDA proposal to widen the service road along the expressway, to date nothing has happened. Perhaps the authority is waiting for matters to come to a head, like it did in the case of laying the master sewer line.

TRANSPORT

Inter and intra-city transport in Gurgaon are virtually non-existent. According to estimates, in the absence of a proper public transport system, private vehicles command as much as 56% share of the trips generated from the city. As per the Gurgaon Master Plan, the Gurgaon-Manesar Urban Complex would witness an estimated 39 lakh trips daily out of which 15.6 lakh were expected to be within the city by 2021.

As of now, the city primarily depends on polluting auto-rickshaws, a few city buses managed by private players and 19 low floor diesel buses for commuting. As far as inter-city transport is concerned, the number of buses operated by Haryana Roadways and Delhi Transport Corporation (DTC) to connect Gurgaon and Delhi remain woefully inadequate. Little wonder then that call centres cabs are the most preferred form of transport for daily commuters.

The failure of HUDA to lay sewer lines and connect them to houses has exposed the ill planning that has left swank skyscrapers sitting literally on filth. Dirty water surrounds several posh residential areas and perhaps Gurgaon's worst eyesore is the overflowing sewer on both sides of NH-8.

"HUDA collected the external development charges (EDC) from all developers to put in place all these facilities. But only after people took the matter to court after not a paise was spent did it come out with the plan to invest Rs 770 crore to augment infrastructure," said a senior official of a major private developer.

"It will take nearly three months to complete the work. Recently, we got the stay order on two little stretches vacated on this line," said HUDA administrator G Anupama.

Water

According to available data, the present water demand of Gurgaon and Manesar Urban Complex is approximately 80-100 MGD and the total supply is barely 60 MGD, which means illegal water tapping in Gurgaon occurs to the tune of 20-40 MGD. The water demand is expected to touch approximately 250 MGD by 2021. Moreover, recent Central Ground Water Board (CGWB) reports have revealed how the water level has depleted at alarming rate over the last few years.

How the city's dependence on the Gurgaon water supply channel could jeopardize the situation became obvious in April when farmers of Jhajjar breached the canal and the city had to suffer a week-long dry spell. However, HUDA officials maintain that they would get enough water by 2021 as the city will get the required amount from the NCR water channel, which is under construction.

Waste management

If parts of Gurgaon resemble unorganised dumping grounds, it is because they are so. The city continues to struggle to get a designated site for dumping its solid waste, which is to the tune of 375 tonnes per day.

In the absence of such a site, government agencies have been dumping garbage illegally on the green belt. Though HUDA had got approval for developing a site spread over 30 acres near Bandhwadi, work on it is not expected to begin anytime soon. "There is no immediate solution since it will take time to complete the project," said a HUDA official. This means for at least next one and half years, truckloads of garbage would continue to be dumped at some illegal site.

Power

Although the monsoon and increased power supply has somewhat alleviated the power crisis in the city, Gurgaon is still way short of meeting its electricity requirement. At present the city needs nearly 1.2 crore units per day, whereas daily availability is nearly one crore units.

This means Gurgaon faces a shortfall of about 15%. But the government is singing a different tune. Said Haryana power secretary Ashok Lavasa: "Our power plants are already on track. We have already increased our supply in the state and we are sure of breaking even in next couple of years."

Incidentally, the directorate of town and country planning (DTCP) of Haryana government levies external development charges (EDC) on the date of issuing licences to developers to put in place adequate infrastructure to meet the future demand of the new townships and developments.

But HUDA's poor implementation has only exposed how the plans have remained on paper only. "It's only the pathetic condition of roads and waterlogging that has caught the attention of people. But we must keep in mind that the physical infrastructure development has been neglected and we are still not recognising the greater crisis in the making," said a senior official from the district administration.

Source:http://timesofindia.indiatimes.com/Delhi/Gurgaon_From_boom_town_to_doom_town/articleshow/3418983.cms

India Inc. Goes to School

2008-08-14T00:11:00.000-07:00

It's simpler than elementary math, really. The next wave of great entrepreneurial activity in India is going to be centered around education. India's 75,000 private schools account for just 7 per cent of total institutions and enrol 90 million students. Of course, there's a slightly larger universe of children, about 129 million, who go to public schools. Still, that leaves 142 million students who are not in the system yet, says a CLSA report on education.

Game for more numbercrunching? The country has nearly 370 universities and 18,000 colleges, 500,000 teachers and the third- largest system in terms of enrolment with more than 10 million students. Whereas, Japan with its nearly 128 million people, has 684 universities, USA with 300 million people has 2,364 universities, and Germany with 82 million people has 330 universities.

Clearly, there is a big gap between India and the US/Japan. The situation is similar in terms of enrolment, says N. M. Kondap, Vice Chancellor, SVKM's Narsee Monjee Institute of Management Studies (NMIMS).

And the appetite for a better tomorrow is only growing as aspiring families seek to give their children the greatest opportunity to succeed and prosper in the new economy. Given this, business opportunities in education are opening up virtually at every level: Kindergarten up to Standard XII (called K-12, for short), coaching classes, business schools, etc. Analysts estimate this industry to be worth $40 billion. Education is certainly one of the biggest areas of consumer spending, says Gopal Jain, Partner, Gaja Capital. Yet, there are hiccups to this in the form of the regulatory environment, but we'll come to that later.

Training sights

India's education and training sector market is valued at $40 billion with a potential 16 per cent fiveyear CAGR as per the CLSA report. Bulk of the core education space is around K-12 and there now appears to be a glut in engineering colleges and B-Schools, says Ashish Rajpal, co-founder, iDiscoveri, a company that, among other things, seeks to provide learning aids and training to educators and also business leaders.

And, it is here that many newage entrepreneurs have trained their sights on, especially after the success of Educomp Solutions, which has become a Rs 4,803-crore company on the stock market since it listed in 2006 (at the height of the market boom in January 2008, its market cap was about Rs 9,750 crore). We have opted for an 'Intel inside' approach and wish to participate in the school curricula by providing intelligent content, and teacher training, says Rajpal.

And the core of primary education, valued at $20 billion, is being addressed by private players as there's clearly a huge demand for better schools from the country's middle class. In addition, supplementary teaching is another area of growing opportunity: We estimate at least 20 million children take some form of tuition outside the classroom, says Bhavtosh Vajpayee in the CLSA report on education. (Incidentally, Vajpayee was on BT's Best Equity Analysts listing in the issue dated July 27, 2008).

And even as this is ramping up, the market is further being prised open at the pre-school level (i.e., for children aged between two years and four years) where the market size is estimated at around $900 million. This sector is dominated by regional players and there are very few players with larger vision, though that is beginning to change, says Shantanu Prakash, founder & MD, Educomp, a Gurgaon-based education services company.

As the demand for education grows, so does the demand for the paraphernalia around education. For instance, textbooks (worth $2 billion annually), stationery ($1.3 billion) and learning aids such as CD-ROMs ($120 million) are all recording growth.

But more than mere CD-ROMs, it's the entry of the wired classroom that's going to transform education in the years ahead. Analysts estimate that this market is worth $30 million at present and with the potential to be a $800-million market.

Aside from tutoring at schoollevel, there's an entire market for preparatory classes for students wanting admission in IITs, MBAs, medical colleges and civil services. Millions of Indian parents, eager to see their children get a seat in one of these professional courses, are coughing up sizeable sums of money into prep classes. At last count, prep institutes were pulling in $1.7 billion a year. Alongside, the opening up of aviation, financial services, telecom and modern retail has seen the market for vocational training soar, which is estimated to be worth $1.4 billion a year. Just like teacher training and finishing schools for IT, training for BPOs is another area of demand. Yet, these are just beginning to take off, with an industry size of $40 million.Issues of decree

Keep On Reading:http://www.redorbit.com/news/education/1518180/india_inc_goes_to_school/

India: Housing boom declines, hinting at slower economy

2008-08-08T01:31:00.000-07:00

Glistening marble floors. Landscaped lawns. A golf course. This $1.5 million-a-pop housing development is one of the plushest yet in Gurgaon, a satellite city on New Delhi's edge that has become an icon of booming India.

But 18 months after they went on sale, half the houses in the first phase of construction stand empty and unsold, as India's once-booming housing market slows down.

A recent report by HSBC Bank predicted a "sharp slowdown" in residential demand in most Indian cities and a fall in home prices of between 25 and 30 percent.

Many fear the housing sector's woes bode ill for India's slowing economy. Rising inflation and shrinking credit look poised to slow steady growth here, and several international banks have revised their 2008 growth forecasts down to around 7 or 8 percent.

Signs of slowdown

While many countries would envy that kind of growth rate, the slowdown represents a disappointing turn for India, where only months ago there was talk of hitting double-digit growth.

At the start of the year, India was surging ahead. Gross domestic product growth hovered around 9 percent, as it had for the past three years. A surge of foreign investment boosted a buoyant stock market.

But, driven largely by soaring oil prices, India's inflation has rocketed to a 13-year high of nearly 12 percent. Last week, in an attempt to curb inflation, India's central bank raised interest rates for the third time in two months to a seven year high of 9 percent. Most analysts here believe economic growth will be sacrificed to bring down inflation.

India is also dealing with a potentially big increase in its fiscal deficit, which many expect will be higher than the current official target of 2.5 percent of GDP.

But the property sector has been the biggest loser of India's slowing economy. While India's main stock market index has had a rough year – due in part to the withdrawal of large amounts of foreign investors' cash – real estate firms have seen drops of 40 to 70 percent on year-highs.

The combination of high inflation – pushing up the cost of building materials like steel and cement – and resulting high interest rates has resulted in a "double whammy" for property developers, says Jai Mavani, executive director the Indian branch of KPMG, a financial services company. Expensive credit is deterring buyers, while property developers are finding it harder to raise funds.

Freddy Rebeiro, an architect, is among many first-time buyers who have decided to sit back and wait out the market. "It's not just high property prices. We will be dependent on loans and right now they are prohibitively expensive," says Mr. Rebeiro, adding that he has watched friends "take the plunge and regret it."

Until recently, real estate companies were the stars of India's boom as firms demanded high-quality office space, and a new breed of upwardly mobile middle-class buyers eyed plush new homes. The sector had also been boosted by a government move in 2005 to eased rules on foreign investment in the construction industry.

When India's biggest property developer, DLF Ltd, floated on India's stock exchange last summer, it became the biggest initial public offering in Indian history. The firm, little known a decade ago, had almost single-handedly transformed Gurgaon from a dusty, agricultural plain into a gleaming satellite city where international companies set up their Indian headquarters.

But in July, after seeing its share price plummet, DLF announced it would buy back a chunk of its own equity – a move construed by the market as a sign of panic on the part of controlling shareholders. DLF has, like India's second biggest real estate firm, Unitech Ltd, shelved plans to list its real estate investment trust on the Singapore Stock Exchange.

More realistic growth

When the going was good, developers piled into the high-end market, where profits were biggest. But the greatest long-term growth, say analysts, will occur in more middle class and affordable housing.

"I think everyone will now focus on property bought by actual users, rather than speculators," says Rajeev Talwar, executive director of DLF.

Gary Garrabrant, chief executive of Equity international, a US property investor who has successfully invested in mass housing projects in Brazil and Mexico, says he is looking for investment opportunities in India's affordable and middle-income housing segments. But he cautions that India needs to improve its infrastructure, especially its roads, "before record-breaking speed can be achieved on a sustainable basis."

In the shorter term, of course, the property market remains vulnerable to mounting interest rates. India's government, which won a perilously close confidence vote in parliament last month is anxious to bring down inflation before general elections early next year, and most expect interest rates to rise again.

Of crucial importance, say analysts, is the global price of oil. India imports 70 percent of its oil and heavily subsidizes domestic fuel prices. This week, subdued oil prices have lifted investor confidence ad the stock market.

But even when India's economy picks up, as most expect it to do, and property prices and interest rates have reached more sustainable levels, buyers will be slow to catch on, reckons Ashutosh Narkar, an analyst at HSBC. "It's not like buying a car. House buyers tend to wait for much longer before they think about spending so much money. Any improvement is going to take time."

Source:http://www.csmonitor.com/2008/0808/p07s01-wosc.html

Don't Buy, Stay Renting - Here's Why!

2008-07-25T05:27:00.000-07:00

Everyone seems to be saying since the housing market is down, it's a good time to buy. They couldn't be more wrong. Maybe, just maybe, it's an okay time to buy a home if you have perfect credit, a huge lump of cash (I'm talking 10k+) to put down, and are willing to jump through all kinds of hurdles to get a loan...but that's just ridiculous.

Renting is just plain better. It's better because it makes you richer.

Here's how:

Don't invest in a house...invest in stocks and stay renting. Businesses are much better investments than homes or cars. The average return of investment on a business (stocks) is 7 %, while shockingly the average return of investment on a house is ZERO! And don't even get me started on cars...they depreciate more than you could imagine.

It's a common misconception that you are throwing money down the drain if you are renting. Renting can be an extreme advantage to you if you play your cards right. Imagine you have a mortgage payment on a house of $1200/ month. Tack on another $300 for taxes. Now compare that $1500/month to an average cost of renting an apartment which is around $850. You have a difference of $650 dollars.

Now...you can pay $1500/month on something that has on average...no annual return in value. Sure, you may be able to sell the home one day and break even, but what's the point.

On the other hand...rent an apartment for $850 and invest the remaining $650 in stocks in a business and you will see annual returns and on average will make money on the deal. Seems obvious to me.

Renting and investing in stocks is just a better financial decision than owning a home.

Plus, when you take out a loan to buy a house...you become locked in to that loan for the entire term. Whether it is 15, 20, or 30 years, you OWE someone money and must pay that every month. When you rent you don't OWE anything. You pay your rent monthly and are free to do whatever you choose after the term of your lease.

In summation, if I can pass down any advice to my fellow Apartmentites it would be this:

Don't listen to all the fidder fodder about buying a home. Stay renting. It's cheaper, easier, more free, and a whole lot of fun. Then invest in stocks and make yourself a little spending money.

For more tips and info on apartment living visit, ApartmentHomeLiving.com

Jeff's just a regular guy with a funny goatee that really enjoys people and life. On top of that he is a bit of an expert on apartments, living in them, and getting the most out of the apartment living lifestyle.

As a Managing Partner of Apartment Home Living, Jeff wants to help you find the right apartment by getting to know you. Not only where you want to live & what you want to pay, but what you like. This way, we can help you find an apartment that fits your personality, not just your budget.

Source:http://www.ezinearticles.com/?Dont-Buy,-Stay-Renting---Heres-Why!&id=1157441

Think, Invest and Earn From Property Investment in India

2008-07-17T21:01:00.000-07:00

Indian real estate is one of the safest destinations for the potential investors. Properties in India are a preferred choice for executives, NRIs, foreigners and other travelers who frequent to India often. The property market in India is now one of the hottest businesses in the country and it is promising the investors to provide them with high returns and huge profits for their investments, whetting the cravings of overseas as well as domestic investors. Keeping in view this recent trend, it is easy to say that Indian is proceeding in the correct direction and more and more investors will soon come towards the country for investment in its real estate.

India offers the perfect environment by providing maximum rewards to its investors. One of the main reasons is that the country is the largest democracy in the world and its legal system is the strongest possible. Now-a-days, no business other than real estate is more revenue generating and lucrative in the country. Investment in real estate properties includes resorts, hotels, schools, hospitals and residential as well as commercial properties. Investment in Indian real estate comprises of more returns and this is why more and more people are negotiating investment contracts at a rapid rate. In addition to that, banks are providing loans to the builders, players of private equity are making big investments and funds for real estate are being floated by the financial institutions. Easy availability of loans and higher rates of earnings are some of the main reasons behind sudden jumps in the Indian real estate sector. Some of the reasons why you should think, invest and earn from property investment in India are:

* The economy of India is continuously growing, leading to improvement in the purchasing power of people and creation of more real estate demands.
* As India produces millions of graduates every year, the factor creates demands for additional industrial and official space.
* Foreign as well as domestic companies are initiating their operation in the country leading to increased demand of corporate space.
* Property investment in India is paying large dividends to the foreign investors.
* Huge industrial development of India in the fields of pharmaceuticals, apparels, auto components, jewelry and chemicals has also led to attracting more and more foreign investors towards investing in India.

With increased demand of properties, their rates are more likely to increase in near future, thus leading to the profit of real estate investors across the globe.

Sourec:http://www.ezinearticles.com/?Think,-Invest-and-Earn-From-Property-Investment-in-India&id=1221088

Parsvnath buys 38% stake in Nanocity Haryana

2008-07-16T21:40:00.000-07:00

Parsvanath Developers announced that it acquired 38% stake in Nanocity Haryana Infrstructure. The company plans to invest Rs 4 billion as equity and debt for the project valued at Rs 500 billion. In the first phase company will develop 5,000 acres and 6,000 acres in next phase.

Nanocity Haryana Infrastructure is promoted by Sabeer Bhatia and Haryana State Industrial and Infrastructure Development Corporation. The companies development will be called as Parsvnath (Q, N,C,F)* Nanocity.

Parsvnath Developers is one of the leading real estate development companies in India with operations in 37 cities and 13 states of India.

Shares of the company declined Rs 6.35, or 5.87%, to trade at Rs 101.85. The total volume of shares traded was 599,449 at the BSE. (1.49 p.m., Wednesday)

Sourec:http://www.myiris.com/newsCentre/newsPopup.php?fileR=20080716140125196&dir=2008/07/16&secID=livenews